| Show NIXON PREDICTED RUIN Testimony in Shipbuilding Company Case SCHWAB OPPOSED HIS PLANS History of 1ho Nixon r Check Shreudod in Mystery Testimony of Witness Developed Fact of a Discrepancy as to Estimated Earnings I I I New York Ocl 21 Lewis Nixon occupied i I pier the witness chair again today at the hearing before an examiner of the United States Shipbuilding company and gave much valuable testimony concerning the mich tCtmlny cIcernlng lll general affairs of the corporation He lestlticd that he had opposed the Sheldon organization plan mil had as a counter coun-ter proportion urged that the stock be assessed In order t raise the amount necessary to cave the combination from default and bankruptcy His plan for assessment as-sessment was opposed by Charles M Schwab holder at that time of S OOOOWX of the stock who accordlntr lo Mr Nixon Nix-on declared that the stockholders would not pay the asucssmenl SCHWAB OPPOS13D PLANS I Mr Schwab so Mr Nixon swore de dined to put up any more unless the I Bethlehem bonds were clvon preference as a len upon the shipbuilding plants to I be first mortgage bonds WIDE DISCREPANCY Mr Nixons testimony also developed tho fact that there won a wide discrepancy discrep-ancy as lo the estimated earnings in letters let-ters written by Treasurer Gary to tho members of the P reorganization committee I commit-tee and Samuel l Untermcyer counsel for the bondholders nkoii if it I t did not show that there had been tin attempt TO mln Imlr the value of the ship vards and magnify the value of the Bethlehem plant hut the witness would not bay so MYSTKIIIOUS CHECK I Much time was taken up in an unsuccessful unsuc-cessful effort to get at the history of n mysterious check for 52 0000 found at the Trust Company of the Kcpublio It was drawn to Lew la Nixon or ourselves on the I same day the checks were made out for the payment of the cash given to the vendors for their plants and property Mr Nixon swore Unit he had never seen i lie check before and that he knew nothing i noth-ing of its history PREDICTED FAILURE Mr Nixon testified thai lie knew as early ear-ly as last April that 1 unless the cojnblna tion could get some money from tins Bethlehem I property or elsewhere It must fall and fl J rf ills associates on the directorate di-rectorate that they must husband the rc source |
