The Montgomery advertiser., 1903-10-08
THE METHODS ! OF MIR. SCHWA AB Dresser Tells Some Inside
 History. MORGAN ALSO CONCERNED Wanted to Sell Their Ship
 building Stock. Agreement That Their shares bs Disposed of Before othsrs Were sold-rhs Bethlehem Steel
 Transfsr.
MORGAN ALSO CONCERNED

New York, Oct. Lone of the most in- teresting statements in connection with the formation of the ill-fated United States shipbuilding Company. as told by Leroy Dresser in legal proceedings today, was that after a pool of 200o00 preferred andse50.ooo common stock had been placed in the hands of Harris. Gates & CO. it was agreed that none of this stock should be marketed until 25,000 preferred and 25.0o0 common owned by J. P Morgan & Co, and 75,0oo each kind owned by c. M. Schwab had first been sold
 Mfr. Dresser told also of his original agreement. as president of the Trust Company of the Republic. to obtain tho underwriting of ss.0000Oo of United States shipbuildins Company stock; how this was increased to s4,750.000 by the failure of the French subscribers to pay up; how Mir. Schwab came to offer the Bethlehem works to the shipbuilding Company and how T. P. Morgan & Co. then came into the transaction.
 Bethlehem Steel.
 MT. Schwab, according to Mfr. Dresser. said he wanted ss.OoO,00o cash for his stock in the Bethlehem Steel Company. and submitted reports which showed that 1t cost him more than $7,000. 900 and was earning was N.45o000 a year.
 We told him we could not trade on a cash basis said Mir. Dresser, "becauss we had no cash and he said he would take $f0.000,O00 in bonds at 90 for the $3.- O00O0o."
 This was agreed to, the arxanxament also providing that he was to receive with the bonds stock bonus of s9.000.00g each of the common and preferred stock of the United States shipbunding Com pany, Mir. Schwab stating that S2000.o0e of the stock was to so to !. P. Morgan & Go.
 For the stock of the Bethlehem com- pany Mir, Dresser said there was really given sl0.0o0.00o in bonds. ss.e0O0o0 in common stock ana s9000.eo6 in preferred. There was some talk of pooling the stock Of the shlpbuildfng Company. ke Haid. hfr- schwab irsinsin8 that all tha 6teek. De held untit hts and Mir Morsan's had l been put on the market Ready Co Put Up More.
 After recess. Mir. Dresser said Mr. 1 Sohwab told him he believed the ship building Company had great future and that he would be willing to put t2.O00.a0o more cash into the business if necessary. Mir. Dresser said he believed until after 1 the purchase of tAe Bethlehem stock was made that Mir. schwab owned all the stock.
 MT Schwab he said obtained control of the ship yards company by getting men on the board friendly to the schwab interests and getting rid of those op- posed to his interests.
 Mir. Dresser said he had heard that an important envelope containing matter needed in this suit has been missed from the files of the Trust Company of tine Republic. but declared he had nothing to do with the abstraction of those papers. Tn cross examination. witness said he understood that he was given authority to borrow M,00O. 900 on the credit of the Trust Company of the Republic and that he had not been advised that 1t was criminal offense nor did he know it.
 Stocks and bonds of the Shipbuilding Company. he believed were accepted as security for the loans he made to put the deal through. The $4,100000 borrowed from the banks in which it had been de- posted by Mir. Perkins of J. F. Morgan & Co, was credited to the Shipbuildins Company.
 At the request of counsel for the ship building Company, the hearing was post poned to October 13.