New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-03


firm looked more kindly upon the Ten
nessce Coal and Iron stock than other
bankers, and accepted more of 1t as coll
lateral The Moore & Schley firm had
loan varying from 100000 to $1,000
600 with the First National Bank, the
witness said.
Mr.. Schley related in detail the part he
played in the negotiations for the trans
fer of the Tennessee stock for bonds or
the Steel Corporation. He was associ-
atcd with l.. c. Hanna as manager OF
the Tennessee syndicate. The first syn
dictate formed took over 1880 shares
Of Tennessee Coal and Iron. That was
in 1905. A second syndicate was formed
by the same men, with one or two ex-
ceptions. year later. and bought 30,ooO
more shares of the stock in the market
at $50. There was nothing speculative
in the venture, the witness said, and the
individual members of the syndicate
bought the stock to hold and improve
the property, with great hopes of future
rC,urns. The firm Of Moore e. Schley
carried about 10000 shares of Ten
nessec Coal and Iron subject to loan. and
had borrowed. as a firm, on about no.
900 shares. he said.
Mr.. Schley explained that one reason
the Tennessee Coal and Iron stock was
not looked on with favor was because
George Kessler had been mixed up
with H.
How Stock Was Distributed.
Just before the panic the witness
owned personally $4,000 shares of this
stock. and Kessler owned about $1,000
shares, Mr.. Schley said. OF this about
1900 shares each. or $4,000 shares In
all, belonged in the syndicate. Repre-
sentative Danforth brought out at this
point that the syndicates owned 2O5. I1G
shares Of the Tennessee Coal and Iron
out OF an issue Of 297.562 shares. #
the balance of 81 $40, Schley and Kess-
Ter controlled the majority. He added
that Colonel Payne was the first person
10 suggest to him the sale OF Tennessee
Coal and Iron 10 the Steel Corporation.
Mr.. Schley had asked Mr. Ledyard to
60 to ]. P Morgan and ask him to get
the Steel Corporation TO take the stock.
at Colonel Paynes suggestion, he said.
Schley had conferred with Judge Gary
and Mr.. Prick several times, and 1t had
always been a question OF price between
them, he said. Judge Gary was reluc-
tant to buy at first, saying he considered
The Tennessee stock was not worth more
than so. Then he raised the price TO D,
and finally agreed to give par.
do you know why Judge Gary
jumped from GO to par?" asked NJ.
L,ttleton.
The witness said he did not, but that
he (Schley) had insisted on par
He knew nothing of Judge Gary's trip
- Washington at the time. he said.
Schley said George ". Perkins had come
to his office the Saturday prior TO Mon
day when the transaction was consum-
mated. He had asked Mr.. Perkins to
come and talk the situation over
II told Mr. Perkins that Tennessee
Coal and Iron was very valuable prop
ertv for the United States Steel Cor
poration to acquire. but I didn't think |
fully convinced him Of that fact" said
the witness He told me that Judge
Gary didn't want to buy, and he didn't
i.now what would become Of the propo-
sition."
He heard from Mr. Perkins on Monday
that Judge Gary had decided to ex-
change the stock at par for Steel Cor
poration bonds.
Mr.. schley testified that about two
weeks before the Tennessee deal Judge
Gary had transferred 81 100000 Of steel
CORPORATION bonds 70 the firm Of Moore
g Schlev for S2.00O,0n0 worth Of the
Tennessee Coal and Iron stock Judge
Gary had been offered a choice Of col
lateral for the loan and had selected
Tennessee Coal and Iron.
The committee held an executive ses-
sion after adjournment yesterday after
noon TO decide when TO call George w.
Perkins as a witness. Mr. Perkins will
go on the stand on Tuesday morning.
To-day the committee will call Clark
Williams. president of the Windsor
Trust Company. and Richard Trimble
secretary OF the United States Steel Cor
poration.