Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-10-10
Denies Statement of Morgan
About No Contract For Sale
of Shipbuilding Stock
SAYS THE AGREEMENT EXISTS
Copy of the Contract in Controversy
Is Given to the Public Thru the
-Underwriters However, We're
Unable to Dispose of the shipbuld
ing Stock.

Chicago, Oct. 10.-John W. Gates
1 whose name has been mentioned in tn,
| recent developments as to the under
I writing of the United States Snig
/ Building company. was interviewed bs
a representative OF the Associate
| Press. Referring to the contract thai
he says exists between his house ang
the house of ]. p. Morgan & Company
Mr.. Gates said:
There Is no question about the con
tract with Harris, Gates & Company e
sell the Morgan and Schwab ship build
| ing stock ahead of adj others. The
Schwab, for j. 2. Morgan and c. NJ
| Schwab, by Daniel Leroy Dresser fol
the Trust company OF the Republic
and by Lewis Nixon for the United
States Ship Building company. Nor
gan's name was not signed to the
agreement. l presume that Mr.. Dresser
| furnished the copy. saw 1t personal
| ~, but had nothing to do with maang
! 1t.
| II was one of the unfortunate under
writer's. Under the terms OF the con
tract the Morgan and Schwab stock
was to be sold first, and it was further
| provided that the rest of the stock
should be locked up In vault and
kept until the Morgan and Schwah
stock was sold out. They simply made
a place to market the stock ahead OF
any 'other-if 1t had been possible tc
market it--but there was no mark et
for the stock Mr.. Morgan acted, as
I understand 1t, In this whole tran
saction. for the United States Steel
syndicate. using the steel syndicate S
money. don't think Mr.. Morgan will
deny that there was such a deal. He
claims that they were not managers
of the underwriting syndicate, which
is correct: he does not say they We're
not directly or indirectly interested.
see it is reported that was short
of this ship building stock. never
sold share of stock or bond ! con-
slider the whole thing much ado about
nothing
New York, Oct. 10.--The Evening
Post prints a copy of the agreement
In the ship building underwriting men-
toned on the witness stand by d. r.
Dresser on Wednesday. Dresser. Lew
Is Nixon, Charles NJ. Schwab and Har
RS. Gates & Co, were parties TO the
agreement. but the name of j. p. Nor
gan 4 Co. was mot signed TO II.
Terms Of Agreement.
According to the agreement. the
Trust Company of the Republic, ID.
Leroy Dresser and Lewis Nixon were
to acquire from the shipbuilding COM
pany 100000 shares OF its preferred
stock and 100000 shares of its common
stock. and of this, $4,000 shares each
of the common and preferred We're to
be delivered to J. p. Morgan & Co, and
$4,000 shares of each to Charles M.
Schwab, such stocks having been is
sued to said Dresser and Nixon in part
payment for the sale and transfer to
said United States Shipbuilding COM
pany Of 100000 shares of the capital
stock Of the Bethlehem Steel COM
pany."
OF the remaining 100000 shares of
preferred and 200 shares of ship
building stock, 1t was set forth in the
agreement that the Trust Company
of the Republic and Lewis Nixon were
to retain $4,000 shares of preferred
and $4,000 shares of common for "a
term not less than one year" The
agreement set forth further that one of
the considerations and inducements by
which Nixon and Dresser secured the
stock OF the Bethlehem Steel COM
pany and the funds to pay for the same
was that $4,000 shares of the preferred
stock and $4,000 shares of the common
stock be delivered to j. p. Morgan &
Co 1t is then provided that the sale
of the Morgan stock and the Schwab
stock was to be managed by Harris.
Gates & Co. 1t is set forth that the
Trust Company of the Republic guar
anteed that no part of the company's
stock except $4,000 shares of each kind
to be distributed among the various
vendors Of property acquired by the
shipbuilding company should be sold
until after the $4,000 shares of the
preferred stock and the $4,000 shares
CO the common stock to be delivered
to j. p. Morgan & Co, and the 49,
900 shares of the preferred stock and
10000 shares of the common stock
to be delivered to Charles M. Schwab
should have been marketed, sold and
of. According to the agree
ment as printed. Harris. Gates & Co.
guaranteed to dispose first Of the Nor
gan stock and then the Schwab stock
at $3.50 for the preferred, and $25 fer
the common, or lower prices If agreed
upon, but it was further provided that
each 100000 shares sold J. p. Morgan
was to receive one fourth of the pro-
ceeds and Charles Nj. Schwab three
fourths.