The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1903-11-27
TRIED TO ERlBE NIXON.
Schwab Offered to Buy His Stock at a
Big Advance.

New York, Nov. 26.-Testinony of a
sensational nature was introduced at
the United States shipbuilding hear
ing, which was resume today. oun
sci for compliments brought out, on
the examination of Lewis Nixon, the
statement that of IS, 10000 additional
stock issued when the shipbuilding
company was r~eorganized to take in
the Bethlehem company. $1,000, 900 went
to Max Pam, Schwab's counsel; $1,000,-
300 each to Nixon, Dresser and the Trust
Company of the Republic, leaving
81, 200, 900 the disposition of which Nix
on did not know.
It was also brought out thai at the
time the Sheldon reorganization plan
was under consideration, Schwab Of
fered to purchase 500, OG0 of bonds,
with the accompanying bonus of %, 1000
shares of common and $4,000 shares of
preferred stock issued to Nixon, for
$50, 900; while the market value was far
less than this. Counsel Untermeyer
made the direct charge that this was
in the nature of a bride to induce Nix
on to agree to the Sheldon plan of re-
organization instead of the plan for
assessment of stock which he had pre-
viously advocated. The offer was shown
in two letters of Schwab to Joseph H.
Hoadley, copies of which We're intro
uuCed IN evidence.
Nixon on the Stand.
After a series of postponements, IN
Stunning nineteen days, which gave rise
to rumors that a settlement was being
arranged, the hearing in the proceed
ings to make permanent the receiver
ship Of the United States Shipbuilding
company was resumed today. The at
tendance was scarcely half So large as
at the previous hearing. Charles NJ.
Schwab was not present, though rep
resented by Max Pam, his personal
counsel.
Lewis Nixon was the first witness.
His redirect examination was con-
Quoted by Samuel Untermeyer, counsel
for the bondholders, who again took
Nixon over the affairs of the Bethlehem
Steel company and its connection with
the shipbuilding company.
Mr.. Untermeyer offered in evidence
two letters from Charles NJ. Schwab
to Mr.. Hoadley,j offering to purchase
certain stock and bonds Of the ship
building company. Mr.. Nixon admitted
the stocks and bonds referred to We're
those given him at the formation of
the company in case the Sheldon re-
organization plan vas agreed to. Mr..
Guthrie Immediately objected to these
letters.
The Schwab Letter.
Mr.. UnterIneyer declared it relevant,
as showing that Schwab bribed, or at
tempted to bride, the president of the
shipbuilding company to agree to the
plan Of reorganization, which he had
previously objected to. Mr.. Untermeyer
secured admission Of one of the let
tiers, which follows:
New York, May &c, 1903.-To Joseph II.
Hoadley, New York.-Dear Sir: Provid-
ing the United States Shipbuilding reor-
g~anization is perfected, 1 hereby guaran-
tee to take and pay for 100000 of first
mortgage bonds of the United States
Shipbiulding company, 5.0C0 shares of
preferred and %, 600 shares of common
stock, for the sun of $50, coo, Plus interest
on said bonds, on or before December l,
1908; said bonds and stocks to be depos-
tied with Mcintyre e Marshall, New
York, and to be exchanged for securities
of the r~eorganized as designated
by the agreement issued by the recragn-
ization committee. Very truly yours,
(Signed.) c. M. Schwab.