The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1903-11-10


United States Shipbuilding case were
the bitter attack made by Lewis Nixon
upon William D. Guthrie, counsel for
the defendants, and representative of
the interests of Charles NJ. SchWab, for
his methods of cross examination; lead
ing questions by Mr.. Untormyer, coun-
sci for the compliments, as 10 the alb
sence of competition between the Beth
lehem Steel Company and the Carnegie
plant of the United States Steel Cor
pOratiOn in government contracts for
armor plate, and that entire change of
front of Mr.. Guthrie, who, heretofore
had aimed to bring out the fact that
the value of the constituent plants of
the United States ~Shipbuilding Com
pany was not over estimated.
Today Mr.. Guthrie adopted a line of
questioning designed to show that the
estimates ofhvalue were made by the
promoter the vendors and others inter
ested or to the ~in-eXpert appraisers and
were practically without weight in de-
termining the eXact value Of the plants
and the assets of the consolidation.
Mr.. Nixon was on the stand all day.
His cross examination was finished and
the redirect examination partly COM
pleted.
At the opening of the afternoon ses-
sion he presented a personal protest, IN
which he declared that Mr.. Guthrie in
consultation with Max Pam, had adopt
ed a line of questioning designed to
l.a Ito, -; 49, ~
position regarding the sale of his plant
TO the ~shipbuilding consolidation. The
protest was angry Il bitter in tone
and intimated that Mr.. Guthrie had
been unfair in asking him to answer
from momory questions about the fl
nances OF his company without oppor-
tunity to look up the details, while
Guthrie had the benefit of a full inves-
LEGATION of the figures.
BY agreement of the counsel the pro-
test was stricken from the record but
Mr.. Nixon thereafter during the hear
ing insisted that if he We're to answer
questions. he should be allowed to make
the necessary explanations.
Besides asking Nixon about the or
genization of the shipbuiIding company,
the valuation put upon the constituent
companies and the methods by which
they were reached, Guthrie took up
the alleged Withholding of dividends by
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
attitude in demanding by letter to Pres
ident McIlVain, 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 direc-
tors in acQuiescing in resolutions de-
claring it was ineXpedient to declare
such a dividentd 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 divert
ed from dividends to needless improve
ments.
Mr.. Guthrie took up figures from the
financial reports Of the Bethlehem COM
pany to show its inability to pay divl-
dendS.
Mr.. Untermyer from the same re-
ports. attempted to show expenditures
for betterments and new material were
excessive and that the company might
have declared a dividend mad it been
so desired. He was questioning Nixon
about the trip of examination made by
the Bethlehem ard Carnegie officials to
determine means of importing the
Bethlehem plant when the hearing clos
ed for the day.
The re-district examination of Mr..
Nixon will be resumed tomorrow after
noon n Charles NJ. SchWab may be
nlaced on the stand later in The daY-