New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-13
MORCAN'S S25,0OO,0OO
AVERTED CRASH IN 1907
R. H. Thomas, Then Head OF
Stock Exchange, Tells How
Brokers Were Tided Over.
]. B. MABON ON THE GRILL
Won't Admit to Money Trust
probers That Exchange Is
Monopoly-"Litt Board
Men Shut Out.

The stormy DAYS of the financial panic
OF the fall of 1907 were returned to by
the Congressional committee which is in
vestigating the money trust at its ses-
sions in the Custom House yesterday
Some of the inside facts in relation t.
the exciting conditions which prevailed
on the Stock Exchange and in the finan-
cial district during those anxious days
were brought out in the testimony OF
the witnesses.
r. II. Thomas. president Of the Stock
Exchange in 1901 told a story of how j
p. Morgan saved the exchange from
tremendous crash" on October a, 1907
by persuading the banks to loan the
brokers S25,000,OOO to tide them over
Call money had reached the high waite:
mark of 100 per cent. and even then the
banks were not inclined to loan unit
Mr.. Morgan had said the magic WORD
the witness testified.
Mr.. Thomas first went to Mr.. Stillman
president of the National City Bank
who sent him to Mr.. Morgan. He told
the story in short, snappy sentences
suggestive of suppressed excitement
He described his interview with Mr.
Morgan at the latter's banking house
with gestures and voice in imitation OF
the head of the Morgan firm.
Samuel Untermyer, counsel for the
committee, reverted Immediately to the
panic days of 1907 in his examination OF
MIR. Thomas.
You recall distinctly. 1 suppose. the
stirring days Of the panic Of 1907, do you
not ?" he asked.
Yes, I do" replied Mr.. Thomas.
DO you remember the days when CAL
money was exceptionally high" counse.
asked.
Yes. remember that il was high.
don't know for a fact, for l was not on
the floor but I was told 1t was 100 per
cent on October a, 1907 the witness
replied.
s25,ooo,ooO Needed at Once.
Call money was quoted on the Stock
Exchange at per cent that morning
the witness said, but bids for money at
60 per cent brought no loans. The ex-
citement among the brokers was intense
and il was evident that there would be
n tremendous crash" unless something
was done quickly to relieve the SITUATION
MFR. Thomas declared. The witness
testified that he went over TO the Ma
tional City Bank to see Mr. Stillman,
and told him that he needed $2o,ooO,OoO
10 tide the brokers over.
What did Mr.. Stilman tell your
asked Mr. Untermyer
He told me to go to MIR. Morgan and
tell him just what the situation was
the witness replied
so he told you to go to Mr.. Morgan's
office, did he?" asked counsel.
Yes; he said he would call Mr.. Nor
gan on the phone and tell him ! was
coming" said the witness
Did you see Mr.. Morgan" asked
counsel.
Yes; after waiting about twenty min
utes-there was a conference on in his
private office--he came out and said to
me: We are going to let you have the
S25,0O0,0O0 TO relieve the situation.
Please go back to the exchange and
make the announcement | said: Mr..
Morgan, before go l want to make just
one suggestion What Is itY he asked.
Il think it would be better to split the
money up in lots and let several men
distribute it, said.
Told Perkins to Do the Splitting.
Good ideal! said Mr.. Morgan, and,
turning to Mr.. Perkins, who was close
by. he said: Perkins, split that $25.OOO,-
900 up in five or six lots Then l went
back to the Exchange. Mr.. Turner said
TO the brokers in the loan crowd that 1
had an announcement to make. Then 1
got up and said: BE perfectly calm.
Relief is coming. You can depend upon
it There was loud cheering, and relief
did come within two minutes"
Where and how did the relief Gomez"
asked L-r. Untermyer
Il don't know where il came from. but
1t popped up in a number OF places in
stantly," replied Mr.. Thomas THE
banks began to loan money, and the rate
dropped back to 6 per cent and then to g
per cent"
Now. Mr.. Thomas. when Mr. Morgan
spoke the magic word and gave the S25.-
100000. it stopped the panic didn't it
Queried Mr.. Untermyer
well, it certainly did help the situa-
ton" replied the witness.
80, then, IT rested with one man. to
say whether or not that panic should
stop or go on, didn't it?" asked counsel.
II wouldn't want TO say that. /
wouldn't be qualified to make any such
statement" said Mr.. Thomas
The witness said he didn't think the
matter rested with one man, Mr. Nor
gan. as there was a conference Of bank
ers in Mr.. Morgan's office when he was
there, although Mr.. Morgan was The
only one 10 whom he spoke. He said
he didn't know what banks loaned the
money. as he didn't borrow any him
self. and had left the exchange after
making the announcement. Mr. Thomas
was excused.
Head of the Exchange Testifies.
James p. Mabon, head Of the firm Of
j. r. Mabon e. Co., who is now presi-
dent of the Stock Exchange, was the
next witness. Mr.. Untermyer brought
on Ia axanoinaf iO,, bo