New-York tribune., 1903-06-13
NIXON DENIES CHARGES.
Plan NOT ABANDONED.
@. R. Sheldon Says Bethlehem Steel
Company Is the Moneymdker.

A long confer ence of the reorganization COM
mittee of the United States Shipbuilding Com
pany which consists of George 4. Sheldon
Charles s. Fairchild John z. Borne, Max Pam
and Charles w. Wetmore, was held yesterday at
the office of William Nelson Cromwell, OF coun-
sci TO the committee, to discuss the application
made by security holders of the company for the
appointment of receiver. Mr. CROMWELL
speaking for the committee. denied after the
conference that an abandonment of the reor-
ganzation was contemplated because of the re-
ceivership proceedings George r. Sheldon,
chairman of the reorganization committee. said
We have no fight with venders or promoters, and
faot n1e tb helg nat 10 s say we fonpd II and put forth
ofaa of an' ~n''H We 'nousH' was l0' 'D' ''0'
It is fact tha. every bondholder who has come
here and learned the exact situation has hao no
objections to offer to the plan e+aa, from
the United States shpbuildng Company is as
pang rom 4 he Gned P sfafa stee
M sT n ssee and MP sebwab Stands IS ready
to to take tax 81 i 90 SyeG at any @ 6 but b nc 20 Of ali
concerned
Charles NJ Schwab, against whom serious
allegations are made in the bill of complaint
was out of town yesterday. Lewis Nixon, presl-
dent of the United States Shipbuilding Com
pany said in response to statements made in the
bill of complaint that he had not been a pro-
moter Of the company; that he had not assisted
in the preparation of the financial plan; that he
had sold his plant and business as going con-
Germ, and that he had not received an exorbitant
price for his plant. Further than this ne had
nothing to say Others affected by the state
ments in the complaint he added. could answer
for themselves
Samuel Untermyer of counsel for the COM
plainants in the proceedings against the ship
building company, said:
A SECRET UNDERSTANDING.
From an examination of this bill of complaint
filed in the shipyard case II appears that the
charges of corporate mismanagement are much
more serious and specific than was at hrst sup
posed. 1t is charged that, although Mr SchWao van
shipyard Company until after the first mortgage
bonds had been underwrtten there INA Tas soHfd be
done, reached at about the time ne bought tie the
subscribers 10 the bonds had any hint OF such u1.
del standing The company as at hrst @organlzea @ at
common stock The subscribers TO the Sl60NoN OF
first mortgage bonds supposed that the combination
1t is charged that after they had subscribed for
out their knowledge or consent. by which he OBJ
tanned S30.9O,000 in securities over and above
equity in that plant which had cost him not to
and persistent MISREPRESENTATION by the organ, @
izers of the company as to its assets and earnings
the Stock Exchange is alleged to contain misrepre-
sentations. There is also attached statement
October last, containing like Misrepresentation
which are charged to be false
SAY IT WAS TO AVOID EXPOSURE.
Some of the other allegations in the bill Of
complaint are that large quantities of the bonds
and stock of the United States Shipbuildlng
Company have been issued to its directors and
TO others without any proper sufficient con-
sideration; that six of the nine directors Of the
company have been named by and represent
Mr.. Schwab, and that the president Of the ship
building company who has approved and rec
ommended the adoption of said plan of reOr
ganizaton. has been induced to do SO in the in
terest of said Schwab, with the view of avoiding
the investigation and exposure of his conduct
by the court and through a disinterested re-
ceiver, on the express or implied understand
ing with said reorganization committee that If
it succeeds in carrying out its plan neither he
ror his co-directors will be prosecuted for their
misconduct and that restitution will be
sought from him by reason of his or their acts
or omissions in connection with the organization
and management of the defendant (the United
States Shipbuilding Company