The Sentinel=record., 1911-08-10
S5O,000,000 EASILY MADE
GEO. w. PERKINS TELLS HOW s2oo.ooo,ooo WAS CONVERTED
 INTO s25o,ooo,ooo.
Former Member of Morgan and Com pany Explains Famous Plan to Raise Money for im-
 provements.

washington, Aug. 9.-George Perkins, director of the United state Steel Corporation and former partne in J. Pierpont Morgan and Compan. was not ordered before the bar of tn, house today, by the house committe' of inquiry into the affairs of the stee corporation. Neither will he be.
 After a heated executive session O the committee today in which wa discussed the refusal on advice of tn' counsel on MT. Perkins part to ans wer a suggestive line ot questions re garding contributions of corporations to campaign funds, the committed rsached an under4tanding whereby all threats were waived.
 At the outset the committee in ex. ecutive session was induced by Hep rvsenratiye Littleton to reconsider tnt action of yesterday in which the cnaii was sustained in ordering that the witness answer questions as to his personal campaign contributions.
 After this was done a plan was agreed upon as toI just what qpeA tions regarding campaign contribu- tions should be asked and 1t was un deustood that Richard Ldndabury, counsel for the steel corporation would declare he knew of one con tribution of $10,000 made by that cor poration to a campaign fund in lsu4 This he afterward stated before the committee and thereupon the politi' cal phase of the inquiry apparently was dropped.
 When the executive session of the committee was ended Mir. Perkins was called for by Chairman Stan ley. Representative Littleton. upon the arrival of MT. Perkins began a statement, relating how he had been absent on the previous day when MT. Perkins had been asked to what extent he had made contributions to campaign funds after he became con nected with the steel corporation.
 "Upon the admissfbility of this ev- idence." said MT. Littleton, "a vote was taken and 1t was held to be le- gal 10 ask sucn questions nave examined thoroughly une resolutloh of the house under which this com mittee was appointed and alter much discussion and consrueratiol. have made up my mind that any question to any witness as to his nersonal campaign contributions is not ad- missible under this resolution unless it can be shown that such contribu- tions were made with the understand ing that thereafter the contributor was to be reimbursed by the steel corporation.
 As to the question put yesterday relating to the difference in the me- thod of keeping records between the United States Stele Cor ,-yTation ana tn New York Life Insurance Com pany. the matter is still pending. Representative Beall under direction of the committee. will continue to interrogate the witness and wish it understood that 1 will meet future questions as they come to me-"
 Representative Bartlett of Georgia also democrat Is reported to nave stood by MT. Littleton in the execu- tive session in his view of the sit uation.
 When MT. Beall questioned MT. Perkins again concerning the bond conversion plan whereby $zUU,vUv,vvv of preferred stock was converted in to $250.0O0.000 of second mortgage five per cent bonds the witness pro- duced a statement he had prepared on that subject.
 He explained that money was need : ed. shortly after the organization or the corporation. to carry on improve ments of the subsidiary companies and that it was impossible to use money out of the surplus for this pnr- pose. After discussing several meth ods suggested for raising money, MT ferkins in his statement, said:
 It was finally found impossible lo secure pledge of the entire $2Oo, ooO,oOo Of preferred stock but the best that could be done was to or sanize syndicate that would agree to the following. viz.:
 "t1rst-fsurthase and lodge win Y