The Savannah morning news., 1903-10-09
MORGAN & co. GOT A SHARE
OF SCHWAB'S S30,0O0,O00.
Bankers Acted I'm sale of the BethIe-
hem Steel Plant and Received $5,-
100000.

Bankers Acted In Sale of the Bethie-
hem Steel Plant and Received S5,-
OSO.OO0.
Charles NJ. Schwab, former president
of the steel trust, against whom
charges are made in connection with
the United States Shipbuilding Com
pany, would make no reply yesterday
to the accusations that he got $780,
100000 worth of securities for the $780,
100000 Bethlehem steel plant by over
stating it's earnings and surplus, and
that he wrecked the Shipbuilding Com
pany so that he and his associates could
get control of its assets.
At the office of Mr.. Schwab. on the
fourth floor of No. Il Broadway, his
secretary. Oliver Wren, and his as
sistant secretary, both said that Mr..
SchWab was at Loretto, Pa. But Mr.
Schwab was at the meeting of United
states Steel Corporation directors
After this meeting, when Mr.. Schwabs
assistant secretary was asked how Mr.
SchWab could be at Loretto, Pa, and
at No. II Broadway at the same time.
he said Mr.. Schwab hadn't been near
his office and nobody there knew that
he was in town.
From a friend of Mr.. Schwab it was
learned that the whole deal for the
sale of the Bethlehem company. which
is now being so bitterly attacked in
the United States courts, was arranged
in the offices of J, p. Morgan & Co.
Mr.. Morgan was abroad at the time,
but his partner, George w. Perkins,
conducted the matter.
OF the 100000 600 preferred stock and
the $10,000,000 of the common stock
given to Mr. Schwab by the Shipbuild-
ing Company as part payment for the
Bethlehem plant 81, 100000 of each kind,
or 600 in all, went to j. p. Nor
gan & Co.
The formal agreement for the sale
of the Bethlehem steel plant was made
in the name of j. P. Morgan & Co.
and not in the name of Mr. Schwab.
Why all of the blame for the transact
ton has been directed against Mr..
SChwab is a mystery to those familiar
with the real facts in the case.
1t is said that the firm of j. P. Nor
gan & Co. figured in the Shipbuilding
Company's finances in other ways.
The charge that the Shipbuilding
Company paid fabulous sum for the
plant of the Bethlehem Company is
denied by friends of Mr. Schwab
While he got $30,000,000 in securities,
$10,000,000 in bonds, $100O0000 in pre-
ferred and $10,000,0 900 in common stock,
serted, was only a fraction of their
face value.
To-day the total value of these Sc
curities is very small. The bonds are
selling at about IA, which would make
the block of 100000 900 worth 81, 100000.
Sales of the stock are very rare. The
last made was 81 a share for the pre-
ferred and 81 a share for the common.
On this basis the $10,0 900 of preferred
stock would have an actual value of
100000 and the 100000 900 of common
would have a like value. The total
value of the $50. 900 900 of securities is,
therefore, 81 500, 600
Lewis Nixon, former president of the
Shipbuilding Company, refused. yester-
day to say anything in reply to the
charges against Mr.. Schwab. He said
Mr.. Schwab was the proper one to
make any statement.
All of those interested in the ship
building litigation were in Philadel-
phia yesterday, where argument was
made in the United States Circuit Court
of Appeals to have the receivership APP
pointed by the United States courts
in New Jersey set aside.
To-day there will be a hearing be-
fore a special United States examiner
| in the law office of Samuel Untermeyer
| in the receivership proceedings
| Among those summoned as witnesses
are Charles M. Schwab, Lewis Nixon,
| Max Pam, E. lie Roy Dresser and
others who took a leading part in the
! organization and financing of the COM
pdny.