The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-11-06
NIXON DID NOT LIKE
METHODS GUTHRIE HAD OF ASK
ING QUESTIONS.
IN THE SHIPBUlLDING CASE
NIXON WAS ON THE STAND THE
ENTIRE DAY.

Protest of Nixon Was Stricken from
the RecOrd-He Said He Wanted
Chance to Prepare Himself Be
fore Answering Such Questions as
Guthrie Asked-SchMnb Is En-
pected to Take the Stand To-day
After Nixon Goes Down.
New York, Nov. 5.-The features of
United States Shipbuilding case were
the bitter attack made by Lewis Nixon
| upon William d. Guthrie, counsel for
| the defendants land representative of
the interests of Charles NJ. Schwab,
for his methods of cross-examination,
leading questions by Mr.. Untermyer,
counsel for the compliments as to the
absence of competition between the
Bethlehem Steel Company and the Car
negie plant of the United States Steel
| Corporation in government contracts
J for armor plate and the entire change
of front of Mr.. Guthrie who, hereto
| fore, had aimed to bring out the fact
that the value of the constituent plants
| of the United States Shipbuilding
| Company was not over-estimated.
To-day Mr.. Guthrie adopted line
of questioning designed to show that
! the estimates of value were made by
! the promoter, the vendors and others
| interested or by the inexpert apprais-
| ers, and were practically without
weight in determining the exact value
of the plants and the assets of the con-
| SOlidatiOn
Mr.. Nixon was on the stand all day.
| His INSTRUMENTATION was finished
| and the redirect examination partly
| completed. At the opening of the aft
| ernoon session he presented a personal
! protest, in which he declared that Mr..
| Gutherie, in consultation with Max
| Pam, had adopted a line of questioning
| designed to place him in a false and
| discreditable position regarding the
| sale of his plant to the shipbuildng
| consolidation. The protest was angry
| and bitter in tone and intimated that
Mr.. Guthrie had been unfair in asking
him to answer from memory questions
about the finances of his company
without opportunity to look up the de-
| tails, while Guthrie had had the bene-
fit of a full investigation of the fig
ures.
ExpunGed from Record.
| by agreement OIL the COuTS6l the pTO-
| test was stricken from the record, but
Mr.. Nixon thereafter during the hear
| ing insisted that if he were to answer
questions, he should be allowed to make
the necessary explanations.
Besides asking Nixon about the or
| ganiZation of the shipbuilding COM
pany, the valuation put upon the con-
| stituent companies and the methods by
| which they were reached, Guthrie took
| up the alleged Withholding of dividends
| of the Bethlehem company, an action
! which, according to the charges of Re-
ceiver Smith, contemplated the wreck
ing of the company.
Guthrie placed in contrast Nixon's at
! titude in demanding by letter to Presi-
dent MeIlvain of the Bethlehem COM
| pany that the Bethlehem directors de-
| clare a dividend to save the shipbuild-
| ing company and later at two subse-
| quent meetings of the Bethlehem di-
rectors in acquiescing in resolutions de-
claring it was expedient to declare such
| a dividend. He also brought out that
| Nixon had voted for the resolution for
the expenditures for betterments. This
was the means, so Receiver Smith
| charges, by which earnings were d.
verted from dividends to needless i'm
| provements.
Not Able to Pay Dividends.
Mr.. Guthrie took figures from the
| financial report of the Bethlehem COM
pany to show it's inability to pay divi-
| dends.
Mr.. Untermyer, from the same re-
ports, attempted to show expenditures
for betterments and new material were
| excessive, and that the company might
we'll have declared a dividend, had it
been so desired. He was questioning
Nixon about the trip of examination
| made by the Bethlehem and Carnegie
| officials, to determine means of i'm
proving the Bethlehem plant when the
hearing closed for the day.
The redirect examination of Mr..
Nixon will be resumed tomorrow aft
ernoon, and Charles M. Schwab may
be placed on the stand later in the
| daV