The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1904-01-12

cSaWAo. ex-preeF0ent OF the GATED
States Steel Corporation took the sanE,d
today IN the hearing to make peruo-
men, b receivership over che United
States ~shipouIldins Company 10 sen
OF his connection with the aa,e Of IL
Bethlehem Steel Company to he sAso-
yards concern
Counsel Urtermyer examined che viii
ness Mr.. Schwab said ID haa no Gen.
nection. executive or advisory, with tbs
Bethlehem Steel Company AZ th,s time.
though he had "an enormous psounsary
interest" in that company.
tiare there not been a pertca OF In
nation in the steel business surng D
last i've years?"
mand.''
But i am asking abou, inaa.ssn Of
values OF properties"
So far as properties with which L
am connected are concerned there has
meen none except SO far as il due to a
period OF general prosperity"
Mr.. Schwab declined To make any
statement regarding alleged infat.oH
AAaA&
Mr.. Schwab, against Mr.. Guthrseis
advice. said that he had since the for
nation OF the steel corporation sold a
considerable amount OF steA securities.
but that an examination OF his account
would show that most OF the sales were
or bonds and that. despite his sale OF
some Of the stock. he believed himself
to be the largest owner OF steel stock
Mr. Schwab testified as TO the extent
OF his holdings OF shipbuilding stock
The allotment OF stock. he said, was
never made. and he still retained all
OF the stock. $50. 900. 900. Mr.. Schwab
testified that OF the bonds allotted he
had r~epurchased from his associates
all but $495, 600. being now the owner
Of SO, 5oe. 900 OF the $40. 900. 600 bond Issue.
| Mr.. Schwab testified To talks with
Lewis Nixon about the latter's plans
for a shipbuilding combination. Mr..
Schwab had no recollection OF having
been an underwater in the so-called
poor plan for a shipbuilding consoli-
dation, his testimony on this point be-
ing at variance with that OF Mr.. Nixon
Mr.. Cntermyer's next line OF fnterro-
cation took up the competition betweea
the Carnegie and Bethlehem companies
for government armor-plate contracts
and the understanding between the two
and the government for a division OF
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 two TO Compel for contracts in
good faith?'' was asked.
NO the government did rot, Mr..
Schwab answered. stating that the un-
d~erstanding with the government was
that the two companies were to share
the work and that the price at which
the contract was to be awarded was
always understood by the government
before the bids were submitted.
Mr.. Schwab said he had a controlling
interest in the United States ShipnuKd-
ing Company and through IL Of the
Bethlehem Steel Company.
Mr.. Schwab said that he had con-
trolled the Bethlehem Company through
its directorate, from the time he pur-
chased IL in 1901, until IL was sold to the.
~Shipbuilding Company in August 1901
OF the present directorate six OF tina
seven members were suggested by him,
Lewis Nixon being the only one who
was not 'one Of my people" Nixon
had been very friendly" Mr.. Nixon,
too. is the only member of the boana
who now has any ~pecuniary. interest
In the bodybuilding company.
Mr.. Untermyer then asked q long Sc
rfes OF questions about the directorate
Of the s~hipbuilding company, and the
extent Of Mr.. Schwab's control thereof
Mr.. Schwab admitted that either he, or
his employees for him, owned the COD
trolling interest Of the company and
that the directorate was composed 81
his friends. He controlled, he said. the
United States Shipbui ding Company
through his stock, but when he wenx
abroad he left no one. he declared, Ia
represent himself in the company. He
admitted, however, that Mr.. Pam was
on the board of directors at mis- sug-
gestion and that other members OF the
board were nominated by Nixon. Dres-
Ser and Pam.
IF they did not select members who
represented my interest they q
great mistake" he added. evoking .
general laugh.
Now that we ave read over the list
you will say that the entire beard Wa
controlled by YOU" asked Nr. Inter
myer.
well. I have not said So" answered
Mr.. Schwab. laughing and laying en-
phasis On the said"
you had control Of the shipbufdng
! company"
IT did not"
You had control OF SIS. ~. soe. -:
stock7"
"I did"
You considered yourself ana Nor
gan as controlling Bethlehem Did ns4
your"
YEA"
You considered you were entitled to
control IL even after you sold itf-
II did. I was not going to Jeave.
available property TO 60 to wreck ana
ruin"
Adjournment was taken until next
Tuesday