The sun., 1903-12-09
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bonds. Mr.. Perkins said that this was
part of the purchase price and that the
amount of the stock represented just what
they had given for the Bethlehem company.
This stock, the witness said. was sold to
Mr.. Schwab on May for SIS ,OO0 that being
about the time that the reorganization Of
the company was discussed.
MIR. Untermyer asked Mr.. Perkins If
the firm had known that Schwab got sio.-
100000 in bonds. Mr.. Sohwab, the witness
arrangements were. He came to us with
q definite proposition and we accepted it,
he remarked. When asked why the con-
tract OF sale had been made with Nixon
and Dresser instead of Schwab, Mr.. Perkins
said that he did not know that detail,
Didn't you cable Paris after this deal
was first discussed?' asked Mr.. Untermyer.
MIR. Perkins answered that at the request
Of Col. McCook the firm had sent a cable
to the Paris house. He started to produce
explained that as there had been SO much
talk about the cabegram he wanted to
produce 1t, and Mr.. Stetson. who was repre-
senting the witness, said that he saw no
reason for not producing it, but Mr. Guthrie
kept on with his objections.
Mr., Perkins. before reading the cable
gram explained how it came to be sent.
"Col. McCook, !" he said, asked us several
times to send some message to our farls
house about the shipbuildng business.
We told him we could not do it as we we're
not interested in the matter. Finally, after
thinking it over. we did send this message:
MIR Charles NJ. Schwab and his friends
are Interested in a new shipbuilding com
pany here and will be glad to have yol take
Mr.. Perkins said that this cable ha d been
sent only technically" by the firm 1t
was at the request of, and as courtesy to
Col. Niece he explained. The letter to
which Mr. Guthrie objected with even
Perkins It was sent by Morgan. Harjes
4 Co. on July 30, the day they received the
cablegram, and reached Morgan d Co, on
Aug II. 1t was long typewriter letter,
Although Mr.. Stetson seemed perfectly
willing to have it read, and Mr.. Perkins
the grounds that it was between mem
bers of firm, that it was private matter
and irrelevant.
A copy of the letter was marked for iden,
tihcaton. Mr. Stetson took the original
and when inquiries were made for the copy
it was found that Mr.. Guthrie had taken
that Mr.. Untermyer said that pending
the court g decision he would not make
the cablegrams public nor would ne give
out even the substance of the. letter.
Mr.. ferkins's testimony at that point was
ad journed until this morning. The letter
was in regard 70 the French underwriting.
but that was all that those interested would
say in regard TO it.
Lewis NIXON was OH tllt htdir'i ali VI .hO
morning Most of his crosse Examination
had to do with testimony already brought
out 1t was brought out by Mr. Untermyer
that when Mr.. Dresser had the stock in
creased s5,OOO.OOO over and above the
amount needed to acquire the Bethlehem
company, 81, 600, 900 Of this extra stock had
gone to Mr. Pam "for services done for the
company and in the promotion of the com
pany" If Mr.. Pam got it. the stock is
now worth at the latest quotations about
$4,000 1t was also agreed, Mr.. Nixon
said that MIR. Pam Is salary OF $4,000 year
as chairman Of the executive committee
should be dated back two months from
the time he assumed the office in December,
1902. Mr.. Nixon admitted that he had
signed in Alexander 4 Green's office aletter,
which John W. Young also signed, agreeing
to pay the law firm 1915 900 in cash and
securities for services" He did not know
whet her this was ever carried out.
Mr. Nixon got rather angry when Mr. IN
terlnyer brought out that MIR. Dressers
trust company had advanced $3.50 Tor
the last Nixon payroll and that $l750OO was
advanced in similar way to tho Union
Iron Works. although this was for work
done before the control. changed hands.
Mr.. Nixon admitted that the Shipbuilding
company put into his company more than
it ever got out. The amount put in was
$sOO,OOO. "But then" he said -the COM
pany was ready to go ahead and make
Lot of money