The Barre daily times. (Barre, Vt.) 1897-1959, 1903-10-10
THE SCANDAL
STIRS STREET
Stocks Depressed by Exposure Of
shipbuiIding Trusts Methods
WANT MORGAN TO TESTIFY.
FIRST Mortgage BondhoIdeFs Regard
HIS Statement as Evasive--suhpa-
ma servers Hunting For sehwab.
Gates Sensational Allegations.

street continue as result ol Tue eA-
posure Of the financing of the ship
building trust made by LIE Roy Dresser.
The statement made by J. P. Morgan
& Co. is not regarded as satisfactory.
In some quarters 1t is held to be eva
siye.
Morgan & Co.'S statement is as fol
lows:
Neither the firm Of ]. P. Morgan &
Co. nor any partner ever had any CON
necdon with the inception, organiza-
ton or financing Of the United States
shipbuilding company, nor have they
ever received or owned any Of its Sc
curities, As managers Of the United
States Steel corporation syndicate we
held the Bethlehem Steel company
stock until a purchaser was found. II
was transferred to the United States
Shipbuilding company at exact cost,
and the preferred and common stock
which were received in lieu Of interest
and earnings Of the company We're sold
at private sale for $4,000, and the pro-
ceeds were distributed as part of the
profit Of the United States Steel syndi-
cate.
ANY statement that we were parties
to any agreement for selling the stock
Is wholly untrue"
Some Of the first mortgage bondhold-
ers are considering the ACCESSIBILITY Of
asking their counsel, Samuel Inter
meyer, to subpoena J. z. Morgan to
tell what he knows about the sale of
the Bethlehem plant Mr.. Dresser in
his testimony said that after be had
tentatively agreed to buy the plant
Mr.. Schwab said he could not proceed
any further until he had consulted
Mr.. Morgan by cable Just what the
communications were the bondholders
would like to find out
Morris j. Hirsch, counsel for Mr..
Dresser. after reading the statement Of
]. P. Morgan & co, in contradiction of
Mr.. Dresser's testimony. said Why
don't Mr. Morgan and his business
partners 20 upon the witness stand aud
tell their side of this matter under
oath? The privilege of testifying viii
gladly be accorded them
To put Charles NJ Schwab on the
witness stand is now the chief object
Of the first mortgage bondholders Of
the Shipbuilding company, who want
the temporary receiver made perma-
nent because Of alleged fraud and In
solyeney.
Efforts made to subpoena Schwab
have proved futile, though the most
expert process servers in the city have
been after him, uptown and downtown,
day and night, for several days. They
have haunted his Office, on the fourth
floor Of II broadway, his apartments
uptown and the offices he is known to
frequent
It is learned that IL Mr.. Schwab con
tinues his subpoena lodging longer
drastic steps will be taken to get at
him. An application win be made to
Judge Laeombe Of the United States
circuit court for an attachment against
his body. Armed with the document
officers Of the United States court viii
have the power to invade his home OF
his Office and to smash down doors If
such action is necessary to get him.
George w. Perkins of J. F. Morgan
& Co. viii also he subpnnaed as a wit
ness to tell what he knows about the
shipbunding deal. Mr.. Perkins repre-
sented Morgan & Co. in the sale Of the
Bethlehem company, which Mr. Schwab
said he owned, but which ]. Z. Morgan
x Co. say was owned by the United
States Steel corporation syndicate. Of
which Morgan &. Co We're managers.
Surprise In Morgan statement.
One surprise in the Morgan state
ment was the declaration that the So
100000 worth Of stock which had been
takenswas disposed of by them at prl-
yate sale for $4,000 and this sum dis.
ributed as profits among the steel syn
licate. This was the stock which. I'M
der the agreement with Harris, Gates
& Co. was to have been unloaaed on
the pL3lic for S2,25000O. After six
months, the public refusing to buy, Mr..
Echwab took the stock off Mr.. Morgans
hands for $4,000
The Morgan statement that the firm
was not party to any stock selling
agreement is eontroyerted by Charles
G. Gates Of Harris. Gates & Co
This agreement said Mr.. Gates,
stated that the Morgan and Schwab
stodl1 was to be marketed first. The
agreement was all written out and
Egned when it was given to us We
were told that this agreement was to
serve as a basis for marketing the
Itock. None Of the names of the Nor
gan firm was signed to the document,
hut it was not necessary"
Lewis Nixon viii follow Mr.. Dresser
IN the stand and tell how his attempts
10 yitalize the shipbuilding company
we're thwarted and how Mr.. Schwab
Notified him over the phone that The
reason the directors did not attend the
meeting called by the president was he
cause Mr. Schwab had told them NOT
to. James Duane Livingston, who sign
ed the stock selling agreement win ia
rallied to make clear the understanding
Ab011f tbe NTaroau and uob.y