Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-07-30
STEEL TRUST ALOOF
Was Not Anxious to Take
Over Tennessee Company.
MORGAN DID NOT URGE 1T
Prompted Solely by Seriousness of
the Situation.
LEDYARD CONTINUES STORY
Tells Why Gary and Prick Came to
Washington to See Presi-
dent Roosevelt.
MORGAN DID NOT URGE II

NEW YORK, July 29-Lewis Cass
Ledyard. who was the attorney for
Oliver Payne and the Tennessee Coal
and Iron Company syndicate in 1907
when the merger of that corporation
with the United States Steel Corpora
ton was effected told today to the
committee of the House Of Representa-
tives, which is inquiring into the af-
fairs of the steel trust, that he was
the man who first suggested the trans
action to j. Pierpont Morgan
Mr.. Ledyard said Mr.. Payne was the
first to suggest that the United States
Steel Corporation take over the Ten
nesSee company in order to avert the
failure of the BROKERAGE firm of Moore
Schley and that Mr.. Payne asked
MIN to see Mr. Morgan. acquaint him
with the grievous situation resulting
from Moore & Schley's loans on Ten
nessee stock as collateral and urge
him to seek relief from the steel cor
pOratiOn.
Morgan Made a Loan.
Mr.. Ledyard incidentally surprised
the members of the House committee
when in enumerating the loans of
Moore & Schley at that time, he stated
that Mr.. Morgan's firm had loaned the
brokerage firm money on Tennessee
collateral-a loan, however, that the
firm did not call
limitations of conspiracy on the
part Of the Morgan firm or the steel
corporation to diScredit Tennessee Coal
and Iron stock so that the steel cor
poration could take it over easily
were denounced by Mr. I,edyard as
outrageous falsehoods." and he vehe-
mently declared that the absorption of
tne tennessee was a providential and
nenehclal act on the part of the United
states Steel Corporation. Mr.. Ledyard
said that the transaction, in his opin-
ion, was not illegal. and he lauded the
act of Judge Ebert H. Gary and
Henry c. Frick in going before the
then President Roosevelt and acquaint-
ing MIN with the facts regarding the
merger before 1T was effected
Perkins to Be Witness.
The steel inquiry will be continued here
next week, the hearings to be resumed
tuesday. A subcommittee will meet
Monday to plan the procedure and George
W. Perkins is expected to be called as
witness before many days
went into another room," Mr. Led
yard said. telling Of the conference at
Mr.. Morgan's house, while MIR. Morgan,
ence. l do not know what was said
there. | do know, however, that Judge
Gary expressed great reluctance in TAX
ing over the Tennessee Coal and Iron
Company. He did not think it was
necessary and / recalled that he offered
to loan Moore & Schley 5000, 900. That.
he was told by Mr.. Schley, would be
useless.
The firm, Mr.. Ledyard explained, had
many other loans which the banks were
nervous about.
The witness related in detail the deveI-
opments which followed the final agree
ment and the trip of Judge Gary and
III. {. Frick to Washington to see Presi-
dent Roosevelt.
Prick Also Was Reluctant.
Just before the judge and Mr.. Prick
left Mr.. Morgans house." said Mr. Led
yard, Mr.. Frick came to me and said:
I don't think that we ought to put
this transaction through unless the sit
uation can be entirely saved He
meant that the deal should include some
assurances to take care of various trust
not see how that could be done. 1 was
with Mr.. Morgan all that night talking
the situation over. He told me to
come back the next day and late that
day We heard over the telephone that
Mr.. Gary had learned from the govern
ment that there would be no objection
to the DEAL
questions relating to the transaction
particularly with reference to the origin
of the trouble whether it was caused
by speculation in Tennessee Coal and
Iron syndicate or free stocks.
Il want to find out in this transac-
tion," Mr.. Littleton said, whether it
was case of the tail wagging the