The Montgomery advertiser., 1904-01-08

Tn the SO~CdlleQ fOOE pidIl hOE Uukil~ building consolidation, his testimony on i this pcint being at variance with that of Mir. Nixon.
 MT. Schwa6 professed lack of rec0ilec- tion of details of the Poor shipbuiiding project, but said his confident purchase of Bethlehem was not in. any way con- nected with this effort to arrange a con- solidation. ...
 Mir Untermeyer's next line of interro- gation took up the competition between the Carnegie and Bethlehem companies for government armor plate contracts, and the understanding between the two and the government for a division of the business at the maximum price. Did you not know that the govern ment when 1t asked the Carnegie Com pany to build an armor plant, expected | the tvo to compete for contracts in good faith?' was asked. No. the government did not" Mir. schwab answered, stating that the nri- the two companies were to share tho work and that the price at which the contract was to be awarded was always understood by the government iefore tho bids were submitted. Mir, Schwab admit ted that he had a controlling interest Tn the United States Shipbuilding Company and through 1t, of the Bethlehem Steel Company. saying In reply to an inquiry if he considered himself the controlling factor in Bethlehcm's policy:
 'Tf you mean that own the controIl- ing stock of Bethlehem. and the shipbuild- ing company. I do: and I take the credit of giving advice to the management oe those properties" r.
 Has the receiver of the United States ShipbuildinR Company anything to do with the management of the Bethlehemr'
 ''I do not know"
 Your interest in the Bethlehem Com pany Is through the shipbuilding Com- pany?''
 Tt is''
 Has anybody an interest in the profits of the Bethlehem Company
 T made an arrangement with the man- agers of the Bethlehem Company when I bought that property. but do not know whether legally or illegally. that arrange ment is continued still"
 Mir. Schwab said he has controlled the Bethlehem Company through the directo rate in the time he purchased 1t in 1901 when he and representatives of J. r. Morgan and Company reorganized the directorate until it was sold to the Ship building Company in August, 1903. or the present directorate, six of the seven members were suggested by him, Lewis Nixon being the only one who was not "one of my people" Nixon had been 'very friendly" MT. Nixon, too, Is the only member of the board who now has any pecuniary. interest in the shipbuild- ing company. MT. Schwab having taken off the hands of Joseph Schwab, his brother. and Charles Baker, the bonds they formerly owned MT. Untermyer then asked long se- ries of questions about the directorate of the shipbuilding company and the extent of MT. Schwab's control thereof MT. Schwab admitted that either he or his employees for him owned the con- trolling interest of the company and that the directorate was composed of his friends. He controlled, he said, the United States Shipbuildlng Company through his | stock, but when he went abroad he left no one, he declared. to represent himself in the company. He admitted, however, that MT. Pam was on the board of di- rectors at his suggestion and that other | members of the board were. nominated by Messrs. Nixon, Dresser and Pam.
 'If they did not select members who represented my interest," they made a great mistake" he added, evoklng a gen. eral laugh.
 MT. Schwab then being asked if his brother, Joseph Schwab. had not been placed on the board to represent Mir. l Schwab's interest. replied emphatically that he considered 1t an insult to a di- | rector placed on directorate, to repre- sent a company to say that he repre- scented an individual stockholder. Later, under questioning as to individual direc- tors. MT. Schwab admitted that nearly every director of the board was there representing his interest.
 Now that we have read over the list. you will say that the entire board was controlled by you?" asked Mir. Inter myer
 'Well. have not said so,' answered Mir. Schwab. laughing and laying em- phasis on the said
 Why did not you go into the board yourself?"
 "I was too ill."
 'In the shipbuilding company you had the say. did you not?" l No"
 :''Who did?"
 ''The stockholders"
 Whom do you mean. MT. Oliver Wrenn and your employees"
 Yes"
 You had control of the shipbuildlns company"
 'I did not"
 You held $9O.OOO.OOO of its stock?"
 T did not. I held S15.0OO00O of it..
 And you had no idea what Morgan & Company were doing with their stock?'
 'I had a very good idea what Nor gan & Company were doing with their stock" answered Mir. Schwab, with a smile.
 You had the control of $25,OOo,COO of stock?"
 "I did"
 Where was the rest of it?"
 "I do not know"
 You considered yourself and Morgan as controlling Bethlehem, didn't you?"
 Yes"
 You considered you were entitled to control 1t, even after you sold h?''
 T did. was not go.N.g to leave a valuable property to go to wreck and ruin.'
 Adjournment was taken until next Tues. day