The Caucasian. (Clinton, N.C.) 188?-1913, 1903-12-03
OFFER Of A BRIBE.
Sensational Tesiinosy 10 fassss So
BuiIdiss Seasdal
now 81, 900. 90, sIOCk IS DIVIDED
rsixoa Says lie Aftes~srd Rseeo-
useadrd Shsidoa Pian ossss rsss
timony.

e. New York. spcclal-Tes;incny q
n sensational nature was Introduces
:, the United States ship building
hearing which Was resumed Tuesday
During the course OF his redirect sx-
animation Of Lewz Nixon. prc<asent
OF the Shipbuiiding Company. M.
Untsrmeyer. counsel for the cornplsin-
au:s. brought out from Siroa The
statement that OF the sS.ooo.oeo sd-
ditionAl stock issued when the eoo-
pany waS re-orgAnlred TO take Beth
chem Company. 100000 went TO
Max Pam. Mr.. SchwAb's counsel. and
81 900 600 each 20 Mr.. Nixon. M
Dresser and the Trust Company Of the
Republic. leaving 3i.ooo.oco. the dis
position of which he did not konv. He
did not know wh.ther Mr.. Sehvab OBJ
tained a. IL Was also brought out that
NJ the time the Sheldon re-organisar
ton pLln was under oonslderatfon-
Mr.. Sch Rab offered 10 purchase Sloo.-
600 bonds, with the accompanying
bonus OF %. 900 shares common. anc
e5. 600 shares preferred stock. issucd
TO Mr.. Nixon for $50. 900. while tas
market value Vas far less than this.
Mr.. Untermeyer mailing the dinsct
charge that this was in the nature of
a bribe TO induce Mr.. Nixon TO agree
20 the Sheldon plan OF rcorganiIafion
| instead OF the plan for an asscssment
| OF stock. which he had previously 90
voca.ei.
The offer WAS shown In two letters
OF Mr.. Schwab 20 Jos. II. Hoadiey.
dated Nav 2s. 1903. copies OF which
were introd"ced in evidence. Mr.
Hoadley. II has testified. had con-
Quoted the negotiaticsls with hr.
Schwab. when Mr.. Nixon was en-
deayoring TO persuade SchSab TO &C
cete TO the assessment plan and hao.
after the proposal. urged Nixon 20 &C
cede 90 the Sheldon plan. Nixon said
that at Hoadley's request be had doDs
SO.
The latters are as follows:
Provided the United States Ship
Building reorganization is perfected
hereby guarantee 10 take and pay for
800 600 OF first mortgage bonds Of the
United States Ship Building Company.
q. .O0Oo shares OF preferred and 5000
shares OF common stock. for the sum OF
$50. 900, plus interest on said bonds. on
or before December I. 1909. Said bonds
and stocks TO be deposited With
Messrs Mcintyre Marshall. "a Broad
way, New York. and to be EXCHANGED
for securities OF the re-orBanissd
company. as designated by agresmsot
Issued by the reorganization commit
tee.
lsigned) &C. NJ. sCHwAB-
Providing the United States Ship
Building Company re-organization 10
perfected. ! hereby guarantee TO pay
to your order $40. 900. amount OF pay
ment which has been made 10 the Shell
don syndicate on q subscriptions OF
800. 900 made by Lewis Nixon. ] also
agree to have said subscription placed
TO my account and guarantee TO have
q complete release Issued by said
Nixon. by said Sheldon syndicate.
(SIgned) &C. NJ. SCHwAB."
After the date OF these letters ala
or did not Mr. Hoadley get you 20 &c
cept this plan?" asked Mr.. Inter
meyer.
Mr.. Nixon explained In answer that
Mr.. Hoadley advised him 90 consent 70
the Sheldon reorganization because
Mr. Schwab had refused 10 accept ths
assessment plan and that he (Nixon)
had threreupon written q letter recon-.
mendlng the Sheldon plan.
"As 10 my deriving any pront from
the saction. that is nonsense" aid
: Mr.. Nixon. The transaction concern
ed others and prefer that they should
: tell it."
Mr.. Nixon testified 20 writing 20 Mr.
Schwab later and obtaining from him {
letter conhrmatory OF the proposal "a
the letter or May 20 10 Mr. Hoadley
Mr.. Schvab's letters stated that thl
proposal was contingent upon the sao
cess OF the Sheldon re-orgznlxstiol
= plan and Mr.. Nixon said that be thsl
let the matter drop.
e Witness said. In reference 20 IN
= Sheldon plan. that be felt greatly ir
o ritated" because he though tne presi
= dent OF the ship yards company ha
: not been consulted. and reiterated hi
! statement at the previous hearing. tha
e bis only knowledge OF the reorxnnisa
Ion plan had come from conversssion
A with Mr. Pam