The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-10-23
Nixon Unable to Explain n Mysterious
Check of s25O,oOO Drawn 10 Him.
self cor OurseIves.-
CLAIMS OF HEINZE UPHELD IN THE
MINNIE HEALY CASE.
Boston and Montana Company En-
Joined from Merging with ANAL
gamated-AI Plants Closed.

NEW YORK. oct. Z2.-Lewis Nixon oc-
cupied the witness chair again to-day at
the hearing before an examiner of the
United States Shipbuilding case and gave
much valuable testimony covering the
finances and general affairs OF the corpora
ton. He testified that he had opposed the
Sheldon reorganization plan and had as A
counter proposition urgeL that the stock
be assessed in order TO raise the amount
necessary 10 save the combination from de-
fault and bankruptcy. His plan OF assess
ment was opposed by Charles NJ Schwab.
holder at that time of s20Ccc,OOO of the
stock, who, according TO Mr.. Nixon, de-
clared that the stockholders would not pay
the assessment Mr.. Schwab, so Mr. Nixon
swore, declined 10 put up any more unless
the Bethlehem bonds were given preference
as lien upon the shipbuilding plants 10
the first mortgage bonds.
Mr.. Nixons testimony also developed the
fact that there was a wide discrepancy as
to estimated earnings in letters written by
Treasurer Gary 10 members OF the reor-
ganization committee, and Samuel Inter
myer, counsel for the bondholders. asked
If il did not show that there has been an
attempt TO minimize the value of the ship
yards ana magnify the value OF the Bethle-
hem plant, but the witness would not
say so.
Much time was taken up with an unsuc-
cessful effort 10 get at the history Of a
mysterious check for $zS0,0o0 found at the
Trust COMPANY of the Republic. IL was
uraWn 10 Lewis Nixon ourselves" on
the same day the checks were made out
Tor the payment Of the cash given To tho
vendors for their plants and property. Mr..
Nixon swore that he had never seen the
check before and that he knew nothing OF
its history. Both sides dsclaimed knowi-
edge of its history and the destination or
the amount OF money for which il was
drawn, and the only explanation offered
from any source that IL had been
made out by mistake and had simply been
put through the banks by the Trust Com
pany OF the Republic. The effort To get the
history of the check will be renewed later
in the hearing.
Mr. Cntermyer i'm his efforts to-day 10
trace the mysterious check, produced first
the memorandum covering the payments
TO be made TO the vendors which was fur
nished 10 the Trust Company of the Re-
public. IL bore no names; simply a list OF
amounts; Mr. Nixon identified il and said
amounts and indOrsed them over. The
sum of 100000 in cash, s4.450,co0 in bonds
and $4.coo00 in each KIND Of stock were
given 10 the vendors. Two checks amount
ing. respectively. TO $3.50. 900 and $50 900 were
given in payment for the Harlan Hollines-
worth property, two checks for $4,000 each
were paid TO G. w. Morse and G. X. Hans
com for the Eastern Shpbuilding Company.
eight checks for s1s7. 400, $4,000. $500. sISs.
$4,000, 100000. $4,000 and sl9S.s67 were paid
for the Crescent and More properties; four
checks for $4,000 and $4,000, $4,000 and
$4,000 were given for the Bath iron works
and = the s7l HYDE G Wipdess Company one shsck
man for the Union iron works and three
checks for $s7yOO0 $1,000 and $4,000 were
paid for the Canda property. These checks.
with the mysterious one for $4,000. totaled
s6.250.0o0. Mr.. Nixon insisted, however. that
he had paid over but $6oOO.00o and had never
Endorsed nor seen the check for $250000.
Mr. Untermyer wanted to know il the
Trust Company OF the Republic was not re-
sponsibe for a stated sum OF money after
s60O0.000 had been paid for the plants and
sI5OO,ooO reserved for working capital and
the witness said he presumed IL was, but
he had not asked IL for an explanation OF
the funds which il had.
Mr. Untermyer tried 10 establish by the
witness that the Canda Manufacturing
Company had retained its automobile and
launch engine plants and after the transfer
mad continued manufacturing on it's own
account. Mr.. Nixon did not know what tie
company had done after the trans
fer fer but saie Would hat show ne soms onaers,ood
ervation OF property. He said that
he mad opposed the purchase OF the Canda
property when Promoter Young talked OF
including IL in the combination.
Mr. Nixon testified that he knew as early
as last April that unless the combination
could get some money from the Bethlehem
property or elsewhere IL must fail and
warned his associates on the directorate
that they must husband resources. II was
brought out on cross-examination that the
share of promotion profits set aside for Mr.
Schwab, OF which Mr.. Nixon told, had
never been paid. None OF the commit
ments account of promotion were paid.
so Mr.. Nixon testified
The hearing will go on tomorrow after
noon and with the close will probably Oe
adjourned for ten days on account OF en-
gagements OF counsel. This Adjournment
probably will prevent the taking OF testi-
mony of Messrs Schwab and Pam until
some time week after next