The county record. [volume] (Kingstree, S.C.) 1885-1975, 1903-10-29
NIXON ON THE STAND.
President of ShipbuiIding Company
Tells How II Was Wrecked.

FreSiQenL OF SnipDuiiQin2 SofHpahy
Tells How 1t Was Wrecked.
New York, Special.-Lewis Nixon,
who, from naval constructor, became
builder OF warships and the president
o. the United States Shipbuilding
Company, was the principal witness at
the continuation OF the hearing before
Examiner Henry D. Oliphant 60 to the
affairs OF the detunct 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 AMI the
acts of the men prominent in its his
tory. He said Max Pam. counsel for
Charles NJ. Schwab, had suggested a
number of the directors for the ship
building combination, and said that
the proposed expenditure Of $4,000
for improvements at the Bethlehem
Steel Works had been approved by the
directors over his protest and warning
that the action might, in the end, ieave
the main corporation without funds
and wreck it. ar. Nixon sworr tla-
after this expenditure was approved
he made several attempts to secure q
meeting Of the dire :;Grs and that Mr.
Schwab had finally told him that ne
had instructed the directors to remain
away from a meeting.
An effort was made to show tnat
the directors el,c.nd at the suggestion
of Mr.. Pam had not been stockholders,
but like the young men Of the Cor
poration Trust Company. OF New Jar-
sey, VINO served in the early days of
the combination, had been given shares
enough to quality, but Mr.. Nixon mad
no personal knowledge Of the transac-
tion.
Mr. Nixon testified that BY !; resoltl-
ton of the directors, passed in Dccem-
Der last, Mr.. Pam was given salary
of $4,000 a year, which was dated back
to the preceding Se3tnn!E"r. He also
testified that besides his bonus as IN
underwater, and the sum3 paid for the
Bethlehem properly. Mr.. Schwab -e-
ceiyed share Of the promotion money,
par. Of which he gave to Charles
Gates. Of the brokerage firm OF Har-
ris. Gates G. Co.
Samuel Untermeyer, for the bond
holders, endeayored y prove by the
witness that during he negotiations
for the purchase OF the constituent
plants no one looked after the inter-
ests Of the shipbuilding companies, hut
that the figures and reports of Jonh
w. Young, the promoter, were accept
cd Mr.. Nixon said that nc indeDen-
dent appraisement or investigation
had been made. and diselaimcd all per-
sonal responsibility fo- the negotia-
tions and financial part Of the coih3l-
nation plan.
1t was brought out in the testimony
of M. Nixon that the statements as
to the personnel Of the directorate had
been made in the pros pect,s issued in
June, 1898. and that Young had taken
the options in his name. According to
Mr.. Nixon, secrecy was observed in
paying the vendors only because Pro-
moter Young did not want them to
know what was being paid for each
plant. There has been much mystery
over the cutting Of the checks given
to the vendors, and it Is possible that
the explanation of Mr.. Nixon Will clear
it away.
Charles Canda was the only other
witness of the day, taking the stand be.
fore Nixon was called. He testified
that the Canda Manufacturing Com
pany, for which s1,100,O00 in cash and
securities was paid. had plant at
Carteret, n. j., built for the manufac-
ture of car wheels, but that at the
time of it's purchase it was turning out
some experimental work in motor car
riages. 1t had made about 100 ma
chimes. and employed about 40 men. he
said that plant would have been use
full in connection with some Of the oD-
erations of the ship-building comb.na-
ton.
Charles NJ. Schwab and Max Pam at
tended the hearing yesterday. They
came to be sworn, but remained inter-
ested listeners to all the testimony.
They will testify later in the week.