The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-11-24
SCHWAB NOT THERE.
ShipbuiIding Trust Hearing
Has Been Resumed.

New York, Nov 24-After a series
of postponements consuming nineteen
days, which gave rise to rumors that
a settlement was being arranged, the
hearing in the proceedings to make
permanent the receivership of the
United States Ship Building company,
was resumed here today. The attend
ance was scarcely half as large as at
previous hearings. Charles NJ. Schwab,
formerly one of the regular attendants.
was not present, though represented
by Max Pam, his personal counsel.
Leeds Nixon was the first witness to-
day. His redirect examination was
conducted by Samuel Untermyer, coun-
sci for the bondholders.
Before the hearing it was arranged
that the adjournment tonight should
be for two weeks. on account of en-
gagements of Mr.. Nixon and w. D.
Guthrie. counsel for the company.
Both Mr.. Untermyer and Mr.. Guthrie
declined to make any statement about
the reported negotiations for a settle
ment.
On the resumption of the redirect ex-
animation Mr.. Untermyer again took
Mr.. Nixon over the affairs of the
Bethlehem Steel company and its con-
nection with the ship building COM
panv.
Mr.. Nixon declared himself ignorant
OF affairs of the Bethlehem Steel COM
pany before its acquisition by the Ship
Building company, having made no in
vestigat ton thereof, and having relied
upon the reports of the accountants.
For matters since that time he generally
referred Mr.. Untermyer to the minutes
of the meetings, declining to testify to
matters of record, and in regard to the
listing of the ship building 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 connec-
ton Mr.. Untermyer embarked on a long
course of questioning about the relation
r1f ~
constituent companies, when the several
plants and their assets had been leased
back to the constituent companies after
the incorporation, endeavoring to get
from MI. Nixon statement of the own
erShip of the assets of the constituent
companies under these circumstances.
MI. Nixon said that he was unable to
speak with authority on so complicated
point of law, especially as 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 reorganization, when an assess
ment on the stock of the Ship Building
company was suggested to him by JOS
eph H. Hoadley, and he and Mr.. Hoad-
ley, endeavor to persuade Mr.. Schwab
to consent to this plan. During this re-
lation Mr.. Nixon described himself
AN amateur in the business and then
Mr.. Guthrie objected to the whole state
nent. Mr.. Unternlyer said he had no
objection to striking out Mr.. Nixon's
reference to amateuriSm.
Mr.. Untermyer offered in evidence
two letters from Charles NJ Schwab to
Mr.. Hoadley, offering to purchase GER
tain stock and bonds of the Ship Build
fng company. Mr. Nixon admitted that
the stocks and bonds referred to were
those given him at the formation of the
company in case the Sheldon reorganiza-
ton plan was agreed to. Mr.. Guthrie
Immediately objected to these letters,
but Mr. JTntermyer declared it relevant
as showing that Mr.. Schwab bribed or
attempted to bride the president OF the
Ship Building company to agree to
plan of reorganization which he had
previously objected to- =
Mr.. Untermyer thrice repeated this
statement about attempted bribery and
finally secured the admission of one of
the letters, the authenticity of the other,
a copy, being unproven. The letter was
as follows:
New York. May %, 1903
Joseph H. Hoadley, New York, New
York.
Dear Sir-Providfng the United
States ship building organization is per-
| fected, 1 hereby guarantee to take and
pay for 100000 of first mortgage bon7s
of the United States Ship Building
company, $4,000 shares of preferred and
%, 600 shares of common stock. for the
sum of $4,000. plus interest on said
bonds, on or before December ], 1903.