New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-14
SAY S75O,OOO WAS REPAID
Amszcer of Harris, Gates 6 Go. an
,Sbipbuilding Case.

tho answer Of the latter firm in the suit brought
against them about month ago by the common
wealth Trust Company. formerly the trust Coih-
pany of the Republic. for the recovery or S'o"""
alleged 10 be due tho plaintiff from the defendant
firm on a transaction in connection with the hoat-
ing of the United States Shipbuilding Company
The answer is in substance as follows:
On or about September t. 1902. the plaintiff Uhe
trust company desired to furnish for the use OF
the United States Shipbuildng Company, of which
it was the principal banker well as being one OF
the bankers of the syndicate promoting the COM
pany, the sum of s750OOl but desired and planned
that such advance loan or investment OF SAID
money. whichever the may have been, should
be represented, at least temporarily, by bills re-
ceivable the said amount of $4,000 and by GER
tain securities purporting to be collateral securing
the payment Of such bills receivable.
TRUST COMPANY AUTHORIZES LOAN.
The plaintiff thereupon sent to the defendant the
following commission in writing. under date or
September 16 1902:
Messrs Harris Gage & Co.
Gentlemen: We hereby authorize you to loan for
presser Of the Tilted States shipbDding syndi-
cate on the following collateral 10000 shares of
stock of the United States Shipbuilding Company.
TRUsT COMPANY OF THE REPUBLIC.
Daniel Leroy Dresser. President
On the same day Harris. Gates & Co received
from the Trust Company Of the Republic a prom
issory note for $4,000. signed by Lewis Nixon and
Daniel lie Roy Dresser and payable on demand;
certificates representing 2O00O shares OF the pre-
ferred stock and 1000 shares of the common stock
of the United States Shipbuilding Company Upon
receipt OF these papers Harris Gates & Co. drew
and delivered TO the company their check on
the First National Bank $4,000 payable 10 the
order of Lewis Nixon and Daniel lie Roy Dresser.
This check Endorsed by an ernploye OF the
trust company. who was neither Mr. Dresser
Mr.. Nixon, with the names OF those two men and
the Endorsement guaranteed by the trust COM
pany and deposited by II in the Bank Of the Man
haitian Company. and went through the Clearing
House on the slme day This check and its in
dorsements were follows:
No. S102 New-York Sent 1s 1912
s-zooo FIRST NATIONAL BANK,
Pay to the order Of Lewis Nixon an% nanie,
LIE Roy Dresser seven hundred and fifty thousand
$4,000. HARRIS. GATES & co.
Qndorsements)
IT,. For deposit
and Daniel Leroy Dresser.
Endorsement guaranteed
Trust Company OF the Republic
Bank of Manhattan Company.
Trust Company OF the Republic
l. {. CLARKE Secy. & Treas
752,39.
Manhattan Company.
Received Payment
Through New-Yorl1 Clearing House
TRUST COMPANY LENT THE CASH
Also September L. 1902, the Trust Comnanv or
the Republic, drew to the order OF and delivered
to Harris. Gates & Co its check for s750oOo which
check. the answer recites was therea tter and on
the 18th day OF September 1902 paid by said Bank
or Manhattan Company by means or out of the
money derived by It from the payment Of said
check, drawn by said Harris Gates z. co and de-
u as aforesaid or by means of the credit by
o CO me credit given to plaintiff by said Bank
said check was charged was prior to the paymen1
ny said bank or plaintifs said check, credited or
deposit by plaintiff with said bank OF Defendants
Soon after their receipt of the Nixon prssser
note note, and ne accompanying collateral, the answer
and securities 10 the trust company which were
received and accepted by the trust company I'm
egeTy obligation on the part Of defendants The
Sheldon syndicate Of which the defen9anf9 or the
were members, and that the plaintiff delivered
OF preferred and 10000 shares common stock of tbs
d S With me wh 6s
Pom | fbe eyndos = @ ana 5eHsved In
all thereof. plaintiff applied to its own use"
SYNDICATE PAID THE NOTES.
The trust company the answer contsnues sIso
agreed with the syndicate and with Messrs nixon
and Dresser that the s4.l25ooo would be apphad by
the trust company in full payment and satisfaction
promssory note of said Nixon and Dresser for
re as a9dfesad an eE
of said Nixon and Dresser for The sum OF $50
600 by said Sheldon syndicate paid In full unto
plaintiff and the payment made unto piaintiff
by il accepted in full payment and satisfaction
OF said note
In the complaint served by the Commonwealth
Trust Company, II will be remembered, II was al
legged that the Nixon Dresser note given to Harris
Gates & Co. was not ono OF the notes which were
taken I'D by the Sheldon syndicate.
CHEAP sHIPsUILDINo BONDS.
Among the securities sold "for account o,sSy,,,,,
Il may concern at the weekly auction rale yester-