New-York tribune., 1909-06-29
DRESSER ON DEFENSIVE
REFUSED TO RESIGN 1T
S.lTTERLEE'S REQUEST.
As ReubHc Trusts Head He i'd
mits He Made Loans UithOut
Consulting Directors.

Saratoga Springs. y Y. June 28-Daniel La-
rov Dresser. sx-president of the defunct Trust
Company Of the Republic, which is alleged 70
have suffered losses as a result OF the financing
Of the United States ShipbuiIding COMPANY. tes-
tifed to-day in the case OF Charles H Kava-
naugh against former directors of the company.
NJ Dresser said he had been asked TO resign
as president following his return from Europe,
81 November. 1902 and he refused. He had gone
70 Europe in the interest Of the shipbuilding com
pa-v- and while he was there the Sheldon syn
dicate was organized to relieve the trust COM
pary Of the shipbuilding obligations
When he learned Of this upon his return. Nj
Dresser said he voiced his disapproval of the
action Herbert L Satterlee, one Of the direc-
tors, suggested that he resign, said the witness,
but he refused He not only refused. but told
NJ Satterlee that he considered that the inter
ests Of the trust company had been sacrificed
Nj Dresser was OF the stand throughout the
day OF the $4,000 GOO which tbs shipbunding
co-pany was obligated TO pay on August L,
1892 y order TO take over the constituent prop
critics Of the company. he said more than S4,-
100000 had been secured, including q loan Of
100000 made to Lewis Nixon by the Trust
Company Of the Republic The remainder.
slightly less than 81 100000, was loaned TO Nixon
by the trust company or August y. Nixon and
Dresser giving their notes and shipbuiding col
lateral as security
NOT NEEDED IN NEW YORK
This loan. Nj Dresser said. he made as presi-
dent Of the trust company without consulting
the board Of directors Mr- Dresser said he
went TO Europe late in September TO see
whether the French underwriting Of 100000
worth Of bonds would he forthcoming on Octo-
Der s the date which had been fixed for an ac-
counting.
-1,a vs-2C 70 a
had II Paris. he cabled TO New York and asked
for instructions. He was told that committee
had been organized ard the situation adjusted
and was advised 10 go ahead and sell the ship
building bonds as planned in Amsterdam Ham
burg London ard Paris. He was also tole
that he was not needed II New York
On cabled instructions Dresser said he pro-
reeced 10 Paris where he found John W
Young and compelled him to give an order for
slipbuiIdang securities which were n the pos
session Of the trust company when the witness
left New York. subject to Mt. Toungs order.
Although the witness said he was advised that
he was not needed in New York, he returned
late in November and found upon his arrival
that there we're nc shpbuilding securities in the
possession Of the trust company.
Mr Dresser told of his subsequent efforts TO
build up the credit Of the colep-1. az . n
crease its deposits. He was reelected president
a1d remained in Office until March 3, 1903, just
previous 70 the bankruptcy.
George J Gould, he said, although director,
had never been at the Office Of the trust com
pany. Il had been the understanding when he
accepted the directorship that he would be re-
iieved Of duties as 4 director
THE BETHLEHEM STEEL COMPANY DEAL
or cross-exarolnation AIr-. Dresser said that
Re attributed his financial rnisfortUnes 70 the
downfall OF the shiPbUilding company. He told
Of meeting Charles u. Schwab then president
ot the United States Steel Corporation, who
asked him i the shipbuiIding company wanted
70 buy the Bethlehem Steel Conpany- Event
ually the steel company was taken over
NJ Dresser denied that the trust company
had ever speculated n its own stock. Occasion
ally. he said. he had purchased stock for out
s.ders whose credit was good, giving the COM
panys check for it. but he had never attempted
70 manipulate the market il any way
I vas suggested 70 Dresser by q representa-
tive Of the Mercantile Trust Company that they
would turn over SI4 500 Geo Of shipbuiding bonds
+ he would personally negotiate loans 70 make
Up the amount required This the witness ur-
de-took 70 co and the money was produced by
loans which the witness obtained from several
financial institutions on notes given by Dresser
ard Lewis Nixon and also b. 2 loan made by
TIE Trust Company Of the Republic To Nixon
with shipbuilding securities as collateral
Among the transactions concerning which the
wtness was questioned was deposit made by
the Trust Company Of the Republic with Harms
Gates &. Co Of SI50o00. About the same time
Harris. Gates & Co leaned $750.000 TO Nixon and
Dresser on their notes, and the amount was
derosfre5 with the Trust Company Of the Re
public 70 reduce the Nixon loan The witness
said the transaction grew out Of an arrange
inert he had made with Harris. Gates q Co. but
that 10 formal agreement had been entered lh'o.