The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-08-24
AFF|DAvITS PAID FOR
NEW PHASE OF SUIT AGAINST
THE STEEL CORPORATION
James Lancaster Said to Have
Been Paid Handsomely for Certain
Sworn AvowaIs-Entire Plant Said
Not to Be Worth Over Half a Billion.

TRENTON, N. j., Aug. pa sup
Elemental affidavit in behalf Of the
United States Steel corporation was
filed in the court of chancery today in
the suit brought against that concern
by J. Aspinwall Hodge to restrain the
conversion Of 5000, 1000 7-per- cent
preferred stock into 5000, 100000 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 finance, COM
mittee. Mr.. Perkins goes into ex-
plantations as to the reasons that
prompted the committee to recon-
mend the bond conversion plan and the
payment of $10,000,000 commission to
j. P. Morgan & Co.
An affidavit by Joseph E, Corrigan,
of the law firm of Guthrie, Cravath e.
Henderson, tells of a statements made
to Mr.. Guthrie in his presence by
James Lancaster, who gave testimony
for Hodge that the entire plant of the
United States Steel corporation was
not worth more than $500,000,000. Mr..
Corrigan says Lancaster admitted that
when he made the affidavit he did not
known it was to be used in any suit
and that he was governed only by his
impressions, as he understood that the
affidavit was to be used only in an
advisory way in the matter of stock
investment. Corrigan swears that
Lancaster stated to himself and Mr..
Guthrie that he found out few days
after making the affidavit that the
affidavit was being used in the steel
corporation suit and that he protest
ed to David Lamar, who got him to
make the affidavit.
Was Paid a Price.
Lamar then, according to Lancas-
ters statement, agreed to pay Lam
caster $3.50 a week and $40 1000 when
the suit was settled. Lancaster then
made a second affidavit and got $500.
subsequently he got into a row with
Lamar about his compensation and
finely got $500, making a total Of ST.
600, he having received 500 for his
first affidavit.
According to Corrigan, Lancaster
had many meetings at the office Of
Abram /. Elkus, of the firm of James,
Schell & Elkus, and Lancaster told
Corrigan in Elkus' Office that they ex-
pected to make big money out Of the
suit. Hodge, the complainant in the
suit, according to Lancaster, told the
latter that he (Hodge) was acting for
others and that Lancaster need not
look to him for any money for his ser
vices Corrigan states that he learn
ed Of Lancaster through his efforts to
locate Peter Power in the Northern
Securities company suit, Power having
been at one time employed by Lancas-
ter.
Mr.. Perkins, in his affidavit, stated
that the financial committee Of the
United States Steel corporation realiz-
ed the necessity of having more cash
capital to protect itself against money
stringencies and the conversion plan
was decided upon because 1t would re-
duce the fixed charges 81. 100000 year
ly. The commission Of $10,000,00O 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 10000, 900 Of preferred
stock of the corporation and the adj
vancement Of $4,000. 900, both of which
acts were part Of the agreement be-
tween the corporation and j. r. Nor
gan & Co.