New-York tribune., 1912-06-11
DENIES PRESSURE IN SALE
Of TENNESSEE c. 81. CO.
eorner President Of Trust Co. of
America Repeats Story of
Run During 1907 Panic.
NO CONDITIONS TO HELP
nskleigh Thorne Says He Agreed
Deliver Stock Because Told
Control Was to Pass to
- Steel Corporation.


.,v Of America during the panic OF 1907
,..s told again yesterday by Oakleigh
-rn-re 81 the time president of the in
.a,u,Io, who was a witness at the hear
a., IN ,he governments suit for the disso-
,,,,,or Of the Steel Corporation.
AZ Tborne's testimony was sought by
,,oob NJ Dickinson, counsel for the gov
~,,ent in the acquisition of the Tenne.-
-. Coal and Iron Company by the Steel
t-o,noratjon during the panic. Mr.. Thorne
,;,,self was member of the syndicate
b;cb had bought the Tennessee company
md had begun 70 develop il. when the
s,.sl Corporation absorbed its rival ir
,.r as a result OF the situation created
So tho panic and with the approval OF
President Roosevelt
One of the chief points in MIR. Thorne's :
.o.,irony was that there was no pressure
,xerciseG by any of the banks. and par
,cularly j. ?. Morgan & Co. which came
10 the aid Of the Trust Company of Amer
,ca 10 bring about the selling out of the
Tennessee Coal and Iron Company 10 the
steel Corporation. He said there was no
agreement OF any kind whereby the help
needed by his trust company was 10 he
~sndered on condition that the control nj
,he Tennessee company should pass to the
steel Corporation through Moore Schley
Told Others Were Doing Same Thing.
His share IN the syndicate. Mr. Thorne
aid. consisted at the time OF $500 shares
ir the Tennessee Coal and Iron Company
and he consented 10 sell and deliver the
stock TO Mr.. Morgan after Grant b. Schley.
manager of the syndicate, had told him
'6tBer members were doing the same thing
There was no trouble of any kind in the
affair o. the Trust Company OF America
before the failure of the Knicksrbocker
Trus, Company, on October 90, 1909. Mr..
Tborrc said I'm answer TO questions. He
went home that night thinking all was
veil and he did not have the least appre-
hension OF impending complications until he
was called up on the telephone at II o'clock
that night and asked TO meet George w.
Perkins and Henry p. Dawson. OF the firm
of p Morgan & Co, at the Union League
Club
Their first question was as 20 how things
were pith the Trust Company OF America.
M Thcrne said. and he replied that they
wsre fine and showed them the daily state
rnent which he happened TO have with Jim.
That is all right; We will give YOU any
assistance that you may need vas the
-sn1a-k Of Mr.. Perkins, as quoted by Mr..
Thorne
He didn't know that he needed any. Mr..
Tho-re said but the two mon told him that
the situation vas much graver than it ap-
pesred that Clearing House banks were
in trouble Moore e. Schley we're also in
financial difficulties the situation I'm Brook
lyr was bad and the Stock Exchange was
~ in the air.
II was then proposed ny Mr.. Perkins. the
witness said. that committee examine the
aooks Of the Trust Company Of America
ssriy in the morning, and IL IL found the
dairy statement accurate all the help need
ID would be rendered.
Says Committee Never Reported.
The committee appeared at o'clock in
ne morning Of October q. worked till
o'clock and went out to luncheon, never 10
appear again or 10 make even a report, Mr.
Thorns said Meanwhile the bank opened
It's doors at 10 o'clock and the run was i'm
rnediately started. 1t had been caused. Mr..
Toorne said. by an article which appeared
that morning I'm newspaper.
The trouble with this article was that IT
aid IN effect that II the Trust Company
of America were solvent II would receive
assistance. and IL II wasn't II would close
?, o'clock II practically advised all OF
Tho depositors to run and get their money
.efore / o'clock
IN TO that time no one had suggested
that the trust company was in critical
condition. Mr. Thorne said. The run start
d suddenly and though seven tellers were
nf
ary one the line OF depositors did not seem
70 diminish That day the company had
% pay out sl5.50c.0cO he said. and people
told him they had come to get their money
. because they had read the newspaper ar
sh@e.
% NJ. Thorne said he hurried to Mr.. Nor
gan and found there Messrs. Perkins,
Dawson and Stilman. They told him the
q presidents Of trust companies were to meet
,hat night. and lent him $4,000 then.
James 7. Woodward. president OF the Han
over National Bank, advanced him N.JC,-
90 later in the day, the witness added. and
both loans were amply secured BY col
lateral
That night at the conference with Mr.
Morgan a loan Of 100000 was promised
II the Trust Company Of America put up
collateral for {D,VtU. Inc lOdi wac
made the following day, and another OF
S5Uo1c. was given by Mr.. Morgan on
October 6. Mr.. Thornc said. But the sec
ond loan was not made until committee
appointed by Messrs Stillman and Dawson
Q had examined the trust company and had
reported favorably on It's condition, the
witness explained.
On cross-examination By Richard v
Lndabury, counsel for the Steel corpora
ion. Mr.. Thorne said he did not thlnK
Nsssrs. Perkins and Dawson Kept theif
promise made at the Union League CIuo'
a. ne had understood nc could have al inc
funds whenever ne needed ~. e..
Thinks Morgan Did Everything Pos''o's'
Il think Mr.. Morgan. though. did every
thing he could" he added.
Asked what was the reason Tor the auioH
action by Mr.. Perkins in appointing com
mittee 20 examine the trust company MI
Thorne replied ,,,.,
+ oh. well. YOU know Perkina lie didn
/ give any reason"