The Savannah morning news., 1903-10-15
INSIDE OF A TRUST.
continued from First Page:

-, that when the constituent COM
hiooies of the shipbuilding combination
pa5 been taken over that all of them
har ma heavily laden with debt, but had
Sear told so later on.
% had not known that they were in
~ when the prospectus was issued.
uS underwriters took up the bonds for
IIi tJ they had subscribed. paying
M for them and getting bonus in
%ock There had been no other as
sseeemeut. The bonds had been offered
the public at 81. When
.Ie bethlehem property was bought he
,I,ow that it was subject to, two mort
ICES of about $S,500,000. Mr.. Schwab,
eoc@ording to the witness, said that the
rathlehem had earned 100000 which
bod not been taken from the business.
The witness said that other than he
stated in the morning he had made no
nroft from the transaction.
directors Furnished to Order.
Mr.. Dresser was succeeded on the
stand by George P. Dayley, assistant
treasurer of the Corporation Trust
Company of New Jersey and one of
the resident directors in New Jersey of
the shipbuilding combination. He tes-
tiAed that his company made prac-
rice of furnishing resident directors
for corporations organized in New
1srsey, and that he and two of his
fellow clerks, Messrs. Newman and
Ward. had been made directors of the
shipbuilding company.
He did not know who had asked him
10 act as director, but understood that
the arrangement was made by Alex
ander and Green with the New York
branch of his company. He said
Nf e.fc YrrIH&
for him in order that he might qualify,
hut did not know who had paid for it
or how it had been paid for.
After much fencing he said that he
did not have a personal bank account
at the time he acquired the qualifying
share. He remembered attending at
least two meetings, but kept referring
Mr.. Untermyer to the minutes for in
formation as to what had been done at
the meetings. He had not visited any
of the plants and had not ordered an
appraisement of property, and while
he admitted that he and his fellow di-
rectors in New Jersey knew nothing
of the shipbuilding business except
such information as reached them in
the documents laid before him, he
would not admit that he was merely
a dummy director
He finally said, however, that he and
the others acted on the direction of
the attorneys for the company. He
knew Of the Union Iron Works, through
the press, but did not know where the
Bath Iron Works is.
Mr. Untermyer produced the meeting
records showing the increase of the
capital stock from $4,000 to $4,000 900
and the proposal from John w. Young
for the sale of the Bethlehem property,
but the witness could give no details
as to the matter. Mr.. Untermyer re-
minded him that he and his fellow di-
rectors had voted to issue nearly $70,-
900, 900 worth of securities and the wit
ness said that he knew nothing of the
plan to buy the Bethlehem works until
he came to the meeting. He said that
the directors had exercised no discre-
ton or judgment in the matter, but
had followed the direction of counsel.
Frederick z. Ward, q. lawyer, and
the second of the New Jersey direc-
tors was also called as a witness, but
the examination had only proceeded a
short distance when the hearing was
adjourned until tomorrow.