The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-10-15


pany ,rehabilitated out of this mess. It
doesn't DO me any good"
Mr.. Untermyer, continuing the redirect
examination, offered in evidence the
memorandum Of the proposed merger
This Mr.. Dresser said he got from Alex
ander Green. 1t stated that the vendors
were to receive $4,000 cash, 5000, 600
in bonds. - 10000 In preferred stock and
"a 900 900 in common stock.
Mr.. Dresser repeated that he had never
learned the separate amounts the vendors
OF the plant got and had never seen the
original contracts The checks for them
he said, were made out to the order OF one
person. who had filed in the names. Mr.
Dresser did not say who this person was
He said that he never had any assurance
that the vendors were paid. and suggested
Mr.. Deming of Alexander 4 Green who
carried out the plan in the memorandum
he asserted.
The witness said that in Paris Young
had wanted S25. 900 cash. that he had cabled
the Trust Company OF the Republic asking
IL that =, amount belonging to the company
was still there and that through q mistake
the reply came that 1t was. when the reply
should have read it was not.
Mr.. Dresser said he had then told Young
to draw on him. Upon his return he found
that the Sheldon committee had taken
the money from the trust company. He
did not pay the draft then.
Y thought the Sheldon plan was con-
ceived in bad faith" said Mr.. Dresser.
1t was done during my absence without
my knowledge, although I was president
OF the trust company. refused to look
over the minutes about IL when returned.
I looked over the subscription list to
and saw Mr.. Morgan's name down for
$4,000 don't know who the other SUBJ
scribers were. That is all know about
it, really"
MIR. Dresser denied emphatically to Mr..
untermyer that he had received any bene-
fit out OF the promotion except as he had
stated. He said he had had no secret
agreement with Young and that the cash
he had withdrawn from the trust com
panv was for legitimate expenses of the
underwriting, which the trust company
had approved, as was shown by the
fact that 1t reelected him president shortly
afterward
That the plants were heavily in debt
when the securities were being sold, he
said, he was totally unaware, as he lad
assumed from the first that the accountants,
reports were correct and made no personal
Investigation.
Mr. Dresser was followed on the witness
stand in the afternoon by one Of the three
original directors Of the company, who
We're clerks in the Office of the Corporation
Trust Company of New Jersey. One of
them, George b. DAILY did not know who
had bought the one share held in mis- name,
and admitted that he and his two associates
were acting simply under the instructions
OF others, not directors. These instructions
came from the law firm of Alexander 4
Green.
DAILY said that he simply approved resou-
tions and minutes sent over from New York
1t was regular business Of the corporation
to do this for concerns incorporated in New
Jersey.
Frederick X Seward, clerk in the New
York Office of the Corporation Trust Com
pany and one of the incorporators, said that
Mr.. Deming of Alexander & Green had
asked him 10 be an incorporation. He said
it was usual for the company TO furnish
incorporat ors, but rather unusual for it's
CLERKS to be asked to serve as directors.
Mr.. Uutermyer brought out that these
directors had voted the s7l 900 900 in Sc
curtiss of the company away in accordance
with the plan presented 10 them by the
promoters.
The hearing was then adjourned until
this morning, when, II Is expected, Lewis
Nixon will testify.
John F. Harris of Harris, Gates ( Co.
said yesterday:
1T ia true that Mr. Dresser saw me about
noon yesterday. He wanted me to see Mr..
Schwab on his behalf He felt that an
aTnlCaDe QiScusSiOn Tn1Bnl lnuuCe MT.
Schwab to release his grip upon the Bethle-
hem Steel Company, and in that way enable
the Shipbuilding Company to rehabilitate
itself
He said that he did not come as sup
plant to Mr.. Schwab, but simply 10 present
a straightforward business proposition to
him. He was doing this upon his own
initiative. he said, and had not consulted
anybody about it.
Il saw Mr.. Schwab, who declined to meet
Mr.. Dresser. AS to Mr. Schwah's reason
for declining, don't feel at liberty 10 speak
You had better see Mr.. Schwab about that
I think that Mr.. Dresser's suggestion was
an entirely proper ono"