The Detroit times., 1911-07-28
HANNA IS QU|zzED
ON STEEL DEAL
1.o.her Of Former Senator Tells Of
Events That Led Up to AbsOrp-
ton Of T., G. al

NEW YORK. July 2s,-The story Of
ne midnight conference at the home
81 j. p. Morgan which resulted In the
swallowing up of the Tennessee Coal
4 Iron Co, by the steel trust, after
Ebert n. Gary and Henry @, Prick
had visited Washington, and secured
Efesident Rooseyelt's approval, was
related to tho Stanley congressional
committee TO-DAY by l. c. Hanrn.
brother OF the late Senator Hanna.
The witness told OF the buying OF
the r. g. q l. Co. by the Syndicate
81 which ne was q member, and OF the
1eyelopment OF the plant. 1t vas be-
coming a powerful factor In the steel
trade Of the soiuk and west and had
big order from z. II. Hartman. he
1aid. when the financial depression
came. The banks called loans Tor
which stock OF the company was
pledged. he said, and 1t became neces-
sary TO let the steel trust absorb the
concern to save the firm OF Moore
e Schley.
Hanna said that at the meeting In
Norgan's house at which the steel
trust landed its most powerful rival
Morgan himself was not present.
Hanna said he had been In the ore
business all his life and he held 10000
shares OF stock in the original i. G. l.
pool.
sWhy did you buy this stock?"
Hanna was asked.
because the valuable mineral lands
held by the company made II good
Investment. During tn elast ten. years
ore lands have constantly increased
ia value"
Hanna said he was familiar with the
Superior ore fields.
In discussing the mineral resources
OF the Tennessee Coal & Iron Co.,
Hanna declared that when his syndi-
cate purchased the stock it had been
Estimated that the company controlled
between four and Ave hundred million
tons OF iron ore and one or two thou
sand million tons Of coal. He declared
that the purchase was made solely
with the idea of developing the prop
erty.
ibid you employ Morgan or any
other syndicate manager to noat
bonds and finance the deal for YOU"
asked Stanley.
~The financing OF our company
1ever cost as even postage stamp,
declared Hanna.
you didn't pay anybody to float
your stock?"
NO"
ibid you have any provision in your
nharter that would enable you TO buy
Or sell your stock 80 as to affect the
market prices?"
None at all"
Hanna described the plant OF the
Tennessee Coal q Iron Co. as not
modern. The object OF the company
was to develop the physical plant
10 dispose OF the enormous mineral re-
sources. He declared the combina-
ton OF ore and coal in the Birmingg-
ham fields made the manufacture OF
steel possible at low cost, He said
the company was making rails by the
open hearth process and was improv-
Ing the quality TO point where they
were able TO charge one dollar ton
more for rails than was paid for Bees
semer steel
ibid you get any contracts at that
price,.
Yes. we had very respectable or
der oboked the last gear we were In
business. Many southern roads were
buying rails from US and we had an
order for 1877, 500 tons Of rails for Z.
RI. Hartman at a one dollar advance
over the regular market price,
"How long after you received the
Hartman order was 1t before your
company began to have trouble with
WaIl-st?"
Not many months"
Hanna outlined the improvements
made TO the plant, saying some ten
million dollars were spent The COM
pany had no bonded Indebtedness. hav-i
ing raised its capital by selling stock
to holders OF record. He denied the
plant was obught as a speculation, say
Ing It was purchased to build up
profitable business.