The sun., 1903-12-09
MORGAN PARTNER A WITNESS.
PERKINS TELLS OF HIS FIRMS
Part IN SHIPYARD DEAL.
Had No Interest. He Says. Except In the
sale OF the bethlehem Steel Co.
sent a Non.COmmittal Cablegram to
Their Paris House About McCOOk.

Moryau 4 Co., who as managers OF the
United States Steel syndicate sold the
Be,hehem Steel Company to the United
states Shpbuiding Company, was called
as a witness Yesterday afternoon at the
Nearing in the action brought by the COM
nmining bondholders to make permanent
fine appointment of a receiver for the United
States Shipbuilding Company. MIR. Perkins
,cstifed that Morgan Il Co. had acquired
the Bethlehem Steel Company from Charles
NJ Schwab a year before it was sold to
nrcsscr and Nixon for the Shipbuilding
conpanv, with the understanding that on
tho sale of the Steel company by them
Mfr. Schwab was o have fair proportion
or the profits of the sale. Mr.. Dresser
and Mr.. Nixon have both testified that Mr.
SrbNob told them he owned the company.
MIR Perkins said that the Shipbuilding
compauv. it was understood was to be
friendly TO the United States Steel Corpora
rion. for which the firm was acting. Out
.,ctc of this the firm. he said, had had no
interest whatever in the plan for ship
Yards combination, and had refused to
in'eres, itself in it,
Three cable dispatches which passed
between Col McCook and Charles B. Alex
counsel for the Shipbuilding company,
sunpo.edlv in reference to the French
underwriting of the company, and letter
from Morgan, Harjes & Co., the Paris branch
Of the Morgan firm, were the subject
Of controversy between counsel at the
tearing
Mr.. Untermyer. counsel for the COM
planning bondholders, announced that he
wanted to question Mr.. Perkins about the
cahlegrams, and he produced copies, which
Mr.. Guthrie. who is counsel for the Ship
building company, and who il also looking
oI, for Mr. Schwab's interest. refused to
admit. One of the dispatches was sent by
Col McCook to "Beattie. Paris" in July,
1902, when the effort to get subscriptions
in France was being made. The other
Two vera from "Beattie. Paris" to Col.
McCook, Mr. Untermyer said
Copies of the cablegrams were shown
10 Mr.. Gulliver of the Arm Of Alexander
4 Green. who was present at the hearing
but he declined to indentify them, on MIR.
Guthrie's advice, the objection being based
on the ground that they were privileged
communications between members OF a
law firm. Mr.. Untermyer contended that
the firm was not then engaged in law busi-
ness, and he wanted the copies to 60 into
the record for future Identification but this
Mr. Guthrie fought strenuously.
we protest. said he, against giving
publicity in this manner to improper evil
dence. and we ask that they shall not be
given to the press" Mr.. Untermyer said
that Mr.. Guthrie had given to the press
letters affecting himself but this brought
tho retort from Mr.. Guthrie: your state
ment is entirely untrue" Mr.. Untermyer
said that he should not let Mr.. Guthrie's
morals govern him, and he hadn't given
the copies out Mr. Guthrie fought the in
PRODUCTION of the copies, too. although
Mr.. Perkins, who produced them, seemed
to be desirous that they be given out.
Mr.. Perkins. when called, said that he
had had no connection with the shipbuild
ing affair before August, 1902, and until
that time had only heard of it as it was
talked over by members OF the firm He
said that Mr.. Steele, another partner, had
charge of the matter and Of the drawing
I'D of the contract OF sale Of the Bethlehem
company.
Q When was the stock of the Bethlehem
company acquired by the syndicate? A In
July or June. 1901
y From whom? A. From Mr. Schwab.
. During the year it was held by the
syndicate did Mr. Schwab have any interest
it? A None whatever.
. Was it an absolute purchase from him :?
II was held by the syndicate pending
It's disposition Our arrangement was that
II We disposed Of 1t Mr.. Schwab should have
what we thought was fair profit. as he
had taken the initial risk in acquiring the
stock
Mr. Perkins said that he did not know
who made this arrangement. Mr., Schwab,
he said, had simply made the firm an offer
and it had been accepted. Before the
closing of the deal. on Aug. IL, 1902, the
witness said he had several talks with
Dresser, Nixon and Max Pam in Morgan
4 Co 5 office, but these talks, he explained.
we're in reference to the foreign exchange
Mr.. Dresser, he said, had told the firm that
the money was coming from France, but
that it had not reached here yet.
We did not question. this said Mr.
Perkins. I'VE relied solely upon Mr.. Dres-
scr and took his statement for it,"
Mr. Perkins admitted that Mr.. Dresser
had come to him just before the deal was
to be closed and said that the money had
not arrived. Regarding the deposits which
Mr.. Perkins then made with certain trust
companies in order that Mr.. Dresser might
borrow from them enough to pay the ven-
doris of plants. Mr.. Perkins said:
"Mr. Dresser told me that the money
from France would be here within ten days
and asked me if we would make loan on
securities of the company. told him we
could not do that, because the firm could
not have anything to do with the Ship
building business. The next day he came
in and ! finally agreed to deposit 500 600
In each Of three different trust companies
for ten days, until the French money came.
Mr. Perkins said that one of the COM
panies, the Manhattan Trust Company,
had returned the deposit after ascertainng
that the business was not being done for the
FIRMS account and that the firm was not
Interested in the Shipbulding matter. The
money was then deposited in the New York
Security and Trust Company, where, MIR.
Perkins said. he introduced Mr.. Dresser.
Mr.. Perkins said that he had not told the
trust companies the purpose of the deposit
and had made the deposits because Dresser
had told him that the companies were
willing to loan money to him pending the
arrival OF the French money if they had il,
we weren't taking any responsibility
in the affair" said Mr.. Perkins. "We
simply left the money for ten days in the
trust companies. 1t was matter of for
c'gn exchange
Mr.. Perkins admitted that he had de-
posted the money for Mr.. Dresser to bor-
row, Mr.. Untermyer wanted to know
II the firm had not been anxious to have
the shipbulding deal go through and for
that reason had made it possible for Dresser
,S no, ba r,onoy NJ bork inc rapliaI