The Birmingham age-herald., 1902-08-24
Interesting Developments in Suit
 Against the Steel Trust
BOND ISSUE S EXPLAINED
Company Needed More Cash to Its Credit So as to Be Protected Against strlngencies in the
 Money Market.

Trenton. N. J., August 23.-A supple mental affidavit in behalf of the United States Steel corporation was filed in the court of ehancery today in the suit brought against that concern by J. Aspin- wall Hodge to restrain the conversion of s20o 00O.OOO per cent preferred stock into S200 900, GOO per cent bonds. One of the affidavits is by George W. Perkins of the firm of J. P. Morgan & Co.,. and also chairman of the steel corporations fin- ance committee.
 MT. Perkins goes at length into ex- plantations as to the reasons that prompt ed the committee to recommend the bond conversion plan and the payment of $l0.- 000,00 commission to J. P Morgan & Ca.
 An affidavit by Joseph F Corrigan of the law firm of Guthrie Cravalh and Henderson. tells of confession made to MT. Guthrie in his presence by James Lancaster, who gave testimony for Hodge to the effect that the entire plant of the United States Steel corporation was not worth more than $500 GOO MT. Corrigan says Lancaster admitted that when he made the affidavit he did not know 1t was to be used in any suit, and that he was governed only by his im- pressions as he understood that the af- fidavit was to be used only in an ao- visory way in the matter of stock in- vestment Corrigan goes on to swear that Lancaster stated to himself and MT. Guthrie that he found out few days be- fore the making of the affidavit that the affidavit was being used in the steel corporation suit and that he protested to David Lamar who got him to make the affidavit.
 Paid Him to Swear.
 Lamar then, according to Lancaster's statement, agreed to pay Lancaster $2oo a week and s10O0O when the suit was set tied. Lancaster then made a second affidavit and got $4oO Subsequently he got into a row with Lamar about his com pensation and finally got $500, making a total of $1ooo, he having received s1oo for his first affidavit
 According to Corrigan. Lancaster had many meetings at the office of A. L Elkus of the firm of James. Schall and Elkus, and Lancaster told Corrigan in Elkus' office that they expected to make hig money out of the suit. Hodge. the com plainant in .aie suit accordnB 10 ldicas- ter, told the latter that he (Hodge) was acting for others and that Lancaster need not look to him for any money for his services. Corrigan states that he learned of Lancaster through his efforts to locate Peter Power in the Northern Securities company suit Power having been at one time employed by Lancaster.
 Needed More Cash Capital.
 r,arl,ins in his affidavit stated that the financial committee of the United. States Steel Corporation realized the necessity of having more cash capital to protect itself against money stringencices and the conversion plan was decided upon because 1t would reduce the fixed charges s1 50O, 900 yearly. The commission of $10,- 900, 900 to J. P. Morgan & Co. was agreed upon because of the risk that firm would be obliged to take in going Into the mar ket to purchase Ss0o00,000 of preferred stock of the corporation. and the advance ment of $20,0000O0. both of which acts were part of the agreement between the corporation and J. P. Morgan & Co.