The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-10-27

night before of the chief bankers OF
the city, headed by j. T.. Morgan ~ Co
IL was formally decided that the po,n,
then needing buttressing was tho
trust Company of America, and tina,
this denomination was announced at.
yer MIR. Perkins (meaning George w
ieFhlns, OF j. T. Morgan ~ Coz had
been in conference subsequent to said
gathering of bankers. A part of the
article, sub-headed The Omciul State.
meht' said: Tho chief sore point is the
trust Company Of America
Aggravated Conditions.
After expressing confidence in tn
condition of the company ana sta,,ns
riiat 1t would be aided and thai can.
ltal had been guaranteed therefor A.
was stated that these steps were tnkc,,
LOT the purpose OF announcing thai
the company would be taken care on
II an examination into It's affairs. which
hau been authorized, showed conditions
10 Dc us sound as there was every rea-
eoh TO believe them to be. THIS an
nounccment helped materially 10 cause
Il run On the said trust company ana
aggravated the general uneasy condition
ana made the position of Moore ~
schley more desperate. IT was sen-
orally known that Ihorne and ScnIsv
were members OF the Tennessee syn.
dica &c. -"
Regardless OF the intent in giving
out tue statement--and the facts .ry
not sufficiently known to make nnv
charge in this r~esaId--the fact ia thu.
~ contributed directly and strongly
toward bringing Moore II Schley "a -
point OF imminent failure, alrhourp
Ing! were amply solvent. Their con.
ultlOn had bnnnp.z
generally regarded by bankers ana
nnancters that their failure might pre-.
cipitate Il general crisis, they. }. r
sior2an a. Co, taking the lead. cxcrte.
themselves by advances OF reauy money
W meet pressing demands ana other-
WISE 10 prevent their suspension. M,icn
OF the effort. however, revolyed ab,ui
the preparation for the corpora; ion 10
acquire the stock OF the tennessee
company.
Nothing less than the control oftb,
ielhessee company was considered by
the corporation. and negotiations pro.
oeeucu rapidly and steadily 10 thar
end II being represented 10 Schley
that In no other way could relief H..
brought TO him.
There was fear upon the paci az
the corporation that when the move
ment became publicly known tho rov-
eminent might take steps 10 prevent
us discrimination. In view OF ms.
y. ~. Gary. chairman of the cSccu.
1--WE committee of the corporation. and
n. 1, Frick, Il director. went TO Wash
ington, reaching there Sunday moru-
ing, November 4. TO see the pr.sI-
dent, having previously made an an
po'ntment. Without fully disclosing
an inc faets III regard 10 the Tcnnes.
see 3tock, it, ownership, the amount
OF money estimated as necessary to
reIieVe Moore and Schley and the ar
engagements that had already been
mace 10 rclic9e the Trust Company
OF America, they represented to he
President that the only talng that
would prevent 4 vicious spread Of the
panic was for the corporation 10 ac-
qu!re the stock OF the Tennessee COM.
rany.
Tile President recorded in a letter
{" Che Attorney Cieneral. written in
lhcir presence, their representation.
lie states tha, said Gary and Frick
told him that there Was u certain
business Firm which would fnil IL hc!p
should not be given, and that among
its assets were 4 majority OF the Sc
%curities Of the Tennessee Goa! Com
pany. The hrin referred to was un.
poHptculy moore Il Schley, but IL was
not true that among the assets of
the firm was a majority OF said securi-
ties. Nor was it true that said Schley
had among his assets II majority or
anything ap~pro%inatiug II. The Presi-
dent further said In his letter:
Judge Gary ana Mr.. Frick in.
formed me that hut little bcneft win
como 10 the ~,eci corporation from
the purchase
Statement Ia Misleading.
Tint statement 10 the President was
n misleading one. The property was
Very valuable. Next to the corporation
the Tennessee Company had the larg-
est coal and ore properties in til.
United States OF any steel concern.
4 competitor was removed. The cor
poration, In Its report to It's stock
holders OF this purchase, said that tn.
terms OF purchase were satisfactory.
both as ~ price and manner of pay
ment; thst the purchase OF the prom
srty promised to benefit the CORPORA
tion and that the Tennetsee properi
was very valuable.
The President was no, made fulIy
acquainted with the state OF affairs
IN New York relevant to the transao.
uona an th:y existed. II lie had beer
fully ADVISE he would have knew
> that z eosss 10 stop the panic was moi
'he sole "1ving cause. but that they
was also the desire and purpose !,
acquire tho control OF . companv M,
nai feeehtiE assumed a position o,