The Butte inter mountain., 1903-12-22
BEARING
ON A GREAT DEAL
INSIDE INFORMATION OF UNDER
WRITING OF THE u. S. SHIP
BUILDING.
HE DROVE THEM VERY WELL
American Sent Abroad to Round Up the
European investors Found Them
Very Easy to Talk To.
ny ASSOCIATED PRESS,

ny ASSOCIATED PRESS,
New York, Dec. ss.-Letters and cable
grams, which are alleged to have passed
between New York and Paris i'll connec-
ton with the United States Shipbulding
underwriting, placed in the French capital,
are published today by the World. Ref
erence to these communications was made
recently in the shipbuilding hearings be-
fore United States Special Examiner Oil
phant, while Charles b. Alexander, OF the
firm OF Alexander x Green, attorneys,
were undergoing examinations.
This was kept secret by agreement OF
counsel to show what methods had been
pursued, in order TO compel the French
investors TO meet the calls for money on
their underwriting after they had been
given TO understand, through a cablegram
sent by the trust company of the republic
to its agent, John w. Young. that the un-
dcrwriting was a success"
This dispatch gives the idea that they
only need TO stand ready to receive their
profits as members OF the underwriting
syndicate.
He Happened in Paris.
Charles B. Alexander happened to be
in Paris at that time and to him fell the
duty OF removing the false impression and
holding the signers OF the subscription list
to his agreement. His firm is counsel for
the syndicate here which has charge OF the
underwriting, and the communications
which fill seven columns OF the World
are alleged to have passed between Alex
ander and his firm in the city.
The alleged correspondence began Jam
uary $4,000, and in the early stages re-
wolves largely around the investigation set
OH foot as TO the responsibility OF those
whose signatures have been secured III
Paris to the underwriting agreement,
which was then III the care OF the Bank de
Rome.
Ready to Pay.
Baron Calvet Rognial and NJ. Schreycr.
banker were the heaviest subscribers.
While both were much disappointed over
the misunderstanding as TO the success OF
the underwriting here, they were stated
| TO stand ready to pay their shares.
| Finally the situation had been ex-
| planned to the satisfaction OF every one
| and preparations were made for the first
call upon underwriters July 25, for IS
| per cent Of the subscription. to be fol-
lowed by the second, payable August 1, for
| the same amount
| Then came the exciting portion OF the
correspondence. The banking house of
| Morgan, IIarjcs < Co. had been selected
| 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 IS. 10 which day the pay
mcnts had been postponed, and on July 20
a letter stated that Mr.. Alexander had
changed his tone with regard to the situ-
alton.
They Explained.
The writer is quoted while it may
be true that these underwriters were not
treated properly by Young, in leaving them
under the impression for so long a time
that all the bonds had been sold, yet that
was well atoned for by the patience and
care with which we have in the last week
given explanation after explanation to all
parties. They are now in default from the
2sth, and | have told Oppenhcm TO notify
each OF them that their individual LA
bility in case that money is not in New
York in time to make the payment will
not be limited to the amount OF their Sc
curities, but that there will be consc-
qucntial damages TO every party connected
with the affair"
The letter criticised severely in post
script the impressions said TO have been
thrown ont by the younger Harjcs who
|
against the whole affair, and it was said
by the cashier, who said there was no
market in New York for the bonds
Threatened to Tell.
The writer says ne saw Ilarjcs at once
and threatened to turn the account over
to the Credit Lyonnaise and thercupon
Harjes promised 10 tell everything about
the personnel OF the company and the
affairs. Efforts through other sources also
were made, according to letters and cable
grams quoted to countcract effects of vari-
Gus reports circulated as to the impending
collapse Of the underwriting scheme in
New York.
In one OF the letters from Paris ad
dressed to Alexander and Greem, Mr.. Alex
andcr is quoted as follows;
81 constantly say to all parties that moth
ing can he done in the way OF assi.tna
the underwriters here to dispose OF theil
bonds, unless they frankly come forwarc
when notified, acknowledge their liabilit,
and make their first payment, when al
hands will unite in cndeavorins to sell an,
bonds they may wish to dispose of.
The Viscomtcsse Dandignea sat by m,
at dinner last night. She had some o
Scots Union Iron works stock and hat
just tclegraphcd refusing to sell it cxcep
for higher price. think | persuaded
her that perhaps Scott would make he
an offer in the securities Of the new com
pany which will be good enough to be at
tractve as one of her difficulties is tn
trouble OF investing the money she ma.
receive"
Pope Had Money There.
,, In another letter dated July ", 1909
signed by Alexander, the statement is mad
that in investigating the Bank Of Rome
the writer learned that the pope hat
,, 10000 900 in that bank, that he had
similar sum with the Rothschilds AM