Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-07-29
Maine Purpose Was 10 Develop
Great Mineral Resources.
Order from Hartman Tor $4,000
Tons Of Steel Rails.
Loan Of 100000 by the United
States Steel Corporation.

New York. July 28.--That the fnarc-
ing of the Tennessee Coal & Iron Com
pany syndicate in 1905 did not cost as
much as a postage stamp was the
declaration made today by l.. c. Hanna,
of Cleveland, Ohio before the Stanley
Steel Trust investigating committee.
Mr.. Hanna, who was a manager OF that
syndicate before the company was alb
sorbed by the United States Steel Cor
poration in 1907, also testified that the
main purpose of the men who took
over the Tennessee Company in COM
petition with the steel corporation was
to develop the great mineral resources
rather than the mechanical equipment
of the property.
When the syndicate was formed the
iron ore deposits were estimated at
from four to five hundred million
TONS" said Mr.. Hanna. THE coal de-
posits were estimated at 1000 million
TONS"
Your idea was to develop those ores.
was it2"
The controlling influence in the or
ganization of the company" said Mr..
Hanna. was the value of the ore"
In the organization of that syndi-
cate" said Mr. Stanley. did you en-
ploy Mr.. Morgan or any other financial
syndicate to float your bonds?"
The financing of the Tennessee
Company did not cost us the price of
postage stamp" said Mr.. Hanna.
There were no bankers employed"
WAS there any provision in your
charter by which you could buy and
sell your stock and keep 1t steady on
the market"
There was not"
The witness described the character
OF open hearts ore of Alabama as diff
ferentiated from the Bessemer ore con-
trolled by the Steel Corporation, and
he declared that the American Com
pany made good open heart rails and
had a good market.
Did you ever get an order for steel
rails from Mr.. Hartman" asked the
chairman.
yes" Mr.. Hanna replied. 'Mr.
| Hartman gave us an order for Isl. 500
| tons of steel rails"
| How long was II after Hartman
gave you this order?" asked Mr.. STAN
! ley, till you learned that your COM
pany was in trouble In Wall street,"
] l don't remember exactly, but think
it was several months"
| You didn't buy the property to sell
1t at the opportune time?"
| NO"
L have repeatedly heard it stated
| that the syndicate took hold of that
| property in order to unload it,
There certainly was no such pur-
pose in our minds" said Mr.. Hanna.
Mr. Hanna said he did not expect to
become competitor of the steel cor
poration. north of the Ohio river.
South of the Ohio river We had a
good trade and expected to increase It."
The witness then described how the
stock of the syndicate had been placed
III the hands of the managers with an
agreement that it should not be sold
below par. the agreement which John
w. Getes explained to the committee
| some time before.
The purpose was to prevent the sale
| of the stock, witness said
When did you first learn that the
| syndicate was in danger of losing con-
| troll of the Tennessee Company"
| "On Sunday morning before the sale.
| nv. Schley called me on the telephone"
| AT the time of the sale of the Ten
| nessee to the United States Steel Cor
/
| poration Mr.. Hanna declared that the
| Tennessee Company was IN good A.
nancinl condition and die not need 10
sell and that the sale was necessary to
! avoid the failure of Moore &c Schley
and threatened spread of ruinous
| panic.
| In the transfer the witness admitted
| that not a dollar changed hands. the
| transaction being executed by the ex-
change of stock. The effects OF the trans
fer. he felt assured. saved the day ana
| was the turning point for the better In
! the panic
1 A former loan of 100000 by the Unit
| ed States Steel Corporation TO Grant B.
| Schely also was reviewed.
| Mr.. Hanna related the story OF the con-
ference held in J. Pierpont Mofgan's u
| CONTINUED On Page Seven)