New-York tribune., 1922-06-09
lockwood Probers Rule
He Has No Right to Re-
fuse Data in N. Ameri'
can Isl Million Merger
Faces Term in Jail
Unless He Yields
Mortimer L. Schiff Forced
to Answer Untermyer's
OuestionsD DespiteProtest

n.,,-r,ued that the public shall
-. ,v,rv fact underlying the con-
-,,.op Of the three-company steel
80, into the s25i,oOo,ooo North
-, steel company, the Lockwood
latte, Yesterday held Thomas l..
r..sAour,e. the lavyer-promoter Of
:. undertaking. in contempt because
80, ,,,ussl to produce certain data
-.sh Samuel UnteFmyer, the com
-.,.s', counsel deemed important to
TIE inquiry. -.
p. sesry Is niisdemeanor. II
,,-v;.,sd NJ. chadbourne will face
.,,r IN ,an. The lawyer, however,
-. been riv,n an opportunity 70 free
,-,.r q TIE contempt charge by the
,,osg,,ior this morning Of the docu-
msr.s demanded.
NJ chsdbourne and Mortimer l..
s.siF. member Of the banking firm Of
ysb.. Loeb & Co., who was the other
,iirss Of the day, presented, in other
ypscts. q decidedly different attitude
t.u that taken BY them on their pre-
,,us appesrance on the witness stand
l.., week. They we're less inclined TO
withhold information requested and
rr,duesd papers and documents which
th,v had declined 10 submit last week.
VI Chsdbourne's action was one Of
ihs few EXCEPTIONS.
s,hia Denies Firms Obligation
IN, Of the outstanding developments
Il Yesterdays hearing was the insist
e5es Of Nr. Schif that, despite adver-
f,sd statements. that Kuhn. Loeb e.
Il tage agreed 20 act as bankers for
,hs plan and that the new company's
stock was being dealt IN on the curb on
when nsyed" basis, his firm was
r,ser no 6ication, either moral or
lsrsi. 70 back the syndicate proposed
q, fssing the money 10 put the deal
Ar.sgh. In point OF fact, he said, he
tii -ra agreed 20 anything that the
I'm ru under no commitment what
rg sni that be- didn't know what he
y, gtss % sa about II.
Nr Intern z another Effort
70 draw from NJ. schih the detans on
how The stock 20 be issued by the new
company was 70 be marketed. In this
connection Il was brought out through
The testimony Of the banker that there
had been no independent valuation OF
the three properties-the Midvalc steel
snd Ordnance, the Inland and the Re-
public Iron and Steel companies-in-. d.
volyed in the combine. except that OF
're and coal lands. and that the bank
rg firm took the valuation OF the vari-
'ss plants as IL has been given by the
i.her companies.
With regard to this point an exhibit
-y introduced showing that the three
orranies lost si1.500,000 in 1921. II
I'd recalled IN this connection that
the same year the United States
bel Corporation had made profit OF
y non. 900 on business OF $685.
n .0eO.
Merger 20 Cut Trusts Advantage
NJ Chadbourne asserted that the
.Urer was projected for the purpos.
4 reducing the advantage Of 50 70 -
ton which the United States Steel
csrporstion had over independent con-
urs. and thus correct a situation
wherein. he said, the independents
rtfe existing solely by the suftcranoe
Of the corporation. In the admins
,ra,ive and sales reorganization alone
pircident with the merger there WILL
v saving g at least 81 a ton' ne
rssried
W. Schia Immediately upon resum-
rg stand. was asked by Mr.. Unter-
ryr FOR the various documents which
h5 hsen demanded of him last week
tli which he had declined TO produce
R, ,1sn took them readily from his
rsttst and handed them over 70 the ex-
iriaing counsel. They purported to
contain the complete record OF the
'arsetlons between the three com
TaaiW and Kuhn, Loeb & Co, begin:
tl1g with the initial agreement OF
Eiy q, 1921, when the first dehnite
SEP vis taken pertaining to the pro-
posed ,ombne.
Other papers we're the combined bal
fccr4iru.s an nsoe fourl