The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-08-12
Thorne Ia kes Is sue
With Perkins as to
Panic of 1907.
STORY IN PAPER
is CAUSE OF RUN
President of Trust Company of
America Says Statement Given
Out by Perkins Was Solely
Responsible for Threat
ened Wrecking of
Institution.

Washington. August li.-oakleigh
fhorne. president OF the New York
Trust Company Of America, which b.
came involved in the financial panic
of 1907. the affairs OF which nave
been linked with the taking over of
the Tennessee Coal and Iron Company
by the United States Steel Corpora
ton in that crisis, followed Guolge
w. Perkins to-day as witness be
fore the House committee of inquiry
into the affairs of the steel corpora
ton.
Mr.. Thorne torc!biy declared. cor.
trary to the testimony given By Mr..
Perkins and many other WITNESSES
that the Trust Company of Ameri:a
was not the chief sore point" OF trou-
BILE at the time 1t was necessary to
save tho brokerage firm of Moore e
schley.
Differs With Perkins.
He surprised the committee with
declarations that he was certain un
due attention had been directed to-
ward his company in that crisis. and
he denied any knowledge of the agree
ment testified TO by George W. Per
kins. that the taking over OF the Ten
nessee Coal and Iron Company by
the steel corporation to save Moore &
schley from ruin. was dependent upon
the bankern OF New York raising
money to save the other horn OF the
dilemma. the Trust Company OF Amer
lea and tho Lincoln Trust Company.
Mr. Thorne was examined In rela-
ton to a public statement given to
the press October %, 1907. and attri-
buted to Mr.. Perkins. in which II was
declared that the chief sore point
OF the panic was the Trust Company
of America He, declared that m
med!ately following this a run on his
bank occurred and that the run n
one day took out sl3,5o0,ooo For
this, he admitted he had consulted
counsel as to the advisabiiity OF su-
ing for damages persons he felt re-
sponsible, but that he was deferred
by the necessity of seeking more
rncney from the bankers OF New York
In order TO prevent the collapse OF MS
institution.
That his financial troubles were IN
any way involved in the difficulties OF
Moore & schley at that time he en-
pha,ically denied. and further de-
clared that Tennessee Coal and Iron
stocks held on collateral for the
banks loans amounted 10 nothins IN
that situation.
Advocates Publicity.
Before MT. Thorne took the stand
Mr.. Perkins had spent several hours
advocating the establishment OF
government commission to focus the
limelight of PUBLICITY on corporations
as one means OF preventing trust
evils
Representative Littieton conducted
the examination of Mr.. Thorne. who
hrst outlined the history OF the trust
Company of America. He said that
before the panic OF 1907 his company
had assets OF $74,0o0.00 He ex-
planned that he had been a member
OF the Tennessee Coal and Iron syn
dictate, and that his bank had made
loans to Moore & Schley which had
been paid. AS far as Tennessee Coal
and Iron stock was involved in col
lateral Cd loans OF his bank it was
nominal and amounted to something
over 100000.
"Dtd you have anything to do with
the absorption OF the Tennessee Coal
and Iron Company by the United
States Steel Corporation In 1902" Mr.
Littleton asked.
Absolutely nothing" said Mr..
Thorne. II knew nothing about it
until met Mr.. Ledyard on Sunday.
November 8, anG he told me they
were trying to put the deal through.
heard no more about it until after
1t was all over"
Mr.. Littleton asked the witness Il,
prior to the panic, he had heard any
criticisms of the kind of business the
Trust Company of America was do
ing. whether 1t was different from
that of other trust companies He
said he had not. and that the bank
examiners were in touch with the
business constantly. He said the com
pany was supposed to be progressive
and aggressive for business
Mr.. Littleton referred to the failure
of the Knickerbocker Trust Company
on October %. 1907. and asked about
the condition of the Trust Company
of America on that day.
I'VE had s12,ooo.Ooo on hand
what We're your Withdrawals on
the 22d and 23d of that month";"
"On October % the Withdrawals were
s1,5oo.o0o." Mr.. Thorne replied "on
the Esd before closing time the with
drawals were s13.500.o0o."
He explained that on the night Of
the 22d Mr.. Perkins and Mr.. Davidson.
of J. P. Morgan & Company. had called
at the Trust Company of America to
look into the condition of the bank.
Pleased With Conditions.
'They examined thoroughly and an
nounced they were pleased to find tho
conditions as good as they were." he
said. Later a committee from the
clearing house examined all the secu-
rifles. Mr.. Thorne said he told Mr.
Perkins and Mr.. Davidson the exact
condition. and that he had $4,000, 600
on hand that night.
On the morning Of October % there
appeared an article in the New York
Times In which the Trust Company of
America was pointed out as the "chief
sore point" and details were given of
a midnight conference of bankers ct
the Manhattan Hotel with Secretary
IContinued ON Fifth PagaN -