The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-08-03
KNEW NOTHING
ABOUT TRIP TO
WASHINGTON
Grant B. Schley Not In
formed of Proposed Wis
it Of Gary and Frick
to National Capital.
MORE EVIDENCE ON
TENNESSEE SALE
Witness Refuses to Say
His Firm Would Have
Failed Unless the Deal
Went Through.

TEW YORK, Aug. w hen JuoSe
mi Ebert H. Gary and Henry &.
u Frick of the United States Steel
corporation took midnight train
from New York during the financln'
panic of 1907 to see President Roose'
Welt in Washington about the taking
over OF the Tennessee Coal Iron
company by the steel corporation,
in order to avert the crash of the bro
kerape firm of Moore & Schley, Grant
B Schley. one Of the most interested
participants in the proposed transac-
tion, knew nothing about the White
House expedition,
Mr.. Schley, who was one of the or
panizers of the Tennessee Coal & Iron
syndicate. and its associate manager,
today so informed the house committee
OF inquiry into the steel corporation
He further surprised the committee by
the admission that he could not say
whether the transfer of Tennessee Coal
G. Iron stock upon which the brokerage
firm had made heavy loans prevented
the financial demise of his brokerage
business.
What Perkins Was Told,
Though denying any knowledge OF
the existence of an alleged conspiracy
on the part of J. P. Morgan and his
interests or the United States Steel
corporation, or both. to discredit Ten
nessee Coal e. Iron stock SO that the
steel corporation could acquire the vast
holdings of ore and coal in the Blr-
minghsm district, Mr.. Schley said that
when the transfer of Tennessee stock
10 the steel corporation was suggested
he pictured TO George " Perkins, a
member of the finance committee of the
steel corporation. how Tennessee Coal
&; Iron would be of enormous value to
his corporation, how its vast ore and
coal holdings were invaluable and bow
its acquisition would enable the cor
noration actively to enter the southern
steel market.
Representative Martin ". Littleton
interroeated Mr Schlev for hours and
was followed by Representatives. Stan
ley, chairman; Young of Michigan.
Sterling OF Illinois, Bartlett of Georgia
and other members of the committee.
Never Went to Morgan.
After inquiring Into the preliminary
1907. Mr. I.it,leton asked Mr.. schley If
he had. prior to the negotiations, gone
TO J. P. Morgan and disclosed TO him his
control OF the Tennessee Coal Iron
company stock.
e! never did, Mr sehley replied
did You tell Mr. Perkins. My. Nor
gsn's partner, about it2'' asked Mr.. Lit
On the Saturday before this sale Mr..
Schlev replied that he met Mr.. Perkins
and they talked generally about the pro-
posed sale.
"Djd YOU urge Mr. Perkins" continued
the property 10 the steel corporation and
point out 10 him what valuable prop
erty il would be?
II told him J thought the Tennessee
company would be very valuable prop
erty fcr the steel corporation. called
vantages. its vast ore holdings and enor-
nous undeveIoped coal fields"
Was the firm OF Moore q Schley facing
failure at the time OF this transaction
asked Mr.. Littleton.
The situation was serious. No one
could tell what the morrow would bring
forth"
Were sou involved more than other
brokers'"
Our loans were more extended than
they ought TO have BEEN
Roosevelt's Letter Read.
Mr., Littleton read from letter writ
Roosevelt TO Attorney General Bonaparte
in which he related that Judge Carr and
Henry G. Frick had been 10 see him and
told him that prominent New York
brokerage house would fan within a week
unless the United States Steel corpora
tipn took over the Tennessee Coal g. Iron
company and thus come to the rescue.