Marble Hill press. (Marbel [sic] Hill, Mo.) 1881-1923, 1909-02-04
SENATORS PROBE
STEEL MERGER
MONEY KINGS SAY ABSORPTION
OF TENNESSEE CONCERN
WAS NECESSARY.
SEEM TO UPHOLD PRESIDENT
Thorne and Perkins. Morean's Part
ner, Are Called Before Sen.
ate Committee on the
Judiciary.

Washington D. C.--The merger
OF the Tennessee Coal and Iron Co and
the United States Steel Corporation
was investigated by the senate com.
mittee on the judiciary Saturday.
The witnesses were Oakleigh Thorne
president of the Trust Company OF
America, and George W. Perkins OF J.
Pierpont Morgan 4 Co. who also Is
a member of the finance board OF the
steel corporation.
The testimony OF Mr.. Perkins seemed
to uphold President Rooseyelts con.
tentton that the absorption of the Ten
nessse concern was necessary to re-
lieve the panicky condition of securi.
ties in November, 1907
Mr.. Thorne denied that the Trust
| Company Of America was interested
in the deal in Tennessee Coal and Iron
stocks and declared that the merger
was not necessary TO save his insti-
| tuition.
No decision has been reached by the
committee TO subpoena Judge +, H.
GARY and Henry c Frick.
Senator Culbersou inquired Of Mr.
Thorne whether he had knowledge Of
a syndicate which owned the control.
ling interest in the Tennessee Coal
and Iron Co. in the fall Of 1907 He
replied that he had and that he was
member Of that syndicate and that
he had bought his stock and with.
drawn it from the syndicate and there.
fore was not familiar with the syndi.
Gates operations.
The names of the original syndicate
managers were given as Grant b.
SChley and Charles Guthrie Leonard
Hanna OF Cleveland took the place
Of Mr.. Guthrie after his death This
syndicate, declared Mr. Thorne. owned
d majority Of the stock of the Tonnes,
see Coal and Iron Co.
In addition to naming Schley, Guth.
rte and Hanna as being interested in
the syndicate, Mr.. Thorne mentioned
John ". Gates, +. J Berwin and H. S
Black. When asked If he had any per
sonal knowledge OF the actual sale OF
majority Of the stock OF the Tennes
see company in November, 1907. Mr..
Thorne replied;
All that know is that l delivered
my stock to J. P Morgan & Co and
got receipt for it,
When Mr.. Perkins took the stand he
was asked to state any knowledge he
had of the absorption of the Tennessee
company by the United States Steel
Corporation, and he said
The question Of the acquisition of
the Tennessee Coal and Iron Co by
the steel corporation was never brought
up or preached in any way, SO far
as my knowledge goes. until perhaps
the second or third acute stage of the
panic. Then it came up very sudden
ly. because Of the panic and very seri-
GUS disturbances that existed in New
York as result OF the great deprecia-
ton in the market value OF things and
the unmarketabiity Of great many
securities
Mr., Perkins said there was a general
feeling, which it would be difficult for
anyone to express in concrete state
ment, that If the Tennessee Coal and
Iron stock was taken out of various
loans some way it would prevent
great many failures and avert a fur.
Their spread of the panic. Continuing,
he said:
Finally someone made a sugges-
ton, which afterwards worked out.
that the corporation might furnish
its per cent second mortgage bonds
in lieu of cash, and in this way put
in lieu OF these loans securities that
were marketable"