Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1909-01-30
Senate Committee on Judiciary
Now investigating This Cele-
brated Transaction.
WHY COURSE WAS ADOPTED.
Geo. W Perkins Of ). =. Morgan q
90. said IL Was Thought Would DO
Much TO Prevent Failures.

washington. Jan, 29.-The merger OF
tae tennessee Coal n Iron company
and the United states steel corporation
was Investigated by the, senate COM
muec ON judiciary today.
Thc witnesses were Oakleigh Thorne
,rs..dent OF the Trust Company OF
America. and George w. Perkins OF j..
p Morgan & Co, which IS also a mern-
her of the finance committee OF tho
steel corporation.
80 efforts have been made by the
,ommitte TO subpoena Judge Gary and
H. O. Frick.
Tho examination Of both witnesses
today was conducted by Senator Gull
bers1n
Nr Thorne testified that the Trust
C6nuauy OF America has no interest in
a.. tock OF the Tennessee Coal & Iron
company as owner but on Nov I, 1907,
+. md loaned SiS2 100 20 six individuals,
holding the stock al 90 as collateral.
AN of these loans, said Mr. Thorne.
wore paid off in November. with the
.rccption OF two So, 900 each
AIR. ThOruc said that he considered
tg. security for the loans Co be good,
and that his company had no interest
.r the absorption Of the Tennessee
company by the steel corporation, ana
do not know OF the negotiations until
after they We're begun.
Senator Culberson then inquired ~
~ Thorne whether be had knowl-
cs-e of syndicate which owned the
controlling interest in the Tennessee
Coal a. Iron company in the fan OF
1904. He replied that he had, and that
d. was a member OF that syndicate, but
Doe had Withdrawn from the syndicate
and was not familiar with the syndi-
Gates operations. The original syudi-
cate managers were given as Grant 3.
slhIcy and Charles Guthrie.
Leonard Hanna of Cleveland took the
place of Mr.. Guthrie after the latter's
J.rtn This syndicate declared Mr.
rrarne. owned a majority OF the stock
of Che Tennessee company
DELIVERED STOCK TO MORGAN.
In addition MT Thorne mentioned
T0aa W. Gates. b. j. Berwin and h. ).
Black when asked 10 be had any per-
sa.gI knowledge OF the actual sale OF a
majority of the stock of the Tennessee
company iu November. 1907, Mr. Thore
replied:
Fan that 1 know is that I delivered
MN STOCK TO j. r. Morgan q ANat anu
alt o. receipt for It,"
senator overman asked Mr. Thorne
Hai the time Of the merger the Trust
Company ~ America was financially
embarrassed, and III SO, whether the
rg.r had a tendency 20 relieve II.
be REPLIED that IL had no direct bear
ing 0n either himself or the company.
40 tine time the syndicate TO control
the Tennessee Coal q Iron company
rls formed. said Mr. Thorue. the syn
lc9ta price was $40 a share, but is
market price was 500 and il went up
% $685.
Dir. Thorne testified that when the
Tennessee company's stock was sur
rendered the owners received In return
United states steel 8 per cnt bonds on
tde bases Of Sllg par value for each
share of the stock of the Tennessee
company The steel corporation bonds
were quoted By Mr. Thorne AS being
worth from $50 20 SS4 az the time he
received Them and being worth now
between &lo2 and Sl03
PERKINS TESTIMONY.
When Mr., Perkins took the stand he
said
"The acquisition OF the Tennessee
Coal & Iron company by the United
States Steel corporation was never
brought up or preached In any way, as
far AS my knowledge goes, until per-
haps the second or third acute stage
of the panic developed In New YORK
and then 70 came up very suddenly
because OF the series OF disturbances
that existed IN New York as result Of
the great depreciation in market VAL
ues and the unmarkctability Of a
great many securities
Mr. Perkins said that there was a
general feeling which il would be DIFF
fcut Tor any one 10 express IN con-
crete statement. that If the Tennessee
Coal & Iron stocks were taken out OF
various loans, I'M some way Il would
prevent a great many failures ana
avert a spread OF the panic. Continu-
lng ho said.
Finally some one made a sugges-
ton, which afterwards worked out
that the corporation might furnish 5
per cent second mortgage bonds In