The Barre daily times. (Barre, Vt.) 1897-1959, 1903-10-12
Counsel For BondhoIders
Issues a Statement.
NO CRITICISM OF MORGAN
Grievances Against Mr.. schvynb CALI
Ell VERY Real aud serious"--As-
sertion That Latter Took Tn
lawful Control OF Company.

New York, Oct. 12.-In answer to in
quiries Samuel Untermyer, counsel for
the bondholders' protective committee
Of the United States shipbullding COM
pany, has made the following state
ment in regard to the complications in
the affairs of that company:
NO attempt has begin made to sub
pena Mr.. Perkins. There win not be
the least difficulty in doing so when
ever desired. Mr.. Perkins, unlike Mr..
Schwab, is one of the most accessible
men in New York He has volunteers
ed to testify whenever notified. The
suggestion that Mr. Perkins departure
for his usual tour Of inspection has any
relation with the desire to evade or
postpone his being called as a witness
is too ridiculous for comment.
Il have already said and repeat that
the creditors of the shipbuilding com
pany whom we represent have no
grievance against J. r. Morgan &
Co. There is nothing in their relations
TO the business which Is the subject Of
just criticism, and / fully regret all
this tempest in a teapot so far as they
are concerned.
1.-THE agreement with Harris, Gates
& Go. to market the Schwab- Morgan
stock before other stock was marketed
was made with Mr.. Schwab 1t pro-
vided for the marketing Of 10000
shares of stock of Messrs. Morgan &
Co. with the 10000 shares of Mr..
schwab, While it thus provided, we
have no reason to believe that Messrs,
Morgan & co. knew OF the. existence Of
that agreement, nor does it in the least
concern US in this case.
Charges Against MIR. schwab.
"our grievances against Mr.. Schwab
and his representative, Mr.. Pam, are,
| however, very real and serious. 1t is
toward establishing those charges and
not against Messrs. Morgan & Co. that
the testimony Of Mr.. Dresser is directed
The first mortgage bondholders claim
, that Mr. Schwab, under the guidance
and inspiration Of Mr.. Pam, first, took
control of the shipyards company in
, an irregular and unlawful way by
means Of sale of the Bethlehem
I plant at an extortionate price and
upon unconscionable terms; second
that having thus secured control the
condition Of the company was misrep-
resented to the Stock Exchange by the
: company's treasurer as one of great
promise and prosperity when it was
at that time on the eve of collapse
and that this was done to induce in
vestors to buy the securities; third,
that tile large earnings Of the Bethle
hem company, 10 which the shipyards
company was entitled and which We're
more than sufficient to pay the interest
7 on the first mortgage bonds twice over,
2 We're withheld and refused by Mr..
. schwab, and that it was this which
brought about the collapse of the com
pany; fourth that the default was
forced by Mr. Schwab for the express
purpose Of enabling MIN to supplant
the lien Of the first mortgage bonds III
favor Of his second mortgage bonds
through threats of foreclosure, and,
fifth, that Mr., Schwabs plan Of reor-
ganization, which announced the in
, solvency Of the company, was the
) fruition Of his scheme to corral the
bondholders' property without paying
t for ii.
1.-THE bondholders claim that Mr..
schwab's S10,00o000 mortgage is void;
that he is subject to a stock liability
of S20,000,000 on stock for which lie
has not paid, and that the company
can be made entirely solvent by the
enforcement Of the remedies against
him for his acts. It is not for a mo-
ment suggested that Messrs. Morgan &
Co. had any knowledge Of or connec-
ton with any part Of this scheme
Roosevelt Receives EngIishmen.
Washington, Oct - The president
and Mrs. Roosevelt have given an elab-
crate reception to the Honorable Artil-
lery Company of London
m. m