New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-22
NIXON TELLS SECRETS.


c-When did negotiations for a consolidation be
81 Andrew Freedman sic phoneo me al r.lzabeth'
and slopped a. ms 9'S MoR c TagoemSer the
exact date. ! met Mir. Young At Mr.. Freeornans
o&what wards were e. his proposed combins-
ton? A-Ihc Onion iiol N| t ipn ,, 80 non.
eriy 7 snouil cau 81; the Crescent company. the
Newport News company and Others Roachs'
think. ..-,..s.,, w.
C.-NNoro al the pants inci9dea that 9IS
d became part 2l S Tn'S Si@ oinrEorh Mas
nS SSst became of .his effort at consolidation?
an unfortunate day. and u saiisd. Cd. ,,,,,,- CON
nccted with ite A-ThaJ name was on The SUD-
scription paper
TALKS WITH sCHwAB.
o-How long have you known Mr.. sohwae? A
S4 YOU Of the 2eqsit7ion ,d 9E him hin S of
had bought it. il was a big tihns. and I'm sure
Old he Know OF the project 70 form the ship
iehem Company Ale knew VI the frst one me
one which was 10 have been organized by Poor *
Co; the one which fell through, -, S,,.t ,bo,,.
ODD you have any talk with mr- scfFSo ;I5
taking the Bethlehem company Into the shppoIlo-
55ons Al undoubtedy did talk 10 him Of the ad-
vantage OF the Bethlehem works TO a SSiiiiKpyaTS9
his going into the NckersAd NJ ramp comoiha-
ton. in which was not at al interested
BETHLEHEM WORKS BROUGHT Up.
o-When did YOU talk with MIR. Schwab about
The matter was openly talked Of with Mr.. Dresser
June NJ. scfyab first asked Us how we were ,
SetY.e T1,,5 Nj Scwab suggested taking in the
Bethlehem works cannot recall MI Schwap
%9ISs s o az -I Fsethiel1sra works The whole
lSe5- 1e5 ~ ysTv short ana was most anxious
- oI,,sf1 r,at rj5nt / told Schvyab and Dresser
NV feelings. and when the former len the room
ON hen yon met ar Nj. schwabe office after
that Interview had the prospectus he'n pun
lished? A.-There was such "a prospectus II gave
Ine earnings Nl Ait ~
SO gSg lei on l1 5f ii does not Mention
earnings. A-There was a prospectus IN pAinphlet
oEYou had other talks with NJ. schwab about
the Bs5hs s ,a I 3a' were s. @ coz Ths1 was for
> vear9 and then Mr Schvab told me he hao PAID
saTrines with the company He said he would sell
The plant Tor about 50 100000 in cash. - IL,
Q.-What old Mr. Dresser say: A4 ,- Inv y NoUiu
be great deal Of monsy 70 raise a Ma {1l He
s owsa there anything else said at that time
Ayes We called on him again
BOND IDEA DRESsER's.
o-v-bsr did YOU think after the interview. Mr.
.mpression An very clear t 35t ne seemed TO
did not, bur understood distinctly that he wanted
nne n1-i91s N cash ne O ION Mr. I Dresser. and
tie proposition was favoraoly received s
Of The bonds? Ar Dresser told him OF the off
fcuity OF raising money al that time, and Mt;
- shipvar5s and OF the Bethlehem plant.
TeT 2al WV was s, oonnarison Of earnings ana it
was thought the amount should be @ooooo0 in
o,AWas the araount 10000 OF each kind? A
cNha were The sarpai52ss . 81 3. e 5hs 20, shiPyardS
Don't YOU know that the prospectus or the
company Tor June i put them al $4,000? A
Now that ] have read il, do.
AMOUNT TO co 10 MIR MORGAN.
AZ -~R,vr-a y,
stock? A.-NIr Schwab said that he wanted both
kinds think Tat ne amount VS. eI%e 1 $50 ,II
5ust then what he could DO. he said tnat he would
E nSST 10 he Would name his exact terms regard e
the stock. At The next meeting Alf eh% ol5 s a
pee so e05o each sort Of stock because ne had
10 give $4,000 Of each kind Of stock TO J r Nor
sol.NIDid he say vlly2 A-No.
0-Yas he asked? A-No.
Odd he say who owned the Bethlehem COM
pSo5. .yywas NJ. Pam called in them A.-No.
Q-Ar Pam was called N ~ ti 81 Iil N1 OF p si1o
o-IIad you met Mr.. Pam? Al knew him
O-N-be1 did YOU him in connection with the
-,,9rrhase Of The bethlehem Steel Company? AIN
4 short time / think Mr.. schwab went away then
after that practically everything was done by Mr.
pam Mr. Pam took hold in day or two @fter the
Interview with Mr.. Schwab.
SIGNED PAPERS WITHOUT READING.
Odd YOU discuss the plans OF the purchase
with M Pam and examine the papers! Al
fooIshy signed all Of the papers that he put Delo'e
6-Did Won read them afterwar1? A.-No; I
can't tell what was in them.
Nr. Guthrie interposed an objection TO Mr..
orixor's use Of the word "foolishly." At another
lime when he objected TO answer Mr.. Nixon
raid: u am trying to tell the truth, Mr.. Guth-
ne and TO get these things straight"
y hope so, Mr.. Nixon! 1 hope so, sincerely"
Mr.. Guthrie retorted.
Mr.. Nixon said he remembered signing the
agreement for ths sale Of the Bethlehem plant
70 the Shipyards company, but he could rot re
member if it was signed at the office Of J. p.
Morgan & Co.
Odd you understand Mr.. schwab's and Nj
1l6rg.-n's relations 10 the Bethlehem plant? Al
o-Was any explanation made TO you why J. p
Morgan a. CO. party 10 this agreement. and
The relationship OF this hrm with Mr. Schwab?
Q.-You were acquiring this company? A.-Yes: 10
turn IL over 10 the SnlpbuldluE company We
were acting in the interests Of proposed com
c.-You then became a party 10 a thing that YOU
did not understand Al did not understand
old this because Mr.. Dresser asked me 10.
thought that the acquisition Of the Bethlehem
building company. and that il Mas my duiy - 90
al that ] could 20 aid ia getting st.
Q-Aou understood that you were getting IL for
the Shpbuiding company? A-Yes.
Q-Did you have any thought Of personal profit
ODD you understand why you were a party
70 the trsnsacton2 Al never did.
S-Sgt WIN Ny Dresser 3oa aequTed the Beth
Company? Al was not a member of The Shin.
Interest OF ne frofose5 cornhirati ron W. ~
director OF the shipbuilding company
Q-Ihat agreement Was made ia July, and in the
prospectus issued IN June your name is used as
o-You notice that in the agreement Won made
with NJ. Dresser ano j p. Morgan & Co pay
stood that they were TO get S0oc0000 Of each kind
Q-aow did you understand that Mr. schwab
n a.