New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-12
Witness Suggests Government
Bureau as Solution of the
Present Trust Evils.
TR0RNE ON THE STAND
Forcibly Declares That Trust
Company of America Was Not
Chief Sore Point" at the
Time of T. G. g. I. Deal.
/ From Tho Tribune bureau !

ment commission or bureau as a possible
solution of present trust evils. Such super
vision. he thought. would go far toward
bringing about better conditions in the in
dustrial world and the restoration both of
business and public confidence.
In line with Mr.. Perkins's suggestion
Representative Littleton said that a reso-
luton would be introduced soon to bring
about an inquiry into the Industrial stua-
tion In this country. Mr.. Perkins said that
the Littleton announcement was the best
news he had heard in long time.
Il think the mere question of limelight
is an important thing said Mr.. Perkins.
1T would eradicate many OF our troubles.
If there exists a law requiring that cor
poration doing an interstate business
should register its actions here at Wash
ington submitting its operations, balance
sheets. treatment OF labor. etc, public
confidence would be restored and such
plan would go long way toward preserV-
ing the good that already ia self-evident in
these big corporations
Representative Young suggested that
such a bureau should conduct its inquiries
in the open and not behind closed doors
a statement which met Mr.. Perkinss APP
probation The fnancier said that there
was no proba bility of getting at any time
in tho near future uniformity of state in
corporation laws
Oskleigh Thorne on Stand.
Oakleigh Thorne. president Of the New
York Trust Company of America, which
became involved in the financial panic OF
1901. the affairs OF which have been linked
with the taking over Of the Tennessee Coal
and Iron Company by the United States
Steel Corporation at that Crisis, followed
Mr. Perkins as a witness.
Mr.. Thorne forcibly declared, contrary TO
the testimony given by Mr.. Perkins and
many other witnesses that the Trust
COMPANY Of America was not the chief
sore point of trouble at the time 1t was
necessary to save the brokerage firm OF
Moore & Schley.
lie surprised the committee with dec
larations that he was certain undue at
tention had been directed toward his com
pany in that crisis, and he denied any
knowledge OF the agreement testified TO
by Mr. Perkins that the taking over Of
the Tennessee Coal and Iron Company by
the Steel Corporation to save Moore
Schley from ruin, was dependent on the
bankers Of New York raising money 10
save the other horn Of the dilemma, the
Trust Company of America and the Lin
coin Trust Company.
Mr. Thorne was examined in detail re-
lating 10 public statement given TO the
press on October %. 1907. and attributed
to Mr.. Perkins. in which il was declared
that the "chlef sore point of the panic
was the Trust Company of America" He
declared that Immediately following this
q run on his bank occurred and that the
run in one day took out sl35Oo0ON For
this. he admitted he had consulted coun-
SCI as IN the advisa blity Of suing for dam
ages persons he felt responsible. but that
he was deferred by the necessity TO seek
more money from the bankers Of New
York IN order to prevent collapse Of his
institution.
Witness Makes Emphatic Denial.
That his financial troubles were IN any
way involved in the difficulties Of Moore
& Schley at that time he empha,icslly
denied and further declared that Ten
nessee Coal and Iron stock held on col
lateral for the banks loans amounted 70
nothing in that situation
Representative Martin ". Nttleton con
Quoted the examination Of Nj Thorne
who first outlined the history Of the Trust
COMPANY Of America He said that before
the panic NJ 1907 his company had assets
Of 100000 He explained that he had
been member Of the Tennessee Coal and
Iron syndicate. end that his bank had
made loans 70 Moore & Schley which had
been paid As far az Tennessee Coal and
Iron stock was involved, in collateral on
loans Of his bank: II was nominal and
amounted 10 something more than s4rooo
Did YOU have anything 10 do with the
absorption Of the Tennessee Coal and Iron
Company bv the United States Steel Cor
poration in 1902 Mr. Littleton asked.
Absolutely nothing" said Mr. Thorne
u knew nothing about it until l met Mr.
Ledyard on Sunday. November g. and he
told me they were trying 10 put the deal
through ] heard no more about II until
after Il was all over"
Mr. Littleton asked the witness II. prior
to the panic, he had heard any criticisms
OF the kind OF business the Trust Company
of America was doing, whether 1t was diff
ferent from that of other trust companies
He said he mad not ana mat the bank eN
aminers we're in touch with the business
constantly. He said the company was
supposed 10 be progressive and aggressive
for business. Mr.. Littleton referred to the
failure Of the Knickerbocker Trust Com
pany on October %. 1907, and asked about
the condition of the Trust Company OF
America on that day.
Had st2,ooo,ooo on Hand.
we had sl2.OOOO0) in hand"
What were your Withdrawals on the
22d and 23d of that month";?
ION October p the Withdrawals were
81. 10000" Mr. Thorne replied "On the
25d, before closing time, the Withdrawals
were $i3,500coO'
He explained that on the night OF the 22d
Mr. Perkins and Mr.. Dawson. Of ]. T.
Morgan G. Co. had called at the Trust
Company OF America to look into the con-
dition OF the bank.
They examined II thoroughly and an
they were pleased 10 find the con-
ditions as good as they We're he said.
alter a committee from the Clearing House