The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1909-02-04

and j. w. GaSes-Admisson Made
That Tennessee Company After Pro-
posed improvements Gould Re Made
Would Have 9een able to Supply
Product Cheaper Than Anything en-
the Market.
Washington, Feb. "Details of the
formation OF syndicate to control the
Tennessee Coal and Iron company
and Of later negotiations for the sale
OF a majority Of the stock Of that con-
Germ to the United States Steel Corpo-
rs ion Were given by Grant B. Schley
ol New York, a member Of the New
York firm OF Moore & Schley, who was
Il witness before the special committee
q the senate committee on judiciary
which is Investigating the presidents
authority for permitting the merger.
The names Of the persons forming
Tie association were given by Schley
as follows: O. H. Payne, l.. G. Hanna,
G. B. Schloy, J. B. Duke, e. J. Ber-
Wind, j. W. Gates, A. N. Brady, G. A.
Eessler, OakIeigh Thorne. who held
1Q,500 shares each; e. w. Oglesbay,
H. S. Black, f. D. Stout, J. W. Simp-
son, who held 5,15o shares each; G. w.
French, 2,5o0; S. G. Cooper, 1900; and
j. A. Topping, / 900 shares.
{ Tn the two years following the pur-
chase Of the stock $7,000,000 was ex-
pended in improvements. Schley esti-
mated that before the sale to the steel
corporation the Tennessee company
owned from 500,000000 to 700,000,000
tons of iron ore, 100000, 900 tons of
coal, large amount of fuxing ma
terial and large quantities of all the
other elements needed for the manu-
facture of steel
"They Wanted Control"
Schley said hat his firm had borrow
ed for himself and customers between
$4,000 and $6,0O0,0OO which was
outstanding. Oh Nov. /, 1907; and that
the total outstanding loans of Moore &
Schley on that date amounted to about
1888, 100000:
Senator eCu15erson wanted to know
why the steel corporation could not
have relieved the situation by simply
taking care Of that 100000 shares of
stock which was in loans.
/ sschley said such thing had never
been considered. "It was natural to
think that when they took the stock
they wanted CONTROL" the witness
eadded,. test
!. Sci4loy testified that the requirement
Of 20 Tennessee company's property
by the steel corporation added to the
value of steel securities.
Senator Kittredge asked if contem-
plated improvements would have en-
ahled the Tennessee company to manu-
facture steel cheaper than any other
steel company in the country and
schley replied; eyes, I believe that
Is So"
). It was brought out by Senator
CVVer1nan that all of the men Of the
party which bought the Tennessee
company's stock were men of great
wealth and few of them would have
been financially embarrassed if the,
deal of the steel corporation had not
been accomplished.
Tells of Panicky Days.
The witness then described his visit
to Lewis Cass Ledyard. Schley said
Ledy0rd was not his attorney but was
the friend Of j. Pierpont Morgan. The
proposition made to Ledyard was that
he should 90 to Morgan and suggest
that the STEEL corporation buy the
stock Of the Tennessee corporation
on the basis Of par and cash. Schley
said that Messrs, Prick and Gary call
ed on him and the deal developed.
In response TO questions by Senator
Dillingham;. Sehley said the effect of
the purchase was to relieve the situa-
ton most decidedly, The witness
gave a graphic description of the pan
icky days and told of the calls made
upon his firm, which he said amounted
to 100000 in three days, and he de-
dared that nobody could pay all that
money at once"