The Providence news. (Providence [R.I.]) 1891-1906, 1903-10-08
DRESSER TELLS
Of STEEL D|CKER.
On the Witness Stand He Explained How
SChwab and Morgan Arranged to
Get Out Safely.

20 shares ana he thought he could control
them.
"Ie said because OF it's armor- making
capacity be believed the company would
do better with the Shipbuilding than with
the Steel corporation. We talked the mat
ter over and Mr.. Schwab arranged for us
TO meet at his office next day. He said
he would have TO cable TO j. Pierpont
Morgan. who was then In Europe"
Q.--what did Mr.. schwab say when
you next met him? Ale said he
wanted 100000 cash for his stock and
! submitted reports which showed that II
cost him more than S1,oo0000 and was
earning $4,000 a year.
Odd Mr. Schwab ask ss.0oo0o0 in
cash for his property? Ave told him
we could not trade on cash basis. he
cause we had no cash, and he said he
would take 100000 in bonds at 30 for
the s900O,000.
CONTRACT WAS DIFFERENT.
Q.-what did you understand by that?
Al understood he considered his prop
erty worth 100000
Q-You told him the underwriters got
the stock al 90? A.-The underwriters got
the bonds at 20. less 25 per cent
Q,-The public got no 25 per cent ad-
vance? A.-No, the price 10 the public
was s7la.
arrangements after the deal was agreed
upon and said that Mr.. Schwab told MIN
that 81, 10000 of the SO 100000 stock lie
demanded would have TO go TO J. Pier
pont Morgan Il Co
When we went 10 sign the contract" I"
Mr. Dresser went on. II found IL very
different from the contract we had agreed
upon. 1t showed that ID. Leroy Dresser
and Lewis Nixon, on the one side, agreed
10 purchase 1850 shares OF the stock of
the Bethlehem Steel company from j.
II. Morgan & Co. as syndicate managers.
for N.246.S1l Al cash and $4,000 In each
sort OF the stock of the Shipouilding
company. To this / objected. because IT
was not what we had agreed upon and
because | did not wish to obligate my
self for $l.2o0.o00. Mr.. Schwab explained
that the deal would have 10 be carried out
that way and that when pay day arrived
he would give us the cash to make the
payment. Then we were to hand the cash
| TO Morgan e. Co, who would hand TO us
the Bethlehem company's stock mentioned
In the contract The deal was consum-
mated on Aug IL, 1902. Max Pam acted
as counsel for Mr.. schwab In all the pro-
ceedings"
LETTER HAD DISAPPEARED.
AS the money from the French under
writer's had not come I'm on Aug 8, Mr..
Dresser said he went 10 Pam who rep
resented Schwab. and said he could not
go on with the thing, as s2.5 900 was
needed 20 close the underwriting Mr.
Pam. he said, declared IT would have TO
go on and went over with him TO see
Mr. Perkins.
The latter said he could not lend money
without Mr.. Morgan's consent, but that
he would deposit s2,l0ooO0 in any three
institutions. AS agreed upon, they were
the knickerbocker Trust company, the
Trust Company OF the Republic and the
New York Security and Trust company.
Then Mr.. Dresser said he borrowed the
money from those concerns, using the
French underwriting as collateral and
also note made by Mr. Nixon and him
self. OF the French underwriting not
more than $4,000 was ever paid 10 the
Mercantile Trust company, TO his
knowledge II was then that the Shell
don committee took up the loarr
Mr.. Dresser said that he did not re-
collect the contents OF the contract made
afterward with Young nor what the
trust company was to get in benefit He
said the contract was given into the
custody of the trust company.
Have you heard that an important
letter Of that nature has disappeared
from the files OF the trust company"
asked MIR Guthrie pointedly.
Mr.. Dresser said he had heard so with
In a week.
Did YOU have anything to do with its
abstraction
II certainly did not" was the reply
The hearing was adjourned until next
| Tue