Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-12-23
CASE OF WORKING
Seemed to Be the Plan With
ShipbuiIding Promoters
Over in Ffance--Several People Found
With Money to Invest.
An Interesting Chapter in Case Now
Under Investigation.

New York, Dec. 22.-Letters and cable
grams which are alleged to have passed
between New York and Paris in con-
nection with the United States Ship
building underwriting placed in the
French capital, are published, today.
in the World. Reference to these COM
munications was made recently in the
Shipbuiiding hearings before United
States Special Examiner r. D. OH
plant, while Charles Il. Alexander Of
the firm of Alexander & Green, attor-
neys, was undergoing examination.
The letters, which are kept secret by
agreement of counsels, were said to
show what methods had been pursued
in order to compel the French invest
ors to meet the calls for money on their
underwriting after they had been given
to understand through cablegrams sent
by the Trust Company of the Republic
to its agent, John w. Young, that the
underwriting was a success" This
dispatch gave them the idea that they
only need stand ready to receive their
profits as members of the underwriting
syndicate.
Charles Il. Alexander happened to be
in Paris at the time and to him fell the
duty of removing the false impression
and holding the signers of the SUBJ
scription list to their agreement. His
firm is counsel for the Trust Co. here
which had charge of the underwriting
and the communications, which fill
seven columns of the World, are alleged
to have passed between Mr.. Alexander
and his firm in this city.
The alleged correspondence began
I,II. f. IL
wolves largely around the investigation
set on foot as to the financial RESPONSE
bility of those whose signatures had
been secured in Paris to the underwent
ing agreement which was then in the
care of the Bank De Roma, Baron CAL
vet Regnial and M. Schreyer, a banker,
We're the heaviest subscribers. While
both were much disappointed over the
misunderstanding as to the success of
the underwriting here, they were stated
to stand ready to pay their shares. Fin
ally the situation apparently had been
explained to the satisfaction of every
ono and preparations were made for the
first call upon the underwriters. July
%, for rs per cent. of the subscription
to be followed by the second, payable.
Aug. 1, for the same amount.
Then came the exciting portion of the .
correspondence. The banking house y
of Morgan, Harjes & Co. had been Sc
lected to receive payments to be cabled
at once to the Mercantile Trust Co. of
New York: but the subscribers had not
come forward, July rs, to which day the
payments had been postponed. and,
July rs, a letter states that Mr.. Alexan-
der had changed his tone with regard
to the situation. The writer is quoted:
while it may be true that these I'M
derwritings were not treated properly !.
by Young in leaving them under the
impression for so long a time that all
the bonds had been sold, yet that has
been well atoned for by the patience
and care with which we have in the
last week given explanation after ex-
PLANTATION to all parties. They are
now all in default from the 25th, and \
have told Oppenheim to notify each
one that their individual liability in
ease that money is not in New York In
time to make the payment will not be
limited to the amount of their secu-
rites, but that there will be conse-
Continued on page ~