Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-08-12
About Taking Over Of Ten
nessee Coal and Iron
Told byPres. ThoIne oiihe Trust
Co, OF America.
Hun on Bank Caused Largely By
Aclion of the Trust.

| Ahoi NJ pitSlueHt OF the trust Conn
pany Of America of New York. which
became involved in the panic of 1907,
ano was connected with the taking
| over Of the Tennessee Coal and Iron
Go. by the United States Steel Coz :
poration a that crisis. followed George
| W. Perkins today as q witness before
the House committee of inquiry into
the affairs of the Steel Corporation.
Mr.. Thornc foreibly declared. CON
| trlry to the testimony of Mr. Perkins
and many other witnesses. that the
| Trust Company of America was not
| the chief sore point at the time it
| WIS necessary To save the brokerage
| firm Of Moore q Schlev.
| lie surprised the committee by state
| nents that undue attention had been
| directed toward his companys part
! in the panic and he denied any knowl-
| edge Of the agreement testified to by
| Nh. Perkins, that the absorption OF
| the Tennessee Coal and Iron Co. by
| the steel Corporation to save Moore
| q Schley from ruin, was dependent
| upon the bankers OF New York taking
| the other horn of the dilemma and
| raising money for the Trust Company
| OF america and the Lincoln Trust Co
! Mr.. Thorne was closely examined
| relating to a public statement given
to the press Oct %. 1go7. and attrb-
uted to Mr.. Perkins, in which it was
| said that the chief sore point of the
| panic was the Trust Company of
| America. He said that Immediately
| after this run on his bank occurred
| an that in one day depositors took
| out $l3. 500, 600. He admitted he had
consulted counsel as to the advisa :
| biiity of suing persons he felt respon-
| sihle. hut that he was deferred by the
| necessity of seeking more money from
| the bankers of New York to prevent
| collapse of his institution
| That his financial troubles were in
| any way involved in the difficulties of
| Moore & Sehley at that time he en-
| phatiCalIy denied and he further said
| that Tennessee Coal and Iron stock
| held on collateral for the banks loans
| amounted 20 nothing in that situation
| Before Mr. Thorne took the stand
+ Mir Perkins had spent several hours
| advocating the establishment of
| government commission to focus the
| limelight of publicity on corporations
as one means of preventing trust evils
| Rep Martin w. Littleton conducted
the examination of Mr., Thorne. He
said that before the panic of 1907 his
company had assets of $4,000 090 H
explained that he was a member of
| the Tennessee Coal 81 Iron Syndicate
and that his bank made loans to Moore
e. Sehley which were paid So far as
| Tennessee Coal and Iron stock was
involved in collateral on loans by his
bank It was nominal and amounted 20
something over 100000
Did YOU have anything to do with
| the absorption OF the Tennessee Coal
& Iron Co. by the United States Steel
Corporation in 1902" Mr.. Littleton
asked.
Absolutely nothing" said Mr..
Thorne
Mr. Littleton referred to the failure
| OF the Knickerbocker Trust Co, Oh
oct %. 1907, and asked about the con-
dition of the Trust Company of Ameri-
ca on that day
We had $12,000.000 in hand"
What were your Withdrawals or
| The 22d and 2Sd of that month";"
e0n Get. - the Withdrawals were
$1,5oo,000," Mr. Thorne replied. "On
| drawals We're $4,000. 900"
lie explained that on the night Of
| he 22d, Mr.. Perkins and Mr.. David :
son, of J r Morgan & Co. called AZ
the Trust Company of America to look
| into the condition of the bank.
They examined il thoroughly and
announced they were pleased to find
the conditions as good as they were"
, he said.
Later a committee of the Clearing
House examined all the securities. Mr.
Ihorne said he told Mr. Perkins and
Mr.. Davidson the exact condition and
that he had 12,o00 600 on hand that
night.
! On the morning of oct %. there
| appeared an article in the New York
Times in which the Trust CO. of
America was pointed out as the Chief
sore point" and details We're given OF
a midnight conference at the Manhat-
tan hotel participated in by Sec. Cor
telyou. Mr. Morgan. Mr.. Perkins and
others where plans were made to save
the Trust Company of America.
Did YOU know anything about that
conference that night. or were you in
vited to attend it," Mr.. Littleton ask
ed,
4 knew nothing about it. and was
not invited"
| Did YOU call for help the next day %
Yes. we had to get cash to save the
| situation, Mr. Thorne announced. Il
went to MIR Morgans Office and saw
Mr. Morgan. Mr.. Perkins, Mr. Stilman
and Mr., Davidson there | told them |
had to have money. SO far as | know
the examining committee had not
made any report to Mr. Morgan"
one million dollars, Mr.. Thorne said.
was loaned him by j. p. Morgan 4.
Co, the First National Bank and the
National City Bank. Mr.. Thorne add
ed that he obtained 81 800, 900 that af-
ternoon from the Hanover National
Bank which tided the situation over
until closing hours. He explained that
that afternoon Mr.. Morgan had called
the trust company presidents of New
York to meet at the Union Trust Co,
and he was called in, He met there
Messrs. Stillman, Woodward and King
and thor k9 nlynrS