The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-08-09

who was there to make it2 There was no
! money available for that purpose. We
had to furnish S30, 900. 900 to the city OF
New York in order that il might meet it's
| obligations. We tried to get Europe to
rants. but they would not do It. What
do ,yom think would have happened If II
had come out during that week Of panic
in October 1907. that the city Of New York
had failed? The situation was a bad one.
a very bad one indeed"
MIR. Perkins said that MIR. Morgan
proved "A life saver" in October. 1907.
| You said you regarded Mr.. Morgan as
savior in this situation that we are dis
cussing?" Queried MIR. Bartlett.
NO man ever did more in great emer-
gency." responded Mr.. Perkins.
The witness said that everybody con-
cerned went TO extremes to save the
situation" in 1907. He told how he called
up George b. Cortelyou. Secretary of tho
! Treasury, on one occasion. He sug-
gested that the Government as means
OF easing up conditions permit the rail-
roads to discriminate by furnishing cars
for the transportation Of grain. cotton
few hours he received reply that the Gov
ernment would act in accordance with his
suggestion.
As understand you. the cxigencies OF
the case warranted the President Of the
United States in violating the law; in
other words. the exigencics of the case
warranted him in exercising plenary
powers?"
Counsel Lind,bury objected to this
question and the witness replied that he
was not qualified ito 60 into that sub
ject."
T.c.aI ACQUISITIONS.
Replying to the questions Mr.. Perkins
| insisted that the acquisition OF the securi-
| ties OF the Tennessee Coal and Iron Com
pany held by Moore q Schley was one Of
| the big factors in saving the situation in
the 1907 panic. II was imperative as
things stood that the Steel CORPORATE on
| should purchase these securities. as no
other interest was willing or able to take
them.
did the acquisition of Tennessee Coal
securities add to the value OF your hold
ings?" asked Mr.. Bartlett.
1T added something to our capacity.
but added nothing to the value Of our
securities" Mr.. Perkins replied.
Did no: the acquisition OF Tennessee
Coal absorb more water Of your corpora
ton than any transaction in which steel
has engaged?" asked Chairman Stanley.
Il have never even heard any one make
| a suggestion TO that effect responded Mr..
| Perkins with emphasis.
Did not the announcement of the fact
! that Tennessee Coal and Iron had been
transferred to the Steel Corporation i'm
! medately restore confidcnce?" asked Mr..
| Bartlett.
Not that alone" replied Mr.. Perkins.
Il, was an important factor. Of course
| what man is the controlling factor in
the financial affairs Of New York;" asked
Mr.. Bartlett.
His name is legion" replied the wit
ness
is it not fact that Mr.. Morgan and
his associates control the financial situ-
alton in New York as they piease2
Absolutely not" responded Mr.. Per-
kins
PANIC NOT A DRIVE on MORSE.
lis 1t not a fact that this 1907 panic
was sta rted by drive and assault upon
the Mors Sc, Heinze and Thomas banks"
That is in toto not so, There was no
drive or assault upon anybody"
Mr.. Perkins was questioned in regard
to campaign contributions made by him
personally He said he was willing TO
answer the questions but objection was
entered by Counsel Linda bury. A long
Michigan, Republican, finally suggesting
that the question was improper. Mr.
Young contended that il was not the busi-
ness OF the committee TO inquire into per
sonal contributions made by Mr.. Per-
kins.
Chairman Stanley ruled that the wit
ness should answer. Mr.. Young APP
pealed to the committee. BY stric'
party vote the ruling of the Chair was
upheld. Mr.. Perkins declined to answer
ION advice of counsel"
This was the beginning Of the CON
troversy that led up to the threat ol
Chairman Stanley that unless the witness
answered questions that the committee
regarded as pertinent he would be cited
to the House as in contempt.
At the beginning of his testimony MIR
Perkins was question ed in regard to tn,
organization Of the S teel Corporation.
ANY PORT IN STORM.
"Do you remember a conversation 20 I
had in the library OF J, p. Morgan's home
in 1907 with Grant p. Schley rela i've to tht
advisability Of the Steel Corporation ac.
Coal and Iron Company" asked Mr.
Stanley.
lido" replied the witness. Mr.. Perkin.
then told Of the panicky conditions ir
New York in 1907 and Of the peril OF
Moore 4 Schley. which firm had secured
of the Tennessee Coal and Iron Company
1t was any port in a storm for them. "
said Mr.. Perkins. And as far as we were
concerned we wanted to save the situa-
ton. We would have gone IN just as
willingly IL the trouble had broken out
in the dry goods trade"
Mr.. Perkins testified that Mr.. Schley
had been through one crash after another
and that conditions were such that relief
could be obtained only from the Steel
Corporation.
The purchase OF the T. c. d I. securities
by the Steel Corporation was the only
relief that could be afforded bv j. P. Nor
gan 4 Co was it?" questioned Mr.. Stanley
1T was" replied MIR. Perkins. mfr
Morgan was the life saver Of that situation,
added the witness emphatically.
Early in the organization OF the Steel
Corporation the officers Of the concern
met in j. p. Morgan's office. Why did
you meet there'" asked Mr.. Stanley.
For convenience"
Whose convenience. Mr. Morgan's'"
"Evorybody's." replied Mr. Perkins.
Has Mr. Morgan ever had anv actual
experience with big industrial corpora
tionsf'
Mr., Perkins replied that Mr.. Morgan :
experience was very broad indeed.
WAS he over a foreman or n s'iperin :
tcndont Of mill?" askei Chairman