New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-30
DEFENDS STEEL DEAL
Continued from first page.

Continued from 6rst page.
demanded a substitution Of other colia'-
eraI for this stock. because u vas
"neeged" and uncurrent stock ana ho
didr.t see any way Moore & Scnley cou'u
he saved except by the acquisition OF V"S
Tarnessee stock by the United STATES
Steel CORPORATION: he didn't see mar
ket for 1t anywhere else, SAID the VII
ness.
Mr.. Ledyard said that his EFFORTS III
the matter were wholly inspired ny 'he
desire 10 protect Colonel Paynes 'arse
interests I'm Z. G. and 7. Colonel Payne
owned 10000 shares OF the tennessee
syndicate stock. he said. and besides ndu
II. 900 shares in his possession whlch lie
had accepted from Moore 4 Scniey W
exchange for more active securities
which he had given the firm to help II
along. That meant an interest OF c.
100000
colonel Payne suggested that shouln
see MIR. Morgan, whom l knew as
friend. though I had had no PROBES
i sional relations with him continued the
witness. Colonel Payne SAID. he "oulu
suggest TO Mr. Schley. who, with MI
Hanna. was manager Of the len
nessee syndicate, that ! should see MI
MORGAN. Next day. think IT was FRI
do, NIGHT October 81 received tele-
nhone message from Mr.. Schley 10 come
70 the untown office of the firm. a NO.
7o7 Fifth avenue. ! Went ana MI
ccb,ev told me Colonel Payne had
snoken 10 him and that he was ready 10
avail himself of the opportunity OF lay
ing the matter before Mr. morgan
through me. He told me the amount OF
stock the Tennessee company had ABOUT
S33. OOO, 900. and said that 1T would ne
necessary TO get par for 1t in order TO re-
lieve the situation
The witness said he went early the FOL
lowing morning 10 see Mr.. Morgan at
his home.
Mr.. Morgan Helps a Little
81 told Mr.. Morgan about the condiuon
70 Moore 4, Schley." said Mr.. Ledyaru'
and laid the whole proposition belore
him He expressed the greatest concern
for the Moore & Schley firm. saying they
were a large firm, and if they fai'ed 10
man could tell how fareaching the Ell
&C.. ,,ould he I'm Wall Street He SAID
no would see what could be done. l
ae,,ad him, # he would not urge the mat
tor unon the steel Corporation people
He said he would not urge ~. but II they
wanted TO do it. all we'll and good.
"yybua was there he telephoned 10
Judge Gary and Mr.. Prick. Judge Gary
CANA soon. and Mr.. Morgan unfolded the
,rooosition TO him in my presence MI
Er,ck came. and the matter was gone
over again. Then | walked into aho'her
room while the three men were con-
ferring. OF course. | don't know what
occurred between them.
Mr. Ledyard said that Judge Gary APP
ooared reluctant to take w the matter
saving that Tennessee stock was ho'
| worth over 60 or 90.
II told Judge Gary" said tho Witness
chat didn't know what it was "orth'
that 7 thought they could get II ior %
- they waited long enough, but by that
time I didn't think the steel Corporation
would want to buy anything Par was
tbe lowest figure at which u couiu pT
| cold in order 70 save Moore q SChieS'
had been assured. ! told MN.
| Ar Iedvard said there were many
| ,onferences that Saturday and SUNDAY
among the representatives. al the steel
@,nrnnTotion There were conferences
ooInc on ut the same time AT Mr.. MOT
oan's house in regard TO the Trust COM
6anv of America and the Lincoln trust
| company, which the bankers were en-
| deavoring 20 rehabilitate at that time
he said Judge Gary and Mr FLICK went
IA Washington Sunday night.
Nioht Wall in Morgan's House.
Tho witness was AT Mr.. Morgan's
,o,,ea until < o'clock Monday morning.
,,ben he went home and tried To get
eome sleep. but finding II impossible 10
eleen he went out and got cup of coffee
aud then returned to the Morgan house.
Mr. Morgan had said that he expected
% hear from Washington by 9 o'clock.
and 70 come back by $50 o'clock. The
word didn't come at that time, but Mr..
Iedvard heard through the Morgan
omce that afternoon that 1T was all
right"
rbe transa ction was agreed upon that
Monday afternoon at Mr.. Morgans
house. as Mr.. Hanna previously testified,
and the papers were signed the follow
| inc Wednesday night.
Later, at his own suggestion. the wit
nces said. three men came forward and
each nut UP. securities with J. p. Morgan
! q. 90 10 the amount Of 100000, and
Mr. Morgan was made arbiter Of this
| fund. TO use II as he saw 1T provided the
| transfer of the United States Steel stock
for the Tennessee stock did not prove
sufficient to save the Moore 81 Schley
firm. II was IN the nature OF n guarantee
| fund on top of the transaction. but never
! had 10 be used the witness said. Colonel
PAYNE was one OF the three men who
! nut up $1.000,000. Mr. Ledyard said.
! Not a dollar Of commissions was paid
| IN ANYBODY in the whole transaction, tho
| witness testified lie said that one or
| the largest loans of Moore 81 Schley had
| been made 10 them by j. = Morgan &
| 90 and that that firm had never called
| on them for payment or made objection
| 10 their collateral which included Ten
! much he did not know, y.