Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-11-06

=, APoily 10 OiiC - w.
allegations"
MI. Guthrle said that the United
States Shipbuilding Co. might or might
not nave peen insolvent, but he was
not willing to discontinue the present
line of Questioning at that time.
Mr.. Guthrie asked when the witness
discovered a shrinkage of $769,0OO in
the current assets of the United States
Shipbuilding Co.
Il don't remember that there was
such shrinkage in the current as
sets" replied Mr.. Nixon; there was
shrinkage Of $1,OOO,OOO but l do not
remember how it was divided"
Mr.. Nixon declared that what Mr..
Guthrie termed erroneous entries in the
books were not erroneous. There was
n difference in the methods of book
keeping" he said.
Mr.. Nixon said he learned or
shrinkage of 100000 in the Union co.
before he went to inspect the yards.
Mr.. Sexton was questioned at some
length regarding the prospectus Of the
company, many of the statements IN
which lie considered inaccurate. lie
signed a consent" for a meeting on
Aug. II, 1902, certifying that he was
the holder of 199,9S5 shares Of the pre-
ferred stock Of the company and OF
249,SS5 shares of the common stock.
Mr.. Guthrie then went into the mat
ter of the witness endorsement OF
notes for Mr.. Dresser to raise funds
until the proceeds of the French UNDER
writing should be received.
Mr.. Nixon said that for security
there was given on the notes $2.5Oo,ooo
of preferred stock. These notes, ne
said. were all torn up shortly alter
Mr.. Dresser's return from Europe. inc
witness understood that his llaplilty
would be removed as soon as tne
money from France was received, put
said he could not have paid them IL
called on to do so.
He had signed the notes. he sald,
without any expectation Of being calieu
upon to pay them.
Mr.. Nixon admitted writing a letter
on Aug. 81, to Mr. Livingston. in whlch
he stated that the combined plants
were worth $4O,000,000 and that TINS
estimate was based on the eminent eX-
perts. ~,
"Who appraised the Bath Cor
asked Mr.. Guthrie.
1.-THE owners"
$50 the owners were the eminent eX-
merits who appraised their own prop
erty?" continued Mr.. Guthrie.
mot always"
"Who appraised the Hyde Wlndlass
Co. and the Samuel L. Moore GO.
NAVAL Constructor Bowles and the
mayor of Elizabeth
"Who appraised the Union IRON
Works at $1O,O00,0OO?" :
"Mr. Folger, an expert accountant Oh
the Union Co. =,
"Who appraised the Canda Co."
"Mr. Young"
At this point recess was takel.
When the hearing was resumed MI.
Nixon made a statment in regard TO MS
testimony and reproached Attorney
Guthrie for his line of questioning on
cross-cxamination, declaring that his
questions had been so framed as 10
throw a wrong conception OF ms posi-
tion and to place him undeserVedly IN
a false position and that ne nao peeh
given no opportunity to explain. Inc
referee declared that the questions ask
ed by Mr.. Guthrie were in his OPINION
entirely proper and legitimate ana Or
dered the protest stricken from the
record.
Mr.. Guthrie then resumed question
ing Mr.. Nixon.
He said he had consulted counsel
since the morning session and mad
learned something about the cash atem
of s12S,OO0 of the Crescent Company to
which reference was made during the
morning.
ST took the Crescent yard when it
could not build ship he declared.
while 1 had it, I built 100 ships
Think what 100 ships means. II it is a
discredit to have built up a shipyard
from nothing, I stand discredited.'
81 find regarding the cash item of
s12s.OOO, that 100000 was coming from
Mexico and was overdue. BY little
examination you should be able to as
certain that fact.
"The item of $4,000 was entered as
cash assets instead of as bills receiv-
able. that was all"
Witness was shown the agreement
made with Marris, Gates & Co. for the
sale of the Shipbuilding securities and
was asked if he knew whether any of
the securities We're sold under this
agreement. Mr.. Nixon replied that he
had not access to the books of Harris.
Gates & Co, and could not say. He
himself had sold no bonds of the COM
pany until July first Of the present
year, when he had disposed of a few
"at frightful sacrifice" because ne
needed money. He still had possession
of all the Shipbuilding stock issued to
him.
Mr. Nixon testified to his election as
director of the Bethlehem Steel Co
after the formation of the United
States Shipbuilding Co. He said he