The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-01-08
MR.. SCHlNAB
ON STAND.
Tcstifcs iii Hearing Of United
States Sl1ip-Building Re-
ownership Case.
CONTROLLED THE COMPANY MI
Admitted That the Board Was
One Which Represented
His Interest. #
(By Associated Press.)

(l3y Associated Press)
NEW YORK. Jan. 7.--charles M.
schwab, ex.presldcnt Of the United
States steel Corporation, took tho stand
to.dayyin the hearing to make permanent
the reccivership over the United states
shpbuildIng Company, to tell OF his con-
necticn with tho sale Of the Bethlehem
steel Company to the ship-yards' con-
Germ
Counsel Untermcyer examined the wit
ness Mr.. schwab said he had no con-
ncction executive or advisory, with
the Bethlehem steel Company at this
time. though he had ian enormous. Pc
cuninry interest" in that company.
HAS there not been period Of IN
flation In the steel business during the
last five yearsT
There has been a period OF good de
mand.''
values OF properties"
$50 far as properties with which
am connected or concerned. there mas
been none except SO far as IS due 10
period OF general prosperity. 5l
i Mr.. schwam declined TO make any
statement regarding alleged inflatlon VI
the value Of the Bethlehem plant.
Largest Holder.
Mr. schwab declined to make any
vIcc said that he had since the loSJ1a-
ton OF the steel Corporation sold con-
aldera bic amount Of steel securities, out
that an examination of his account Wou w.
chow that nose OF the sales were OF
bonds and that, despite his sale OF some
OF the stock, he believed himself 10 oe
a he largest owner of steel STOCK.
Mr. schwab testified l5n IL dime e stocR
Thc allotment Of stock, he said, was ne w
made. and he still retained all Of OF me ne
stock-sso, 90 900 Mr. schwab = .e e n;rl
that bends asso aiiatesd ali III W
being now the owner of *9oVo,Vo'a OF ttte
SO COO, 600 bond issue. ~. ,,,,,
= Mr.. Schwab testified to talks with 1 tl,tl
Nixon about the latter's plans for SNIP
building combination. Mr.. schwab had no
recollection Of having been an under
writer in the so-called plan tor a SNIP
building consolidation, his testlnloi,,S ~
I his noint being at variance with that OF
Mr.. Untermeyer's next line Of interroga-
ton took up the competition Det"een
the Carnegie and Bethlehem companies
for government armor plate contracts.
and the understanding between the Two
and the government for division OF BUS
mess t. the maximum pIlCe'
No Competition.
-3i..Did you not know that the govern
ment, when It asked the .Iarnesi ssr S otsd
the two to compete for contracts IN gooo
faith?" was asked. ~,
mo, the government did n9t, s ssI
Mr.. Schwab. stating that the understand
Ing with the government was that me
two companies were to share the work.
and that the price at which, the contract
was to be awarded was always undeI-
stood BY the government before the bids
were submitted
controlling Interest in the United States
Of the Bethlehem Steel Company.
MIR Schwab said that he had controlled
the Bethlehem company through ITS dire e.
,sFae n Tpm Ms Hnd he ,o he ID
company, In August, 1902. OF the present
directorate. six OF the seven members
We're suggested by him. Lewis Nixon
my ny : people, cor Nixon had been very
Mr.. Nixon. too, is tho only member Of
the board who now has any pecuniary
MIR Untermeyer then asked long Sc
rles Of questions about the directorate
of the shipbuildlng company, and the ex-
schwab admitted that either he, or. his
employees for him, owned the controlling
Interest OF the company, and, that the
idirectoratei was composed OF his TRENDS.
Controlled the Company.
no controlled, he said the United States
Shlpbuilding 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 directors
at his suggestion. and that other members
Of the board were nominated by Nixon.
Dresser and Pam.
"If they did not select members who
represented my interest they made q
great mistake he added. evoking q gen
cral laugh. !, I,
YOU Nv VIII say that the entire board was
controlled BY your? asked Mr.. Unter-
meyer. !,
Mr.. Schwab, laughing and laying empha-
''S'.You had control Of the shipbullding
company" liza
IT did not" !,
E,'You considered yourself and Morgan
as controlling Bethlehem. didn't your
you considered you we're entitled to
control 1t even after you sold 1t?" "a
IT did. was not going to leave
valuable property to 80 to wreck and
rum"
adjournment was then takcn until next
TUESDAY ". fA b. gs. st. s,-i l. 4.