The sun., 1903-11-25

| " uSiouoo my mttTtStS III Vne 6ylQlCate or
In the properties except upon the proposed
plan or reorganization being successfully
In the meantime. and in view OF the oppo-
shnop sition now existing. see no reason Why
| truly, c. NJ. SCHwAB
Mr.. Nixon after the hearing yesterday
made pubiic letter he received on Nov.
13 from Mr.. Hoadley, enclosing the COR
respondence with Mr.. Schwab and explain
ing his action in the affair. Mr.. Hoadle y
| IN ms letter saysehat on account of illre q
II is impossible for him to lend you or Mr..
| Schwab any assistance in untangling this
! unfortunate affair"
He went on to say also that all Of his
| propositions to Mr.. Schwab were based
on the condition that Mr. Sheldon was "to
take charge Of the financial operation Of
his associates join Mr.. Nixon in raising
H,000,0O0 under the assessment plan OF
reorganization favored by Mr. Nixon,
assuming, of course, that Mr. Sheldon
! Will stay in the saddle and attend to the
| financial end of the corporation" The
| letter goes on:
! r,I wonld suggest that you arrange to see him
mi MI SSheldonl or have some one else see him.
sh' o as Tsn q
sate ths property at the least loss to the
security holders
| approve of reorganization is unjust ms did
| H. \ Tor your best interests, and y was, after
the best favor possible. that brought YOU
ns, and which that night / sent to Mfs.
| Schwabs house, and as stated 1t was after
Mr.. Schwab had agreed to comply with my
tSsguess sge in m order to protect me from loss in
| ana were to be made TO you at that time.
naer any other consid liberation | could not,
IN Wt6 6}ustiee bs to myself have anyth!nx to do
truly. JosFpu a. HoAplEY.
MIR. Nixon testified that he had refused
aiterward to have anything to do with the
Sheldon syndicate. Il was treated with
very scant courtesy" he explained.
IL was brought out by Mr.. Untermyer in
| his further questioning of Mr.. Nixon that
ID. Le Roy Dresser had suggested tacking
on 5000 600 more capital to the company
| needed to acquire the Bethlehem company
| and that that was how it came to be fixed
| at $45, 100000. Dresser, the witness stated,
had suggested this one day on the way to
Schwab's office, as he said he thought the
| Trust Company of the Republic ought to
| have more compensation for all the work
| 1t was doing
-Mr. Dresser said" Mr. Nixon testified,
that lie would take care of me If he got it,
but told him should turn my stock back
| to the company"
or the IS 900, the witness said, 81 ,OOO.-
! 600 went to the trust company, 81 OO0, 600 to
Dresser individually and $1,OOO,OOO to him
self, which he turned over to the Sheldon
stock, he said, 81 600 COO went to Mr.. Pam,
and he did not know who got the rest He
had no know edge that It was Mr. Schwab.
After the purchase Of the titles to all the
subsidiary companies. Mr. Nixon testified,
those companies were leased back to the
former owners. They did business as be-
fore. and got credit on their assets although,
as Mr.. Nixon admitted, these were owned
by the parent company
Mr.: Untermyer wanted to know how it
was that in the at mn1a n "a Stoclf
Exchange the assets were put down as
owned by the parent company, whereas
the constituent companies were obtaining
credit on them. The creditors of these
assets belonged to the companies. Mr..
Nixon replied:
You expect me to answer something that
Judges will be struggling over for months
cant do it, and | won't
In June last the witness testified, he had
figured out bids on two battleships for the
company, but Mr.. Pam, then chairman Of
the executive committee. had other bids
put in, and when the bids were opened on
June 3these proved to he the highest. Mr.. |
Nixon said that his figures would have OBJ !
taned both boats at a good profit for the |
company. 1t was then that ne handed in
his resignation as president.
The Bethlehem company, although owned
by the Shipbuiding company, put prices
on some things so high. the witness said
that the constituent shipyards companies
Olteu udu 10 Duy IIlateThlS OutSlue. |
The agreement of sale between Morgan
4 Co., on the one hand and Schwab and
Dresser and Nixon for the Bethlehem com
pany was put in evidence yesterday. 1t
was dated July 2, and shows that Morgan
Il Co., as Syndicate managers" owned
299,9lO Of the total Of 800 900 shares of the
company. Both Nixon and Dresser have
testified that Schwab had told them that
he owned these shares.
Mr. Untermyer wanted the witness to
say that he and Dresser had really given Mr.
Schwab 3lO,0OO,OOO bonds and SIS ,OOO,O 900
stock for the 81, ,24o, 900 in money with which
Morgan d Co. were paid. but Mr.. Nixon
wouldn't. He said as before. that he did not
underst and the deal, that he had not en-
gineered it and that he had always assumed
that Mr.. Schwab did own the company.
A resolution Of the executive committee
Of the company of Jan. 20, 1903, calling
upon the chairman and the counsel to
recover from the Trust Company of the
Republic $3.50 900 bonds and 81. 500, 600 in
each kind of stock it then held. was read
Dr. Dresser did not know anything about
it although he was then president, not did
he know whether action was ever taken
to enforcethe resolution.
The hearing was adjourned yesterday
until Dec. g. This gave rise to more rumors
that there had been settlement, but IL
was stated that the long adjournment
was due solely to Mr.. Guthres having
legal engagements out of town.