Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1903-10-14
DRESSER ACCUSES C.M.SCHwAB
Saws Withholding of Bethlehem Co.
Profits by Him Wrecked the
Combination.
NE SAW GATES ABOUT MATTER.
ron Him if Schwab Would Take His
Grip Oh Bethlehem, All Would
BE Well.

"a. york oct. 1A.-The INJURY INV
o0eirs of the United States snip
,,r1,rg company, which Is beng
's.ssad h, the Bondholders' Protective
ns,oclotion. was resumed toeay pefore
$500 ollphant. Since the last hear
An, arrangements had been made 10
,aSo the testimony Of Charles NJ
e',.oh Max Pam, Lewis Nixon
c.orgo ". Perkins, John W. Young
lane, Duane Livingstone and others
learned. d. Leroy Dresser, formerly
ns.s,dopt Of the Trust company of the
psmblic, whose testimony as to the
,i,sumaances under which the ship
,a1lne combination came into being
ami particularly the terms by when II
ocoulred the Bethlehem steel works ana
agreed TO market It's stock, startled nm
,nclol circles. took the stand, but before
NJ Mac asked any questions there Was
an argument over the proprlety OF MT
Gutbre. counsel for Mr.. Sehwab, cross
examining MN .N,r crthria
II was finally agreed that MT ru'llIls
,houd cross-eXamine Mr.. Dresser, ana
schSab would attend ana TESTIFY
when desired. and several witnesses, IN
ending Ioseph SchWab, Oliver wren,
secretary TO Charles NJ. Schwab ana
Mr Young had been sworn IN, the eN-
animation proceeded.
Mn Guthrie first questioned witness
"A 10 the reports he had received OF
seen on the value OF the plants included
IN The shipbuldlpg combination MI
Dresser said that he had seen the rec
pors Of Alexander and Green ana
nldle & Common, the accountants.
bpt denied that he had seen report OF
he matter
DRESSER UNsuSPlCIOUs.
oFrom the time the prospectus vas
first prepared until the TRANSACTION was
finally contaminated had there been
anything suggested to you that affected
the sondness OF the company
81 suspected nothing until came back
from Europe" said Mr.. Dresser. y
made very careful inquiry at that
time Trouble occurred during January
and February, and | believe II was due
to the control by Mr. Schwab OF the
Bethlehem company"
The witness then explained that he
had appealed to Mr. Pam fer assistance
from the Bethlehem company, and said
that even after the Sheldon reorsaniza-
ton the earnings of the several ship
building properties and the Bethlehem
company were sufficient TO pay fixed
charges
Mr. Dresser said that all the informa-
ton contained In the prospectus OF the
company came from either Riddle
Co., or Cot McCook.
The witness said that be had not
talked with MIR. Schwab about taking
part In the underwriting.
sCHWABs SUBSCRIPTION,
Mr. Nixon did that, he said and
brought him Mr. Schwab's subscription
Of 100000 Mr. Schwab later paid the
hll amount OF the allotment against
HIM He said there was a series Of as
easements and that he believed Mr..
Schwab paid in full
The witness was then led over the
circumstances attending the call which
he and Mr. Nixon made at the Office Of
MI Schwab on June a. 1902 He tes-
uhed that Mr. Schwab had showed his
reports NJ the operations and earnings
OF lhe Bethlehem company.
MIR Schwab said It would earn 81
WVOO a year the witness said, "and
y q matter Of fact, It did" Asked II
NWoOoo was not the sum- he said
Mr. Guthrie | do not wish TO over
sUale the figures. Two million would
have satisfied us that II was a good
purchase"
the witness swore that he had not
0eyed any surplus cash or first mort
gage bonds as promoter.
STOCK FROM MIR. YOUNG.
when was in Paris" said he, II
received some stock IN the company
rom Mr. Young When / left here I
aSnea $50 shares Of the TrustCompany
Of The Republic. which was worth sbOOS
wv oul That had been pretty well wiped
y y1I Mr. Young gave me either 1000 or
wv shares Of each kind OF stock and
SOLO II for 100000"
WRECKED BY sCHwAB.
me witness denied knowledge Of the
.AN'ehce OF $500 600 worth OF first mort
ease ponds which Mr., Guthrie said had
NEITHER gone to the vendors. the under-
,sLlSers nor the subscribers. Witness
sa!u mat he never knew OF any such
1.lIus' II then developed that MIR.
esSer had endeavored yesterday to
~ mo communication with Mr.,
bsmau ana the testimony ON the point
r. 80, '''lH tue Witness on the stand
g "eclarauon that the shlpbuildlng
,,,pany mad been wrecked through the
nlllHolding Of the Bethlehem COM
rauS profits The efforts of the witt
,I 10 reach Mr.. Schwab made
"luuash Charles Harris OF the broker
vs. urn or Harris Gates & Company,
Suo "as brought out by Guthrie for the
auipgse OF showing that Dresser had
toouuShl TO plead with Schwab and had
au u over him the threat OF exposure OF
h,niI lacls IN connection with the ship
building failure.
,mI Guthrie introduced the sensa-
n r1nsl incident and testimony by drop
mug ms questions as to the stock Mr.
User mad received and saying:
,.,5po you remember what you did yes
Ay memory is good enough for
ok answered the witness.
>, Dll you pay two visits yesterday TO
"s oIiec OF Mr.. Charles Harris?"
e., ald, said the witness.
=, Dld you not seek q private inter-
nnnMw with Mr.. schwab?" asked Mr.
SOUGHT NO INTERVIEW.
r7,niuly did NOT - said the wit.