Omaha daily bee., 1902-08-24
STEEL TRUST IN THE COURTS
Supplemental Affidavit in the ]. Aupinwall
Hsdgs Case is Filed.
TO PREVENT CONVERSION OF STOCK
Evidence 20 show that Entire Plant
Of Trust is Not worth 60 Ex-
ceed Half a BiIlion
Dollars.

TRENTON. N. j.. Aug. ga supple
mental afhdavit in behalf Of the United
States Steel corporation was hled in the
court Of chancery today In the suit brought
against that concern by J. Aspinwall Hodge
to restrain the conversion Of 5000, 600, 900 I
per cent preferred stock into $500, 600. 900
per cent bonds. One Of the afidavits is
by George W. Perkins OF the Arm OF ]. p.
Morgan q Co, and also chairman OF the
steel corporation finance committee.
Mr.. Perkins goes at length into ex-
plantations as to the reasons that prompted
the committee to the bond
conversion plan and the payment Of &c.
O00,000 commission to J. p. Morgan q
Co. An afhdavit by Joseph q. Corrigan Of
the law firm Of Guthrie. Craveth q Hen
derson, tells OF a confession made TO Mr..
Guthrie In his presence bv James Ian
caster who gave testimony for Hodge 10
the effect that the entire plant OF the
united states Steel corporation was not
worth more than $500, 600, 900.
Mr.. Corrigan says Lancaster admitted
that when he made the afidavit he did
not know II was to be used in any suit
and that he was governed only by his
Impressions, as he understood that the
afhdavit was to be used only in an advisory
way In the matter of stock Investment.
Corrigan goes on to swear that Lancaster
stated to himself and Mr.. Guthrie that he
found out q few days after making the
atidavit that the afndavit was being used
In the steel corporation suit and that he
protested to David Lamar, who got him IN
make the aiidavit.
Lamar then, according to Lancaster's
statement, agreed to pay Lancaster $3.50 a
week and 10000 when the suit was settled
Lancaster then made a second afhdayit ana
got $500. Subsequently he got into a row
with Lamar about his compensation and
finally got $500, making q total of 81, 900.
ne having received 500 for his first aha-
davit.
According to Corrigan, Lancaster had
many meetings at the office OF Abram l.
Elkus Of the firm Of James, schell g. Elkus
and Lancaster told Corrigan in EIkus' ONCE
that they expected 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 services. Corrlgan states
that he learned Of Lancaster through his
efforts to locate Peter Power in the North
eTn Securities company suit, Power having
been at one time employed by Lancaster.
Mr.. Perkins in his afAdavit stated that
the financial committee Of the United
States Steel corporation realized the neces-
sity Of having more cash capital to pro-
tect itself against money strinEencies ana
the conversion plan was decided upon be-
cause 1t would reduce the fixed charges
{1,600,0 900 yearly. The commission of &c.
100000 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 $780, 900. 900 of preferred
stock Of the corporation, and the advance
ment Of $4,000. 000. both Of which acts
were part OF the agreement between the
corporation and J. P. Morgan & Co.