Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-10-22

pany OF the Republic and handed tneHi
10 the vendors. He did not think there
was any other reason for cutting up the
checks than to conceal from the ven
uefs the price which each received. lie
testified that he had himself promised
MI. Young not to tell what he got for
the Crescent and that he had no desire
70 tell Mr.. Youngs plan. He had a
memorandum showing the amount Oh
the checks, but had destroyed it as the
pest means of keeping the amount Sc
eret. The checks paid to the vendors
amounted to $4,000, 0OO
Thirteen of the checks given to the
vendors we're then produced by repre-
sentatives of the Trust Company of the
republic. Mr.. Nixon was unable to
identify the Hyde checks, but he did
identify the check given to j. and w.
sellgan, presumably for the Scots of
the Union Iron Works.
Mr.. Untermeyer then examined Mr..
DIXON at length as to the debts of the
constituent companies and sought to
snow that in having the books several
llfins examined there had been no one
VINO looked after the interest of the
said that he had accepted the reports
secured by the accountants designated
py Mr.. Young and disclaimed personal
responsibility at the time. lle was not
then president of the company and
While he had general knowledge as to
the value of the plants and the condi-
ton of the companies, he did not have
an aprraisement made by any one.
did not prepare the financial
scheme he testified, land did not
make bargain with a single yard"
He said that ne received $500, 900 in
cash, 1861 coo in bonds and $25O,0OO in
stock for the Crescent property, and
besides that he was given 100000 in
each kinds of stock for agreeing not
to engage i'll competitive business for Il
period of five years. Ee said that he
paid 100000 for the Moore property and
turned it over to the combination for
just what it had cost him.
Mr.. tntermeyer asked about the
debts of the Crescent and Mr. Nixon
spiritedly declared that the Crescent
Company had something more than
debts. He said that it was q valuable
plant. with good property, we'll organ
lied and equipped, complete to do large
Shlpbui!ding contracts, and With many
large contracts on hand. He said he
had put his whole future into the ship
building company, but admitted that in
the past year the Crescent Company
had not paid and that the Shipbulding
Conway had been compelled TO advance
its pay roll for a year. The past year
had, however been fri2htful one for
the shipbuilding company. The witness
said that neither he nor any of the
men named in the prospectus of June
IA, 1902. as directors We're at the time
actually directors and some of them
never did become directors Mr. INTER
meyer read from the prospectus the
claims Of the promoters that the years
profits on the work then underway in
the shiDyards would be 1925, 600 and
that the combination would have a
working capital if $5000,OOO. He dis
claimed responsibility for the two state
ments, although he said that he believ-
ed them to be true at the time. He
said it was possible that stock had been
sold to the public on the strength Of the
first statement. but that the end the
combination only had about SO, 600, 600
working capital, including the bonds in
the treasury.
Then Mr.. Untermeyer took up the al
legation that Charles M. SchWab secur-
ed control of the organization of the
Skipbuilding Company and secured the
passage of a resolution approving the
expenditure of $500, 900 in betterments
at the Bethlehem plant. Mr.. Nixon in
answer to the line of questions said
that Mr. Pam had suggested Mr. Gray
for treasurer. The witness said he had
accepted Mr.. Gray and had disclaimed
a desire to have anything to do with the
organization and management of the
property. He testified that Mr.. Pam
was made chairman of the executive
committee, and in December Il resolu-
ton WAS passed fixing his salary at
$4,000 a year, the salary to date back
to September. Mr.. Pam suggested the
names of Dr. Ward, one of Mr.
Schwab's physicians. Josph e. fSchwab.
f. NJ. McIlvane, Adolph Boree and
Archibald Johnson as directors. Messrs
McIlvane, Boree and Johnson, were all
connected with the Bethlehem property
Mr.. Untermeyer tried to show by the
witness that Mr.. Schwab had given all
the directors named qualifying shares
of stock but Mr.. Nixon did not know
any tNIils, Ol the LlduSdCllOil vi MS OWN
knowledge. The witness said that he
remembered that the question of APP
proving the expenditure Of $2,902G0 for
improvements, had come before the ex-
ecutive committee and the board of
directors. He had objected to the eX-
penditure and at the meeting of the
directors had warned his associates
that such an expenditure might wreck
the company. Mr.. Pam made some
Ranges in the resolution at his request
hut against the protest of the witness
lad moved the previous question and
secured the passage of the resolution
DR.. Ward. Charles Schwab and Messrs
Pam. McIlave, Johnson and Living
slime. We're at the meeting when the
resolution was passed. The witness
said that at the time he was anxious
to receive a deferred dividend from
bethlehem in order that the interest
charges on bonds might be paiG. The
witness subsequently made three at
tcmpts to get the directors together but
had failed. He said he finally teIephon-
Cd to Mr.. Schwab and was told by Mr..
Scliwab that he had told the directors
to keep away from the meeting