The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1904-01-12
'SCHWAB HOT
UNDER FIRE
OF ATTORNEYS SHARP Ex.
ANIMATION.
Refused to Answer Many
Questions
SAVE IN HIS OWN way
SAVE IN HIS OWN way

Was Largest Individual Stockholder
In Steel Corporation, and Controlled
Shipbuilding Company and 6ethIe-
hem steel Works-Contradiete
NIxon's Testinnony-5ecame Much
Excited and Argued Case With
Counsel.
New York, Jan. Under rigid
and rapid fire examination at the
hands Of Samuel Untermeyer, counsel
for the dissatisfied shareholders Of the
United States Shipbuilding company.
Charles M. Schwab, former president
Of the United States Steel corporation,
was forced to make many important
admissions in regard to the doings Of
the defunct United States Shipbujld.
ing company while he acted as prcst-
dent of the steel trust He was the
only witness called today at the hear.
ing before Special Examiner Oliphant
to determine whether the receiver
ship for the shipbuilding concern shall
Dt uduc pSIudhchts
Mr.. Schwab said he was the larg.
est individual holder of stocks OF the
steel corporation in the United States
and admitted that he controlled the
ship building company and through 1t
the Bethlehem Steel company.
In stating that in his opinion the
crest of the wave of the prosperity
in the steel industry had receded, Mr..
| Schwab expressed the opinion with
emphasis that the price paid by the
steel corporation for various plants
was not grossly exorbitant.
! At one stage of the proceedings Mr..
Schwab fatty contradicted testimony
given by Lewis Nixon, former presi.
dent of the shipbuilding company to
the effect that Mr.. Schwab had agreed
to assist in underwriting shipyard
combination in 1891.
The witness admitted that several
men had been associated with him in
the management of the sbipbuilding
company which resulted so disastrous
ly but declined to name any Of the
men except Mr.. Pam.
| Questioned in regard to whether he
had sold any of the shipbuilding stock
he received in connection with the
Bethlehem deal Mr.. Schwab declared
he had not sold share.
All through the examination of Mr..
Schwab w. d. Guthrie, counsel for Mr..
Schwab and the shipbuilding company,
protested, declaring that Mr.. Inter
meyers questions were improper, in
sulting and an effort to pry into the
private business of the witness.
At times Mr.. Schwab ignored Mr..
Guthrie's admonitions and answered
questions freely.
| When pressed too hard he took ref
uge in the reply, 81 don't know" Il
don't recollect."
Many times during the course OF
Mr.. Untermyer's examination Mr..
Schwab grew visibly excited and he
insisted time and TIME again that he
be allowed to answer questions in
his own way or refuse to answer them
entirely.
The nature of his transaction with
John W. Gates in sharing their sub
scriptions to the Sheldon reorganiza-
tion committees plan for the reorgan-
ization Of the shipbuilding company
was gone into very thoroughly by
Mr.. untermyer despite the vigorous
protests of Mr.. Guthrie.
On several occasions during the
progress OF the examination the coun-
sci entered into wordy war in which
the examiner and Mr.. Schwab also
took a hand and several times the
four principals were talking at once.
Mr.. Schwab was apparently annoyed
at the trend of counsel's questions,
especially those relating to state
ment issued to the press and purport-
ing to have come directly from him
on June IA, 1903. in which he made
several statements as regards his
holdings In the United States Ship.
building company
1t developed in the course of the ex-
animation that the statement had
been issued for Mr.. Schwab and Max
Pam, his confidential attorney, and
while he said that there were sever;
al ipaccuracies in the statement hS
would not say that he repudiated it,
even In psrt. 4
The hearing adjourned until next
Tuesday.