New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-11-25
CALLS SCHWAB'S OFFER A BRIDE
SHELDON PLAN FAVORED By NIXON AFTER AGREE
MENT TO TAKE CARE OF BONDS
Untermyer Tries Sho That j. P Morgan Co. Oned and Sold
the Bethlehem Steel Company

No. "A Broadway. Network. and 10 be
company, as designated by agreement issued by
the reorganization committee. Yours very truly,
c. NJ. SCHwAB.
Mr. Schwab.'O
Network. May &c, 1908
MI Joseph H. Hoadley New-York, n. Y.
Dear Sir Providing the United States Ship
building Company reorganization is perfected,
hereby guarantee to pay to your order $4,000.
amount Of payment which has beer made TO the
Sheldon syndicate on subscription of 500 900
made by Lewis Nixon also agree to have said
subscription placed to my account. and guar
antee to have a complete release issued to said
NIXON by said Sheldon syndicate.
CHARLES NJ. sCHwAB.
After the date Of these two letters did or did
not E1r. Hoadley try to get you to favor the
Sheldon plan?' asked Mr.. Unterrnyer
He said he thought it was for my interest TO
favor the plan was Mr.. Nixon's reply.
And you did write letter favorng the
plan?"
Yes"
Did you afterward refuse to avail yourself of
the offer made by Mr.. Schwab2"
Most assuredly."
Mr.. Untermyer then placed in evidence the fol-
lowing which Mr. Hoadley had written at Mr.
Nixon's request:
June IS. 1908
Charles NJ Schwab, New-Tork N Y:
1908: inasmuch as Mr.. Nixon has arranged TO
avail himself of these bonds, personally and I
am no longer concerned in their disposal 1 re-
main yours truly, JOSEPH H. HOADLEY.
| NIXON REFERRED DEMAND TO sCHwAB
Later it was brought out by the introduction
| of letters which had been exchanged between
Mr.. Nixon and Mr.. Schwab last September that
Mr. Nixon had referred TO Mr. Schwab de-
mand by the Sheldon syndicate for money on
Mr.. Nixons subscription Mr.. Nixon's letter
was dated September +, and was as follows:
Dear Mr.. Schwab; beg to inclose herewith
letter received this day from the United States
Shipbuding Company securities managers,
making another call on the subscribers this
agreement, as you agreed you would assume this
particular subscription In this particular in
stance, however, l do not ask that you should
assume the $4,000 already paid. but simply the
remaining subscriptions. and then divide the
/ securities which are represented by the total
cash paid in in proportion to the amounts paid.
/ Yours truly. LEWIS NIXON.
Mr.. schwab replied on September 10 as fol-
/ lows:
receipt of your letter of September 4, 1903. Ny
agreement was that upon the contamination of
/ the proposed plan of reorganization would ad-
vance the amount of any calls the syndicate
managers might make, and take the proportion
of the securities represented thereby. At
that time it contemplated that, with the Co
operation of all interests, the plan would be
I speedily carried through I never intended or
agreed TO increase my interests in the syndicate
or in the properties except upon the proposed
plan Of reorganization being successfully con-
summated
: In the mean time and in view of the opposi-
I ton now existing, see no reason why should
! modify the agreement l made. Yours truly.
c. NJ. SCHWAB.
/ Mr.. Nixon testified that the letter which he
/ had written approving the Sheldon plan after
the date of Mr.. schwabs letters to Mr. Hoadley
was written in Mr.. Hoadey's Office and had been
! sent by Mr. Hoadley to Mr. Schwab- He said
that he had objected to signing letter approx
/ ing the plan which had been prepared by Mr..
/ Pam for him to sign. so he had written another
! letter. expressing as much favor for the Sheldon
| plan as he could Asked by Mr.. Untermyer to
| explain his position, Mr.. Nixon said:
Mr. Hoadley said he saw no other plan than
! the Sheldon plan and that he was willing to do
! all he could to help AS to my proftins by
| the plan, it is perfect nonsense. would ra Their
! have the others tell the story
Before May IS how long had the reorganiza-
ton plan been under discussions" Mr.. Inter
myer asked.
About two months" was the answer.
Were you party to any Of the conferences
! with Mr. Sheldon"
a good deal of friction grew out of the fact
/ that was not consulted
Did Mr.. Pam or any one else discuss plans
! with you before the plan was perfected
| The first I knew of the plan was when Mr..
| Pam said he had a rough draft Of it
LIGHT ON TALK ABOUT SETTLEMENT.
! MI Nixon wanted to get in evidence a letter
4 which Mr.. Hoadley who has been i'll and is out
! Of the city, wrote 70 him November Is, when
] Mr. Hoadley was in Philadelphia The -etter
was not admitted, but it throws some light on
recent talk about settlement of the suit, and
/ Mr.. Nixon at recess gave copy of it. follows:
Dear Sir: Regarding my understanding with
/ Charles NJ Schwab TO plan OF reorganiZa-
| ton proposed for the shipbuilding company at
! the time YOU came to me in distress. | have TO
! saw that inasmuch I am at the present time
/ in II will be impossible for me 70 lend you or
Mr. Schwab any assistance in untangling this
unfortunate affair. / have sent you copies of the
| correspondence had between Mr.. Schwab and
/ rnvself which took place at the time was en-
desvoriue TO arrive at an aTnicG bic unGersta nd
! ing with him as TO whether he would pay his as
sassn7ent on the controlling exchange OF stock
he told me he held You understand that all Of
/ my, nropositions TO Mr. Schwab were based on
] the condition that Mr.. Sheldon would take
/ charge of the financial operation Of the deal.
"a eyer nov il YOU could disentangle this mat
ter and allow your stockholders right 70 go
in on the rgsnzation by paying a small as
Continued third page.