Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-11-24

Before the hearing it was arranged
that the adjournment tonight should be
for two weeks, on account of engage
ments of Mr.. Nixon and W. d. Guthrie,
counsel for the company. Both Mr.. I'm
termyer and Mr.. Guthrie declined to
make any statement about the reported
negotiations for settlement
Affairs of the Bethlehem.
On the resumption of the redirect eX-
animation Mr.. Untermyer again took MI.
Nixon over the affairs of the Bethlehem
Steel Company and its connection with
the shipbuildng company.
Mr. Nixon declared himself ignorant of
affairs of the Bethlehem Steel Company
before it's acquisition by the Shipbulldlng
company, having made no investigation
thereof and having relied upon the re-
ports of the accountants.
Referred to the Minutes.
For matters since that time he Sener-
ally referred Mr.. Untermyer to the min
utes of the meetings, declining to TESTIFY
to matters of record, and in regard to the
listing of the shipbuilding securities he
adhered to his previous attitude, that he
had left this to Judge Gary and Mr.. Pam,
who, he stated, had complete charge of
the matters.
In this connection Mr.. Untermyer en-
barked on a long course of questioning
about the relation of the Shipbuilding COM
pany and the constituent companies when
the several plants and their assets had
been leased back to the constituent COM
panies after the Incorporation.
Tried to Get Statement.
He endeavored to get from Mr.. Nixon
a statement of the ownership of the assets
of the constituent companies under these
circumstances. Mr.. Nixon said that he
was unable to speak with authority on SO
1ioa tod int nf
he had no opportunity to consult the
leases.
The leases were sent for.
Mr.. Nixon was then caused to relate the
steps he took in opposition to the Sheldon
when an assessment on the
stock of the shipbuilding company was
suggested to him by Joseph Fl. Hoadley
and he and Mr.. Hoadley endeavored 10
persuade Mr.. Schwab to consent to this
plan.
Described Himself as an Amateur.
During this relation Mr. Nixon described
himself as IAN amateur in the business"
and then Mr.. Guthrie objected to the whole
statement Mr.. Untermyer said he had
no objection to striking out Mr.. NiXons
reference to amateuriSm.
Mr. Untermyer offered in evidence two
letters from Charles NJ. Schwab to Mr.
offering to purchase certain stock
and bonds OF the shipbuilding company.
l.
bonds referred to were those given him at
the formation Of the company, in case the
Sheldon reorganization plan was agreed to.
Mr. Guthrie Objected.
Mr. Guthrie Immediately objected to these
letters, but Mr.. Un1ermyer declared 1t
relevant as showing that 'Mr. Schwab
bribed, or attempted to bribe, the president
of the shipbulding company to agree to
plan of reorganization which he had pre-
viouSly objected to-"
Mr.. Untermyer thrice repeated this state
ment about attempted bribery, and finally
secured the admission of one of the letters.
the authenticity of the other, copy, being
unproven. The letter was as follows:
Mr. Schwab's Letter.
NEW YORK, May 26, 1893.
Joseph H. Hoadley, New York, N. Y:
Dear Sir: Providing the United States
reorganization is perfected
hereby guarantee to take and pay for
$1,000 Of first mortgage bonds of the
United States Shipbuilding Company, 25,OOO
shares of preferred and 2o.O0O shares Of
common stock, for the sum of $4,000, plus
interest on said bonds, on or before Decem-
Der l, 1903.
said bonds and stocks to be deposited
with Messrs Mcintyre & Marshall, "A
Broadway, New York, and to be exchanged
for securities of the reorganized company,
HS uSSlSudtcu ny AGREEMENT Issued Dy the
committee.
VERY truly yours,
tSigned) &C. NJ. SCHWAB."
Involved Others" Says Nixon.
After the date of these letters did or did
rot Mr.. Hoadley get you to accept this
plan?" asked Mr.. Untermyer.
Mr.. Nixon explained in answer that Mr.
Hoadley advised him to consent to the
Sheldon reorganization because Mr.
Schwab had refused to accept the assess
ment plan. and that he (Mr. Nixon) had
thereupon written a letter recommending
the Sheldon plan.
LAS to my deriving any profit from the
that is nonsense" said Mr..
Nixon. "The transaction concerned others,
and l prefer that they should tell it,
Matter of Additional Compensation.
Mr.. Untermyer took up the matter of the
additional compensation demanded by the
Trust Company of the Republic for it's
services, and witness testified to the is
suance of IS coo additional stock at the
reorganization.
OF this stock 1t was brought out that
Max Pam obtained 81 $1.000,0OO. Mr.. Nixon
and Mr.. Dresser 81 ,00o,000 each and the
Trust Company of the Republic 81 100000
Mr.. Nixon said he did not know what
disposition was made of the other million.
..Did Mr.. Schwab get it?''
II do not know"
Swiss Minister Arrives