New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-10-27

lent of so cents on the dollar. and after
ward 75 cents on the dollar In cash for
| the stock. which Schley declined. OAK
leigh Thorne, who was president or the
Trust Company Of America, New YORK
institution, was one Of the syndicate
that purchased the majority OF the stock
Of the Tennessee company. having SUBJ
scribed for 1880 shares.
"In a New York paper of October 20
appeared a statement headed Aid Trust
Company of America Among other
things it said that at meeting the
night before Of the chief bankers OF the
city, headed by J. p. Morgan & Co. u
was formally decided that the point then
needing buttressing was the Trust COM
rany of America, and that this deter
mination was announced after Mr. FER
kins 0meaning George w. Perkins OF D.
+. Morgan & Coz had been in CONFER
ence subsequent to said gathering OF
bankers. part of the article SUD-
headed The Oficial Statement SAID:
The chief sore point is the Trust Com
pany Of America
Helped Cause Trust Company Rum
after expressing confidence IN the
condition OF the company and statine
that il would be aided and that cash
had been guaranteed therefor II was
stated that these steps were taken Tor
| the purpose of announcing that the COM
pany would be taken care OF II an ex-
animation into its affairs. which had
been authorized, showed conditions TO
he as sound as there was every reason
to believe them to he. This announce
ment helped materially to cause a run
on the said trust company. and aggra-
waited the general uneasy condition, and
made the position Of Moore & Schley
more desperate. 1t was generally known
that Thorne and Schley were members
| Of tie Tennessee syndicate.
Regardless of the intent in giving out
the statement-and the facts are no,
sufficiently known TO make any charge
| in this regard-the fact is that IL con-
tributed directly and strongly toward
bringing Moore & Schley to a point of
imminent failure, although they were
amply solvent Their condition had be-
come desperate. il being generally re-
| garded by bankers and financiers that
their failure might precipitate a general
crisis. they, ]. p. Morgan & Co, taking
the lead, exerted themselves by ad-
vances OF ready money to meet pressing
demands and otherwise TO prevent their
| suspension. Much of the effort how
ever. revolved about the proposition for
the corporation to acquire the stock OF
the Tennessee company. Nothing less
than the control OF the Tennessee COM
pany was considered by the corporation
and negotiations progressed rapidly and
steadily TO that end, it being represented
to Schley that in no other way could re-
lief be brought TO him.
There was fear upon the part OF the
corporation that when the movement
became publicly known. the government
might take steps TO prevent its consum-
nation. In view CT this, E. n. Gary
the chairman of the executive commit
tee of the corporation and II. c. Prick
director. went to Washington, reach
Ing there Sunday morning. November 4
10 see the President, having previously
made an appointment. Without fully
disclosing all the facts in regard TO the
Tennessee stock, its ownership the
amount of money estimated as neces-
sary TO relieve Moore & Schlev and the
arrangements that had already been
D.. made to relieve the Trust Company OF
America, they represented to the Presi-
dent that the only thing that would pre-
vent vicious spread of the panic was
for the corporation TO acquire the stock
OF the Tennessee company.