Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1909-02-04
TOLD THE DETAILS
sENAToRs HEAR MORE OF TEN
NEssEE COAL AND IRON
coMPANYs ABSORPTION.
NETWORK MAN THE WITNESS
Grant B. schIey Tells Of Syndicate
Which Afterwards Sold Out to
United States Steel
Corporation.

4 Washington, Feb. 3.-Details OF tine
Y formation Of a syndicate to control
the Tennessee Coal & Iron company
y and Of the later negotiations for the
sale OF majority of the stock Of that
concern to the United States Steel
corporation were given Tuesday by
Grant B. Schley Of New York, mem
Der OF the New York firm Of Moore
q Echley, who was witness before
the special committee of the senate
committee on Judiciary which Is In
veatigating the presidents authority
Tor permitting the merger in Novem-
Der, 1907.
Mr.. Schley gave the names Of the
Is men who Joined In an effort to con-
troll the stock. He told also Of the
arrangement for the sale Of the stock
70 the steel corporation, and indicated
that this was brought about through
the agency Of J. P. Morgan & Go.
At the time of the purchase Of the
stock in the fall Of 1905 there was
outstanding common stock valued at
S2s.6b0,00O and preferred stock to the
amount Of 100000. The association
4 Of business men obtained 11S,60O
shares, which was more than half Of
the total. Mr.. Schley said the party
had the idea Of developing the prop
erty and was not specializing in the
least. About one-half of the stock
was paid for by the individuals and
withdrawn, and about one-half, ac-
cording to Mr.. Schley's estimate, was
borrowed upon by the holders. The
only agreement made by members OF
the party was that they would not
sell the stock for q period Of two
years. The names Of the parties
forming the association were given
BY Mr.. schley as follows:
0. H. Payne, L. c. Hanna, G. B.
Schley, J. B. Duke, q. ]. Berwind, ].
w. Gates, A. H. Brady, G. A. Kess-
Ter, Oakleigh Thorne, who held 10000
shares each; q. w. Oglebay, H. s.
Black, F. D. Stout, ]. w. Simpson, who
held $3.50 shares each; G. W. French,
$500; 8. G. Cooper, 1900, and ]. A.
Topping, 1000 shares.
Mr.. Schley estimated that in the
fall Of 1907 the Tennessee company
owned from 100000 to 100000 tons Of
iron ore, 2,OOO,OOO,0OO tons Of coal, a
large amount Of fluxing material and
large quantities Of all the other ele-
ments needed for the manufacture of
steel.
The witness described HIS visit to-
Lewis Cass Ledyard, mentioned as
being the man who first suggested the
merger of the Tennessee Coal & Iron
company and the United States Steel
corporation. Mr.. Schley said Ledyard
was not his attorney, but was the
friend of ]. Pierpont Morgan. The
proposition made to Mr.. Ledyard was
that he should go to Mr. Morgan and
suggest that the steel corporation buy
the stock of the Tennessee Coal &
Iron company on the basis of par and
cash. Mr.. Schley said Messrs Prick
and Gary called on him and the deal
developed and was known to the pub
lie in manner which brought some
relief He said:
81 can't tell what would have hap
pened to Moore & Schley or to any
body else in the street, because we
were oppressed by rumors, some of
them untrue, but Moore & Schley was
the subject of attack-serious attack
and their credit, which is the life
of the business, was being destroyed.
II was a matter of serious import 1t
had to be disposed of If it could. /
don't mean for Moore & Schley, but
for people about them, others inter-
ested, not those particular individuals
of great wealth"
In response to questions by Senator
Dillingham;, Mr.. Schley said the eff
feet of the purchase was to relieve OF
the situation most decidedly, rot only |
with Moore & Schley, but with every
body about. The witness gave a
graphic description of the panicky
days and told of the calls made upon
his firri, which he said amounted tc
$7,O0O.GCO in three days, and he de-
clared thit nobody could pay all that
money at once"
The first dividend of the failed First
National bank Of Fort Scott, Kan,
amounting to IS per cent. has been
paid to depositors.
The Woods Opera House block, to-
gether with the National Bank Of Com.
merce at wellington, Kan, burned re-
Gently causing 4 loss Of. $4,000.
Mr.. Root Was Lost.
Hot Springs, Ark. Feb. Bills I'M
familiarity with the topography Of the
mountains about Hot Springs cost
senator-elect Root tramp Of six
miles Tuesday. Starting out alone for
4 brief stroll Mr.. Root lost his way