New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-11-06


tell the date on which he had seen It. Mr..
Guthrie handed TO him copy Of the prospectus
and asked him 60 say what statements in il
were not correct.
Il should have questioned the amounts the
Tlants were actually earning" said Mr.. Nixon.
That cannot be accurately estimated"
Mr.. Nixon said that the security Ger the notes
OF the Trust Company OF the Republic consisted
OF the following securities Of the shipbuilding
company: S5.5c0.0cO in 3 per cent bonds Gace
value), S2,T5ooo0 in preferred stock Cpa- value)
and S5.500.oc0 in common stock Cpar value)-
These securities were sfterward taken over by
the Sheldon syndicate
Q.-wss 1t not the sheldon syndicate that fur.
nshed The funds by which the notes were '@ 1
up for which YOU were personally LIABLE. A-les.
C--When dd you begin TO appreciate that there
ment OF ei ;Sese notes. notes. A@when was Hot
sPnss rsSfysd feeBa s o me IS S at
once. When returned ATTENDED a meeting az
WAS called 20 my Endorsement on the notes. ! was
asked what l was COINS 10 DO SAID ihat , GIG
give Il back. This meeting was held after Mt;
Dresser went to Europe. told them that | GIG
not feel that wac personally responsible for The
notes, and explained my position, Later l was
sheldon syndicate TO certain securities ] was
notes called me and I signed
9t gog had been called upon to pay sb 5h9ss
have given what bad ! believe man should q 90
one who took those notes knew ] was not worth
o.-But the notes we're in small amounts and
were taken by different persons IN these small
more than / had
OWNERS APPRAISED PROPERTY.
Mr.. Nixon admitted writing letter on Au-
gust %. 1902. TO Mr. Livingston vice. president
OF the trust company. stating that the COM
bined shipbuflding plants worth $4,000
600, and that this estimate based on APP
praissls by eminent experts"
o.-who appraised the Bath company? A.-The
$50 the owners were the eminent experts who
aPprsseo their 9Sn prPPerg yse A0d yam
Naval Constructor Bowles and the Mayor Of Eliza
o.-who appraised the Union Iron Works at
s0.cooOeO? AM. FOger. an expert accountant OF
o-Mho apprsised the Canda company? AR
Young -. -. -. A. y
NOTING 1be co 9T Knew tba M Vas Young
had made exhaustive investigations, and still be-
heve that his estimates were eminently fair.
When Mr.. Nixon returned to the hearing a
few minutes after the end Of the recess. he made
his way hurriedly to the witness chair but did
not sit down Mr.. Guthrie looked up as If TO
put question. but Mr. Nixon did not wait for
it. Towering over Mr.. Guthrie and glaring at
him. he said:
when you started IN with this outrageous line OF
that personal counsel should be here with me to ad
wise me as &c my answers But that. felt. would
long time that IN this movement Of selhshness and
= reputable lawyer would make IL his business in
this to go back into my private affairs to bring
Il it is a discre6it for a man to have worked up a
sps aI1 trGI noSas i9T man 70 nave pull one
TO build one hundred ships-then stand discred-
of S1r OF my Smanr tba ur ana T h o
must know all about them. whereas have stated
them from memory only You asked about the
$4,000 was coming from Mexico and was overdue.
10 ascertain thai fact The item OF $40 coo was en-
tered as cash assets instead Of as bills receivable;
that was all
Mr.. Guthrie turned to Examiner Oliphant
and objected the witness being permitted TO
speak when not questioned, and asked that his
speech be stricken from the record.
Il must say. Mr.. Nixon. that I have found
nothing In the questions put TO you that was not
proper and we agree that the speech be stricken
out" said Mr.. Cntermyer.
INSPECTED THE BETHLEHEM PLANT.
Mr.. Nixon declared that he never had sold a
Shipbulding bond until July i of this year, when
he needed money. Up TO that time / never
sold a bond and never intended to sell any," 10
said.
Q.-Eave you ever sold any Of the stock? A
o-Then you stin have all the stock that was is
sued TO you? Al have, all that got for my
plant
Mr. Nixon said that he knew the officials Of
the Bethlehem Steel Company and considered
them expert steel men.
ODD you know that improvements had been
undertaken in the Bethlehem Steel plant prior TO
its acquisition by the shipbuilding company? A
L know there We're but what kind or what
amount cannot say.
Mr.. Nixon said he thought any improvements
that could be made in the Bethlehem plant ought
10 have been made. He went with party, in
Guiding r. Schwab. Mr.. Pam and others. on
tour OF inspection to the Bethlehem works. I'M
provements were suggested. and he agreed. as a
director OF the company. that they should be
made. These Improvements would cost $780,
oo0 he said.
And this was to be paid out Of the earnings
of the company from time TO time, was it not7"
asked -Ir. Guthrie
4 believe the provision was that the s., Soo.-
600 was 70 be financed by the company, unless
otherwise provided" answered the witness.
Mr.. Guthrie placed in evidence the report OF
the treasurer OF the Bethlehem plant made
April 30. 1908, and questioned the witness re-
garding many Of the items it contained. This
report showed accounts payable SsS9.036; ac-
counts receivable. $4,000 and cash on hand
and in bank. S26s.97
do you remember" he asked. that after the
application for a receiver for the United States
Shipbuilding Company you wrote letter to the
president OF the Bethle. n company asking him
10 declare dividend"
L DO" was the answer.
Mr.. Guthrie then read a resolution OF the
Bethlehem directors adopted June 30 last. say
ing ii was improper 20 declare such dividend
AMI asked the witness If he did not vote for the
resolution.
Mr.. Untermyer objected to the question. and
when his objection had been noted the witness