The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-05-28

that advances were made to the United
States Steel corporation TO purchase
ms stock In order to avert a panic.
What do you know about that?'
Not Dollar Changed Hands.
q In the exchange of this stock, - Mr..
Gates replied, "not dollar changed
hands. No bank gained any assets by
it, -
did any member of firm or bank
make proposition TO the United
States Steel corporation TO accept the
Tennessee Coal g. Iron company as n
comparatively worthless property?'
who flew the signal of distress?'
''There are a great MANY under
ground wires in New York. - Mr.. Gates
replied, ''T was told that certain
bank in November, 1907, applied to the
clearing house for assistance. \ COM
mittee was appointed to examine its
assets. They discovered several mil
lions of the banks funds ott on stock
of the Tennessee Coal & Iron com
pany. They reported TO the clearing
house that too much had been loaned
on Tennessee Coal and Iron collateral
Stock brokers told me that as result
of this investigation a gentleman was
invited to Mr.. Morgan s house Mr..
Morgan suggested to him that to re-
lieve the situation the United States
Steel corporation might acquire the
Tennessee Coal g. Iron company That
led up 10 the negotiations afterward
concluded -
Mr.. Stanley wanted to know if Mr..
Morgan and others had ever tried 10
acquire the Tennessee company. before
with "A view of securing a monopoly,
Mr. Gates said he could not tell what
was in the minds Of the purchasers.
He outlined at length the sale of
stock to the United States Steel cor
poration He said that in 1904 or 1905
during his absence in Texas a syndicate
was formed, managed by Grant B.
Schlev and Charles S. Guthrie, then
president of the Republic Iron & Steel
company, which purchased the stock of
the Tennessee Coal & Iron company.
He related how Mr. Guthrie died soon
aftcrward and S. G. Hanna, brother
of former Senator Hanna, had been
appointed associate manager.
Heard the News Aboard Ship.
"In July. 1907 said Mr.. Gates, 81
sailed for Europe. I returned in No
vember, 1907. and on the ship I bought
paper and read that the stock of the
Tennessee Coal 6 Iron company had
been sold to the United States Steel
corporation. The panic was on then.
I met Mr.. Schley at his office AS soon as
| reached New York and found negoti-
ations on between Mr.. Schley, Mr..
Hanna and their associates and Judge
Gary. Mr.. Frick and Mr.. Morgan.
The latter were then in conference at
Morgan s house trying to acquire the
Tennessee Coal G. Iron stock The
terms proposed were that for each ten
shares of Tennessee Coal G. Iron stock
we were to get one United States Steel
second hves mortgage bonds. ] said it
was not enough and held out until we
made trade on the basis of 1l9M
in United States Steel sinking fund
5s. The next day | insisted that the
minority stockholders he given the
same terms, and the deal was made. -
"Mr. Schlev,' suggested Mr. Stan
icy. "has declared that the sale of
the Tennessee Coal 6 Iron company
was forced sale. Do YOU so con
| slider it9''
81 regarded it as forced sale, -
! said Mr.. Gates.
"What financial power forced it7'
"Well. as I have said, ] surmised
! it was the finding Of too much Ten
nessee Coal & Iron stock as collateral
in one of the banks''
"'Did Mr Morgan have decided in
| fluence over this bankH' persisted Mr.
| Stanley.
"I do not know - said Mr. Gates.
"'It is difficult TO tell where man IS
| influence starts or ends in Wall
street -
Mr. Gates said that the bank in
question. the Trust Company OF Amer
lea, wanted $10,G00,000, "and.' he
added, ''they got it,