Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-12-18
SHlP5UILDING HEARING.
Interesting Developments at the Hear
ing on Thursday.

New York. Dec. 1.-THE hearing on
the application to make permanent the
receivership of the United States Ship
building Co, was resumed here, today
Charles Steele, member of the firm
| of j. p. Morgan K CO., being on The
witness stand for a short examination
as to the connection of that firm with
| the promotion OF the Shipbuilding Co
| and the sale Of it to the Bethlehem
steel plant. At the hearing last week,
George w. Perkins of the same firm.
| testified that MIR. Steele had had charge
of this matter.
The hearing today. was transferred
| from the offices of Guggenheimer, Un
termyer & Marshall, where it had pre-
viously been held. to the New York
Board of Trade and Transportation
rooms, on account of the frequent YER
bal passages between Counsel Guthrie
ana Untermyer. Mr.. Untermyer object
ing to Mr.. Guthrie's ordinations that
he was subject to insult under Mr.. I'm
termyers roof.
Max Pam and Charles NJ. >Schwab
were interested spectators. Counsel
Untermyer Immediately began ques
tioning Mr.. Steel about the purchase
and sale OF the Bethlehem plant by j.
p. Morgan e Co, as syndicate mana
gers for the United States Steel Cor
poration; and the agreements between
c. NJ. Schwab and Robert 7. Under
man of the Bethlehem plant and }. p.
Morgan & Co., for the purchase of the
Bethlehem plant in 1901. We're pi o1uced
and admitted in evidence.
The purchase of the Bethlehem plant
by J. p. Morgan & Co., as syndicate
managers was arranged by Mr.. Schwab
ana Morgan 6 Co.. in June 1901, Mr..
Schwab assigning to the steel syndi-
cate q contract which he had for the
purchase of control of the Bethlehem
stock Mr. Steele said the purchase
was made in order that the Steel Cor
porat:on might be able to control the
disposal of the Bethlehem plant, its
permanent ownership being considered
disadvantageous to the Steel Corpora
ticn and the desire being to resell it
to owners favorable to the steel com
pany, though no special purchaser was
| in view at this time. Mr.. Steele,
though a director of the Steel Corpora
ton, professed hi:rself ignorant of the
competitive or non competitive status
| Oh the bpl1ltHcIll anu tdltltSIe dilHCI
plate plants, the latter of which was
owned by the steel syndicate.
The circumstances and details of the
purchase of the Bethlehem stock by
Morgan & CO., We're gone into at great
| length MIR. Steele testifying that he had
accepted Mr.. Schwab's opinion of the
value of the plant and had taken the
contract for the purchase of the stock
| at the price Schwab had agreed TO pay
| the original owners, the understanding
being that Schwab should share any
profits at the resale of the plant. Dur
ing this inquiry one of the interchanges
| of personalities. so frequent at the
hearings, between Messrs Guthrie and
Untermyer took place.
The shipbuilding consolidation was
| not a prospective purchaser of the
Bethlehem plant when Morgan & Co,
! bought the Bethlehem stock, Mr. Steele
| testified. and was first so considered in
June 1902 when Mr.. Schwab preached
| to him the project of n sale of Bethle-
hem to Messrs. Nixon and Dresser fo,'
| the shipyards concern. On June IL,
Mr.. Schwab told him that the Ship
| building Company desired the plant