Morgan County republican. (Versailles, Mo.) 1906-1914, 1909-02-04
MONEY KINGS SAY ABSORPTION
OF TENNESSEE CONCERN
WAS NECESSARY.
seem TO UPHOLD PRESIDENT
Thorne and Perkins, Morgan's Part.
ner, Are Called Before Ser.
ate Committee on the
Judiciary.

Washington, ID. C.--The merger
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, ard George W.. Perkins of J..
P%ierpont Morgan & Co., who also Is
a member of the finance board Of the
steel corporation.
The testimony Of Mr.. Perkins seemed
TO uphold President Roosevelt's con
tention that the absorption of the Ten
neEsee oncer was necessary to re-
lleve 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
was not necessary to save his insti-
tuition.
No decision has been reached by the
committee to subpoena Judge Il. II.
Gary and Henry c. Prick.
Senator Culberson inquired of Mr..
Thorne whether he had knowledge Of
a syndicate which owned the control
ling interest I'm the Tennessee Coal
and Iron Co. in the fall of 1907. He
replied that he had and that he was
q member of that syndicate and that
he had bought his stock and with
drawn 1t from the syndicate and there
fore a 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
a majority Of the stock Of the Tennes.
see Coal and Iron Co.
In addition to naming Schley, Guth-
RE and Hanna as being interested in
the syndicate, Mr.. Thorne mentioned
John w. Gates, f. J. Berwin and II. s.
Black. When asked II he had any per-
sonal knowledge Of the actual sale Of
a lloJOll vi nv otoSh VI IN lChHCo
see company in November. 1907, Mr..
Thorne replied:
"All hat | know Is that / delivered
my stock to j. p. Morgan G. Co. and
got a 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. 30 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 a result of the great deprecia.
ton In the market value Of things and
the unmarketability Of q great many
securities"
Mr.. Perkins said there was a general
feeling. which 1t would be difficult for
anyone 10 express In q concrete STATE
ment. that II the Tennessee Coal and
Iron stock was taken out Of various
loans some way 1t would prevent a
great many failures and avert a fur
Their spread Of the panic. Continuing,
he said:
Finally meo made a sugges'
ton, which afterwards worked out,
that the corporation might furnish
its 6 per cent second mortgage bonds
In lieu Of cash. and In this way Du,
In lieu OF these loans securities that
were marketable"