The Montgomery advertiser., 1903-11-07
 INCORRECT Misleading Statements Contained in It. LEWIS NIXON so swEARs Was Designed to BambOozle : the Public.
 President of the shipbuilding Trust
 Continues His Testimony and
 Exposes Workings of |. the Combine.
LEWIS NIXON so swEARs

New York, Nov. 6.-Lewis Nixon re- sunied the stand at the hearing in the United States shipbuilding receivership case this afternoon. Mir. Untermeyer took up the redirect examination of. the witness, asking first about the agreement made between Mir. Nixon, Mir. Dresser and Mir. Schwab for the purchase of the Bethlehem plant. MT. Pam. Mir. Nixon said had charge of the negotiations thereafter and Charles M. Schwab. whose personal counsel Mir. Pam is regarded, was the dominant figure in the negotiations. Mir. Pam prepared most of the papers drawn up, few be- ing prepared by MT. Alexander of Alex ander and Green.
 Mir. Nixon declared that when the mort gage covering the plants of the ship building company outside of the lBethie- hem plant was drawn up at the time of the organization he had merely gianc- cd at 1t. but had not read 1t through Having confidence In the men who prepared it and being without ex- pert knowledge of mortgage forms. The second mortgage covering the Bethlehem plant and 8 second mortgage on the otf- CT plants were also merely glanced through by him and he had only a gem eral knowledge of the provisions. know ing. however. of the provisions of the bonds provided for by 1t should have equal voting power with the stock.
 Presented for Execution.
 The two mortgages. ne believed. were presented to him for execution the first by Alexaander & Green. the second by Mr. Pam, in each case, he thought by the men executed them.
 During a long examination as to the ownership of stock and certain alleged misstatements of facts, Mir. Untermeyer ~mA~s k. q. Mir. Gutherie in cross-examination yester. day. causing a sharp verbal interchange Mr. Untermeyer remarked that It waa charged in the complaint that the com pany was insolvent and yet the s'reai counsci for the Shipbuilding Company -seen erdeavoring tos demonstrate Ar. ,untermsser enabarked in ions series of questions about the working capital of the: company. finally making MT. Nixon admit that the company had not. on hand at it's office on July 3l, f9oe q. working capital of $1,5oS.oOO. as stated In the. application for listing the, Ship building Company stocks: that instead. 1t had but 5000 and that borrowed, and that H'500.OOO was not deposited to the credit of the company until September 5. which was raised on personal notes sign cd by Nixon and Dresser, the cash be. ing deposited by the trust company of the Republic. half with Harris, Gates & O.. and half with other concerns, and by these concerns loaned to Nixon and Dresser on notes endorsed by the Trust Company of the Republic
 Untermeyer Unsuccessful.
 Mr. Untermeyer endeavored unsuccess- fully to get from Mir. Nixon something to show who suggested Harris, Gates and Company in connection with this transac- tion and the marketing of the stock but Mir. Nixon said he did not know per- sonally having left these details to Mir. Dresser. The suggestion that Mir. Schwab's stock should be marketed first came first from Mir. Schwab. he said.
 The statements in the prospectus of June IA were then taken up and Mir. Un. termeyer extracted from the witness ac- knowledgments that a number of them were false. The capitalization of the company, the names of the directors, the amounts of earnings of the constituent companies and other details were ac. kowledged to have been erroneously stat. ed to the public in the prospectus, but Mr.. Nixon disclaimed all responsibility for it's preparation. He had at the time criticised the statement in. 1t that the companies were then earning S2. 2.2250 per snnum because 1t was not actual earn ings. but estimated earning capacity in combination. Former attempts to form shipbuilding combination were then made the subject of inquiry, MT. Nixon stat ing in answer to question as to the number of such attempts: -,
 Three. two unsuccessful and one suc- cessful."
 (Which do you consider the successful one, the last?" Mir. Untermeyer asked.
 The hearing was adjourned until Tues day next.