The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1911-08-03

STATEMENT
Of BANKER
Although an Interested Party,
SchIsy Was Ignorant Of Ten
nesSee Goal Transaction
(By Associated PressJ

Washington, d Ct. Aug, 8, When
Judge Gilbert II. Gary and Henry g.
Frick, Of the United states Steel
corporation took a midnight train
from New York during the financial
panic OF 1907 to see President Roose
Welt in Washington about the taking
over OF the Tennessee Coal and Iron
company by the Steel corporation, III
order to avert the crash Of The brok
erage firm OF Moore a Schley G.
IB. Schley, one OF the most interest
ed participants in the proposed trans
action knew nothing about the
Waite House expedition.
Mr. Schley who was one Of the
organizers OF Che Tennessee Coal
and Iron syndicate, and its associate
manager. informed the house com
mittee of inquiry into the affai1s OF
the steel corporation, He further
surprised the committee by tile ad
nnsion that lie could nor say wnet1
er the transfer Of Tennessee Coal
and iron stock upon which the brok
eEage firm had made heavy loans,
was the means of preventing the Il
nancial demise OF his brokerage busi
ness.
Though denying any knowledge ot
the existence Of an alleged consplr
acy on the part OF j P. Morgan and
his interests, or the United States
Steel corporation or both, to dis
credit Tennessee Coal and Iron stock
50 that the steel corporation could &C
quire the vast holdings of ore and
coal in the Binghampton district,
MIR. schley ayerred that when the
dransfer OF Tennessee stock to the
steel c0rpQratipn WAS sIggested IN
order to Clear up d bad nioifey sitllas
.tion in New York, he had pictured to
George M Perkins a mefnbereef the
Binance committee of the steel cor
poration, how Tennessee Coal and
Iron would be Of enormous value 70
his corporation, how its vast ore Yanu
coal acquisition would enabfeA the
corporation to enter the southern
steel market actively
Representative Martin W. Littleton
intewogated Mr. Schley for an hour
and was followed by RepresefftatiNas
Stanley. chairman, Young Of Michf
gan, Sterling Of Illinois Bartlett OF
Georgia, and other members Of the
committee. After inquiring into the
preliminary history of conditions
which led up TO the sale in 1907 Mr
lAttleton asked Mr.. Sehley ii he had
prior to The negotiations which, are
now a matter Of history, gone 10 /.
lPlemont Morgan and disclosed 70
him his control Of Tennessee Goa
and iron company stock
lMr LittletOn read from "a letter
written III November 1907 by Presi
dent Roosevelt to Attorney General
in which he stated that
Judge Gary and Henry G. Frick had
been to see him and told him that
prominent New York brokerage
house would fail within week ln
less the United States Steel corpora
Lon took over the Tennessee Coal
and Iron company and thus came to
the rescue.
Iid you know that Mr. Gary ana |
MIR. Flriek were going to tell Presi /
dent Roosevelt that brokerage firm /
IN New York was about to fail?" I
Mr. Littleton asked
II certainly did not
Did you hear Of conference OF
bankers in New York planning to |
come 20 the rescue of Moore and 4
Schley2"
knew of the conferences al n
Nr Morgan's house and that there
was question as TO whether they \
should 50 to the rescue of the Trust A
company Of America or Moore &
Schley first
fWell are YOU prepared to say
nat the failure OF Moore q schloy v
vas prevented by the sale of the |
Tennessee Coal and iron company
'tock to the United States Steel cor
"No"