New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-25
Says Morgan
RaINed Swil.file
Gang Abroad
rrench's Aid Asserts l'inan-
cier Prevented Rings Eff
forts TO Interest British
Capital III Operations
Deals Near $4,000, 900


CHICAGO, Aug. 24.-That the fren-
sied finance operations Of John W.
Worthirg,on and Charles ". French
once ran afoul OF lie barking firm. q
J. P. Morgan & Co. was declared TO-
day by James II. Leet, OF Cleveland
vao with French. IS held in bonds OF
$4,000
They incurred the snmity Of J. P.
Morgan by endeavoring ro obtain Eng
fish capital to finance venture in
which they contaminated buckinsr tho
Cnited States Steel Corporation.
Let asserted. How they were forcc<;
70 get their money, as they did,
from manufacturers when Morgan
himself wens 10 England TO i:cht
them there, and orders were is
sued to banks here 90 shut Down on
them, was told to Colonel John 4. Gin
hin BY Leet
Leet said thai French's proposition.
as made 70 the manufacturers. was for
him to take their notes with the un-
Outstanding that they, the manufsc
turers. were 10 get 81 per cent, and he.
French, SO pef cent after the usual dis
count of 10 per cent was deducted
This would give French and the manlf-
facrurers Is per cent each on the notes.
OF French's AS per cent, IS per cent
Has 70 go into reserve fund to meet
maturing notes Of the proposed steel
company. and the remaining Is per
cent was 70 be devoted to engineering
expenses.
Blocked Abroad by Morgan
.Frerch's plan, according to Leet, was
to develop iron ore deposits or the
Pacific Coast n such a manner as
would have resulted in much cheaper
steel than that manufactured by any
Of tae existing steel Companies.
French. Leet said, tried 10 interest
English capital in the scheme. As prac-
tically all English money in the United
States IS handled by Morgan G. Co., it
IVES inevitable that Morgan and French
should clash Clash they did and,
according TO Lest, Morgan ordered
the banks TO refuse French's money.
Morgan himself then went to England,
Leet said. and succeeded in kill
ing french's efforts to get financial, aid
there. LeeS explained that French, With
rhe banks and foreign capital closed to
him, had 10 go TO manufacturers for
the money he wanted.
: Leet said that French obtained the
opinions OF half q dozen reputable and
even prominent attorneys as to the le-
gality Of the plan. and that these opin-
ions approved the project.
Seizure of s9,050 900 in securities
discovery of the hiding place Of $40
ooo 600 more in signed prornissorv
notes and raiding of a safety deposit
vault wherein many more millions N
valuable papers are believed 70 be hi
den to-day startled even Federal off,
Gals VINO have been deiving into the
"o-thington case.
Operations May Total $4,000 ,0Oo
Heretofore even the widest specula
ton has set the total Of the combined
operations OF the gang at only SIS
100000. Now the Federal officials be-
AeTe they viii come nearer 10000. 600.
To-day. too. was another day o. hec-
tic revelations concerning how the
gars worked. The growth of the
american Rubber Company from a lit
tie raincoat shop in Sixty-third Street
20 us present paper" Importance Of e.
million dollar capital stock was made
public for tae first time
toai mines near Carroll, Ill; plants
At Lorain, Ohio; firms IN Canada and
England we're discovered to be in
9oived From seventeen - the Last
known total OF the concerns either w.
'.m1-ed BY or working with French
the list has risen TO th;rtr-one. Some
OF these firms are reputable concerns:
some are not. Some OF the securi+ies
forged
Securities worth sa,oso.ooo obtained
from tTen*y-seyer firms uora talor