The evening world., 1911-08-02

NO"
was Moore a schley the subject OF
attack Don't anewer until I remind
YOU OF the testimony you gave in the
nat hearing" Mr.. Littleton then
read Mr.. Schiey's former testimony In
which he had said the firm was OPP
pressed by umors, and the subject OF
"~harrassing demands"
we had So. 900. o0o OF loans out. That
fact Is the best answer 20 the question
as TO whether we were the object of at
tack said Mr.. Schley.
We'll. then. will you tell the com.
mittee why the tranefer OF T. G. and J.
for s pcr cent. steel bonds was neces-
sary for the saving Of Moore a schleyr'
People who had borrowed money
from US couldn't max good IN T. c. q
l. collateral. When they got the bonds
they could make good. That was all"
Gould borrowers on other collateral
make good7"
Not all of them"
Then you had Just as much reason
for negotiating the sale OF Republic
Steel or any other Industrial as o had
for selling T. c. n 1,7'
There was more OF Tennessee h a
of the others"
Was there any particular reason
why r. G. & I. should have been sin
gled out from other collateral TO become
the subject Of the trader"
For me, yes" said Mr.. Schley. 1T
would have relieved me. my friends and
our closest associates"
Why couldn't YOU have borrowed
these bonds from United States Steel
instead OF selling uot7"
COULDN'T HAVE SOLD BONDS
THEY HAD BORROWED.
Because we couldn't have sold bor-
rowed bonds
Suppose they had loaned you $780,
Schley7"
Taking T. c. & I. in RETURN" asked
MIR: schley In turn.
NO."
Just n bald ioanr'
Yes"
why. I wouldn't have had the cheek
to suggest that" said Mr.. Schley.
rNever mind the cheek. Would such
a loan made with the sole object of
saving Moore & Schley have accom-
plished It's purposes Remember. the
saving OF your firm was the only object
o fthis transfer"
Was there an offer Of the steel cor
poration or Judge Gary OF 5000. 900?
You told the Senate Committee that
such a loan would have saved your"
Not to me. Mr.. Ledyard said some
thing OF u a loan In case we put up
certain security. I told him ! couldn't:
II wouldn't work out"
who suggested the sale Of r. C. & I.
to the steel Corporation" asked Mr..
Littleton.
"Col. Payne"
what did he say7'
He knew ! was worried and dis
tressed. He said. why not sell out to
T.. :. steel. Life is too short for all this
worry Let It CO."
GATES OFFERED TO LOAN $4,000.
900 IN BONDS.
did m member OF your syndicate
oner assistance? John w. Gates. for in
stance2'
Mr.. Schley told OF a cabled conference
with Mr.. Gates, at the end OF which
nv. Gates offered him s3.OOO.OOO In bonds
rs a loan.
Il wouldn't take IT," said the wit.
ness.
WAS Col. Payne dlstressed?' asked
Mr.. Littleton.
mot for money" said Mr.. Schley.
He was a good friend of ours. lie was
distressed for us"
After he had proposed the sale to Mr..
Ledyard. Mr.. schley said. Mr.. Ledy,rd
went to see Mr.. Morgan. Then Judge
Gary and Mr.. Frlck came to see him.
Judge Gary said he thought the
stock was not worth more than co. !
argued with him. but not for dong. He
said that was about the best he could
do. and they went away"
Later. Mr.. Schley said. Judge Gary
offered 10 IN bonds, The previous Of
fer had been OF cash. MIR. Ledyard
then had a consultation with the s.eel
men On the Sunday of last week OF
the panic. and told him Gary and
Frick would pay va, The syndicate
members didn't want TO let 70, but
under existing conditions were willing
to do so.
How aid the sale" asked Mr.. Little
ton for almost the twentieth time, did
the sale OF T. G, Il ]. save your
"It put me In possession OF many
millions OF dollars and enabled mo 20
reduce our Indebtedness.
LAS 500 as l got the bonds I sold
them. my own first and Kessler's next.
] raised about ts,oOo,ooo in a very shor,
time"
, why sell Kessler's?'
"Oh, he was willing 10 do what wa
right" said the witness with n dry
/, grin. That Is. so far as It was ther
possible for him to do right"