The Birmingham age-herald., 1911-07-30
Steel Committee Resumes Investigation of T. c. I.
 Acquisition ]
ATTACKS ON MERGER
 INFAMOUS OUTRAGE
Asserts Morgan Loaned Large Sum to Moore and Schley Just Before Merger Took Place-Payne
 Originated the Idea

company syndicate in 1907, when the mer- ger of that corporation with the United etskes Steel corporation was effected, told today to the committee of the House of Representatives inquiring into the af- fairs of the Steel trust, that he was the man who first suggested the transaction 10 J. P. Morgan.
 MT. Ledyard said MT. Payne was the first to suggest that the United States Steel corporation take over the Tennessee company in order to avert the failure or fhe brokerage firm of Moore & Schley, and that MT. Payne asked him to see MT. Morgan and acquaint him with the griev- ous situation resulting from Moore & schley's loans on Tennessee stock as col lateral and urge him to seek relief from the Steel corporation.
 Mr. Ledyard incidentally surprised the members of the House committee when, in enumerating the loans of Moore &s Schley at that time, he stated that MT. Morgan's firm had loaned the brokerage firm money on Tennessee collateral. a loan, however, that the firm did not call
 Intimations of a conspiracy on the part of the Morgan firm or the Steel corpora tion to discredit Tennessee Coal and Iron stock so that the Steel corporation could take it over easily were denounced by Mr. Ledyard as outrageous falsehoods.' and he vehemently declared that the ab- sorption of the Tennessee company was a. proyidentiaI and beneficial act on the .,-.a, ss-s,ss ss,ss.the united States Steel eorpora- f-fa,-l f1 tt,, b,s o,;nian not illegal, and he laud- .d t,,s qge Ebert H. Gary and 1Ian,,, going before the then pras,sos. It and acquainting him pyith tta ,auoseVesrding the merger be- lore 1t was effects
 rs ,.'.-..-- III be continued here
 me steer inquiry wngs To be resumed Tuesdavs .'e .. nssrsSsnittee will. meet Monday to plan the procedure, and Geo%h. W. Perkins is expected to be called as a witness before many days
 Representative Littleton asked Mir Led yard about the nature Of Moore & Schley's loan. He said:
 ''rhe firm of J. P. Morgan & Co had loaned the firm a considerable sum-
 Was it secured by Tennessee Coal and Iron stock?'' asked MT. Littleton.
 Yes, 1t was, but the Morgan firm had never bothered Moore & Schley and did not call the loan."
 Mr. Littleton asked the witness many questions as to the origin of the trouble Of Moore & Schley, whether it was caused hy speculation in Tennessee Coal and Iron syndicate or free stocks. q want to find out In this transactiton,' MT. Little ton said, whether it was a case of the tail WasGirlg the doen
 MT. Idttle.' said MT. Ledyard, slam ming the table with his open hand, it was neither a. case of tail wagging tho dog nor of the dog wagging the tail. It was the effort of Moore & Schley and their friends to save themselves from ruin the only possible way they could do it. That is all there was to it."
 The first I knew about this trouble was during the last week of October 1s07,' Mir. Ledyard said. MT. Payne came to me and told me Moore & Schey were likely to get into deep trouble: that the banks had called on them for substi- tution of collateral for the Tennessee Coal and Iron stock. He said the reason was that Tennessee stock was peg stock and he could not see any way to save the rituation unless the United States Steel corporation acquired the Tennessee com pany. Mir. Payne suggested it would be well for me to see MT. Morgan and ask him to put the proposition to take over the Tennessee company up to the United States Steel corporation. That did,
 Were in Trouble
 Mir. Ledyard continued that Moore & Echley were in trouble, not on account of loans on the Tennessee stock, but of other securities which were not regarded as entirely safe at the time. He said he had gone to Er. Schley immediately after Mir Payne hiN spoken of the condition of affairs and then went to see MT. Morgan
 "I think I went to Mir. Morgan's house Saturday night and told him what was going on," said Mir. Ledyard MT. Morgan expressed great concern Mir. Morgan declared 1t would be seri- ous to let Moore and Schley go, and after I suggested the United States Steel corporation be called in. he said that we should get Judge Gary and Mr Prick. Mir Gary came right over to MT. Morgan's house Later Mir. Prick came and the wh ole situation was made known. Nj 8s9
 T went into another roon," Mir Ledyard continued. while Mir. Mor- gan. MT. Gary and Mir. Prick talked Judge Gary expressed great reluctance in taking over the Tennessee Coal and was necessary. and I recall that he of fered to loan Moore and Schley $5.- 900 000 That, he was told by Mr. Schley, would be perfectly useless"
 The firm, MT. Ledyard explained, had many other loans which the banks were nervous about
 The witness related in detail the de- velopments which followed the final agreement and the trip of Judge Gary and H. c. Prick to Washington to see President Roosevelt
 Following his statement about the Morgan loan, MT. Ledyard denounced the differences that have been made concerning a conspiracy in the Ten nessee transaction.
 Infamous Outrage
 There never was a more infamous outrage than the suggestion that has been made that either MT. Morgan or the United States Steel corpora tion brought about. engineered OF inspired an attack on the Tennessee Coal and Iron company Such a thing Is abso- lutely false"
 MT Ledyard continued: If the ad . ministration is going to see fit to at- tack corpora tions when they seek to do a meritorious and useful thing such as the steel corporation did in this ease, can see no reason why the cor pora should no, go to the gov ~ St~~~~~~~~.~~~~
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