Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-11-07
NIXON ON STAND.
Still More Of the Shipbui|ding
SwindIe Exposed.
S',5os, 1000 Working Capital Claimed
Had $4,000 and That Borrowed.
Sharp Tits with Almost the Lie Passed
by Counsel.

New York, Nov. 6.-Lcwis Nixon
was again the sole occupant of the
stand Ut the nearing, this afternoon,
on the appilcatlon to make permanent
the receivership of the United States
SnlpbuIldlng Co, the session being
marked by frequent tits between coun-
sci. ut times Verging on personalities,
Mr.. Guthrie and Mr.. Untermyer each
making the --LATEST denials of state
mcnts made by the other, and Mr..
Guthrie speaking in addition OF the
''impcrtil,encc"' of Mr.. Untermyer. MI.
Schwab was not reached as a witness.
Mr.. Cntermyer spending the afternoon
in examining Mr. Nixon about the al
legged false statements and misrepra-
sensations to the public during the pre-
liminarieS to organization.
During long examination as to the
ownership of stock and certain alleged
measurements of fact, Mr.. Untermyer
referred to the change of front made
by Mr.. Guthrie in crosses examination,
yesterday, causing a sharp verbal in
terchange. Mr. Untermyer remarked
that it WAS charged in the complaint
that the company was insolvent and
Stt lli.tt liiC iSul CoullScl III liz Noiip-
building Co." had been endeavoring to
demonstrate this, and when Mr.. Guth-
rie denied that this was his purpose,
he said that otherwise "Mr. Guthries
purpose was too deep for him to
fathom.
The cndcavor of Mr.. Dresser and Mr.
Nixon to raise funds for the flotation
of the company when it became evident
that the French underwriting would
not arrive. the consultations with Mr..
Pam and the subsequent meeting with
George L. Perkins at the office of J. +.
Morgan & Co.. were discussed, Mr..
NiXon's testimony confirming that OF
Mr.. Dresser on the same subject.
Next Mr.. T.ntermeyer embarked i'll a
long course of questioning about the
working capital of the company, finally
making Mr.. Nixon admit that the COM
pally had not on hand at it's office on
July 81, 1903, Il working capital Of ST.
SOB 900, as stated in the application for
listing the ShipbuildinG Cos. stocks.
that instead it had but $4,000 and that
borrowed and that the $1,500,O0O was
no deposited to the credit of the COM
pany until Sept. S, and was then raised
On personal notes signed by Nixon and
Dresser, the cash being deposited by
the Trust Company of the Republic,
half with Harris, Gates & Co., and half
with other concerns, and by these con-
Germs loaned to Nixon & Dresser on
notes endorsed by the Trust Company
of the Republic.
Mr.. Untermeyer endeavOred unsuc-
cessfully to get from Mr.. Nixon some
thing to show who suggested Harris.
Gates & Co. in connection with this
transaction. and the marketing of the
stock, but Mr.. Nixon said he did not
know personally, having left these de-
tails to Mr.. DRESSER. Mr.. Dresser he
understood. had consulted Mr.. Pam
about them. = ~
The suggestion that Mr.. Schwab's
stock should be marketed first, came
first from MIR. Schwab. he said. The
statement in the prospectus of June II,
were taken up and Mr.. Untermeyer ex-
tracted from the witness acknowledges
ments that Il number of them We're
false. The capitalization of the COM
pany the names of the directors the
amounts of earnings of the constituent
companys and <Othcr details were ac-
knOwedged to have been enormously
stated to the public in the prospectus,
but Mr.. Nixon disciaimed all RESPONSE
blity for it's preparation. He had at
the time criticised the statement in it
that the companies were then earning
1929. 900 per annum because it was not
actual earnings but estimated earnings
in capacity in combination.
Former attempts to form ship
building combination were then made
the subject of inquiry. Mr.. Nixon stat
ing. in answer to a. question as to the
number Of such attempts:
'Three, two unsuccessful and one
successful"
Which do you consider the success
lul one, the last?" Mr.. Untermyer
asked.
In this line of inquiry a possible rea-
son why the Canda plant had been in
cluded in the consolidation, which Re-
ccivcr Smith considers mystery. was
referred to, Mr.. Untermyer asking if
it had not been included in a former
scheme in 1901 to induce Coils p
Huntington to join the combination
with the Newport News shipbuilding
plant. Mr.. Huntington then being heav-
ily interested in both.
The hearing was then adjourned un-
ill next Tuesday. after q dispute be-
tween Mr.. Guthrie and Mr.. Untermyer
over the dates for continuing the hear
ing, Mr. Guthrie directly contradicting
statement of Mr.. Untermycr, who
retorted with equal flatness. Mr.. Guth-
rie said something about 1.-The imperti-
ncnce to which he had been exposed
in Mr.. Untermyer's Office" but the ar
arrangement for three sessions next week |
was made peaceably