Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1911-08-09
MAY CITE PERKINS
BEFORE BAR OF
HOUSE
STEEL TRUST DIRECTOR IN
CLASH WITH COMMITTEE
Refuses to Answer Questions
Concerning Campaign Con-
tributlonS and Chairman
Stanley Threatens Him With
Contempt Proceedings.
rBy MornlnE Journal Special leased WIRE,

Washington. Aug. S.-George W.
Perkins, director Of the United
States Steel corporation. and one OF
the men said 90 have aided in avert
Ing financial disaster during the panic
Of 1907. tonight faces the alternative
of answering questions to the house
committee OF inquiry into the steel
corporation. bearing ON his personal
campaign contributions and such con-
tribuuons made by the New York Life
Insurance company. or of being cited
before the bar OF the house of repre-
sentatives.
Should the house sustain the ma
ioi1ty OF the committee and order MI
Perkins TO answer, and should he then
still refuse, he may be adjudged In con-
tempt of congress and imprisoned. Ii
Is believed, however that this crisis
will not be reached.
Mr. Perkins. though personally will
ing to talk about campaign contribu-
tlons, refused, on the advice of coun-
sci, to answer interrOgations on that
line put to him by Chairman Stanley
and Representative Bell of Texas.
Richard Llndabury, counsel for the
Steel corporation, and Edgar A. Ban
croft, who appeared for Mr.. Perkins
insisted that the authority given the
committee in this inquiry made ire
levant any attempt TO inquire into the
private campaign contributions OF the
witness or his relations with corpora
tions foreign TO the Steel corpora
tiOn.
Late today, after the witness, his
counsellors and the committee had
wrangled over this hitch. and the
chairman's decision that he answer
had ben sustained. after an appeal by
Representative Young of Michigan,
Chairman Stanley warned Mr.. Per-
kins that II might be necessary TO cite
| him at the bar of the house. The
lchairman later suggested that the New
| York flnancier 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
critical that he wished time to con-
slider. This was granted and the In
yestlRation proceeded along other
lines.
Mr.. Perkins admitted the Steel cor
poration had contributed TO the spread
OF the protective tariff doctrine and
verified records produced by Chairman
Stanley that the Steel corporation in
1906 sought legal advice. which direct
ed that, as a corporation. II should
not make contributions to campaign
funds.
Tho witness was subjected to
rigorous examination by Mr.. Stanley,
relating to the record Of the minutes
of the executive committee of the Steel
corporation. at which Mr.. Perkins
proposed a plan of cnverting $780,
00O, 600 worth of steel preferred stock
into $250,0O0,000 s per cent second
mortgage bonds. thus gaining $780,
100000 without costing the corpora
tion anything.
After reading the minutes In which
Mr.. Perkins was quoted regarding the
bond conversion transactions, Chair
man Stanley asked.
did YOU ever propose to operate
this transaction so as To get 500 00o,~
600 for nothing?"
"No. sir, said Mr. Perkins.
"You suggested this plan Of conver-
sion, did you not?'
Il anticipated you would question
me on that line, and ! have nre-
pared statement concerning Just what
| did do" said Mr.. Perkins, which |
win ask permission to submit later.