The Barre daily times. (Barre, Vt.) 1897-1959, 1903-12-23
DELAYS THE
TRUST HEARING
Counsel For Bondholders Of Ship
building Corporation, I'll.
THE FRENCH UNDERWRITING.
some Interesting correspondence
Made Public Despite Desper-
ate Attempts 10 Keep
II Secret.

New York, Dec. 23.-0n account OF
the illness Of Consul Untermyer the
hearing in the United States shipbuild.
ing reeeivership proceedings was post
poned
Some interesting correspondence con
corning the French underwriting for the
trust has just become public despite
the attempts made to suppress it.
The French underwriting, which was
glowingly promised, but never materi-
allied, is generally considered to be the
rock upon which the United States
shlpbuilding company stranded. These
underwriters did not even pay the first
installment Of % per cent on the S4-
100000 of bonds for which they had
subscribed, and with the default in
payment the serious and eventually
overwhelming troubles came upon the
Shlpbnilding company,
The story Of the failure Of this French
underwriting and the almost superhu-
man efforts which were made TO keep
the Partisan subscribers in hand is told
in series Of letters and cablegrams
which passed between Charles b. Alex
andel and his law firm, Alexander &
Green of this city; John w. Joung, pro
moter Of the Shipbuilding company, and
the Trust Company of the Republic,
which almost foundered in the storm
which wrecked the shipbuilding or
ganization.
Tried to Suppress correspondence.
When Mr.. Alexander was on the
stand iii the rcceivership hearing last
week. he and counsel for the defense
sought in every way to prevent the
spreading Of these communications up i
on the record In the witness chair Mr..
Alexander afforded the other attorneys
present an instructive example Of
eyasiyeness and verbal fencing.
AS there was some uncertainty re-
garding the French underwriting OBJ
tanned by Mr. Young, Mr. Alexander,
who was in Europe in june, 1902, was
cabed to by his firm to take charge Of
the matter, and from this time began
the letters and cablegrams to which so
much reference has been made during
the last two or three sessions OF the
shipbuilding hearings
The communications show how tha
French We're hot and cold by turns
over this American enterprise Before
Mr.. Alexander took control Of the Paris
negotiations the Trust Company of the
Republic had cabled to that city the
success Of the underwriting on this
side Of the water In letter to his
firm, dated July Il, 1902, Mr.. Alexan-
der stated that Judge Mayer had inti-
mated to Baron Caiyet-Rogniat, one of
the chief underwriters, the thought
that the Trust Company Of the Re.
public had no authority to report the
amount Of subscriptions and that there
would be call
The letter continued iii part:
Rogniat deplored the fact that there
would be one as he had sent 10 an his
subscribers notice that he had heard
from New York that the issue was COM
piete success and that of course il would
be wet blanket TO them. It is my im-
preston that as these people have an
been assured by the directors Of the Trust
Company of the Republic that they are
free from liability the trust company
having asserted that the New York issue
was great success they viii be somewhat
stunned and hesitate when they are called
upon, but my impression is that the call
Will be honored and that the list Of I'M
derwriters viii be found to be about as
good as the average list in New York
but before you get this letter you viii
have heard from nae more fully BY cable.
Baron Calyet- Rogniat was at one
time highly incensed with John w
Young, and Of this Mr.. Alexander
wrote at length to his law firm in
letter Of July H. Calyet-Rogniat com
planned that Young had never gone
near him with information AS to the
progress of the underwriting ana had
altogether behaved in a most suspicious
and unpleasant way. MT Alexander
wrote:
OF course ] diseiaimed responsibility for
Young I admitted that he had not had
proper kilograms and that the Republic
telegram ought 20 have been more clear.
but / explained to him. and / think he
adopted my views before the interview
was over, that the word success did
not mean the sale Of all bonds, but sim
ply the sale Of such a number OF bonds
as encouraged the Republic 10 feel that
the rest would be sold IN time
Further in the letter Mr.. Alexander
said he asked the baron whether. as
suming that call were TO be made on
the underwriters, he would be prepared
g pay at once any call made for any
deficiency, and the baron's answer as
by Mr.. Alexander was
He said IN e very loud. firm voice. looks
ing me fun in the eyes that he would
that he was ready and able to live un to
his obligations. lie added later in the
conversation that some Of these people
whom he had told the thing was at an
end might kick. but he would have to ex-
plain 1t to them.