New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-23

piled. / TO him in reply that the plan Glu
not meet with my approval
Mr.. Guthrie, who had been Directing con-
stantly TO the questions and answers helped to
put in evidence Mr. Nixon's letter and Mr.. PANS
reply. Mr.. Nixon wrote on May Il, last, TO
Mr.. Pam:
beg to say that after careful study and confer
ence / cannot my way clear 10 approve OF the
plan.
Mr. Pam on the following day replied to Mr..
Nixon. expressing surprise and adding:
As # IS desired TO complete and promulgate the
ment. and I have doubt you are DESTROYS or
ropeTQ and SRq nfeSes therein hope You viii
arrange 70 see me promptly TINS morning sfc let
me know what in the plan is now not satisfactory
10 you.
SCHwAB OPPOSED ASSESSMENT.
Mt Nixon said that Mr. schwab objected TO a
stock assessment plan. saying he would not pay
assessment on his stock.
Odd you finally sanction the reorganization
Q-The United States shipbqilding COMPANY y was vas
20 be completely wiped out and new company or
ganized? Ayes; and the first mortgage boha5 5
large government contracts expected other con
tracts from abroad. 1 thought l was taxing the
oDid you think It was fair to the first TT mOr ds
gage bondholders? Al accepted SchWab pIdi. as
the only avenue 20 save the company from bank
Q-Who predicted bankruptcy? Al did.
In explaining the condition of the shipbuilding
company at the time of the attempted reor-
ganization through the Sheldon syndicate MT.
Nixon said he thought the company had notes
payable amounting to about 100000 and about
equaling bills due the company. Mr.. Untermyer
took up the plan of reorganization. and called
the attention OF the witness to a letter of Mr..
Gary. the treasurer OF the company, printed in
the plan. Mir. Nixon said he had been angry
over the letter because it was sent without con-
sultation with lim, and because it contained an
estimate Of the company's earnings on contracts
at $4,000. when in previous letter Mr. Gary
had estimated the earnings at S1.1O0o00.
o;-When did you first see the letter? Alt was
had been written in Mr.. PANS Office and had
Odd you ask him about the discrepancy in
the earnings? Al did not. had no one 10
! was hooking for was money enough to 90 on
with the company. That is why 1 approved OF the
QEDid you understand that the constituent COM
panies were without cash capital and were heavily
In debt? Al did not. That was not SO regarding
Q.-Was it true that the credits of each OF the
companies had been seriously impaired A.-By
the general happenings, some Of them, but not all
Q.-Did you think the issuance Of this plan would
hep the SredI6 OF the G4mpany A u.s. puOica-
Q.-Were the payments OF the obligatons OF
] did not feel the pressure I cannot say but that
some, people were seeking their money.
FALSE REPORT OF EARNINGS.
o-was not the reported earning OF $4,000 in the
first quarter of the first year false? Alt was an
Q.-When was it that Mr., Gary discovered, as
JnS R c Sta5i q do1t Know 6Re
He had the books: he was at them all the time,
kno LITE about 6o9kkePg cannot aaae
occur are probably due TO incorrect estimates on
bookkeeping by which the amounts expended
ships were carried assets. believed the state
10 fz NJ in Ol2 I bel z-pd
he understood what he was about
Q.-Whv we're not these errors corrected before
companies? A.LThey were then all right. but.
cording 10 Mr. Gary,s statement there were errors
Q.-The plan says that the mortgage obligations
have impaired the standing of the company? A
! believe If we had gotten the money expected
from the company could have continued the ship
Q.-The plan states that the credit of the com
Ing for payment Did YOU agree with those state
nents? A-At the tine the plan was issued
DIN giving out the checks on August H. 1902.
the information from? AR. Young.
Q.-But he WAS then in Europe2 Al had
memorandum and left # with the Trust Company
OF the Republic
Mr.. Nixon identified the memorandum which
he had given the Trust Company of the Repub-
lie. 1t did not contain the names of the vendors
but Mr.. Nixon explained that he wrote the
names on the checks when he Endorsed the
checks. following instructions of Mr.. Young.
o-How much in money paid to the vendors?
Ask million dollars.
hundred and nfty thousand dollars
Q-How much in common stock? A.-Four million
dollars.
Q.-How much in preferred stock? A.-Four
Q-And there was a fund Of $4,000? A-Yes
Mr. Untermyer took up the checks. aggregat-
ing S6oO0.Oo0, which had been paid TO the ven
doris. and with them he called attention to a
check drawn on August H. 1902, by the Trust
Company Of the Republic on the Bank OF the
Manhattan Company to the order OF Lewis
Nixon or ourselves" This check had not been
Endorsed by Mr.. Nixon, but had been sent to
the bank on which it was drawn with the Trust
Company Of the Republics Endorsement for de-
posit showing that the trust company had
really not taken the money out on the check
but had drawn and deposited it at the same
time Mr. Untermyer tried to make something
OF a mystery Of the transaction.
O-HoU much was paid to Harlan & Holdings
worth? A.-Eight hundred thousand dollars in cash
Odd YOU ever see the check Pay Lewis
Q.-IIow much was paid 10 {. W. Morris? A
Two hundred and fifty thousand dollars
Q-How much 10 c + itanscome Of the Eastern
shipyards? Alive hundred thousand dollars
WANTED CANDA PLANT LEFT OUT.
o-HOw, much was paid for the Crescent Ship
ySTds A s3 o hundTed thousand dollars, of
-T4a was . the check for g 75oco paid to J.
d y" Zen TengIi1an Ior, q ne mon Iron Works.
the vendors paid Sc 600? A-Yes ''
Q.-What about the other $4,000? A = know,
nothing about II. "
Q.-And the trust company had 10 account for
Ste"o from the sale OF the bonds? Al know
nothing about ~. had nothing to do with Tho rTc
motion money stock. I thought a rnisfale ba1
been made in the drawing Of that se5o6 check iad
Q--But II could not have been a nistake7 r
have no right in assuming that il was
ohicials OF the trust company said there was
simple explanation Of the $500 900 check 70
Lewis Nixon or ourselves" In splitting m
the checks 10 the vendors, three for $3.50 GOO