The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1911-08-11
WOULD BE PROPER FOR GOV.
EMINENT TO REGULATE
PRICES OF EVERYTHING.
RED FLAG OF WARNING
Declares Dissolution OF Standard Oil
Trust Should 30 Noted by Other
Corporations - StoutIy Maintains
That Sherman Anti Law 10
Detrimental to Present Methods.

Washington. Aug 10-George w.
Perkins, financier and director OF the
United States Steel corporation, made
some striking recommendations today
with reference to the governments
control of corporations. A witness
before the house steel trust" investi.
eating committee, he declared that ex-
isting laws were seriously threatening
big business interests ana their rigid
enforcement was making 1t impossible
Tor corporations to continue operations
In conformity with the statutes.
Mr.. Perkins went over n wide range
of subjects. He touched on needed re-
form In the laws, discussed the exist
Ing conditions of corporations AMI
pointed out changes that could be made
by congress In the financial system of
the country. Some of his observations
follow:
Observations.
That great corporations, grown up
under existing conditions. could no
longer successfully exist under the
Sherman antitrust law as now rigidly
inforced.
That the governments dissolution
OF the Standard OIL company served as
Il waving IL red flag of warning to
every corporation In the United
States.
That something of constructive
nature must be done by the governs
ment with reference to control OF cor
porations and rather than for present
conditions To continue II would be bet
a IN Ia
government regulation of prices.
That the very reason subsidiary
companies OF a great corporation can
violate the Jaw without knowledge OF
the Officers OF the holding company
Is the law which prevents such a COR
poration from operating and ruling
the subsidiary concerns instead Of
merely advising them.
That one great stride toward 3ert-
ing financial panics In New York could
be made IL the government would pre-
vent banks IN Chicago and the middle
west loaning money on call In New
York during the summer at cheap
rates and suddenly calling 1t back In
the fall for the crop movement, max.
ing high money and trouble In the New
York market.
That the establishment OF q gov
ernment bureau which could give ac-
curate information to the public as to
the condition of corporations would bs
an active inducement to the people to
make wise investments.
THAT one of the most striking de-
velopments of the present system Of
| conducting business on large scale
Is the dividing Of great interests into
the hands of many investors rather
| than concentrating them in the hands
OF a few"
Mr.. Perkins made the foregoing OBJ
seryations during the third day of his
examination and at times he was c.o-
quent and forceful in his declarations.
He frequently emphasized his remarks
by waving his arms, pounding on the
table with his fists and arising froui
his seat to address the committee.
Mr.. Perkins again tomorrow viii
take the stand
Refused to Cut Wages.
On the question OF wages the wits
ness said 1t had always been the pol-
ley of the steel corporation to main
tain wages. He related how, In 1909,
he and Judge Gary, with the acquies-
cence Of j. p. Morgan and III. G. Frlcl,
had refused to cut wages when VIII
liam !. Corey, then president. and other
directors urged cut, because cons
petitors had siashed prices and reduced
wages.
Representative Beal. after Other
members of the committee engaged the
MI ft,l1 in Is r..
conversion pfan Of the steel corpora.
tion whereby per cent preferred
stock was converted into per cent
! second mortgage bonds. 100000 ol
which stock was turned in by syn.
d!oate of stockholders, asked:
so far as you know did any mem.
ber OF that syndicate make any profi
3 out of that bond conversion. except tn,
per cent stipulated in the contract? p
'They did not" replied Mr.. Perkins
did you, or anyone else that yo,
know OF, buy or sell or trade in uniteS
States steel preferred or common
: stock while this transaction was be
: ing planned?'
: mo, sir"
e did the United States Steel cor
|, poration ever trade In its stock?"
Not In the sense OF speculation.
has purchased stock for the pnrpos
OF its profit-sharing plan. ana II ha
purchased bonds for sinking fund pur
poses The corporation has scrunu
n lousy avoided anything resemblin
J. speculation In its securities"
y. Didn't You buy when low and so
k when high?"
le Not necessarily. ! never sold Oh
share Of that stock short In my life,