New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-19
Mr.. NIXON TO TELL ALL.
JOHN {. C4LHOUN'S SUIT.
Interesting Developments Expected
in Shipbulding Hearing This Week.

Lewis Nixon has declared that he will tell all he
knows about the organization and failure OF the
United States Shipbuildng Company when he ties
tshes on Wednesday at the hearing at No 80 Broad
ST hut IN the mean time he will not talk about the
case lie admitted last evening that papers had
been served him in suit which John & Cal
houn OF No. el7 West End-ave. is bringing against
directors OF the Trust Company OF the Repuhnc
and other men who were concerned I'm the attempt
20 reoreanize the ShpDuildng Company through
the sheldon syndicate, reported in The Her
elc" yesterday. The suit is expected TO make
complication in the already badly tangled az
fairs of the shipbuildng company.
Mr.. Calhoun went to London TO place on the mar
ket there securities the United States Shipbuild-
ing Company at the time ID. lie Roy Dresser theh
president OF the Trust Company OF the Republic
went to Paris a similar eTrand. Just as he was
about completing negotiations with leading financial
houses in LONDON for the sale OF some S5o"e OF inc
preferred slipbGiding stock and like amount Oh
she common stock. Mr.. Calhoun declares. the Lon
oon bankers learned Of the formation OF the Snel-
don syndicate 10 take the shipbuiding secuFi-
ties held By the Trust Company OF the KepGohc al
a much lower price and the negotiations failed I'M
-nediately. Mr. Calhoun wants the profits he woulo
have made II the formation OF the Sheldon syndi-
cate had stopped the sale OF the securities IN
London His suit expected test the legality OF
syndicates attempt to reorgsnize the shipouiid
ing company.
Directors Of the Trust Company OF the Republic
have declined 10 discuss the quoted declaration or
ID lie Rov Dresser that some OF them were active
members OF the Sheldon syndicate and tried TO Keep
him Ia Europe for an indefinite time while the syn
dicate beng formed that the trust company
holdings of shipbuiding stock were taken over oy
syndicate. Some these directors, MI Dresser
saws probably prevailed on 70 accept lne oltI
con sTndicsfe because they thought il was the best
means O relieving the Trust Company OF the re
public from embarrassment. while others WoGIu
have made large profit for themselves II Inc snip
building securities had remained steady IN The mar
Eet -. ~ ST.
building company was wrecked through 1hat rs VI;
Schua bis control and refusal 10 let the pronts OF
the Bethlehem Steel Company 80 10 the Shlpbultd-
plsns OF Max Pam. Mr. Schwab,s attorney. anu
warned Mr.. Nixon against MI. ram pans lol
control and he says that efforts were MADE &c nave
him resign the presidency OF the Trust company o.
make a personal assignment. AS witness At the
hearing Mr. Dresser has made II pam Iia1 ne
thinks he was betrayed by some fellow directors
Of the Trust Com oany Of the Republic IN the lorna
tion OF the Sheldon syndicate. ..--.,
Many bankers OF the city are SAID 70 be lhtereJ.u
sr the outcome Of suits which 10 test the egay
OF securities issued by the ShlpbuilolTg COM
parv When the Sheldon syndicate was formed
many OF the bankers believed that the per sem
-or-cumulative. thirty year bonds OF the snip
building cornpanv would be good investments ana
they were glad avail themselves Of the oLp0I-
fUrity 10 take the bonds al $50 for each Sl.es
bond. with Eve shares OF the preferred STOCK ana
eight shares OF the common stock as a bonus IL
SIS said that the syndicate received many subscflp
tons OF 10000 each at those figures.
The revelation at The SlipbuidlnS nearing iasi
week that dummy directors boys Who knew
nothing about the affairs Of the Shipbuiding COM
pany and the plants IL was TO take over, nae
authorized the issues OF bonds and stocks. mas
raised question in Wall Street as TO the legalltN
OF the issues. and this is causing concern among
the bankers who have acquired blocks OF the secuf