The Barre daily times. (Barre, Vt.) 1897-1959, 1903-12-24
]. VI. GATES
IS CALLED
Chicago Financier . Witness at Ship
building Trust Rearing
gCHWABs GENERAL DENIAL.


New York, Dee "a The hearing Of
the snit sc first mortgage hondholdcrg
60 make permanent The appointment Of
a receiver FOR the United states ship
building company. postponed BECAUSE
0f the Illness 81 Samuel UHerDyer 81
counsel for the complainant stoeGhold-
srs. was resumed before Special Ex
aminer 0phanG IN the raoms Of the
board &c trade and transportation
John W Gates of the Grm 81 Harris.
Gates & Ca. appeared with his counsel.
SIR. Cateheon.
Business men, lawyers and ananciera
are discussing the answer made By
Charles ST. Schwab. which was Gled in
the United States circuit court By his
counsel w ID Guthrie, denying amy
connections as promoter with the
United states shipbuilding company
Mr. Stewards statement WIS aled IN
answer 70 Receiver Smiths cross bin,
and ia i pc throws 4 new light on the
affairs 81 the promotion and financing
of tie shipbuildin9 company
IN brief. Mr. schwab, who has been.
f credited Ga much at the recent testi-
mony with having been largeiy re
sp0nsible COR tie ruin 0f the saipbuild.
+ ing combination, uarns upon those who
have 50 testified and places the ouus
upon them
sehvvah Denies Conspiracy.
Ia the statement fled before United
states Commissioner Shields. Mr.
schwaB enphaucaliy denies. in his "a
tagorcaI answer that ne e0nspired III
any way to obtain control 81 the ship
building company. The charge that he
sought this end By having the com
pany's charter amended 90 as to give
alge holders 0f mortgage bonds vot
ing power equal to that enjoyed by the
holders of an equaf share 0f stock IS
denied ii toto
All of the lnsnuatous and charges
chat he acted wien John w 9oang iii che
sale Of the Bethlehem eompany's stock
70 the salpbuilding company and that
he aided 10 placing false vaIaati0ns on
the properties acquired hy che ship.
building company Or that Ia aided III /
wreckinp the shipbuilding company By
Withholding earnings Of fhe Befhlehem
company are likewise denied
Referring fo his connections with the
eaipbuiltng company through his sale
&C it Is che Bethlehem company. NIr
sehwans tamment gees on g say that
be made an Individual contract wlrh
Robert r l.ind@man 81 Bethlehem.
PA, On May 81 a8l. FOR the purchase
Of 300.000 shares of Bethlehem stock /
at "a This figure h. declares. H. b.
iieved was cheap and THAT IN oppor
tunity for great profit offered itself /
This belief was communicated to il r. I
Morgan s Co, syndicate managers Tor {
tbs United States street, corporation, o. I
which he was thea president
More specifically SIR Schwabs state
merit IS given directly as result af
the SUR brought b the New YORK S.
euritF and Trust company aader the /
plan of TIE sheldon syndicate faf the 4
reorganization 81 tine lpbuiEIin4 com
pany. This suit was begun to aarecIose
the mortgage given to secure che Sl0. Z
100000 bonds held nv Mr. Sehwa6.
Mr. schwabs answer Il. III part AZ foI-
lows
The first transaction 7 personally had
n any way In relation to the aewanlsa
ton of the United States ship6aadBrr
company vas 1n Monday Jaae 1902
when Lewis Nixon and Daniel TeroV I
Dresser called at mg Office ia the city II
View York and solicited me 20 become ss (
Underwater "a an 3ssas Of f5.480 coo face
value af the arst mortgage bonds of tia
bnltea seates shipbuilding company
wfich bonds they stated were about 10
be offered FOR subscription to the public
The said Nixon and Dresser stated 10 me
that the Trust Company 81 the Renuhfig
Of WHICH, Aif Dresser was president had
Undertaken tha promotion ~ the United
states Salpauiding company and had ae-
cured over 89Q00 81 underwriting Ia
eals country ard abroad. and they then
sa3fniftea e fac prospectus dated April
% i10a
stated q them faat was willing "
saFn over the contract % tie United
stafcs steel corporation without any ur06t
Whatever i they Thought a would - an
Advantageous thing for such corpofat IN
II vas 6aAa agreed between said arm
tAa Mie that fhtY as syndicate manaaera. (
sA0iAa taks over the contract with su- /
horitg IS eaaga % transfer saef atoclt ~
ae lietHieHem Steel company to the Unit !
~ states Steei corporation al cost III
heE sew 60 IA % Do Hut if IL we're dls- Z
3qseG &C e. other Parties Shat 8 aaBhH !
lpt pe sold without ray consent and THAT
sn0alq he entitled e. the greater part 81
ay pfeif5 e view Of the fact thar ! had
'arsoaattF made the purchase and aa-
pmed fhs initlai FlsR Thareau9n IVA +
saaa said contract Of purchase 70 said
Sn9Nata managers ~ Instrument dated ] :