Perth Amboy evening news., 1903-12-09
PERKINS TESTIMONY
Ship Trust Hearing Brings
Out Connection of Morgan.
HOW BETHLEHEM WAS ACQUIRED.
Morgnn's Partner ReHd CabIcgram
to Paris House Saying ScIswab
md Friends Are Interested In
New ~shipbuiIding Company.

new ShipDullulnS company.
NEW YORK, Dec. 9.-At the hearing
in the United States Shipbuilding No
ceivrrship proceedings Lewis Nixon,
president of the company, concluded
his testimony and was followed by
George w. Perkins, partner in the j. p.
Morgan & Co. firm, who gave the story
of the connection of Morgan &c Co. with
the shipbullding flotation. His testi-
mony on direct examination went to
show that Morgan & Co.'S connection
with the shipbuilding company consist
cd in supplying trust companies with
money to loan the shipbuilding COM
pany and in the sale to it of the Beth
lchem plant.
The defense made strong efforts to
keep certain cablegramS and letters
bearing on the French underwriting
firm from being published, and at the
close of the hearing Mr.. Guthrie peck
eted the copy of one letter, the news
paper men being unable to obtain 1t.
Mr.. Perkins read a cablegram which.
he said, had been sent by his house to
Morgan 4 Co., Mr.. Morgan's Paris con-
pection:
Mr.. Charles NJ. Schwab and his
friend are interested in the new ship
building company, and we would be
glad to have you take as cordial Il view
of it as is consistent"
Mr.. Perkins insisted upon reading the
cablegram despite the strenuous objec-
tons of William d. Guthrie of counsel
for Mr.. Schwab.
The witness declared that so much
had been said about this cablegram
that 1t would be u real pleasure for him
to read it.
The cables preceding this, in which
Mr.. Alexander of the firm of AleXan-
der & Green had cabled to Colonel Nc
Cook urging him to get the influence OF
Morgan & Co. to stimulate the French
undertakings and the reply that Nor
gan & Co. had cabled to their Paris
house commencing the scheme, APPROX
ing the personnel Of the promoters and
saying the properties to be acquired
were valuable, were all suppressed.
The Bethlehem plant was acquired
from Mr.. Schwab by J. P. Morgan <
Co. as syndicate managers for the Unit
ed States Steel corporation in the fall
of 1901, the arrangement being, witness
said, that If we disposed of the prop
erty he (Schwab) should have a share
of the profits.' Schwab had no other
interest in the company after its sale.
Mr.. Perkins then gave an account Of
the connection of the firm with the
shipbuilding company. In August, 1909,
he said, he was approached by Mr..
Fam, Mr.. Nixon and Mr.. Dresser, who
wished to obtain from Morgan & Co. a
loan for the shipbuildlng company, Mr..
Dresser representing to him on Aug. II
that Il large amount of the shipbuildlng
securities had been underwritten In
France, that the money would arrive in
U week or ten days, but that funds
were needed for the company at once.
Mr.. Perkins said he declined to make
the loan for the week or ten days, say
ing that as q firm Morgan & Co. could
have no connection with the shipbuild-
ing industry.
The next day, after another conver-
sation with Mr.. Dresser, Mr.. Perkins.
In behalf of his firm, agreed to deposit
S750,0M in each of three trust compa-
nies-the Trust Company of the Re
public, the Knickerbocker and Manhat-
tan trust companies-for ten days, Mr..
Dresser having represented that these
trust companies were willing to take
III interest in the sh!pbuilding compa-
ny If they had the necessary funds to
loan. The money was deposited, but
the Manhattan Trust company sent
back the loan, finding that Morgan &
Co. were not interested in the compa-
ny, and Mr.. Dresser made an arrange
mcnt with the New York Security and
Trust company to obtain that portion
of the money, Mr.. Perkins introducing
Mr.. Dresser at the trust company, Of
which he was a director. Mr.. Perkins
insisted that the transaction through
out was merely an ordinary transac-
ton in foreign exchange on the part
of the Morgan company, the money be-
ing deposited temporarily with the
trust companies in order that they
might have funds to make loans
a against expected money from abroad.
The Paris branch of Morgan & Co, he
had no connection with the French
underwriting.
Mr.. Untermyer pressed him with
questions about the knowledge Morgan
* Co. had of the French underwriting
and of the security upon which Mr..
Dresser obtained the money from the
companies, but Mr.. Perkins in
sisted that these were details in which
comnanV was not concerned