New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-15

afterward. when I was in consultation with Mr..
Young and Colonel McCook"
THE STATEMENT IN EVIDENCE
This statement. the witness said was last in
the possession Of the Trust Company of the Re-
public. and at Mr.. Guthrie's request it was sent
for Later it placed in evidence 1t was as
follows
% Memorandum! ooo bonds be unaervritten at
land Sc 900; underwriting in United states 81
Preferred Common
TENDERS receive 10000 5G5oooo 1000 600 900 GOO
Working capital. 100000 100000
Expenses. etc. 100000 100000 100000 10000
Totals ........ IS 100000 =
derwritng bonds
bonds Il each. 100000 $50 900
Promotion -.-.... - 100000 100000 100000
Totals ......... Is oooooo 10 600 ooo 10 600 900
secure the underwriting and issue in France and
Preferred Common
Expenses ... sissco s2ooooo $500 COO $500 5000 600
,,. dsrvritins ...-. 1000 10000 10000
Promotion ....--. 100000 100000 100000
Totals 1922. 100000 81 100000 1880 900
leaving the col
Tor expense. $1,000 100000 10000 10000
derwritinS -. 10000 10000 $4,000
Totals .....-. $4,000 $4,000 81 $50 600 100000
The Trust COMPANY the Republic procure
underwriting on 100000.
Did you ever see a report on the value and
earning capacity Of this plant and its earnings,
made by Admiral Bowles in connection with a
previous scheme TO sell it," M Guthrie asked.
NO. I never saw it Mr.. Dresser said. IF
the Mercantile Trust Company was satisfied, we
were too. We were to obtain So 900 900 of un-
derwriting for that company"
T,;s
countants Riddle & Common? A.-The Trust Com
pany Of the Ranublic had one
Q.-Has II that COPY now: Al think so. If it
Q.-When was the last time you saw it? A
Q-which gentleman told YOU the statements in
the prospectus were correct? A.-The prospectus
certified to correct. 1t o. X. d by
Mr.. Krech. Of the Mercantile Trust Company.
Do you recall upon what day you received
letter from Mr.. Young. embodying the proposition
made TO you as president Of the Trust Company
Colonel McCook and Mr.. Young did come and sub
o-Whe~e did YOU last see the letter? An the
Trust Company Of the Republic.
Mr.. Guthrie showed a letter to the witness and
asked him whether he recalled it as the COM
munication from Mr. Toung. He said he did
not so recall it. 1t placed in evidence.
THOUGHT 1T THE CAUSE OF TROUBLE.
o-When the hP alp, prospectus Of the company
VS. reltltG you HeIltNtl me statements mace IN
ODD anything occur afterward to shake your
commence IN llF S'ilIlit|S ana integrity OF
proposed transaction Al had no ntimation be
fore sailed for Europe ard it was a month after
I came back that | began 10 think the company
was experiencing difficulties. | was still satisfied
concerning the earnings and still believed until the
end OF January. when. through his control Of the
shiphuiding company and the Bethlehem company.
Bethlehem to the shirbuildng company. I was
then convinced that this would cause trou9Ie.
advance any money which he requeiS 1 ! pc
So srp s fba t could sor to pay into the ship
building company a part ! believe now that me me
Bethlehem company were more than suf1cient 10
pay all charges
Mr. Guthrie read a statement from the final
prospectus that the constituent companies had
more than S36oooOn0 in contracts. which
their profits were estimated at 100000.
Odd sou have any appraisal made of the values
reports Of the accountants and the Mercantile
Trust Company accepted them.
companies II the trust were worth N6|lVs, ana
amount was NOR. NAV Tba giatements in the nros,
rectrIs are based the same reports.
ana thu last letter OF Riddle & common Where
A-The reports or Riddl. Common were gone
a. - Was q 100000 surplus OF the Bethlehem plant
turned over 70 the shlphgildng c9mqny les
transfer their SURPRISES to the shipbuildng com
I - 10 YOU remember calling Mr.. schwab with
MI Nixon on June 3. 1902 MONDAY a. mink
IN.
d - had Won had any interviews with him prior
., 1ot time in reference to his becoming an under
$3.50 - 60 A-No. Mr. Nixon attended to that MT
Tixon brought Mr.. Schwabs subscription TOT
- % @W-bere is that paper? Ain the possession
of the Trust Company Of the Fepuohc' s""u'u
oGIs il not Fact that subsequently Mr. scn Ifo,
Maid IN full the subscription made against ms ails
menta A-Oh. yes. he paid in fulia h, ,o caiis
-serts uer- % per each on the nrst two IL
~ nss NJ scbwab represent 10 you that the
sTS,i,'gs az The bethlehem company were In excess
OF e. Og5Ol0 year, Ale old 80, - ..c,,, nlist-
o-Did he not state that with the tinD tho
y,rt ~ the improvements under cons!oeI .Is az
mann i,pder proper management wouIo yier" a.
least Sc CpOoo0 year? Al don eaIfiiiisia stjc
NJ ~ ules, 9S Hir nixon and are OF the value OF
the property.
AS To THE SURPLUS CASH
Mr.. Guthrie asked some questions reiatihs 10
interviews and statements IN newspapers III
June. 1902. saying he wanted 10 ies' ~, ~
=. - g. ,.,,,ess Then he questioned Mr..
continued on sixteenth pn9e.