New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-11-06
GUTHRIE Anglers NIXON
STEEL TRUSTS "RII1fL."
Bethlehem Plant SO OnIy IN Name,
UHHess Sa1fs.

was, II wearisOme for the most part. relieved
oce -sicnally by Tits between the lawyers or BY
angry protests from Mr. Nixon against some %
the questions which he declared were too per-
sonaL The most OF the session WIS taken UP
with Mr.. Nixons cross examination BIZ W ID.
Guthrie. counsel for the shipbuilGiuE company
and for Charles VI. Schwab. who sought to show
that the only company among those taken over
bv the shipbuilding company that earned any
substantial profits was the Bethlehem steel
Company.
Before he closed the cross examination in the
afternoon Mr.. Guthrie made Mr. Nixon tell
about an inspection Of the Bethlehem plant IN
which officials Of the shipbuilding company
were accompanied by Mr.. Scbwab and other
officials of the United States Steel Corporation
His apparent object was 70 show that the IN
spection had resulted in advice 20 have the
Bethlehem earnings used in making Improve
nlents in the Bethlehem plant for making arr,or
plate and had justified the withholding OF Beth
lehem profits for paying interest on the ship
building bonds.
Samuel Unteru1yer counsel for the bord-
holders bringing the receivership suit. seemed to
think ;hat Mr.. Guthrie had walked bIinGlv into
a mine, and when he resumed the direct ex-
animation he resorted 10 questions which
brought out the fact that the Bethlehem com
pany was the only ostensi51e rival OF the Steel
Corporation IN the manufacture Of arnor plate
for the government. He asked why the officials
Of the Steel Corporation were interested IN in
creasng the facilities OF that corporations only
rival IN the manufacture Of arnnor plate ard
when Mr. Nixon said he could only surrnfse the
reason Mr.. Untermyer cut OF the inquiry for the
day, leaving impression that the Steel Cor
poration controlled the Bethlehem property and
therefore had no real competitor in its bids for
making armOr plate for the government
nir. Schwab and Mr.. Guthrie declined to talk
on the subject with newspaper men after the
session was over. but it $ said to be the con-
tention Of counsel for the bondhoIders that Mr..
Schwab wanted to unload the Bethlehem COM
pany on the shipbuidinE company to keep Up a
semblance Of competition with the Steel Cor
poration in arrnor plate manufacture It is said
to be also the contention Of counsel that Mr.
Schwab's original purchase OF the Bethlehem
plant was to keeT IT from being taken over BY
English firm which would have been real
competitor.
Mr.. Schwab was a close listener to the testf-
mony. his attorney. Max Pam. and az
usual the library OF Gusgsnheiner. Untermyer
& Marshall at No. 80 Broad-st., where the hear
ings are held before Mr. OIiphant. the special ex-
aminer. crowded It has not been an
nounced when Mr.. Schwab viii be called to the
witness stand. He will be ready to go on to-
day. If Mr.. Nixon's testimony is not continued
too long
CRAMPS PAID NIxONs SALARY
When Mr.. Nixon took the stand he asked that
the hearing be allowed 70 go on without recess
until 2;3O p. m. he might meet business
engagement after that time. Mr.. Guthrie OBJ
iected. and it decided to have the recess at
the usual time.
You don't to consider at all" Mr..
Nixon said. and make engagements from time
tn fu1a md oft arad wi
But 90 ahead with the case. you see best
I'm anxious to get this over
Il don't want that put on the records" said
Mr. Guthrie.
Il think it may go on the records" said Mr..
Nixon. that you show courtesy 70 the wit
nesses-'
Replying to Mr.. Guthrie's questions. Mr.. Nixon
said he opened the Crescent shipyards in 1895.
and that he had little capital except his own
ability Here he objected 20 the questioning.
saying: Il don't see why you should go back
five years. II you show that this inquiry
has any bearing the present proceedings
shall be pleased to answer; but see no reason
for going back"
Mr. Nixon said that his salary guaranteed
to him by William Cramp & Son. and he re-
garded this as part Of his capital He incOr-
pOrated the Crescent company with capital OF
81 100000 Of which S1.197.OOO Of the stock was
cash.
do you know that the books Of the Crescent
company on July 81. 1902. showed balance OF
S215. 216?" asked Mrs. Guthrie.
The record will show; 1 don't remember
now" replied the witness.
DO you not know that in fact the books on
that date should have shown a deficit OF over
S5OOOOO2''
Wait" exclaimed Mr.. Cntermyer. 1--WE viii
admit that. II the purpose OF this examination
is 10 show that the United States ShipbuiIding
Company was hopelessly insolvent when it was
started we are willing to admit H. and thus cur
tail the examination. The insolvency OF the
company is one of our allegations"
Mr.. Guthrie said that the United States Snip
building Company might or might not have been
insolvent. but he not willing TO discontinue
the line Of questioning The balance sheet OF
the Crescent Company. Mr.. Nixon said.
made on July 81. 1902. BY the boOkkeepers.
Messrs. Wertz and Kaufman. and he had aoth-
ing 10 do with IL The books were thrown open
for examination said the witness. and took
no part in preparing the statement as did not
wish TO invite criticism by preparing state
ment OF my company"
Mr. Guthrie asked when the witness discovered
a shrinkage OF $4,000 in the current assets Of
the United States shipbunding Company. Il
don't remember that there was such shrink
age in the current assets" replied Mr.. Nixon.
There was a shrinkase OF S1.OOOO00. but do
not remember how IL was divided
Mr. Nixon declared that what Mr. Guthris
termed erroneous entries in the books. were not
erroneous. There were differences in the meth
DDS OF bookkeeping" he said. Mr. Nixon said
he learned Of a shrinkage Of 100000 in the
Union Company before he went to inspect the
yards.