The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1913-04-29
CLAIMS HE'S OUT
SEVEN MILLIONS
nsaIy Clay Pierce a Victim Of
misplaced Confidence.
OIL KINGS RACY TESTIMONY

Meets Charge That He Converted TO
His Own Use $1,000 Shares In a
Terminal Company With the coun.
ter-Statemen That He Had to Make
Good Loaus to Business soeiates,
Now Dead.
st. Louis. April 26. - Henry Clay
Pierce, chairman of the board of di.
rectors of the Waters Pierce Oil COM
pany, met the charge that he had con.
verted to his own use $1,000 shares In
the Nashville Terminal company.
which had been placed in the National
Bank Of Commerce OF st. Louis as se.
curity for a loan, with the counter
uatement that he had been the victim
u misplaced confidence to the extent
u nearly s7.OoO.OOo.
The statement OF Pierce was made
during the taking Of dispositions in
the suit fled by the National Bank OF
Commerce to recover the 5000 shares
from Mr.. Pierce or their money equiv
aIent. 31,500.000.
Mr.. Pierce told OF the formation Of
. syndicate to promote the Tennessee
Central Railway. a syndicate to which
Pierce, William II. Thompson. presi-
dent OF the Bank of Commerce, and j.
q. Vanblarcom, vice president and
later president, were the principal
Subscribers. Both Thompson and Van.
blarcom are de"d.
\ The S6.s00,000 to which reference ID
made is accounted for. according to
Mr.. Pierce's testimony, as follows:
Securities loaned by Pierce to Van
6larcom, on which the latter made
loans. which Pierce had to pay,
500, 900.
Loan from the Mississippi Valley
Trust company OF st. Louis, made bv
VanblarcOm, but to which Pierce's
name was signed as guarantor by
Pierce's sOn.in-law, Eben Richards,
t600,000. This loan Pierce testified
he had 10 pay.
Pierces name. signed by his sOn-in.
law without Pierce's knowledge. to a
guarantee to buy bonds Of the Tennes.
see Central railroad to the extent OF
u 500 900.
Advances by Pierce to pay expenses
-of the railroad after the syndicate col
lapsed, $4,00O.000. These advances
resulted from the signing Of Pierce's
name to a guarantee to buy the bonds.
Mr.. Pierce further testified he I'M
derstood that the $1,000 shares which
the National Bank of Commerce now
seeks to recover were turned over to
Senator Joseph w, Bailey OF Texas,
a. assignee Of tina Tennessee Con.
structiOn company, after the loan for
which II had been pledged as security
was paid. The bank now claims that
the loan was not paid. and that the
securities were taken out OF the bank
by Vanblarcom. The Tennessee Con.
structi0n company was the concern
taat promoted the Tennessee Central
railroad and the Nashville Termina,
railway. Z.
Senator Bailey sold over 81, 600, 900
of the property of the construction
company" said Pierce, and It was
my understanding that from the sale
Df these properties the loan at the
National Bank OF Commerce was paid.
end that the stock then went to Bailey
as assignee for the construction com.
pany. The stock later was pledged to
Che Standard Trust company of New
York by Senator Bailey and remained
there for three years. II finally WAS
delivered to Eben Richards, on my or
der, after .ne trust company had noti.
Ned me that II had no further claim
70 u. The stock is In my possession.
-or In the possession of my agents. al.
though have never seen H."