The Montgomery advertiser., 1903-12-23
USED HIP
 N FRENCH Dis slures in Shipbuild- ing Case. THE LETTERS AND CABLES PaiS Investors are Driven to ! Put up Their Money. Thought They Had a Good Thing Until the Riot Act Was Read.
 consternation Among
 the Lawyers.

grams which are alleged to have passed between New. York and Paris in con- nection with the United States Shipbuild- ing underwriting placed in the French capital are published to-day by The World. F5.,, .s'
 Reference to these communications was made recently in the shipbuilding, hear ings before United. States Special Ex- aminer R. D. Oliphant. while Charles E. Alexander of the firm of Alexander 6 Green, attorneys, was undergoing exam- tnatfon. The letters, which were kept secret by agreement of counsel, were said to show what methods had been pur- sued in order to compel the French in. vestors to meet the calls for money on their underwritings after. they had been given to-, understand through cabie- gram sent by the Trust Company of the Republic to it's agent.S John w. Young, 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 a9t
 The Role of Alexander.
 Charles B. 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 subscription list to their agreement. His firm is coun- sel for the trust company here, which had charge of the underwritings The communications which fill seven col- umns of The World, are alleged to have passed between Alexander and his firm in this city. f'.
 The alleged correspondence began July 15, 1902 and in the early stages revolves largely around the investigation set on foot as to the financial responsibility of those whose signatures had been secured in Paris to the underwriting agreement which was then in the care of bank De Roma. Baron Calvet Rogniat and M. Schreyer, 8 banker; were the heaviest subscribers. Finally the situation ap- parently had been explained to the sat isfaction Of everyone. and preparations we're made for the fifst cal upon the .un- derwriters July g for 25 per cent. of the subscription to be followed by the sec ond payable Augustl for the same amount. ~ sssF
 @0 The Exciting Part of It.
 Then came the exciting portion of the correspondence. The banking house of Morgan, Harges & Co.,, had been select ed to receive payments to be cabled at once to the Mercantile Trust Company of New York, but the subscribers had not come forward on July 25, to which day the payments had been postponed,
 
 Alexander had changed his line with re- gard to the situation. The writer Is quot ed: ..D -'- - -'- --
 While it may be true that these un- derwriters were not treated properly by Young in leaving them under the impress sion for so long a time that 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 explanation to all par ties
 "They are now all in default from the 18th. and have told Oppenhein to noti- fly each one that if their individual lia- bility in cash money Is not in New York in time to make payment their liabil- ity will not be limited to the amount of their securities. but there will be conse- qiential damages to every party con- nected with the affair." t...
 Postscript Was Severe.
 The letter criticised severely in a post script the impressions said to have been thrown out by the younger Harges who diced against the whole affair, and 1t was said by the cashier that there was no market for the bonds.
 The writer adds that he saw Harges at once and threatened to return the account over to the Credit Lyonnaise, and thereupon .-arges agreed to tell everything good he could about the per- sonnel of the company and the affair. Efforts through other sources were also made, according to letters and cable grams quoted to counteract the effect of various reports circulated as to the collapse of the underwriting scheme in New York. . In one of the letters from Paris ad- dressed to Alexander & Green. MT. AL ex ander is quoted as follows:
 'I constantly say to all parties that nothing can be done in the way of as- sisting the underwriters here to dispose of their bonds unless they frankly come forward when notified according to their liability and make their first payment when all hands will unite in endeavof.&g to sell any bonds they may wish to dis pose of.
 Designs on a Viscomtesse.
 ''The Viscomtesse Dandignea sat by me at dinner last night. She has some of the Scotts Union Iron Works stock and has just telegraphed refusing to sell it except for a higher price. think persuaded her that 1t would be good judgment not to stand, but l sug- gested to he rthat perhaps Scott would make her an offer in the securities or the new company, which will be good enough 
 is the trouble of investing the money she may receive"
 In another letter. July r. 1902. signed by MT. Alexander, the statement is made that in investigating the Bank DeRoma, the writer learned that the Pope had s6,- 900. 900 in that bank; that he had similar sum with the Rothschilds and about the same amount in England.
 Acording to The World, "the Drexels" was used in the correspondence to repre- sent Morgan. Harges & Co.,. and in one ,of the letters credited to Mr. Alexander there appears the following: "I got pledge from the Drexels that every thing good should be said of the enterprise. ."
 One of the French underwriters was named Schreyer, and the following refer ence was made to him in one of the let ters:
 < T hear he has million dollars belong ing to one old woman to invest at his discretion t'