Sequachee Valley news. (Sequachee [Sequatchie], Tenn.) 1896-1952, 1907-11-07
CONTROL OF
T. C. 6 |. CO.
1t Passes to Hands of U. S.
Steel Corporation.
PRICE PAID FOR STOCK
Is ABOVE $85 A SHARE
Pool Holding 70 Per Cent. of
Stock Sells Out to Big
Concern.

NEW YORK, Nov. 4.-The United
States Steel corporation has secured a
controlling interest in the Tennessee
Coal, Iron and Railroad company. The
deal was concluded today and is trace
able to the conferences held at the
home of J. p. Morgan Saturday and
Yesterday. 1t is understood that the
price paid is little above S85 share.
The holdings of pool controlling some
20 per cent. of the stock of the Tennes-
see Coal and Iron company and Rail
road company was transferred.
This sale cannot fail to do much to
relieve the present financial stringency
as large amounts of the stock of the
Tennessee Coal, Iron and Railroad
company are now held as collateral for
loans by the local banks. The taking
ND of these loans by the new owners of
the stock will add materially to the
cash resources of the financial institu-
tions.
In the absence of an official state
ment, it is estimated that the Steel
corporation, acting through J. P.
Morgan & Co, has secured about $40,
600, 900 of the Tennessee Coal and Iron
stock at an outlay of some ST. 900, 900.
This important deal has had the
effect of strengthening the Trust Com
pany of America, which held consider
able of the stock as collateral, and will
alleviate the financial situation of con-
ditions that have tended to retard the
return of confidence generally.
The Tennessee Coal and Iron COM
pany is a manufacturer of open hearth
steel and about two months ago receiv-
ed all the orders placed by the Harri-
man roads for rails needed by them in
1907 and 1908.
The Tennessee Coal and Iron pool
was formed in Wall street about two
and half years ago. At that time
John w. Gates, Oakleigh Thorne,
president of the Trust Company Of
America; Oliver H. Payne, Grant B.
Schley, Anthony Brady, George NJ.
Kessler, E. J. Berwind, E. W. Ogels
by, Harry S. Black and L. G. Hanna,
acquired, it is said, about set, 800, 00(
worth of the total outstanding stock o1
the Tennessee Coal and Iron company
The stock was pooled and the price
rose from SO to 1866.
Last January it became general,
known in banking circles that severa
institutions were carrying considerable
Tennessee Coal and Iron stock
1t was subsequent to this time tina
the loans were scaled down to $50
share. Early in the following Apri
John W. Gates announced his retire
ment from Wall street. and a portion
of his holdings were taken over, it i
said, by the other members of the pool
A short while after, Colonel Payne
Harry s. Black and George Kessler re
tired. The trust company then, it j
said, lent its resources to prevent tn
stock from coming on the market at
time when it would have caused gener
al Generalization. The loan by thi
company is said to have comprised
substantial portion of the POOLS hold
ings at price around $50 a share,
At Yesterdays conference at MI
Morgan's home, steps were taken t
assist the trust company, which result
ed in agreement for today's sale
Those at this conference with MI
Morgan included Henry G. Frick, Fol
mer Judge Elbert H. Gary and Secre
tary Richard Trimble, of the Unite
States Steel Corporation, and Oakleig
Thorne, who is director of the Tenr
essee company, as well as president
the Trust Company of America.
The total outstanding stock of th
Tennessee Coal, and Iron and Raj
road company is 500, 500, 000 There
also S24S, 300 of preferred stock out
standing The bonded debt consists {
ST. 400, 600, first mortgage, ) per CEN
due July 1851.