Arizona republican., 1911-06-03

Was ldhlnS tennessee Coal & Iron on the basis of sixty
 THEN CAME THE PANIC. i Alr. Gary submitted this loan agree ment to the committee About Novem-
 Der ,, 1907, amid a financial panic, the
 matter came up again. The Trust Company of America was in difficult i ties. John ". Gates testified last week that this bank was responsible ! for Morgans efforts to sell the Ten nessee company to the Steel corpora ton in order to save the trust com pany, which had loaned too heavily on the Tennessee stocks.
 MT. Gary referred then to the poss,-
 bility then of a suspension of many
 banks and the failure of many per sons. He told of the conference with Morgan, Lewis Cass Ledyard, counsel for Colonel Oliver Payne of the syn dicate that purchased the controlling interest in the Tenenssee company NIT. Gary said Ledyard told him that Moore & Schley were largely indebt- ed to Payne and had many of his se- curities. They had deposited as se- curities on their indebtedness of S3O,- 0O0,O0O many shares of the Tennessee Coal and Iron stocks with many banks
 STOCKS WITHOUT A MARKET.
 The banks had called these loans"
 said Mir. Gary, and were insisting that Moore & Schley take up the Ten nessee Coal and Iron stock. It was not saleable. l will not say that it had been manipulated, but it was q .T- 4l, .xa of years, raised from a low to a high price. It had been in control of a
 syndicate that influenced great fluctu- ations.
 Tt was represented that Moore & Schley had pledged S6,00000 of this stock in the various banks. MT. Led yard said there was no possible way to prevent the failure of Moore & Schley unless we purchased this stock, and he believed the failure of Moore & Schley would mean the failure of many firms. FOR THE coUNTRY'S SALVATION
 MT. Morgan said to me: don't know whether the United States Steel corporation can afford to purchase this stock You know best as to that If it does not buy it, if the United States Steel corporation or someone else does not furnish relief, no man can say what the effect will be on the financial situation throughout the country. The situation is extremely critical If you can see your way clear to buy it, I will turn Ledyard over to you to see what you can do.'
 T said I would not consider taking any action without going to Wash ingtOn and taking the matter up with the president or the department of justice. Have they any right, asked MT. Morgan, to say whether the United States Steel corporation shall buy this company or not?'
 "I said: No but there is finan- cial crisis. The purpose of buying this stock is to overcome the tendency toward a panic, and if the president or the department of justice should find out such action was being taken and | should enioin us on the ground that the acquisition or holding of the stock | created monopoly, what we had done would make the financial situation much worse than it is now MT. Nor | gan said this was forcible reasoning.
 Mir Gary said that Prick agreed with him that the stock was not worth more than 65. Not until Nor | gan told him what he thought about the panic did Prick give any encour- agement to the plan. The finance committee of the Steel corporation was summoned to the Morgan library
 Prick" according to Gary. offered a resolution proposing to loan MT. Schley s5.OOO,O 900 or s6,000,000 in cash, l taking the Tennessee Coal and Iron companys securities as collateral If that offer failed to supply Schley's wants. it was proposed then to buy the stock on the basis of 90, paying | in Steel corporation stock.
 HAGGlING OVER THE PRICE.
 MT. Ledyard said that would not do at all, and that several persons had offered to loan MT Schley s1,000,- | 900 each so that his total resources would amount to sS,0O0,OO0 or $9,00O.- | OOO but that he could possibly get through with that. Mir. Prick and myself conferred with Mir Schley and tried to get him to take the loan. We did not want the stock
 Gary said Schley told Prick that he must sell the stock to keep him from bankruptcy: that unless he was mis- l taken an assignment had already been | drawn up for Moore & Schley for their |
 Continued on Page S)