Evening star., 1922-06-04
W|THHO[DS DATA
ON STEEL MERGER
Kuhn, Loeb & Co. Tells
Untermyer Documents
Are Private.
By the Associated Press.

Schin Of Kuhn, Loeb & Co. today de-
clined to produce documents relating
to the Republic -Midvale-I Inland steel
| merger which the Lockwood legisla-
tive committee ordered him to turn
over to them. His refusal was based
| on a claim that the papers were
private documents which the COM
mittee had no power to acquire.
IT won't decline and won't say
yes" was the reply.
When Mr. Schiff sought to qualify
this refusal by saying he would con-
suit counsel about the advisability of
complying with the request. Samuel
asked II he would produce the paper
If directed to do SO by the committee
chairman.
The papers merely dealt with mat
ters OF a private nature-earnings Of
companies in the proposed merger and
ing the merger. the witness declared.
he had not conversed with j. P.
Morgan or made any inquiries
| whether the merger would be agree
| able to him or to the United States
| Steel Corporation.
Thomas Chadbourne Called.
Thomas L. Chadbourne. counsel for
, the Republic Iron and Steel. the Mid
vale and the Inland Steel companies
! during negotiations looking to the
| merger. was called to appear before
the committee today and explain the
| details Of the consolidation.
A subpoena was issued for Mr..
Chadbourne yesterday after Samuel
Untermyer. counsel for the commit
tee. had denounced the officials Of the
| three companies for the manner of
the merger announcement and the
| fact that they had not explained the
details Of the new company's fnanc-
| ing by Kuhn, Loeb & Co.
John N. Topping. chairman Of the
board OF the Republic Iron and Steel
Company, was called to take the
stand again today to tell OF a stock
bonus arrangement with the bankers.
Mr.. Topping the admission that
| among the unpublished details Of the
| merger was a deal with Kuhn, Loeb
& Co. to raise $65.000.000 to under
| write the merger and $20.000.000 to
| make a market for the new North
American Steel shares.
| Untermyer Charges Plot.
This $20.ooo.ooo, Mr.. Untermyer de-
| clared. was to be used for trading in
the market so that when the stock
reached proper high level the in
! siders could unload and the outsiders
| could load up"
| Hot with resentment. Schiff called
on Chairman Lockwood to make
Untermyer cease asking unfair
| questions. After he had admitted
| that the bank might both buy and
! sell the stock, the question that set
| off the fireworks was put to Mr..
Schin in these words:
syndicate is selling stock to the
public. with the other hand, it is
| buying stock from the public"
Schiff said this was not true be-
| cause the transactions were not
| simultaneous. and when the lawyer
we do not wash stock, and / resent
! that Implication"
"All these resentments, you know,
don't count" Untermyer remarked
The facts are what we are looking
| for
| Then put the questions in the way
SO that they are facts. and don't twist
| things, suggested the banker
Witness IL Warned.
"Mr. Chairman, you'had better warn
this witness that he is not in his
| banking Office" said the lawyer.
! And neither are you in your Office"
came the retort.
! Mr.. Chairman" continued the
| banker. Mr.. Untermyer is trying to
| put words in my mouth that we are
manipulating stock. and l will not 10
it. refuse to answer another QueS-
| ton"
! Then came the Jail threat.
| Mr. Untermyer twists words in
/ my mouth said the banker.
NO, ! canot get in your month"
| Mr.. Cntermyer assured him. rIf /
| could, I would close it."
! In moment they were at it again,
Untermyer insisting that the syEdi-
cate was a buying and selling one"
| and Schin agreeing that all syndi-
| Gates weoe of that nature, but that
purchases and sales were not made
at the same time.
You may have had experience in
| that way. but haven't" the banker
| said to the lawyer. II know Some
| thing about your transactions. I
| know you have a large interest in
Bethlehem"
Untermyef Courts Publicity.
I Don't tell me about your expert
ence or mine," Untermyer barked
| back. Il think I know yours and I do
| not think you know mine. If YOU
! think you know any Of mine, you are
! at liberty to state them now from the
witness stand and not dare make
| these contemplate insinuations."
II resent the word contemplate,
| They are contemplate because