Waterbury evening Democrat., 1903-12-09
PERKINS TESTIMONY
Ship Trust Hearing Brings Out Connection of Morgan.
BOW BETHLEHEM WAS ACQUIRED.
MOrGan's Partner Read CableEram to Paris House Saying SchwGb and Friends Are Interested I'm
 New shipbui1dinE Company.


 and Friends Are Interested In
 New shipbuiIding Company.
 NEW YORK, Dec 9.-At the hearing in the United States Shipbuilding re- ceivership proceedings Lewis Nixon, president of the company, concluded his testimony and was followed by George w. Perkins, partner in the J. F. Morgan &s Go. firm, who gave the story of the connection of Morgan X Go. with the shipbuilding fiotation. His testi- mony on direct examination went to show that Morgan x Co.'s connection with the shipbuilding company consist ed in supplying trust companies with money to loan the shipbuild1ng com. pany and in the sale to 1t of the Beth lehem plant.
 The defense made strong efforts to keep certain cablegrams and letters bearing on the French underwriting firm from being published, and at the close of the hearing MT. Guthrie pock- eted the copy of one letter the news paper men being unable to obtain it. MT. Perkins read cablegram which, he said, had been sent by his house to Morgan x O., MT. Morgan's Paris con- pection:
 | Mir. Charles NJ. Schwab and his friend are interested in the new ship building company, and we would be glad to have you take as cordial view of it as is consistent"
 Mir. Perkins insisted upon reading the cablegram despite the strenuous objec- | .at txxys ~in oF cal | for MT. Schwab.
 1 The witness declared that so much l had been said about this cablegram that it would be 8 real pleasure for him to read it.
 l The cables preceding this, in which I MT. Alexander of the firm of Alexan- der & Green had cabled to Colonel Mo Cook urging him to get the influence or Morgan & Go to stimulate the French underwriting and the reply that Nor l gan & Go. had cabled to their Paris house commenting the scheme, approv- ing the personnel of the promoters and saying the properties to be acquired were valuable, were all suppressed.
 The Bethlehem plant was acquired I from Mr. Schwab by J. F. Morgan & Co. as syndicate managers for the Unit ed States Steel corporation in the fall of 1901, the arrangement being, witness 1 said, that if we disposed of the prop erty he (Schwab) should have share of the profits" Schwab had no other interest in the company after its sale.
 MT Perkins then gave an account of the connection of the firm with the shipbuilding company. In August, 1902 he said, he was approached by Mir Pam, MT. Nixon and MT. Dresser, who wished to obtain from Morgan & Go. 2 I loan for the shipbuilding company, MT Dresser representing to him on Aug. n that large amount of the shipbuildine securities had been underwritten ir France, that the money would arrive iI l week or ten days, but that funds were needed for the company at once MT. Perkins said he declined to make the loan for the week or ten days, say ing that as firm Morgan & Go. could have no connection with the shipbuild ing industry
 The next day, after another conver sation with MT. Dresser, Mir. Perkins in behalf of his firm, agreed to deposi $75O, ,O00 in each of three trust compa nies-the Trust Company of the Re public, the Knickerbocker and Manhat tan trust companies-for ten days, MT Dresser having represented that thes, trust companies were willing to talk, an interest in-t the shipbuilding compa ny if they had the necessary funds t loan. The money was deposited, bu the Manhattan Trust company sen back the loan, finding that Morgan 1 Go. were not interested In the compa ny, and Mir. Dresser made an arrange ment with the New York Security ant Trust company to obtain that portiol of the money, Mr. Perkins introducini Mfr Dresser at the trust company, Q which he was director. MT. Perkin Insisted that the transaction through out was merely an ordinary transaC ton III foreign exchange" on the par of the Morgan company, the money be ing deposited temporarily with tn trust companies In order that the might have funds to make loan against expected money from abroad The Paris branch of Morgan < Go, h said, had no connection with the Frenc underwriting.
 Mir Untermyer pressed him wit questions about the Knowledge Morga < & Go. had of the French underwritin and of the security upon which MI Dresser obtained the money from tn trust companies, but MT. Perkins il |. sisted that these were details in whic
 his company was not concerned.
 RnhEs@rm Is