The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-08-09
PERKINS MAY
Be CITED TO
BAR OF HOUSE
Steel Magnate Must Tell
the Committee of His
Contributions to
Campaign.
FAILURE TO COMPLY
MAY BE CONTEMPT
Graphic Picture of Panic Of
1907 and Efforts to
Prevent Many
Failures.

VA ASHINGTON, Aug. s.-George
NM w Perkins. director of the
WV United States Steel corpora
tion and one of the men said
to have aided in averting financial
disaster during the panic of 1907, to-
night faces the alternative of answer
ing questions TO the house committee on
inquiry into the steel corporation, bear
ing on his personal campaign contribu
tions and such contributions made by
the New York Life Insurance company,
OF of being cited to the bar of the
house of representatives.
Should the house sustain the majority
Of the committee and order Mr., Perkins
10 answer, and should he then still re
fuse, he may be adiudged in contempt
of congress and imprisoned. II Is be
lieved, however, that this crisis Will
not he reached
Mr. Perkins, though personally will
ing to tnlk about campaign contribn-
tions, refused. on the advice of counsel.
TO him by Chairman Stanley and Rep
resentative Bcal of Texas. Richard
Lindabury, counsel for the steel corpor
alton, and Edgar A. Bancroft, who ap~
peared for Mr.. Perkins. insisted that
the authority given the committee in
this inquiry made irrelevant any at
tempt to inquire into the private cam
paign contributions of the witness or
his relations with corporations foreign
to the steel corporation.
May Be Cited.
Late today, after the witness, his
pnp
wrangled over this hitch, and the
chairman g decision that he answer had
been sustained after an appeal by Rep
resentative Young of Michigan. Chair
man Stanley warned Mr. Perkins that
il might be necessary to cite him to the
bar Of the house The chairman later
suggested that the New York fnancier
appear before the house tomorrow to
avoid being taken into custody by the
sergeant at arms
When matters reached this stage Mr.,
Perkins said the situation was so crlti
cal that he wished time to consider.
This was granted. and the investigation
proceeded along other lines.
Mr.. Perkins admitted that the steel
corporation had contributed to the
spread of the protective tariff doctrine.
and verified records produced by Chair.
man Stanley that the steel corporation,
III 1906. sought legal advice which di-
rected that, as corporation, 1t should
not make contributions to campaign
funds
Rigorous Examination.
The witness was subjected to a rigor~
GUS examination by Mr.. Stanley relat.
ing to the record of the minutes of the
executive committee of the steel
corporation at which Mr.. Perkins pro.
posed plan of converting 5000, 100000
worth OF Steel preferred stock into
S250.00O.000 D per cent second mortgage
bonds, thus gaining $4,000, 900 without
costing the corporation anything.
After reading the minutes, in which
Mr.. Perkins was quoted regarding the
bond conversion transactions, the chair
man asked,
"Did you ever propose TO operate
this transaction so as TO get S50,000,000
for nothing7'
"No. sir, said Mr.. Perkins.
:" You suggested this plan Of conver-
sion, did you not7'
81 anticipated YOU would question
me on that line. and | have a prepared
statement concerning Just what | did
ask permission to submit later
Water in Stock.
Mr.. Stanley quoted from the minutes
in which Mr.. Perkins was quoted as
having said that 'Fif we ger 40 per cent
Of the preferred stock in obligations ma
turing in fifty years, we would be Great
ing sinking fund for retiring what is
considered some Of the water in the
concern
How much water was there in the
Steel corporation1 the chairman asked.
~ did not feel that there was any,
but 1t was the common criticism Of the
time that there was water in the corpor.
alton.
Well, then, why did you discuss
water IN the stock with them!'
i know of no other answer / can
make than what | have said, the criti-
clsm was IN the air.
Representative Bartlett led the wit.
ness into a descripti Of the panic of
1907 and the events which led up to the
absorption Of the Tennessee Coal &
Iron company bv the Steel corporation
Nr. Perkins first gave graphic picture
of conditions in New York how the city
of New York had to be helped. the stock
exchange aided by many millions, and
particularly explained the threatening
condition of the Trust Company Of
America and the Lincoln Trust com
pany.
''These trust companies and the firm
of Moore & Scbley were trembling in
the balance, Mr. Perkins said.
Prevented Failures.
The examination brought out fnrthel
that Secretary of the Treasury Cortel
you. about August 3, deposited in the
New York banks about $25, 600, 900, yet
during that week there were heavy
Withdrawals, and the trust companies
were appealing for help. Mr.. Perkins
told how futile effort had been made
TO organize trust company clearing
house, and how Mr.. Morgan hac
sought, without success. among the big
trust company bankers for the relicf of