The Caucasian. (Clinton, N.C.) 188?-1913, 1903-10-29
NIXON on TEE STAND.


New York. SpeeiaL-Lewls Nlxoa
~ho. from naval Constructor. beoans
BUILDER OF ~srshlPs AMI n. prcSlsra.
o. the United States shIpbaIldin,
Company. was the rrtnelpal ~ltaexa asI
taH continuation OF the hearing os.or,
Examiner Henry u. oilphaai A 70 N.
rsa!rs o, the de,unct corpora,ios
named. He did not aalsL hss recital
but in the three hours that he pAs 90
the stand he went over nu-h O. the
history OF the corporation ani ths
acts OF the men prominent In lis his
tory. He said Max Pam counsel 10,
Charles II. schwab. had suggested o.
number OF the directors for the salp-
builtsns combination. and saii thai
the proposed expenditure 90 z. So3 0oS
for Improvements NJ ;be p-ihiehrrI
Steel Works had been approved ny the
directors over his protest and warninf
that the action might. in the end. seav.
the main corporation withau, fund.-,
and wreck IL. SIR. Nixon swur. tha.
sfter this expenli:are was app-5yct
he made several attenpis TO secure )
meeting of the DIR ..ers Tnd tha. lir
Schwab had finally told him that ~,
had instructed the direotors ID remain
away from a mest!pg.
An effort was m.de TO shox inat
the directors ell trf az the suggestion
OF Mr.. Pam had no; been kioldcr~
but like the young men OF the Cnr-
poration Trust Company. az New J-r-
sey. who served IN the early DAYS oi
the combination. hal been given shares
enough TO quality. but Mr.. Nixon mad
no personal knowledge OF the tranSac-
ton
Mr. Nixon testified that hy resnln-
| tion OF the directors. passed in Dc.era-
Der last. Mr.. Pam was given a salary
OF $4,000 year. whiHh was dated back
10 the preceding Se9t"n:Er- Ilc a!s7
| testified that besItes his bonus as IN
underwater, and the sums paid for the
| Bethlehem properly. Mr. Sshwab -
ceived share OF the promotion money
part OF which he gave 10 Charles
Gates. OF the brokerage firm OF Har-
ris. Gates & Co.
Samuel Untermeyer. for the bond
holders. endeavored ID prove by the
witness that during HI negotiations
for the purchase OF the constituent
plants no one looked after the inter
ests OF the shipbuildi2g comraEics. lu.
that the figures and fepor.. OF Ionn
| w. Young. the promoter were accept
cd. Mr.. Nixon said that no indeucn-
dent appraisement or Investigation
had been made. and dis claimed all per
soma! responsibility fo- the nego' Ia
tions and financial part of the corh5l-
nation plan.
IT was brought out in the testimony
Of Mr.. Nixon that the statements a.
to the personnel OF the directorate hai
been made in the pros rcctus issued in
June 1898, and that Young had taken
the options in his name. According Il
Mr.. Nixon. secrecy was observed IN
paying the vendors only because Pro-
moter Young did not war; them 10
know what was being paid for each
plant. There has been muca mystery
over the cutting OF the checks given
to the vendors. and il is possible that
the explanation OF Mr. Nixon will clear
1t away.
Charles Canda was the only other
witness of the day. taking the stand he
fore Nixon was called. He testife
that the Carda Manufacturing Com
pany. for which 81 100 coo in cash ani
securities was paid. had plant a,
Carteret. n. J.. built for the manufdc-
ture OF car wheels. but that al the
time OF it's purchase it was turning out
some experimental work in motor car
riages. Ii had made about 100 MA
chimes. and employed about 40 men. He
said that plant would have been use
full in connection with some O! the oo-
nrations OF the ship-building comb.na-
tion.
Charles NJ Schwab and Max Pam'at-
tended the hearing yesterday. They
came to be sworn. but remained i1.er-
psted listeners TO all the testimony
They will testify later in the week