Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-11-06
Unfairness Charged Against
Counsel For Defendants In
Shipbuilding Case
LEWIS NIXON ON THE STAND
Protest Against Attorney William D.
Guthrie's Methods of cross-Exami
nation Stricken From the Record
Entire Change of Tactics Made in
Argument for the Defendant.

New York, Nov. b.-At THURSDAY :
session of the hearing in the United
States shipbuilding case, an attack was
made by Lewis Nixon on William ID.
Guthrie, counsel for the defendants
and representative of the interests of
Charles NJ. Schwab. for his methods ,f
cross examination. Leading questions
were put by Mr. Untermyer, counsel
for the complanants, as to the absence
of competition between the Bethlehem
Steel Company and the Carnegie plant
of the United States Steel Corporation
in government contracts for armor
plate. An entire change OF front was
made by 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 overestimated.
Yesterday Mr. Guthrie adopted line
of questioning designed to show the
estimates of value were made by the
promoter, the vendors or other inter-
ested or inexpert appraisers and were
almost without weight in determining
the exact value of the plants.
Mr. Nixon was on the stand all day.
His cross examination was finished
and the redirect examination partly
completed.
At the opening of the afternoon ses-
sion ne presented personal protest In
which he declared that Mr.. Guthrie In
consultation with Max Pam had
adopted a line of questioning designed
to place him in false and discredita-
BILE position regarding the sale of his
plant to the shipbuilding consolidation.
The protest was angry and bitter IN
tone and intimated that Mr.. Guthrie
had been unfair In asking him 10 an
swer from memory questions about the
finances of his company without an
opportunity to look up the details,
while Guthrie had had the benefit of 4
full investigation OF the figures
BY agreement of counsel the protest
was stricken from the record. but Mr..
Nixon, during the hearing, insisted
that II he were to answer questions he
should be allowed to make the neces-
sary explanations.
Besides asking Nixon about the or
ganization of the shipbullding COM
pany, the valuations put on the con-
stituent companies and the methods by
which they We're absorbed, Guthrie
took up the alleged withholding of divi-
bends by the Bethlehem company. an
action which, according to the charges
of Receiver Smith, contemplated thu
wrecking of the company.
Guthrie placed In contrast NiSon's
attitude in demanding, by letter to
President McIlvain of the Bethlehem
that the Bethlehem directors
declare a dividend to save the ship
building company. and later. at two
meetings of the Bethlehem
directors, in acquiescing in resolutions
declaring 1t inexpedient to declare such
a dividend. He also brought out that
Nixon had voted for the resolution for
the expenditure for betterments. This
was the means, go Receiver Smith
charges, by which earnings were diver
ted from dividends for needless inn
Guthrie took up figures from the
financial reports of the Bethlehem COM
pany to show its inability to pay divi-
dends. Mr.. Untermyer from the same
attempted to show that expen-
ditures for betterments and new ma
terial were excessive and that the COM
pany might we'll have declared a divi-
dend had 1t been so desired. He was
questioning Nixon about the trip of
examination made to Bethlehem and
Carnegie plants to determine means of
the Bethlehem plant when
the hearing closed for the day.