Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1911-08-04
PLOT THEORY
IS SECUTED
MARK hANNA'S BROTHER SEES
NO ULTERIoR MOTIVE IN
TENNESSEE DEAL.
MERGER NEEDED TO AVERT PANIC
He Still Had Stock in Firm, But
Thought It Necessary to
Sell.

New York, July 29.-No Interior mo
tives lurked behind the taking over o.
the Tennessee Coal & Iron Company
by the United States Steel Corpora
tiol during the financial panic Of 1907
In the opinion of l.. c. Hanna, o.
Cleveland, one of the syndicate owners
of the Tennessee concern before the
merger, who was on the witness stand
before the steel trust Investigating
committee of the house Of represent
atives.
That surreptitious motives had been
suggested, Mr.. Hanna, who is broth
er of the late Senator Mark Hanna,
admitted, but he never had credited
the reports. He believed the transac.
ton was necessary to avert the failure
of the New York banking and broker.
age firm Of Moore & Schley, who held
too much Tennessee Coal & Iron stock
as collateral for loans, and to avert
wild spreading of threatening business
disaster.
In answer to a series OF questions
by Representative Beall, of Texas,
Mr.. Hanna said he thought the con.
gresham believed plot had been
framed whereby the Tennessee Coal
4 Iron Company would be gobbled up
by the steel interests. but he had no
knowledge of such a plot and did not
credit such an idea.
Before the threatened failure Of
Moore & Schley." asked Representa-.
tive Beall, had not the United States
treasury poured $5O,000,O00 into New
York to stop the panic?"
Il think So" Mr.. Hanna replied.
ALSO before that time," Mr.. Beall
continued, had not Mr.. ]. Pierpont
Morgan and his associates advanced
100000, 900 to relieve the financial sit
uation7"
Il heard IL SO stated" said Mr.
Hanna. after all that the panic was
averted."
Mr.. Beall resumed:
And can you tell me why the tax.
ing up of only 100000 in loans on
the Tennessee Coal & Iron collateral
Of Moore & Schley affected that restor.
alton of confidence in the business
world, which the United States treas
ury and the Morgan millions had been
unable to dot"
Wishes He Still Had Stock.
THE only explanation" Mr.. Hanna
replied, after some hesitation, lis that
the panic up to that time had not
reached that character of business
houses which were involved in this
transaction. think from your line of
questions that you believe the sale of
the Tennessee Coal & Iron Company
was plot. never thought so. still
wish could have held onto my stock,
but it seemed absolutely necessary to
sell it to avert serious trouble
Representative Gardner, of Massa.
chusetts also questioned the witness.
1.-THE report has been current" said
Mr.. Gardner, that an attempt was
made by persons DESTROYS Of acquiring
the Tennessee company to discredit
that concerns stock in the banking
world and to induce banks to make
imperative calls on loans secured by
that stock for the purpose of hammer.
ing down the Tennessee price so that
It might be acquired by the United
States Steel corporation. Did you
ever hear that the deal was a deliber.
ate drive?"
I've heard gossip about it," Mr..
Hanna replied. Il think l heard Mr..
Gates discuss 1t and probably others
talked about the rumors afterward. II
never felt that way myself and did
not believe anyone would have been so
foolish or so dishonorable as to at.
tempt such a thing"