New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-11-11
TALK OF A SETTLEMENT.
Nc5c Shipbuildiag Reorganization
Plan Reported.

The illness of Charles c. Deming. of the law
firm of Alexander & Green, who is associated with
w. n. Guthrie as counsel for the United States
Shiphuding Company, was given yesterday as
the reason for another postponement of the
hearing before Mr.. Oliphant. the special exam
liner in the suit Of bondhoders for a permanent
receiver of the company. The hearing was to be
resumed Mt the office of Guggenhemer, Inter
myer & Marshall. at No. so Broad-st.. at IL a.
m, but when Mr. Oliphant arrived at that hour
he was informed that by agreement of Mr.. I'm
termyer and Mr. Guthrie there had been a
postponement to II a. II. tomorrow.
1t was said that Mr.. Deming not seriously
i'll. There was no intimation by counsel on
either side that the hearing was to be discon-
tinued altogether. although prominent interests
in Wall Street are said to be moving to that end,
having become disturbed by the exposures OF
high finance in the testimony of d. lie Roy
Dresser and Lewis Nixon about the organization
ard promotion of the shipbuiding company. If
the hearing is resumed tomorrow Lewis Nixon S
testimony will be continued, and there is reason
TO expect that Samuel Untermyer will bring out
some new and interesting facts concerning the
promotion OF the company.
A missing page of the commitment paper
which John w. Young. the promoter OF the ship
building company, left with Mr.. Nixon along
with q power of attorney when he went to
France 10 solicit underwriting for the com
pany's bonds. has been found, and it is expected
that Mr.. Nixon viii be asked 10 identify it as
soon as he resumes his testimony. The names
of persons to whom Mr.. Young had agreed to
give blocks of the shipbuilding stock in further
ance of the promotion plan, appearing on the
hitherto missing page. are said to be well known
in Wall Street. There is also to be placed in
evidence with MT. Nixons identification, an
agreement by which the sale OF the Bethlehem
Steel Company to the Shipbuilding Company
was carried out. This agreement it is said.
lQT hOyE fhor1 CCt,r
the Bethlehem stock to the shpbudng COM
pany. furnished S7,20O0O0 in check which
Endorsed by Dresser and Nixon and Immediately
turned over to J. 2. Morgan & Co Nixon and
Dresser have said that they had the check in
their hands only long enough to indorse It, 1t
Is believed that the agreement to be put I'm
evidence viii show that Mr.. Schwab received
many millions in shipbuilding stock for the
temporary use of his check for ST.2O0OOO. in
addition to the SIOOO0OnO I'm bonds which.
counsel for the bondholders say fully paid
for the Bethlehem stock.
Although the counsel on both sides in the
hearing are silent on the subject, there are re-
ports In Wall Street that the hearing in the
Shlpbuilding case is TO be kept in allegiance long
enough TO permitthe preparation Of a new plan
for recognizing the Shipbuilding Company or a
basis that would be satisfactory to the bond
holders If a reorganization that would satisfy
the bondholders and protect their interests were
put forward 1t Is said. the present suit for n
permanent receiver might be withdrawn, and
there might be an end the unpleasant dis
closures which the legal fight for a permanent
receiver has precipitated.
r. HoS pCcll lHtIIIdIlOHS IIldJ CnarleS NJ.
Schwab and his attorney, Max am will not he
colled to testify in the hearing until many other
witnesses have been heard, although they have
been attendants at recent sessions with the ex-
pressed desire to have the opportunity to tell
what they know about the Shipbuilding Com
pany- 1t has come to be open secret that the
counsel for the bondholders intend to make the
situation as bad as possible for Mr. Schwab be-
1ore ne is allowed to give his side of the case
DlStrlct attorney Jerome said yesterday that
he had not detailed any assistant to attend the
ohpoulldlnS hearing or 10 examine the tes-
umony taken at the HC-rng. While he has read
the newspaper accounts with interest, he has ar
rived at no conclusion regarding the need for
MN 10 inquire If the law violated in the
promotion of the Shipbuilding Company, he says