New-York tribune., 1903-11-07

Morgan & Co AZ arei 3-r. Perkins said he
could not let them have Tho money, but afte
a talk aside with Mr.. Pam agreed TO place
the money in institutions Were il could be
obtained by Mr.. resser.
els II not true that the S1,J000o0 working
capital that was -Tuired by the terms OF the
prospectus was not paid into the company un-
I'll September :. 1902" Mt. Untermytr asked
Early in September a large amount was paid
| in" the witness admitted
To Mr.. Nixon was shown the handbook of the
shipbuilding company on The Trust Company
Of the Republic. and from II he read that a
! deposit Of 81. 10000 had been made on Septem-
Der D 1902 He said he i'd not know whether
| the company had ever had any working capital
UP TO that time.
rs il not the fact that the transaction was
as follows" asked Mr.. Untermyer, that after
the shipyards had been taken over with no
working capital provided, at the suggestion OF
Mr.. Pam, you and Mr.. Dresser made notes for
SI5OoOoo and that these notes were placed
with certain institutions and upon them the
money was raised. that $4,000 of it was depos-
ited with Harris Gates & Co, and S'0ooVo Oh
IL with other Institutions"
Mr. Guthrie objected to the question as tend
ing 10 make evidence
Il know that at this time large sums Of money
were borrowed. to be used as working capital"
replied the witness. Il know that Mr. Pam
was very insistent that the working capital be
provided; but 1 did not know the details of the
matter was very busy at that time with the
shipyards."
Did you not know that the money deposited
with Harris, Gates q Co. came from the Trust
Company of the Republic?"
Il assumed 50; but ] do not know where the
Trust Company Of the Republic got the money"
The agreement between himself Mr.. Schwab
and Mr. Dresser to have Harris, Gates & Co
market the stock the witness said, was drawn
up by Mr. Pam The suggestion that Mr.
Schwab's stock be sold nrst. he said, was made
by Mr. Schwab himself He did not remember
that Mr. Schwab gave any reason why this re-
quest was male by him. Mr.. Nixon said he had
offered 10 objection to the suggestion, and ne
had said he would be only too glad to hold his
"AIy part in the matter was merely this, that
4 might have some influence with the other ven
dors'' he explained.
WOULD NOT JUSTIFY STATEMENT
Mr.. Untermyer then took up the statement is
sued by the shipbuilding company on December
"a 1902 on which the stock Exchange was
asked to list the company's securities. He asked
M Nixon if it was true, stated, that on
JULY 81 1902. the company had in cash at the
works S3S9.319 %. and IN cash at the head office
81 5a3 600 Mr Nixon said he thought that
amount was represented by obligations OF the
Trust Company of the Republic; but ne could
not recall any document which was evidence OF
o0Are You willing 10 Justify that statement
then? A.-No did not make the statement If Z, ,,r
Gary and prepared by Mr.. Pam -.-. - 49,,
gust l. is63. in which it appears that the United
states ShpbudinE Gompsny @ bsn5 rs Of that
date 81 81 g! o. Do yop know nCI TF8F tbot on that date
they did not have A,5O1Vo
In regard to the note for the S1.J00Oo0. Mr..
Nixon said: I signeC the note because /
vantsd the money raised. l know was doing
everything I could do to help the shpbuilding
company along
wss true not not I'll that It the s2Pd5a stock s1GSk and I'd
SO 000o OF common stock on June IA 1902 when the
prospectus saying so was issued! A--1>o' II "dN
true that the Sa6t@I % stock Of st6sk the o9 and
pSnEo p o me never % o,r8T %9S tSR? AYes that is true
o-I)o YOU know whether many subscriptions
& e2sivfd @ II be gP2FS pc e RT Believe some
100000 in subscriptions were received, having Deel
o3D5 th6se VINO Subscribed ever have chance
osEHad they any opportunity to learn that the
statements in the prospectus were not true. Al
don't know.
Mr.. Nixon declared that ne did not have any
thing to do with the prospectus, and he assumed
no responsibility for it. He said he knew that
examinations of the books of the constituent
companies were made, but he did not know what
the instructions to the accountants were. TAX
ing up one by one certain Of the statements con-
tanned in the prospectus, Mr. Untermyer Ques-
toned the witness to show their truth or falsity
Of the 81. 10000 stated to have been raised in
Europe only $50 600 had been received, the wit
ness said.
When the session closed for the day Mr.. Guth-
RE asked to have the hearing continued on four
days next week. but Mr.. Unternyer objected,
saying that Mr.. Guthrie seemed to think his
own convenience should control the hearing.
1T isn't necessary for you 10 bel was go
ing TO say iInpertinent-but ! am in your Of
fee ] remember" Mr.. Guthrie said, and then II
was agreed that the hearing should continue on
Tuesday Wednesday and Thursday of next
week. each session beginning at IL a