New-York tribune., 1903-06-14
WR. NIXON'S PART IN IT,
Why He Resigned as Head OF the
Com pdng.

States ShlpbuNding Company oih"iS'
from indifference or intention. He gives par
ticulars regarding the organization OF the coiii=
bination. No vender had any part in making
nm +ba financial plan of the new company, he
saws Every opportunity was given TO ac-
coun+ants to estimate the condltloh u
the companies entering into 'he '
bination Errors were made he aus
in estimates of asset values ana pioH9
The company has been embarrassed pS Ia"
of working capital. The price OF material e'iu
the cost of labor had increased, too' Since 'he
orsanization The Bethlehem company hao oe0ii
purchased in order TO have an armor' gun anu
forge plant Mr. Nixon in ending MS s'ale
,oen+ saws that as he could not have the lib
ertv of action he wanted in the prdcCCai' as
distinguished from the financial, management OIL
tho cop,nanv. he was not satisfied to remain
Ionear at its head. and had resigned, the resls-
nation tn take effect on Jnly l. Mr., Nixon
statement follows:
LEWIS NIXON's STATEMENT
feel that from indifference or nenton6 tstss tats
Shipbuiidine Company affairs and that d Statement
relative the matter Is necessaE tss movement had
been revive the idea OF cnnveTsaton
Win Mr. Young last summer in which he Sala
that he had returned from france nee bsd M' arranged
writing for large sum, and that ne I nT Tist m COM
with Mr. Dresser the president Gf tne 6ateyer add
pany of the RfPGbS as 70 needed e2t was at first
most reluctant again give an option, as tebf be
ffaL 9aVg nut ' consented with general der
standing that if the Others would 5a anv part in
making up the financial plan OF the new collPaffs fe
The plants were all sotd as sG such
debtedness being discharged out OF Il was
m nad al Inv the Company itself before the plant was
turned Every opporhfnnoyy h oyyesnizers Md Of the
new company to acquant themselves with tne * con Oh
dition of the business at eaeh pdin piIDdi full exai-
ways necessary in such cases lncue . as @ refised
nation books. and no Information r9iIerS Ma2
Long term contracts. such as we have b IN IaPt
building suffered greatly d9fins s irdustrai
revolution with steady rise Of pTlce OF apof o " so
cost of material and especially S sSce the forma-
ton f the United States shipbulding Company;
Hence most the smaller rnargined cohtpaft col ti
profits have been changed to losses ana an to esyl
mated profits reduced This Is oide fhe COM
+in6 III i1 that have been in financial difficulty owing
TO the conditions prevailing during the last Se8i'
ERRORS SAID TO HAVE BEEN MADE.
The errors referred TO by MIR. Gary were NANNY manly
in the estimate of asset values ana IN tne baWe
not materiazed. While experience has SHOWN tlat i
the estimate of half million increase In earnings
eventually this cannot be relied on Wnlle tne soT
ties larger working capital money for repairs and
until III the tb pans UI With 6e Of local
personal responsibility can be counteractea. 30 Tho
compsTv nosG provided :. million and half of bonds in
the treasury with every expectation Ihan tlTse cani
tai The unfortunate complications attendlng me
snch am extent that they could be sold at
proper price and hence could not De useq' ort 80 tIT
capital $1,5000OO in cash, sum InahIestSE mani iS
inadequate for its volume Of business as ifT tb
oneratons of the company. Five millions of work
capital ogs ss0T sTe in in bonds t69 s left
in cash and l. qgick M o assets 81 @ 3 S9 @ ~
The accountants, I find, were instructed to re re-
the amount Of contracts 9 YORK aor ss about m s
000 COO This gave a measure OF the capaclty ot
fne es f Work rR had been turned over volume of
contracts remains practically the same. Mr cary
the vessels ia various STAGES Of fompeon hs
gave the of money which IT is esIInaoed III o
will be spent complete them. namely S4'o's44S'
WHY BETHLEHEM CO. WAS ACQUIRED.
To perfect the organization by having within the
company an armor gun and forge plant the be'h-
AS the companfes had all to be practically
ganized and brought in touch with central man
agement, some check in production was ineVltaole;
be Tae est fee ne@ esrnnss of the BetRehem
were Looked upon as as anal a4 eaTnngs not on cent
however has been given the company as YET oy @ .ne
sDeht in providing additional facilities take
Of the enormous volume of work coming to, to IT
against the company But 1t is stated o 6y d the & TH
be reeased yeary from the earnings
T3ethIehem for the necessary purposes of the new
company. ] naturally look upon TINS reoIgaIlZa-
hondhOlders. change which anectS the ValuS
of their securities affects mine IN the same way
I gave nv approval only because OF a sincere con-
Was the best that could be obtained, and from an
operative standpoint a radical reducuon. IN IAeu
charges should certainly add to the stability OF the
preferred stock and increase It's attrac'Veness
investment. =, - x
The assets and contract profits of al! the con
stituent companies have been cut III a most utStiC
NeW-YOrk is constantly coming H. anu an
the companies have ample work before them New
money is needed and 1t can be obtained py tlio
proposed plan, and better one has Deeh ad-
vanced a receivership, even II the DondholoeLs
could work in harmony, might lead 10 many coii
DiiCations in connection with government work
With mana cement keenly alive TO the interests
of the stockholders, this should be- the Sheluoh
syndicate controlling such large amount of Sc
curitfes there is no why the new preferred
stock should be of value. ,,,,,
have spent my life in pracucai shipotilolhs
and not being financer nave had but little TO 90
with handling that branch of the companyS DuSi-
ness but have the full the harasslng ana dls-
coura ging effects of the lack OF working capal IN
TO the efficiency they should have and which they
are gradually acquiring. ain not personally IN ac-
cord with the policy of the organizers, my advice
IN regard to taking work and making bios nav
ing been disregarded. In matters pertaining to the
tactical as distinguished from the financial char
acter of the business must have certain liberty or
can be assured me during the process of reorgani
zation the circumstances or the situation
satisfied to remain longer as the heaC. or
the company, and have resigned 10 take eHect
I know these shipyards to be splendid plants
chosen the point of view OF SpeciallZa-
lon, with good rail CONNECTIONS ana Well situated
from a labor standpoint. | could not improve the
facilities as | wished but they can without great
expenditure be placed In shape TO handle efficiently
| do in T1iyapO