New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-04-26
TRUSTING NATURE COST
H. c. PIERCE 100000
Tennessee Central Railway Syn
dictate Came High, Oil
Man TeStIfieS.
EX-SENATOR BAILEY AGENT
Sold S4,000,000 Stock to Pay
Loan, Says Witness-Bank
Contends IT Wasn't
Paid.

81 Louis April 25.-llenry CLAY Pierce.
chairman of the Board OF Directors of the
Waters Pierce oil Company met to-day
the chargo that he had converted 10 his
own use 5000 shares in the Nashville
Terminal COMPANY which had been
placed in the National Bank of Com
merce. OF St Louis. as security FOR a
loan. with the counter statement that he
had been the victim OF misplaced con-
fdcncc 10 the extent Of nearly 100000
Mr. Pierce testified he understood that
the I5c1 sharcs-which tho National
Bank OF Commerce is now suing Mr..
Pierce 10 rccover-wcrc turned over TO
former United states Senator Joseph W.
Bailey. OF Texas. as assignee OF the Ten
uessce Construction Company. after the
loan for which il had been pledged as
security was paid The bank contends
that the loan wa not paid and that the
securities We're taken out OF the bank
hv !. G.. Van Blarcom. formerly presi-
dent ~ the bank The Tennessee Con-
struction Company was the concern that
promoted the Tennessee Central Railway
and the Nashville Terminal Railway.
Senator Bailey sold more than
81 $1,000 of the property of the construc-
ton company" said Mr. Pierce and II
was my understanding that from the
sale of these properties the loan at the
National Bank OF Commerce was paid.
and that the stock then went TO Bailey
as assignee for the construction COM
pany. The stock later was pledged 10
the STANDARD Trust COMPANY Of New
York. Dy Senator Bailey. and remained
there for three Years. H. finally was de-
uvercd 10 Eben Richards. on my order.
after the trust company had instructed
me that ii had no further claim to h..
The stock Is In my possession or in
the possession Of my agents. although !
have never seen IT,
The statement OF Pierce was made dur
Ing the taking OF dispositions IN the suit
filed los the National Bank of Commerce
To recover the lj.o.J shares or their money
equivalent. $4,000
Mr.. Pierce told Of the formation Of the
syndicate To promote the Tennessee Cen
trail Railway syndicate TO which Pierce,
William H. Thompson. president OF the
Bank Of Commerce, and j. e.. Van Blar-
COM vice. president and later president.
were the principal subscribers. Both
Thompson and Van Blarcom are dead.
The 100000 TO which reference was
made-more specifically t5,SooooO-is ac-
counted for, according To Mr.. Pierce's
testimony. as follows:
Securities loaned 10y Mr.. Pierce to Van
Blarcom on which the latter made loans
which Pierce had TO pay. $4,000.
Loan from the Mississippi Valley Trust
Company OF ST. Louis. made by Van Blar.
com. but to which Pierce's name was
signed AS guarantor by Pierces son-in-
law. Eben Richards. 100000 This loan,
Pierce testified. he had 10 pay.
Pierces name signed by his son-in-law.
without Pierces knowledge. to a suaran-
tee 10 buy bonds OF the Tennessee Gem
trail Railroad TO the extent of 81, 10000.
Advances by Pierce TO pay the expenses
of the railroad after the syndicate col
lapsed were 100000 These advances re-
suited from the signing OF Pierce's name
To a guarantee to buy the bonds.
Chicago. April -5.-Ex-Senstor Joseph
W Bailey. of Texas. declined tonight to
throw any liLht on the transactions in
volving the 1000 shares OF Nashville
Terminal stock for which Henry Clay
Pierce is being sued in ST Louis
1.-THE Tennessee Construction Company
is my client. and ! can't talk about IT'S
affairs" he said 81 will say. however,
that the Terminal stock was not pledged
as collateral. II was deposited in the
bank under contract and removed when
the contract was fulfilled"