The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-10-16
fHR .. S. SHIPBUnDInG CASE.
THREE ORIGINAL DIRECTORS
TELL WHAT THEY DIN.
One Of Them Rather Harry About the GeeE.
rsphy Of the Enterprise Nixon shown
10 Re Party TO the Mortgages He'll
He witness Next "wednesday.


10 Re Party to the Mortsases
He witness Next "Wednesday.
The Efforts OF the complaining bond
holders in the United States Shpbulding
case TO show that the mortgages given to
secure the bond issuea, with which the
plants of the subsidiary concerns were
purchased. were illegally voted by dunn
my" board OF directors, were continued yes
terday in the inquiry now going on before
a United States examiner in Samuel Inter
myers Office.
just before the hes ring ad journed Lewis
Nixon, who is alleged to have been one
Of the promoters Of the scheme and who
sold his plant TO the company, was called
to the stand and sworn as a witness. His
testimony. which will begin at the next SEES
sion next Wednesday, is expected to lie a.
important 70 the compliments case os
that Of y. lie Roy Dresser.
1t WA Mr.. Nixon who, with Dresser, bought
the Bethlehem company from Charles NJ
Schwab. and the complaint nts arc expect
ing him to corroborate much of Mr.. Dres-
ser's testimony and give information
as to the amounts the vendors got for their
plants,
Frederick Seward, Horace Gould and
Kenneth Mclaren, the incorporators and
original directors Of the shipbuilding COM
pany. who served for three months, said
that AZ employees OF the Corporation Trust
Company of New Jersey they frequently
acted as incorporators.
Seward, VINO was secretary Of the original
board, said the trust company was the
New Jersey office for $50 corporations. MIR.
Untermyer got him to admit that ne and
his associates had merely voted forms lily
on documents Ia nded to them, and then
asked him ii he WAS not what was known
as a dummy director.
IL was temporary director, If that is
what you mean by dummy" replied The
witness, who then rather tangled himself
up by trying to show that he knew a lot
anou. the matters he mad votel on
He assert ed that bis IL 81 rGCtions wei e 10 Use
his discret ion.
The nearest young Seward could come
to locating the Harlan Il Hollingsworlh
where on the eastern coast Of the u ed
States He said he knew they made
ships. -
myer.
Because I've seen the plate on Hudson
River Steamboat, replied the Witress, while
laugh went around the room. The Beth
lehem company, he thought, was IN Home
ct cad, Pa. Seward kept on insisting
however, that he knew that the yards in the
list presented for his formal acti made
ships and supplies and were good plants
10 acquire,
Seward would not answer the quest ion
whether he would have ed away si7l,-
OOO 900 Of securities irste cad of s7l 10000
In the SAME manner. When Mr.. Guthrie,
he was acting within his rights, Mr. INT er-
mver said he would ask the Court TO pun ish
the witness for cont e,npt.
~Then you are not familiar with the pro-
cedure," said Mr.. Guthrie.
Not, perhaps, 80 familiar as yo,l are wit h
all matters within the range Of human
knowledge said Mr.. Untermyer, sar-
cast ically
Seward said he had been asked by Mr..
Deming of Alexander L Green to be an
incorporat or and director.
Young Could, another clerk had more OF
a record as an incorporation. He said he had
served AZ such for over hundred concerns.
Mr.. Mel iren didn't know who asked
him to become an incorporation, He 10
secretary Of the Corporation Trust Com
pany OF New Jersey.
Mr.. Guthrie. for the defendants. had
Seward identify his signature on the min
utes ard had him show that he and Lewis
the mort cages That was the ext ent Of his
cross examina, ion.
Mr. Untermyer cont ends that the New
Jersey laws prescribe that direct ors shall
be we'll informed as TO the affairs of their
ron m nies