New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-23

l Ichcm en- plant 1 che capital increased from
Q.-And Mr.. Schwab was allowed Si0.oOo.ooo? A.
o.-And what became of tho additional 5000 .co??
At was sent to the Trust Company OF the he-
public for promotion
Q.-Before the money was borrowed did you con
fer with Mr.. Pam and Mr.. Dresser about the trans
Morgan " '''0''' ''' ''e ''''e0
QGWere you informed what was being done
about underwriting in Paris by Mr. Young? A
Yes, through the Trust Company of the Republic
Mr.. Nixon told of Mr. Dresser's efforts to OBJ
tain money, and said he succeeded in raising
$4,5oo,Ooo. He said Mr. Perkins said he would
deposit it in financial institutions and then
Mr.. Dresser could borrow it.
o---Did you sign any notes at that time? A.
signed for over s4.Oooco on the strength Of the
French being snn Won wen.
notes for $40 900 that the French underwriting
from Mr. Young. went on the notes to help the
Trust COMPANY OF the Republic vos
S-it was then a new institution A.. a. ESQ.,. es.
.Q-And that was its first big financial tansac-
Q-You had nothing to do with financing the
United States Shipbuilding Company? Al had not
In his cross-examination by Mr.. Guthrie Mr..
Nixon made a long statement of his reasons
for favoring the shipyards combination He
said that small and large vessels could not be
built economically at the same yards. and that,
in bidding. the Crescent yards were forced to
enter in a throat cutting contest with the Bath
yards. He also spoke of centralixng the opera
lions OF the constituent companies and making
profitable changes at the Bethlehem plant.
Have you any doubt that the combined
plants would prove profitable II they had suffi-
client working capital?' he was asked.
II have not he said
Mr.. Nixon was next questioned about a pros
pectus issued on January %, 1901, and Endorsed
by him. 1t included the Newport News yards
and the project, the witness said, had the in
dorsement of Rear Admiral Bowles, then Naval
Constructor.
]. W. YOUNG'S COMBINATION.
GIN that prospectus the Union Iron Works was
OF the combined plants was placed at s5,coo.eoo?
..Q.-And you considered those valuations at that
tme far fair and aeceRtabls? Al did; tho
promotion Of this e9mbnatop? ALThey did but
5so, followed the Northern Pacinc panic In MAY
Of the panic some of hs 5gners soTatohed
,Q.-Is it not a fact that it was through the
efforts 5ro of John Young that that combination
o;-And you were named as one of the directors
Q-And Mr.. Canda was another? Ayes.
Mr.. Untermyer objected to the introduction
Of the prospectus of 1901, saying that the COM
pany never materialized, but Mr.. Guthrie sue
ceeded in establishing the fact that the state
ments which it contained as to the value of the
different plants were similar to those made in
the prospectus of the United States Shipbuilding
Company. Mr.. Guthrie then rested for the day
The hearing viii be resumed this afternoon at
o'clock, and after that session there will be a
weeks adjournment.
Mr.. Schwab said that as his wife and family
were i'll he most anxious TO get through
with his examination and tell all he knew Mr.
Untermyer said that sickness in his family
would excuse Mr.. SchWab and also that the
law firm had other business which required at
tention. Mr.. SChwab left the room with the
understanding that he would not be called 10
testify until week after next at tn earliest.