The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-06-03


1T was represented td that Moore Moo o.S; &
In the various banks Mr.. Ledyard sald
there was no possible way to prevent the
failure OF Moore & Schley unless we pur-
chased this stock; and he believed the
failure Of Moore X Schley would mean the
failure OF many banks
MIR Morgan said to me. j don't know
whether the United States Steel corpora
lion can afford to purchase this stock
or NOT You know best as TO that. II
II does not buy it: II the United states
Steel corporation some one else does
not furnish relief. no man can say wha,
the effect will be on the financial stua
ton throughout the country The situa-
tion is extremely critical II you can
see your way clear to buy IL l have no
doubt such action will relieve the situa
ton. ! win turn Mr.. Ledyard over TO
you. TO see what you can do
Concludes to See Roosevelt.
81 said would not consider taking any
action without going 10 Washington and
taking the matter UP with the president
or, the department of justice.
Have they any right, asked Mr. Nor
gan to say whether the United States
or not?'
crisis; the purpose of buying this stock
is 10 overcome the tendency toward a
panic: and if the president or the depart
ment of Justice should ind out that such
action was being taken and should enjon
us on the ground that the acquisition or
holding OF the stock created a monopoly,
what we had done would make the tinan-
cisI situation much worse than IL is now.
"Mr Morgan said this was forcible
reasoning,
him that The stock was not worth more
than 65.
Not until Mr. Morgan told him what he
though, about the panic did Mr.. Frick
give any encouragement TO the plan. The
finance committee OF the steel corpora
,ion was summoned to the Morgan
library.
Haggling Over Price.
'ATr Frick." according to Mr. Gary,
Offered resolution, proposing that we
100000 in cash, taking the Tennessee
Coal Il Iron companys securities as coll
lateral; II that offer failed 10 supply Mr.
Schlcy's wants. il was proposed then TO
buy the stock on the basis OF 90, payable
! in steel corporation stock
/ Nh Ledyard said hat would not do
a. an All a S 10 %r bsH offered 20
his total resources would amount TO S..
noe OF 100000 but he could not
possibly get through with that. Mr. Fricll
aid myself then conferred with Mr.. Schey
and tried TO get him to take the loan;
We did not want The stock"
Mr.. Cary said SchIey told Frck he must
sell the stock 10 keep him from bank
ruptcy that, unless he Was mistaken. an
ASSIGNMENT already had been drawn up
for Moore x Schlcy for their creditors;
and that Schley's attorney Thomas
Thatcher might be able TO tell OF such
an assignment.
Agreed to Buy at 90.
'l have heard since" said Mr.. Gary
that Schley has made statements that
he could have sof through all right but
anyone who heard him at that time would
not hav. thought so. Therefore | began
~ talk 10 l.cdyard about purchase OF the
n n
Suplect 10 the objection that might possi
hlv he made in Washington
said hr Cary to Representative Little
Ton. THAT the attorney general might not
liav" the right TO indorsc the transac
The steel corporation. he said had at
that time q bout S7S 600 600 on deposit in
banks and could not have Withdrawn more
than 5000 ooo without creating great
financial disturbance.
"Af'er the agreement had been madr
10 ;alse the Tennessee stock al 90 said
My Gary. ''LedNaTd came 10 me ard said
SchleT had told him tho price Of 90 could
not let them out OF their difficulties.
notice that Gates saws iu his testimony
Thai when b" Sol home from Europe he
made them raise the price In the trans
ac'ion. n he made that suggestion il
must have been by Marconi. because the
whole transaction was closed before his
arrival from i>urope
on November 1. at a meeting Of the
finance committee or the corporation. the
entire matter WIS again referred 10 the
chairman. and asreed with Ledyard TO
raise the price 10 loo aud let Moore and
Schley Ppil through. Nv bargain was
entirely with Ledyard, MIR Morgan GER
islnlT die not participate i'm any way 10
induce the buying or selling. hold no
brief for Mr Morgan. but ] state this
because or The sensational statements
that have been made.
AFTER the agreement buy the stock al
loo the finance committee OF The steel
company met and discussed putting the
deal up 10 President Roosevelt.
Mr Gary said lhat at 10 o'clock sun
secretary of the president from New York
10 arrange Tor the conference.
He aud NJ. Frci, departed chat night
travelling on a special train and hurried
10 the White House ahead of the ap-
pointed hour as MIR. Morgan had told
us hat IN" conditions we're so critical
conference at the earliest possible mo
ment.'
Roosevelt Calls Root In.
~, After hearing our story continued
Mr.. Cary, '.the president said he would
lke TO consult with the department OF
and the president called Secretary of
state Root into his office The president
ASKED me again 10 state tho case. ] did
srn.,I ana the result Of that interview / i'm
medlatcly wired TO New York"
,, DID the president ask Secretary
Roots opinion as to The legality Of tho
=" ''"nsdClpn. asked Mr.. Bittlctou.
He did" said Mr, Cary and there
was no disagreement between any Of us
Mr Gary then told the committee he
hao = record OF what took place on that
nC'saion on November T. two davs
suer the visit n the White House. he
nh9 written 80 Secretary Root rcyicw-
inE ,hs entira conference as he rnm"m-
thfIed II. snd asking Secretary Root il
Hl,n agreed with his recollection.
TINS letter reviewed the facts present =
60 10 Inc president. namely: That the
hltfd states Stool corporation had the
ppboftunlty 10 purchase more than one
half OF the capital stock OF the Tenncs-
see coal Iron company AT a price suiur-
%hnt IN eNc"Ss nf It's actual value, that
INC purchase would greatly benefit
tuieSferinG financial conditions and avert
tne failure of an important concern: that
lhe purchase would not materially In :
crease the amount OF steel business con -
arq2lled by the United States Steel corpor-
Root Writes to Gary.
Mr.. Gary stated in his letter that he
und@fsiood the president 10 say that
Wnle II" would not make any promise
dS 10 what the government would do he
certainly would not stand In the way.
Mr, Root wrote Mr.. Cary on November
4. IlH.