The Sentinel=record., 1911-08-03
IESTIM|AA|NlY IE:!SiTIIM|A(A||lY\
 A SURPRISE
GRANT B. ScHLEY KNEW NoTH- ING OF PROPOSED VISIT TO
 ROOSEVELT BY MANAGERS.
Says He Does Not Believe Transfer of Tennessee Coal and Iron Saw ed His Company During the
 Panic of 1907.

New York, Aug. 2.-When Judge Hilbert H. Gary and Henry c. Prick, of the United States Steel Corpora ticn took 8 midnight train from New York during the financial panic of 1907 to see President Roosevelt in Washington about the taking over of the Tennessee Coal and Iron Company by the steel corporation in order to avert the crash of the brok- craze firm of Moore and Schley, Grant B. Schley, one of the most interested participants in the pro- posed transaction, knew nothing about the White House expedition.
 MT. Schley, who was one of the or ganizers of the Tennessee syndicate and it's associate manager. today so ~-.formed the house committee of in quiry into the affairs of the steel corporation. Tie further surprised the committee by the admission that he could not say whether the transfer of Tennessee Coal and Iron stock. upon which the brokerage firm had made heavy loans was the means of preAenting the financial demise of his brokerage business.
 Though denying any Knowledge ol the existence of an alleged conspir- acy on the part of ]. Pierpont Nor gan and his interests, or the United States Steel Corporation, or both. tc discredit Tennessee Coal and Iror stock so that the steel corporation could acquire the vast holdings o ore and coal in the Birmingham dis. trict, MT. Schley averred that wneI the transfer Of Tennessee stock t, fhe steel corporation was, suggested in order to clear up a bad money sit uation in New York he had pictured to George w. Perkins, a member o the finance committee of the stee Icorporation, how Tennessee Coal anc Iron would be of enormous value tc his corporation, how it's vast ore ano coal holdings were invaluable and how it's acquisition would enable the corporation to enter Southern stee market actively.
 Representative Martin w. Littletor interrogated Mir. Schley for hours and was followed by Representative Stanley, chairman; Young of Mich igan: Sterling of ullinois; Bartlett of Georgia and other members of the committee. After inquiring into the preliminary history of conditions that led up to the sale in 1907. MT. Lit tleton asked MT. Schley if he had prior to the negotiations, which arc | now a matter of history, gone to J Pierpont Morgan and disclosed tt him his control of Tennessee Goa and Iron Company stock.
 ''I never did,'' Mir. Schley replied
 Did you tell Mir. Perkins, MT Morgans partner, about it?" asked Mir. Littleton.
 On the Saturday before this ss--' s1s---' Mr. Schley replied that he met -,Ir Perkins and they talked glenerally about the proposed sale.
 Did you urge MT. Perkins,, con tinued Mir. Littleton, ito advocate tn sale of the property to steel corpor ation and point out to him what
 valuable property it would be?n
 'I told him I thought the Tennes see company would be a very valu able property for the steel corpora tion. called his attention to it great physical advantages, it's vas ore holdings and enormous undevel oped coal fields.'
 Now, Mir. lSciiiey, there has bee
 much conflicting opinion about tn situation," MT. Littleton proceeded Twas the firm q Moore and scheI
 facing failure at the time of thi translctica?"
 "The situation vas serious. Ou
 loans were more extended than the fought to have beea'
 Mr. Littleson read fiom lette
 written in November. iyO7. ny Pres
 ident Roosevelt 70 Attorney Geners
 Pcnapafte, ia when he related ths Judge Gary and Henry c. Prick ha been to see him and told him that
 prominent New York brokerage hou! would fail within week unless u } United States Steel Corporation toc
 over the Tennessee Coal and Ire