New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-21
NIXON ON STAND TO-DAY.
Expected to Tell Of Payments for
\ Subsidiary Plants.
WITH STEEL COMPANY

II is believed in Wall Street that the testimony
to be given by Lewis Nixon, whose examina ton
in the United States Shpbuildng inquiry before
Special Examiner Oliphant will be begun at to-
days hearing will he fully as important and in
teresting as was that of u. lie Boy Dresser, for
merly president of the Trust Company of the Re
public. II is said that the bondholders' protective
committee has investigated the payments made
for subsidiary plants of the United States Ship
building Company. and that the facts relating TO
these paynents will be established in the course
of Mr.. Nixons examination by Samuel Untermyer,
senior counsel for the committee. All the vendors
checks, it is reported, were made out In the name
of Mr.. Nixon, who Endorsed them to the several
vendors Especial effort. it is said, will be made
to ascertain the facts relating TO the acquisition Of
the Canda Manufacturing Company.
An interesting document. as to which 1t is said
Mr.. Schwab will be asked to make some explana-
ton when he goes the witness stand. was made
public yesterday. 1t is an agreement made on
August p 1902. between the Bethlehem Steel Com
pany and the United States Shipbiulding Com
pany substantially guaranteeing on the part of the
latter company the payment Of 8 per cent annual
dividends on the stock of the Bethlehem company
and the maintenance by that company Of a work
ing capital of 100000 The agreement is, in part.
follows
First-The Steel Company agrees to, and does.
cute and deliver to the New-9ork Security and
Trust Company its bond in the sum of SO,co"o.
to secure said bond in the form and of the tenor
and effect requested by said shipbuildlng company
and said New-York Security and Trust Company,
and submitted to and approved by the board or
directors and stockholders Of the steel company.
SeCOnd-In consideration of the execution of such
bond and mortgage the shipbuilding company does
hereby agree and guarantee that. so long any
part of the bonds secured by its deed of trust 10
the New-York Security and Trust Company shall
be outstanding and unpaid, the steel company
shall and will pay dividends on its entire present
outstanding capital stock at the rate Of not less
than per cent per annum, and, for the purpose
pany hereby guarantees and agrees that said steel
company shall and Will earn. over and above It's
operating expenses and fixed charges 0ncluding
interest bonds and taxes. and over and
above the working capital provided for in the sub
seQuent paragraph. a sum sufficient TO make such
annual dividend disbursement, and IT, on or be
steel company shall not have earned and paid said
dividend the rate of per cent per annum. then
the shipbuilding company Will pay to the steel
company a sufficient to make such annual
dividend disbursement OF such portion thereof as
may remain unpaid.
The shipbuilding company hereby agrees to fur
such orders contracts. work, and earning capacity
as shall be necessary to enable il and pay
the annual dividend herein provided for.
Third-The shipbuilding company. IN consdera
tion of the premises hereby agrees and guarantees
that so long there shall be outstanding any pOr
ton bonds secured by its deed of trust TO the
company shall at all times have. keep. and main
tain on hand over and above all its obligations
except the principal of its outstanding bondS and
over and above any and all fixed charges and in
dividends provided for in the preceding paragraph.
as and for a working capital. and for other
AT all times not less than 100000. and IL at any
time the amount of such working capital OF the
steel company shall be less than said sum OF
5000 OoO then and in that event the shipbuildng
pany pay to said steel company the amount OF
such deficiency.