Omaha daily bee., 1911-08-03
SAYS COVERED BY OTHER ISSUES
From Twenty Five to Forty Millions
Borrowed by Firm.
KEssLER ALREADY IN TROUBLE
Had Considerable Tennessee Coal and
Iron Stock Involved.
L. c. HANNA OFFERS HIS AID
NJ direct Attack On Tennessee In
street at Time of Panic, Accord
ing to witness-MOOre and
Schley safe.

NEW YORK, Aug. 2.-Grant r. Schley
OF the firm Of Moore g. Schley and former
syndicate manager Of the Tennessee Coal
and Iron company, told the Stanley steel
trust committee that during the panic OF
1907 the loans of his brokerage firm from
the banks were none OF them supported by
Tennessee Coal and Iron stock exclusively
as collateral.
He explained that Tennessee Coal and
Iron stock entered the loans which In
VOWED the brokerage firm of Moore &
schley in financial difficulties in 1907 only
a small percentage. all loans being covered
also by railroad stocks and other indus
trial stocks
How much had Moore & Schley bor-
rowed?'' asked Representative Littleton.
(which Tennessee Coal and Iron stock
was given to support in partT'
I'VE had loans of from SIS, 900 to $4o,-
600 0O0." said Mr.. Schley. I'VE got no loans
on Tennessee Coal and Iron stock exclu-
sively. The stock had no force with the
bankers on account Of irregular fluctua-
tlons, Mr.. Kessler's connection with 1t and
other reasons. The banks would not take
Tennessee stock alone. ] was borrowing
enormous sums. a hundred thousand here.
five hundred thousand there. and these
were secured by high-grade railroad stocks
stocks mixed with it. Tennessee Coal and
Iron was part of the industrial stock"
Money from Morgan and Others.
How much was your loan from ]. P.
Morgan & Coz"
About a million and a half"
He said the firm had two millions from
the First National Asked how much
Tennessee Coal and Iron stock entered
inf ha Of Ind r.
given as collateral for those loans. Mr.
Schley could not recall.
Mr.. Lttleton secured from the witness
the information that In addition to the
stock held by the two syndicates, 1eS, 500
shares. there was In the street considerable
free stock
How much Tennessee Coal and Iron
stock had Moore a schley hypothecated
In making loans for themselvesf"
II could only estimate 1t, but think it
was about Isl. coo shares" was Mr.. Schley's
reply. II had general stock OF my own
In the office and also considerable on
which margins had been paid and the
balance loaned. Our firm borrowed on
about 10000 10 10000 shares"
Mr.. Schley declared Mr.. Kessler was in
trouble just before the panic on loans with
many brokers besides Moore g. schley. In
these lloans he had considerable Tennessee
Coal and Iron stock involved and that was
one reason for the trouble with Tennessee
stock.
Mr.. schley appeared pale and stated he
had been sick having been away from his
office for three months.
offers of Aid from Hanna.
Mr.. Schley said that just before the sale
Of Tennessee stock he had a discussion with
l.. c. Hanna about the status of Tennessee
stock, but did not remember whether or
not they concluded there was danger tc
Tennessee Coal and Iron in the situation
At the time, Mr.. Schley said, Mr.. Hanna
had several millions of securities TO his
credit, and in a general way had offered
his assistance TO Moore & sohley. though
there was no specific offer. There was nc
direct attack on Tennessee in the street
at the time OF the panic. witness said.
Were Moore & Schley subject to a gen,
eral attack from Wall street?" was asked
There were many rumors about that
Moore & Schley were going to fall" Mr.
schley replied, but that they were not at
tackled solely because of their ownership
OF Tennessee Coal and Iron stock was
pretty well demonstrated by the fact tina,
they had SIS OOO.OOO worth Of loans
III It is true" said Mr.. Ldttleton. "thai