The Washington herald., 1909-01-31

From the testimony OF George W. Per
kins given Friday and nctmade public IN
til yesterday, it was learned by the sub
committee Of the judiciary Committee Of
the Senate, investigating the merger Of
the Tennessee Coal and Iron Company.
that there was firm that was n trouble
in New York on account Of carrying q
load OF Tennessee Coal and Iron stock in
the panic.
Mr- Perkins was not asked 10 tell the
name OF the firm at this time, Senator
CuIberson being satisfied for the present.
he said, 10 learn the kind OF institution It
was that gave so much concern
Asks About Ownership.
Senator CuIberson asked d line Of Ques-
lions TO determine whether the securities
held by the firm belonged 10 the firm or
whether they were held for other people.
Mr.. Perkins thought the firm had by
pothecated the securities 10 banks as col
lateral for loans
He could not say just where the techni-
cal ownership rested The stocks were
in a great many financial institutions in
New York which had extended loans on
them
Mr.. Perkins would not say whether the
leans were made for persons whose &C
counts the partnership held the securities.
he said he did not know. Neither would
he say that the securities belonged 10
the firm in its own right
Sold to steel Corporation.
Mr.. Perkins said the United States Steel
Corporation acquired a large part OF the
Tennessee Coal and Iron stock from this
firm. but he could not say what per-
oentsse Of the whole purchase it repre-
Sented The firm dealt on the New York
Stock Exchange-was,i in fact, a brokerage
firm
Senator Overman-I understood you 10
say that this transaction was 10 stop the
panic I want 10 know who was the
patriot who undertook this deal in order
10 stop the panic. who was the one who
was showing so much patriotism and wis
dom
Mr. Perkins-As I recollect II. the at
tOrneys for the partnership proposed It
70 the Steel Corporation.
Senator Overman-Then il was the at
torneys for the partnership that wanted
TO stem the tide That is AL want
Was Mr. Ledyara.
Senator CulbersOn-was that 1Ir Led
yard?
NJ Perkins, believe It was sIr. LAWS
Cess Bedyard-
Senator CuIberson-Did the firm Of J. P.
Morgan & Co have any connection with
the matter?
Mr. PeTkins-Mr. Morgan was very
active personally in the negotiations.
Senator Culberson-As person inter-
ested in TIE steel cooperation?
Mr. PeTkns-As. person at that mo-
ment very deeply interested in the effort
10 stop the panic and avert any further
serious consequences.
Senator Culberson-The direct negotia-
ton was between this partnership and its
attorneys and the United States Steel
Corporation?
Mr. Perkins-Yes sir.
Little Cash Handled.
Senator Culbsrson-There was practi-
cally on cash handled in the transaction.
there was practically nothing done but 70
exchange the securities Of the two cor
porations2
Mr. Perkins-That is right. sir.
Senator Cuiberson-The banks which
held these loans were pressing for col
lection?
Mr. Perkins, do not know that YOU
could use the word pressing" It was a
situation that in some way had 10 be
relieved because Of these loans.
Senator Culberson-How cid the sub
stitutiOn Of the steel bonds. which were
quoted about the same as the Tennessee
sock. enable these people to take up
the loans 10 pay or the debt for which
this Tennessee stock had been deposited
as security
Mr.. Perkins-Why, this panic was al
a question of what people believed or
what they did not believe. They did not
believe that Tennessee Coal and Iron
stocks were a liquid, current. salable
asset on the exchange. They did believe
the others were
Hesitated About Purchase.
Mr. Perkins said the finance committee
Of the steel corporation hesitated very
much about acquiring the Tennessee
stocks They thought the price they
VIZ A~pNON 81 ttJ liAsLl- II MdS ire sub
jet Of three or four conferences which
were held at Mr. Morgan's library. and
those present were Mr. Morgan. Mr..
Prick. Judge Gay. and other members Of
the finance committee.
Senator Overman-Did you discuss the
question in those meetings whether or
not the acquiring OF this stock would be
3 violation OF the Sherman act2
Mr. Perkins-Tes, sir
Senator Overman asked If there vas
any agreement then about having certain
persons come here 10 see the President
and Mr. Perkins answered that they felt
that they ought 10 take the step.
In conclusion. Mr. Perkins made this
statement voluntarily:
i would Ike 10 say that J. P. Morgan
& Co. acted IN exchanging the securities.
but in no way did We charge any fee or
have any interest, as a firm or as iudi-
viduals, in the purchase or transfer OF
exchange Of these securities.
The transaction was done directly be
.Ween one company and the other with
,ut any intermediate profit TO anybody in
my shape OF manner"