The Washington times., 1911-08-11

| to help Colonel Payne, who had loaned
his securities to Moore & Schley." de-
clared Mr.. Littleton, emphatically.
| Again Mr.. Perkins explained the Ten
nessee pool. 1t had borrowed widely or
| the Tennessee stock. That stock had
been going down and the banks demand.
ing more security. Money was going
out Of the banFs. In that situation II
became eviGent that Tennessee was be
ing improperly held at its quotation
price. The banks had to have money
the West was demanding it. Moore n
Schley couldn't provide money for Their
leans that were falling due.
AS soon as the first loans were called
and the Tennessee stock. held as col
lateral, was sold, all the stocks Of that
issue would fall, and all loans based
on 1t would shrink in the same proper
ton"
Mr.. Perkins said he first heard the
sale of Tennessee suggested at a meet
ing at the Morgan library by Mr..
Schley.
Moore & SchIey had pledged 1000
of the 800, 600 shares at banks said Mr..
Gardner. They held lot more they
could not negotiate, and which they
had taken on loans. When these loans
were due the borrowers could not meet
them. Further, there had been a rela-
ton between Mr. Schley and Colonel
took up the Unliquidated securities, they
passed them on to Colonel Payne, and
he exchanged good available securities
for them. At length Colonel Payne got
concerned about having these unmar-
ketable securities piped 20 him indefi-
nitely, and cast about for means to
stop 1t.
Colonel Payne's Suggestion.
That seems the explanation to me-"
He said. 1 don't propose to liquidate all
this al"ne-IH see IL can't get some
body else TO help. The Steel Corporation
is natural purchaser So he started
the movement for the sale"
Colonel Payne was not threatened
with .uin." replied Mr.. Perkins 1T is
impossible that such a theory should
explain. We had known for days that
Mr.. Morgan. Colonel Faync, and others
had helped Moore & Schley. But at last
it became apparent that no piecemeal
plan would s"cseed-the whole situation
must be cleared up once for all, so that
the fire could not break cut again"
MIR. Ledyard, acting for Colonel
PaNnc. suggested the purchase of Ten
nessRe by the Steel CUrDoration?" said
MIR. LittleIOn. Il gather that Colonel
Pavne felt he was getting about all the
uiCurrent stoCtks he could handle, and
Wantel TO know where he got off.
Mr.. Stirling wanted to know how Ten
nessee stock had been tOlstered up. so
that in n falling market it fell less
than almost any other
Mr.. Perkins explained that the pool
had physically lifted IT out Of the mar
ket-locked 1t UP. There was practical
y none on the market, ard if anybody
had offered l,EO shores for sale II would
have gene down in a startling way. The
situation was artificial and the appar-
nnt value did not represent the facts
at all. A man holding all of an issue,
can offer any price he pleaSes, and not
have to take any: but by doing so he
makes a nominal market price"
Worthless As Collateral.
AS collateral the stock was worth
ess at the 'pegged prices,'" said Mr..
PERKINS. He presented a list of quota
ions from the Commercial and Finan-
,ial Chronicle, showing how greatly
nearly all fell, while Tennessee held up.
That, he said, was evidence that Ten
lessee's was an artificial quotation.
Here Chairman Stanley reverted again
% the Perkins address at Houghton.
Mich. He read extracts from 1t, and ,
ried to induce Mr.. Perkins to accept
summarized statement of 1t. Mr..
oerkins was wary, and preferred not
o accept somebody's elses summary.
,e glad If Mr. Perkins would provide in
ormatiou showing whether trust-made
lrticles had decreased in price.
Have you decreased prlces?" he
lSked
yes, sir replied Mr.. Perkins.
ITO consumers In general or to the
lew powerful cOnsumers?'
Il believe proper investigation will
show that the Steel Corporation and
Dther sO-Called trusts have in fact re-
tn CpnarE1 consuming
public"
Did you not sell to big concerns for
css than to smaller opes?"
ION that point l Suggest that you
all some other witness. l can tell you
where to get that information, but
should not desire to set myself up as
IN encyclopaedia.
There's a delicate intimation to that |
aTect in this address," observed MI |
stanley. slyly.
mated as much" laughed Mr.. Perkins.
Steel Not "Flogged."
"Is it true that you have sold plates
md tubes to the Standard Oil Com |
,any for per cent less than to other |
ustomers?"
Il do not know"
Il find that the Sherman act seems |
lot to have tagged the steel corpor-
ton perceptibly." Mr.. Stanley con-
inues: I'm March, 1903, the company's |
minutes show, the directors discussed !
pportioning certain business among |
ertain companies. 1t was concluded to |
ave in cost of raw materials, and a
Toup Of tool companies united in erect
lg a plant to make their own pig iron.
.ater, they proposed to sell this plant
o the United States Steel Corporation.
here were negotiations, and it was re-
orted that 50 per cent of the COM
any's stock might be sold to the Steel
corporation, with an agreement for the
government Of prices and an under
tanding for the suppression OF COM
etition.
Mr. Perkins said that by refreshing
is memory he would be able to tes-
ify concerning the transaction; but
s it took place eight years ago he
ould not at this date discuss it's
etails or explain the circumstances |
the arrangement
Mr.. Linda bury explained the con-
ract as one which served the inter-
SITS Of both parties. and one whose |
eneral purport had been sustained
apeatedly by the courts. The Cruel
lie Steel Company established the
lairtOn Steel Company to make steel
illets.