The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-08-03
NO PHILANTHROPY
I IN STEEL MER6ER
Schley Denies T. |. & c. Co.
Purchase Was to Stop
Panic
DECLARES COMPANY
GOULD HURT TRUST
tennessee Concern Was Able
to Make Cheaper Steel
His Argument in
Selling

NEW YORK, August 2--Under A
sAetilng gun fire of questions shot at
MIN py the special congressional com
fnittee investigating the steel trust.
Grant b. Schiey. whose name has
| inquired more conspicuously than has
any other in the discussion of the
absorption OF the Tennessee Coal and
IRON company by the giant combine
III inc panic OF 1907, virtually ad-
united mat the conclusive and most
potent argument he brought to bear
upon the officials of the powerful
trust for the purchase OF the prop
erty was the practical monopoly the
merger would give the Morgan Gary
trick concern of the iron and steel
business of the United States.
Now. Mr.. Schley," Chairman STAN
ley inquired In voice that had a
coaxing note in It. isn't it a fact
that before you were able to close
your deal You pointed out that the
Tennessee Coal and Iron Comp any.
having demonstrated that il could
| manufacture pig iron and steel
cheaper than could the United States
Steel Corporation. held the field south
OF the Ohio from the Atlantic To the
RIO Grande?"
That's right" laeonically admitted
the witness
And, Mr. Schlay. isn't 1t also a
fact pressed the Kentucky congress
man harder, that had not the Ten
! nessee Company fallen into the hands
OF the steel corporation, tho latter
concern could never have broken into
the territory ] have defined 2"
-Quite probably true" he assented.
YEARLY
Srhley Pale and Weak.
Ia a l.
WIS his first trip to New York in
three months, during which period
he has been bedridden with infsamma-
tory rheumatism.
In words and manner that carried
conviction, MIR. Sehley denied the
statements contained in the famous
letter written by President Roosevelt
to Attorney General Bonaparte, No
vember IA. 1907. in which the then
president stated that Judge Gary and
n. c. Prick had represented to him
that unless the government should
permit the steel trust to buy the Ten
nessee Coal and Iron Company. Moore
and Schley would fail with the result
OF dire disaster to the whole coun-
try,
Il never 1t any time told Judge
Gary Mr. Frick or anybody else that
Moore and Schley would fail unless
the steel corporation bought control
of the Tennessee Company" declared
Mr. Schley. In the first place" Mr..
schiey added. the firm OF Moore and
Schley didn't own share of Ten
nessee Coat and Iron. George A. Kess-
avg arld owned about ffty-seven
thousand shares personally when the
panic struck us"
Asked About Kessler.
did kessler's connection with the
company act a bad influence upon
it's stock" was asked.
ITO a considerable extent II did"
tYep3ss.sS My Fish !5sse sbaeTa, &Ass
no market 10 rthe stock even before
the panic. 1t had become generally
known that the company was under
the control OF a syndicate,
Mr. Schley explained how Moore
and Schley had used something over
1905 shares of the stock as part
collateral for the loans of nearly s4o,-
600. 900 the firm had borrowed from
banks He said that In obtaining
loans the firrt had to put up about
seventy per cent. In standard railroad
stocks The remaining thirty per
cant. was In industrial securities.
Among the latter were Tennessee
shares. I'VE used Tennessee stock
to sweeten with" was the way he put
II.
Iittleton Quotes Schlcy.
Reading from the record OF the In
vestigation made by the senate judi
ciary committee in 1909. Mr.. Little