The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-08-12


pany Of America is the sore spot in the
situation This statement appeared after
a conference at the Hotel Manhattan be-
tween Mr. Morgan. Mr.. Stilman. MIR.
Perkins and Secretary Of the Treasury
Cortelyou
The conference at the Manhattan Hotel
NJ which tho affairs of the trust company
were discussed was held without the
knowledge OF Mr. Thorne He knew moth
ing about u until he read the announce
mert in the press
Whil. charging large share Of his
troubles 10 the "sore spot" statement
said to have been authorized by Mr.. Per-
kins. Nlr Thorne did not try to fasten the
responsibility upon MIR Perkins He did
not know who was responsible for II He
test fled that after October % no one
worked harder than Mr. Perkins to col
lect fun ,s to save the trust company
He said further that II was almost en-
tirely due to the efforts of j y. Morgan
4 Co. of which Mr.. Perkins was then a
member. that the Trust Company Of
America wa saved from destruction
Mr.. Thorne declared that the trust COM
pany was not "A large holder of Tennessee
Coal and Iron stock. He himself held
some Ot those SctIflI1PS. ne
had business relations with Moore 4
Schley They had made loans To that
firm. including one of sjOO,Wo in 1907
The security deposited was IN me man
American Tobacco. rhe witness did not
think any Tennessee Coal and Iron stock
figured in this transaction. Mr.. Thorne
knew nothing about the deal Tor the
absorption of r G. 4 l. until the Sunday
preceding tho panic Mr.. Icdyard told
him the trade was on and that h" was
hopeful il would go through.
Mr. 1horne estimated that through
depreciation of securities and loss of
loans the Trust Company of America
lost about s3,Soo,oG as u result of it's
panic experiences in 1907. At that time
the company's surplus was about sio,un.
OOO. II now approximates So. $40, ,ON1.
Mr.. Thorne was asked by Representa-
tive Gardner why Mr.. Perkins gave out the
sore spot" statement. assuming he was
the author of it," Mr.. rhorne could
not say
YOU thought he made damn big
bunder. did you notp Not malicious
blunder, but a stupid blunder'" asked
Mr.. Gardner.
That, your way of putting it," re-
sponded Mr.. Thorne. II do not know
that MIR Perkins wrote the statement.
You acq,it him Of everything but
sturidity. do you?" asked Mr.. Gardner.
Yes. sir" replied the witness
Mr.. Thorne again repeated that MIR
PERKINS was very NtdTlul 10 Ine lTuSl
Company of America at the time of trouble
Mr.. 1horne told of rumors that had
been set IN circulation about the trus,
company calculated to injure the credit
OF the concern
They said we were full Of cats and dogs
and other things" the witness said re-.
sentfully
This being the case. Representative
Sterling insisted that the statement alleged
TO have been issued by Mr.. Perkins mus,
lie f.>r tN.
trust company coming at time wher
things were up in the air.
Tine statement that We would have
plenty of money before l o'clock on DC.
tober 23?" asked MIR Thorne significantly
THAT was an invitation for everybody
to come early"
The committee spent considerable time
again to-day questioning Mr.. Perkins
in regard to his views on Government
control Of great industrial corporations.
Il understood you to say yesterday,
said Representative Bartlett. that dan
ger tc the corporations turks in the de-
cisions of the Supreme Court in the Stand.
ard Oil and Tobacco trust cases
Not quite as you put it," answered
Mr.. Perkins.
We'll. in what way are those decisions
of the court menace to the Steel Cor
poration and other corporations tha
have not violat ed the Law and do not
contemplate violating the law"
"We business men,. said Mr.. Perkins
think the Supreme Court held that We
must conduct big business in the ligh
of reason; that business men must do
the right thing. that is. to be REASONABLE,
and Just That Is a. it should be Bu
as conditions now obtain we do not know
where we stand we do not know what IL
reasonable and what is unreasonable
The people want to know the rules o
the game and they do not want the rule
changed while the game is in progress
We ought to have laws governing cor
porations that are easily interprete'
in order that we may know at all time
within what limits we are required (
operate. Business ought to he takel
out of politics,
Separate tine good from the bad il
these corporations,- Mr. Perkins adde
moment later. Eliminate the bad, b'l
preserve the good.
MIR Perkins declared that he believe
in Government regulation, butlsuch regI
iation as would he understood by every
body.
The present uncertainty a. to the la
and its purpos" tends 10 demoralze,' h
said
Representative Littleton wanted
know whether Mr. Perkins in the ever
uniformity of State laws could be ha
would be in favor of the creation Of som
Federal board that would require col
poration the minute II engaged in inter
state commerce to prove lis efficiency an
character before it was permitted to carr
on commerce between States.
Il do" replied Mr.. Perkins emphaticall,
Mr.. Perkins, referring to the 1897 pani
recalled that II bank president had CON
TO j. y. Morgan IN the darkest hours
that period and remarked that he wa
greatly worried because his bank VI
below the legal reserve limit. Accordin
to Mr.. Perkins, Mr.. Morgan said TO II
banker:
"Well. you ought TO be ashamed TO /
anywhere near your limit at time lib
this What are reserves for except fc
use in such times as these?'
Questions by the members OF the con
mittee in regard to the Tennessee Col
and Iron deal led the witness to remar
that the committee seemed 10 suspect
niger in the woodpile in that matter.
II assure you. gentlemen" he addeS
there is none. That deal was as cled
fair and honorable as any transactio
among gentlemen could be"
Representative Littleton remarked thi
he had developed the theory that Go
D. II. Payne was the person who as Dack'
of Moore 4 Schley ioaned them $1,000 %
or 5000 .00o Of good current securities
exchange for others that al the momel
were unmarketabie and that the gre'
4 Ss..I