The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1903-10-23

l. ~
on, who from naval constructor be-
came builder of war ships and the
president of the United States Ship
building Company, was the principal
witness today at the continuation of
the hearing before Examiner Henry
d. Oliphant as to the affairs of the
defunct corporation named. He did
not finish his recital, but in the three
hours that he was on the stand he
went over much of the history of the
corporation and the acts of the men
prominent in it's history. He con-
firmed the claim of bondholders that
Max Pam. counsel for Charles NJ
SchWab, had suggeste1 a number of
the directors for the Shipbuilding
combination and said that the proposed
expenditure of $2,S02, 900 for improve
ments at the Bethlehem 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 funds and
wreck it. Mr.. Nixon swOre that after
this expenditure was approved he
made several attempts to secure
that Mr.. Schwab had finally told him
that he had instructed the directors
to remain away from a meeting.
An effort was made to show that
the directors elected at the suggestion
Of Mr.. Pam. had not been stockhold-
ers. but, like the young men of the
corporation trust company of New Jer-
sey, who served in the early days
OF the combination. had been given
SnareS enough to qualify. but Mr..
Nixon had no personal knowledge of
the transaction.
AIr. Nixon testified that. by resolu-
ton of the directors passed in Decem-
ber last. Mr.. Pam was given q salar,
# S1S.G00 a year. which was dated
back to the preceding September. He
also testified that, besides his bonus
as an underwater and the sums paid
for the Bethlehem property. Mr..
SChWab received q share OF the pro-
motion money, part of which he eye
20 Charles Gates. OF the brokerage
-ii'n of Harris, Gates & Company.
Samuel Untermyer. for the bond
witness that during the negotiations
for the purchase of the constituent
plants, no one looked after the inter-
eSts of the shipbuilding companies,
but that the figures and reports of
John w. Young. the promoter. were
accepted. Mr.. Nixon said that NJ in
dependent appraisement or investiga-
zion had been made and disclaimed all
personal responsibility for the nego-
tiatiOnS and financial part of the COM
binatiOn plan.
1t was brought out in the testimony
of Mir. Nixon. that misleading state
mentS as to the personnel of the tIi-
rectOrate had been made in the pros
pectus 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
much mystery over the cutting or the
possible that the eXplanation Of Mr.
Nixon will clear il away.
Charles Canda. was the only other
he1ore Nixon was called. He testified
that the Canda Manufacturing Conn
nGny. for which $I.l00G0o in cash and
securities was paid had Ii plant at
Clrteret. y. J.. built for the manufac-
ctre Of car wheels. but At the time of
its purchase it was turning out some
experimental work in motor carriages.
It had made about 100 machines and
employed about forty men. He said
,tat plant would have been useful in
connection with some of the operations
Of the shipbuiIding combination.
Charles VI. Schwab and Max Pam
offended the hearing today. They
came TO be sworn but remained in
tarested listeners 10 all the testimony.
They will testify later in the week