The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1903-12-25


New York, December 22.-Letters AMI
sablegrams which are alleged TO have
passed between New Pork and Paris in
connection with the United States Ship
building underwriters placed in the
French capital are published today by
the WOrls.
Reference to these communications
was made recently in the shipbuildin5
hearings before United States Special
Examiner Il. d. OIiphant. while Chas
II. Alexander. of the firm of Alexander
and Green, attorneys, was undergoing
examination. The letters which We're
kept secret by agreement of counsel.
were said to show what methods had
been pursued in order to compel the
French investors to meet the calls for
money on their underwriting after they
had been given to understand through
cablegram sent by the Trust Compa-
ny of the Republic to it's agent John
W Young. that the underwriting was
a success" This disptch gave them
the idea that they only need stand
ready to receive their profits as MEM
bers of the underwriting syndicate
Charles b. Alexander happened to be
an Paris at the time, and to him fell
the duty Of removing the false impress
sion and holding the signers of the
subscription list to their agreement.
pany here. which had charge of the
underwriting and the communications,
which fill seven columns Of the World
are alleged TO have passed between Mr..
Alexander and his firm in this citv.
The alleged correspondence began
July 10. 1902 and in the early stages,
revOlves largely around the investIga-
tion set on foot as to the fina ncial re-
spOnsibihty of those whose signatures
had been secured in Paris to the under
writing agreement. which was then
in the care of the Bank de Roma.
Baron CaIvet ROgniat and NJ. Schreyer,
a banker. were the heaviest subscrib-
ers. While both were much disap
pointed over the misunderstanding Of
the SUCCESS of the underwriting here,
they were stated to stand ready to
pay their shares.
Then came the exciting portion Of
the correspondence. The banking
house OF Morgan, Harjes & Co, had
been selected TO receive payments to be
cabled at once to the Mercantile Trust
Company of New York, but the sub
scribers had not come forward. and on
July 2Sth, letter states that Mr.. Alex
ander had changed his tone with re-
-. = Writ iS
quoted as follows:
While 1t may be true that these un-
derwriters were not treated property
by Young In leaving them under the
impression for so long time. that all
the bonds had been sold. yet this had
been attoned for by the patience and
care with which we have in the last
week given explanation after explana-
tiOn to all parties. They are row all
In default from the 25th, and l have
told OpYenheim to notify each one that
their individual liability in case tha,
money 3 not il New York III t-ma 10
make The payment VIII not be limi:e I
10 lie amount of their securities, btt
that there Will be consequential dam
ages o every party connected with the
affair
postscript the impressions said TO have
been their own given out by the young
er Harjes. who was reported to be very
much prejusitCed against the whole af-
fair and that II was said by the cashier
that there was no market in New York
for the bonds. The writer adds that ,Ie
saw HarjeS at once and threatened 10
turn the account over to the Credit
Lyoun1ise and thereuEon. Harjes
agreed to sell everything good he cou.,i
about tE4e personnel Of the company and
the affair. Efforts through other
sources also were made. according tC
letters and cablegraTnS quoted 10 cOun-
teraCt the effects of various other re-
ports circulated as TO the impend ne
collapse OF the underwriting scheme in
New York
According to the World, the word
'Drexels" was used in the correspou-
dence 10 represent Morgan, HarjeS &
Co, and in one OF the letters credited
to hr. AieXa nder. there appears Hic
following: Il got a pledge from tn:
Drexeas that everything good should
be said of the enterprise"
One "a the French underwriters wa!
named Schreyer and the following ref