The Birmingham age-herald., 1911-08-11

 between them and the preferred stock had grown too wide as a result of the prevail ing conditions.
 Perkins Gets Excited
 Representative Bartlett referred to the conspiracy charge that a group of bank CTS started the panic of 1907 to drive certain banks out of business. MT. Per kins became excited. He jumped to his feet. Pounding the table vigorously with his fist he said:
 My dear Judge (referring to MT Bart lett) there never was a more infamous lie started than that There is not scintilla of truth in it. You might just as well say that a certain group of gem tleman made a contract with Mrs. O'Leary's COW to kick over the lamp that set Chicago on fire.
 T hold no brief for the Standard OH Co.,, said MT Perkins, and have no utilization with it whatever But that action ought to be red flag, danger flag to every other corporation in thls country. The Standard oil company Is a huge organization, the result of years of growth and the United States govern ment has spent thousands of dollars or the peoples money to investigating that corporation. Instead of trying to find out what good 1t has done, what 1t has done for the labor in lowering price, etcetera, the government is now engaged In break ing it up into B different parts. If that isn't a notice to other corporations to look out, I don't know what it is. This is why I am opposed to any effort to break up the steel corporation.
 Chairman Stanley then asked MT. Per kins.
 'Is 1t true the Steel corporation is rope of sand; that 1t does not own mill, an acre of ground. or one material r1rfsl lf1 na n have their own corporate entity? Even the counsel for the Steel corporation has refused to give us the minutes of those subsidiary companies for that very req son.
 Here MT. Lindabury counsel for the corporation made vigorous denial that ne had refused to produce books and papers. MT. Perkins denied that J. P. Morgan and company, and associate bankers Of New York absolutely dominated the financial affairs of the United States.
 That is not so," he answered when the question was put to him.
 Mr. Perkins was aked by MT. Gardner if he believed the currency system Of the country could be revised as to prevent a situation such as existed in the panic of 1907 when group of bankers in the Morgan library and the secretary of the treasury alone were said to have saved the situation.
 How to Prevent Panics
 "One thing you could do," MT. Perkins declared 'to stop speculation in New York and prevent conditions which bring on panics is to prevent the banks of Chi cago, Kansas City and St. Louis from sending their money in the summer to New York, loan 1t on call at cheap rates and then suddenly calling 1t all out in the fall to move the crops. That creates temptation to those who want cheap mon ey to speculate and 1t gives us high mon- ey in the fall and trouble. I certainly be- leve the situation can be remedied."
 "Is it necessary in order to conduct large business organizations to con- duct them in any way contrary to the law of 1S90-the Sherman law?" asked Representative Bartlett.
 Tt most assuredly Is necessary" re- piled MT. Perkins.
 "Is it a fact" MT Bartlett asked, that the Morgan interests and other financial men of New York, by reason of great control of money, dominate the financial situation of the whole coun- try"
 Tt is not fact"
 MT. Perkins discussed the ore hold ings of the United States Steel cor pora ton. Representative Gardner Of Massachusetts referred to the state ment in the report of the bureau Of corporations that the Steel corpora ton controls about 75 per cent of the ore holdings in the Lake Superior re- zion. MT. Gardner suggested govern ment control and government purchase of ore lands, which. he said, seemed to be the monopolistic feature of the steel business
 Would that remedy the situation:" he asked.
 T have often expressed the opinion before the steel board of directors" Mir Perkins replied, that too much is made of this talk about the monopoly of ore holdings. There is no cause for alarm about ore giving out. New dis coveries are constantly being made and there are untold quantities of unde- veloped ores that our inventors are constantly at work upon.
 Representative Sterling taxed the ingenuity of Mr. Perkins in questions of the subsidiary companies and its in- fuence on the steel business.
 What advantage was there to the steel inquiry" MT. Sterling asked, when the steel corporation simply took over the stock of the subsidiary com panies into one ownership@
 T don't know that the transfer Of the securities was so much the point, said MT. Perkins, as it was to get these plants in a coordinate, cooperative working organization. There had been severe labor and commercial disturb ances, and through the cooperative spirit 1t was thought there would come better results and economies"
 How did the change In stock owner ship better the labor situation?
 In the light oi what has happened in the last 10 years,' Mr. Perkins an swereA, it Is only fair to say that we men who came into the corporation to manage and direct the policy of the company saw the question of labor in a newer and broader light than the men who directed before"
 Later he said:
 Tt was not much those who came in as those who went out of the corporation who made the difference"
 Who went out?''
 ';I don't know whether my counsel would object to- that question or not. T certainly do, for your benefit, their benefit and the benefit of all concerned, said MT. Lindabury.
 Chairman Stanley asked if the Steel