Daily press. [volume] (Newport News, Va.) 1896-current, 1909-01-30
SENATE COMMITTEE
INVESTIGATING MERGER
Two New York Bankers Testify
Concerning United States Steel
Corporations Acquisition.
WoRGAM'S PARTNER TAKES STAND
Perkins Declares Trust Reluctantly
Took Over it's Competitor-Ooesnt
Remember Who Proposed Scheme
News That Deal Was Completed
at Washington Stimulated Market.

WASHINGTON. ID. G., Jan. o.
The merger OF The Tennessee Coal 4
Iron Company and The United States
Steel Corporation WAS /, fore the Sen
ate committee On judiciary TO-DAY. two
New York bankers being cXamin"d
in hearing thar continued through
Two long sessions
The witnesses were OaklCigh
Thorn. pre- sidert Of The Trust Com
pany OF America. and George W. Per-
kins. of !. Pierpnnt Morgan d Conn
pany. who is also Il member of he
finance bcarI OF the steel corpora
liOn
The testimony of Mr.. Perkins seem
ed to uHhold PreSidsn, ROHS"vrlt's
contention that the absorption OF the
Tennessee concern was necessary 10
relieve the panicky condition of Sc
curities in November 1907.
Thorn Enters Denial.
Mr.. Thorn denied that the Trust
Company of America was Interested
in the deal in Tennessee Coal l. Iron
stocks and declared the merger was
not Necessary to save his institution.
He gave the names of many of the
persons who were interested in the
syndicate which obtained control OF
majority. of the Tennessee stock
Nc decision has been reached by
the committee to subpoena Judge f.
H. Gray and Henry c. Frick.
The examination of both Witnesses
today was conducted by Senator Cul-
berson.
Mr. Perkins said:
Came up Very Suddenly.
The question of the acquisition OF
the Tennessee Coal & Iron Company
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
stages of the panic developed in
New York. and then it came up Very
suddenly because of the panic and
the very serious disturbance that ex-
listed in New York as the result Of
the great depression in the market
value of things and the unmarketa-
bility of great many securities.
Mr.. Perkins said there was a gen
eral feeling that If the Tennessee CCal
& IrCn stocks were taken out OF the
various loans in some way it would
prevent great many failures and
, avert a further spread of the panic.
Continuing he said:
Tried to Aiiay Panic.
OF course az that time mcst every
| one in New York was using his re-
sources in every direction to allay the
ranic. and some ONE don't know
| that know who-made suggestion
| that the steel corporation was the ono
that nigh, take these particular SO,
cUri,ies and relieve that part of the
| situation remember il was dis
/ cussed as TO whether cash could bC
| prov idcd. or whether 1t couId not and
! how il might he done. Finally som
| one made suggestion. which. after
wards worked ont. that the corpora
ton might furnish it's five per cen;
| second mcr: gage b. nds in lieu o.
| cash. and in this way pui in lien o;
| these loans. securities tina: W.T.
| marketable"
Trust Was Backward.
Mr. Perkins said th"r" was great
| deal Cf reluctance on the part Of ;h''
| steel corporation to ,akr the Tonnes
! see Goat & Iron Company property
He said the steel company cOrsidercG
| the price very high. and THAT thcr''
| might ne great deal OF criticism
| As &c their right 10 take the property
Tho .panicky feeling as 10 he ie'
| PRECISION in American securities was
| dcscTibcd by Mr. Perkins. who told
| q! the visit 10 Washington %: Judge
r.. ". Gray and Henry G. Prick. 70.
| the purpose Of seeing The President
News Came opportvneiy.
practically ryihiug was at a
| 81 andsiiII until ~c got word from
| washington a. 10 What seemed 10 BE-
tho feeling there" continued Mr.
| Perkins That Vas tcicphoued "a
u,r by Judge Gray about zen O'Clock
On Monday abort The line the market