The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-10-21
HISTORY OF
!. SHIP TRUST
Continued from First Page.

pany,-, s.: L. Moore & Sons and the
r.: The witness said the first plan of
consolidation was handled by H. w.
Poor & Cos but was brought out on
a bad day and failed. The witness
could not remember if the Mercantile
Trust company had been, interested
in the first plan. *>.'7 - 3
The witness said he knew c. NJ.
ago. They. met frequently in a social
way and SchWab told him of the pur-
chase BY him: of the" Bethlehem COM
pany. Mr.. ,Schwab' had at the request
of the witness acted. as an under
writer in the first effort at consolida-
ton. There was no, proposal that
the Bethlehem company be taken into
the first com bination. - - ! L.
Mr.. Untermeyer : wanted to know
what sconve rsatiens the witness had
had with Mr.. sSchwab as to- the use Of
the Bethlehem company, in a ship,
building combination in 1901 and
1902: butt the twithess>could not recall
said he had talked the, matter over
very. general1y; everybody did, he
The: first $direct proposal that the
Bethlehem, cou1pany be purchased by
/ the United States Shipblilding COM
pSLIy WdS, HlA0G Al ulC, 1OUl.
When we met at Mr. Schwab's
office" said the witness, 1--WE plunged
at once +fnto business. Mr.. Schwab
|:produeed eports efsearnings showing
that the. Bethlehem plant had earned
s1,400,0Q0, and M: schwab SAID &c
would sell. for $s;o0o;ooo. Mr.. Pres
SER said that 80, Q0O;000 was large
sum to- raise at that time. The ques-
ton of curittesS came up at a later
meeting" s.sE5 *5 E~:s
.., r., Schwab,. Compromised. - e
The. witness: was quite sure Mr.
schwab had asked. $9,00o,o0o.in cash
for the property at the first Interview
Mr.. Dresser told Mr.. Schwab of the
difficulties Of raising money, and the
Fquestfon4 Of securities Sca1ne up. Mr.
Schwab agreed tie take IS 10, 300, 900 in
bonds. i.
.'Whensw we saw Mr.. Schwab again.,
continued Mr. Nixon, ''he said we
would have to give him $10,0oO,000 o1
each kind of stock beside the bonds
Mr.. %SChWab said.$h e had to. give: So
100000 of each kind of stock to j
P. Morgan g. Co. Nothing was saic
as to why Morgan & CO. were tore.
ceive the stock. Mr.. Dresser said he
was willing to pay the price"
where he had signed an agreement
! with. J. p. Morgan &. Co. for the sale
| In cash Of the 4Bethle hem com pany
! He, had signed many@pap ers at Dress
er's office. The agreement had. never
| been explained to him and he coult
not understand why he had been made
a. party to it., ... - ~
The witness said he had acted t.
the best interest of the Shipbuildint
company and with no idea of any gail
| for himself. He could not explain VIII.
after the agreemen to purchase
| Bethlehem from Mr. Schwab To-
| $1O,OOO,000 In bonds, s10,0O0,000 il
preferred and $10,000,oO0 in common
stock had been made, an agreemen
was made with Morgan & co. to bu.
the plant for $7,200,000 in cash am
| $5,O00,000 in stock. - .-@s-.
| Check for $7,2OO,OOO. E.
Mr.. Nixon told of the passing Of tn
check for. 100000 at the office o
Morgan & Co. III j 80.
81 did not have the check Ion,
enough to see who signed it." said MI
Nixon. mr. Dresser asked permits
sion to put the check thru his bank
! but. permission was refused. We ha,
the check long enough to indorse
! and: hand 1T over I do not even knoy
who received the check. - ~
The original check was produced b
Mr.. Guthrie and after identification
by the witness and a wrangle between
| counsel was offered in evidence. TIL
! check was for $7,191, 79i.48,, and wa
drawn in favor Of Leroy Dresser an
Lewis Nixon by G.. M. SchWab thru hi
4 attorney, Oliver Wren. s
1 The witness could not explain why
1 while the agreement called, for 81,
246, 900; the check was for 81, 191,
! 791.48. $50