The Sentinel=record., 1911-07-30
BENEVOLENT
 ASSIMILATION
THAT'S WHAT PURCHASE OF TENNESSEE COAL AND IRON
 WAS. LEDYARD SAYS.
Says He Was First Man to Suqqest Purchase to Morgan-Denies Report of Beating Down
 the Stocks.

New York, July 29.-Lewis Cass Ledyard, who was the attorney fol Oliver Payne of she Tennessee Goa and Iron Company syndicate in l90i when the merger of that corporation with the United States Steel Corpor- ation was effected, told today to the committee of the house inquiring into the affairs of the steel trust, that he was the man who first suggested the transaction to J Pierpont Morgan.
 MT. Ledyard said MT. Payne was ahe first to suggest that the United States Steel Corporation take over the Tennessee company in order to avert the failure of the brokerage firm of Moore and Schley and that MT. Payne asked him to see Mir. Morgan and acquaint him with the grievious situation resulting from Moore and Schiey's loans on Tennessee stock as collateral and urge him to seek re- lief from the steel corporation.
 MT. Ledyard incidentally surprised the members of the house committee, when in enumerating the loans or Moore and Schley at that time, ne stated that MT. Morgan's firm had loaned the brokerage firm money on Tennessee collateral, loan, how ever that the firm did not call.
 lntimation of a. conspiracy on the part Of the Morgan firm or the steel corporation to discredit Tennessee Coal and Iron stock so that the steei corporation could take it over cas- fly were denounced by Mir. Ledyard as outrageous falsehoods" and he vsssicInviitiy declared the absorption of the Tennessee Company was q providental and beneficial act on the part of the United States Steel Cor Ioration Mir. Ledyard said t-s transaction in his opinion was not il- legal and he lauded the act of Judge Elbert H. Gary and Henry c. Prick in going before the then president, Roosevelt, an acquainting nim with the facts regarding the merger be- lure it was effected.
 The steel inquiry Will be continued here next week, the hearings to Dc resumed Tuesday
 A sub committee will meet Monday to plan the procedure, and George w. Perkins is expected to be called as a witness before many days.
 Ledyard-s Testimony.
 The first l knew about this trou- ble was during the last week of 0c- tober, 1907," Mir. Ledyard said MT. Payne came to me and told me Moore and Schiey were likely to get into deep trobule; that the banks had called on them for substitution O collateral for the Tennessee Coal and Iron stock. He said the reason was that Tennessee stock was pei stock and he could not see any wa! to save the situation unless the Unit ed States Steel Corporation acquired the Tennessee company.
 MT. Payne suggested 1t would p welIwor me to see MT. Morgan an' ask him to put the proposition U take over the Tennessee company s to the United States Steel Corpora ton. That I did"
 Mir. Ledyard continued that Moor and Schley We're in trouble, not o account of loans on the Tennesse stock but of other securities whlc were not regarded as entirely sai at the time. He said he had gon to Mir. Schley immediately after MT Payne had spoken of the condition affairs and then went to see MT < Morgan.
 T think I went to Mir. Morgan house Saturday night and told hil what was going on," said MT. Lee yard. "Mr. Morgan expressed gre' concern.
 MT. Morgan declared it would Serious to let Moore and Schley g and after I suggested the unite States Steel Corporation be called
 he said that We should get Judl Gary and Mir. Prick. Mir. Ga came right over to MT. Morgan house. Eater, MT. Trick came al the whole situation was made know
 T went into another room," M Ledyard continued. while MT. MO gan, MT. Gary and Mi. Prick talke Judge Gary expressed great reltle ance in taking over the Tenness Coal and Iron Company. He did T