The Birmingham age-herald., 1903-11-25
Hearing of United States Ship building Company Resumed
 in New York Yesterday
CHARGES OF BRIBERY ARE
 MADE BY MR. UNTERMYtR
Claims Large Sums of Money Were Offered Nixon to Agree to Sheldon Plan of Reorganization Instead
 of the Assessment of Stock.

New York. November 2i-After a series of postponements consuming nineteen days, which gave rise to rumors that a. settlement was being arranged. the hear ing in the proceedings to make perma- nent the receivership of the United States Shipbuilding company was resumed here today The attendance was scarcely half as large as at previous hearings Charles M. Sehwab, formerly one of the regular attendants, was not present though rep resented by MT. Pam. his personal coun- sell Lewis Nixon was the first witness today His redirect examination was con dueted by Samuel untermyer counsel for the bondholders
 Before the hearing 1t was arranged that the adjournment tonight should be for two weeks on account of engagements Of MT Nixon and W. D. Guthrie, counsel Tor the company. Both Mir. Untermyer and MT. Guthrie declined to make any statement about the reported negotiation for a settlement
 Mir Nixon declared himself ignorant of the affairs of the Bethlehem Steel conn h. building company having made no'inves- tlgation thereof and having relied upon the reports of the accountaf matters since that time he gen terred MT. Untermyer to the II the meeting, declining to testif, ters of record, and in regard to of the shipbulding securities.
 Was an Amateur.
 Mr. Nixon was then caused the steps he took in oppositia Sheldon reorganization when a ment on the stock Of the shl comDany was snggcsed to him II. Hoadlcy and he and MT. Ho deavored 10 persuade Mr Sc consent to this plan, During tion Mir. Nixon described himso amateur in the business" and then MT. Guthrie objected to the whole statement. Mir Untcrmyer said he had no objection to striking out Mir Nixon's reference to "amateurism"
 Mr untermyer offered in evidence two letters and from Charles M Schwab to MT HoadleY. offering to purchase eer- tain stock and bonds of the shipbuildng company. Mir. Nixon admitted that the stock and bonds referred to were those given him at the formation of the com pany in case the Sheldon reorganization plan was agreed to. Mr Guthrie immedi- ately objected to these letters but Mr. tntermyer declared 1t relevent as showing that MT. Schwab bribed or at tempted to brlbe the president of the ship building company to agree to a plan of re- organization which he had previously ob- jeeted to-"
 MT. untermyer thrice repeated this statement about attempted bribery and fi- nally secured the admission of one of the letters the authenticity of the other, a copy being proven. The letter was as fol- lows:
 schwab's Letters.
 New York. November 2G 1903 MT Joseph H. Hoadley. New York
 Dear Sir Providing the United States Shipbuilding reorganization Is perfected [ hereby guarantee to take and pay for slO0.000 of first mortgage bonds of the United States Shpbuilding company 1000 shares of preferred and 25,O00 shares of common stock for the sum of S90,0Oo, plus interest in said bonds on or before Deeem- Der l. 1903. Said bonds and stocks to be deposited with Messrs Mcintyre & Mar shall. 7i Broadway. New York and to be exchanged for securities of the reorgan- ized company as designed by agreement issued by the reorganization committee.
 ,
 (Signed) C. M. SCHWAB The second letter, which was later atii- mltted as evidence s as follows:
 New York. May 26. 1903. Mir Joseph Hoadley, New York
 Dear Sir-Providing the United States Shipbuildlng company reorganization is perfected, I hereby guarantee to pay to your order Sl0000. amount of payment which has been made to the Sheldon sym dicate on q subscription of s100.000 made by Lewis Nixon; I also gree to have said subscription placed to my account and guarantee to have complete release issued to said Nixon by said Sheldon syn dlcate.
 CHARLES M. sCHWAB. After the date of these letters, did or did not MT Hoadley get you to accept this plan?' asked MT Untermyer.
 MT. Nixon explained in answer that Mir. Hoadley advised him to consent to the Sheldon reorganization because Mir. Schwab had refused to accept the as- sessment plan and that he. Mir. Nixon. thereupon had wrote a letter recommends ing the Sheldon plan.
 "As to my deriving any profit of tho transaction. that Is nonesense' said Mir. Nixon. ''The transaction concerned oth- CTS and I prefer that they should tell it."
 Divided Up Money.
 NIT. lHttfHFti lboh up tNe mattef or the additional compensation made by the Trust Company of the Republic for it's services. and witness testified to tho issuance of s5OO0.0O0 additional stock at the reorganization. Of this stock 1t was brought out that Max Pam obtained one million. Mir. Nixon and MT. Dresser s1,- OOo000 each and the Trust Company of the Republic S1.000000
 Mir. Nixon said he did not know what disposition was made of the other mill lion.
 Did Mir. Sehwab get it?'
 "l don {, know"
 MT Nixon testified that he wrote his letter of June s. 1905, to MT. Sohwab be- cause of Mir Schwab's agreement to take up the bonds for which he (Nixon) had A letter of John w Young. dated May IS, l903 to Mir Schwab was then offered in as evidence. The Bethle- hem company. the witness testified had