New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-08
IN BETHLEHEM DEAL.
Continnsd from first pags-

'sye- asked.
Mr. Guthrie objected. and NJ. Unterrnyer said
he had 10 desire 20 pry into A-. schwab's pri-
waite business but he was anxious TO ascertain
= Mr.. schwabs holdings affected the purchase
by others OF stock OF the United States Steel
Corporation
Er. Unternyer then protested against the IRE
puent Interruptions by Mr.. Guthrie. and In spite
OF Air. Guthrie's Instructions 10 the contrary
1fr Schwab said he preferred 10 answer MI.
Untermyer's questions as 10 the proportion OF
his ownership OF United States Steel securities
lie said the records would show that he was the
largest owner Of that cornpany's securites
OLD OPTION on BETHLEHEM PLANT
Q-As bearing on the effect OF the ACTIVITY 1,, on
the market due the purchase by ne mas Vas
States steel Corporation OF GoL.SntueIlt P,1tS A.
thero oDtioD on the BetLleheih punt IA
5enfEe u I65s Fa5 the plant option on the Bethle
aein Cxuired when YOU arranged FOR It's purcnaset
A-on May s. lg2 was tol9 5 10y ~ Nv TecoIeo-
tion was that SIS 90 share had been oIiereu Iof
ih3e si9eS he d e T Pala Who vi hsid the opOnH
don't know that ne dc DO r,r,erie property had
been under option year previously at -iId
5hs Prise Ct 9 %hSh was T decline to answer
Q-Wthopt asking for me eLae9 M1i ne pre-
ferred and common stock YOU now own -. 81 me
The proportion which you held at the time OF the
organization q the company: Al oecliie ~
owIs #, or MOT a fact that the market value
Of the PEoPsTtiS al }ae un Was sected by the
Sormafion Of the United states Steel Corporation
oLWepe J YOU connected as organizer. or under
OF tie organization the United States Steel Cor
p06Tau9n1 about the Pneumatic Tool Company?
Were you not Interested in that company? Al
DIS it st your opinion that IT, there was no IN n;
hation OF values Sfstes Steel CoTporaton?
0W a9 lnos y3n returned from Europe diq you not
own $4,000 Of United states shipbuiidiing first
inoF5gage rsTs 1on W. Gates half Of my subscrp
'i9 9.you have never sold or parted with any
oDo YOU rem ernter Mr.. schwab, the day these
likely TO for"et It.
SCHWAB EECOSfES EXCITED.
Mr. schwab identified the statement IN the
s,evspapers authorized by him In June. 1903. and
he got I'D IN evident excitement when Mr.. I'm
aermyer asked;
WAS the statement written or in typevriting
rvfaen st was given out for publications.
Now must have chance to answer" the
witness said, beginning a statement Mr.. Inter
snTer interrupted TO say he simply wanted the
witness TO describe the way the statement was
given out Mr.. Schwab becoming more excited
at the interruption, declared: You don't give
me chancs TO tell the truth. I don't know
whether il written or in typewriting. It
was prepared by Mr.. Pam while was sick abed,
sWer ought 10 be made 10 the charge of fraud.
] communicated with Mr.. Pam over the tele-
phone"
OIr. Oliphant stopped the witness and told him
10 be seated.
o-Yon understood this statement showed that
You owned SoyeJ9 OF ShlpoulldtIg bonds and yet
lion as TO whether there were $4,000 or $4,000
Q-Is il TACT 5Rat you held eos Of the bonds
when this suit was begun? Al think did
Q--You received $4,000 under the original under
o-bid 1fr Gates aooouSt You agreed
70 p99I our purchase; had s4g1o@ OF INC stock
cur purchase. each taking halt W. 1S'ss' 70 pool
tie 5bas E par Part Of sn he
o.Di5 y9g not get an accounting from Gates
thar ne had disposed Of none Of the bonds, and
oyLfE8't n ysrt DffhsT vo,, ,-ars ,,+e,.~tes g.,
the bonds Mr Gates sold? %T vas net IN
Q-How many first mortgage bonds OF the United
time these proceedings were begun2 A-Between
S 9m3at, Is stock Of the United states stp6uilaig
more than 100000 OF each kind OF stock
you received SO Of each KIND os stocE ss9
parted with s 10000 OF each kind to J. P. Morgan
STEEL MEN IN BETHLEHEM DEAL
how was the interest in the Bethlehem d.
vided at the time you received tho bondsr'
asked NJ. Unternyer.
TIL give you the list, but don't think Il IS
right" said Dir. schwab. He drew paper from
his pocket ana handed II TO Mr. Unterrnyer
who SAID # might not be material
''oh," said Mr.. Untermyer. on inspecting the
list, this might he material after all"
Mr.. Guthrie requested Examiner OIphant 10
prevent the publication Of the List If Mr. Inter
nyer made OF the names. The examiner
said counsel could settle that between them
selves.
He was. lie paid his money.
Ole was interested TO the amount OF s277 0007
o-And IN all you had thirteen or fourteen as
isociatesf Ayes You had better read their names
:. Q-Is IL not fact there thirteen or four
ODD they not include high officials OF the
United States Steel CorpoTatonf A--You might as
Oh the sale of Bethlehem to the steel svDdi.
cate were not these officers associated with your
Afteryard these persons Interested with me-
OILS the sixth that list that Of the
president OF the Corporation Trust Company? A
HOW SOME GOT OUT.
Mr.. Schwab broke IN with an EXPLANATION.
and despite Mr. Untermyers protest the wit
mess said: when this litigation started sent
for the gentlemen associated with ne and gave
them the option Of taking back their money I
did not want them to take any risk. Some of
them gave back the bonds and I gave them
back the cash"
OILS this statement OF the holdings OF your
associates taken from your books2 Alt Is
Q.-At what rate did you sell bonds and stocks
10 your associates? Al 6iG not sell them
Q.-what price asa they pay for their bonds ?
the time OF the transaction sent for these gentle
men and told them y they wished TO go In ex-
thew could