New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-25
BETHLEHEM'S EARNINGS.
INCREASE IN THE ASSETS.
Effort to Shoe That Company
AU0ided Paying DiOidend.


Yesterdays session OF the shipbuIIdng hearing
was taken up with the continuation of testimony
by Alfred Rose. the accountant, who testified on
Wednesday regarding the alleged padding of the
assets OF the Bethlehem Steel Company in the ap
plicaton made to the Stock Exchange for the list
ing OF the securities Of the United States Ship
building Company. Part Of the day the witness
under cross-examination by W. D. Guthrie,
Of counsel for the shipbuIldIng company who tried
to get admissions break the force of the charge
so often made by Samuel Untermyer of counsel for
the bondholders bringing the recetvership suit,
that the application to the Stock Exchange con-
taIned false and misleading statements.
Charles NJ schweb did stay to hear the testi-
mony yesterday. Having satisfied himself that MIR.
Rose would be the only witness for the day. Mr..
schwab put his hat and coat and walked out OF
the rooms of the Board Of Trade and Transporta-
ton. where the hearing is being held. His attor-
ney Max Pam, remained TO watch the proceedings.
Before the close OF the session Mr.. Guthrie asked
to have the hearing go daily week. but Mr..
Unte-rnyer said would be busy with other
cases. Mr.. OIiphant, the special examiner, de-
cided that the next sessions of the hearings should
be held January and 7. each beginning at
Il e. n
In the direct examination OF Mr.. Rose yesterday
morning Mr.. Untermyer asked many questions and
introduced several reports and balance sheets to
show how large the spent the Beth
Iehsnn Steel Companys plant from July g. 1902 the
time which the inventory Of the company for the
purposes OF the statement to the Stock Exchange
was taken to August 80 1893. These sums. whether
for construction, repairs renewals. seemed TO
foot up TO $1SS3 94s. The apparent object of Mr..
Untermyer TO prove that before the sale of the
Bethlehem plant TO the shipbuilding company it
had been the custom OF the Bethlehem officials TO
spend about sI6S 600 year such improvements OF
the plant but in the year after the sale the sum
spent was than S1,250.0O0. in order to escape
paying a dividend which the shipbQilding company
could in paying interest on its first mortgage
bonds.
Igoflo lima NT ATr TDr arrTNar
asked what the books of the Bethlehem company
showed to its earnings in 1903. and answering
May. June and July of this year the witness said
the net earnings for May. $52.S13 "a; June.
500 762 to; July, s4s9 160 81, making total after
Quoting for interest on bonds for that term. OF
$685.. 1876 A.
Q.-What were the sales for that period? A--The
total was SzS0e.l42 u.
THE MATERIAL ON HAND.
Q.-what was the amount of the manufactured
of that period? A-$4,s9s. 77s %.
material on hand at any time in the history OF the
company? AND If it was. how much larger was it
than the amount at any other period? At was
not the largest On the date OF October g. 1903 the
than At any previous period? A :; 90 %, actual sx
than the inventory of July, 1902
Q.-whgt was. the net income for the period OF
o-Eon What volume of business7 A-a.s7s 4s2 60
The earnings, tho witness said, this period
were SILL 92S &c. The net earnings for the SIX
months, from May to October, inclusive after al
lowing for all charges except depreciation. were
&1.o1O.662 o.
Q.-Do those figures agree with the figures reached
by ths auditors Of the company Al suggest no
>0.SWhat was done with the ,. earnings for the
OF $lS2 f62 81 was expended on plant account ana
s316r6E5 went to the account Of 'investments' in
do the Investments in bonds and stocks in
clyde fhs Of sas 85p gss be p9 has
is down The Uruguay Mining Company
Mr.. Unter1nyer turned again to the surplus cur
rent assets of the Bethlehem company, concerning
which the witness testified Wednesday, and
asked him TO tell the amount OF those assets on
October 81. 1903 On that date Mr.. Rose said the
surplus current assets of the company were 81
5S4. BIG q.
Q.-what was the increase in the surplus current
tween July, 1902, and October. 1882 A--The in
Q~Teii me how much increase there has been in
nafaGrured Pr2d9ct5 sa9 9 IN o course OF many any
O.~What was the total Of the expenditures for
plant and construction in that period? A.-SS65,-
Q.@what was the indebtedness Of the company
during the same period? A.-$76i-S57 81.
Odd you include stocks and bonds and the
bonds Of the outside companies as among the sur
Q.EYou didn't include the Uruguay stock? Al
did not
EVERYTHING TO GO ON RECORD.
Mr.. Onphant, the special examiner had TO inter
fere, before Mr.. Guthrie began the cross-examina-
ton of the witness. because Mr.. Untermyer made
some remarks which he said need not go on the
record and Mr.. Guthrie insisted they should be
reported to the court Mr.. Guthrie said the exam
tner had reversed his ruling that point three
times. After some deep thought, the examiner
said:
On reflection the examiner states that under the
rule and for the information Of counsel so that
hereafter there ma be no misunderstanding All
that is said and takes place the hearing will
appear the record. Counsel have fr in
their own power to keep great deal Off the rec
ord The examiner is unable TO draw the line and
consequently counsel will nave to get relief from
the court
When Mr.. Guthrie took the witness in hand h.
drew from him admission that there had been m
appraisals OF the materials az the Bethlehem nlsnt
either finished or partly finished. 70 show tho cor
rectness OF the inventory that made as OF Jul
81 1902 MT Rose satd he had merely satisfied him
self that the Inventory had been book inventory
in which the materials on hand had been figured |
at cost
Odd YOU make any investigation TO whether
the market value OF materials had increased above
the price paid for them by the company? A.-No
o Did you examine the contracts under which
The bethlehem company was supplying armor plat
and war material 10 the government? Al dN.
C-Did you not know that these contracts covered
period OF over two or three yearsf Al under
stood Sc. .s., -. -.
other officers of the Bethlehem company that on
Contracts with the government certain payments
had been made before the complexion OF the work.
Al was aware from the books that the company
had received money from the government ac-
count OF the contracts
Mr. Guthrie tried to get the witness 10 say that II
$4,000 or $4,000 OF partly finished or unfinished