The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1911-10-27
properties of the Tennessee company,
already recommended to Mr..

corporation, mat II acquire the prop"
critics Of the Tennessee company.
Moore & Schley Of New York city. was
one Of the syndicate holding q ma
jority of the stock. This was known
to the officers of the corporation.
Moore & schley, in October, 1907. ow-
ed large sums of money in New York
and elsewhere. from $4,000. 900 to
~$38.0O0.0oO upon call and time loans
Some Of these loans were partly Sc
cured by pledges Of 100, 900 shares Of
Tennessee stock. the amount .fluctuat-
ing.
I'm October. 1907. a: great panic
came and New York was the storm
center
Those in control of the corpora
the affairs of Moore & Schley, and of
their holdings of Tennessee stock.
The credit Of Moore & Schley and the
character of their stock holdings, sue
as Tennessee stock, Republic Iron and
Steel stock, and other industrials. was
discussed on the street and among
bankers, and the question of their fail
was specially subjected to criticism,
and in Wall street parlance. was
hammered as a collateral. H., c.
Frick and E. H. Gary, representing the
corporation, took up the negotiation
with Schley for the purchase of the
syndicate stock of the Tennessee COM
pany. offering him first the equivalent
of so cents on the dollar and after
ward IS cents on the dollar in cash for
the stock, which Schley declined.
Oakleigh Thorne. who was president
Of the Trust Company of America, a
New York institution, was one Of the
syndicate that purchased the majority
of the stock of the Tennessee COM
pany, having subscribed for 1850
shares.
I'm a New York paper of October
Trust Company, of America Among
other things it said that at a meeting
the night before of the chief bankers
of the city, headed by J. p. Morgan
and company, it was formally decided
that the point then needing buttress-
ing was the Trust Company of Ameri-
ca, and that this determination was
ing George w. Perkins Of J. P. Nor
gan and company had been in COM
ference subsequent to said gathering
Of bankers. A part of the article sub
headed The Official Statement said:
The chief sore point is the Trust
Company of America
After expressing confidence in the
VI ~ SOA1ktIO1ky LIN va
ing that it would be aided, and that
cash had been guaranteed therefor,
1t was stated that these steps were
taken for the purpose OF announcing
that the company would be. taken care
Of if an examination into its affairs
which had been authorized. showed
conditions to be as sound as there was
every reason to believe them to be.
This announcement helped material
~ to cause a run on the said Trust
company, and aggravated the general
uneasy condition, and made the po-
sition Of Moore & Schley more desper-
ate. 1t was generally known that
Thorne n Schley were members Of
the Tennessee syndicate.
Regardless of the intent in giving
out the statement-and the facts are
not sufficiently known to make any
charge in this regard-the fact is that
1t contributed directly and strongly
toward bringing Moore & Schley to a
point of imminent failure, although
they were amply solvent. Their cor
dition had become desperate. 1t be:
financiers that their failure might pre-
cipitate a general crisis. they. j. p.
Morgan and company taking the lead.
exerted themselves by advances of
ready none to meet pressing de-
mands and otherwise to prevent their
suspension. Much OF the effort, how
ever. revolved about the proposition
for the corporation to acquire the
stock Of the Tennessee company.
Nothing less than the control Of the
Tennessee company was considered by
the corporation. and negotiations pro-
ceeded rapidly and steadily to that
end, 1t being represented to Schley
that in no other way could relief be
brought to him."
The power and control that have
been exerted by the corporation large
~ through the grasp Of its tenaclee.
thus thrown out upon the consumer,
competitors and capital, is incompati-
BILE with the healthy commercial life
Of the nation.
The filing of the suit was a bomb
said. that only four men knew of It.
Attorney General Wickersham, his
secretary, Frank Cole. and j. NJ. Dick
inson. former secretary Of war, the
governments special counsel in the