The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-10-16
The Wrecking of the Ship
building Company.
ADDITIONAL LIGHT SHED
Inquiry Into the hffairs Of the Company Produc-
tive Of Fresh Developments That Will
Claim the Attt n.ion of the FL
nanciaI World.
nanciaI World.
(By the Associated Press.)

New York, Oct 1.-THE inquiry before
referee into the affairs of the stranded
shpbuilding combination at the instance
OF the Bondholders' Protective Association
was resumed today and was productive
OF fresh developments that will claim the
who follow its fortunes.
1t developed that yesterday D. Leroy
Dresser, late president of the Trust Com
rany of the Republic, who last week di-
vulged much of the inner history of the
formation of the combination, made an
effort to communicate with Charles NJ
Schwab, with view to obtaining some
concessions as to the Bethlehem Steel
Works that would render easier the
scheme for rehabilitating the partly
wrecked concern. The message of Mr..
Dresser was delivered to Mr.. Schwab by
Mr. Harris, of the brokerage house of Har-
ris, Gates C Company, which marketed
part of the shipbuildirg stock, but Mr..
Schwab declined to see Mr.. Dresser.
w. ID. Guthrie. counsel for Mr.. Schwaf,
brought the facts of the incident out
at the hearing in series of questions
show that Mr. Dresser had sought to
plead with Mr. Schwab and had threatened
to make certain disclosures when recalled
to the stand that would reflect upon Mr..
Schwab. Mr.. Dresser denied that he had
gone to plead with Mr.. Schwab or to
threaten him, for he had no additional
information to divulge, but had sought TO
approach him in the hope that something
might be dcae to save the Shipbuilding
Company.
Dresser asserted that the Shipbuilding
Company had been wrecked because Mr..
Schwab had withheld the profits of the
Bethlehem Company This declaration he
twice spiritedly repeated when at the
end OF the cross-examination by Mr.. Guth-
RE, he was given an opportunity to ex-
plain.
Mr.. Untermyer, in behalf of the bond
holders, produced two of the resident d.
rectors obtained in New Jersey formally
to carry the affairs of the Shipbuild-
ing Company, but only finished his exami-
nation of enc Of them.
He claimed that they were merely dunn
my directors, who voted upon questions
involving millions of dollars of the re-
curities of the company without other
information. or inquiry than the orders
OF the lawyers of the corporation.
George P. Dayley, one CT the New Jer-
sey directors, could not tell where the
Bath Iron Works is located, and could
not tell who paid for the single share
of stock placed in his name that he
might qualify as a director.
There was produced and offered as evil
dence memorandum said to have been
prepared by Colonel McCook and given
by him to Mr.. Dresser. 1t contained
the figures upon which the Trust Com
pany of the republic undertook the I'M
derwriting of the Shpbuilding Company,
and while its purpose was not explained,
it is expected that it will cut an impor-
tant figure at a later stage of the pro-
cecdings 1t is said that, besides the
division of stock detailed last week by
Mr.. Dresser, there was an additional di
vision of money. The memorandum shows
an allowance for expenses Of 100000
cash, 100000 in bonds, $4,000 in pre-
ferred stock and 100000 in common stock
Replying to a question by Mr.. Inter
myer, the witness. said that six weeks
ago he saw Mr.. Gates and told him that
it Mr.. Schwab would take his grip off
Bethlehem the Shipbuilding Company
would be all right. Il went to the office
OF Harris, Gates and Company he said
Gin the interests of the Shipbuilding Com
pany. Mr.. Schwab has taken this means
of putting It before the public to show
that l was there to plead with him. /
went there not to plead with him but
TO ask him to take HIS grip off Bethle
hem. and that if he did so it would make
the Shipbuildirg Company all right. l
said that if he would give us any decent
plan of reorganization and not the con-
fiscation plan that has been proposed, the
company would be all right went over
all this shipbuilding matter with Charley