1903-10-23-New York Times-Nixon Put Faith In Pledges From Paris
New York Times
23 October 1903, page 14
NIXON PUT FAITH IN PLEDGES FROM PARIS
Tells Why He Signed Notes for $4,000,000 for Shipyard Trust. Testifies as to the Means by Which the Combination Was Expected to Profit -- Schwab Objects to Adjournment.
Another day of testimony from Lewis Nixon in the shipbuilding case resulted in his telling how he came to assist Mr. Dresser in the signing of notes he could not pay. The notes, for money borrowed in behalf of the shipbuilding company, represented face values aggregating $4,000,000. Mr. Nixon said he knew he could not pay in the event of a failure to secure the French underwriting for the Shipyard Trust, but he never thought of such a contingency, trusting implicitly in the assurances cabled from Paris, and the statements made to him here that the foreign scheme was all right.
$250,000 UNACCOUNTED FOR.
His testimony as to the available cash of the trust at the time included these figures: Total on hand, $7,750,000; paid to vendors, $6,000,000; in treasury remaining for working capital, $1,500,000; balance unaccounted for, $250,000.
Mr. Untermyer next caused to be produced a memorandum of "commitments" left by John W. Young with Mr. Nixon when the promoter went to Europe. Commitments meant commissions for promotion. Mr. Nixon, in answer to a question from Mr. Guthrie, testified that he was sure the commissions, though planned, never had been paid. This was regarded as a distinct point scored by the lawyers for the defense.
After the hearing was adjourned for the day Mr. Guthrie said Mr. Untermyer had the compy of the memorandum introduced in evidence. Mr. Untermyer, after searching through his papers, said he could not find it. The official stenographer said he had left it in the office of Mr. Untermyer. It had not been found up to a late hour. From memory one of the lawyers made public the following items of the memorandum:
- C. J. Canda for the John W. Young Syndicate--$100,000 in bonds and $200,000 in each kind of stock.
- Mr. Ellis, Col. John J. McCook's private secretary--$100,000 in securities.
- Mr. Gates to Mr. Schwab--$50,000 in bonds and $100,000 in each kind of stock.
- Alexander & Green, lawyers--$20,000 in cash, $50,000 in bonds, and $150,000 in each kind of stock.
- Charles M. Schwab--$50,000 in bonds and $100,000 in each kind of stock.
- Charles R. Flint--$25,000 in bonds
- Francis T. Bowles, formerly a Naval Constructor and now a Rear Admiral, who made some estimates for Mr. Young preparatory to the formation of the first proposed shipyard combine--$10,000.
- Mercantile Trust Company--$10,000 in cash and some securities.
Mr. Nixon could not tell why the commissions had not been paid, but he said he knew they had not. He himself ceased to act under a power of attorney for John W. Young about that time, and later Mr. Young's representative was W. C. Andrews.
