New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-04-27
DRESSER CHARGES FRAUD.
HE SUES FOR IS, 100000.
Hyde Syndicate CO.-Defendqnts in
.ShpbmJding Suit.

ShipbuiLdiRg Suit
suit was begun in the Supreme Court in Mas
sau County yesterday by D. Leroy Dresser TO
kecover some 100000 damages and interest
on various sums for transactions in connection
with the United States Shipbuilding underwrit-
bngs. The defendants are the Mercantile Trust
Company. the law firm OF Alexander & Green
and the syndicate James II. Hyde and Asso-
Eiates." the associates being named John Doe
and Richard Roe.
Because Of the important part this syndicate
As playing just now in the Equitable controversy
hIr. Dressers suit assumes an interest wholly
apart from the probable raking up Of the ship
building scandal II is likely 10 bring out the
members Of that syndicate and expose all its
hnderwritings. AIr. Dresser declares explicitly
that his suit has no connection with the pres
ent Equitable fight. but Wall Street is not like
~ 10 disassocate the two affairs because so
nearly The same group Of men is concerned in
zach
This action, in which Mr.. Dresser asserts that
bis Trust Company Of the Republic and he per-
eorany were deliberately sacrificed. and that
his personal business was ruined designedly be-
cause he protested against the method used IN
underwriting the shipbuilding securities. has not
been unexpected. Mr.. Dresser has expressed his
determination 10 revive the trouble. and his
friends have known that he was working TO get
evidence on which he could bring suit
His coTnSIaint names as defendants the Mer-
bantile Trust Company. John J. AIcCook, Charles
b Alexander. William G. CULVER. Charles c.
Deming Alvin ". Krech. John w. Young
bames H. Hyde and others unknown associated
with AIr Hyde in the underwriting syndicate
known as James H Hyde and Associates"
The United States shipbufding Company was
The French underwriting was wofully misrep-
Feseuted 70 him, and no reputable French finan-
biers ever went into the scheme. he AYERS. When
khe S6OO0OOJ agreed on as the price of the
properties 10 be acquired was due he was told,
BE- asserts. that the money had been raised, but
The part coming from France was delayed and
he was asked TO raise that portion IN his own
hame on good collateral TIh raised the money,
De says So 10000 which through the Trust
Company Of the Republic was turned over TO
the defendants through John J. 0IcCook. Mr..
McCooil IN making false statements was guilty
Dt unprofessionaI conduct, declares Mr.. Dresser.
DRESSER TALKS OF SUIT.
In an interview last night Mr.. Dresser ex-
Piained his reasons for bringing this action. He
said:
The case win bring out fully all the operations Of
aus clique in connection with the shipbuiding
khat the sNindle had been planned for two three
2 e9 faey o osTas ss = f me Sg5es %a ~ to me we're Of
t1eh unqlestoned standing that / was glad 10 DO
that all care possible was taken by me in the con
uct q the business but the methods resorted 10 by
tons Of every sort were such that even with great
care the sWndle was consummated up TO the point
a taking over the properties.
John j. McCook took charge OF II on this side and
q It there. James II HYDE 1ioe-president Of the
Equitable Life Assurance Society, was in Paris at
were deposited Jointly in the names OF Mr Hyde
&c &c Mt A.exanoer had every assurance that nc nc
movement, That viii be shown in the trial Of the
am delighted that the time has come at last
brought out. Every means has been used (although
usually in very Indirect way) 70 have this killed
fs Others of the same nature, ] understand, have
been killed. ] have been threatened three different
Times have been told that the strongest hnancla
tnteTests iD the city would follow me through my
Al 5reat 1rere arrest S ana criminal proceedings all
a this in a guarded way, that it would be diff-
IRON t6e time | arrived in Paris and found com
Elete e9denoe. Of the swindle have said that
would allow this thing 10 the end.
Al that time was asked 10 resign from the pres-
oenoy u the Trust Company OF the Republic. which
refused 'to DO I wac reelected president ] then
urgec ou my directors thorough investigation and
ega! attack on whoever was guilty. but 1t was
oeeided 70 postpone any more Pgoilci5y, ha ,..
AZ had been reelected ISesloent ana nae peen
ou,Epoken in favor Of a thorough investigation an
ettack was then made n a way impossible 10 trace
rae built up after years of hard work, ana whlch
eepenoed for success on IT'S good stanahg IN Ii5e
community in such a way that my credit was sud
cenly curtailed. At the time had amounts eA-
eeedinc So00l3 OF 10000 Of recevables outstanding
II was impossible turn quickly enough 10 reallle
o. these assets and WAS forced iEto insolvency
Since that time have repeatedly MADE sIorls 10
bring about an adjustment. 50 that could retain
iAy business j. could have been run under a re
etlver. and tho cash assets. which amounted 20
over sD4DJ9 without the equity "a the SIX "hlci
i2ay have been 10000 or 10000 more. would nave
been amply sufficient for the receiver 10 nave paid
on every debt in full- The mill IN t'ToylaeneS@ IN lr
which ] WIS largely Interested, could have Dee-i
Retained asset.
A. The estate has turned out. tho net debts are
Row only 10000 out OF $4,000. which they were
ei The time failure, the balance having beell
PAD u the estate This result has been accom-
i1sfed OF Of the assets of the business #ltiol'
getting within S2000 of the value of my SILK Win
our getting anything 20 speak OF Tor my niefal ~
tae Trust Company u the Republic @nlch mao a
EaTket value ~ s5S1 900 the dag went 10 EUROPE
hHe without getting auyt hing for the tFo-ihiras ln-
l-f.s' which owned IN ray mil ~ch hsd @ .iIh. +,
5000 net the previous year ard which j valued al
sstlbH more
The only conclusion ] can draw Is that 10y keep
ing down Tho truth Ira this aIalf wou4d nor
come ont but ] Immediately went 10 WORK, ana
nave devoted time for these TWO years 10 5Ft-
h.E n straigltfned out.
had thought, in Tie earlier STAGES AZ 70 ile
ser non did I know until things d"Felepe4 ~ 70
Where Iuy would lie. or II ne1 one but - o'.e
toD followed another We have acciuiniai''i "'c"-
Cuufinurd a-ccua g>ge