New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-11
PERKINS FOR REVISION
Of CORPORATION LAWS
Calls the Standard Oil Decision
a Danger Signal to
Business.
"PANlC WAS NOT PLANNED"
Witness Denies It Was Started to
Get Rid of Undesirable Bankers
Says Big Corporations Cant
Exist Under Sherman Law.
from Tho Tribune bureau.

Washington. Aug 1c.-Urging that some
thing should be done 10 revise the laws
regulating corporations and aocredtins
the halt in business 10 the uncertainty OF
the Interpretation OF such laws, George w.
Perkins spent another DAY on the witness
stand before the House committee irves-
tigating the Steel Trust
To-day's session was unmarked by the
clashes OF yesterday and the day before
when the committee which afterward re-
eeded from its position, talked Of bringing
Nj Perkins before the bar Of the House
because he would not answer questions
relating to his personal contributions TO
campaign funds Mr. Perkins again Srew
Indignant however when Representative
Bartlett asked him II the 1907 panic was
started TO get rid Of certain undesirable
bankers"
L say that there Is not a sointila OF
truth IN IT," answered Mr. Perkins, bang
Ing his hst upon the table. You might "a
we'll charge that a syndicate arranged 70
have Mrs O'IAery;S COW kick over the
lantern tnat burned Chicago
The decision in the Standard on case
and the order for its dissolution. Mr.. Per-
kins characterized as a danger sigma! 10
business. Corporations. he said could nor
continue successfully under the present
Condition Of the laws Mr.. Perkins dlo
not agree fully that the government should
regulate the prices asked by corporations
but he urged q stable Interpretation OF the
Law which would relieve Business OF us
present uncertainty
i agree that something needs 10 u
done As regards our relations 10 great IN
6ustriss." said the fnanoier. I'VE are ont
Of step and harmony with Germany ana
the hest thoughts OF the times. DO not
eerec 10 government price fixing put
would 90 so far rather than continue a.
We now are. ] would not nave the stand
ard Oil Company broken up until We ma
ont whether il is a good and usetui con-
Germ The government has spent years IN
hrdinr out something about the company
hut instead Of ascertaining its value as
proaucer. an employer and servant OF
public interest. the government is proceed
ink 10 break II into thirty-three parts.
Wide Range Of Subjects Covered
Mr. Perkins went over a vide range OF
subjects He touched on needed reform IN
III. laws. discussed the existing condluons
OF corporations and pointed out changes
that could be made by Congress IN the
financial system of the country Some OF
his observations follow:
THAT great corporations. grown M
under demands Of existing conditions
coo,6 no longer successfully exist under
the Sherman antitrust law as now rigidly
enforced
That the governments dissolution Of
the Standard Oil Company served as
waving Of red flag of warning to every
corporation In the United states.
THAT something Of a constructive nature
must be done by the government with ref
er.nce 10 the control Of corporations. and
rather than for present conditions 10 con-
tinue II would be better to go TO the limit
OF permitting government regulation of
prices.
That the very reason subsidiary COM
panies OF a great corporation can violate
the law without knowledge Of the officers
of the holding company is the law which
prevents such corporation from operat-
ing and ruling the subsidiary concerns in
stead OF merely advising them.
That one great stride toward averting
financial panics in New York could be
made IL the government would prevent
banks in Chicago and the Middle West
ing the summer at cheap rates and sud
denly calling II back in the fall for the
crop movement. making high money and
trouble in the New York market
That the establishment Of a government
bureau which could give accurate informa-
ton 10 the public as to the condition Of cor
porations would be an active inducement to
the people 10 make wise investments.
,l,1 eY~f lyt,,e, lon.
nents % the present system OF conducting
business on a large scale IS the dividing OF
great interests into the hands Of many in
vestors, rather than concentrating them in
the hands of a few"
Not Against Organized Labor.
Mr. Perkins made other interesting state
ments. He said there was too much alarm
over the cry of an ore monopoly in the
country and that valuable ores constantly
were being discovered and ores yet unavail-
able were being studied and soon would be
available. The witness stated emphatically
that the steel corporation was not opposed
20 organized labor, but insisted merely on
the right to run an open shop.
On the question of wages. the witness
declared it always had been the policy OF
the steel corporation 10 maintain wages.
RE related how in 1909 he and Judge Gary,
with the acquiescence OF J. Pierpont Nor
gan and II c. Frick had refused 10 ont
wages when William +. Corey, then pres
ident, and other directors urged a cut be-
cause competitors had slashed prices and
reduced wages
Representative Besll OF Texas. directed
line Of questions to Mr.. Perkins late I'm the
GAY relating 10 his personal dealings IN The
United States Steel stocks which counsel
for the steel corporation, Mr. Lindabuiy.
mildly protested against. but he did not
press his protest
Mr. 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 conferred into
; per cent second mortgage bonds sso000000
OF which stock was turned I'm BY syndl-
cate OF stockholders.
so far az YOU know" 0lr BeaH asked
did any member Of that syndicate make
any profit out of that bond conversion exc
cept the Per cent stipulated ~ the con
tract"
They did not said Nr Perklns
Did you or any one else that you know
Of buy or sell or trade in United States
Steel preferred or common stock while this
transaction was being planned"
no. ST." was The reply
Did the United States Steel CORPORATION
ever trade IN SIS stock"
Not la the sense Of spe -uIation" said
Mr Perkins 1T has purchased stack for