Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-11-24
Investigation In the Ship
Building Company Receiv-
ership Again Taken Up
LEWIS NIXON ON THE STAND
Affairs Of the Bethlehem Steel Com.
pany and Its Connection With the
Ship Building Trust Gone Over
sehwab's Letters Offered in Evi.
dence-P-oposition to Buy Bonds.

New York. Nov. 24.-Testimony OF a
sensational nature was introduced at
the United States Shipbuilding hearing
which was resumed today. Counsel for
comIkainants brought cut on exami-
|nation of Lewis Nixon the statement
that of the five millions additional;
stock issued when the Ship Building
Company reorganized 20 take in the
Bethlehem company a nillion went TO
Max Pam. iSehwab's counsel million
each 10 Nixon. Dresser and the Trust
Company vi the Republic. leaving a
million, the disposition of which Nixon
did not know. 1t was brought out
that at the time the Sheldon re-
organization plan was Under consid-
Grafton Scalwab offered to purchase
100000 in bonds. with an accompany
ing bonus nf $4,000 shares of common
and $4,000 shares of preferred stock is
sued to Nixon for 100000. while the
market value was far less than this.
Counsel Urltermeyer made the direct
charge that this was in the nature OF
bribe 10 iniiuce Nixon to agree to the
Sheldon plan of reorganization, instead
OF the plan for an assessment OF stock
which he had previously advocated.
The offer was shown in two letters of
Schwab to Joseph H. Hoadley, copies
of which were introduced in evidence.
New Yorls. Nov. 24.-After series of
postponements consuming nineteen
days, which gave rise to rumors that
a settlement was being arranged, the
hearing in the proceedings to make
permanent she receivership for the Uni
ted States ship Building Company, was
resumed hare today. The attendance
was scarcely half as large as at the
previous hearings. Charles NJ. Schwab
was not present, tho represented by
Max Pam. his personal counsel Lewis
Nixon was the first witness today His
redirect examination was conducted by
Samuel Urtermeyer. counsel for the
bondholderts, who again took Nixon
over the affairs Of the Bethlehem Steel
shipbuildinE company.
Untermeyar offered in evidence two
letters from Charles NJ. Schwab, to Mr..
Hoadley, Offering to purchase certain
stocks and bonds OF the Shipbuilding
Company. Nixon admitted the stocks
and bonds referred to were those given
him at the formation Of the company
in case the Sheldon reorganization
plan was agreed to. Guthrie immed-
lately objected to these letters, but
Untermeyer declared 1t relevant as
showing that "Schwab bribed or at
tempted to bribe the president of the
Shipbuilding Company to agree to a
plan or Reorganization, which he had
previously objected to-" Untermeyer
secured the admission of one of these
letters. whihh follows:
New York, May. 26, 1902 To JOS
eph H. Hoa ,lley. New York. Dear Sir
Providing tine United States Shipbuild-
ing reorganization Is perfected hereby
guarantee Ii, take and pay for 100000
Of the first mortgage bonds of the Unit
States Shipbuilding Company. $4,000
shares preferred and $4,000 shares COM
mon stock, for the sum OF 100000 plus
interest on said bonds on or before
Dec !, 1903, said bonds and stocks to be
deposited with Mcintyre Marshall.
New York, and to be exchanged for
securities oil, the reorganized company
at designated by the agreement issued
by the reorganized committee.
Very, truly. yours.
(Signed) &C. NJ. SCHWAB."