Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1911-08-12
WITNESSES
IN DISPUTE
-
Head Of Trust Company Of
America
IN THE STEEL INQUIRY
Denies that His Firm was
Involved With Moore &
Schley or was Affected
BY Absorption of Tennes-
see Coal and Iron.

Washington, d. c.. Aug. 11.-Oakleigh
Thorne, president of the Trust Com
pany of America which became involv-
ed in the financial panic of 1907, the
affairs of which have been linked with
the taking over of the Tennessee Coal
&; Iron Co. by the United States Steel
corporation at that crisis, followed
George w. Perkins today as a witness
before the house committee of inquiry
into affairs of the Steel corporation.
Thorne declared. contrary to the tes-
timony given by Perkins and other wit
nesses that the Trust Company of Am
erica was not the "chief sore point" of
trouble at the time it was necessary to
save the brokerage firm of Moore and
Schley. He surprised the committee
with declarations that undue attention
had been directed toward his company
in that crisis and he denied any knowl-
edge of the agreement testified to by
Perkins that the taking over of the
Tennessee Coal and Iron company by
the steel corporation was to save Moore
and Schley from ruin dependent upon
bankers of New York to raise money
to save the Trust Company of Amer
lea and the Lincoln Trust company.
That his financial troubles were In
any way involved in the difficulties of
Moore and Schley. he denied. Thorne
said that before the panic of 1907 his
company had assets of $74,000,000. AS
far as the Tennessee Coal and Iron
stock was involved in collateral loans
in his bank, il was nominal, amounting
to something over 100000. He said
that on the night of october 22nd Per-
kins and Davidson of j. p. Morgan &
Co, called on the Trust Company of
America to look into its condition.
They examined it thoroughly and an
nounced that they were pleased to find
conditions good as they were.
Regarding the run on his bank ON
October %, Thorne said: by 10
O'Clock we had seven paying win
dows open and were doing our best
to get rid of the line. That day we
paid out s1S.5O0.O00."
Did you call for help?'
Yes, we had to have cash to save
the situation that day." Thorne an
swered. Il went to Morgan's office
and now Morgan, Perkins. Stillman
and Davidson i told them we had
to have money. SO far as L know
the examining committee had not
made any report to Morgan"
One million dollars, Thorne said, was
loaned him by Morgan. the First
National bank and the National City
bank. Thorne said he obtained ST.
SOC, 900 that afternoon from the Ham
over National bank which tided the
situation over till the closing hours.
He explained how that afternoon
Morgan had called the. trust COM
pany presidents of New York to
meet at the Union Trust company
and he was called in. He met
Messrs. Morgan, Stillman, Woodward,
King and other bankers. The stu
alton was discussed at length and
arrangements were made to- loan him
s1O, ,OOO, 900 on s20,000,QO0 securities.
which a committee of bankers was
to select. The following morning
he received s6,000,000 of this loan
and the rmainder in various sums.
to October 81. He received another
loan of $4,000. 900 for s30.000,000 Sc
curities advanced by bankers on Nov
ember 6. He explained that he never
krew where the money actually came
from.
Littleton asked the witness IL he
conferred during that time with Mel
vile f. Stone. general manager of
the Associated Press: He said he
had
II had never known Stone until
the time of the panic, Thorne said.
Il met him then and went to see
him practically every day. I insisted
that the trust company of America
was solvent and that the examiners
who had looked into the condition of
the company should make a report.
It was my idea that if the report
showed that the company was solvent
we would be taken care Of"
Were you endeavoring to have
knowledge of your condition wide
spread?"
"My idea in talking to Stone was
to urge the necessity of the examin-
ing committee making a report to
Morgan. / knew il the truth got
to Morgan we would get help. When
later he did get the truth we got
SIS. ZOO, ,O00S
Asked If he received a communica-
ton from Stone regarding the mat
ter. Thore said he had and pro-
duced it. 1t was read to the record,