The Sentinel=record., 1911-08-09
PERKINS MAY
 GO ID JAIL
GIVEN CHOICE OF ANSWERING QUESTIONS OR BEING SUM-
 MOVED BEFORE HOUSE.
In Case of Refusal Will Be Judged in Contempt of Congress-He Asks Further Time to Cog tate
 the Matter.

Washington, D. G., Aug S.-G. W. Perkins, director of the United States Steel Corporation and one or the men said to have aided in avert ing financial disaster during the panic of 1907, faces tonight the al formative of answering questions to the house committee on inquiry into the steel corporation bearing on ms personal campaign contributions and such contributions by the New YorK Life Insurance Company or being cit- ed before the bar of the house of representatives.
 Should the house sustain the ma jority of the committee and order MT l. Perkins to answer and should he then still refuse, he may be adjudg- ed in contempt of congress and i'm prisoned. It is believed, however, that this crisis will not be reached, MT. Perkins having expressed de- sire to reflect on his position.
 MT. Perkins, though personally willing to tell about the campaign contributions, refused on the advice Iof counsel to answer interrogator- ies on that line put to him by Chair man Stanley and Representative Beall |of Texas. Richard A. Linabury, counsel for the steel corporation, and Edgar Brandcroft, who appeared for Mr Perkins, insisted that the autnor- ity given tine committee in this in |quiry made irrelevant an attempt to inquire into the private campaign contributions of the witness or his relations with corporations foreign Ito the steel corporation.
 Late today, after the witness, hls |counselIors and the committee, had wrangled long over the hitcn and the chairman's decision that he ans wer had been sustained after an ap-
 fal by Representative Young of Michigan, Chairman Stanley warned Mir Perkins that it might be neces- |sary to cite him to the bar of the house. The Chairman later suggested that the New York financier appear before the house tomorrow to avoid being taken into custody by the ser geant- st-arms.
 When matters reached this stage MT. Perkins said the situation was so critical that he wished time to consider This was granted and uhe proceeded along other lines.
 "Mr. Perkins, Chairman Stanley said tonight, will be given another Opportunity to answer. If he still persists in refusing to answer there will be nothing to do but to cite him before the bar of the house. The procedure will be for the committee to turn him over to the sergeant-at arms
 MT. Perkins, aside from this turn lin the committees proceedings, told the committee remarkable story ol the panic of 1907 and the events that made necessary the absorption of the Tennessee Coal and Iron Company by the United States Steel Corpora tion. He admitted the steel corpor- ation had contributed to the spread Iof protective tariff doctrine and yer lifted records produced by Chairman Stanley that the steel corporation il 1906 sought legal advice which di rected that as corporation it should not make contributions to campaign funds.
 The witness was subjected to { vigorous examination by MT. Stanle. relating to the record of the minutes of the executive committee of th' steel corporation. at which MT. ferk' ling proposed a plan of converting $2O0, 0,0O0,O00 worth of steel preferred stock into s250, ,0O0.0o0 five per cen second mortgage bonds, thus gaininl
 $50, 0,O00,000 without costing the cor
 poration anytnlng.
 In this connection Chairman Stan ley explained that the New York Lif' Insurance Company, bought some o
 these second mortgage bonds am
 stated that this was one of the req
 sons why the committee insisted up
 on the relevancy of inquiry pertainin
 to the insurance company. of whilh lMr. Perkins formerly was vice pres