The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1903-10-16
D. LEROY DRESSER INSISTS THAT
STEEL MAoKATE WRECKED
sHIPBUiLDING TRUST.
REFUSED TO GRANT REQUEST
ATTEMPT TO OBTAIN INTERVIEW
OR CONCESSIONS RESULTS IN
COMPLETE FAILURE,

M 4 liz llA4uA1 y
fore a referee into the affairs of the
stranded shipbuilding combination at
the instance of the bondholders' pro-
tective association was resumed
Wednesday and was productive OF
eesh developments that will claim
the attention of the financial world
and those who follow its fortunes.
It developed that Tuesday D9sLeroy
Dresser, late president of the Trust
Company of the Republic, who last
week divulged much of the inner his
tory of the formation of the combina-
ton, made an effort to communicate
with Charles M. Schwab with a view
to obtaining some concessions as to
the Bethlehem steel works that would
render the scheme for rehabilitating
the partly wrecked concern. The mes
sage of Mr.. Dresser was delivered to
Mr.. Schwab by Mr.. Harris, Of the
brokerage house of Harris, Gates &
Co.. which marketed part of the ship
building stock, but Mr.. Schwab de-
clined to see Mr.. Dresser.
W. D.. Guthrie, counsel for Mr..
Schwab, brought the facts Of the in
cident out at the hearing in a series
of questions directed to Mr.. Dresser.
His aim vas to show that Mr.. Dresser
had
Sought to Plead With Mr.. schwab
and had threatened to make certain
disclosures when recalled to the stand
that would reflect on Mr.. Schwab.
Mr.. Dresser denied that he had gone
to plead with Mr.. Schwab or to threat
en- him, for he had no additional In
formation to divulge, but had sought
to approach him in the hope that
something might be done to saw the
shipbuilding company.
Dresser asserted. that the shipbuild-
ing company had been wrecked be-
cause Mr.. Schwab had withheld the
profits of the Bethlehem company.
This declaration he twice spiritedly
repeated when at the end of the cross
examination by Mr.. Guthrie he was
given ar opportunity to explain.
Mr.. Untermyer. in behalf of the
bondholders, produced two of the resi-.
dent directors obtained in New Jer-
sey formally to carry on the affairs
of the shipbuilding company, but only
finished his examination of one OF
them. He claimed that they were
merely dummy directors who voted
upon questions involving millions OF
dollars of the securities of the com,
pany without other information ror in.
quiry than the orders of the lawyers
of the corporation.
Ignorant of Who Paid for Stock.
George P. Daley, one of the New
jersey directors. could not tell where
the Bath iron works are located and
could not tell who paid for the single
share of stock placed in his name that
he might qualify as a director.
There was produced and offered as
evidence a memorandum said to have
been prepared by Colonel McCook, and
given by him to Mr.. Dresser. It con.
tanned the figures upon which the
Trust COMPANY of the Republic under
took the underwriting Of the ship
building company. and while it's pur
pose was not explained, it is expect
ed that it will cut an important figure
at a later stage of the proceedings. II
Is said that besides the division Of
stock detailed last week by Mr.. ORES
ser, there was an additional division
Of money. The memorandum shows ar
allowance for Expenses" of s200,00(
cash. $500, 900 in bonds. $500, 900 In
preferred stock, and 100000 in com
mon stock.