The Sentinel=record., 1911-08-09
ident and Chairman of the finance

 garding the bond conversion trans action, Chairman Stanley asked:
 Ibid you ever propose to operate this transaction so as to get $5o,- ooo,0o0 for notIhing?"
 No sir" MT. Perkins replied.
 You suggested this plan of con- version did you not?"
 T anticipated you would question me on that line and nave a prepar- ed statement concerning just what did do," MT. Perkins said, which will ask permission to submit lat err"
 Well. by this transaction you were to get $5O,OOO,ooO more working cap ital?"
 'The net result was to get $50,UOU.. 900 at sl.5OO,00O less cost year." MT. Perkins said.
 Did you think it right, morally, VT etuACdliy, lO 6tt 9Jo,uuutVVu AtOo your stockholders without cost?"
 'T think the plan as devised and operated was right in every re- spect."
 MT Stanley quoted from the min- utes, in which Mir. Perkins was quot ed as having said, If we get forty per cent of the preferred stock In op- ligations maturing in fifty years we would be creating sinking fund for retiring what is considered some or the water n the concern.'
 How much water was there in the steel corporation?" the chairman asked
 T didn't feel that there was any but it was the common criticism at the time that there was water in the corporation.
 The chairman referred to state ment made by MT. Perkins at the same meeting in answer to a queston by Chairman E. H. Gary if it was his idea to make an elastic stock so that he could issue bonds in place of preferred stock. Mir. Perkins is said to have declared he thought that would be dangerous {"
 Dangerous to whom?" asked MT Stanley.
 T really don't know.v MT. Perkins replied.
 In this same meeting the chairman quoted Judge Gary as stating that he believed it a pretty good plan and that the corporation must raise more money somewhere.
 MT. Perkins said he did not re- member it.
 Well, l will enter into the record all of this remarkable statement" the chairman said.
 Representative Bartlett led the Wit ness into description of the panic of 1907, and the events which fed up to the absorption of the Tennessee Coal and Iron Company by the steel corporation.
 MT. Perkins particularly explained the threatening condition of the Trust Company of America and the Lincoln Trust Company.
 These trust companies and the nrm of Moore and Sdhley were trembling in the balance, MT. Perkins said.
 Concerning the Tennessee transac- tions to save Moore and Schley, Mir Perkins made the following statement
 The net result of the deal was to save Moore and Schley, but as part of the condition of that transaction it was provided that if the steel cor poration took over the Tennessee to save Moore and Schley, the bankers of New York, were bound to raise money to prevent the Trust Company |of America and the Lincoln Trust Company from failure. This they did land announcement was made Nov. b. two days after the deal, that all three firms. had been saved" MT. Perkins insisted that the steel corporation did not want the Tenn essee corporation. He said he knew all about the visit of Judge Gary and MT. Prick to Washington and what they went for.
 In reply to suggestions of conspir- lacy and driving Tennessee stock into the market, Mir. Perkins said:
 Never was anything more false with all due respect to you, Judge Bartlett" 7"
 At times Mir. Perkins grew excit- ed and stood up. pounding the table with his clencned hands. Wien asked if MT. Morgan was not the financial dictator. he said:
 "Mr. Morgan was certainly the saviour of that panic If there ever was general in charge of any fight for any people who accomplished more than MT. Morgan did in that I