The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-10-19

stock was to be marketed until Morgan
and SchWab had cleaned out their hOld-
ings 70 the public This was rather roush
on the other insiders, but Dresser and
Nixon signed. The agreement was ready
before they got there. lit is dated Aug.
III. 1902. which is the day when the deal
Morgan and Schwab- Those gentlemen
had their plans laid and they were ready
10 do business at once They took no
chances. but demanded that the SloVe.-
0o worth of stock remaining should re
held in trust until the Morgan anu
SChwab stock was sold.
The scheme was beautiful in fits sim
pIcltN. Morgan ana SchWah wanted their
money, wanted Sc first, and they lef2. no
loophCles, IL was an arrangement within
an agreement. There were two kinds OK
insiders. real and theoretical Morgan
and Schwab were the real ones. rho
theoretical ones were obliged 10 wait uu-
til the public had been MIXED OF the
millions demanded by Morgan and
MIXED again with the remaining $l0-
O0oO00 stock. Anything left after that
the public could have.
Mr.. Dresser did not explain why Mo-
gan & Co. demanded the enormous bonus
OF 100000 worth OF the stock Dresser
sWOre that the check with which he paid
Tor the BeLnlehen company was given
him by Mr.. Schwah. Men who are IA
miliar with Wall street affairs say Mr..
Schwab got the check from Morgan
That. If true. explains much. lt also
is correct demanded S2-50o0o0 for the
shOrt-time loan OF S7.2t6S71. that ne gave
the check and took IL back az once, foe
Dresser and Nixon Endorsed IL TO him iuf-
mcdiately after they had received d., atd
that Mr.. MOrgans firm simply bought us
own property with its own money-pur
the check from one pocket to the other
and expected to get S2.2J9o0 for the ac-
where he got the $l,246S1.
This is the story of high finance and
three years ago il would have ended hap
PLY just here, for the public would have
bought the stock and SChwab and Nor
gan would have made their money. It
does not end happily FOR Morgan and
Schwab. The public refused 20 buy.
They would not touch the shipbuilding
trust stock Harris q Gates could not
sell It. 1t was of no value. The speCi-
fcations provided that the investing pub
lie should ciamor for the stock They
had clamOred for stock just as worthless
lshmenL OF all concerned, there was no
clamor- Various eXpedients were tried
10 start boom. The boom wouldn't
start Finally Mr.. Schwab gave j.. p.
Morgan d Co. $4,000 for their S5.Ol0O0O
worth Of stock, for which the public was
expected and asked to pay thirty times
as much. AR. Schwab may have that
stock now together with his own $1,000
900 worth
The shipbuilding trust is in a legal tan-
gle. Nothing but high finance has suf-
LtEeQs except the SlpDull0luE trust STOCK
which cannot be given away. High
finance has suffered and suffered greatly.
The public comprehension has been ulu-
minated by Dresser's story of how "a pool
was formed within a pool. how it is pos
sible 10 be buyer and seller at the same
time, how there are agreements back OF
agreements. how there are cellars and
sub-Cellars under the ground floor. and
how deliberate campaigns are made to
fleece the unwary.
There are many deniaIs and talk OF
prosecuting Mr.. Dresser Meantime
Dressers story has sunk deep into the
public mind and the conclusion is rapidly
forming that thc-e are but two sides TO
the promotion Of high finance. The high
financiers take no chances and the public
has no chance
Mr.. Morgans firm has made an official
explanation OF the deal tt explains that
Mr.. Morgan had nothing TO do with the
shiphuildinE trust. either as organizer or
promoter. and that in the contract to sell
the stock held by Morgan the firm was
acting only as trustee for the United
States Steel corporation syndicate. That
is all the Morgan firm SAYS. The fact is
undenied that the Moran firm was not
only q member OF the United States steel
cOrDoratiOn syndicate, but was the ac-
tual ger and boss of the syndi-
cate. having almost unlimited power TO
buy and sell stocks and make contracts
in its name--New York World.