The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-10-09
STATEMENTBYJ.P. MORGAN&CO.
NOT PARTY OR BENEFICIARY IN
SHIPYARD STOCK AGREEMENT.
Steel Syndicate Got the as 900 Cash
for which the $1,000. 900 Shipyari
Stock Was Sold At Private Sale. and
Not Under Any Hold.Back Bargain.

~ob~~bNS~~
Stock Was Sold At Private Sale. and
Not Under Any Hold.Back Bargain.
j. P. Morgan 4 Co. gave out the
following statement yesterday regarding
the statements made in d. Leroy Dresser
testimony on Wednesday at the hearing
in the United States Shipbuilding Company
case:
Neither the firm OF j. P. Morgan Il Co.
nor any partner ever had any connection
with the inception, organization or financ-
ing Of the United States Shipbuilding Com
pany, nor have they ever received or owned
any OF its securities. As managers Of the
United States Steel Corporation syndicate
we held the Bethlehem Steel Company
stock until purchaser was found. It was
transferred to the United States Shipbuild-
ing Company at exact cost. and the preferred
and common stock which were received
in lieu of interest and earnings OF the COM
pany were sold at private sale for Cts, 900,
and the proceeds were distributed as part
Of the profit Of the United States Steel
syndicate.
ANY statement that we were parties
to any agreement for selling the stock
is wholly untrue
A member Of the firm Of ]. p. Morgan
4 Co. said. after the above statement was
given out, that its last sentence meant that
Morgan & Co. had not been parties to any
agreement under which United States
Shipbuilding stock was to be sold for their
account before any such stock was sold for
others. The $4,000 referred to in the
statement is the price that was received
for the 5000, 900 of common and preferred
stock Of the United States Shipbuilding
Company that the United States Steel
syndicate received.
The further explanation was made yes
terday that the transaction involving the
United States Shipbuilding Company was
not a private speculation on the part Of
J. P. Morgan & Co. 1t was United States
Steel syndicate matter. The history OF the
affair began when Charles M. Schwab
bought the Bethlehem Steel Company.
knowledge of this transaction reached the
Steel syndicate and they insisted that, as
Mr.. Schwab was president OF the United
the control Of any independent steel COM
pany and that the Bethlehem control should
be turned over to the syndicate in trust
The Bethlehem control was thus held until
1t was sold to the United States Shipbuilding
Company.
Samuel Untermyer, counsel for the bond
holders protective committee which pro-
cured the appointment of the receiver Of
the Shipbuilding company. made this state
ment yesterday:
THE documents that were placed in my
hands for the first time after Mr.. Dresser
took the witness stand and while he was
testifying, speak for Themselves.
There are two agreements, both in writing
and nov in evidence. One ia between
Messrs. Nixon and Dresser and ]. p. Nor
gan d Co. BY the terms Of that document
Messrs. Morgan i Co. sell to Messrs. Nixon
and Dresser the shares OF stock OF the Bethle-
hem Steel Company for S7.248,000 in cash
and IS 900 900 equally divided between pre-
ferred and common stock Of the ahipbufld-
ing company. The other agreement is
dated the same day and is between Messrs.
Dresser and Nixon Of the first part. Mr.,
Charles NJ. Schwab Of the second part and
Messrs. Harris, Gates 4 Co. Of the third
part. Messrs. Morgan 4 Co. are not par
ties to that agreement, but it il provided
that the IS, 000,O 900 which they were to get.
az well as the SIS. 900 600 of stock which Mr..
Schwab was to get, were to be marketed by
Harris. Gates Il Co., at not less than s85
per share for the preferred and not less than
s2s per share for the common stock. and
that none Of the balance Of the stock of the
company, except a small amount which
certain vendors were receiving, should be
marketed or sold until this stock had been
disposed Of"