The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-08-12
TRORNE GIVES
ALL THE BLAME
To Mr.. PERKINS
Charges Him With RESPONSE
bility for Run on Trust
Company
RUMOR RESULTED IN
T. 6. AND /. ABSORPTION
Financier, However, is Ac-
quilted by Losing Bank
er Everything, but
Stupidity

/ SAN f(lAit
/ WASHINGTON. d. c.. Aug. Ii
0akleigb Thorne. president Of tho
/ IFust Company of America, today
| fatty charged George W. Perkins with
4 responsibility for the run on his con-
Germ during the panic of 1907
IL was in consequence of the run
/ on the Trust Company of America.
that the steel trust absorbed Tennes-
see Coal and Iron. The allegation is
( that the latter move was necessary
10 save the trust company from CO.
Ing to the wall.
/ According to Mr.. Thorne. who tes-
! tilted at to-days hearing OF the STAN
! ley steel investigating committee, ie
was through Mr. Perkins that a state
/ ment was given 10 newspaper that
/ tho Trust Company of America was
sore spot In the panic situation.
I but that aid would be given it,
+ Less than two hours before this
statement is alleged to have been
made, Mr.. Thorne swore to-day he
+ had told Mr.. Perkins that the trust
company was in good shape. The
publication. Mr.. Thorne said, started
run on his concern. which had to
I borrow $27 500. 600 to save Itself The
absorption Of the Tennessee Coal and
/
was the concern whose collapse it
was represented To Roosevelt would
| bring down the pillars of the tinan-
eiai temple
MIR, Thorne had only got fairly
launched on his dramatic story Of
the stormy days of October, 1907,
when the committee took recess
! until tomorrow.
Perkins Grill Ends.
Prior to his taking the stand Mr.,
Perkins three days grflling was
brought t. an end.
+, In his testimony o-day Mr. Per-
| kins embraced the doctrine OF full
/ publicity as to the affairs of CORPORA
tons He told the committee that
mission through which the llmelight
Of publicity could be thrown on the
business OF all great corporations.
| This would eradicate all that was
evil IN them and preserve their vir-
tues.
lie does not think it possible to do
away with abuses through uniform
state action regarding corporation
laws.
Representative Martin W. Little
announced there would be introduced
IN Congress soon ii resolution crsat-
ing a committee for a searching in
! V@Stlgation Of Industrial conditions In
THIS country involving both capital
ana labor to the end that laws may
be framed fair to business and TO tina
nation.
Mr. Perkins gave enthusiastic an
proVal to this suggestion. and said
that the steel corporation would aid
in every way.
! ,.a.. Somss.ny ia coed shane, ss.,,sas !.
Mr. Ihotne.s examination was con-
Quoted by Mr.. Llttleton. He told
OF the organization OF the Trust Conn
pany Of America, Of which he has
been president for the past six years.
! Inc assets of the company before the
Lanie were about $4,000. 600. The
company owned no T. c. q l. stock.
although Mr.. Thorne had bought
some as an Investment At the time
OF the panic the trust company had
some OF Tennessee's stock as colIat-
eral for loans
II was not necessary" asked Mr..
| Littleton, ito exchange some other
save the trust company
1t was not" said MIR. Thorne.
| This was the reason given by Gary
| and Erick to President Roosevelt TO
| get assent TO the deal.
As an owner OF the Tennessee
stock, You awaited yourself of the
exchange Of these securities for steel
/ ~ 0s-t ptlSASs dShEQ MT. ll[LIAtOl,
| II did,"
You had nothing to do With this
! Tennessee deal?"
Il had not
| Was your trust company doing
any business not strictly legitimate
| prior to the panic?"
| We were not. We We're progress
sive and aggressive. that is ALL" said
Mr.. Thorne we thought we were
| the panic. We had assets of s74,000,,-
/ GOO with two millions capital and
Ss,ooo.ooo surplus We had $4,000
| 600 or so in cash. l told Mr.. Perkins
/ the night of October %. that he
could have an examination made OF :.
| my trust company and he sent ex-
| aminers."
Story Starts Run.
| Then Me Thorne told OF the pub
| LEGATION OF a story in New York papers
| October "a that his trust company
| was In bad. but would be helped. Thu
run started Immediately. During the
| day they paid cut s13.5oo.0o0.
did the examining committee sent
| by Mr., Perkins ever report2" asked
AIR. Littleton.
II never have heard of any re-
port?" said Mr.. Thorne. About two
o'clock borrowed ono million from
Mr.. Morgan and $1,500,00 from the
Hanover bank said Mr. Thorne.
And deposited Trust Company securi-
ties for the loans. The next day the
| bank presidents. Morgan. Stillman
and others. agreed TO lend me 49,
100000 on $50, 5000 securities On
November s. + borrowed sI5.00,00O
from the Union Trust Company. but
did not know that Tennessee stock
figured in these loans
The loans were all paid of by Au-
gust. 1908. The company has II
home which cost $4,000, 900 and about
$6.a00.0o0 surplus.
Mr.. Thorne told Of his converse n
tion with Melville r. Stone, a. =
Acontinued on Third PAgAl