The Birmingham age-herald., 1904-01-08
THE MORNING SESSION.

Counsel UEtermeyer for the complain ant Eondholdeis' Protective association, immediately began the examination or the witness
 MT. Schwab gave his age as fl and said he at present had nc occupation, having ceased lo be president Of the United States Steel corporation. He had no connection, executive or advisory with the Bethlehem Steel company at this time, he said, though he had an enor- nous pecuniary interest in that company. He severed his connection with the man agement of the company on account or his going abroad in 1902.
 His whole life, he said, had been con- nected with the steel industry.
 You are considered the leading expert in that line, are you not?' was asked
 q do not take that honor to myself, he answered.
 Has there not been pericd of infla- ton in the steel business during the last five years?"
 Been Good Demand.
 There has been a period of good de- mand"
 But I am asking about imitation of values of properties
 So far as properties with which l am connected are concerned, there has been none, except so far as is due to a period of general prosperity.
 The crest of the wave of prosperity in the steel industry, he said, was coinci- dent with the information of the steel corporation but the demand. he said, had not fallen off materially until within the last few months MT. Schwab said he was not a defendant In the present suit, but he had retained counsel personally.
 "Mr. Guthrie is my personal counsel in this and all other litigation" he said MT Schwab stated that he bought the Beth lehem property shortly after the sale of the Carnegie properties to the steel cor poration.
 MT. untermeyer asked if the sale of the steel properties to the corporation at that time had any effect upon the values of steel properties, but under the advice of MT. Guthrie, MT. Schwab declined to answer that question or to make any statement regarding alleged imitation of the value of the Bethlehem plant.
 Was In Competition.
 Mir Schwab testified that at that time the Bethlehem plant was In competition with subsidiary plants of the United States Steel corporation in the manufac- ture of armor, but in no other respect the bulk of the Bethlehem plants busi- ness consisting of the manufacture of  forgings and compressed forgings. He did not regard the values paid in securities for the constituent plants of the steel corporation as at all inflated. During a series of objections over a question about the amount of steel stock still held by MT. Schwab, MT. Untermeyer stated that his intention In asking this line of ques- tions was to show that the prices paid for the constituent plants of the steel corporation had a great effect in initiating the prices asked for other similar plants, and that if 1t were shown that Mr. Schwab had parted with much of his stock 1t would indicate imitation. Dur ing the colloquy MT. Guthrie protested against this line of inquiry as an outrage and asked the examiner to suspend the examination until the matter could be certified to the courts.
 Sold the Securities.
 MT. Schwab, against MT. Guthries ad- vice said he had since the formation of the steel corporation sold a considerable amount of steel securities, but that an examination of his account would show that most of the sales were of bonds. and that despite his sale of some of the stock, he believed himself to be the largest own CT of steel stock. He declined to state the amount of steel stocks and bonds he now had, and had sold, declaring that he did not intend to permit such an inves- tigation of his private business by MT. Untermeyer. The witness accepted MT. Guthries advice not to answer in regard to a long series of questions along this line.
 As bearing upon his knowledge of steel properties in 1901 and 1902. MT. Schwab was asked if he had not been interested in the organization of the American Steel Foundry association and other steel prop critics and consultations, but he declined to answer except to state that he was not interested except as an underwater In the foundry association. and to say that he could form no opinion as to whether