New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-18
LESS COMPETITION BAIT
Independent Tells of Offer to JOIN
Structural Iron Merger.
"JOLLIED" BY STEEL MEN
Memoranda Show How Moore
& Schley Were Loaded with
Tennessee g. & I. Stock.

One Of the inducements held out to the
companies which were invited into the com
binatlon OF structural iron manufacturers
later incorporated as the American Br1ose
Company. was the elimination or GER
tain amount Of competition In that llhe OIL
business according TO the testimony given
Yesterday by Foster Milliken. of Miliikeh
Brothers, independent producers. MI MIL
liken also asserted that the companies
merged into the American Bridge CoHl-
pany were capable Of producing so per cent
Of the country's demand for structural steel
The witness said an agent approached
him early in 1900 and tried TO induce MIN
TO sell his business to the American Bridge
Company. Reduced competition was one
OF the promises made, Mr.. Milhken said
hut he refused TO join the combination
AS soon as the new corporation came into
existence the Independents met to discuss
the prices OF raw materials. he said, as
they had found that the result or the COM
bination was an increase in those prices
Mr.. Milliken then entered a complaint with
the Steel Corporation on the matter, he
said
What was the result Of your complaint
asked counsel for the government
Numerous joIies and net much action,
was the reply.
Finally meeting of independents and
officials Of the Steel Corporation was ar
ranged, Mr. Milliker said. and Charles NJ.
Schwab then president OF the corporation.
and Joshua Hatfield, Of the American
Bridge Company. were present remark
made by Mr.. Hatfield before Mr.. Schwab
could stop him led TO a reduction Of one
tenth Of a cent on the price Of raw ma
tcrial, Mr. Mlliken added.
John T. rierney. former cashier Of Moore
& Schley, stock brokers of No. 50 Broad
way. told during the morning session of
the number OF shares Of the Tennessee
Coal G. Iron Companys stock held or con-
trolled by the firm a. the time Of the
panic of 1907. The financial troubles Of
this firm led TO the absorption OF the Ten
nessee company by the Steel Corporation
Memoranda prepared by the witnesses
showed the extent to which Moore & Schley
were loaded down with Tennessee Coal and
Iron stock when the panic came. From
these and questions put by Jacob NJ. Dick
inson. counsel for the government, it ap-
held PATTI shares Of Tennessee Coal and
Iron subject TO their own use, having been
put up as collateral by clients of the firm;
II, 700 were hypothecated by Moore & Schley
for loans obtained by them, and 10000
shares. according 10 Mr.. Tierney paid for
and owned absolutely by the firm, were in
the strong box.
few days after the panic had set I'm the
firm found itself in need OF negotiable Sc
Curities and appealed 10 the First NATIONAL
Bank for assistance. This bank offered to
exchange temporarily more liquid securities
for Tennessee Coal and Iron stock and
similar offer was made by Colonel o. H.
Payne. Of the Steel Corporation, In this
manner Moore & Schley exchanged 1000
shares through the First National Bank,
while the Steel Corporation took 1000
shares and gave its own stock for them.
BY November {. the firm had exhausted
all Of its securities except Tennessee Coal
and Iron stock. Mr. Tierney said, and the
banks would not accept that as collateral
and pressed for cash payment. He .esti-
mated that the firm had had in all obliga-
tions at from S30,0O0,O00 10 100000.