The Providence news. (Providence [R.I.]) 1891-1906, 1903-11-07
VIII Bo Put on Stand In Ship.
building Hearing Naxt Week.
SIxoN STILL on THE sTASD
Told Of Negotiations for Bethlehem Plant
and acknowledge June l4th Prospectus
Statements We're False.

New York, Nov 7.--Lewis Nixon was
again the sole occupant OF the stand at
the hearing yesterday afternoon on the
application TO make permanent the re-
ceivership OF the United States Shipbuild-
ing company. the session being marked
by frequent tits between counsel. at
times verging on personalities, Mr.. Guth-
RE and Mr.. Untermeyer each making the
fattest of denials OF statements made by
the other. and Mr.. Guthrie speaking in
addition OF the "impertinence" of Mr..
Untermeyer.
Mr.. schwab. who is next to testify. was
not reached as a witness. He was an
interested spectator.
Mr.. untermeyer spent the afternoon In
examining Mr.. Nixon about the alleged
TO the public during the preliminaries to
organization.
Mr. Untermeyer took up the redirect ex-
animation of Mr.. Nixon. asking nrst
about the agreement made between Mr..
Nixon. Mr. Dresser and Mr.. Schwab for
the purchase OF the Bethlehem plant.
Mr.. Pam. Mr.. Nixon said, had charge OF
the negotiations thereafter. and Charles
Pam is was regarded as the dominant
TsS IN mos she of ~. pspers drawn up
few being prepared by Mr. Alexander OF
Alexander a Green.
CONFIRMED DRESSER.
Tho endeavor OF Mr. Dresser and Mr..
Nixon to raise funds for the fiotatian OF
the company when IL became evident that
the French underwriting would not ar
rive the consultations with Mr.. Pam and
the subsequent meeting with George r.
Perkins at the office OF j. p Morgan q
Go. were discussed. Mr.. Nixon's testi-
mony confirming that of Mr.. Dresser on
the same subject.
Next Mr.. Untermeyer embarked In a
long course of questioning about the
working capital OF the company, finally
making MIR. Nixon admit that the com
pany had not on hard at it's office on
July 81. 1903. working capital of $1,50S,oo0, |
as stated In the application for listing |
the Shipbuilding companys stock; that
instead ii had but $4,000. and that bor- |
rowed. and that the s1.5o0.000 was not
deposited TO the credit OF the company |
until Sept. 5 and was then raised on |
personal note signed by Nixon and
Dresser. the cash being deposited by |
the Trust Company of the Republic, half
with Harris, Gates & Co, and half with
other concerns. and by these concerns
loaned TO Nixon and Dresser on notes
indorsed by the Trust Company OF the
Republic. Mr.. Untermeyer endeavored
unsuccessfully to get from Mr.. Nixon
something to show who suggested Har-
ris, Gates a. Co, I'm connection with this
transaction and the marketings of the
stock. but Mr.. Nixon said he did not
know personally. having left these de-
tails to Mr.. Dresser Mr.. Dresser, ne
understood. had consulted Mr.. Pam about |
them.
ADMITTED THEY WERE FALSE
The suggestion that Mr.. Schwabs stock |
should be marketed first came first from |
Mr.. Schwab. he said.
hn afat In he ..f
June IL were then taken up and Mr.. |
Untermeyer extracted from the witness |
acknowledgements that number OF them /
were false. The capitalization of tx |
company, the names OF the directors, the |
amounts of earnings of the constituent |
companies and other details wera nc
knowledged 20 have been erroneously |
stated to the public in the prospectus. but |
Mr.. Nixon disclaimed all responsibility
for it's preparation. He had ut the lime !
criticised the statement IA AZ that tho cCm- |
panies were then earning 2.2s5.O00 Per an
mum because IL was not actIal earnings |
but estimated earning capacity In con-
bination.
Former attempts TO form a shipbulld-
ing combination were then made tho sub
ject OF inquiry. Mr. Nixon stating in
answer TO a. question as 90 the number OF
such attempts:
Three. two unsuccessful and one sue.
cessful.''
(which do you consider the success
ful one, the last7" Mr.. untermeyer asked.
In this line OF inquiry a possible rea-
ron why the Canada plant had been In
rluded In the consolidation which Re-
reiver Smith considers a mystery was re-
ferred to Mr.. Untermyer asking II IL had |
not been included In a former scheme |
10 induce Coils p. Huntington then be- |
ng heavily interested in both.
next Tuesday after dispute between Mr..
Guthrie and Mr.. Untermyer over the dates
Tor continuing the hearing. Mr.. Guthrie
directly contradicting a statement of Mr.
untermyer. who retorted with equal fiat
ness.