The Birmingham age-herald., 1905-03-04
ADMITTED THAT HOADLEY
 CONTROLS THE TENNESSEE
Yesterdays Break In Sloss Was on Meaere 500 share5 and Represents Panic-Stricken Action of Few
 LIght-Weight Spectators.
BY w. G. NICHOLAS.

New York, March 3.-(Special)-The hitch in the iron and steel merger grows out of the consistently hostile attitude or directors of the Tennessee Coal and Iron company. The position of the Hanover bank crowd has become so pronounced against the deal that bankers interested hesitate to take hold until they can be placated.
 There is no doubt whatever that the Hoadley party owns large majority or Tennessee Coal and Iron. but moneyed in- terests behind the proposed merger VIII not go the limit until they are assured Of a peaceful settlement of pending differ ences.
 Attorneys for the consolidation party have advised the Hoadley interests that the classified directory of Tennessee Coal and Iron is illegal, and that stockholders can set it aside at the annual meeting early in May and elect an entirely new directory, throwing out the old ones, 1T so disnosed. Tennessee Coal and Iron is a Tennessee corporation and its charter proviso specifics in plain language that so many directors must be elected at an- nuaI meetings This on the face or IL is apparently clear, but the Hanover bank neonle claim that this provision does not nrobibit the creation of a classified direc- tory, and that they cannot be busted m entirety at any meeting.-of stockholders even though the majority may be over ,ybe,ming. The question is one of suf- fcient doubt to make banking interests unwilling to put up additional large sums until the issue is settled.
 Makes Banking Interests Dountfui
 This fact became known in Wall street earlv in the day and was the cause or the severe break in Sloss-Sheffield and Ten nessee Coal and Iron. Insiders Tn the consolidation scheme say the hitcn ooes not seriously jeopardize the deal put degree of skepticism is felt over the out look. which is reflected on tape. Parties ot ,rterest have been in conference all day
 
 ing.
 The Hoadley party expresses "iiiiiis- ness to put up large cash forfeit oe- nendent on their ability to swing into line the Tennessee Coal and Iron company before the 18th of May. or in lieu or casn . nu+ m an ample guarantee backed by tho names of five men whose signatures are worth many millions of dollars.
 May Go Into Abeyance.
 T, would appear, therefore. unless the uanover bank crowd can be reconciled to compulsory retirement the deal VIII go into abeyance until the middle or May next. The question, therefore, settles down to one of endurance on part Of the nromoters and orginazers of the deal. The Hanover bank party, although ao- mittedly in a small minority at the pres ent writing in Tennessee Coal and lron' are sufficiently powerful to command re- s,act among fnanciers of Wall street Other bankers are loath to buy into law suits against them. The hope Is enter tained that means may be found to ln- duce their peaceful withdrawal from the scene and permit the deal to go through.
 In Non-compromlsing Mood.
 Strong in their belief that they will be able to ultimately win over James Henry Smith the Hanover bank party IS at this time in very uncompromising inood MT. Smith will not be bacH from his trip through Mexico for another two weeks at least. and 1t Is quite likely his posi- tion cannot be authoritatively stated un- til his return Friends assume to speak for him. but they have not as yet pro- duced written evidence of power Of at torney. . o,
 The net break of 1872 points in Sloss- Sheffield today was on msatfe o'' shares and represented the panic stricken oction of two or three lightweight spec ulators. The 5ta point break in Tennessee Coal and Iron was helped along by free short sales, in which it Is supposed that the hand of the Hanover bank party ap- pears.