The Spokane press. [volume] (Spokane, Wash.) 1902-1939, 1903-10-26
Morgan Very Angry.

NEW YORK, Oct. 26.-The true
story of Morgan's connection with the
Bethlehem steel plate sale to the ship
building company may not come out in
the present court proceedings, but
when it does it will not reflect dis
credit on Morgan. The facts are
known to few people who were more
or less concerned in the transaction,
but thus far they have not appeared in
print.
A syndicate was formed in the form
alive period of the United States Steel
corporation, composed of English and
American capitalists, among whom were
the Maxims of London and Kuhn. Loeb
q Co. of this city, to acquire the Beth
lehem plant, to be run as an independ-
ent concern.
Mr.. Schwab heard of the move and,
as he was then interested in most of
the syndicate operations of the day,
urged that he be permitted to join
this one. eli was admitted after some
hesitation, for be it understood that
at no time, even in his early appear
ance in the ranks of New York
tinanciers, was he thoroughly trusted.
The plan to purchase the plant went
along swimmingly and proposition to
pay $24 share for its stock had been
practically agreed upon. Before it was
finally closed, however, Mr.. Schwab
approached the eBthlehem owners with
an offer of S24.50 share for the prop
erty and secured it. When the facts
We're brought to Mr.. Morgan's attcn-
ton he not only upbraided Mr. Schwab
for his double dealing, but insisted that
the latter should turn the property over
to the United State Steel syndicate.
to be held by it until another purchaser
| could be found.
| 1t will be recalled that when Mr..
Schwab offered the Bethlehem plant to
Mr.. Dresser for the United States Ship
building Co., after the bargain had been
practically closed, Mr.. Schwab said that
he had to consult with Mr.. Morgan
about the matter, and that subsequently
he had changed his price This was
because Mr.. Schwab, although posing as
the owner of the property, was no lon
ger interested in it except as the agent
of Mr.. Morgan. In Offering it for sale
he did SO subject to Mr.. Morgan
approval, although he was too secretive
to say so at the time. At any rate,
the sale was completed through Mr.
Morgan for the steel syndicate, and
the profits. amounting to about SIS 200,
went to the steel syndicate. Mr.. Nor
CAMS interference in the matter was
matter of principle his sentiment
being that he could not permit one SO
| close to him in the steel business as
| Mr. Schwab undoubtedly was to over
reach people who had been and still
were his friends.
The developments in the Dresser
hearing have undoubtedly smirched
many regulations, and they have
given black eye to the promotion bust
ness. But so far as the latter point is
concerned. nothing has come out. but
what was thoroughly understood by
everyone at all familiar with the meth
DDS of promotion which have prevailed
! in recent years.
The shpbuilding scandal is only
| shocking because the facts have been
made public. If the inside facts in
| relation to reorganizations of railways
within the past five years should he
printed, they would prove none the less
startling. The difficulty is to get at
the truth. for it is seldom that such
matters marketwise. Amonth from
now they will be entirely forgotten, and
if an underwriting should be presented
which on its face should appear prom
Using, people would tumble over each
other in their haste to become partci-
pants. The gentleman who remarked
that there is a new Sucker" born
anary second smoke the truth