The daily morning journal and courier., 1903-10-15
SCHWAB STANDS ACCUSED
FOR WRECK OF
 SHIPBUILDING TRUST.
Former President Dresser of the Trust Company Of America So Charges Declares the Profits of the Bethlehem Steel Company Were Not Turned Over aud Have Not Been So Far.

Steel Company Were Not Turned Over
 aud Have Not Been So Far.
 New York, Oct. 14.-The inquiry be- fore referee into the affairs of the stranded shipbuilding combination at the instance of the Bondholders' Pro- teetive association was resumed to-day and was productive of fresh develop ments that will claim the attention of the financial world and those who fol- low it's fortunes.
 It developed that yesterday D. Leroy Dresser. late president of the Trust Company of the Republic. who last week divulged much of the inner his tory of the formation of the combina- tion, made an effort to communicate with Charles M. Schwab with view to obtaining some concessions as to the Bethlehem Steel works that would rem der easier the scheme for rehabilitating. the partly wrecked concern. The mes sage of MT. Dresser was delivered to MT. Schwab by Mr. Harris of the brokerage house of Harris, Gates & Co.,, which marketed part of the shipbuilding stock, but MT. Schwab declined to see MT. Dresser.
 w. D. Guthrie, counsel for Mir. Schwab, brought the facts of the in- cident out at the hearing in a series of questions directed to MT. Dresser. His aim was to show that MT. Dresser had sought to plead with Mir. Scliwab and had threatened to make certain disclosures when recalled to the stand that would reflect upon MT. Sehwab. MT. Dresser denied that he had gone to plead with MT. Schwab or to threaten him, for he had no additional informa tion to divulge, but had sought to ap- proach him in the hope that something might be done to save the Shipbuilding company.
 Dresser asserted that the Shipbuild-. ing company had been wrecked because MT. Schwab had withheld the profits of the Bethlehem company This declara- ton he twice spiritedly repeated when at the end of the cross examination by MT. Guthrie he was given an opportun- ity to explain. .3
 Mir Utermyer in behalf of the bond holders produced two of the resident directors obtained in New Jersey for mally to carry on the affairs of the Shipbuilding company, but only finished his examination of one of them. He claimed that they were merely dummy directors who voted upon questions in yolving millions of dollars, of the se- curities of the company without other information or inquiry than the orders of the lawyers of the corporation. George P. Daley, one of the New Jer-. sey directors, could not tell where the Bath Iron Works Is located and could not tell who paid for the single share of stock placed in his name that he might qualify as director. !.
 There. was produced and offered as evidence memorandum said to have been prepared by Colonel McCook and given by him to MT. Dresser. It con- tained the figures upon which the Trust Company of the Republic undertook the underwriting of the Shipbuilding com pany and while it's purpose was not explained it is expected taht it will cut an important figure at a later stage of the proceedings. It is said that, be- sides the division of stock detailed last week by MT. Dresser, there was an ad- ditional division of money. The memo- randum shows an allowance for "ex- penses'' of s20,0O0 cash, s3oOO0o in bonds, $500,0O0 In preferred stock, and s500,0O0 in common stock.