Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-10-17


of securing settlement with creditors
Of the firm of Dresser II Co. and re-
establishing the credit Of Mr.. Dresser
in order that his business influence and
social connections could be used In
marketing the stock Of The Staten Is
land Realty company. which was to be
capitalized at $4,000. 900, and large
block of this stock was 20 be allotted
TO Mr. Dresser.
True Value lmmaterial.
One witness testified that he thought
the real value of the stocks deposited
was immaterial. as those interested re-
lied on the sale of the stock of the
realty company to raise the money to
pay Dresser's creditors and redeem the
securities.
The connection of Mr.. Dresser with
the Vanderbilt family and his extensive
personal acquaintance with financial
and social leaders are believed to have
inspired the project by which the pro-
motors planned to secure his aid in
floating the stock Of the realty company
and with the proceeds paying the debts
of Dresser & Co.
These disclosures in connection with
the exposure of the methods by which
the United States Ship Building COM
pany was financed, as related by Louis
T. Daily, a young clerk who was one
of the board of temporary directors
of the ship building company who
voted to increase the capital stock of
that company from 100000 to $40
100000. have aroused increased inter-
est in the inquiries now in progress
concerning the operations of Dresser
and others in exploiting gigantic cor
poratlonS.
Dresser & Co. went into bankruptcy
and were placed in receivers hands
in March, 1903, with liabilities of ST.
10000. April Mr.. Dresser offered to
pay creditors in full IL the business
We're allowed to continue, offering to
deposit securities of a guaranteed value
OF sS50.000 as security
In the hearing before Referee Dex-
ter yesterday Gilmore d. Alvord identi-
fed an agreement signed by him with
other guarantors, together with Mr..
Dresser, to turn over $S50,000 worth of
securities, the agreement guarantee
ing them to be worth this amount, but
he admitted that the securities depos-
Tied were worth much less. He testified
that the purpose was to rehabilitate
the credit of Mr. Dresser SO that he
might become president of proposed
real estate corporation.
Charles S. Mackenzie, who, with
Robert c. Morris, is receiver for the
admitted that he had helped
the agreement mentioned, but that he
had never been allowed to inspect the
securities deposited, but yesterday had
been shown list of the stocks actually
deposited. he said, and then for the
first time had learned that the securi-
ties which had been represented to him
as standard stocks. of market value
of $S5O.000. included in reality stocks
and bonds of gold mining and undevel-
oped railroad companies which We're
worth far less than that amount
Milton c. Quimby, one of the pro-
moters of the company, testified that
Mr.. Dresser was not allowed to know
What stocks had been deposited
Learning of the financial embarrass
nent of Mr. Dresser. he said, he had
approached him with a plan by which |
Mr.. Dresser might be extricated from
his difficulties, proposing to deposit Sc
eurity for the payment of Mr.. Dress
ar's obligations, In return for which Mr.. |
Dresser should become president OF a |
Staten Island realty company and be |
given a large block of cal ital stock Of |
g, 500, 600.