Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-02-02
TELLS OF BUYING STOCK
Gives Names of Persons Interested
in Syndicate.
ACTION TO RELIEVE MARKET
Expenditure of Millions to Better
the Property-Loss of Con-
fidence in Securities.

Grant 3. Schley of New York, one O:
the men who managed the syndicate that
was said to have controlled majority
OF the stock of the Tennessee Coal and
Iron Company, when it was absorbed by
the United States Steel corporation, was
witness today before the special COM
mittee of the Senate judiciary committee,
which is making an inquiry into the
Presidents authority for permitting the
merger. The witness was examined be-
hind closed doors, as were all of the wit
nesses who. preceded him.
Mr.. Schley testified that in company
with hfteen others he bought a ma iority
interest in the Tennessee Coal and Iron
Company in 1905 He gave the names Of
the persons interested in the syndicate as
follows: o. H. Payne l.. c. Hanna, G. b.
Schley, }. r. Duke. f. J. Berwynd. J. w
Gates. A, n. Brady, G. A. Kessler and
Oakleigh Thorne. 10000 shares each: E.
W. Oglebay. II. S. Black. F. v. Stout and
J. W.. Simpson, 5.15O shares each; G. W.
French. $500: s. G. Cooper, 1900, and j.
A. Topping. 1000 shares
Withdrew Their Stock,
The people associated in the syndicate
for the most part withdrew their stock.
although some Of them left it with the
firm OF Moore & Schley. stock brokers.
and great deal OF it found its way into
oanks as security for loans. OF the
amount IN the control OF Moore & Schley
between five and six millions was pledged
as security, which condition existed in
November 1907 "
The suspicion was directed against this
STOCK during the panic Of October and
November, and there came a demand
from several banking houses, according
70 MT Schley, for the removal Of the
stock and the substitution of other Sc
curities. Ok"
AS a result Mr.. schley went to Lewis
as friend of j. P. Morgan, and sug-
gested that the Morgan interests should
purchase the Tennessee Coal and Iron
STOCK and issue steel bonds in it's stead
IN order to relieve the market. Incl
dentally, Mr.. Schley brought out the fart
that Mr.. Ledyard was not his LAWYER as
stated by George w. Perkins, manager
Tor J. +. Morgan & Co, but was known
oy Mr.. Schley as a friend Of Mr.. Nor
Expenditure for Betterments.
The stock was purchased by the asso-
cation or business men at no, and in the
Two years 1t was held by them they ex-
pehoed' according to Mr.. Schley, be-
tween SIX and seven millions of dollars
IN oetterments. which ran the cost of
their stock up to about 119 or 100 Mr..
Schley discussed the Tennessee Coal and
Iron property and said that all OF the
elements that go to make up the manu-
facture of steel were found within a ra-
dlus OF thirty miles from Birmingham,
Ala. where the plant was located.
He expressed the opinion that steel
could be manufactured there more cheaply
than at any other plant. and said that
the men who owned the stock had conf
dence in it and hated to part with it, but
the situation in which they found them
selves because of the public loss of con-
fidence In these securities compelled them
to sell.
Mr.. Schley declared that he knew moth
ing of the affairs Of the Tennessee Coal
and Iron Company, except as they were
involved In the transaction recounted by
him. He had not concluded his testimony
when recess was taken at 1890 O'Clock
until o'clock.