Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-08-08
SENATE COMMITTEE TOLD OF
elAN ~ WHICH CORPORATION
SEEKS TO RAISE MONEY.
,asEeRREp STOCK RETIRED IN
ORDER TO SAVE INTEREST
ateek Being Taken Up Whs" ss'e"
D, and 5 Per Cent eonds lssusd !"
Il. stsad-Gsoroe w. Perkins
plains His Scheme When Prs'''o sy
Senatorial Inquisitors.

Perkins, o director OF tne OH''
Steel Corporation. former chairman -
II. enance committee. and former Pal
40 ., tho ]. p. Morgan & Co, ap-
neared today before the steer co"'''i'
TOO of inquiry into the United sta'es
s.oa, rornoration. Richard v. Linda
bury. counsel for the steel corpora'''"'
accompanied him. o,,n.
Edgar A Bancroft. of Chicago coun.
s.1 for the international Har'eee.
comnany. Of which Mr. PERKINS - q
d;rector and chairman or the LUG"
committee. also was present.
A. tho outset Mr. Lindabury mace
.a.amen+ saving he would like 10 SUI
NIT the names Of scientists "ho ..oN
that the United states steer Soi 49,.
+ion has no monopoly Of the asai' =
ores in the birmingham dlstic. a
Who saws the corporations hoioine
are not more than II per cent.
ch.irman Stanley. OF the conmlttee,
,oo,.ra6 that the committee "ouiu
,ra,oome reliable testimony from any
reputable scientist
s5o,ooo,o0o for Nothing.
NJ. perkins during his examination
,,,- chairman Stanley before the com. .
,,,;.+aa vas confronted with copy -. .
+ha minutes OF the steel corporauoh "
,I.rch a 1902. containing plan ol .a''
~ ..;sa s5o 0oo. 900 without costing the
CORPORATION q cent. ..a
NJ Perkins explained that when the
..narate companies of the corporation
1.ara hroueht together they were mar
inc contracts already planned Tor ea
.a,.;ora and improvements, aggresae-
~ more than $40 100000. The corpora
49,, had reduced them more than Wv
onn 400 In addition he told the e1ecu-
49,. committee that the purchase OF ene
paehafelIer oil properties had caused
49, oornoration to give 3Ir. RocketeAef
'Ae ,,,turins that year and amount
IN. N about $1O,000,000. leaving III az
about s3o,o00.O00 that was ho' oop1
ta,ized and chat we have peeh so'''e
what bothered to know just "fat u w
with" ,,.;,s
Mr. Perkins was quoted as sia.ii
told the executive commrttee l'ia'
vas not fair to take 1t out OF the e"1'
;n,s Of the companies, and IN oroei ny
~ hurt the securities he suggested al,
ATTEMPT to retire part OF the preae1
etock of the company for secono ',io.
.aoe bonds and "have enough III uo1.Ie
so 50 we could get out an extra i a''io"'S
~ bonds to cover these items.
Retire Stock to Save O'v'oe"os. a.
eve think we can take up aDou. ~
nor cent Of the preferred STOCK " s@vo'
900 900. which now cost Sl4,ooo'ooo o'
idends at Z per cent on $2Oo,Ooo,ovo, aifu
IN Mace of that issue $2oo'ooo'oov =.
second mortgage 5 per cent oonos 1 hal
,,-o,,,d call for s12.5O0.OOO and tnen ma We
t5o. 100000 Of new money IN aooi'io'i
+o saving q million and nan sea.'
s1e-5 100000 as against $l4,ooo'oov. oo
we would get $50,00O.0oo without COST,
inp rs anything and save mlilioh anu
half a year besides. There Is no qos
zion that It would be very des1fap,e :.
from the standpoint OF the company
We can retire the preferred STOCK Wnei.
we came to look into that we concfuoeo
the only time to do 1t was Wnen tne
n-eferred stock was below par as II
would then be some induceiiie1Ss 70 e'.e
neople to take bonds. It they nad STOCK
at s5 per cent say and could turn II INTO
honds at par they might feel tnat there
was something In It and further we can
ONLY do It when the preferred stock is
hniri In large DUCKS. VIC OS6o' ~
look about and have been successful
after two Or three months work in get
ling up a fixed syndicate Of large stock
holders who would put up their pre-
ferred stock and underwrite for the
success Of the thing provided the stock
holders generally did not take 1t. The
idea OF the finance committee was that
we could make an offer to all OF the
preferred stockholders and say. "WiH
YOU change 40 per cent Of the preferred
stock for second mortgage bonds And
1f they did not do 1t then the syndicate
would stand ready to do so to reason
able extent and II we did not get the
entire 40 per cent. say for instance, we
got but 20 per cent, we would issue 25
per cent OF additional bonds for what
ever stock we put up"
Refuses TO Answsr Questions.
Perkins and the committee were
deadlocked today over the persistence
OF Chairman Stanley. Of the commit
tee. that the witness should answer
questions as to his contributions to
campaign funds.
oReAloENT pl EA08 FOR TREATY