The Birmingham age-herald., 1911-08-11
Makes Strong RecOmmenda- tions for Federal Control
 of Corporations
BUSINESS INTERESTS
 IN SERIOUS DANGER
Steel Corporation Director Tells Stan lev Committee That "Red Flag of Danger Is Being Waved By
 Frantic Legislation

Washington, August 10.-George w. l Perkins, fnancier and director or the 11pited States Steel corporation, made soma striking recommendations today with reference to the government s control of corporations. A witness De- fore the House steel trust investl- j gating committee, he declared that ex- |H isting laws were seriously threaten ing big business interests and their rigid enforcement was rendering 1t 1m- possible for corporations to continue operations in conformity with the statutes
 MT. Perkins went over wide range of subjects. He touched on needed re- form in the laws, discussed the exist ing conditions of corporations and nointed out changes that could be made by Congress in the financial system of tbe country Some of his observations follow:
 That great corporations, grown up under demands of existing conditions. could no longer successfully exist Yn- der the Sherman antitrust law as now rigidly enforced.
 That the governments dissolution or the oldnudIu Oli SCiNco 'eAo ~ ''e-' ing of a red flag of warning to ev- cry corporation in the United States. That something of constructive nature must be done by the govern ment with reference to the control or corporations, and, rather than for pres ent conditions to continue, it will be better to go the limit of permitting government regulation of prices That the very reason subsidiary companies of a great corporation can violate the law without knowledge of the officers of the holding company IS. the law which prevents such corpor- ation from operating and ruling the subsidiary concerns instead of merely advising them.
 That one great stride toward avert ing financial panics in New York could be made if the government would pre- vent banks in Chicago and the middle 1 west loaning money on call Tn New York during the summer at cheap rates and suddenly calling It back Tn the iall H+.f ftle crpp movement, making htgn fmoney and uouble in the New York 7 market.
 That the establishment of a govern nlent bureau, which could give accurate information to the public as to the con Gition of corporations would be an active indncement to the people to make wise investments,
 That one of the most striking devel- opnents of the present system of con- ductlng business on a large scale is the dividing of great interests into the hands Of many investors rather than concentrat- Ing them in the hands of a few
 Mr. Perkins made the foregoing ob- servations during the third day of his eX animation by the steel committee inquisi- tors, and at this he was eloquent and forceful in his declarations. He frequent xyf,,rr 1,t arms, pounding upon the witness table with his fists and rising from his seat to address the committee. When the coni- inttee adjourned late today it had not concluded with MT. Perkins, and again to- norrow he will take the stand. He has been held longer by the committee than any witness since the hearing began last May.
 Perkins Grows Eloquent
 MT. Perkins made other interesting, statements. He said there was too much alarm over the cry of an ore monopoly in J the country. and that valuable ores con- ftantly were being discovered and ores LOW unavailable were being studied and soon would be available
 The witness denounced as an infamous falsehood' the charge that the panic of 19J7 was precipitated for the purpose of running certain bankers. He stated enl- pl tically that the Steel corporation was
 
 sisted merely upon the right to. run an open shop. .=,-
 On the question. of wages, the witness ,i declared it always had been the policy of the Steel corporation to maintain wages. He related how, in 1909 he and Judge Gary, with the acquiescence of J. Pierpont Morgan and H c. Prick, had refused to cut wages when William F. Corey, then president. and other directors, urged a cut because competitors had slashed prices and reduced wages.
 Representative Beall of Texas directed line of questions to Mir. Perkins late in the day. relating to his personal dealings in the United States Steel stocks, which counsel for the Steel corporation. Mr. Lirdabury, mildly protested against, but did not press his protest.
 MT. Beall and other members of the committee had been engaging the witness in a long review of the bond conversion plan of the Steel corporation, whereby [ per cent preferred stock was convert s cd into per cent second mortgage bonds $So.o0J,00O of which stock was turned in by syndicate of stockhold- CTS. .
 ''So far as you know MT. Beall asked, ''lid any member of that syndicate make any profit out of that bond conversion ex- cept the per cent stipulated in the con tractY'
 They did not" said MT. Perkins.
 
 buy or sell or trade in United States Steel preferred or common stock while this transaction was being planned?'
 NO, sir" was the reply.
 Did the United States Steel corpora ton ever trade in it's stock?"
 Never Speculated
 Not in the sense of speculation" said MI. Perkins. Tt has purchased stock for the purpose of it's proft-sharing plan, and it has purchased bonds for sinking 1rnd purposes. The corporation has scrup- ulously avoided anything resembling speculation in it's speculation in its securi- ties"
 Do you now whether any officers or directors of the corporation have pur- chased common preferred stock when 1t was extremely low in the market?" Mr. Beall continued.
 No. do not.
 Did you. yourself. purchase stock, and to what extent. regardless Of whether 1t vas high or low?'
 'I never purchased stock except as an , Investments"
 Did you ever sell any?''
 Yes, but l have never been connected . z