New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-29
LIGHT ON STEEL DEAL
Leonard C. Hanna Explains Ab-
sorption of Tenn. Coal and Iron.
NO SQUEEZING, HE SAYS
Plan Put Through in j. P. Nor
gan's Library to Avert Impend-
ing Financial Panic.


Leonard &. Hanna. Of Cleveland, a
brother of the late Mark Hanna. was the
only witness examined yesterday at the
first public session in this city Of the House
committee which is investigating the Unit
ed States Steel Corporation. Mr.. Hanna
was an associate manager. with Grant s.
Schley. Of the syndicate which controlled
the destinies of the Tennessee coal ana
Iron Company and acting with Mr.. Schley
he brought about the deal by which all oil
the 900 of stock Of that company was
transferred to the United States Steel Cor
poration during the panic in the fall of
1907
Representative a. Owsley Stanley. OF Ken
lucky, chairman Of the committee, ana
various members OF the committee bonn
barded the witness with questions all day
long. with the sole purpose Of letting IN
more light upon the details Of that trans
action and ascertaining with more accu-
racy than the previous testimony before
the committee in Washington would permit
its general causes and effects. Mr. Hanna
proved to be a patient and willing wit
ness
There were a few pertinent questions
pertaining 10 the beneficial result which
the witness contended the transfer Of the
syndicate stock 10 the Steel Corporation
had I'm relieving the panicky conditions AT
the time which the witness failed to an
swer with the lucidity desired by the com
mittee The chairman and his associates
reverted 10 this particular point with un-
trims regularity. and Mr.. Hanna said that
some one better versed I'm inancierng and
I'm the economic side Of the financial con
ditions Of that time might enlighten them.
Representative Jack" Beal the man
from Texas on the committee. asked Mr..
Hanna 10 instruct him little in New
York fnancering. MIR. Reall obtained from
the witness the admission that the year
1907, until the dark clouds arose in the fall,
had been one Of unusual prosperity I'm the
steel business. and that generally through
ont the country an era Of prosperity
reigncd. The Tennessee stock was per-
haps less affected than great many 9th
ers by the oncoming panic. the witness
said
Done to Avert Panic.
Now" said Mr.. Beal 1T is on our
records here that the Treasurer OF the
United States turned 100000 into the
New York banks at that time to relieve the
strain, but that didn't stop the panic, did
it,
Mr. Hanna answered in the negative.
And we also note that Mr. Morgan. OF
the interests he represented. put some So. =
OO00H into those same banks, but that
didn't stop the panic did it,"
Mr. Hanna agreed with the Congressman
again
well. then. can you explain clearly why
this transaction, which ostensbly. as YOU
have testified. was entered into to save the
mere 100000 or 100000 worth OF Ten
ncssee stock which the firm OF Moore q
Schley had NJ as collateral for loans.
proved TO be the turning point in stemmng
the tide and finally stopping the panic"
The witness replied that the situation
was acute at the time and that the failure
Of Moore Il Schley would have been the
spark 10 start a much larger conhagra-
ton. In avertinz the failure of a large
firm Ike Moore & Schlcy other firms were
saved. he said, and conditions gradually
readiustcd themselves. Despite the fact
that the steel Corporation and other
parties had offered TO loan Moore & Schley
s.. $4,000 or 8 600. coo I'm cash at the time Of
their stress. the witness did not consider II
peculiar situation that they should
prefer a transfer OF the Tennessee stock to
cash. az suggested by the committeeman
Referring to a statement which the Sec