The Sentinel=record., 1911-08-03
Company and thus came to the res

"Die yor kncsN that Mir. Gary and MT. Prick had gone to Washington to see the president?" MT. Llttleton asked.
 T didn't know anything about 1t until the day following Monday.
 Did you tell anyone before that expedition that Moore and Schley would fail the next week?"
 q did not" Mfr. Schley answered.
 Did you know that MT. Gary and Mir. Prick were going to tell Presf- dent Roosevelt that brokerage firm in New York vas about to fail?"
 T certainly did not.
 Did you hear of a conference or bankers in Nex York planning to come to the rescue of Moore and Schley?" =.
 T knew of the conferences at Mir. Morgan's house and that there was a question as to whether they should go to the rescue of the Trust Conn pahy of American or Moore and Schley fiSst.'
 Wall, are you prepared to say that the failure of Moore and Sch1ey was prevented by the sale of the TenneTse Coal and Iron Company stock to the United States Steel Cor poration?"
 No, I cant say that" was MT. Schley's answer
 Tn the long examination 1t develop ed that the Tennessee GSal and Iron stock was only a small portion of industrial coc.deral put up with oth- CT high grade stock and other indus trials for Moore and SchIey's loans. No loans were made on the Tennes- see stock alone.
 In response to Representative Young as to why a ban from the steel corporation would not have sufficed to save Moore and Schley, MT. Schley declared that it would have necessi- tated the payment of the money in a short time and involved further diffi- lculty. As it was they converted what they regarded as the weakest collateral into cash and with $lf,- 100000 realized immediately cleared up the situation.
 Mir. Littleton cited Judge Garys testimony that he had offered to loan II five or six mNIen dollars to Moore and Schley. Mir. Schley said he had an ind'stinct recollection of an offer of that kind as to certain collater- al. MT. Ledyard, he said, told him five CT six millions woul2 be loaned on certain collateral.
 My recollection is," said MT. Schley that the percentage of collateral de- manded was too great. I am not very clear about it." Was this offer by Judge Gary of a five million loan?''
 'iAs I said. the only offer re- member came from Mir. Ledyard. .'
 Mir. Schley told of refusing an of feS of s3,oO0.Ooo by John w. Gates to aid in the trouble.
 MT. Gates told me he had three million dollars worth of bonds in his office that could go and get if ne- cessary," Mir. Schley said.
 He asked me about the situation ana put the bonds at my disposal. I answered him that would not take them ],
 How did the offer of aid from MT. Gates come to you?" He cabled me" He had left the bonds here then before he went away?'
 Yes"
 When asked why he did not take advaI tage of ~r. Gates offer, Nh Sehley sard he did not want to ac. cept gratuity.
 MT. Littleton asked if Moore and Sohley had mp any more Tennessee stock as collateral than it. did Amer. ican Tc-. aeco stock.
 "Yes. more" Mir. iSchley said.
 More than Republic Iron ant Steel?"
 Yes I think so."
 What other industrial stocks dit Moore and Schley have up?"
 "Is 1t necessary?' Mir. Sehiey said appearing impatient, flor you to m quire into a,s that, MT. Littletony MT. Littleton said he did not wan to embarrass the witness, but h. wanted to find out what relation th' Tennessee stock bore to other indus ltrial stocks involved in the loans.
 MT. Schley said the Tennesse' stock was the heaviest industrial in volved.
 Regarding the negotiations for tn transfer of the property, MT. Schle said he suggested that MT. Ledysr call on J. Pierpont Morgan and tel