New-York tribune., 1909-01-31
MORGAN MADE NOTHING
FURTHER LIGHT ON T. c.
AND I. DEAL.
Testimony of @. ". Perkins Made
Pubkc-Gdry, Frick and Led
gdrd To Be Heard.
TFron The Tribune Bureau. ]

Washington Jan. 3O.-That J. P Morgan did
not profit by the merger OF the Tennessee Coal
and Iron Company and the United States Steel
Corporation; that an unknown association Of
individuals did largely profit thereby; that E
H. Gary, chairman of the board of directors Of
the Steel Cooperation. ths prime mover in
the merger; that the merger was agreed upon
and also the trip to see the President after
three days conference in Mr.. Morgans library.
and that the merger was first proposed by Lewis
Cass Ledyard of New York. were the chief
points brought out in the testimony of George
W. Perkins before the Senate Judiciary Commit
tee late yesterday afternoon This testimony
was not made public until to-day.
Mr.. Perkins also acknowledged that the "as-
sociation" to which he referred had placed large
blocks OF its stock holdings in the Tennessee
company with New York banks as collateral for
loans but whenever. directly or indirectly, it was
sought to elicit from Mr.. Perkins information as
to the identity of the members Of the concern to
which he referred as "an association of indtvid
uaIs" his memory failed completely. He not
a member of the partnership he said. and,
therefore, was not familiar with the details.
Mr. Perkins also declared his complete ignor
ance Of the relations of the steel company with
the ore CARRYING business on the Great Lakes.
When Mr. Perkins was pressed for an ex-
planation of the exchange Of United States Steel
Corporation bonds for Tennessee Coal and Iron
stock when both were quoted at about the same
price, he said:
No one dared press any security on the
let that time that there was any question
about being able to sell. We were in a panic.
and the worst panic that any city or country
has ever known. 1t was not q question whether
anything vas intrinsica1ly worth something or
was not. 1t was what you could do with it
what people believed. They did not believe In
that security Tennessee Coal and Iron stock)
and they did believe in the Steel bonds. Whether
their belief was well founded whether it
not had nothing at all to do with peoples minds
at that moment.
When the committee resumes its inquiry
Tuesday. it is understood that E. H. Gary. H c.
Frick and Lewis Cass Ledyard will be exam
ined 1t is also said that members of the COM
rnittae know the concern TO which Mr.. Perkins
referred and will be able to subpoena its men,
bers.
Incidental to the testimony relative to the
Tennessee Coal & Iron Company absorption.
Commissioner Herbert Knox Smith, of the Bu-
reau of Corporations, told something OF investi-
cations which are proceeding under his direc
tion into the affairs OF several great corpora
tions
Concerning the United States Steel Corpora
tion. Commissioner Smith said that the inquiry
thus far was restricted to investigation of
formation was not being gathered, he said, with
a view to prosecution.
Mr.. Smith said that he had Investigated the
Standard Oil Company and the Tobacco Trust,
and was investigating the lumber industry. the
International Harvester Trust and the cotton
changes.