New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-23
SAYS SCHWAB DEFEATED PLAN.
LEWIS NIXON DECLARES HIS SCHEME FOR STOCK
ASSESSMENT MOULD HITE SfVED THE COMPdNY
Signed Notes for Strength of j. w. Young Reports Of
Paris Underwriting Negotiations.

.,-,,es AZ Nsxon,s direct examination for more
than three hours, and Mr.. Nixon was under
cross-exanination by W. II. Guthrie couhsel
for the shpbuilding company and ChaTles NJ
Schwab when adjournment was taken 10 TINS
afternoon. As the ex-president OF the shipbuild-
ing company, Mr.. Nixon declared that he hao
opposed the plans Of the Sheldon syndicate tor
reorganizing the company. and had urged plan
Of stock assessment for tiding the company
over its troubles but that ii had been defeated
by Mr. Schwab.
II was brought out in the testimony that there
had been a wide discrepancy rs 20 the esti-
mated earnings OF the shipbuilding company
about the time the Sheldon syndicate was
formed. and incidentally Mr.. Nixon gave his
views as 10 the values OF the shipping plants
and his reasons for believing that a combination
az shtpvards would have been successful IL the
ronnanv had been supplied with proper work
ing capital
charles NJ Sch1sab. who was again at the
hearing in company with Max Pam. his attorney
listened 10 all Mr.. Nixon had to say and was
mainly anxious TO go on the witness stand Al
the end OF the days session, when MT inter
,ryer spoke OF putting the hearing over from TO-
dav 20 week after next Mr.. SchwsD SAID Win
tears in his ewes. that he wanted 10 have his
examination over with as soon as possible De
caase his wife was i'll Mr.. Untermyer indi-
,..as however that he would not be ready 10
cau Mr. Schvab to-day. and told him that ne
would have the opportunity 10 spend whole
week with his family before taking the witness
chair.
Mr. Nixon. IN his testimony, told some add
,iousl facts about his connection with John w
Young the promoter Of the shipbulloinS colh-
many. telling how he held Mr. Young's power OF
attorney. and acted for him when Mr.. Young
ms IA paris irving TO get French underwriting
ING Ia al
the hearings daily, looking worn and anxious.
74a IS a son OF the late Brigham Young, and he
ms ,n Paris when his son William Hooper
Young murdered Anna Pulitzer. in this city
William Hooper Young was allowed TO plead
guilty. and was sentenced 10 life Imprisonment
II Was = mart Of Mr. Nixon's testimony that
he signed with Mr.. Dresser notes for S4'ocV!ooo
TO help raise money 10 start the shipbuilolis
company. depending on the success OF MI
Youne's search for French underwriting Tor the
rs,rnent Of the notes. and he referred 10 mes
sages which have been received from MI houilg
and c r. Alexander in Paris as to the progress
Of the negotiations there. one Of Mr.. AleXan-
derss messages has called from Morgan, Har5es
4 Co. in Paris a protest against Mr.. Alex
gnder,s references TO the banking house and MI
Alexander has sent message of apology ask
ing the Paris firm TO suspend judgment until IL
receives letters which have passed between MN
and Mr.. Morgan on the subject.
The reouest however. has not prevented the
banking firm from sending out statement
that Il refused TO have any dealings with Mr..
Young or TO aid him in obtaining French under
writing for ShipbuIding bonds. Mr.. Young had
been engaged in other negotiations in Paris
When Mr.. Nixon resumed his testimony be-
fore Mr. Oliphant. the special examiner, in the
Office Of Guggenheimer. Unterrnyer q Marshall.
at No 30 Broad-st.. Mr.. Untermyer first took
Cd the failure TO hold meetings Of the Ship
building directors in May and June Of this year,
asking:
oFooHinS these attempts on }9ur Part IT. 70 get
j failed to get a quorum until that fact was pub
lished in the newspapers. That was after the ap-
ho@After these dsficulties what did you DO? A
Dgnsd S qe ss TO se eST tha quorum T4o Ss
letter, sending a copy TO each Of the other d.
Q~Did YOU write to Mr.. schwabc Ale was
not director.
EXHAUSTED ALL PLANS To GET MONEY.
The letter was placed in evidence. i was
dated June 10 and read follows:
Dear Sir: have endeavored 10 secure meeting
o. ne ro S, o. b .. Ins eSpaly several
quorum. This being the case, beg 10 inform you
eject July J. 1908 at which date the reorEanizaton
plans should become operative and the control pass
7 am not personally in accord with the policy OF
taking work and making bids having been
disreEarded In matters pertaining to the practical
business must hS;e certain liberty Of action
ana a. ], Is ,eLoe tn5t no suoe n6eTjy can De
from the peculiar circunst OF the situation.
Very truly. LEWIS NIXON.
Asked what Re meant by saying he was mot
personally in accord with the policy Of the reor-
gsnization committee Mr.. Nixon replied:
The reorganization committee represented a large
number of the securities OF the company ] felt
but had no access 20 me workings OF The com
mittee. Mr.. Pam was the only one who took any
trouble 10 give the least nformatiOn 10 WHIST
being done carry the company on. II was
DID The best could to get It, there was no way
81 getting money from the constituent companies
that there were debts Que, and at the meeting of
It e ,oio q Tie oiIeeloTs thst $1,000 was due
ProNioec mat TIC money would be forthcoming.
the company 50 I could meet me bond iss'i. - on
seiy 4 ~ ! hao been allowed 10 do that things
o-Ihe treasury had some money? A-Yes
acquisitions An some cases by using bInds as
collateral Tor loans cannot tell al the plans that
rleans knew Of: bat could get no money '-7
s T6oey2 o " =; SsFy exhaust an means to
Q-what talk 90 YOU have viii, Mr. schwab
oSn f 9 s - saa M Pam ana told them
,o-Dd you ceyise The recrg4nizaiion plan2 A
he should insist that his bonds for the Reibib ao
stee. plant become the FIRST mortgage bonds ta9.,
sheraton moneys TO be adVanre5 IN con S2I-
The whole plan OF reoT organization YVES based 1,no-
Q.-what was said IN the talk with NJ scb,yo,,
about tins PLAN Al told him that some o9 ,h
bondhoders would object and some of inc o. me
Odd you object 20 the plan yourself? a
had lot of contracts on hand: the inte.esis Of
ne Gompsny DEMANDED ,hat consider myself last
Owe ere interested 10 i1n0w exactly what you