The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-10-15
,RBSSER TESTIFIES AGAIN.
s.yS HE SENT A MESSAGE TO
SCUVAB on TUESDAY,.
..,,.d Schm alb TO Let 90 His Grip on the
bethlehem steel Plant. but Schwab
wouIdn't-H0w Three Clerks Voted
.x,y the S5I, OOO, 900 In Securities.

Ia Row Dresser the principal witness
~, the complaining bondholders. yes
erday.
The professional relations formerly exist
,,o het ween Mr. Dresser and Mr.. Guthrie
-sre made a matter Of official record at
he beginning Of the hearing. Mr.. Guthrie
,r,s once counsel for the Trust Company
n the Republic, Of which Mr.. Dresser was
,resident. Mr. Dresser says that in that
npacitv Mr. Guthrie learned great deal
about his personal affairs. AND personally
advised him on some matters,
Mr. Dresser has also insisted that certain
ouss,ions which Mr. Guthrie asked at
,se last hearing were prompted by this
knowledge of his personal affairs, par
ticrlarlv those in regard to his actions in
Connection with the Trust Company Of the
Republic,
Mr. Guthrie wanted lot OF corre-
s,ondeuce bet ween himself and Mr.. Inter
r,yer in relation to this matter put on the
nccori Yesterday. In one letter Mr. Guthrie
sid he had heard that an attack was to be
made upon his professional standing. He
declared that he had been counsel for the
trust company, but not for Mr.. Dresser:
thGt he had. nevertheless, offered to with
draw from the cross-eXa nination, in favor
Of John Il. Parsons. and that MIR. Inter
nver had asked him not to do so.
Mr. lntermyer refused to have the matter
nit on the record and declared that he had
nothing to do with the controversy. Mr..
Dresser said that Mr. Guthrie could CROSS
examine him in respect to the Shipbuilding
matter. but added;
when he asks, as he did the other day,
euesiors which l viii allow no man living
toasa-if wus criminal 6 nd if had stolen
pperS think hn has gone too far"
The matter was settled by Mr.. Guthrie
agreeing to waive any questions to which
Mr. Decsser objected and leave. the matter
tothn Court.
Before proceeding Mr. Guthrie announced
that Mr., Schw4b would appear whenever
wanted and thst Max Pam would appear
on saturday Joseph +. Schwab, Oliver
Wren. MIR Schwab's secretary, and other
witnesses werc sworn yesterday morning.
Mr. Dresser at the resumption of his
REORGANIZATION, reiterated his state
ment that he believed tie statements in the
prospectus of the Shipbuilding company
were true and that he had taken the reports
Of the a'countauts and of Alexander &
Green concerning the value OF the different
plants, LJ correct. He said it was not until
he ret lrned from Europe, where no went to
sell securities. that he heard that the earn
ings were NJ al unsatisfactory.
He s,i / he still believed that the earnings
were "a sla tory and the report of the
Sheldon reorganization committee, he said,
showed that they would have been sufficient
to pay all fixed charges had the dividends
Of the Bethlehem plant not been withheld
after Mr. Schwab got control of the COM
pany Mr.. Dresser said that Riddle Il
Common, accountants, had certified that
the earnings Of the plant were 81 100000 a
year, The statement was made in the
pro- p2ctus.
He said that the 81 500 900 surplus Of
the Steel company and its cash on hand were
turned over to the Shipbulding company
at the start and the same thing was done
In the case OF all the constituent concerns
Mr. Guthrie tried to show that the witness
was in error in stating he had never had
negotiations with Schwab before the offer
of the Bethlehem plant to himself and
Lewis Nixon, but tie witness said that it
was Mr.. Nixon, and not he, that had seen
Schwab before that.
Mr.. Nixon, he said, had got him to take
100000 Of bonds In the underwriting.
This was before there was any talk Of
buying the Steel company.
Going back to the underwriting, Mr..
Guthrie asked the witness II MIR. Young
had not given him paper in May. 1902.
about a payment Of additional securities
to the underwriters. Mr.. Dresser did not
remember such a paper.
Q. Didn't he give. you an order for first
mortgage bonds and preferred stock which
you have personally? A, He did not
.. Wasn't there surplus cash that went to
Q. isn't It a fact that you used for per
sonal purposes large amount OF cash! A.
Absolutely none.
common stock' A. i did. received some
stock in the company from Young. That
was when returned from Europe. and, owing
il The trust company had been wiped out.
told Young, and he gave me some stock.
which sold for 500. 900. about $3.50 900 COM
mon dD 1oS a1aw easr cash
from the Trust Company Of the Republic3
4 did. for expenses. don't remember
Tue amount.
O. Didn't you give Young in Paris a draft
for $4,000 which you didn't pay. A. l did.
MIR. Dresser wanted to explain this trans
action, but Mr.. Guthrie wouldn't let him.
Then Mr.. Guthrie suddenly asked the
witness II he recollected what he had done
the day before.
'My memory is as good as any one 9. said
Dir. Dire sser
y Didn't you go to Harris. Gates 4 Co. and
see Mr.. Harris twice during the day. and
DIDN'T Mr. Harris telephone to another ofiGel
4! He telephoned to Mr.. Wren. would like
toexplan that.
O. Didn't you request Mr.. Harris to SEQ
Mr Schwab and say to him that you thought
Nadvlsable for Mr.. Schwab to have private
interview with you? A. did not. -,
lor Mr., Schwab to heed your suggestions?
did not.
g Didn't, you say II you were ,cross-eI-
saMlned to-day you would make disclosures
mat would be very injurious to him and
WOULD AFFECT the market more than your other
disclosures had? A, did not.
So Didn't you, ask, Mr.. Harris to see MI.
ssGhhwab in your behalf and didn't Mr.. Harris
Msn you when you came back that he had ana
ar. achwab would not see your A; l did.
went to Mr.. Harris's Office yesterday be-
eause had seen Charley Gates six weeks
you'd take his grip on the Steel company the
Nnoe thing would be cleared up.
81 tod MI Harris yesterday that the whole
ttaihs made no difference to me. but that !
tvselLeysd in the Shlpbulding company and
,,'It u schwab took his grip OF 1t i would
VW2Rmpany. although ! have no interest in it.
Mheh Mr. Harris said Mr.. Schwab would not
s wee me told him then that it made no differ
ehce to me.
Mr.