The daily morning journal and courier., 1907-11-05
U. s. STEEL BUYS TENN. COAL & IRON Real Object of the Confer ences in the Library
 of ]. Pierpont 
 Morgan.
WILL DO MUCH TO
 RELIEVE SITUATION
Deal Greatly Strengthens the Trust Company of America, Which Holds Stock as
 Collateral.

New York, Nov. 5.-The United states
 Steel corporation has secured a con-
 trolling interest in the Tennessee Coal
 X, Iron Railroad company. The deal
 waa concluded to-day and is traceable
 to the conferences held at the home
 of J. F. Morgan Saturday and yester7
 day It Is understood that the price
 naid ia q little above $S5 a share. The
 holdings of d pool controlling some 70
 ner cent. of the stock of the Tennessee
 Coal & Iron company were transferred
 in the sale.
 This sale cannot fail to do much to
 relieve the present financial stringency,
 as large amounts of the stock of the
 Tennessee Coal & Iron Railroad com- pary are now held as collateral for loans by the local banks. The taking up 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 l ment it is expected that the Steel cor poration acting through J. Pierpont Morgan & Co, has secured about S20,- 100000 of the Tennessee Coal and l Iron stock at an outlay of some $17,- 100000. This important deal has had the effect of strengthening the Trust Company of America which held con- siderable of the stock as collateral and will relieve the financial situation of conditions that have tended to re- tard the return of confidence general ly.
 The Tennessee Coal and Iron com pany is manufacturer of open hearth steel and about two months ago re- ceived all the orders placed by the Hartman roads for rails needed by them in 1907 and 1908.
 The Tennessee Coal and Iron pool was formed in Wall street about two and q half years ago. At that time John w. Gates, Oakleigh Thorre, president of the Trust Company of I America; Oliver H. Payne, Grant B. Schley, Harry s. Black, and l. C. Hanna, acquired, it is said, about $21,- | S2O, ,00O worth of the total outstanding
 stock of the Tennessee Coal and Iron $ company. The stock was pooled and ! the price rose from 68 to 166.
 During last January it became gen, erally known in banking circles thai
 several institutions were carrying con
 siderable Tennessee Coal and Iron $ stock It was subsequent to this time tq1at the loans were scaled down to SS0 a share Early in the following April John w. Gates announced his retirement from Wall street, and a portion of his holdings was taken over, it is said, by the other members of the pool. A short while after Colonel Payne Harry s. Black and George Kessler retired. The trust company then, it is said, lent it's re- sources to prevent the stock from coming on the market at a time when 1t would have caused general demor- alization. The loan by this company is said to have comprised a substan- tial proportion of the pools holdings at price around $S0 share. At yesterdays conference, at MT Morgans home steps were taken to as- sist the trust company which resulted in an agreement for to-day's sale Those at this conference with MT Morgan, included Henry c. Prick, for
 mer Judge Ebert H. Gary and Secre- tary Richard Trimble of the United States Steel corporation and Oakleigh Thorne, who is a director of the Ten nessee company as well as president oi the Trust company of America.
 The total outstanding common stock 5 of the Tennessee Coal Iron & Railroad # Co. Is $29,5OO,OOo. There is also $24S, ,SOt
 of preferred stock outstanding. The bonded debt consists of $14,008,Oo0 frs mortgage five, per cent, due July 1851. The directors are: D, J. Berwind, An thony N. Brady, John W. Gates George A. Kesaler Grant B. Schley, Oakleigf Thorne.