New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-11-08
THAT Sl.5OO,OOO DEPOSIT
DRESSER'S SIDE OF 1T.
Declares Pam Drezc Out Al Despite
Agreement to Contrary.

The facts sought 70 be esta biished oT SafnuTi
Unternyer toward the close OF his exanina-
ton q Lewis Nixon 81 Fridays session o. ne
United States shipbuilding hearing, relative to
the method bv which the s.. 10000 Of working
oapitsl required by the prospectus OF the ship
h,,naf-r oornpsrv wss secured. were the SUB
seer OF general discussion in the financial ols-
-rict yesterday. Although M Nixon had Only
g general recollection q the details ot the trans
actions the Inference was drawn by the StreeS
from TIE explicit nature q M Cnterryers
r,,as-ions that the facts as stated by him were
accurate, and thai the S1-5o00oO had been
raised by the deposit WIKI Harris. Gates & Co.
IS bankers. and with other institutions. q funds
from The Trust Company Of the Republic, which
funds were subsequently loaned 10 D Lehoy
Dresser, then president o. the trust company
End Mr. Nixon. their notes, and were de-
posted BY them in the Trust Company o. the
Republic 70 the credit Of the United states snip
building Company. A close friend OF M Lres-
ser. asked yesterday about the circumstances
under which the SL500OoO was supplied 70 TIE
sh1p5ulIding company, said
The contract kn0Wn as the Morgan-Schv7a5-E1ar -
-is-IaIes contract for lsrKetng ne STOCKS o. ne
TIMED states Sh-poGilclrg company, haVtng been
OF tbs oonJISc5 to have TIE st0cAs listed On TIE
STOCK E1cn4-se. and z oroer 70 have me sto :s
the E.50Osv OF Woraing capital should Dc PAID n
- s-s - sSiS 6e 5o-e ~ Dresser refused 70
a
re--Sel - $500 e--y-S = s-Ifs1 y 40 GA
- ~ -5e rt5srectCs brt tSat ii VS. not neces-
sary tnz- IL should De used because the separate
concerns ha6 Jne money which hey needed ana
"a a6o he $1,000 10 be supplied would not oe
needed for slx months OF s. aver tae oes- -
10 been adjusted new form AFTER ceIlli =
ing sn6 would then be USED for economies Nn l
v0Cld Dc introduced after in'estlsalon a. 10 wa
Nr DTesseT toe hin that under those sirG NJ
Dresser Eoulo discount ne ao5s q t1e So yo-se
ne company Tor $500 = M ram "OO-- -
This Mr Pam SAID q eog-se would po 20 bI.ly y
- eli-r,iIsi-E cor-uary On -he one hanc ara q
cash asset On ne one 80 - TrssT Com
pans Of the EePgbe sao1la eeP2Sl5 S1s s1c5aI ~
Es--,s Gates & Co ana these INSTITUTIONS should
i6s1 Re money back 70 ne shipouilding company
through the medium q the notes O. =, sS-Aoe 80
Ter she-etoso-e carried or il the case q nj
Perkins who dePosi-ee oeTIaln 11o-e ,sss ----1evs
- re shl-suiloi-g company on TIE notes OF -Ao-
So -bs 1eoesss-y secG-i5ies Of ne shpguildtag
oo-pa1ies 20 Dc 6eBos-teo As co5e.ss' go =
- s-5 v-71r ire Other financial institutions The
--oceess al these various discounts were 70 ee de-
ne credit q the Uuited States sAip6uiding con-
7T view OF the fact that the cash situation q tie
80 ~ ais t-snssctoa M Dresser egreed 70
RS scgges-ion l1at The T--st Cou2P-7y o. re re
and The o-he- hanks which made these cans ne
corresponding amount q none. 49, $500 IS - snI
i t6e TrgzJ COMPANY Of ne Repua-ie hs6 maze
ms loan direct the shlDo-l-c-ng company ~
would nave been secured y ne sesc5ls Is, o rz -.
1--lcirg co1rpa- "l-ca "s-e 80 -..L,5 =
rs. Gates d g. a2o Ea.-e y ne rl s -l ~ -
public had back OF the loan these sane ssc-I -.
70 secure them Tor TIE lr-i.s2,soZ --ss -
v-h.o6 he Mercantile Trust COMPANY and Alexan-
q
--s - - -=---se--- -------4--- r. re same
s1nou1r- and had Harris. Gates COS SgreeI-1ssIs
-er-ese--e5- q me trust con--a--. art 50 did NJ
PAN that Il ms was done thgv would modify me
q ne securities tasy s2lo Izae5 IlsL @sTe 50 80
-e-t u 8 50 az 70 The Trust Company q The Re
pu6lc frs- in order 70 secure them SIN further
TIE t-ost c6-rsry also had re assurance q
stools and bonds were listed or he stock TX
money vas PAID n Harris Gates & Co 9ould
T7aSsi tlese - 49, 49, lSl- -rev "a
<--e RS sane thing II TIE case Of ne I1iLeo
- -. ~ --E-Ssis,, ii rs ze--a- &c tbe7
- TIE --Se+ ca--1s-v Therefore seemed secure
te-er as 70 what they would co. As a matter q
a. VS. 5si5 ITO ne s5l75uia'-g cornra-g az
20 cary OF rs ssree--e-t - Isl ne STOCK on
e. C-ce as e p-o-1.see. ard 5a--.s Gates q CO
Trey rad agreed. and they never have marketed
". Pan. Curing NJ Dre-se-'s absence IN Eu-
-. ~ - - .o rs 80 --s = - - -, Use 5}
sr-71e-ld-1s COMPANY ard or NJ Dresser's re-
grsl-et his. 1rr PAN ted Ny Dresser -hat he
INTENDED 70 draw again thar day G'o0G more
had 70 right II Do 4. a15 " Pam replied t-at Z
he ca t and -he Trus- Company refused 70 honor
re -eok The reZf morning hen u came through
-5e GEARING House dc ~ Dresser know what
t -lea-- tfaI t1e Ar-sI company q The Republic
Vas t1so'vent ard co--d r0t meet just drafts
90 g
-hGt was exs-+Iv re o-s.-.o- ara - r-opose5 ~
q 81 ard Re &c r.. snd finally. before the end q
rss tee- r-- Fl 81 5is -e--see-fs-f9.-s ss s-s-z5
e5oTe. hat ire money would not be drawn out
Ru-ors were IN circulation yesterday that the
District Attorney might take Official cognizance
~ r1e note transactions. The following section
% The banking act. laws q 1892. defining the
powers q trust companies. being cited:
80 loan shan be made by any such corpora
non directly or indirectly. 20 any director or
oflce- thereof
DISTRICT Attorney Jerome last night declined 70
say whether OF not he ha6 any intention Of NOV
ing III the matter. Il was also said that the
subject had beer brought 20 the attention OF
Superintendent Kuburu Of the state Banking
Department but il was learned from Albany
that the department does not purpose institut-
fug proceedings The note or which Nessrs.
N--yor and Dresser obtained the $4,000 from
Harris. Gates & Co. bore the Endorsement
without recourse On Harris Gates a. CO." and
-ras En- the following form
Stock Note.
:5a.y5 55-lo0 stock, ,-. go,
NeW-York. September Is, 1902
Cpo- demand and lpon return OF securities give1.
ve promise 10 aE l5sII-s. ,Iales 8 - --- 90
-e4,s- AZ per cert per al1um. having deposited
preferred stock Of ne United states SniP5Ui!dl1s
COMPANY, anc lovs5 shares q common stock q ne