Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-12-09
MADE MILLIONS.
More About the ShipbuiIding
Trust Manipulation.
Schwab Seems to Have Been the Man
to Make Big Money.
While the Original Owners Of Plants
Are Left Out.

New York, Dec. S.-Lewis Nixon
was again on the stand at the re-
sumption Of the United States Ship
building rcceiverSnip hearing, today.
Samuel Cntermyer continuing the re-
direct examination with questions
about the ability of the Shjpbuilding Co.
to have continued it's business without
the Sheldon reorganization plan. MIR.
Nixon declared that if the Bethlehem
90. had paid dividends the Shipbuilding
Co. could have gone on.
What was the cause Of the collapse
of the Shipbuilding Coz" asked Mr..
Unternycr.
1.-THE suits which your clients start
cd" answered Mr.. Nixon. but Mr.. I'm
termyer, unsatistied, made him admit
that the PRONUNCIATION of the Sheldon
reorganization plan was u confession OF
insolvency.
so far as you know, was there any
one who was willing to trust the Ship
building Co. after the Sheldon plan
came out on May IS, 1903, and before
this action was begun on June 10, 1903 -
Mr.. NiXon's reply was no"
A copy of a letter from j. A. Nc
Gregor, an accountant. to Mr.. Nixon.
dated April II, was at this point intro
duced iii evidence. 1t gave a statement
OF the condition Of the Shipbuildings
Co. at that time.
MI Nixon was then asked about the
earnings of the subsidiary Companies
since the receivership and said that the
Union Works had during the year
earned about $550,000.
Jlnf
he had finished with Mr.. Nixon, and
c. c. Deming, one of the counsel for the
company. took the witness for n short
REORGANIZATION, George w. Per-
k:ns of the firm of J. p. Morgan s, Co.
being notified that he would be wanted
in az hour.
MI Deming's examination was brief,
the chief point brought out being that
the plan for the formation of the Ship
building Co. and the proposals of Pro-
moter John W. Young were the sub
ject of frequent and careful dellDara'
ton between Mr.. Nixon, Mr.. Young. Mr..
Dresser, Mr.. Deming (as member of
the firm of Alexander & Green) and the
various vendors of subsidiary plants be-
fore the plan was adopted and the conf
pany fully launched Mr.. Nixon consul
ering himself fullyi Informed of the ma
turc of the plan. 1t was also brought
out that Max Pam had never received
the 81 .O0O, 900 in stock allotted to him at
the tinla of the increase of the capital
ization. Nj. Guthrie then took the wit
ness stand. 1t was decided that Mr..
Perkins would not be called unth a1ter
recess.
Mr.. Nixon identified q NUMBER OF
documents and papers IN the case
which were introduced i'll evidence.
Mr.. Untermyer had some more cues
tons for Mr.. Nixon, asking MN ABOUT
the $1000,0O0 stock set aside LOT ME.
Pam and the $4,000 salary voted Fam
as chairman of the executive commit
tee of the Shipbuilding Co. Mr.. Nixon
became quite angry at line OF ques-
tioning aiming to bring out that ne
was a co-partner with Young in the
formation of the company and that
part of the price paid him Tor the
Crescent yards was really his pro-
motcrs profits.
Questions about money borrowed by
the Crescent yards before the forma-
ton of the company to meet pay rolls
and paid back by the United States
Shipbuilding Co. afterward, also irri-
tated Mr.. Nixon and he became more
excited when Mr.. Untermyer asked
him if the Crescent yards had ever
been anything but a burden to the
Co. since its acquisition.
He admitted that the Shipbuilding Co.
had put into the Crescent plant sew
eral hundred thousand dollars more
than it has obtained from it. CUES
tons and answers came so rapidly that
Mr.. Guthrie had to interpose to enable
the stenographer to catch up. Taking
up the matter of the $1.000,000 work.
ing capital of the Shipbuilding Co., MIR.
asked Mr.. Nixon if he had
discussed his testimony on this SUBJ
ject with anyone representing the de-
PENDANT company since the previous
hearing.
Mr.. Nixon said he had talked with Mr..
and the tone Of Mr.. Untermyer's
appearing to intimate that
Mr.. Nixon had been coached by the de-
fence on this point, counsel on both sides
and the witnesses entered upon a warm
of remarks, at the close OF
which Mr.. Nixon was excused and the re-
cess taken.
Before Mr. Perkins took the stand after
the recess, Mr.. Untermyer served notice