The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-11-25
WAS NOT CONSULTED
IN RE0RGANlZ
Of United States Ship
Building Company Again on
the Stand and Under Fire OF
Counsel in Investigation
Of Company's Tan
gled Affairs.
tBy Associated Press,

NEW YORK, November PAT estimony
of sensational nature was introduced
at tho United States ShipbuildinS hcaring,
which was resumed here to-day. During
the course of his redirect examination OF
Lewis Nixon. president of the Shipbuld-
Ing Company. Mr. Untermcyer. counsel
for the complainants, brought out from
Nixon the statement that of the So,Uo,0o
additional stock Issued when the COM.
pany was reorEanized to take In the Beth
lehem Company, 100000 went to Max
Pam, Mr. Schwab $ counsel, and 5l,09CoO
each to Mr. Nixon, Mr.. Dresser and the
Trust Company of the Republic, leaving
Sl,0OO.OO0. the disposition OF which nc dlo
not know Hc did not know whether Alr.
Schwab obtained It.. s45
IS II was also brought out that at the time
tho Sheldon reorganization plan was un-
der consideration Mr.. Schwab offered TO
purchase $4,000 bonds. with the accom-
Epanying bonus OF 5000 shares common
and 5000 shares preferred stock. issued
Z to Mr.. Nixon for $4,000, while the market
value was far less than this, MIR. Inter
never making the direct charge that this
wa s In the nature of a bTlbe to induce s3lr.
Nixon 10 agree 10 the Sheldon plan OF re-
organization. instead OF the plan OF tho
pan.assessment Of stock. which ne had
previously advocat ted. Tho offer was
shown In two letters Of MIR. Schwab to
Joseph II. Hoadley, dated May 26. 1893,
cories OF which were Introduced In evil
dence. MIR. Hoadley. It was testified had
conducted the negotiations with Mr.
Schwab, when Mr.. Nixon was endeavor-
Ing to persuade Schwab to accede, to the
assessment plan, and had, after the pro-
posul urged Nixon to accede to the Shell
don plan Nixon said that at iioadleys s
request he had done So
THE LETTERS
The letters are as follows:
"Provlding the United States Ship
building reorganization Is perfected, l
hereby guarantee to take and pay for
$1,000 OF first mortgage bonds of the
United States Shipbuildng Company.
1000 shares of preferred and $500
shares OF common stock, for the sum
of $4,000, plus interest on said bonds, on
Or before December !, 1908. Said bonds and
stocks to be deposited with Messrs. Nc
Intyrc and Marshall, No. "a Broadway,
New York, aud to be exchanged for Sc
curitics of the rcorganized company as
designated BY agreement Issued by the
reorganization committee.
(signed) &C. M. sCHWAB."
.'provIdng the United States Ship
building reorganization Is perfected, |
hereby guarantee to pay to your order
$4,000, amount of payment which has
been made to the Sheldon syndicate on a
subscription OF $4,000 made BY Lewis
Nixon. I also agree to have said sub
scription placed to my account. and guar
antee to have complete release issued
to said Nixon by said Sheldon syndicate.
(sgned) CHARLES NJ. SCHWAB."
AFTER the date Of these letters did or
did not Mr.. Hoadley get you TO accept
this plan?" asked Mr.. Untermeyer
Mr., Nixon explained in answer that
Mr.. Hoadley advised him to consent to
the Sheldon reorganization because Mr.,
schwab had refused to accept the as
sessment plan. and that he (AIr, Nixon
had thereupon written letter recon-
mending the Sheldon plan.
"As to my deriving any profit from the
| transaction, that lis nonsense" said Mr..
Nixon. "The transaction concerned 9TH
ers. and prefer that they should tell It, :
GREATLY IRRITATED,
Mr.. Nixon then testified to writing to