New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-11-25

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special examiner in the suit for permanent re-
ceiver of the United States Shipbuilding Com
pany was made yesterday when Samuel Inter
myer. of counsel for the complaining bond
holders, caused TO be produced letters which
Charles NJ. Schwab wrote on May 20 last agree
ing to take Oft Lewis Nixon's hands. at 80, bonds
which Mr. Nixon had subscribed for, and pay
$4,000 of Mr.. Nixon's subscription of SlOO,eoo.
In a heated argument with w. D. Guthrie, of
counsel for the shipbuilding company, over the
admission of the letters, Mr. Unternyer declared
openly that there had been attempt by Mr..
Schwab to bride Mr.. Nixon. as president of the
company TO agree to the Sheldon reorganization
plan after MI Nixon had declared his oppos-
ton TO il.
Both letters Of Mr.. Schwab on the date men
toned were written to Joseph H. Hoadley, who
had been negotiating for Mr.. Nixon, and as MI
Hoadley was not at the hearing toTdentify them
when Mr. Untermyer proceeded TO read one OF
them Mr.. Guthrie declared with warmth:
You are trying to give publicity to this letter
before it is proved or identified"
1T is offered Mr.. Untermyer rejoined. hotly'
s.to prove that Mr. Schwab tried to bribe the
president of the shpbuiding company 70 adopt
the reoreaniza ton plan which he had refused TO
agree to It was bribery. pure and simple
Is it a part of your idea to show that the
brihe was accepted and the goods delivered?'
asked Ny Guthrie with sarcastic emphasis
Are YOU trying TO besmirch your own Wit
ness?"
Mr. Nixon. who was in the witness chair
flushed angrily. and Mr.. Untermyer replied NO.
we are merely going to show Mr.. SchWaos con-
nection with this matter. and you'll find It per
tinent enough after while
MR.. sCHwAB NOT THERE
NJ sc5vab was not at the hearing yesterday,
b,,+ \, Pam. his attorney. glared at Mr.. Tn
+ern7ver as if he would like TO take him by Inc
throat. The air in Mr. Untermyers law library
where the hearing continued yesterday
seemed surcharged with electricity tor uihe
As other letters were being placed in evidence
Mr.. Untermyer offered, with a show OF polite
ness. to get a copy for Mr.. Guthrie OF one MI
Guthrie said he had not seen
oh never mind. I'll read it in the news
naners. Mr.. Guthrie said. with the tone of ad-
ministering rebuke
.eyou NAV. after the formality of offering II
in evidence" Mr.. Untermyer rejoined, adding:
It have seen letters of yours in the newspapers
which were not subjected TO that Formally.
Apparently they were given overnight
Mr. Untermyer," Mr.. Guthrie said loftily' l
am in your Office. and did not come here to be
insulted
Mr.. Guthrie, ! never provoke an assault:
only defend myself" was Mr.. Untermyer's reply
Leading I'D to the Introduction Of the Schwab
letters Mr. Nixon testified that he had given
his assent to the Sheldon ganization plan
after Mr.. Schwab had refused to adopt stock
assessment plan which had been outlined by
Joseph H Hoadley. Mr.. Hoadleys action was
taken. Mr. Nixon said. after the letter of Nav
Il last in which Mr. Nixon wrote to Mr..
Schwab
referring to the suggested plan of reorgani-
cd ShiDbuil0i1E
many. AS outlined by you TO me yesterday morn
ing beg to say that after careful study and
conference I cannot see my way clear 10 APP
prove of the plan I think it best for you TO
advise those who have been acting with YOU of
this decision
Pam had written me q letter" Mr.. Nixon
continued, and had discussed the Sheldon plan
with friends. They advised me that l was not
wise if I went on with the plan under discus
sion l was anxious to solve the difficulty, as
1 didn't want the first mortgage bonds cancelled.
7 talked with Joseph H. Hoadley. who offered
n underw-rite 81 100000 of the 100000 cash
csnitaI needed He told me I'd better take the
matter UP with Mr.. Schwab took Mr.. Hoad-
lev TO see Mr. Schwab and later Mr.. Hoadley
asted me TO come to see him, and he told me
he thought he making progress in raising
the So. 600 900 by assessment. adding that he in
tended 10 see Mr.. Schwab again. He did see
.bs+ Mr. schwab had refused to agree to an
.esessr7ent plan-refused. even, to change the
sheldon plan in any way
Then. Mr.. Nixon said, Mr. Hoadley had made
an arrangement with Mr.. Schwab for the pro
taction of shipbuilding bonds, which Mr.. Hoad
,e,, had an interest in. At the time Of the ne
oo+;ations Mt Nixon saia that ne had obligated
bir,self 10 turn over TO Mr.. Hoadley 100000
On first mortgage bonds and 250 shares each of
the common anc preferred stock Of the COM
pany
This was the amount you had taken up on
July - 1902"
Yes"
Had the securities greatly deprecated at
the time the plan Of reorganization came out?"
Yes"
scHwAB's LETTERS TO HOApLET.
Mr.. Unternlyer then offered in evidence the
two letters of MIR. Schwab to Mr.. Hoadley' OF
which the following are copies:
New-York May 20 1905.
Mr. Joseph II. Hoadley. New-York, \ j. CO.,
Dear Sir: Providing the United states oIllP
building reorganization is perfected, l heISpy
guarantee TO take and pay for Slooooo OF nIst
SSortpore bonds of United States Shipbullding
Conpany $1,000 shares of preferred ana -
600 shares of common stock, for the sum Oh
$40 600 plus interest on said bonds, on OF peloIe
Decemher 1903 Said bonds and stock 10 pe
derosited with Messrs. Mcintyre q Naisna'i'