Virginia gazette. [volume] (Williamsburg, Va.) 1893-192?, 1903-11-28
OFFER OF A BRIBE.
Sensational Testimony "a Famous ship
Building Scandal
HOW IS COO,CO) SIOCS is DIyICED
Nixon Ssys Tie Afterward R'eom-
mended sheldon pIan-o her Iss-
tinony.


timony.
New York. Spccial-Testimony OF
q sensational nature was introduced
At the United States Ship-buiidinS
hearing which was resumed Tuesday.
During the course OF his redirect eX-
animation OF Lewis Nixon. president
OF the Shlpbunding Company. Mr..
Untermeyor. counsel for the complain
ants. brought out from Nixon the
statement that Of the s5.OOooSo ad-
ditional stock issued when the com
panv was re-organized 70 take BETH
chem Company. 100000 went 10
Max PAN. Mr. Schwab's counsel. ara
s. 600 GOO each to Mr.. Nixon. Nr.
Dresser and the Trust Company CT the
Republic. leaving 100000. the dis
rori.icn OF which ne tii not konN- lie
dis not know whether Mr.. Schwab OBJ
sasncd it, * was al % brought cut that.
~ th- time the sheldon rc-orEan. "a
.icn plan was under C0nsidera i~n,
VI. Schwab offered 10 purchase $780,
600 bonfs. with the acCompanr
hcr',s OF $4,000 shares common. AMI
%. 600 shares preferred stock. issuel
fo Mr. Nixon for 500. 1000. while the
market value was fer less than TINS.
Nr INT rmc-er making the direct
CHARGE that this was in the nature or
a billie 70 induce Mr Nixon - agree
20 the SNcifcn plan Of rcorgan zato1
instead al the plan for an aesc7 smcnt
n stock. which ne had previously ad-
vocatei.
The Offer was shown tn two letters
q Mr.. Schvlh - JOS II. Hca4icv.
dated May 26. 1903. copies OF which
were introduced I'm evidence. Mr.
Hoarlcy. it was testified. h~i con-
Quoted the nc~ctiati - with Mr..
Schwah. whCn Mr.. Nixon was en-
avcriUg 90 persuade Schwao % nc
rofo % the a-seesu c0t ri07 and had.
after the n~nncerl urged NiVou 90 nc
cofc 20 the sheldon plan. Nixon said
that az Hcalicy' s request he had done
SOL
TIE letters orc Us follows:
"prc.fFt1 tie United S-o'cs S1 p-
/ rr.lffrE rc-Crr ui-1tCn iS perfected
+ ro--rv ~ra~9r 90 ~ take ana boy f1r
+ srCa Goo or rr-+ r-crtra~r bonds 0f the
f United S.atrs SriD-B-niiug Com~anv
f o. COCO shores cf preferred ana . ul.
. sha~os OF common stocS. for tho s~m o
T eco COO. ul~s interest on said bonds. on
2 or before Tcccuber 1. 1903. sad bon IS
and st0crs 20 De Co0o- ted Wit
Nessrs. Mcintyre & Marshall. "a Bro 3D.
way. New York. and 20 be eNchan
for securities 81 the re-org7ni7e'
ccup7ny. as design7tef by agreere1
issued by the reorganization commit
tee.
(Sirnen &C. NJ SCHWAB."
Providing the United States ship
Building C0mnanv re-organizat' on d
perfected 7 hereby guarantee 10 pa,
20 your order $40 900. amount OF nay
ment which has been made 20 the Shel
don syndicate on subscription o
800 600 made by Lewis Nixon. I ais
agree 20 have said subscription place
10 NY account and guarantee 20 hav
a complete release iss~ed by sal
Niyon. BY said Sheldon svn5i~1te.
CS'gnedl &C. ". SCHWAB."
~After the date Of these letters a.
or did not Nr. Hoadley get you TO az
ccDt this plan?" asked Mr.. Untei
never
"Mr. Nivon evnlained in answer tbs
Mr. Foo8lCy advised him 10 consent
ire Slellun re-Ofca ulZ0 I on Oe avs
Mt. Sohwah bad refused % acce~t n
assessment plan ard that ne fNivor
bad ihrereupon W.T. item letter recon
mending the SNelfcn pl0n
AS - my der wing any nroqt fro
the t-susactiCn. that is nonsr n So % sa'
. Nr Nixon. THE transaction concerl
b ca Others and I prefer that they shou
tell a."
Mr. Nixon testified 20 writing 10 N
Schwab later and obtain ng from him
. letter con6rmatory % the proposal
re letter o. Nav IS % Nr. Ioa q
Mt Schwab's letters stated thar a
proposal was contingent upon the 81
cess OF the SHELDON re-organizatis
plan and Mr.. Nixon said that he tn,
Z lei the matter drop.
= Witness said. in reference 20 q
. sheldon plan. th1t be felt greatly
ritated' because he thought TIE pres
70 dent OF the shin yards comnany p,
E not been consulted. End reiterated b
- staten ent at the previous hearing ~
. BIS only knowledge OF the reorganf ?
ton rlHn bad come from conversatio
( / with Mr. pam