New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-24


derwriter for 100000.
VALUE OF CONFINED PLANTS.
Referring TO the prospectus of 1901, Mr.. Nixon
said that it did not include the Bethlehem com
pany, but did include the Newport News COM
pany. He said he had faith i'm the estimate
made by Admiral Bowles. then Naval Construc-
tor. that the value OF the plants combined
about S45.0O0Oe0
Canda property desirable? Att was thought that
bonn mad, S oS plant al %ash special hfngs could
bnation The works We're on the Arthur Kills.
Q.-was the plant well situated for drydock pur-
poses? Al would not have advised placing
Q.-What was the standing Of Naval Constructor
bowles at The time he made his report on the
constructor in this or any other country. He was
construction and designing in the navy l wish TO
state now that before Naval Constructor Bowles
reSary o. the NaTI No s &C., Goi t Oh me eel
unInh OF dolns that without first obtaining such
Q.-As TO Mr.: 1oung's commitment paper. did
YOU know anything as TO commitment regarding
Alexander & Green? AIR. Young said 1t was
els this paper signed by you and Mr. Young?
PAYMENT TO ALEXANDER & GREEN.
Mr. Guthrie placed in evidence the following
letter OF June %. 1902. TO Alexander & Green.
lawyers at No. 40 Broadway:
Dear sirs: For all services which you have rem
ure0 10 US IN the past relating 10 the combination
Of shipyards and for your services in connection
With the organization OF the United States Ship
49,
Fifty thousand dollars par value OF the FIRST
me fnfted eT cent and sinking fund bonds of
one hundred and fifty thousand dollars par value
OF preferred stock.
one hundred and fifty thousand dollars par value
CAn Of the above to be delivered TO YOU as soon
Twenty-Five thousand dollars in cash (condi-
tionaD Yours truly JOHN ". YOUNG
LEWIS NIXON.
oo:-As TO the commitment to the Mercantile Trust
Company of $4,000 in cash? AIR. Young gave
left the paper with me when he went abroad
Q-Mere any OF these commissions paid? A-No.
amounting to over S4Oo000o which you signed with
ing company and the undorwriting.
u0t1Mhat did you know in June. 1902, to the
eTal times and had inspected its manufacture OF
o.-Why was the acquisition Of the Bethlehem
I4thI OF enormous value 10 the combin atom? A
It would be useful o fdPRng ana as frSr them oI
own foIglngs. 1t would help the entire combna-
,Q.-Was there in the country any similar plant
! that could be acquired in June 1902? A.-No
o-Is it not a fact that its earnings had been
a. 9,.Were not its earnings near s2co,co in the
EARNINGS az5m
9mWhat were its earnings in the last year? A
Aoout 800.
United States IN the year following June 1872?
A-The condition. except in the Lake region. was
raised the price Of labor. Then care demands by
ing output and increasing cost of ships. AS a re-
suit the Cramps had TO be helped out for 81 oOoo0
on the shipyards inevitably increased the cost.
shpyas Al hnd an amy 9r Of fsT 5e
c9-W ben was that? A-Just before the United
was offered 100000 in cash before Mr.. Young came
back but reused t TO accept i because had
$500 as an option was then presented 20 me. but
Q..-That did not Include the Moore property?
Alt did not. Simply the Crescent yards.
schwab 70 a directors meeting before or after
reorganization was published. "i'er '"e PA" u
.Q.-Did you send letter to Mr.. Wetmore in
ODD it have attached a letter to Mr. Living
ston, vice-president OF the Trust Company OF the
Republic? Ayes.
The letters were placed in evidence, against
Mr.. Untermyer's objection.
Odd you then believe that the reports Of the
accountants were true? Al did.
ODD you know OF report OF Mr. Folger.
accountant, regarding the Union Iron Works? A
Odd you talk with AIessrs Dresser and Lv-
ingston in October, 1892 and did YOU know they
were trying TO obtain market for the merit
Odd You know they we're Obtaining new q re
ports from accountants about the company? A
1 know such reports were being received.
Mr.. Guthrie placed several reports in evidence.
Mr.. Untermyer Directing
ODD the Trust Company OF the Republic about
october I. 1872, issue a statement about the ship
building company? Alt did. The financial state
lnent was prepared by Mr.. Livingston and I had
no part in its preparation, but / had written n
letter stating my belief that soon as the shin
Yards had been brought in touch with a central
management their earnings should increase al least
S50&0c0 annually.
Mr.. Guthrie had marked for identification let
ters which Mr.. Nixon had sent TO Mr.. Schwab
on May and May % the first urging that
some plan OF raising money for the shipbuilding
company be put in operation at once and the
second promising support Of the reorganization
through the Sheldon syndicate. Without having
the letters read but referring to them. Mr.
Guthrie asked:
In your letter Mr.. Schwab YOU asked
that matters be brought to head as quickly
as possible?'
Yes the witness replied, smiling grimlv
July l approaching"
o-And YOU mentioned the fact that the COM
pany'S credit being impaired? Ayes: there
reports in the newspapers. and ! felt that
of the articles we're inspired
Q-You suggested that the banks carving che
companys loans entitled to informa ton 90
IS prevent Observation-Disclosures? Al did
Q-When did YOU feel that working ca pitai
would be required TO continue the company? A.
About the time OF Mr. Schwab's return from Eu-
rope, in March.
WOULD HAVE BEEN NO TROUBLE"
Q-And because Of the critical condition OF tbs
Ayes. And If had obtained the & 900 600 PROMPT