New-York tribune., 1909-07-02
NIXON ON HIS NOTES
Says He Signed Them as a Matter
of Form for Mr. Dresser.

Saratoga. n Y. July Lewis Nixon of New
York City. who was president of the United States
Shipbuildlng Company. testified to-day in Charles
H Kavanaughs suit against the former directors
Of the Trust Company of the Republic that he did
not regard loans made from the trust company S
funds notes signed ny him IN 1902 a per-
sonaI obligation.
Mr. Nixon said that when the proposition to
merge the large shpyards of the United States
into the United States Shipbuilding Company was
explained him in the spring of 1902 by John W.
Young. vino promoting the merger. he gave
an option on the Crescent Shipvards. Of which he
was owner. BY the terms OF his agreement he was
to receive S1.20oG00 for his yards. and was 10 be
president and active manager Of the company for
a term of five years On August II he and the
other owners whose properties were to be merged
met in the William street Office OF the Trust Com
pany OF the Republic and we're paid For his
yards. Mr. Nixon sad. he received about $4,000
IN cash and the remainder in bonds and preferred
ard common stock Of the Shipbuilding Company.
The other owners paid in about the same
proportion Of cash and securities.
Previous 70 this the witness stated. Mr.. Dresser,
president OF the Trust Company Of the Republic.
came 70 him early In August. and tated that II
would he necessary II the merger was 10 De ac-
complished 10 borrow money pending the arrival
Of the money from the French underwriters 'Mr-
Dresser" said the witness asked 70 indorse
the notes saying that the Trust Company Of the
Republic stood behind me- I did this as an ac-
cornmodation Mr Dresser. who told me that this
was a mere matter Of form
The witness was unable 10 give the amounts Of
these notes but recalled that the hnal note was
for more than 81 10000.
Mr.. Nixon testified that he not interested IN
tire United States Shipbuding Company as a
promoter. that he did share in any fees for
promoting the merger. and that he was interested
in the proposition only far il concerned the
sale OF his own yards and a practical ship
builder
FIbridge q. Snow. president OF the Home In
surance Company Of New York city. who a
director In tho company. testified that loans
on Shlpbuilding security were never brought TO the
attention Of the directors at any meeting which he
attended We did not know he said. of these
loans until the trial OF the present action.
Herbert L. satterlee. OF New York. who h
director In the Trust Company OF the Republic
and q member Of the Law firm which acted as
It's counsel, testified about the formation OF the
Sheldon syndicate and the efforts to extricate the
company from the financial difficulties in which
II had become involved By the investments Of its
funds in the shipbuildng COMPANY
When the executive committee learned IN Octo-
her that large loans had been made by President
Dresser earlier In the summer II asked Lewis
Nixon president Of the shipbuiding company. 70
renort 10 Il on the value OF the shipbutlding
securities Acting on hts optimistic report. 1t
bavar the steps which resulted in the formation
Of the sheldon syndicate. which relieved the trust
company OF the securities The coal strike and
the strinsency Of the money market rendered this
a difficult task he testified. and made II impossible
for the directors to dictate harsh terms