The Washington herald., 1909-02-03
SENATORS QUIzZ
STEEL MAGNATE
Continued from Page Four.

sorption Of the stock by the United
States Steel Company. any Of these men.
and which OF them. would have been
financially embarrassed II It had gone
through
Mr.. Schley-That is a question It would
be very difficult 10 answer.
Senator oveTman-These men are some
Of the richest in the country. are they
not?
Mr.. schiey-Yes. some Of them are.
Senator Overman wanted TO know
whether o. Il Payne or Leonard Hanna
would have been embarrassed by call
made on them by the banks. and Ar.
schIey answered in the negative. As they
had paid for their stock. It was not
necessary TO call on them.
Senator Overmsn-I do not suppose
Mr. Schley would have been
Mr.. Schley-Mr. Schiey was trying to
borrow money on his stock
The price paid for the Tennessee stock
by the So-callsd syndicate was 10. and
Il was sold al par.
Senator Overman-So. you were selling
this stock during the panic at par?
Mr. Schley-Yes. sir.
/ Senator Overman-Your effort in trying
to sell It was not especially 10 stem any
crisis that was IN the market, was It?
/ Mr.. Schley-That was the only object
I had, to be exactly accurate about II
Overman Seeks Names.
Mr.. overman pressed Mr.. sehley for the
names Of men holding a majority of the
stock who would have been financially
embsrrased Il the sale had not been made,
but Mr.. Schley said he could not answer.
Senator Overman-If you cannot answer
that question, then il was not your pur-
pose in securing this deal to save any
OF these particular individuals from fnan-
cial embarrassment?
Mr.. Schley-No. I have not said So
said Moore and Schley we're borrowing
money 20 a large amount and the calls
were being made upon them. 1 can I
state what would have happened 70 Moore
and Schley II these calls had continued
/ It got 70 a dangerous point
/ Senator Overman-It was stated that u
was 20 save somebody from financial en-
barassment. or some firm. 1 understand
your firm held no stock. so they would
not have been financially embarrassed as
a firm, would they?
/ Mr.. Schley-They would most decidedly.
They were borrowing money. I'VE or six
million dollars II they had been asked
10 pay that fve or six million dollars,
they would have been embarrassed
Senator Overman-I understand you
were asked 10 pay it2
Mr. Sehley-We were asked every day
/ Senator Overman-You were asked 90
put security for the loans you had?
i Tells of Transfer.
Mr.. SchIey said he had gone 20 Lewis
Cass Ledysrd TO begin the negotiations
for selling the Tennessee Company S
stock. and Judge Gary and Mr- Prick
\ came into the arrangement. Il was nee
] essary not only 70 save the credit OF
i Moore and Schley, which was being at
tackled. but for others interested, 20 bring
about the transfer OF stock 70 the Steel
I lCorporatiou. The entire situation was re-
lieved wh41 the transfer was made The
runlor that Moore and Schley we're hold
, ing tbs stock was erroneous. but the pres
sure was there against them
. or the transfer itself. Mr.. schley said 81
was made finally BY paying steel bonds
J 70 the Tennessee stockholders on the basis
OF par in cash. The bonds. he believed
I were priced al S. the then quotation
r which gave the stockholders S11.S9.7S II
bonds for 100 shares OF Tennessee stocks
This reduced the cost 20 I07 for 10
; About FIVE Of the sixteen majority stock
holders had borrowed from Moore and
> Schiey on their stock Senator CuIber-
son asked II it was not a fact that the
= majority holders merely consented TO the
sale because they were IN the syndicate
/ and Il was in the interest OF majority
Of the group.
I can't read their minds" said M
Schley. Il know they were al willing
under the pressure, 20 do this John "
: / Gates got back 10 the United States ius'
before the deal was cOnsummsted and
assented 10 it as a holder OF individual
stock"
Mr.. SchIey said he had never talked e
J. P. Morgan about the deal, only 70 Mr.
Frick and Judge Gary. and knew nOthinE
until after Il occurred about getting Pres
! ident Roosevelt's assent 10 the merger.