New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-15

rS~S,s; COMPANY Of the Republic s-spck valued
$780, s ne " be,Teen nag sSoS ana xe Of each Kind Of
shipbuilding stock which sold for Meoo9 cash.
,e~res and ss7eea common stock? A~No 81 not.
i think between S4aoooo and $o0@e OF each.
IT was al this point that Mr. Guthrie began TO
ask about Mr. Dresser's visit TO Harris. Gates
e. Co on Tuesday. leading the witness on. TO the
declaration that Mr.. Schvvsb had wrecked the
shspbuilding company by withholding. Bethle-
hem earnings Before and for time after re-
cess Mr. Unt.sr1nyer confirmed the redirect ex-
animation Of Mr.. Dresser.
NEVER SAW THE CONTRACTS
Were you ever informed how mach the sep
arate vendors were TO get for the sale Of their
piants?" NIr. Unsermyer asked
NO"
o-wrosc plan was this? A.-Alexander e
Green's Den'inc carried il out -, -,
how these securities were distributed? AR
Young could tell.
The only knowledge Mr.. Dresser said he had
about the amounts to be received by the ven
doris for their plants was that there was 10 be
secured through the sale Of S9.oe0ooo Of bonds
for cash at 90 the sum Of IS 100000. The ven
doris were TO receive S6.4o0oo0 in cash. $4,000
600 in bonds. 100000 in preferred stock. and
100000 in common stock
Mr. Dresser said he learned in London Of the
learned he said that the sheldon syndicate was
organized 10y c W wetmore president Of the
North American Company; George r. Sheldon
and Mr. Satterlee. J. Pierpont Morgan's son-in-
law The syndicate had relieved the Trust Com
pany. OF the Republic Of its liabilities and taken
over the bonds Of the United states Shipbuild-
tng Company at ~ or -. he was not sure which.
with a bonus Of - per cent of common stock
and p per cent or the preferred.
Did YOU object TO this2"
L certainly did. held 1.450 shares Of the
trust company stock. more than any one else.
and felt that I.should have been consulted"
MORGAN DOWN FOR 100000"
He had had the minutes Of the meetings at
which the deals were made offered to him to
read. but had refused TO read them or the plan
Of reorganization by the Sheldon syndicate. Re-
garding the papers Of the latter syndicate he
said: 4 glanced at some papers and saw that
Mr.. Morgan was down for 100000"
WAS Mr.. Schwab DOWN."
Il do not know"
M Dresser said he had never made a per
sonal inspection Of the shpyards. nor had had
one made for him. He once attended q launch
ing at the Crescent yards. Mr.. Pam, chair
man Of the executive committee. reported at
each meeting Of the board Of directors of
the United States Shipbuilding Company. Mr..
Dresser said he resigned from the board Of di
rectors before March 9. when he made his per
sonal assignment. He had mentioned that he
would probably have to assign. and Mr.. Pam
told him to hand in his resignation from the
board 81 directors at once. which he had done
Mr.. Pam had charge Of the finances of the
United States Shipbuilding Company.
A DUMMY" DIRECTOR
The next witness was one Of the three dun
nay" directors Of the. shipbuTding company after
its organization. He young man. and he
said he Louis r. Daley. assistant treasurer
of the Corporation Trust Company Of New-Jer-
sey. He declared he did not know what inter
est Max Pam had in the company.
Q-Didi any one ask you 70 become director Of
rhink the matter was handled by the New-fork
.Q---Did you know any Of the other directors?
over two Of the directors clerks in the Cor
o-Did y9s ever buy any SOCK Of the United
States Shipbuilding company A-pne snare
Q-You know you did not pay. for it, don't YOU?
Al know did not pay for IL from my own per
o-You know DO you not that when these
various shipyards taken over they heaV-
ily debit Al have 50 leasned.
over that they were heavily in debt? Al did not
neSS IN the prospectus Of june II. 1879 AT6st
prospectus vas not made by me.
Republic checked the statement Ave accepted
from.
Q.-When you bought tho Bethlehem from
did.
Q.-For bow nuch2 A-There were two mort
Q.-Have you ever received any benefit or advan-
tage whatever. ~ this promotion except what
. you have stated Al have not.
n The witness declared That the share must
have been paid for as that was usual with the
Corporation Trust Company when il furnished
resident directors Cor corporations At the time
he became director he had no bank account
who told you YOU were 10 be Director"
when we held the organization meeting we
received our instructions from New-York 1t
was the
VOTED OFT S70oaoaoo
You know. DO YOU not. that If was Won and
your two co-direotors who voted out the SO
oooooo Of stock Of the United States shipbuild-
ing Company" asked Mr.. Tnterrnyer.
I do"
Al The time of that first meeting did Won and
your two co-directors know anything about the
shipbuilding plants"
Il did not
II was with much reluctance that the witness
admitted that he and the other two directors
Were merely oueyine instructions Of others in
what they did At the meetings Of the companv.
Opon whose INSTRUCTIONS" asked Mr.. Inter
nyer
I don't know. mink it was Alexander &
Green"
CoRPoRATORs OF THE COMPANY.
The oorporators 81 the United States Shin
building Company. Daley said. were Horace X
Wood president 81 The Corporation Trust Conn
pany. Horace ;. Gould. assistant secretary, md
Kenneth +. MdcI.areu. Secretary. .,,d ....--