The Savannah morning news., 1903-12-23
GAVE IT ALL AWAY
ruosE PRECIOUS PARIS LETTERS
WERE PUBLISHED.
IN THE SHIPBUILDING CASE
MORE LIGHT is SHED UPON THE
METHODS PURSUED.

Reach Out LOT frOHts-AhStehu
They Were Called Upon to Back
I'm Their Signatures - Alexander
was Reaching Out in All Direc-
tions for Funds.
New York, Dec. 22.-Letters and ca
blegrams. which are alleged to have
passed between New York and Paris
in connection with the United States
Shipbuilding underwriting placed in
the French capital, are published to-
day by the World. Reference to these
communications was made recently in
the shipbuilding hearings before United
States Special Examiner Oliphant.
while Charles B. Alexander of the firm
of Alexander & Green, attorneys, was
undergoing examination.
The letters, which were kept secret
bv agreement of counsel, were said to
show what methods had been pursued
in order to compel the French investors
to meet the calls for money on their
underwriting, after they had been given
TO understand through a cablegram
sent by the Trust Company of the Re
public to it's agent, John w. Young,
that the underwriting was a success"
This dispatch gave the idea that they
only need stand ready to receive their
profits as members of the underwrit-
ing syndicate.
Charles B. Alexander happened to be
in Paris at the time, and to him fell
the duty of removing the false i'm
preston and holding the signors of
the subscription list to their agree
ment. His firm is counsel for the trust
company here, which had charge of the
underwriting and the communications,
which fill seven columns of the World,
are alleged to have passed between Mr..
Alexander and his firm in this city.
Were Hit Heavily
The alleged correspondence began
July Is, 1902. and in the early stages
revolves largely around the investiga-
ton set on foot as to financial respon-
sibility of those whose signatures had
been secured in Paris to the underwent
ing agreement, which was then in the
care of the Bank De Roma. Baron
Calvet Rogniat and M. Schreyer a
banker, We're the heaviest subscribers.
While both were much disappointed
over the misunderstanding of the sue
cess of the underwriting here. they
were stated to stand ready to pay their
shares.
Then came the exciting portion of the
correspondence. The banking house of
Morgan, Harjes & Co. had been select
ed to receive payments to be cabled at
once to the Mercantile Trust Company
of New York, but the subscribers had
not come forward, and on July 2S let
ter states that Mr.. Alexander had
changed his tone with regard to the
situation. The writer is quoted as fol-
lows:
To Hold Them to 1t.
while it may be true that these I'M
derwriters were not treated properly
by Young in leaving them under the
impression for so long a time that all
the bonds had been sold, yet that has
been we'll atoned for by the patience
and care with which we have in the
last week given explanation after ex-
PLANTATION to all parties. They are now
all in default from the 25th, and l have
told Oppenheim to notify each one that
their individual liability in case that
money is not in New York in time to
make the payment will not be limited
to the amount of their securities, but
that there will be consequential dam
ages to every party connected with
the affair"
The letter criticises severely in a
postscript the impressions said to have
been thrown out by the younger
Harjes, who was reported to be very
much prejudced against the whole af-
fair, and that it was said by the cash
Ter that there was no market in New
York for the bonds. The writer adds
that he saw Harjes at once and threat
ened to turn the account over to the
Credit Lyonnaise, and, thereupon,
Harjes agreed to tell everything good
he could about the personnel of the
company and the affair. Efforts
through other sources also were made,
according to letters and cablegrams
quoted-to counterfeit the effects of
various reports circulated as to the
impending collaspe of the underwriting
scheme in New York.
After an Old WOman's Million.
According to the World, the word
"Drexels' was used in the correspon-
dence to represent Morgan, Harjes q
Co., and in one of the letters credited
TO Mr.. Alexander there appears the
following:
"a got pledge from the Drexels that
everything good should be said Of the
enterprise"
One of the French underwriters was
named Schreyer, and the following ref
erence was made to him in on of the
letters:
81 hear he has 81, 100000 belonging to
one old woman to invest at his dis
cretion.''
In this letter there is also this
statement:
IT have caused it to be known that
leading English banker has told me
that would get $1,000, 900 in twenty
Tour hours--which is true, of course"
In the correspondence is included the
following cablegram:
Paris, Dec. 2S 1902.
"MacCook, New York: Have Nor
gans wire Harjes. Take cordial view
of affair. Say properties valuable; per-
sonal fine Rogniat just told me will
pay for underwriters who may default,
but wants those paying Harjes en-
couraged. Have read riot act Harjes
To-day. Report quick.
(Signed) Beatty"
MacCoolk, the World says, was the
cable address Of Alexander and Green,
and Beatty was Mr.. Alexander's Paris
cable address.
GUTHRIE WAS SORE