The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-10-14
SCHWAB
WRECKED CO.


circumstances attending the call
which he and Mr.. Nixon made at the
office of Mr.. Schwabson Pune IA, 1902.
He testified that Mr.. Schwab
showed his reports Of the operations
and earnings. Of the Bethlehem COM
pany. # TIKI a
Earned $2,OO0,0OO a Year Ago.
''Mr. Schwab said 1T would earn
100000 a zyear,":tle witness said,
land as a. matter Of fact it did"
The witness sWore that he had not
received any surplus cash or first
mortgage bonds as a promoter.
"When Twas IN Paris said he,
1T received some stock from Mr..
1,45O shares of the trust company,
worth $500,O00, but that had been
pretty we'll wiped out. Mr.. Young
gave me either 1000 or 5000 shares
of each kind of stock and I sold it
for 100000"
The witness denied knowledge of
the existence Of 100000 worth of
first mortgage bonds which MI.
Guthrie said had gone either to the
vendors,i the underwriters nor the
subscribers. $%gH
Tried to See schwab. :.
1T then developed that Mr.. Dresser
had endeaVored yesterday to get into
communication with Mr.. Schwab,
and witness declared that the ship
building company had been wrecked
.ti1ru the Withho ldi of Bethlehem
profits. 49, ,z.s-
The effort of the witness to reach
:Schwab had. been made thru Charles
Harris of the brokerage firm Of Iiar-
ris, Gates & Co., and was brought out
to show that Dresser had sought to
plead with Schwab and had held over
him the threat of exposure of other
facts, in connection with the ship
building failure.
Mr.. Guthrie introduced the sensa-
tional incident by saying:
do you remember what you did
yesterdays" ,@-s,:~
1T my memory is good enough for
that" answered the witness.
did you pay two visits yesterday
to the office of Charles Harris?"
Did you not seek a private inter-
view with Mr.. Schwab?' asked Mr..
Guthrie. - -
IT certainly did not" said the wit
ness, and then in response to series
of rapid questions the witness denied
that he had sent word to Mr.. Schwab
that it would be we'll for him to see
him, or that he had threatened Ito
make disclosures that would injure
Mr.. Schwab. He also denied that he
had said that it would be better for
Mr.: Schwab to- quiet, the matter or
that he, Dresser, had nothing to lose
in. the way Of reputation, or that it
would be better for all. concerned to
straighten the whole, matter out.
When Mr.. Guthrie finished his
questions, Mr.. Dresser said:
Now, will you ask me what I did
Mr.. .Untermeyer, attorney for the
bondholders, told the witness to tell
what did happen and the witness
went on: is !. : + t@: 5 q T. 30. s,jS5:S
"six: weeks ago + saw Mr. Gates and
told him that If ,tMr. Schwab would
take his grip off Bethlehem, the ship
building company would be all right
I went to the: office of Harris, Gates
& Co, in the interests Of the Ship
building company. I went there, not
to plead with Mr.. Schwab, but to ask
him to take his grip off Bethlehem
If he did so, it would make the Ship
building company all right 4 saiC
that If he would give us any decent
plan of reorganization and not the
confiscation plan proposed, the com
pany would be all right. I went over
this shipbuilding matter with Charles
Harris six weeks ago. told him
then that the wrecking of the Ship
building company was due to Mr.
Schwab's Withholding the profits OF
Bethlehem. instead Of. letting then
flow into the Shipbuilding company
where they belonged. I asked Mr.
Harris to telephone to Mr.. Schwab an6
he did so. IF out of the mess anc
mire the United States Shipbuildine
company can be rehabilitated, that il
what IIwant ito see done.
did you say anything Ito Mr.
Schwab. about his liability in this
matter? asked Mr.. Untermyer.
.''No, I did not said the witness
.that is a legal question and know
nothing about it,, Mr.. Dresser sait
that when he undertook the Shipbuild
ing project for the Trust company o
the Republic he believed thata$6, 1000,
600 had been underWritten in France