The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1903-11-11
A BIG SWINDLE.
How the Masses Of the People Are
Fleeced by Socalled
CAPTAINS OF INDUSTRY. "

The Methods Employed by Charles
NJ. Schwab and j. Pierpone
Morgan With Respect to
the Shipbuilding Trust.
There was something OF a sensation
in Wall street when Daniel L. Dresser,
president OF the Trust Company OF
she Republic, revealed under oath the
methods employed by Charles NJ.
Schwab and J. Pierpont Morgan WITH
respect to the shipbuilding trust. Inc
newspapers Of the country have palo
great attention to DresSers testimony
and some people pretend to be surprls-
ed because OF the revelations. Mr..
Dresser testified at hearing before a
special United States examiner,
Henry D. Oliphant, that the first
mortgage bondholders had obtained
the appointment Of temporary re-
ceiver for the shipbuilding company
and Dresser's testimony was lntroouc-
ed for the purpose OF showing that
the company was fraudulently impos.
ed upon and rendered insolvent
through the Vaccinations OF certain
men.
Dresser's revelations are reclted IN
an interesting story written by
Samuel G. Blythe, The special cores
pondent for the New York World.
Mr.. Blythe says that Dresser's testl-
mony threw considerable light on
the great game OF O. P. M.-other
people's money" He points out that
s'the era OF prosperity that began IN
the fall OF 1896 and rose to high tide
three years later was fostered oy a
gigantic bull market in the securities
listed on the stock exchange and solo
elsewhere. The country went money
mad. Millions we poured into Wall
street and millions were made.> Nearly
every stock went up. 1t was as easy
to make money as it was to breathe:
All that was necessary was to buy ano
take profit. Walters, caonen, othce
bows, laborers, clerks, merchants
everybody dipped into the golden
stream flowing from the church to the
riyer on Wall street and brought out
handfuls Of profit. 1t was also the
era Of combination. Industries were
consolidated. Trusts were made OF all
sorts Of factories and all sorts OF COM
modities. Clerks in the state Offices
in New jersey, where most OF the
combinations were incorporated, grew
weary Of inscribing giant rows OF
figures on the records. The prevailing
idea was to capitalize everything at
any exorbitant number OF millions
that fancy might dictate and sell the
stock to the people"
During these days Of Frantic ex-
ploitation, the shipbuilding trust was
planned. Mr.. Blythe says that the
idea was to combine the leading ship
yards Of the country and control ship
building business. Daniel L. Dresser,
the president Of the Trust Company
Of the Republic, was one of the NOV
ing spirits. According to Mr.. Blythe,
"the true exemplifcation OF the high
finance began when Charles NJ.
Schwab bought the Bethlehem Steel
company, Of Bethlehem, Pa, con-
cern that made much Of the govern
ment's armor plate. This steel COM
pany was under option year and a
half ago to Kuhn, Loeb & Co. and the
Morton Trust company, Of New York.
The plan was to sell it to the VickerS,
Sons s Maxim company, OF England.
There was an option which carried an
agreement to sell the stock to the
Americans for $3.50 a share, they to
unload at a profit on the s.nglishmen,
of course. 1t was thought on both
sides that the deal would 60 through.
Still, the owners Of the Bethlehem
company are business men, and they
cast about for a better price. A let
ter, entirely non-commiUtal, but in
forming him that the company might
sell, was sent to Mr.. SchWab, presl-
dent Of the steel trust and competitor
to the Bethlehem company. Schwab
saw a chance to turn an honest
penny. He promptly bid s24 a share
for the Bethlehem company's stock,
and his offer was accepted. There
were 299,9lO shares Of Bethlehem
stock. Mr.. Schwab's increase Of sl.50
share made tidy sum, and the
directors Of the Bethlehem company
we're well pleased. The Kuhn-Loeb-
Morton Trust company syndicate
protested vigorously, but were told it
was business, and finally decided TO
let the matter drop. Things were not
going well with the shipbuilding trust.
MIR. Schwab, having turned promoter,
had decided tosell bis Bethlehem COM
pany to the shipbuilclng promoters,
but soon discovered that the time was
not propitious This left him in the
position Of owing a great steel CON-
pany that was q competitor to the
steel combination Of which be was
president. 1t also left him with a
large sum Of money to pay for the
stock be had acquired"
At this stage Of the proceedings,
Schwab called upon Morgan. Mr.
Blythe says that Schwab explained
that be was owner Of the Bethlehem
company and president Of the steel
trust. Why not let the steel trust
take over the Bethlehem company, he
asked Mr.. Morgan, who was manager
of the syndicate Of underwriters that
guaranteed the billion dollar steel
trust bonds. The Bethlehem pro-
perty was added to the list Of the
billion dollar steel company. No pub
lie mention was made Of the fact.
The public die not know that the
steel trust owned the Bethlehem COM
pany, but, as Mr.. Blythe says, pre-
sently efforts to organize and finance
the shipbuildlng trust were renewed.
Forays we're made to England and