Fort Mill times. [volume] (Fort Mill, S.C.) 1892-current, 1903-12-02
OFFER OF A BRlBE,
Sensational Testimony III Famous Ship
Building Scandal
now S. COO,CCj STOCK IS DIVIDED
Nixon Says He Astcrward Recon-
ricndcd sheldon Plan CIher Tes-
timony.

New York. S3ccia! Testimony OF
a sensational nature was introduced
at the United States Ship-building
hearing which was resumed Tuesday.
During the course of his redirect ex-
animation of Lewis Nixon, president
of the Shipbuilding Company. Mr..
Untcrmcyer. counsel for the complain
ants brought out from Nixon the
statement thai of the $5.000,000 ad-
ditional stock issued when the COM
pany was re-orCaniZcd to take Beth
chem Company. $1.000,O00 went to
Max Pam, MIR. Schwab's counsel and
$1,000 600 each to Mr.. Nixon. Mr..
Dresser and the Trust Company of the
Republic. leaving $1,O00.000. the dis
position OF which he did not konw. He
did not know whether Mr.. Schwab OBJ
tanned il. Ii was also brought ont that,
at the time the Sheldon rC-organiZa-
tiOn plan wns under consideration,
Mr. Schwab offered to purchase $780,
600 bonds, with the accompanying
bonus OF 25.00O shares common. and
25.G00 shares preferred stock. issued
10 Mr.. Nixon FOR 500. 600 while the
market value was far less than this.
Mr INT rmevcr making the direct
charge THAI this was in the natpr.c OF
a bribe 10 induce Mr. Nixon t, agr,Ss
to the Sheldon plan Ct reorganization
instead al tho ian for an assessment
of stock, wkicl he had previously ad-
voCated
The offer was shown in 'wo lc'tcrs
Of Nr. Sohw0h 10 Jos II. HoadIey,
dated Nay %. 1903 eopics Of which
We're introduced i'm evidence Mr..
Hoadloy. it was testified, had con
Quoted the nCSotWti,r - with Mr..
SchWah. When Mr. Nixon was ca
Gc3Noring To persuade Schwab to ac-
cCdc to the assessment plan and had.
after the proposal. urged Nixon to ac-
crie - the Sheldon plan. Nixon said
thdt at liOadlcy's request he had done
so
The i9ttcrs are rs follows:
"Provided the United States Ship
building organization is perfected
hereby guarantee to take and pay for
500. eco Of first mortgage bonds of the
United States Shp-Dpilling Company,
25.0OOO shares Of preferred and $4,000
shares Of common stock for the sum OF
500 goo. plus interest on said bonds, on
or before December l. 1903 Said bonds
and stocks to he deposited with
Messrs Mcintyre & Marshall. II Broad
way New York. and to be exchanged
for securities Of the re-organized
company. as designated by agreement
sued by the rc-organizatich commit
zee.
(SignedD &C. M SCHWAB."
Providing the United States Ship
i'uildinG Company REORGANIZATION is
perfected. J hereby guarantee to nav
to your order $4,000 amount of pay
ment which has been made to the Shell
on syndicate on a auhscrir,icn of
100000 made by Lewis Nixon I also
agree to have said subscription placed
TO my account and guarantee to have
n complete release Issued by said
Nixon, by said Shelaon syndicate.
'S'2ncd &C. NJ. SCIIWAB."
After The date OF these letters did
or did not |r. ioaiicy get you TO ac-
ccpt this Plan asked Mr.. Inter
meyer.
Mr. Nixon explained in answer that
.Ir. ilo"dlcy advised hjm to consent TO
nc Sfo'don reorganization because
NJ. S"hwab had refused 20 accent the
assess ncHt plan and ;Nat he (NiNonD
ran ,nr'r' riol "r.t;ou e letter recon-
The sheldon plan.
'Nf - my deriving any nroGi frop,
: toms lr. On. that is nonsense" said
~ r. NI'"u. Tho transaction concern
ten it," '''o'''"
Mr. Nixon testified 10 writing ~ Mr.
"'' 'ht'r and obtaining from him
',' '''F condrmatory OF Tie proDosal in
letter Of Hav &c 20 Mr.. II,a4lcy.
VS. sch hWab's letters .t.t,d tl.+ ~