The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-11-25
MILLIONS IN STOCK
WE'RE SPLIT UP AMONG sHIPBUILD-
ING PROMOTERS.
OF AN ISSUE OF s5,ooO,oOO
NM NIXON, DRESSER AND TRUST
COMPANY GOT $1,OOO,OOO EACH.

couuseI for the Compliments Could
Vot Establish the Disposition of
IN. sI,OOO.OOO Not Accounted for.
uipt THAT Schwab May Have Got
tt-one Transaction That Is In
,srnreted as IA Bride from schVvab
to Nixon.
vaw York. Nov. 24.-Testimony of a
sansa+fonal nature was introduced at
tho United States Shipbuilding hear
inc which was resumed here to-day.
Dnring the course of his redirect
examination of Lewis Nixon, president
Of the shipbulding company, Mr.. I'm
termver. counsel for the complainants,
brought out from Nixon the statement
that of the $5,00O,OOO additional stock
issued when the company was reor-
ganized to take in the Bethlehem COM
many 81 600, 900 went to Max Pam, Mr.
schwabs counsel, and $1000000 each
10 Mr. Nixon, Mr.. Dresser and the
Trust Company of the Republic, leav-
81 inc 81 100000, the disposition of which
he did not know. He did not know
kbather Mr.. Schwab obtained it.
1t was also brought out that at the
time the Sheldon reorganization plan
was under consideration, Mr.. Schwab
offered to purchase 100000 of bonds,
with the accompanying bonus of $4,000
shares common and $4,000 shares pre-
fered stock, issued to Mr.. Nixon, for
10000 while the market value was far
less than this, Mr.. Untermyer making
the direct charge that this was in the
nature of bride to induce Mr.. Nixon
to agree to the Sheldon plan of reor-
ganization, instead of the plan for an
assessment of the stock which he had
previously advocated.
by Letters from SchVvab.
The offer was shown in two letters
lei Mr. Schwab to Joseph H. Hoadley,
dated May &c, 1903, copies of which
#were introduced in evidence. Mr. Hoad-
LEY, it was testified, hac conducted the
negotiations with Mr. Schwab, when
Mr. Nixon was endeavoring to per-
suade SchWab to accede to the assess
ment plan and had, after the proposal,
urged Nixon to accede to the Sheldon
plan. Nixon said that at Hoadleys
beQuest he had done so. The letters
are as follows:
Providing the United States Ship
Building reorganization is perfected,
hereby guarantee to take and pay for
100000 of first mortgage bonds of the
United States Shipbuilding Company,
100 shares of preferred and $4,000
& kdares of common stock, for the sum of
$4,000 plus interest on said bonds, on
r before Dec. /, 1903. Said bonds and
&ocks to be deposited with Messrs.
flcntyre and Marshall, IA Broadway,
New York, and to be exchanged for Sc
miues of the recognized company as
leagnated by agreement issued by the
organization committee.
(Sgned) &C. M. Schwab."
Providing the United States Ship
building Company reorganization is
perfected, l hereby guarantee to pay
10 your order $4,000 amount of pay
aent which has been made to the
sheldon syndicate on a subscription of
100000 made by Lewis Nixon. l also
gree to have such subscription placed
10 my account and guarantee to have a
complete release issued by said Nixon,
oy said Sheldon syndicate.
(Signed) 'Chas. NJ. Schwab."
Nixon Denies He Profited.
After the date of these letters did
or dld not Mr.. Hoadley get you to ac-
cept this plan?" asked Mr.. Inter
4myer.
MIR. Nixon explained in answer that
Mr. Hoadley advised him to consent
70 me Sheldon reorganization because
Mr. SchWab had refused to accept the
assessment plan, and that he (Mr. Nix
oh) mad thereupon written a letter rec
ommending the Sheldon plan.
IN AS to my deriving anV profit from
Sle transaction, that is nonsense" said
-II Nixon. The transaction concern
tl ,oihers and prefer that they should
MI. Nixon then testified to writing
Mr.. Schwab later, and obtaining
rom MN letter confirmatory of the
81 oposal in the letter of May rs, to
Mr. Htadley. Mr.. Schwabs letter
s. odted that the proposal was contingent
Upon the success of the Sheldon re-
5aulzatlon plan, and Mr. Nixon said
" 1 ne then let the matter drop.
81 me witness said in reference to the
Sneldon plan, that he felt greatly ir-
r9ated because he, though president
me ship yards company, had not
# Nh consulted, and reiterated his state
ngHI at the previous hearing that his
WY knowledge of the reorganization
p.ah had come from converse lions with
Nr. Pam.
Inc agreement of July 2, 1903, be-
49, Nixon, Dresser and Schwab, pro-
Nun iuing that Schwab should loan to
[tAoh and Dresser $7,246,S71 to pur~
~ the Bethlehem stock from ] p.
roIsah q Co., as syndicate managers,
5 return for which Schwab was to re-
M ma Si5OOO.OOO in stock and 10000
m bonds. was introduced in evil
s dee' Mr.. Nixon testifying that he
tou always understood that Mr.
sShwab, and not Morgan & CO.. owned
'n s, bethlehem stock.
cad !, mink the testimony to-day shows
bns ptly y that there has been no settle
Re- eca1,. said Mr.. Untermyer during the
AZ the conclusion of the session Mr..
a. sAgh gave out for publica ton a let
Ioo,IJ5 mad recently received from Mr.
h. 1ley' in answer to Nixon's request
woo coples of the correspondence be-
y" Schwab and Hoadley.