The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1903-11-10
LEWIS NIXON !
ON THE RACK
ATTORNEY ASKS POINTED
QUESTIONS
Concerning U. S. Ship
Building Trust.
TREWBLED WITH ANGER
TREMBLED WITH ANGER

As He Replied to Insinuations Of the
Attorney-"Is It Disgrace, Asked
Mr.. Nixon, "For Man to Start With
out Cent and Build Ship Yard?"-
Making Him Scapegoat.
New York, Nov. 5.--Aroused by the
merciless cross examination of lawyer
William ID. Guthrie, representing
Onas. M. Schwab. and the insinuations
that he held decisive the public in an
effort to float the bonds and stock of
the U. s. shipbuilding company, Lewis
Nixon, its former president this after
noon, declared at the hearing before
special commissioner Oliphant that
the lawyer was making a scapegoat
of him.
The hearing was held in the Office of
Guggenheimer, Utermeyer and Mar
SHALL counsel for the first mortgage
bond holders, who are seeking to have
permanent receiver appointed. All
during the morning Mr.. Guthrie had
bombarded Mr.. Nixon with questions
about how he had built up the Cres-
cent ship yarus from capital Of only
$4,000. His interrogations all bore
the suggestion that Mr.. Nixon dellb-
erately had given out false statements
Of the volume and earnings of the
plans purchased by the shipbuilding
trust
When Mr.. Nixon entered the hearing
room after the recess for luncheon this
afternoon, he was trembling with ex-
element He turned directly to Ex-
aminer Oliphant and said:
"Will you allow me to address few
remarks to Mr.. Guthrie?"
Mr.. Oliphant nodded his assent and
Mr.. Nixon said:
"Mr. Guthrie, l wish to address my
remarks to you. When you addressed
your outrageous and disgraceful re-
marks to me here this morning, it was
my intention to- havefmy personal
counsel with me. I see that this whole
thing is sprung out of selfishness and
greed, and for that reason you, rep
my early personal effort.
"Is 1t any disgrace for a man to
start without a cent and build up
shipyard? 1t is any disgrace to build
one hundred ships?"
IL see 1t ALL" Mr.. Nixon's voice
trembled with emotion. you are try
ing to make a scapegoat Of me-"
When Mr.. Nixon concluded Mr..
Guthrie calmly asked that Mr.. Nixon's
remarks be stricken from the record
which was done.
Mr.. Guthrie then resumed his cross
examination of Mr.. Nixon. He asked
therwitness whether or not he knew
that Charles M. Schwab's stock was
to have been sold first and he ans
wered that as he had not had access to
the books of Harris Gates and COM
pany. he could not say.
The line of questioning pursued by
Mr.. Guthrie was for the purpose of
showing that Mr. Schwab's plant
could not have rendered financial aid
to the wrecked trust.
When the ross-examination Of Mr..
Nixon was concluded, Mr.. Untermeyer
asked
"Are you familiar with the delicate
methods that can be employed by OFF,
ce.s of company when 1t does not
want to pay a divident?"
II have learned that in the last
year." said Mr.. Nixon, "a company can
tie up Its money by buying great
deal more supplies than 1t has any
need for. can 1t not?"
Eyes, and that is why the company
would have to borrow money and get
in debt have learned great deal
about manipulating finances in the
past"
Mr. Nixon testified that in his opin-
ion the Bethlehem company had no
more work In the year 1902 than In
1903. There was no apparent need of
investing sl,s00.000 In work on hand.
The Investment of this money obviat-
cd the possibility of the wrecked trust
getting any dividend from the Beth
lchem company.
Mr.. Untermeyer brought out. that
though Mr. Schwab owned the Beth
lehem plant and was president Of the
u. s. Steel corporation these concerns
competed as rivals for government
work. In fact. the homestead plant
was the Bothlehem's only competitor
on paper.
Mr.. Nixon in answer to further ques-
tions put to him by Mr.. Untermeyer
said that in addition to Mr. Schwab
James Gaylcy, w. e.. Cory. and w.
ID. Dixon, all officials of the steel
i trust, accompanied the party Of Unit
cd States shipbuilding officials when
they went to make an appraisal of the
Bethlehem plant for the purpose Of
vecom rnendinQ an expenditure fOv Inn