Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-10-14
CLAIMS S|jHNAB
WITHHELD PROFITS
Sensational Incident In Con-
nection With Ship Building
Company's Hearing
DRESSER TRIED TO SEE scHWAE
Counsel Attempts to Make It Appear He
Had BlackmaiIins Motive, But Dres.
ser Renews His Original Charge
Cause Of the Wreck of the HethIe-
hem Company.

t..
the ship building hearing today that y.
Leroy Dresser had made efforts yes
terday to communicate with Charles
NJ. Schwab. Counsel for the latter tried
to show that Dresser had sought 10
plead with Schwab. but Dresser who
was on the stand denied That was ms
purpose and renewed his charge that
the Withholding of Bethlehem profits by
Schwab had wrecked the ship building
combination.
Before Dresser was asked any cues
tions today. there was an argument
over the propriety of Mr.. Guthrie, con-
sci for Schwab, cross-examining him.
Gutherie explained that while he never
acted as personal counsel for Dresser
he had advised him as 10 certain mat
ters pertaining to French Underwriting,
and report to his stockholders. Dresser
said very spiritedly that Guthrie had
acted as counsel for him. but he was
prepared TO follow the referees direc-
tion as to his testimony on cross-ex-
animation.
II was finally agreed that Guthrie
should cross-examine Dresser. after II
had been explained that Charles NJ.
Schwab would attend and testify When
desired.
Guthrie introduced the sensational
incident by asking Dresser: Did You
pay two visits yesterday to the Office
of Charles NJ. Schwab?'
IT did"
aDid you seek a private interview
with Schwab?'
Il certainly did not" said the wit
ress, and then in response to Il series
Of questions put to him rapidly Wit
ness denied he had sent word TO
Schwab that 1t would be well for him
to see him or that he mad threatened
tc make disclosures that would inture
Schwab. He denied that he had SAID
ii would be better for Schwab to quies
the matter or that he (Dresser) had
nothing to lose in the way of reputa-
ton or that it would be better for al
concerned to straighten he whole. mat
ter out
When Guthrie finished his questions
Dresser said Now viii you ask me
what did say?
Mr.. Untermyer, attorney for the
bondholders. told the witness to go
ahead and tell what did happen. ana
witness went on:
"Six weeks ago l saw Gates and told
MIN If Schwab would take hi SCRIP off
the bethlehem Shipbuilidng Company
st would be all right. / went to the
Office of Harris, Gates & Co. in the in
terests of the shipbuilding company.
4,A, &c T.
ting Ii before the public to show that |
was there to plead with him. l Went
there not to plead with him. but to ask
him If Sehwab would take his grip OH
him to take his grip off the Bethlehem
and that If he did so it would make the
shiphuilding company al right.
Il said il he would give us any de-
cent plan of reorgan' n'.ation and not the
confiscation plan that had been propos-
ed the company would be all right. l
went over this shipbuiiding matterwith
Charley Harris six weeks ago. told
him that ~ wrecking Of the Ship
building ,,any was due to SchWab
mithholdii. .he profits of the Bethle-
hem insts. .of letting them flow into
the Ship .4lding Company where they
belongeG Il asked Harris TO telephone
10 SchWaD ana ne dld SO. II OUT oi Tic
mess and mire the United States Ship
building Company can be rehabilitated
that is what l want to see done. !
have no financial interests. but feel
that it Will help me.
Did you say anything to Schwab
about his liability In this letter.
NO. / did not" said witness. That's
a legal question and I know nothing
about it,"
Dresser testified that he protested
against the terms of taking over the
shipbuilding interests of the trust COM
pany of the Republic by the Sheldon
syndicate because he believed the terms
to be unfair. He said when he told
Max Pam that he (Dresser) was COM
PEELED to make a assignment, Pam told
him he must resign at once from the
shipbuilding board. Dresser said;
"Pam was running the whole COM
pany."
1t is announced that Pam probably
will testify Monday.