The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-06-13

rant secretary aL.lh lolhoIlu"'
you recall very distinctly, ! sup,
pose" began Mr.. Untermyer when
MIR. Thomas had taken the witness
chair facing him, ''the stirring days
of the panic Of 1907 don I youi'
''Yes: l do, snapped the eager Mr..
Thomas.
"Do YOU remember the DAYS that
call money was exceptionally night
eyes, | remember il was high. l
don t know for a fact for ] was not on
the floor, but | was told that it was 100
on October is, 1907
Story Of the Panic.
Then under only slight prompting by
Mr.. Untermver the former president oil
the stock exchange told of the nerve
racking strain on the exchange. Cali
money, lie SAID, Was posted at per cent
but there was no money. In the con
stcrnation that had appalled, every unit
OF the scrambling. screeching mass of
brokers that swirlcd and eddlcd around
the loan post, he dashed up to the City
National bank IN a desperate effort to
get some money released from the
vaults
"There saw James Stillmau." Mr..
Thomas said 'When | told him that
we had to have at least $25 100000 AT
the stock exchange Immediately or
everything would 90 to smash, he told
me TO 90 sec Mr Morgan at once. Mr..
Stillman added that before / could ar.
rive at Mr., Morgan s office he would
communicate with Mr. Morgan by tele-
phone and let him know our desperate
situation. When | got to the Morgan
house the outer rooms and passagewaYs
were filled with men of millions, all as
badly frightened as the crowd on the
floor of the exchange / had Just left.
Mr.. Morgan was holding a conference
in his private office with several
financiers. Their names ] did not get.
! saw them when they emerged twenty
minutes later with him. but [ was too
intent on my mission to make mental
note of their names, and SO | cannot
now recall single one of them except
Mr. Morgan. Him ! was looking for
and him alone. ] stepped up to him
immediately and told him that we
must have $25.000.0O0 at once.
Morgan Agrees.
All right, Mr.. Morgan said, you
shall have it. Go back and assure them
that the money is ready for them
But 7 think you would better di-
vide it up in lots ] told Mr.. Morgan.
+
divide it up into lots.
"That was all, ] had talked to him
less than two minutes. Then | rushed
back to the stock exchange. Things
were in wilder disorder there than when
left. | briefly called out that money
enough for the days needs had been
secured. l didn tell them the amount
or its source, I merely gave them posi-
tive assurance that there was no longer
cause for alarm. The storm abated i'm
mediately.'
Chow long before the 25,Ooo,Oo0
was available7' asked Mr.. Untermyer.
"In about five minutes,' replied
Mr.. Thomas, who seemed exhausted
from the excitement his recalling the
happenings related had caused.
Fails to Remember.
"Where did the money come from
that is, what banksG'' the lawyer con
tinued.
''I don t know answered the wit;
ness, "but it popped up. in several
places instantly, The banks began TO
loan libcrally and the rate dropped
back to s per cent.
$50 then it rested with one man to
say whether or not the panic should
stop or 90 on. dldn { iii
"I wouldn I want to say that. | am
not qualified to make any such state
ment as that,
Mr.. Thomas was then excused. Mr..
Untermyer blinking his eyes triumph
nntly, as If to say, "Dldn t tell you
so2'
The former president of the stock ex-
change was succeeded in the witness
chair by the present president, James
B Mabon, who was reluctant witness.
Mr. Nabon. although d member OF the
exchange for twenty-one years and In
that period q member of nearly every
one Of the organization s important
committees, either declared that he was
not qualified TO answer many questions
or that he did not remember.
President Mabon declared he was un-
able to tell whether the report of Gov
crnor Hughes investigating commit.
tee Of 1910 was tho compelling cause or
the exchange striking all unlisted Sc
curities from its rolls.
Alleged Blind Pools.
"Don't YOU know that for years
Amalgamated Copper was operated on
your exchange by Il blind poolf'' asked
Mr.. Untermyer.
After getting Mr.. Untermyer deli
milton Of blind pool, he blandly re-
piled:
81 don { know anything about 1T. -
"Well, you know that this company
and the American Sugar Refining com
pany voted their stocks rs unlisted cnes
and they never made any report to any
one and kept their affairs secret, don t
you2'
"Well, 1 don I know whether they
made report OF not.
Later he admitted TINT unlisted Sc
curities were the playthings of specu-
lators and were in reality blind pools.
James G., Cannon. president of the
Fourth National bank and member of
the clearinghouse committee, was twice
recalled to the witness stand today. At
tho morning session he would not agree
with Mr.. Untermyer that the consoi-
dated stool; exchange has been black
listed by the New y ork stock exchange,
Mr. Cannon admitted that most of
the surplus of the banks of the coun-
try was at times loaned in New ork
and went to stock exchange brokers.
"And that's what makes possible
these vast speculations7' pressed Mr.,
Untcrmyer.
"Well. some people think that is the
| reason and may be that is the reason, -
/