The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-10-14
SCHWAB PAID IN FULL.
Dresser Testifies in Z. S. Ship
building Company Inquiry.

New York, Oct. 1.-THE inquiry into
the affairs of the United States Ship
Building company. which is being press
ed by the Bondholders' Protective asso-
citation, was resumed today before Re-
cree Olllphant. Since the last hearing
arrangements had been made to take
the testimony of Charles NJ Schwab,
Max Pam, Lewis Nixon, George w. Per-
kins, John NJ. Young, James Duane Liv-
ingstone ana others concerned D. Le-
roy Dresser, formerly president of the
Trust Company of the Republic. whose
testimony as to the circumstances un-
der which the ship building combination
came into being and particularly the
terms by which it acquired the Bethle-
hem Steel works and agreed to market
its stock, startled financial circles took
the stand, but before he was asked any
questions there was an argument over
$he propriety Of Mr.. Guthrie. counsel
for Mr. Schwab, cross examining him
1t was finally agreed that Mr.. Guthrie
should cross-examine Mr.. Dresser and
after it had been explained that Charles
NJ. Schwab would attend and testify
when desired and several witnesses in
Guiding Joseph Schwab. Oliver Wren
secretary to Charles NJ. Schwab and
Mr. Young had been sworn. the exami-
nation proceeded.
Mr.. Guthrie first questioned witness rs
to the reports he had received or seen
on the value of the plants included in
the ship building combina ton. Mr..
Dresser said that he had seen the re-
ports of Alexander and Green and Rid
die and Common, the accountants. but
denied that he had ever seen report
on the plants made by Admiral Rowles.
of the United States navy.
From the time the prospectus was
first prepared until the transaction was
finally consummated had there been
anything suggested to you that affected
the soundness of the conpany?"
I suspected nothing until l came back
from Europe" said Mr.. Dresser. Il
made very careful inquiry al that
time. Trouble occurred during January
and February and I believe it was due
to the control by Mr.. Schwab of the
Bethlehem company"
The witness then explained that he
had appealed to Mr. Pam for assistance
from the Bethlehem company and said
that even after the Sheldon reorganiza-
ton the earnings of yne several Snip
building properties and the Bethlehem
company were sufficient to pay fixed
charges.
Mr. Dresser said that all the ilforma-
tion contained in the propectus of the
company came from either RIDDLE &
Common or Colonel McCook
The witness said he had not talked to
Mr.. Schwab about taking a part in the
underwriting. Mr.. Nixon did that, he
said, and brought him Mr.. Schwab's
Eubscription of $500, 900 Mr.. Schwab la
ter paid the full amount of the allot-
inent against him. He said there were
a series of assessments and that he be-
lieved Mr.. Schwab paid in full.
The witness was led over the c:rcum-
stances attending the call which he
and Mr.. Nixon made at the office OF
Mr.. Schwab on June IA. 1902 He tes-
tilted that Mr.. Schwab had showed his
reports of the operations and earnings
of tic Bethlehem company. Mr.
Schwab said it would earn 50 600 600
year the witness said, "and as mat
ter of fact it did,
the witness said: Mr.. Guthrie 1 d,
not wish to overstate the figures: twt
millions would have satisfied US that i
was good purchase"
The witness swore that he had no
received any surplus cash or first mort
gage bonds as a promoter.
" hen l was in Paris said he, ''I re
celVed some stock in the company from
Mr. Young, When l left here / owret
t45o shares of the Trust Company 0
the Republic which was worth $500 600