Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-12-09

"iiu Hiaue lolmal demand upon the de-
fence for the production of three cable
messages Of July IS and 80, 1862. which
| passed between members of the firm of
Alexander & Green in regard to the float
ms the shipbuilding company. The de-
fence refused. the formality being preiisn-
mar" to court proceedings to force the
production Of the papers.
| Mr.. Perkins then took the stand to tes-
tify TO the connection of the firm OF j.
p. Morgan & Co. with the fioatation of the
Shipbuilding Co., the purchase of the
Bethlehem stock and the $780, oO loan for
that purpose.
What was your first connection with
the United States Shipbuilding Coz" he
was asked
Not until after it was closed up.
had no knowledge before August 1902
except as we had talked 1t over in the
firm"
The Bethlehem plant was acquired
from Mr.. Schwab by ]. +. Morgan &
Go. as syndicate managers for the
United Staes Steel Corporation in the
fall of 1901, the arrangements being,
witness said, that. if we disposed of
the property. he (Schwab) should have
a share OF the profits" l.. Schwab had
no other interest in the company after
its sale.
In August. 1902. Mr.. Perkins said,
he was approached by Mr. Pam, Mr..
Nixon and Mr.. Dresser, who wished
to obtain from Morgan s; Co. n loan
for the Shipbuilding CO., Mr.. Dresser
representing that funds were needed
for the company at once. Mr. Per-
kils said he declined to make the loan
for a week or 10 days, saying that, as
q firm. Morgan & Co. could have no
connection with the shipbuilding indus
try. The next day, after anoter con-
versatiOn with Mr.. Dresser, MIR. Per-
kins, on behalf of his firm. agreed to
deposit $75OOOO in each of three trust
companies. the Trust Company of the
Republic. the knickerbockero or Manhat-
tan Trust Co.. for 10 days. Mr.. Ores
ser having represented that these trust
were willing to take an in
terest in the Shipbuilding Co. if they
had the necessary funds to loan.
The money was deposited but the
Manhattan Trust Co. sent back the
loan. finding that Morgan & Co. were
interested in the company and Mr..
Dresser made an arrangement with the
New York Security and Trust Co. to
obtain that portion of the money. Mr..
Perkins insisted that the transaction
throughout was merely an ordinary
transaction in foreign exchange,.se ON
the part of Morgan &; Co. At no time.
said Mr.. Perkins. was he informed that
the Paris underwriting had failed.
Morgan & Co. We're willing to nid the
Shipbuilding Co. to this extent, he
said. because the existence AZ tlIcsShi{f
building Co. would be advanta geora
the Steel Corporation and becad
sale of the Bethlehem plant h
represented to Morgan g. ca by Mr
Schwab as a highly desiralM arrange
ment for the Steel CGY The Paris
branch of Morgan & Colo said. had
no connection with th6S french UNDER
writing. ~
The transaction The Bethlehem
plant he said. osed in his office
and Schwab's ohetf{&or s7,25O,0OO. pro-
viding the moneygY6r the transaction.
was handed through his Office.
Morgan &; Co. owning the Bethlehem
plant as syndicate manager received
in payment for it the 1880 900 and ST.
100000 of each kind of stock but
neither individually or as a firm did
Morgan & Co. receive any of the ship
building securities or have anything tn
do with them. except in so far as this
$1,000. 900 OF stock was received i'm part
payment for Bethlehem. This stock.
it was brought out. was sold to Mr..
Schwab for $4,000. May l, 1903.
Mr.. McCook Of Alexander e. Green
Mr.. Perkins said, had requested sew
era times. that he cable to Morgan,
Harjes &: Co. some representation that
would aid the French underwriting.
and he had finally consented to send
= cablegram which he worded as fol-
lows:
mfr. c. NJ. Schwab and his friends
are Interested in the new Shipbuilding
Co. here and will be very glad to have
you take as cordial. o. view of it as is
consistent"
Mr.. Perkins produced the letter re-
ceiyed in reply to this at 9.27 A. NJ.
Aug. IL. IT was introduced as evil
dence and copy left with the stenog-
ra pher, Mr.. Perkins retaining the origi-
nal, but. the hearing closing at this
point. Mr.. Gutnrie pocketed the copy
and took It away. The defence. object
ed strongly to the cablegram and letter
being received.
Mr.. Perkins will continue his testi-
mony, tomorrow.
Pardon Wanted for EmbezzIer Cole.