New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-09

on that line and have prepared state
ment concerning just what | did do
said MIR Perkins. which ask per-
mission to submit later.
We'll. by this transaction YOU were TO
get SO 00O. 600 more working capital?'
THE net result was TO get S5oW0oOo
at 81. 800, 600 less cost year. said Mr..
Perkins.
Did you think it right. morally or
ethically. TO get S50.Ooo'ooO from your
stockholders without cost"
II think the plan as devised and oper-
ated was absolutely right in every par
ticuar"
Mr.. Stanley quoted the minutes in
which Mr.. Perkins was quoted as having
said that if I'VE got 40 per cent of the
preferred stock in obligations maturing
in fifty years we would he creating a
sinking fund for retiring what is con
sidered some Of the water in the con-
Germ"
How much water was there in the
Steel Corporation?" the chairman asked
IL did not feel that there was any,
but IT was the common criticism OF the
time that there was water in the cor
poration."
We'll. then. why did you discuss
water in the stock with them
Il know of no other answer can
make than what l have said, that me
criticism was in the air
The chairman then referred TO d
statement made by MI Perkins at the
came meeting in answer to question:
by the chairman, r. II. Gary, il II was
his idea TO make an elastic stock so
that he could issue bonds in place ol
preferred stock. Mr.. Perkins Is saiu
20 have declared he thought that Woulu
be dangerous
Dangerous 10 whom" asked Mi.
Stanley.
Mr.. Perkins Seemed Nervous
az really don't know" Mr.. Perkins re-
plied. He had been acting nervousiS oil
through the reading of the mnues ana
the questions. anu sat WIN ''
ed. rolling his thumbs. In TINS SAM
meeting the chairman quoted 1uuee
Cary as saving he believed it pretty
good plan. and that the corpora'io"
must raise more money somewhere
"no Won remember that statement D!
Judge Cary" he asked.
mo do not" said Mr.. Perkins
.Weu. I enter into the record al Va
.his remarkable statement sara 'ie
chairman -.
REPRESENTATIVE Bartlett led the VII
mss into a description OF the pdhi| VI
IoO7 and the events which lea up ~
,b. ABSORPTION of the Tennessee Coai
a,d Iron Company by the steer Ooi
variation. Mr. Perkins FIRST gave Z"
rraphic picture of conditions III NeW
York how the city of New Aork nav
,o he helped. the stock Exchange a'ueu
nv many millions. and particularly eA-
,Iained the threatening condition Vi 'l'e
rrrs+ COMPANY of America ana the
Lincoln Trust Company.
"r.aso trust companies and the hrm
If Moore & Schley were remoiihs III '"o
balance" MI Perkins SAID
Tho examination brought out iurther
,bat the Secretary Of the Treasury
c.orre b. Cortelyou. about OCTOBER o.
d.nosi,ed in the New York banks apou'
COX mo ono. vet during that week there
ware heavy Withdrawals and the uus'
companies were appealing for help' MI
Perkins told how a futile EFFORT hau
tear made to organize a trust company
clearing house and how Mr.. Morgan Iau
sought without success among the DIE
trust company bankers relief for the I'M
narilled concerns on Thursday, the
oFth the stock Exchange, he said had
f. be saved. and he related now MI.
Morgan lust before closing time raised
$4,000. 600 TO save many failures
AIR. Bartlett led the witness directly
the Tennessee transaction to save
Nloore & Schley. and concerning this MI
Perkins made the following statement
different i'm "a measure from previous eX-
plantations:
The net result Of that deal was TO save
Moore & Schley. but as part OF the con
djtion Of that transaction IT was PROVIDED
TennesseA 10 save Moore & Schley the
bankers Of New York were bound 10 raise
money 10 prevent the Trust Company oil
America and the Lincoln Trust COMPANY
from failure This they did. and announce
menf Was made November 6. two DAYS alter
the deal. that all three firms had Deen
saved
Mr.. Perkins insisted that the Steel
Corporation did not want the Tennessee
company He said he knew all about
the visit Of Judge Gary and Mr.. Frick to
Washington, and what they went for
IF their answer had not reached US
from Washington ny 10 o'clock on Mon
day morning, November o. he said
moore & Schley and the trust com
panies would have gone 10 the wall and
great disaster would have been on.
In reply to suggestions of conspiracy
and driving Tennessee stock in the mar
ket. Mr. Perkins said:
Never was anything more faise-Witn
all due respect to you. Judge Bartlett
At times Mr. Perkins grew excited and
stood up. pounding the table with his
c1enched hands. when asked if Mr.
Morgan wasn't the financial dictator ne
said:
MIR. Morgan certainly was the savior
Of that panic. II there ever was gen
eral in charge Of any fight for any peo-
,le u,bo ACCOMPLISHED more than Morgan