The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1903-10-27

S"hipbuiidis&
New York. October 22.-The nature
OF the defense which Charles NJ.
Schwab viii make to the charges that
have been made against him III con-
nection with the financial affairs Of
the wrecked United States S~hipbuiId-
ing Company was sharply outlined
during Hthe latter part OF the hearing
before Examiner Oliphant late today.
Lewis Nixon was still on the stan l..
and. under crOss-eXamrnatiOn By w.
u Guthrie. counsel for Mr.. Schwah,
there Was an effort to show that the
corporation would not have succeeded
if the $1,000, 900 promised under the
Sheldon plan of reorganization had
been made available and that it could
not have continued its existence. even
if it had received the much sought for
100000 which. it is alleged, was
Wrongfully withheld by the Bethle-
hem company. Mr.. Guthrie showed
BY Mr.. Nixon that the 5000, 900 would
lave been absorbed withou relieving
Liz company OI all VI the nIdlCldI
embarrassment which it suffered, anj
asked if it would have been nom
psf To the other creditors if the inter-
est charges. on account OF the bonds,
had been paid on jury 1st. the date
of the crisis in the affairs of the con-
Germ
MIR. Nixon objected to the word
honest" and Mr.. Guthrie changed his
question TO d you not think that
there is an honest difference of Opin-
ion as to the justice of paying the
interest charges and do you not ad-
NIT in your letters that to continue
this would participate immediate
bankruptcy"
Il wanted money" said Mr.. Nixon,
and was prepared to make almost
any sacrifice"
Was it not q fac that the board
of directors thought that ecaus of
the wan of accord, the accumulation
of debts, and the pressing need fer
money, the proper course was to pub.
lish to the world that reorganization
was necessary, in order that people
would no longer deal in securities OIL
which interest could not be paid on
July 1st?"
Most decidedly" said Mr.. Nixon,
Il did not want the people to con-
tinue dealing in the securities"
The examination of Mr.. Nixon was
III tOtINl ~ dIII III DO Al CT
the next hearing. which IS set FOR q
week from Monday.
Trough an order granted late to-
day, Charles NJ. Schwab was granted
leave to intervene as a complainant
in the action recently connected in the
federal courts by the New York Sc
curities and Trust Company. against
the United States Shrpbuilding Com
pany and James Smith, Jr., as re-
ceiver. The defendants at the same
time were allowed to file an amended
answer and cross bill, and Roland
B. Conklin, Max Nathan, Jacob W.
ALack and James d. Mcguire. as cred
and stockholders, We're given
leave to intervene as defendants.
Lawyer Devere. representing Mr..
Srhwab. explained to Judge Lacombe
that the issues of The action were
such tina Mr.. Schwab should properly
be a complainant. the answer of the
defendants containing allegations of
such a character that Mr.. Schwab
should. in all fairness, be given the
opportunity to come in and show his
position.
After hearing the arguments Of
~cUunsel Judge Lacombe granted the
Urde for Mr.. Schwab to intervene as
4 co-COnplaiuant. without prejudice to
the proceedings already had, n that
The title TO the bill OF complaint and
Nllt ~ S-A'DAAA ~ a. A-@O~
ed as fully to all intents and purposes
as If Mr.. Schwab had been a party
complainant at the time of the filing
Of the bill.
The order also gives Mr.. Schwab
permission to litigate all of the is
sues presented IN the case, upon the
condition that the defendants are
granite leave to file within thirty
days an amended answer and cross
bill or either with leave to the New
York Security and Trust Company
and Mr.. Schwab. TO file pleadings TO
any such amended answer or cross
bill rs they may be advised. The or
ri complainant within thirty days from
until the expiration of the time
s1or the nling Of the answer and cross
bill n four shareholders OF the
s~nlpbUildiuE company granted leave
- intervene as defendants. were also
allowed 10 serve an answer 10 the Dill
of complainant within thirty days from
the entry IF the order. also without
prejudice to all previous proceedings.
None Of the lawyers could be in
Iur~I 10 discuss the order. nor would
Nj Sc-Wrtb's counsel give any further
~-a~Cr~ why n" had interviewed. other
than stated before Judge Lacowbe.
The mystery surrounding the pur-
pose and destination OF the check for
Sg-G.nIH which has figured in the IN
ell states ~ShipbU.ldtuE Company was
partially explained today by Il former
official Of the Trust Company Of the
Republic He said that the check was
drawn To- cover a payment Of the ship
-lri properties ana that after ii had
been made out. il was round necessary
In cut the sum into a couple Of smaller
checks. T. was one of the series Of
numbered checks and rather than de-
Troy il. Il was put through the bank
>.r he Trust Company itself. The
money called for by the check was