New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-22
NIX0N TELLS TRUST SECRETS
SCHTAB and PAM. SWORN As WITNESSES HFtp
HIM TELL OF SHIPBUILDING SCHEME
Directors Forced Plan to Improve Bethlehem Plant 4gqinst Non Plea
That They You'd Wreck Componu

49, N.x-- ex-p-esident OF the United
e.s-ss sh.-r-i-5l-E Company, was the i'm
- witness veste-zay il the hearing %
:. .o-sr--5 e-s- s-ft for e permanent receiver
=. re -r--s-y Charles II Schwab. eX-
--..sss-- 0r me United States Steel Corpora
- W., sod che Bethlehem Steel Company
., re surrounding company for SS0.O0o,eeo
:. ss---s-fez was Al interested listener 20 MI
,-.ro-ss testimony. ~. Schwab went 70 the
.ss-+,e v---h Max Pam. his attorney. and both
- sven Is witnesses BY Nr. OliPhanL the
,.s,ss- examine. before oIr. Nixon's testimony
49, NJ. s-rvsb and NJ. Pam are 20
sss1ty soC-.
- he.-.-E was held as usual. in the Office
n Gugre-he--e-. C1te-nyer Marshall al
<, 81 B-oa6-st- and che library Of the law
IN was crowded 10 Us utmost capacity while
Y N.x-- vas - -he witness chair. Samuel
----s--vs- IS counsel FOR the bondhol6ers
---.sc-fve committee conducted the direct ex-
s--z-.-- q ~ Nixon. which was rot fin
.sbss yesterday and Il 70 be resumed today.
We Vl--z- =. Guthrie = counsel for the
sa.,hur5.-r company and 1Ir. Schwab, made
--s-ue-t objections 20 questions and took notes
-rirr h --cbahly viii Use IN & long cross
ezz-.-a-l-- of the witness. John " Young.
~ promoter q the shiP5uilding company,
VS. r-ese-- WIKI private counsel 70 watch The
proceeding
II Nix told fUIler details q the formation
q re sht7tui-5trg company than have been
s-,urh- rc light heretofore. He described the
negotiations with III. schwab for TIE purchase
q IL Bethlehem steel Company. telling how
III schvat 1-s- wanted 100000 II cash for
IL ard hrer after coumuuicating by cable
VIII sone o1e in Eu-ope. presumably with 8lr.
Morgan. arranged 70 sell fo- 100000 II
bonds S10V9tna) in preferred stock and
100000 En- common stock q The shipbuiding
conra1g
Re tod how H.. Schvab had figured The an
-usl ret earnings Of The Bethlehen plant At
S=09"so AZ -he tine q The sale and how the
directors q t1e shir5uIlding company controlled
r N- sc-Tlt la-=r held back the Bethlehem
p-ofrs from the shtpbuild5ag company and
lssse5 resolution 10 divert s. 5000 % the
sa,pbulllrE surplus 70 Bethlehem improve
1a1-s. Ee declared that he had protested
sgansr such action. because Il might mean the
T'sckilg re- -h= company. Just before the end
g, his testimony Tor the day h said M -Schwab
lad prevented meetings q the directors in May
sld June last
NR. CANDA on THE STAND.
Before 1--. Nixon began his testimony Charles
: Cands- who was president OF the Canda
As-utsc-u-i-E Company before il was taken
o'e- 1E me s1ipbuil6ing company. testified
BREEZY r. said h. had owned half the stock
ol' not -1= control ~ the Canda Manufacturing
Coupa1E. and The option had been given 20
Lewis Nixon. He told % the incorporation q
10 company and described the plant Of the cor
S.s@I-or- G-. Ca1da said TAT the plant was
constructed a. CartereL X. J. TO build car
N2eels and I'll such parapherraIia as enters IN
7 ne construction Of cars" The company al
~ uile The option was given was building
t-'on'oa.-es De- an experimental way.
80 me e--ire plant used f0r this purpose2
W. DC nc spl manufacture any sutomobnes7 A
IL --ect-r-l some Cuadricycles
TIC tll market them Ave sold few
go "-- e-" arv' A-Fes
A1o1t A-FlS
s-N-l sou show - A-s.nce Mr. Nixon was
10y ~ re transaction shall have % ind
Naat ~ desires
AZ NIXON. VINO was sitting in tie rear OF the
- arose Immediately and said: GO ahead.
- ~si-a Give al the Information you can;
S''-0oe whatever you wish. wish 70 say. how