The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-07-29
MIR. Hanna is Grilled by Com
mlttee on Cause of the
Panic Of 1907
.CORROBORATES ALL
THAT HAS BEEN SAID
Reiterates Story of Millions
Poured Into 1.-THE Street"
by Government and
Big Financiers

NEW YORK, July 2S.--"It Is a
fact. is it not hat the government
through George Il. Cortelyou. then
secretary OF the treasury, had come
10 the relief OF the strained financial
situation by pouring s5Q,000.0o0 into
the banks of New York and thai
President Roosevelt in Il public letter
congratulated his secretary Of the
treasury for this urse which. he
declared had averted a panic
That Is "a matter of record
1T is also IA fact, Is 1t not, that
j p, Morgan and his associates mad
poured sixty millions at the amt
time into the banks here to calm the
storm pr
THAT also is Il matter Of record"
1t is a further fact. is it not, as
testified by L. II. Gary. at ii hearing
before his committee in Washington,
that his corporation offered to %
Moore and Schley S5,90e, 600, that
Colonel Oliver H. Payne offered to
loan Them another 100000, and
hlIAL wv ObtiHt RCA Suns IA ~ lAo SNNiA
offered Moore and Schiey a 81 .o00, 900
to tide them over the period Of
stress r.
1T has SO been stated By Judge
Gary"
Tell Us. Mr.. Hanna.
Then, why. MIR. Hanna, diu the
Tennessee Coal and Iron Company
have to sell out to the United States
Steel Corporation In order 10 avert
an even worse panic than was pre-
vailing here at that time You say
the banks were pressing Moore ana
sehley to take up their loans OF about
5000. 600 on Tennessee Coal and Iron
stock. TIE do this. You say that Moore
and Schley had 10 convert their Ten
,assssaae Coal and From Company stock
into United States Steel secon mort
gage bonds bearing 8 per cent. You
say further that Moore N SchIey
eonld not make this conversion under
the syndicate agreement, which held
the majority STOCK or the tennessee
Company In a close community OF In
terest. without the consent or all the
other holders of that stock, and hat
therefore I o save Moore and Schtey
you. as one OF the TWO managers OF
the syndicate consented To the alb
sorption OF YOU company by the Steel
Corporation. Is that right
Perfectly right"
Then tell Us, MIR. Hanna, why ana
how ii was that after the governments
millions and those OF the Morgan crowd
had failed to avert q panic, the enab~
ling of a single firm here In New
York-Moore and SChiey-to satisfy the
demands OF the bank stopped the panic
Their raging. restored confidence ali
over the United States and set the
wheels of industry to humrning again?"
Mr.. Hanna Tells.
Because" answered Mr.. Hanna.
hesitatingiy. had Moore and Schley
failed many other banking and brok~
eraugss houses w&Ssl0 have HI dew I'll
In the ruin.
And tina was the only explanation
the special congressional committee
that is investigating the steel trust
could get out of Leonard c. Hanna,
of Cleveland. a brother OF the late
Mark Hanna, of the cause that con-
tributed to the giant trust. gobhling
up It's only rival, with immunity from
the operation OF the Sherman law as
sured it in advance by President
Roosevelt.
Under close questioning by Chair
man Stanley and. Representatives
Gardiner and Sterling. Mr.. Hanna re-
peated the now familiar history OF the
" itAbAf'ii VA Ait ~ Nht1d Va AAAC
events that preceded the absorption OF
the concern by the steel trust at the
wind up of the 1907 panic
Comes at Close.
II was only a few minutes before
the close of the afternoon session that
a persistent effort was made to pin Mr..
Hanna down to some definite state
ment of the reason why the Tennessee
concern was passed ver to the trust
in order that, by saving Moore and
Schley from bankruptcy the whole fl
nancial and system OF the country was
restored TO a safe and sane basis.
Mr.. Hanna volunteered that Grant E..
Schley would be well enough to ap-
pear as witness before the committee
next week.
Il guess you would better ask him
all about It," said Mr.. Hanna. Rich-
ard V. I~4indabury. counsel OF the Steel
Trust, lowered close to the congress
sional committee all day. 1t was at
first thought hat the steel trust law
yer was III rnerfber on the committee,
so intimately did he address the mem
bers and offer them assistance.
No announcement has yet beer made
regarding the committees purpose as
to quizzing ex-President Roosevelt.