The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1903-11-11

600 to Schwab and s5,o00,0 900 to Nor
gan. That closed the deal, 50 far as
Dresser and Nixon were concerned.
1t did not close the high finance.
Morgan and Schwab had to get their
profits"
Dresser testified that when the
negotiations were on, Mr.. Scnwao tolo
him it would be necessary to market
the $50, OOO, 600 block OF stock owned
nv Schwab and Morgan before any OF
the $40, 100000 remaining stock was
10 be sold. This was TO reimburse
Schwab and Morgan for their laborS.
IL was agreed that the stock should
be put on the market at S65 a share
for the preferred and S25 a share for
the common. If, as Morgan and
Schwab expected, stock had been
sold at these figures, Morgan would
have received S2.250,0O0 for his S.
900, 900 worth and Sch~ab would have
received S6 $50, 900 for his SIS, ,000,0 200
worth. This was to be the cash bonus
for selling the Bethlehem company to
the shipbuilding company. Then, If
the public appetite was unSatiShed the
holders OF the O,O00,Ou0 remaining
out OF the s30,O00,000 worth Of stock
might sell theirs.
To clinch this arrangement, an
agreement was signed between the
stock brokers, Harris & Gates, Charles
NJ. Schwab and Dresser and Nixon
which stipulated expressly that the
s5,OO0,00O worth OF stock owned oy
Morgan and the Sl5, 900, 600 worth
owned by Schwab was to be sold trst
at the price agreed upon-S65 share
for the preferred and s25 d share for
common. Not share Of the other
stock was to be marketed until
Morgan and Schwab had cleaned
out their holdings to the public.
This was rather rough on the
other insiders, but Dresser and Nixon
signed. The agreement was ready
before they got there. 1t is dated
August II, 1902, which is the day
when the deal was closed and the
stock transferred to Morgan and
Schwab. Those gentlemen bad their
plans laid and they were ready to do
business at once. They took no
chances, but demanded that the sl0,
100000 worth of stock remaining
should be held in trust until the Nor
gan and Schwab stock was sold. The
scheme vas beautiful in its simplicity.
Morgan and Schwab wanted their
money, wanted it first, and they left
no loopholes, 1t was an arrangement
within an agreement. There were
two kinds OF insiders, real and theore-
tical. Morgan and Schwab were the
real ones. The theoretical ones were
obliged to wait uotil the public had
been MIXED Of the millions demanded
by Morgan and Schwab. Then the
public was to be MIXED again with
the remaining sl0,00O,00O Of stock.
Anything left after that the public
could have.
In the witness chair, Mr.. Dresser
did not explain why Morgan s Co.,
demanded the enormous bonus OF s5,-
900, 900 worth Of stock. Dresser said
the check which he paid The Morgan
company was given him by Mr.
Schwab. Mr.. Blythe says that the
men who are familiar with Wall street
affairs say that Mr. Schwab got the
check from Morgan and that, if it is
true, explains much. 1t also shows
that Mr. Morgan, if the conclusion
is correct, demanded 81, 100000 fol
the short time loan Of s., ,246, 81: that
he gave the check and took it back at
once, for Dresser and Nixon indorSed
it to him Immediately after they had
received it, and that Mr.. Morgans
firm simply bought its own property
with it's own money-put the check
from one pocket to the other-and ex-
pected to get s2,25O, 200 for the &C
commodation. Mr.. Schwab has never
told where be got the s7.246,S1l.
Mr.. Blythe concludes bis interest,
ing comment upon tne Dresser testl-
mony in this way: This is the story
Of high finance and the Shipbuilding
trust. Two years or three years ago
it would have ended happily just here,
for the public would have bought the
stock and Schwab and Morgan would
have made their money. 1t does not
end happily for Morgan and Schwab.
The public refused to pay. They
would not touch the sbipbullding
trust stock. Harris & Gates could
not sell it. 1t was Of no value. The
specifications provided that the in
vesting public should clamor for the
stock. They had clamored for stock
just as worthless in days gone by.
Greatly to the aStoniShment OF all
concerned, there was no clamor.
Various expedients were tried to start
a boom. The boom wouldn't start.
Finally, Mr.. Schwab gave J. P. Nor
gan s. Co., $4,000 for their s5,00O,-
900 worth Of stock, for which the pub
lie was expected and asked to pay
thirty times as much. Mr.. Schwab
may have that stock now, together
with his own SIS, 900, 900 worth. The
shipbuilding trust is in legal tangle.
Nothing but high &nance has suffered,
except the shlpbuilding trust stock,
which cannot be given away. High
hnacce has suffered and suffered great
ly. The public com preaenSion has
been illuminated by DreSSer'S story
of how a pool was formed within a
pool, how it is possible TO be buyer and
seller at the same time, how there are
agreements back Of agreements, how
there are cellars and sub-cellarS under
the ground floor, and how deliberate
campaigns are made to fleece the un-
wary. There are many denialS and
talk Of prosecuting Mr.. Dresser.
Meantime DreSser'S reply has sunk
deep into the public mind and the con-
clusion is raridly forming that there
are hut two sides to the promotion of