The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1903-10-16

New York, October 14.-The inquiry
before a referee into the affairs of the
stranded s~hipbuiIding combination at
Che instance Of the BondhoIders Pro-
zectfve Association was resumed today
and was productive of fresh develop
rHents that will claim the attention of
She financial world and those who fol-
how its fortunes.
1t developed that yesterday. D. Lee
Roy Dresser late president of the
Trust Company of the Republic, who
East week ivulged much of the inner
history of the formation of the COM
2inatiOn made an effort to communi-
cate to Charles NJ. SchWab with Il view
ID obtaining some concessions as to
n bethlehem Steel Works that would
Gender easier the scheme for rehabiIi-
Eating the partly wrecked concern. The
message of Mr.. Dresser was delivered
20 Mr.. Schwab by Mr.. Harris. of the
brokerage house of Harris, @ teS and
Company. which marketed part of the
sh"ipbuildinS stock. but Mr.. Schwab
declined TO see Mr.. Dresser.
w. D.. Guthrie, counsel for Mr..
Schwab, brought the facts of the in
cjdent out at the hearing III Il series
Of questions directed t. Mr.. Dresser.
His aim was to show that Mr.. Ores
ser mad sought to plead with Mr..
SchWab and had Threatened to make
certain disclosures when recalled to
The stand that would reflect upon Mr..
>schwab.
Mr.. Dresser denied that he had gone
so plead with Mr. SchWab or to threat
'.n him, for he had no additional IN
- S1-,I~l I-+ bod nc I
20 approach him in the hope that
something might be done to save the
bodybuilding company.
Mr.. Dresser asserted that the ship
building company had been wrecked
because Mr.. SchWab had withheld the
profits of the Bethlehem company.
VThi declaration he twice spiritedly re-
Deated when at the end of the cross
examination by NJ Guthrie. he was
given an opportunity to explain
Nh. Untermyer, in behalf OF the
D~OndhOlders, produced two of the resi-
dent directors 0Htained in New Jer-
aey formally to carry on the affairs
IF the shipbuilding company, but only
FINISHED his examination of one OF
them. He claimed that they were
merely dummy directors who voted
uDOn questions involving millions OF
dollars of the securities of the COM
pany without other information or
inquiry than the orders of the law
yers of the corporation
George ?. Dayley, one of the New
Jersey directors, could not tell where
-he Bath Iron Works is located. anC
.s1uId not tell who paid for the single
share Of stock placed in his name thai
I,e might qualify as a director
There was produced and offered as
evidence. a memorandum said to have
Eoeen prepared by Colonel McCook, anC
&iven by him to Mr.. Dresser 1t con
mined the fpITpS IDnn winch the
Trust Company of the Republic un'
sierStOOd the u~nderWrltIn" OF the snip
'Cuilding company and while its pur'
lose was not explained. It is expected
That it will cut an important figure a
r later stage of the proceedings. 1t !!
aid. besides the division of stock de
JAILED last week by Mr.. Dresser. there
~xas an additional division of money
The memorandum shows an allowance
Tor Expenses" of 5000 cash. 100000 IL
$500. 900 in preferred stock ant
$500. 600 In common stock
Replying to Il question by Mr.. Tn
rmy Mr. Dresser said that 81
weeks ago ne saw Mr.. Gates and toll
him that If Mr. Schwab would TAX
his grin off Bethlehem the ship
building company would he all rl@nl
I went to the office OF Harris. Gate
and company" he said. in the IN
-arests of the ShiphuiIding company
Mr.. Schwab has taken this means o
-~,uttiug il before the public to ShpN
that I was there 10 plead with him
went there not to plead with him. hu
70 ,sk him to take his grip off Beth
-eneu rrz that f hc lid 80. he wOul
make the Sh~iubUildiD@ company a
right. 7 said that II he would gtv
zlS any decent plan Of r"or~n niZ1tIo
and not h coufSc1tion plan that M
pc N0Cset. the cOmr30y would I
al right. > went over al this shfT
E,uiI1:~~ matter with Chari.- Harr
six weeks ago. ! told him then thS
-Na wreckfug IF the ShinhUiIdinC con
-1anv was due to NJ SrhWHb viii
holding the profits NJ BethIehem. II
stead Of letting them flow into II
znipbuiIdiuc COMPANY where they n
wonred I asked Mr. Harris to tel
-onone to Mr. Schwah and he did $
# ont of the mess and rlire. the Uni
IA states S~hipbuilGiu~ Company &C
Er rehabilitated that is what Wal
20 see lone. l have no nancl 1
verest. but l feel that il will help me
Mr.. Dresser said nat when he u
eiertoOk the s~hipbuilding project I
Ehe Trust Company of the RepubI
~ believed that S6.000.0N had be-
u~nderwritten in France. MT. Dress
said hat he saw the name OF }.
Morgan in the list of members Of I
Sheldon syndicate. but did not knC
If lIr. Schwab was a member. I
witness made no Independent inTes
cation OF the s~hipbuilding plants. b
accented the reports of others. ]
testified hat the prospectus had be
approved by the Mercantile TIT
Company. He said that he had Sc
eraI talks with Mr.. Pam for a mon
of 1902 about the earnings of the co.
pany. Mr.. Pam showed him repo,