The Savannah morning news., 1903-10-14
SAYS SCHWAB SHOWED
MORGAN CONTRACT.
Their stock in the Big Ship Com
bine Was TO be Sold First.

Their stock in the Big Ship Com
hine Was to be Sold First.
Chicago Correspondence New York
American. g..
John w. Gates takes issue with ].
=. Morgan and with the house of 7.
p Morgan g. Co. in the controversy
over the revelations III connection with
the marvellous financiering of Mr.. Nor
gan in the United States Shipbuilding
deal.
There is no question about the con-
tract with Harris, Gates & Co. to sell
the Morgan and Schwab shipbuilding
stock ahead of all Others" said Mr..
Gates. There was such d contract.
and I saw it personally, although 1
had rothing to do with making it. The
contract was not shown me by my son
Charles, nor by the firm of Harris,
Gates & Co., but was brought to me
by Charles NJ. Schwab.
THAT contract was signed by Charles
NJ SchWab for j. P. Morgan and c..
NJ. schwab; by Daniel Leroy Dresser,
fer the Trust Company of the Repub-
lie, and by Lewis Nixon, for the United
States Shipbuilding Company.
Under the terms of the contract the
Morgan and SchWab stock was to be
sold FIRST. Not only that. but it was
expressly provided that all the rest of
the stock should be locked up in a vault
and kept there until the Morgan and
SchNa0 stocks We're sold out. l have
10 comment nor criticism to offer Of the
transaction. The house of which l am
q special partner looked after the sales
ot The stock. The public can draw IT'S
own conclusions regarding the action
OF Mr.. Morgan, and it is not for me
To criticse"
Ill the merger case ]. Pierpont Nor
gan taSlih d that he took. control of
me L. & y Ra ,4caa .from.J. M,,Gatss
because ha believed MIN unfit to con-
lioi thaj property To day Mr.. Gates
was asked whether he cared to say
dL.ythias about Mr., Morgan. in view
OF the disclosures in the shipbuilding
CISe
have no desire to criticisa Mr.
Morgan, Mr.. Gates replied. Let the
IuolD draW its own conclusions.
LOOK ina altitude when Mr.. Morgan
an The talking, and see no reason to
'H'QSe In view of developments. OF
Nurse feNelatiOns of this kind cause
S'"eIdl plSuuSt and tend to hurt good
properties along with the bad. That's
ult uhioftu ate part of it. 1t has been
St' mat ! sold short the stock of the
oN'ppuldng Company while our firm
was marke ting it for Schwao and
NoI gan. That is untrue, absolutely.
never made a trade in it either way.
aH' To this day J own every share of
t"' stock and every dollars worth OF
'ondS that | ever owned in it.
-. Notwithstanding this stampede in
wan street ! see no reason to be allrm-
eo' Inc country is all right Pro sper-
~ ~ sun with us. Business is good
!. may not be booming as strongly as
II was While ago, but it is all right.
Iouuction is up to the normal good
lnneS average, and l think it will con-
unue so.
Even at the enormous capital, and
WIN conditions as bad as they are
%" ing them the United States Steel
o-Ioratlon can earn 500, 0O00O0 a year
as hngs stand now.
ar Dresser is not an alalmi st. He
y SIMPLY telling the truth, and eteiy-
sIE VINO knew the facts about the
ttIIoGlldlng deal knew that he would
" "" III When he was put on the stand
49, j bankrupt os result of the deal
anu has nothing more 70 lose, Just as
"s mas said himself"