The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-06-23
DENIES 1T
ABSOLUT
Lewis Nixon Makes Affidavit
in Shipbuilding Case.
a RECEIVER IS WANTED
Judge kirkpatrick, Before Whom Case
IsBeing Argued. lnjects Some HUI
NOR Into the Proceedings-Mr.
Schwab Well Secured.
A RECEIVER IS WANTED
y
--7-- e7T|7
(By Associated prcss.j

>
TRENTON, N. T., June Enlargement
was commenced in the United States Cir
cult Court to-day before Judge Kirk
patrick in the case Of the application OF
Roland R. Conklin and others for the
appointment Of a receiver for the United
States Shipbuildlng Company. Each side
had big array Of counsel. Representing
the complainant were r, V. Lindabury,
Henry Woolman and Henry Untermcyer.
Counsel for the Shipbuilding Company
were Charles L. Corbin, Attorney-Gen-
eral Robert II. McCarth and Charles c.
Deming.
The case was opened by Mr.. Woolman
reading at length the bill of complaint,
the substance OF which has already been
published. During the reading Mr.. Wool
,man brought out the facts that Charles
I'M. Schwab had received for the Bethle-
hem Steel Works s3o,00o,ooo, made up as
follows: s1O0OO,00O preferred stock, &c.,
900 900 common stock and $4,000, 900 of COL
lateral bonds.
Judge Kirkpatrick asked what. the col
lateral consisted OF and was told that 1t
embraced two mortgages, one on the
Bethlehem plant, and another on the ship
building company's entire property. He
made a humorous comment2to the effect
that Schwab was we'll secured
When the reading of the bill Of COM
plant was completed Mr.. Woolman began
reading the exhibits In the case, one of
which was statement issued by the Re-
public Trust Company containing very
1iattering statement as to the company's
condition. Mr.. Corbn objected to this eX-
hibt as not properly before the court.
Judge Kirkpatrick remarked that th9
statement seemed to favor the defendant,
hut bot OF nm 70 ypn ip,p1 afa
as what the court wanted to get
at was the company's present condition
and not what somebody else thought or
said was its condition some months ago.
SWEEPING DENIAL.
When Mr.. Woolman had concluded
reading the bill of complaint and the
accompanying afidavits, Attorney General
McCarter arose to read the answer and
also the aftldavits of Lewis Nixon, the
president, and A. G. Gary, secretary of
the company.
The answer. in the main, is general
denial of the salient points of the bill of
complaint, 1t denies absolutely that there
was any insolvency, and states the COM
pany was able to meet It's obligations.
1t was stated that no arrangement had
been made whereby bonds were to be is
sued on account OF the Bethlehem plant;
that the plant was not separately ac-
quired; that 1t was included In the general
purchase, and that the promoter was nell
Their Nixon nor Schwab, but John W.
Young; that the value paid was matter
OF judgment, and that good judgment had
been exercised In the purchase. It was
denied that any excessive prices had been
Paid, and the company denied that 1t had
made any exaggerated statement as to
the companys condition. The company
denied absolutely any responsibility for
the statements put out by the Republic
s,t, -. t.-t,,1
the New York Stock Exchange, 1t was
claimed, was given In good faith while
containing some errors that We're after
wards discovered and that We're inmate
rial. 1t was denied also that the COM
pany was under control of Schwab along
the lines indicated in the bill of COM
plant.
The affidavit of Mr.. Nixon was sweep
denial of the charges in the bill of COM
plant, He said he had absolutely nothing
TO do with the conception or carrying
out of the formation of the United States
shipbuilding Company. The promoter,
what he (Nixon) did was to give Young
an option on his own plant,
ENTIRELY SOLVENT.
Mr., Nixon denied that he, with Others
directors of the company. or anybody
else, employed the Trust Company of the
Republic, or through or by their means or
agency, caused the publication OF the
statement put out by the Republic Com
pany He said he never saw the clrcu-
lar until after it had been published, He
denied also that there had been any ar
arrangement between Schwab and himself
whereby Schwab should acquire the
plant of the bethlehem Steel Company
and thereafter sell the same to the ship
building company at any enormous profit,
Mr.. Nixon also denied that he had any
arrangement or understanding with MIR,
Sohwab.
The affidavit Of Mr. Gary was to the
effect that the United States Shiphuildng
Company was entirely solvent The case
will be argued tomorrow.
tWAsHINGToN.-4A strong plea Cor las,
" Metcalf who was RECENTLY dlsmis sed