New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-08

be held until his and Mr.. Morgan's had been put
Q.-was there any market? A-Harris, Gates &
CO; were to make market .-,.,, -.,,,,
he marketed first? Al don't know. Mr.. Schwab
Insisted it.
Mr.. Untermyer then read a paragraph from
the agreement referring TO the authority of
Harris. Gates & Co. to sell shares of the COM
mon and preferred stock
Mr.. Dresser said Mr.. Schwab told him he be-
lieved the shipbuilding company had a great
future. and that he would be willing to put
another 100000 cash into the business If
necessary. Our relations were most friendly,
Mr. Dresser continued. II anxious TO be
closely associated with Mr.. Schwab, and asked
him to take a place the board Of directors of
our trust company. He said he would take the
place at the beginning of the year
Q-when the French underwriting money did
Mr. sehTab was not in he country then went
that had done all 1 could: that the Trust Company
of the Republic only the bank OF issue and
fa PROMISED % S if it wa Du needed and that
unless s25o9,ce0 was forthcoming to make good the
French underwriting the deal could not go through
Mr.. Pam said he had no authority TO advance the
PERKINS. Of Nj Morgan's firm The facts were ex-
planned TO Mr.. Perkins. He said he had no right
where he chose and he would deposit the neces-
named the Knickerbocker Trust Company and the
Trust Company of the Republic. and l suggested
New-York and Security Company, and we obtained
SZIWVOo Ahal was AGgusu ana v NE II ac' ION
security Of the French underwriters and gave
notes. Mr. Nixon and gave the notes.
Mr. Dresser spoke Of his trip TO Europe in
September, 1902. He said he went to France to
look I'D the French underwriters who were
supposed TO have underwritten for the Mer-
camille Trust Company. Nothing but $4,000
was ever received from them out of the 81 25O-
600 Mr.. Dresser had been assured would be
forthcoming.
HOW MR.. sCHwAB GOT CONTROL
Q-Now tell US the steps by which Mr.. Schwab
1t was by getting men the board friendly to the
schwab Interests and getting rid Of those opposed
o~Who was 1t reported that the shipbundins
months Of its existence? A.-Mr Pam made that
statement TO the executive committee He said
the earnings were shown by the treasurer's report
Mr.. Gary was present when the statement was
made.
Mr.. Pam had charge, Mr.. Dresser said, Of
getting the corporation securities listed on the
Stock Exchange. Mr.. Untermyer presented
copy OF the statement submitted to the Stock
Exchange. and it was admitted in evidence
without objection. Just about that time. the
middle of December, the witness added. he ap-
preciated that things were not in good shape.
Mr. Pam had asked the Trust Company OF the
Republic TO lend the company some money. Mr..
Dresser had answered that his company had
gone far enough and reminded Mr. Pam of his
pledge that the selection OF Mr.. Gary as treas
urer should relieve the directorate OF all fnan-
cial worries. Mr.. Pam retorted, the witness
said that if the Trust Company Of the Re
public could not help out the shipbuilding COM
pany, the company would transfer its account
to some company that would.
81 suggested to Mr.. PAM" Mr.. Dresser con-
tinued, that the Bethlehem company, which
was making money. should help the shipbuild-
ing company out. The only money the Beth
lehem company ever advanced was S2J0o00 TO
pay certain interest due to Charles NJ. Schwab"
That was all Mr.. Untermyer had TO ask of the
witness. and Mr.. Guthrie took him in hand.
When did you first believe that misstate-
ments had been made preliminary to the
ganization OF the shipbuilding company"
Not until after 1 resigned from the Trust
Company of the Republic"
Led by counsel. Mr.. Dresser said he first
learned that Mr.. Young working a ship
building combination after Mr.. Young returned
from Europe in March, 1902 Mr.. Guthrie took
the witness back through the evidence he gave
on his direct examination without shaking
him. Mr.. Dresser said he had had several talks
with Mr.. Young. When Mr. Young went to
Europe Mr.. Dresser said he understood that
Mr. Young had left his power Of attorney with
should remember some things Mr.. Dresser felt
sure he had forgotten, and asked him: How is
your memoryT'
Pretty good" the witness replied.
o.-You have been suffering with your head.
have YOU not? A.-Not that I know Of
tired out in the spring and ] took a
o I unTostratiop and that You had to go to
sanatorium? Al don't know anything about it.
ENVELOPE REPORTED MISSING.
envelope containing matter needed IN this suit has
OF TIE ReDublicE Al nave heard II within
ODD you have anything do with the alb
stTaction OF those papers? Al did not have
had nothing do with the trust company in the
last six months.
about the end OF June the effect that the issue
Of the shp5uildlng companys stock had been a
great success? Al made The statement 70 sew
approximately S8OC0O0o OF bonds had been placed
Q.-Who told sou about the subscription ia Paris?
An Young or Colonel McCook
Q.-Up TO that time had the Trust Company Of
the Republic assumed any responsibility? Alt
Did you confer with your executive committee
building company's schemef Al did; I had
Q-Are you prepared to swear that prior 10 Dor
rowing the money you had authority 10 borrow it2
any way saw m The whole transaction was dis
cussed by the executive committee. -
on the credit Of the Trust company Of the Repub-
nc nc NJ SO understood Il and my acton was
oOhnrHeo oy the board meeting OF September 3.
Some Of the notes Mr. Dresser gave. he said.
he gave prior to August IL
ODD you consult with the counsel o, the trust
company about those notes? Al did.
Q-Nere you advised that what sou about
advised
WOULD HAVE MADE 100000
MIR. Dresser was unable to remember tho exact
Drofita the trust oompsuy Was IN maize out of