The Birmingham age-herald., 1911-08-10
h.
 BY CUl,nlrIlIl lLA After Discussion Refusal to Answer Question Is
 Allowed
WITNESS AGAIN TELLS
 OF T. C. I. ABSORPTION
Steel Magnate Explains Method By Which S2O0, 100000 Preferred Stock Was Converted Into S250, ,0O0, 900 Second Mort
 gage Bonds

Washington. August 9-George w. Perkins, director of the United states Steel corporation. and former partner in J. Pierpont Morgan & O., was not ordered before the bar of the House today by the House committee of inquiry into the affairs of the Steel corporauoL Neither will he be.
 After heated executive session of Inc committee today, In which was dis dssed the refusal on advice of counssf n Mir. Perkins part to answer a sZ i've line
 of questions regarding e& >utions of corporations 10 campaign/ s, the com mittee reached an understanding whereby all threats were waived.
 At the outset the committee in executive session was induced by Representative Littleton to reconsider the action of yes- terday in which the chain was sustained, in ordering that the witness answer ques-
 tions as to his personal campaign contri-
 buttons.
 When the executive session of the com mittee was ended Mir Perkins was called for by Chairman Stanley. Representative | Litttleton, upon the arrival of Mir. Per kins, 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 cam paign funds after he became connected with Steel corporation.
 "Upon the admissibility of this evi- dence," said MT. Littleton, "a vote was taken and 1t was held to be legal to ask such questions. l have examined thor oughly the resolution of the House under which this committee was appointed, and after much discussion and consideration have made up my mind that any ques- ton to any witness as to his personal cam- paign contributions is not admissible un- der this resolution unless it can be shown that such contributions were made with the understanding that thereafter the contributor was to be reimbursed by the Steel corporation.
 "As to the question put yesterday re- lating to the difference in the method of i2keeping records between the United States Steel corporation and the New York Life Insurance company, thet sn,st- ter is still pending. Representative Beal, under direction of the committee VII continue to interrogate the witness l | 1 future questions as they come to me- | Representative Bartlett of Georgia, also | a democrat, is reported to have stood by MT. Littleton in the executive session in | his view of the situation. Following MT. l Littleton's statement, Chairman Stanley declared it was well known that campaign contributions that were not spread upon the records with any degree of voluml- nousness were made by corporations. CtanIay CfapJe Eirp,
 "An inquiry" said Mir. Stanley, "as to the methods by which the United States Steel corporation kept it's books with reference to this practice is re1e- want. MT. Beall may and will exercise wise discretion in the matter, but as to the question as to what difference there was in the way the United States Steel corporation and other corporations. that Is, the New York Life Insurance company, kept it's records, the chair still is of the opinion that it is relevant and competent, and should MT. Beall insist on an answer to that question. the decis- ion of the chair is not to be altered"
 Though his declaration created consid- erable excitement for a moment when MT. Beal re-stated the question, MT. Perkins did not answer and an answer. from him was not insisted upon. In-~ stead, Richard V. Lindabury, counsel for the United States Steel corporation rose to make a statement
 'T wish to say" MT. Lindabury began. that I am unalterable in my opinion re- lating to some questions as to campaign contributions of the Steel corporation. but I do object to any inquiry into the practice of the New York Life Insur- ance company as to campaign contribu- tions.
 Tn 1904 the United States Steel corpora tion contributed $10,Oo0 to a political cam paign whether for state or national campaign I do not remember. I will look up the records of this and of any otnt- contributions and submit them to the committed This contribution MT. Perkins knows nothing about"
 "Then that obvates the necessity of further questions in that regard,' said Representative Beall.
 Several questions along that line fol- lowed to which MT. Perkins replied nc never had expectations of reimbursements from anybody and there the campaign contribution inquiry abruptly ended.
 During the noon recess Representatives Stanley. Sterling and Llttleton. called on President Taft at the White House and gained his permission for the expert of the steel committee to have ac- cess to the information, as yet not made public. gathered by the bureau of corporations regarding the Steel cor poration Herbert Knox Smith, commis- sioner of corporations, will cooperate with the committees representatives and if he finds anything of interest to the committee which he thinks should not be disclosed, the President will act as arbter as to it's release.
 This was announced by Chairman Stan- ley at the hearing this afternoon.
 Talks of Merger
 Following the disposition of the cam paign question, Representative Beall led MT. Perkins again into the financial panic and the Tennessee Coal, Iron and Railroad deal. bringing up eventually the bond conversion transaction made by the Steel corporation.
 In the course of the panic investi- gation MT. Beall asked MT. Perkins if he remembered an interview In the New York Times in wnich he was quoted as having said the "chief sore spot in the panic vas the Trust com- pany of America. MT Perkins did not recall having given such an interview. but he said he had talked constantly to newspaper men during that period.
 MT. Beall asked if he had ever talked to Melville E. Stone. general manaser ----~-~~~~-------~~-