The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-08-12

HIS COMPANY NOT
CHIEF SORE POINT
CONTINUED From First Page.)
cortelyou. Mr.. Morgan. Mr.. Perkins
and others where plans were made to
save the Trust Company OF America.
Mr.. Thorne said he was not invited
to that conference, and knew nothing
about It. He testified that when his
bank opened at 10 o'clock the next
day there was big run on the bank.
and that the bank paid out s13, 100000.
In order to tide the situation over that
day Mr.. Thorne said he went to j. p.
Morgans office. whose company. to-
gether with the First National Bank
and the National City Bank. loaned
him 100000. The same afternoon
Mr.. Thorne said. he obtained sl.o00,006
from the Hanover National Bank,(
which tided the situation over until
closing hours.
He explained how that afternoon
MIR. Morgan had called the trust COM
pany presidents OF New York to meet
at the Union Trust Company and he
was called in. He met there Morgan.
stillman, Woodward. King and other
bankers.
How Loan WINS Mnde.
The situation was discussed and an
arrangement made to loan him $780,
100000 on S2O.O00,OoO of securities.
which the committee OF the bankers
was to select. a contract was made
for this loan. the original of which MIR.
Thorne submitted for the record. The
following morning he received $4,000
900 of this loan and the remainder In
various sums UP to October 81.
He reviewed another loan of $751;
900. 600 for S30,000.000 OF securities adj
vanced by the bankers November 8.
but paid to him in various amounts
from time to time. He explained he
never knew where the money actually
came from. and that Mr.. Morgan Mr..
Perkins and others who were raising
1t had great difficulty in getting it.
Mr.. Thorne also told how he began
paying back the loans as rapidly as
the trust company's securities could
be realized on. Some were paid be-
fore the end of that October. and all
the loans were CLEARED up by the fol-
lowing August and the securities re-
turned. AT the present time, he said,
the trust company has assets of S43.-
100000.
Dir. Littieton had put in the record
statement given TO the press by
Mr. Thorne on November 6, in which
he alluded TO his utter Amusement"
that the chief force OF the panic had
been directed against the Trust Conf
pany of America. a run unpreced-
ented in the history of American
banking"
The statement printed in the Times
was again called to his attention. and
Mr. Thorne was asked If he had made
any reply TO it.
NO. at that time l was too much
Interested in trying to get money. not
to make arguments" he said. He add
ed that many persons had told him
that they believed the newspaper arti-
Giles had precipitated the run on the
company.
Conferred With stone.
Mr. L:ttleton asked the witness if
he mad conferred during that time with
Melville E. Stone. general manager of
the Associated Press. He said that he
had.
II had never known Mr.. Stone until
the time of that panic" Mr.. Thorne
stated. II met him then and went TO
see him practically every day. l in
sisted that the Trust Company of
America was solvent and that the
examiners who looked into the condi-
ton OF the company should make re-
port. 1t was my Idea IL the report
showed the company solvent we would
be taken care Of"
Were you endeavoring to have
knowledge of your condition wide
spread?"
My idea In talking to Mr.. Stone was
to urge the necessity OF the examining
committee making q report to Mr.. Nor
gan. knew If the truth of the stu
alton got to Mr.. Morgan we would get
help. When later he did get the truth
we got the s15,000.000."
Asked If he had received a commu-
nicaticn from Mr.. Stone regarding that
matter, MIR. Thorne said he had. and he
produced it. 1t was read into the rec
ord. written under date of November
IS. 1907. In the letter Mr. Stone said
IT have no doubt that Mr.. Perkins.s
statement on the night of the 22d dis
tinctly emphasized the run on the
Trust Company of America, If, indeed
it did not preciptate 1t. I don't mean
by this that I think there was the
slightest purpose on the part OF Mr.
Perkins to injure you or the Trust
Company OF America. But we felt that
the statement was so injudicious that
we did not send it out Later. when
said to Mr.. Perkins that 1 thought /,
was very hurtful. he justified it on the
ground that the condition was sc
strained that IL public attention had
not been centred upon the Knicker.
booker Trust and the Trust Company
Of America, every bank in New York
probably would have been involved.
think the whole thing was a mistake
most unfortunate mistake. for which
you had to pay heavy penalty, but
do not for moment imagine that there
was any malice involved in it"