The Winchester news. [volume] (Winchester, Ky.) 1908-19??, 1909-01-30
PERKINS TELLS
OF BIG MERCER
Endorses Statements Made.
By President.
PREVENTED Big DISASTER

New York Banker In Testimony Be-
fore Senate judiciary COMMITTEES
Describes Panicky Conditions In
New York During Fall of 1907.
Steel Corporation Exchanged Bonds
For Stock In Tennessee Concern
and Fears Of Public Set at Rest.
Washington, Jan. 30.-The testf-
mony of George w. Perkins. manager
of the banking house Of ]. P. Morgan
& Company, before the executive ses-
sion of the subcommittee of the SEN
ate judiciary committee, that is rob
ing the absorption Of the Tennessee,
Coal & Iron company by the United
States Steel corporation, was in the
main a substantiation of the facts in
the case as presented to congress by
President Roosevelt in a special mes
sage.
In describing conditions in New
York financial circles following the
panic of 1907, Mr.. Perkins said there
was a general feeling, which it would
be difficult for anyone 10 express in
a concrete statement, that If the Ten
nessee Coal & Iron stock were taken
out of various loans, some way it.
would prevent great many failures
and avert a further spread Of the
panic. Continuing, he said:
'Of course at that time most every
one in New York was using their re-
sources in every direction to allay the
panic, and some one-I don't know
that / know who-made a suggestion
that the steel corporation was the
one that might take these particular
securities and relieve that part of the
situation. Finally some one made. a
suggestion, which afterwards worked
out, that the corporation might fur
nish it's per cent second mortgage
bonds in lieu of cash, and in this way
put in lieu of these loans securities
that were marketable"
Mr.. Perkins said there was great
deal of reluctance on the part of the
steel corporation to take the Tennes-
steel company considered the price
very high and that there might be a
great deal of criticism as to their
right to take the property. Mr.. Per-
kins told also of the visit to Washing
ton of Judge L. H. Gary and Henry
c. Prick for the purpose of seeing the
president.
Practically everything was at a
standstill until we got word from
Washington as to what seemed to be
the feeling there" continued Mr.. Per-
kins. THAT was telephoned to me
by Judge Gary about 10 o'clock on
Monday, about the time the market
opened, and the news that this trans
action probably would be made was
given out and had an instantaneous
effect for the better on the market.
and, l have always believed, stopped
the panic. At any rate, from that
time forth matters righted them
selves, and we were met with no fur
Their serious depressions"
1t was asserted by Mr. Perkins thai
there had never been any intention on
the part of the steel corporation of
acquiring the Tennessee Coal & Iron
company. He said the transaction
was carried out with but one purpose
in view, namely, to allay the unset
tied conditions that existed at that
time. Responding to questions by
Chairman Clark as to the effect of
exchanging steel bonds for the stock
of the Tennessee company, Mr.. Per-
kins said: Whether or not the steel
bonds were intrinsically any better
than the Tennessee Coal & Iron stock
was not so much the question as it
was that the public Thought they
were." He explained that these
bonds by reason Of the public con-
fidence were convertible into cash.
Oakleigh Thorne. president of the
Trust Company Of America, was a
voluntary witness before the commit
tee, his testimony being to the effect
that his company was not interested
as owner in any stock of the Tennes-
see concern. but that it had advanced
large sums of money to owners of
the stock, taking shares as security.