The Barre daily times. (Barre, Vt.) 1897-1959, 1903-10-16
LAYS 1T ALL
ON SCHWAB
Dresser Declares Steel Nan Wrecked
Shipbuilding Trust.
NEUTRALITY-SUSPICIOUS.
If the bethlehem Earnings Had Gone
Into the ship ComDany's Golfers
Witness Thinks, Big Concern
Would Not Have Failed.

the affairs Of the United States Ship
building company which is being press
ed by the Bondholders' Protective as
ISOLATION was resumed before Referee
onphant. sitting ae the office Of Sam
uel Untermyer, attorney for the bond
holders. D. lie Roy Dresser took the
stand when the proceedings began, but
before he was asked any questions
there was an argument over the pro-
priety Of Mr.. Guthrie. counsel for Mr.
schwab, cross examining him.
1t was finally agreed that Mr.. Guth-
rie should cross examine Mr.. Dresser,
and after it had been explained that
Charles NJ. schwab would attend and
testify when desired and several wit
nesses, including Joseph schwab, OF
iver Wren, secretary to Charles NJ.
Schwab, and John w. Young. had been
sworn, the examination proceeded.
Mr.. Guthrie first questioned the wit
ness as to the reports he had received
or seen on the value of the plants in
cluded in the shipbuilding combination.
Mr.. Dresser said that he had seen the
reports of Alexander & Green and Rid
die 4 Common, the accountants, but
denied that he had ever seen a report
on the plants made by Admiral Bowles
of the United States navy.
"From the time the prospectus was
first prepared until the transaction was
finally eonsummated had there been
anything suggested to you that affect
ed the soundness of tie companyg
Trouble All Due TO schwab.
II suspected nothing until l came
back from Europe said Mr.. Dresser.
Il made a very careful inquiry at that
time. Trouble occurred during Janu-
airy ana February, and | believe it was
due to the control by Mr.. Schwab of
the Bethlehem company
The witness then explained that he
had appealed to Mr. Pam for assistance
from tile Bethlehem company and said
TINT even after the sheldon reorganiza-
/ ton the earnings Of the several ship
building properties and the Bethlehem
company were sufficient to pay fixed
charges.
Mr.. Dresser said that all of the in
formation contained in the prospectus
of the company came from either Rid
I die & Common or Colonel McCook.
The witness said he had not talked
with Mr.. Schwab about taking a part
4 iii the underwriting Mr.. Nixon did
4 that. he said, and brought him Mr..
schwabs subscription Of S500,00o, Mr.
1 Schwab later paid the full amount Of
+ the allotment against him. He said
4 there were a series Of assessments and
/ that he believed Mr. schwab paid in
full.
The witness was then led over the cir
cumstances attending the call which he
and Mr.. Nixon made at the office Of
/ Mr.. schwab on June IA. 1902. He tes-
| tilted that Mr.. Schwab had shown his
/ reports on the operations and earnings
Of the bethlehem company Mr.
/ Schwab said it would earn S2000000 a
year the witness said, "and as a
| matter Of fact it did Asked if So
0O0,0 900 was not the prophecy, the wit
ness said. "Mr Guthrie, / do not wish
1 70 overstate the figure. Two millions
would have satisfied US that il was a
good purchase
The witness swore that he had not
received any surplus cash or first mort
gage bonds as a promoter When |
was in Paris said the witness, Il re-
cefved some stock in the company from
| Mr. Young. When left here | owned
I 1.450 shares of the Trust Company Of
the Republic, which was worth $500
GOO. but that had been pretty well
wiped out, Mr.. Young gave me either
1000 or 5000 shares of each kind Of
stock. and / sold it for 100000"
The witness denied knowledge Of the
| existence of 100000 worth of first
mortgage bonds which Mr.. Guthrie
said had neither gone to the vendors,
the underwriters nor the subscribers.
Witness said that he never knew OF
any such surplus.
Dresser Tries 10 See schwab.
1t then developed that Mr. Dresser
mad endeavored 10 get into communi-
cation with Mr. Schwab, and the tes-
timony upon the point brought from
the witness the declaration that the
Shipbuilding company had been wreck
ed through the Withholding Of the
Bethlehem profits. The effort of the
witness to reach Schwab had been
| made through Charles Harris of the
brokerage firm Of Harris, Gates 4 Go
and was brought out by Guthrie fol
the purpose OF showing that Dresser
had sought TO plead with Sehwab anc
had held over him the threat Of expo
sure of other facts in connection witt
the shlpbuilding failure
Mr.. Guthrie introduced the sensa
tional incident and testimony by drop
I ping his questions as to the stock Mr.
Dresser had received and saying, 'h'
you remember what sou did yes'er
dayg
My memory IS good l7uah fo
That answered the witna
did YOU pay two visits g the olic
Of Mr.. Charles Harrisg
Il did, said the witness.
did You not seek a private intet
/ - i, s.,H 4,