The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-08-09
Refuses to Answer Cues
lions Put by Commit
tee of Inquiry.
GIVEN TIME TO
THINK IT OVER
Unless He Changes Mind, He
May Be Cited Before Bar of
House and Declared in Con-
tempt of Congress-Queries
Bear on Campaign
Contributions

Washington, ID. c., August S.-Georsu
w. Perkins, director of the United
states Steel Corporation, and one of
the men said to have aided In nvertfnE
financial disnster during the panic OF
1907, Tonight fnces the alternative OF
answering Questions to the House COM
mittee of inquiry into the Steel Cor
porntion, bearing ON his personal cam
pafSn contributions md such contri-
buttons made by the New York Life
insurance Company, or of being cited
before the bar of the House OF Repre-
sentativcs.
Should the House sustain the ma
jority of the committee and order Mr..
PERKINS to answer, and should he then
still refuse. he may be adjudged I'm
contempt of Congress and Imprisoned
IL is believed, however, that this crisis
Will not be reached. Mr.. Perkins hav +
Ing expressed desire to reflect on his
position
Counsel Advises Refused.
Mr.. Perkins. though personally WILL
ing TO talk about campaign contri-
buttons. refused, on the advice OF
counsel. to answer interrogatories OH
that line put to him by Chairman
Stanley and Representative Beali, OF
Texas Richard Lindabury. counsel for
the Steel Corporation, and Edgar a.
Bancroft. who appeared for Mr. Per-
the committee in this inquiry made
irrelevant an attempt to inquire into
the private campaign contributions OF
the witness or his relations with cor-
porations foreign to the Steel Co..
poration.
Late to-day after the witnoss. his
counselors and the committee had
wrangled long over the hitch, and the
chairman's decision that he answer
had been sustained after an appeal
by Representative l., Young. OF Michi-
gan, Chairman Stanley warned Mr..
Perkins that it might be necessary to
cite him to the bar OF the House The
chairman later suggested that the
New DIRK tinancier appear before the
House tomorrow. to avoid being taken
into custody by the ser -eant-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.
MIR. Perkins" said Chairman STAN
ley tonight, will be given another
opportunity to answer. If he stu
persists in refusing TO answer there
Will be nothing to do but to cit. MIN
before the bar of the House. The pro-
cedure will be for the committee to
turn him over to the sergean.-at-
arms"
Tells Remarkable story.
Mr.. Perkins. aside from this turn in
the committee proceedings, told the
committee a remarkab BILE story of tho
panic of 1907. and the events which
made necessary the absorption of the
Tennessee Coal and Iron Company by
the United States, Steel Corporation.
He admitted that the Steel Corpora
ton had contributed to the spread of
protective tariff doctrine. and verified
records produced by Chairman Stanley
that the Steel Corporation IN 1905
sought legal advice which directed
that. as a corporation. 1t should not
make contributions to campa: gn funds
The witness was subjected 70 a rig.
orous examination by Mr. Stanley, re-
lating to the record of the minH,es
of the executive committee OF the
Steel Corporation, at which MIR. Per
kins proposed a plan of converting
s2o0,000,00o worth of Steel preferred
stock into $3.50 000. 900 s per cent sec
ond mortgage bonds, thus gaining So
100000 without costing tho corpora
ton anything.
In this connection. Chairman Stan
ley explained that the New York Life
Insurance Company bought some of
these second mortgage bonds. and
stated that this was one of the reasons
why the committee insisted upon the
relevancy of inquiry. pertaining to
the Insurance company. OF which Mr..
Perkins formerly was vice president
and chairman OF finance committee.
After reading the minutes in which
Mr.. Perkins was quoted regarding the
bond conversion transaction. Chairman
Stanley asked:
Did you ever propose to operate
this transaction so as to set $780,
100000 for nothing"
No, sir" said Mr.. Perkins.
You suggested this plan of con-
version, did YOU not?"
Hns Prepared Statement.
II anticipated you would question
me on that line, and have pre-
did do" said Mr. Perkins. which Z
will ask permission to submit later"
We'll, by this transaction you were
to get S5o.oOo.o0o more working capi-
tal?"
"The net result was to get $780,
600 900 at si.500.000 less cost a year."
said Mr.. Perkins
Did you think it right, morally or
ethicalIy. to get $5o.o00,000 from your
stockh olders without cost?"
Il think the plan as devised and (
particular"
Mr. stanley quoted from the MIN
utes. in which Mir Perkins was quoted
as having said that if we got 10 per
cent. OF the preferred stock IN ohltga-
tons maturing in nifty years we would
be creating a sinking fund for retiring
what is considered some OF the wa,er
In the concern"
How much water was. there in the
steel Corporations" the chairman ask
ed q
II did not feel that there was any,
but 1t wa s.he common criticism Of