Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-10-22

Lewis Nixon, president of the Emitted
States Shipbuilding Co.., was not called
to the stand to testify at the Opening
of today's session of the inquiry into
the affairs Of that corporation but in
stead Charles Canda, who was presi-
dent of the Cauda Manufacturing Co..
was the first witness.
Il. Mr.. Canda testified that the company
which bore his name and which was
taken over by the Shipbuilding Co. had
a plant at Carteret, N. j., designed for
thcSconstruction of car wheels. At the
time the option on it was given it was
engaged, he said. Tin an experimental
way making some motor vehicles. - He
said 30 or 40 men were employed at the
time and thatEhe thought 100 or more
machines had beef made.
The witness produced a copy of the
option. Thefagreeinent for the sale of
the plant of $f.100.000 was made with
J. w. Young; but The option was given
to Mr.. Nixon. 80
The witness said the plant did no
shipbuilding but The, plant and build
ings had been useasfor certain COM
binations of work. The Canda 90. re-
III
bonds 100000 in preferred stock and
100000 in common stock and paid no
commission to anyone. The witness
said the Canda Co. had never shown
any earnings.
Under CrOSS-cXamination the witness
testified that the 100000 received in
cash was used to pay certain indebted
ness The sum was paid in three
checks.
At this point james +. HILL counsel
for the Trust Company of the Repub-
lie, produced the checks. One was for
100000. another for $4,000 and the
third for $4,000. These checks were
made payable to Lewis Nixon endorsed
by him and then handed to Mr.. Canda.
Lewis Nixon succeeded Mr.. Canda on
the stand. He told of his resigna ton
from the Cramp Shipbuilding Co., and
the leasing of the Crescent shipyard
from the Moores in 1924 He held the
latter until it was turned over to the
shtpbuilding combine. He held the
Crescent yard under the lease but at
the same time he had bought and built
n new plant. He purchased all of the
Moores interest finally and turned il
over to the Shipbuilding Co.
The witness then told of the first at
tempts to consolidate the shipyards in
1891 Andrew Freedman was the man
who first proposed the combination he
said and through him the witness met
]. w. Young. The companies in the
first proposal were the Union Iron
Works. Rath Iron Works. Hyde Wind
lass Co. Crescent Shipyards. Newpor.
News. The Canda Co.. L. NJ. Moore &
Sons and the Reaches.
The witness said the first plan of con-
solidation was handled by H. w. Poor
& Co., but was brought out on a bad
day and failed.
The witness said he knew c. NJ
Schwab. having met him four years
afgo. They met frequently in social
way and Schwab told him of the pur-
chase by him of the Bethlehem Co
Schwab had at the request of the wit
ness acted as an underwater IN the FIRST
effort at consolidation There was nc
proposal that the Bethlehem Co. be
taken into the first combinatiin The
first direct proposal that the Bethlehem
Co. be purchased by the United States
Shipbuilding Co. was made in June
1902.
The witness then told of the meeting
at the Lawyers Club IN June 1902, al
ready detailed by d. Leroy Dresser
The witness and Dresser were lunch