The Providence news. (Providence [R.I.]) 1891-1906, 1903-10-08


vas on the stand in the case OF the
United States shipbuilding company yes
Ferday, and his testimony in regard to
Fhe anxiety OF Charles NJ. schwsb and
p. Morgan 81 Co. to withdraw from the
company when they saw that IL was
likely 10 fall was listened to with a great
peal OF interest Mr.. Dresser stated
hat Mr. Schwab and the Morgan com
pany were so eager TO come out OF the
Anair whole that they made an agree
nent that none OF the stock In pool,
consisting of 100000 shares of preferred
md 25oooo shares OF common, which had
been placed i'm the hands of Harris,
Gates & CO.. should be put up for sale
until after the Morgan holdings OF 5000
tommon and 25.000 preferred and the
btock held by Mr. Schwab consisting OF
5000 common and an equal amount OF
preferred. had been disposed of.
According 10 the testimony OF Mr..
Dresser, he had agreed TO uderwrite
3. 100000 OF the shipbulding company's
stock. but this amount was increased 10
a. TIp,000 because some OF the French
pubscribers had withdrawn for some un-
Explained reason. Mr.. Dresser explained
how the J. r. Morgan company came
INTO the concern at about the same time
hat Mr.. Schwab offered this Bethlehem
stated that some of the parties 10 some
Df the agreements made In the interest
bf Mr.. Schwab had no direct interest In
he affairs mentioned In the agreements.
FOR A PERMANENT RECEIVER.
This interesting testimony was taken
by the referee I'm the case. IL ID. OIL
bhant, who is listening 10 the statements
pr some OF the holders of the first mort
gage bonds OF the company. who have
petitioned for the appointment OF per-
nanent receiver. There Is already a
James Smith. Jr.. and the bondholders
IRE trying to effect his appointment as
permanent receiver.
Mr.. Dresser on taking the stand. said
he was an involuntary bankrupt. and
had been president of the trust COM
pany OF the republic from it's organiza-
Hon, March 81. 1902. to March 4. 1908.
when he resigned He told OF the visit
10 him In April. 1902. OF Col John j.
HcCook in reference TO the underwrit-
Ing OF the United States Shipbuilding
company. Mr.. Dresser continued
He said he came from John W Young
md d. the he Mercantile Trust company; ns ~ tnst ss
rured, and he suggested that the Trust
Company of the Republic take the other
s.ooo.ooo, making 100000 in all. | laid
The matter before my directors.
Odd Col. McCook present any Gre
6entiais9 Ale showed me the under
writing argument. which said that S3.eo. =
boo OF the Sc. .O00. 600 had been taken in Lon
Don and $1,000. 600 In Paris.
O.-How long was II before you got the
underwriting after you spoke 10 COL NC
Cook? Al don't think II took more III than
10 days. After | obtained the s3W0OW /
was asked 10 get 81. 100. 600 more. because
khere had been a hitch In securing the
e, 100000. Col. McCook told me The French.
men would provide the balance or the
English share. 81 $50. 900
GOT a.75o.Oo.
Q.--Did you get It? Al did. | got
a, 10000 in all.
O.-How were you induced 10 interest
yourself in the matter? A.-Col McCook
and Charles B. Alexander OF Alexander
e. Green told me OF the report of the
Expert accountants and OF the plants that
were 10 he taken into the scheme.
Odd YOU receive any written state
hnent? A-No. think not Ii was oral;
Q.-Who told you of the value OF the
properties and OF the accountants re-
ports? A.-Mr. Young and Lewis Nixon.
we obtained the s3,W0.OOo and before we
raised the sl.7500o0.
Q.-Where did you meet Mr; NIXON Z
AL think II was in Col. McCook's office.
Q.-Please tell us what took place after
you secured the 81. 10000 until the or
IA nization of the company. A.-The Mer-
camille Trust company secured the pal
% - How do Won know? A.-Col. McCook
Mold me- list of the people and insti-
tutions in France subscribing 10 IL were
given to US.
O-Who is us? A.-The Trust Company
OF the Republic
Q.-who prepared the prospectus trans
Herring the bonds TO the public Issued
on June IL, 1902? A.-The Trust Company
of the Republic.
Q.-where did you get the information
contained In It? A.-From the firm OF
Alexander 4 Green. counsel, and Riddel
a Common accountants.
Q-You did not find out or investigate
any of the statements made TO you? A
mo. The prospectus was published In
nine cities.
ALL BUT A FEW SHARES.
Mr.. Dresser said he never saw the con-
tracts between the subsidng companies
and the United States Shipbuilding com
pany. nor did he know the prices paid
for the plants.
THE trade between the Shlpyards com
pany and the United States Shipbuildlne
company was completed before any mon
tion was made OF the Bethlehem Stee
works" Mr.. Dresser said. "On June q
was lunching with Lewis Nixon at tn,
Lawyers club. when Mr.. Schwab joined
US. had never seen Mr. Schwab be-
fore that day. He asked US why We I'D
not buy the Bethlehem company. I re-
piled that l did not suppose the company
was for sale: that I understood IT was
part of the steel corporation. Mr.
schwab said he owned all the stock ol
the Bethlehem Steel company except 10 OF