The Washington herald., 1911-08-11
PERKINS OPPOSED
TO SPECULATION
FinancierFears Enforcement
of Antitrust Law.

George W. Perkins, former business
partner of ]. p. Morgan, told the Stanley
steel investigating committee yesterday
that measures should be adopted TO pre-
vent speculation in New York. He fol-
lowed this up with a declaration that the
decision of the Supreme Court in the
Standard Oil case should serve as "a
red flag of danger to every corporation
in the United States.
Mr.. Perkins further told the committee
that a literal enforcement of the Sher-
man antitrust law would prevent Iegiti-
mate expansion and possibly jeoparize
the present commercial supremacy of the
United States. He did not agree with
Judge Gary that government regulation
of corporations should extend as far as
fixing prices. That was an extreme to
which he was not willing to go unless
present conditi )ns were to continue. At
present. he said, all sorts of obstacles
were thrown in the way of commercial
expansion. Unless laws were passed to
remedy this state of affairs. Mr.. Per-
kins thought he would. come around to
Judge Cary's way of thinking
Committee shows Interest.
Mr.. Perkins criticism of speculation
in New York amazed the committeeman.
They leaned forward in their chairs as
Mr.. Perkins discussed this subject.
Representative Gardner, of Massachu-
sets. Republican member of the COM
mittee asked Mr.. Perkins if he believed
the currency system of the United
States could be revised in such a way
as to prevent a situation such as existed
in 1867, when d group of bankers in New
York whose efforts were supplemented
by the Secretary of the Treasury. were
able to invoke power that aVerted
disastrous panic. The witness replied
that the power referred to by Mr.. Gard
ner should be diffused.
''One thing you could do said Mr.. Per-
kins, Ito stop speculation in New York
and prevent conditions which precipi-
tate paniCS is to prevent the banks of
Chicago, St Louis and Kansas City from
sending their money in the summer to
New York, loaning it on call at low
rates, and suddenly Withdrawing it in
the fall to move the crops. That eXciteS
temptation to speculate, and II gives
us high money in the fall. and trouble.
l certainly believe that such situations
as | have pictured can be remedied."
Does the Aldrich currency plan COM
mend itself to your Judgment" asked
Mr.. Gardner.
Operate in Groups.
nat ODtHS up blS SubJtti'
sponded Mr.. Perkins. 1T would take
more than a day to discuss it properly.
There should be a plan under which
national banks could operate in groups.
Tie one thing that saved this country
at the time of the 1907 panic was clear
ing house certificates which meant that
institutions came together and adopted
protective measures that Injured to their
advantage and that of the public gen.
orally"
The witness was asked if legislation
could 6e devised to prevent the ship
ment of money to New York in the sum-
mer and it's withdrawal at the time Of
the moving of the crops.
There ought to be some plan to meet
it," answered Mr.. Perkins.
Il did not know that you disapproved
of the present system, suggested Mr..
Gardner, with a smile.
Il do disapprove of it. replied Mr..
Perkins emphatically. 81 regard it as
menace"
Later in his testimony, again referring
to speculation in New York, Mr.. Per-
kins exclaimed, II never bought share
of Steel stock on a margin; l never sold
short in my life; / have bought securi-
ties only by way of investment"
Mr. Perkins was on the stand about six
hours He discussed the panic of 1907 at
length. told of the organization of the
United States Steel Corporation and its
ACQUISITION of the Tennessee Coal and
Iron Company, debated questions of high
finance with the committee, and made
the assertion that the so-called trusts
of this country had reduced prices TO
the consumer, and had brought benefits
to labor that were unknown in the old
days of destructive competition.