Evening journal., 1903-10-15
DECLARES SCHWAB
WRECKED PLANT
Dresser Says He Would Not
Take His Grip OFF Beth
lehem Works
PROBING SHIPBUILDING TRUST
Claims Company Would Have Been
All Right Had schwab Given Any
Decent Plan and Not the confisca-
ton Plan.

New York. Oct 1.-THE inquiry be-
fore a referee into the affairs Of the
stranded shipbuiiding combination at
the instance OF the bondholders' pro-
tective association was resumed here
and was productive OF fresh develop
ments that viii claim the attention OK
the financial world and those who fol-
low It's fortunes
10 developed that d. Leroy Dresser.
late president OF the Trust Company OF
the Republic, who last week divulgeo
much of the inner history OF the Tor
nation OF the corporation, made an
effort TO communicate with Charles M-
schwab with a view TO obtaining some
concessions as 70 the Bethlehem steel
Works that would render easier the
scheme for rehabilitating the parity
wrecked concern.
The message OF Mr. Dresser was de-
livered TO Mr.. Schwab by Mr.. Harris
of the brokerage house of Harris, Gates
& Co which marketed part OF the
shipbuilding stock. but Mr. Schwab de-
cllned to see Mr. Dresser.
w. d. Guthrie, counsel for Mr..
schwab brought the facts OF the incl
dent out at the hearing In series o.
questions directed to Mr.. Dresser. His
aim was 10 show that Mr.. Dresser had
sought to plead with Mr.. Schwab and
had threatened to make certain dis
closures when recalled to the stand
that would reflect upon Mr.. Schwah.
Mr.. Dresser denied that he had gone
to plead with Mr.. Schwab or to threat
en- him, for he had no additional in
formation to divulge. but had sought
to approach him In the hope that
something might be done to save the
shipbuilding company.
Continuing. Mr. Dresser said;
''I went there, not to plead with him,
hut to ask him to take his grip on
Il Bethlehem. and that II he did so Il
e would make the ahipbuilding companl
all right / said that II he would Civ
us any decent plan OF reorganization
and not the confscation plan that has
been proposed. the company would be
nll right
Il went over all this shipbuilding
matter with Charles Harris six weeks
. Rgo. / told him then that the wreck
Ing Of the shipbuilding company was
due to Mr. Schwab's Withholding the
profits OF Bethlehem instead of letting
them flow into the shipbulding COM
pany. where they belonged. | asked
Mr.. Harris 70 telephone to Mr.. schwab
and he did 80. II out OF the mess and
mire the United States shipbuilding
Company can be rehabilitated, that is
what l want to see lone. have no
financial interest, but feel that It will
help me-"
Mr.. Dresser said that he. saw the
name of ]. p Morgan in the list OF
members Of the Sheldon syndicte. but
did not know II Mr.. Schwab was a
member. The witness made no inde-
pendent investigation Of the ship
building plants, but accepted the re-
ports of others.
1 Mr. untermyer. ia behalf of the
b bondholders, produced two Of the resi-
dent directors obtained in New Jersey
formally to carry on the affairs of the
shipbuilding company. but only fin
ished his examination of one of them.
He claimed that they we're merely
dummy directors. who voted upon
questions involving millions Of dollars.
Of the securities Of the company with
/ out other Information or inquiry than
the orders Of the lawyers OF the cor
poration.
George +. Daley. one of the New
Jersey directors. could not tell where
the Bath Iron Works is located. and
could not tell who paid for the single
share of stock placed in his name that
he might qualify as a director
There was produced and offered as
evidence a memorandum said to have
been prepared by Colonel McCook. and
given by him to Mr.. Dresser II con-
tained the figures upon which the
{ Trust Company Of the Republic under
] took the underwriting of the shipbuild-
: ing company, and while its purpose
4 was not explained. it is expected that
it will cut an important figure at a
later stage OF the proceedings. 1t is
said that. besides the division of stock
detailed last week by Mr.. Dresser.
there was an additional division OF
money. The memorandum shows an
allowance for expenses Of 100000
cash, $300.ee0 in bonds. 100000 In
preferred stock and s5oO,oo0 in COM
mon stock.