The Birmingham age-herald., 1911-08-12

swered. T went to MT. Morgan's office and saw Mir. Morgan, MT. Perkins, MT Stillman and Mir. Davidson there. went there primarily to get the re- port of the examining committee; but as we were practically out of funds by l ? o'clock, I also needed money. So far as I know the examining committee had not made any report 10 MT. Nor gan"
 One million dollars" Mir. Thorne said was loaned him by J. P Nor gan & Co. the First National bank and the National City bank. MT Thorne added that he had obtained s1, 300, 900 that afternoon from the Hanover Ma tional bank. which tided the situation over until closing hours. He explained how that afternoon Mir. Morgan had called the Trust company presidents of New York to meet at the Union Trust company and he was called in, He met there Morgan. Stillman, Wood ward, King and other bankers
 An arrangement to loan him s10, 100000 on s2o000,000 of securities which a committee of the bankers was to select followed. A contract was made for this loan, the original of which MT. Thorne submitted for the record The following morning he re- ceived s6,00O,000 of this loan and the remainder in various sums up to Oc- tober 31
 Reviews Another Loan
 He reviewed another loan for s15.- 000,000 on s30.000,000 securities ad- vanced by the bankers on November & but paid to him in various amounts from time to time. He explained he never knew where the money actu- ally came from and that MT Morgan, Mir Perkin and the others who were raising it had great difficulty in get ting it.
 MT. Thorne also told how he be- gan paying back the loans as rapidly as the Trust company securities could be realized on. Some were paid be- fore the end of that October, and all the loans were cleared up by the fol- lowing August and the securities re- turned. At the present time, he said the Trust company had assets of $43,- 900 900.
 Mr. Llttleton had put in the record statement given to the press by MT. Thorne on November 9th in which he alluded to his utter amazement" that the chief force of the panic had been directed against the Trust Com pany of America, "a run unprecedented in the history of American banking. The statement printed in the Times was again called to his attention and MT. Thorne was asked if he had made any reply to it.
 No. at that time I was too much interested in trying to get money to make arguments" he said. He added that many persons had told him they believed the newspaper articles had precipitated the run on the company.
 Mir. Littleton asked the witness if he had conferred during that time with Melville E. Stone, general manager of the Associated Press. He said he had.
 q had never known MT. Stone until the time of that panic" MT. Thorne stated. '1 met him then and went to see him practically every day. l in- sisted that the Trust Company of America was solvent and the examiners who looked into the condition of the company should make a report. It was my idea If the report showed the com pany solvent we would be taken care of"
 Were you endeavoring to have knowledge of your condition wide spread?"
 My idea in talking to MT. Stone was to urge the necessity of the exam ming committee making a report to MT. Morfgan. I knew if the truth of the situation got to MT. Morgan we would get help. When later he did get. the truth we got the $15,0O0, ,000." Asked if he had received com munication from MT. Stone regarding | that matter, MT. Thorne said he had, and he produced it. It was read into the record written under date of November 1s.l9o7. In the letter MT. Stone said:
 What Stone Wrote | "I have no doubt that Mir Perkins statement of the night of the 22d dis tinctly emphasized the run on the Trust | Company of America, if indeed, it did l not preciptate it. l do not mean by this that I think there was the slightest pur- pose on the part of Mir Perkins to injure you or the Trust Company of America
 But we felt that the statement was SC injudicious that we did not send it out
 Later when said to Perkins that thought it was very hurtful. he justified it on. the ground that the conditions were so strained that if public attention hac not been centered upon the Knickerbock CT Trust and the Trust Company O.
 America, every bank in New York prob ably would have been involved. l thinl
 the whole thing was a mistake, mos
 unfortunate mistake. for which you ha'
 to pay heavy penalty, but l do no
 for moment imagine that there wa any. malice involved In it.
 Tt is your opinion them Represents