The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-10-22
MR.. SCHWAB SEEMS
TO HAVE CONTROLLED
The Steel Magnate Told Directors to
Absent Themselves from Meetings
and President Nixon Was Una
BILE to Get a Quorum.
Directors Not Stock.
hoIdsrs7
(By Associated Press.)

NEW YORK, Oct. I.-Lewis Nixon,
who fr2m naval constructor became
builder 81 war ships and the president
OF the United States Shipbuilding Com
pany, was the principal witness to-day
at tho continuation of the hearing before
Examiner Henry D. Oliphant as to the
affairs Of the dcfunct corporation named.
He did not finish his recital, but in
the three hours that he was on the stand
ne went over much OF the history OF tho
corporation and the acts of the zen
prominent in Its history. He confirmed
the claim OF the bondholdcrs that Max
Pam. counsel for Charles NJ. Schwab,
had suggested number OF the directors
for the shipbuilding combination. and
said that the proposed expenditure OF
S.. so2, 900 for improvements at the Beth
lehcm Steel Works had been approved
by the directors over his protest and
warning that the action might, In the
end. leave the main corporation without
Z funds and wreck it. Mr. Nixon swore
that after. this expenditure was ap?
fproycd he made several attempts to Sc
cure meeting OF the directors, and
that AIr. Schwab had finally told him
that he had instructed the directors
to remain away from a meeting.
Not Stcckho ders.
An effort was made to show that the
directors elected at the suggestion OF
Mr.. Pam had not been stockholders. but,
like the young men of the Corporation
Trust Company of New Jersey. who
served in the early days OF the COM
bination, had been given shares enough
sonnl knowledge Of the transaction.
Mr.. Nixon testified that by resolu-
tlon Of the directors passed In December
last. Mr.. Pam was given a salary of
$500 year, which was dated back
to the preceding September. He also tes-
tilted that, besides his bonus MS an un-
derwrIter and the sums paid for the
Bethlehem property, Mr.. Schwab re-
ceved a share of the promotion money,
part of which he gave to Charles Gates,
of the brokerage firm of Harris, Gates
and Company.
Samuel Untermyer. for the bondholders.
endeavored to prove by the witness that
during the negotiations for the purchase
OF the constituent plants no one looked
after the interests of the shipbuiding
company but that the figures and reports
OF John w. Young, the promoter. were
accepted. Mr.. Nixon said that no irde-
pendent appraisement or investigation had
been made, and disclaimed all personal
responsibility for the negotiations and H.
ncncial part OF the combination plan.
MisI aIing St.tements.
II was brought out in the testimony OF
Mr.. Nixon that misleading statements as
to the personnel of the directorate had
been made In the prospectus issued in
June. 1902. and that Young had taken the
options in his name. According to Mr..
Nixon secrecy was observed In paying
the vendors only because Promoter
Young did not want them to know what
was being paid for each plant. There had
been much mystery over the cutting Of
the checks given to the vendors and 1t
is possible that the explanation of Mr.
Nixon will clear it away.
Charles Canda was the only other wit
ness of the day. taking the stand before
Nixon was called. He testified that the