The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-12-23
all the disclosures that have already beer


made.
The letters had been kept secret for
weeks. though the progress of the hearing
in the receivership proceedings. in spite of
frequent efforts to have them incorpor-
ated in the record of the case.
Mr.. Guthrie. counsel for Charles NJ.
Schwab and others. was intensely indig-
nant this morning when he learned that
all his efforts at secrecy had been futile.
and he told the court that the publica-
ton of the CORRESPONDENTS amounted to
contempt. He demanded an investigation.
Reference to these communications was
made recently in the shipbuilding hearings
before United States Special Examiner r.
D. oliphant. while Charles B. Alexander
OF the firm of Alexander & Green. attor-
neys, was undergoing examination.
SHOW METHODS.
The letters, 1t was then said. showed
the methods pursued in order to compel
the French investors to meet the calls for
money on their underwriting after they
had been informed through cablegram
sent by the Trust Company of the. Re-
public to its agent. John W. Young, that
the underwriting was a success" This
dispatch gave them the idea that they
only need be ready to receive their profits
as members of the underwriting syndicate
Charles b. Alexander happened to be in
Paris at the time and to him fell the duty
OF removing the false impression and hold
their agreement. His firm Is counsel for
the trust company here which had charge
of the underwriting and the communion
tons between them will fill several coll
umns.
The alleged correspondence began July
!. B02, and in the early stages revolved
largely around the investigation set on
foot as to the financial responsibility Of
those whose signatures had been secured
In Paris TO the underwriting agreement
which was then in the care of the Bank
de Roma.
SUBSCRIBERS DEPRESSED.
Baron Calvet Rogniat and M. Scheyer,
banker. were the heaviest subscribers.
While both were much disappointed over
the misunderstanding as to the success of
the underwriting here. they stood ready
to pay their shares. Finally the situation
apparently had been explained to the sat
fsfaction of every one and prepare tons
were made for the first call upon, the un-
subscriptions. to be followed by the sec
amount. =.
correspondence. The banking house Of
Morgan, HaJes & Co. had been selected
to receive payments to be cabled at once
to the Mercantile Trust Company OF New
York; but the subscribers had not come
forward on July 25. to which day the pay
ments had been postponed, and on July
% a letter stated that Mr.. Alexander had
changed his tone with regard to the
situation. The writer is quoted:
MANY EXPLANATIONS.
while 1t may be true that these under
writer's were not treated properly by
Young in leaving them under the i'm
preston for SO long 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 explanation to all
parties. They are now all In default from
the 18th, and I have told Oppenheim TO
notify each one that his Individual liza
bility in case that money IL not In New
York in time to make the payment will
not be limited to the amount of his Sc
curities, but that there will be conse-