Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-01-30
New York Bankers Tell
Of Steel Merger
Il Renewed Confidence and
Restored Prosperity.
Merger Part Of Financiers' Plan
To Relieve Situation.

WASHINGTON, JAN. -5.-I Iit IiiNi 81 W
the Tennessee Coal & Iron Co. and the
United States Steel Corporation was
probed by the Senate committee on jul
dietary today. two New York bankers
being examined in an executive near
ing, which made two long sessions. Tie
witnesses We're Oakleigh Thorne. presi-
dent of the Trust Co of America, anJ
George w Perkins. of j. Pierpont Nor
gan & Co. WhO.iS also a member OF tbs,
finance board of the Steel Corporation
The testimony of Mr. Perkins SEEM
cd to uphold President Roosevelt's con-
tention that the absorption of the
Tennessee concern was necessary to re-
lieve the panicky condition of securi-
ties in November, 1908.
Mr.. Phorne denied that the Trust
Co. of America was interested in the
deal in Tennessee Coal & Iron stock
ard declared the merger was not neces-
sary to save his institution.
The examination of both witnesses
today was conducted by Senator Gull
hcrson. Mr.. Thorne testified that the
Trust 90. of America had no interest
in the stock of the Tennessee Coal &
Iron Co, as owner, but that OH Nov.
!, 1907, it loaned $42S,700 TO SIX indi
viduals holding the stock at GO as col
lateral. All these loans, Mr.. Thorns:
said We're paid off in November, ex-
cept two of $4,000 each. Mr.. Thorne
said that he considered the securit $
for the loans absolutely good and that
his company had no interest whatever
i'll the absorption of the Tennessea
Co. by the Steel Corporation and did
rot know of the negotiation until after
it had been begun.
Culberson inquired of Mr. Thorne
whether he had knowledge of a syndl
cate which owned the controlling in
terest in the Tennessee Coal & Iron
Co. in the fall of 1907. He replied that
he had and that he was a member of
that syndicate, but that he had bought
his stock and Withdrawn it from the
syndicate and therefore was hot IA
miliar with the syndicate operations
When asked if he had any personal
knowledge of the actual sale or a ma
GRITTY of the stock of the Tennessee
Co. in November, 1907, Mr.. Thorne re-
Piled
"All | know is that delivered my
stock to j. P. Morgan & Co. and got
receipt for it. Overnan asked Mr.
Thorne if at the time of the merger
the Trust Co. of America was financial
~ embarrassed and if so. whether the
merger had tendency to relieve the
it had no direct bearing on either him
self or the company, but as it assisted
the general situation, naturally it as
sisted his institution.
Overman inquired if he or his inst1-
tuition would have been embarrassed
if the merger had not been made, and
MIR. Thorne replied: mo, / don't think
it made any difference in that line"
At the time the syndicate to control
the Tennessee Coal & Iron Co. was
formed. Mr. Thorne said, the syndicate
price was $40. but it's market price
was s95 and it went up to $12S.
When Mr.. Perkins took the stand he
was asked to state any knowledge he
had of the absorption of the Tennessee
Co. by the Steel Corporation and he
said:
THE question Of the acquisition of
the Tennessee Coal & 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 developed in New York and then
it came up very suddenly because of
the panic and very serious disturbance
that existed in New York as the result
of the great depression in the market
value of things and the unmarketabili-
ty or many securities He said that
;11,s
would be difficult for anyone to ex-
press in concrete statement that the
Tennessee Coal g. Iron stock had bean
taken out Of various loans in some
way it would have prevented great
many failures and averted further
pread of the panic. He saiG:
"Of course at that time almost
everyone IN New York was using his
resources in every direction to allay
the panic, and some one--I don't know
that l knew who-Made a suggestion
that the Steel Corporation was the one
that take these particular securities
and relieve that part Of the situation"
Mr.. Perkins said the Steel Corpora
ton showed much reluctance in taking
the Tennessee Coal & Iron Co, prop
erty. He said the Steel CO., considered
the price very high and that there
might be a great deal of criticism as to
its right to take the property. The
panicky feeling over the depression in
American securities was rescribed by
Mr.. Perkins, who also described the
visit to Washington of Judge F. r.
Gary and Henry c. Prick to see tie
President.
practically everything was at al
standstill until we got word from
Washington as to what seemed to be
the feeling there continued Mr.. Per-
kins. That was telephoned to me by
Judge Gary about 10 o'clock on Mon
day, about the time the market opened,
and the news that this transaction
probably would be made was given