New-York tribune., 1909-06-26
DIR. DRESSER on STAND.
Tells of Organization of Trust Com
pany IN KaranGugh Case.

Saratoga. June 25.-pavid lie Roy Dresser. former
president of the Trust Company Of the Republic,
was a witness to-day IN the case OF Charles II
Kavanaugh against the former directors OF the
company on trial in the Supreme Court here be
fore Justice Van Kirk NIr Dresser told Of the
organization OF the trust company and Of the cir
cumstances which led up 10 the transactions with
the shipbuiljing company. He said he was first
informed OF the proposed shipbudng project after
the return from Paris OF John Y. Young. the
promoter In May. 1902. The plan to raise $4,000
600 to finance the undertaking explained 10 the
witness. and he told that Of this amount So
600 600 had been placed In London and S3.9nO.oo0
In Paris The remaining S3.00o000 Mr.. Dresser
said the Trust Company of the Republic was asked
to dispose by representatives of the Mercantile
Trust Company which was interested in the ship
building company. The proposal was taken up at
a meeting OF the board of directors OF the trust
company and the witness said he advocated the
nlsn It's advantages were discussed the directors
all approved and a decision 70 proceed was reached
Mr.. Dresser then took up the active promotion OF
the enterprise He told of his efforts TO induce the
directors of the company 10 subscribe Tor uhoef-
writings and said he succeeded eventually III Idls-
ing tho required 100000 by August /. l%Z Inc
foreign IInderwritings however were not forth
coming and the witness said he endeavored to
raise Sf75OO0O more a part Of the French allot-
nnent the remaining $l.25ooo having been promised
from Paris by August Il on that date the con
stituent properties of tire shpbuIlding company
EGT
had been made for the purchase of the Bethlehem
Steel COMPANY There needed at that time.
Mr. Dresser said $4,000 to acquire those prop
critics. and the money was not all In sight
At this point Mr. Dresser's story was cut short
bv an adjournment until Monday, when he VIII re-
sumo his testimony.
Dr. Frederick \. Cleveland, an expert accountant
who occupied the witness stand most Of the day.
testified that he had found certain entries on the
hooks Of the Trust Company Of the Republic which
he described as padded loans The effect or
these entries he 50 d. 10 make II appear on
the books that there an increase in deposits
and an increase In the loans DurinS Dr. Cleve-
lands testimony It shown that President
Dressr and Secretary Clarke had speculated in
stock Of the Trust Company of the Republic but
that the books showed profit to the trust com
many accruing from the transactions.
Counsel for Perry Belmont and James Mcmahon
asked that permission be given to take the deposi-
tions of these defendants. In Nj. McMahon's case
the court acquiesced. the defendant being i'll in
New York. but in the case of Mr.. Belmont the
court stated that when the case called early in
the month Samuel Untermyer Mr.. Belmorts coun-
sci at that time had stated that Mr.. Belmont was
I'm Europe but he ready to come when cabled
that his presence required. He therefore re-
fused grant the request.
Mr. Herrick, of counsel for Stuyvesant Fish,
stated that Mr.. Fish was in Europe. called there
by the illness of his wife. and that he might ask
permission later take Mr.. Fishs deposition. Mr..
Herrick said he had been informed that Mr.. Fish
expected TO sail for home July 7. This request
the court also denied