The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1911-08-10
PERKINS .N!LL NOT
IGontIntiSd from Page Qhe,)
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of this and Of any other contributions
and submit them to the committee.
"This contribution Mr. Perkins
knows nothing about"
Then that obylates the necessity;
of further questions in that regard, /"
said Representative Beall.
End Political Inquiry.
Several questions along that line
followed, to which Mr., Perkins re-
piled that he never had expectations
of reimbursement from ANYBODY and
there the campaign contribution IN;
quiry abruptly ended.
During the noon recess, Representa-
tiyes Stanley, Sterling and Littleton
called on President Taft at the White
House and Sgained bis permission for
the expert Of the steel committee to
have access to ffie information, as yet
not made public, gathered by the
bureau OF corporations regarding the
steel corporation,
Following the disposition Of the
campaign question, Representative
Beall led Mi, Perkins again into the
financial panic and the Tennessee
Coal and Iron deal bringing up event
ualIy the bond conversion transaction
made by the steel corporation.
In the course Of the panic lnyesti-
CATION, MI. Bsal asked Mr., Perkins
| lie he remembered an interview in the
New York Times In which he was
quoted as having said that the Chief
sore spot in the panic was the Trust
Company Of America! Mr.. Perkins did
not recall having given such an inter.
view, but he said he had talked con
stantly to newspaper men during that
period.
Mr. RealI asked Il he had ever
talked to Melville p. Stone, general
manager Of the Associated Press
about the interview and II he had not
attempted to justify the Interview
by explaining that unless interest
was centered upon the Knickerboc ker
Trust Company andNthe Trust Com
pany Of America, all the banks would
lbe involved"
Mr.. Perkins said that he talked to
lMr, Stone freQuentlYduring the panic
Ibut that he had attempted to justify
anything he had not done, he said
was impossible.
Explains Financing.
When Mr., Bealt, questioned Mr.
Perkins again concerning the bond
conversion plan whereby $2OO,OO0,0OC
of preferred stock, WAS converted into
$3.50, 100000 Of second mortgage five
per cent, bonds, the witness produced
a statement he had prepared on that
subject. He explained that money
was needed, shortly after organization
OF the corporationslto carry on i'm
proyements Of the subsidiary com
palies, and that It was impossible t
use money out Of the surplus for THU
purpose, After, discussing severa
/ methods suggested for raising money
Mr., Perkins in his statement, said:
at was finally found impossible t
secure a ppledge Of the entire $500
100000 OF preferred stock; but tina
4 the best that could be done was z
organize a syndicate that would agre'
/ to the following, viz:
"FIrst-Purchase aud lodge with !
P. Morgan 8 Company $sOlOoO,oOO Q
| preferred stock. ,-.ss
Second agree to exchange all 9
this or only forty per cent Of It, .
the option Of the steel corporation
for second mortgage bonds, E
"Third = Take second mortgage
bonds from the steel corporation 9
par in exchange for $2O0O0,0O0 !
cash,
Il "For this the steel corporation wa
4 to allow said syndicate four per cen
4 commission on all the bonds It too
lin exchange for stock, and four pc
cent. commission on all the bonds
took at par for CASH SO that II tn
lItransaetion stood I'M the end IN ths
iIform, viz, IL $50, 100000 of bonds weg
for stock and $20,OOO,000 {
lbonds were issued for cash the ste,
corporation would have paid to q
syndicate four per cent on 500 ,QOl
900, or S4,OVO000s and u, r. Morga
6 Company would faye received .te
guaranteeing the whole 1901 100
for handling the syndi eate and 81
securities and for finding q mark!
( ION ibehalt,oi the syndirat &, one=tift
Iof $4,000, 900, Of $500 800 The Co
slEtract moreover /, VA made suplect
n Ithe approval 6fstle stoclSho lders,
II RtgbtS Res eryed YTFlst
d .s,The steel corpofati on reserved u
y ight 10 piier every preferred Hsoe