The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-07-29
HANNA KNEW NO
ULTERIOR MOTIVE
Says Tennessee Company Was
Absorbed to Avert Financial
Panic.
MOVE SEEMED NECESSARY
Does Not Believe Rumor That
Stock Was Deliberately
Hammered Down.

New York. July 2S.-No Interior mo-
tives lurked behind the taking over If
the Tennessee Coal and Iron Company
by the United States Steel Corporation
during the financial panic OF 1907. in
the opinion of l. c. llama, of Cleve-
land. one of the syndicate owners O..
the Tennessee concern before the mer-
ger who spent the day on the witness
stand before the steel trust lrvesti-
eating committee OF the House OF Rep
resentatives.
That surrep,itious motives had been
suggested, Mr.. Hanna. Who is brother
OF the late Senator Mark Hanna az
United. but he never had credited the
reports He believed the transaction
was necessary to avert the failure OF
tho New York banking end brokerage
firm OF Moore & Schley. who held too
much Tennessee Coal and Iron stock
Us collateral for loans, and to avert
wild spreading of threatening business
disaster
In answer to series of questions by
Representative Beall. OF Texas. Mr.
Hanna said ne thought the Congress
man believed plot had been framed
whereby the Tennessee Coal ana Iron
Company would lie gobbled UP by the
steel interests. but he had no knowl-
edge OF such a plot and did not credit
such an idea. lie declared that he still
wished he could have held on 10 his
stock. but" he added, "it seemed abso-
lutely necessary 20 sell it TO avert seri-
Gus trouble"
Before tho threatened failure OF
Moore & Schley" asked Representative
Beall. had not the United States Treas
ury poured S5O.O06.ooO into New York
TO stor the ranic?"
~ think So" Mr. Hanna replied.
also before that time" Mr. Beall
continued, had not Mr.. j. Pierport
Morgan and his associates advanced
S6.co0,ooo TO relieve the financial situa-
tion?"
Il heard IL SO stated" said MIR. Han
After all tina; the panic was not
averted.' Mr. Beall resumed, "and can
YOU tell me why the taking up OF only
$4,000, 600 in loans on the tennessee
Coal and Iron Company collateral of
Moore and Schley effected that restora.
non OF confidence in the business world
which the United States Treasury ana
inc Morgan millions had been unable
10 do?"
The only explanation" Mr.. Hanna
replied after some hesitation. lis that
'"o Puhic up to That time had not
reached that character of business
houses. which were involved in thJse
Representative Gardner. Of Massa-
chusetts. also questioned the witness.
The report has been current" said
Mr. Gardner. that an attenpt was
made BY persons dasirous OF acquiring
the Tennessee company to discredtt
mat concerns stock in the banking
world and 10 induce banks 10 make i'm
perative calls on loans secured by that
STOCK for the purpose OF hammering
Gown the Tennessee price so that II
might be acquired by the United States
Steel Corporation Did you ever hear
mat the deal was 4 deliberate drive?"
I've heard gossip about n" Mr.
ltanna said 81 think heard Mr.
Gates discuss it, and probably Others
talked about the rumors afterward
never felt that way myself ana ala
not believe any one would have been
80 too!!sh or SO dishonorable as TO AZ.
tempt such thing"
Tomorrow Lewis Cass I.edvara
counsel for oliver Payne, Grant B.
Schley and the Tennessee Interests IN
me 1907 TRANSACTION. VIII tes,if, 49,
VIII + w. oslebay. another membrr
81 the Tennessee syndicate, who vas
Hresent to-day