New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-18

the three hundred thousand shares OF Bethlehem
stock7 Al did not. -. =,
or 5S sS Ss o " aid not know the exact
amount that had been paid in.
DID NOT KNOW BETHLEHEM DEBTS
o.-Did you not know that on the stock you paid
500 a share for in 1901 only 81 a share had been
paid in 1889? Al do not remember what had
o4pon't YOU remember that YOU talked with Mr.
sehwsb about the debts Of The on cone the
pany? Ayes talked WIN M, Scnwan on a s nS
if liabilities S Mr sehWab Showed them to me-
CURED o PosTO h E Of 'a5 fGes and PAID
over s7Oooeoo in cash without any Investigation as
ton except the statements made TO us by Mr.
SELF should have have relied implicitly upon Mr.
Schwab. whom I consider an expert In that line
who had a deep interest in the success of the
United States Steel Corporation. and we took The
result of his Investigations as competent ana
Q@Then this sale was an out and out one? A
,o.-was there any understanding by which any any
schWab? A|None. except as provided by the let,
ter. Mr.. schwab came TO me and said he would
ad 0f f 9 hs If It st Tesod he thought
s e ~dS With R and that S Was the
al through the negotiations.
ali hs pr0as So he wO to
get what our firm regarded as fair, That
OF the property had been lost by fire. would
Al don't know what ARRANGEMENTS the Bethle-
Odd yoG not not know that there was 81 600
first mortgage the Bethlehem plant and $3.50
purchase? Al don't recolect.
WHEN SYNDICATE PAID FOR STOCK.
Mr.. Untermye- wanted to know when the
Bethlehem stock was actually bought and PAID
for by the Steel syndicate, and he asked the
witness to ascertain from the books OF j. r
Morgan & Co. the date when practically All
the stock had been acquired" Mr.. Guthrie, VINO
had been objecting to many Of the questions
and answers, said the witness should not give
the information until the court had ruleu on
the question OF admitting the testimony M:
Stetson. who was appealed to, SAID ne thousnI
in common sense the witness need not answer
but the witness might do as he pleased MT.
Steele said he thought he would not answer, II
the answer would be hurtful to the de1ence-
There was a wrangle between counsel, and Mr..
Steele said he thought he would be 1ustlned. IN
view OF the protest of the defence In Wlth-
holding the information.
During the recess however, Mr.. Steele got
the information from the books, and later ne
said the majority of the Bethlehem stock was
acquired bv August q. 1901 and nearly all
of it by September 80 the same year
MI Steele said that the Steel syndicate did
not attempt to control the Bethlehem plant after
the purchase of the stock, but caused some
changes IN the officers nd directors OF the
company. Mr.. Linderman was succeeded as
During the year the Steel syndicate owned the
stock. Mr.. steele said. Mr.. Schwab had no per-
sonal ownership of the companys stock
SALE TO sHIPBUILDING COMPANY.
Regarding the sale of the Bethlehem stock to
the shipbuilding company, Mr.. Steele said he
had arranged that at two interviews with Mr.
scbwab on June u and 13, 1902. Mr.. Schwab
made the proposition. and Mr.. Steele said he
accented It, and had the contract drawn by Mr..
Henderson. Of Mr.. Guthrie's law firm. Mr.
steele said he had seen a prospectus Of the
shin building company, but most Of his informa-
tiop about the company was given to him by
M Schwab. He also knew Mr.. Nixon, Mr..
scott and some OF the other men who were to
mn The company, and he thought they would
make IT a success. He knew Mr.. Schwab was
selling the Bethlehem stock for $loOOOOOO In
bonds and 500 100000 of stock of the shipbuild-
irg company Mr.. Steele said he was s. not IN
foSSme5 how Mr.. Schwab raised the S720O0OO
a. cash 70 pay the steel syndicate for the Beth
lehem stock
Odd YOU tell Mr.. Schwab you would Cable to
~ Morgan before the deal went through! Al
did not. -, IL; ,.+a- what message was
sent 10 Mr. MorganH A-No oL,o -. ut, On
o'[At whose request was the cao'e OF July 80