New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-08

Steel corporation last July. except that he was
looking after his personal affairs Except for
his pecuniary interest in the Bethlehem COM
pany, he said, he an outsider. Mr.. Guth-
rie's objections stopped him from admitting
that he had control of the company. Mr.. Inter
myer then began to question him about imitation
of Steel stocks.
tefs? &i 2u sont T5 take That at honor hon ol To- myself
Q.-Was there period Of great initiation in the
steel industry within the last five years? A
There was a period Of good denaad .,..o
In those with which ! have been connected there
Q-When was the crest of the wave Of pros
perity in The steel business reached within the
0IWas il about the time Of the formation of
the United States Steel Corporation? Alt was
Q-Is the business condition in the. steel industry
as good now as it was at the organization OF that
Q.ED6n,t You know, we are here trying the is
sue oI whether the shiphuilding company is sol
vent or not? A-Yes; know that.
COUNSEL OBJECTS TO SUGGESTIONS.
Mr.. Guthrie said he and c. c. Deming ap-
peared as counsel for the company to defend it
against charges of fraud mismanag cement and
insolvency.
Mr.. Untermyer then called the attention of
Examiner Oliphant TO Mr. Guthrie's statement,
saying that the reply Of the counsel for the de-
PENDANTS Was put in the form of a suggestion
to the witness called to answer the charges of
fraud and insolvency in the company.
Q.-Mr. Schwab, have you within the last four
weeks sworn L. the cross bin in the New-York
Security and Trust Companys suit against the
p-Ihd you state under oath that the shipbuild-
ing company was insoyent and wholly unable to
carry on IFS business? Al did.
,Q-Are YOU aware that the company which is
the sole defendant in this action is claiming
mat II was solvent Al don't know anything
about that l know that when the cross bill was
nleu the company was inSOlVent.
Q-And you are aware that your counsel IS also
understand il.
Q.-Are you not aware Of the prices that were
paid for steel plants the time Of the formation
of the United States Steel Corporation? Al did
know, but can't recall any specific figures.
Q-What was the date Of your acquisition Of the
Bethlehem property compared with the sale OF
the Carnegie property? Alt shortly after
ward.
Odd the prices tnat were being paid for these
steel properties at that time? (AIr Guthrie in
structed the witness not to answer and Mr SChwab
declined 10 repIED Was there not, due the
purchases at that time by the United States Steel
Corporation. an increase in prices of other steel
plants? Al decline to answer.
Q-What sort OF business the bethlehem
company engaged in that the constituent plants OF
the United States Steel Corporation did not carry
on A.-Guns some general forgings and armor.
DO you say that you do not regard the prices
paid by the United States Steel Corporation for its
not said
Q.-Do you think they were inflated? Al do
,Q--Did you regard the securities paid for the
plants as inflated? Al did not and do not now
sCHWABs STEEL STOCK HOLDINGS.
What portion Of steel common stock that you
held at the time oe the formation Of the ship
Continued fourth page.