The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1911-08-17
LAWS ARE A MENACE.
Perkins Urges Change in Antitrust
Statutes.

Perkins, financier and director of the
United States Steel corporation, made
some striking recommendations to-
day with reference to the govern
ment's control of corporations. A
witness before the house "steel
trust" investigating committee, he
declared that existing laws were Sc
riously threatening big business in
terests and their rigid enforcement
was rendering it impossible for cor
porations to continue operations in
conformity with the statutes.
Mr.. Perkins touched on needed re-
form in the laws, discussed the ex-
listing condition of corporations and
pointed out changes that should be
made by congress in the financial sys-
tenn of the country. Some of his OBJ
servations follow:
Trusts Can't Exist.
That great corporations, grown up
under demands of existing condi-
tions, could no longer successfully
exist under the Sherman antitrust
law as now rigidly enforced.
That the governments dissolution
of the Standard Oil company served
as a waving of a "red flag" of warn
ing to every corporation in the
United States.
That something of a constructive
nature must be done by the govern
ment with reference to the control of
corporations and rather than for
pl esent conditions to continue it
would be better to go to 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 a
corporation from operating and rul-
ing the subsidiary concerns instead
of merely advising them.
Prevent Concentration.
That one great stride toward avert
ing financial panics in New York
could be made if the government
would prevent banks in Chicago and
the Middle West loaning money on
call in New York during the summer
at cheap rates and suddenly calling
it back in the fall for the crop move
ment, making, high money and
trouble in the New York market.
That the establishment of a gov
ernment bureau which could give ac-
curate information to the public as
to the condition of corporations
would be an active inducement to
the people to make wise investments.
That one of the most striking de-
velopments of the present system of
conducting business on large scale
is the dividing of great interests into
the hands of many investors rather
than concentrating them in the
hands of a few.
Mr.. Perkins will take the stand
again tomorrow.
Too Much Alarm.
Mr.. Perkins also said there was
too much alarm over the cry of an
ore monopoly in the country. The
witness denounced as an infamous
falsehood" the charge that the panic
of 1907 was precipitated for the pur-
pose of running certain bankers.
One the question of wages the wit
ness 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. P. Morgan and H.
G. Frick, had refused to cut wages
when William E. Cory, then presi-
dent, and other directors urged cut
USCduSo tOupSllIolS udu oloSASN
prices and reduced wages.
did the United States Steel cor
poration ever trade in it's stock?'
asked Representative Beall of Texas.
'Not in the sense of speculation, :"
said Mr.. Perkins. at has purchased
stock for the purpose Of it's profit
sharing plan, and it has purchased
bonds for sinking fund purposes.
The corporation has scrupulously
avoided anything resembling specu-
lation in it's securities"
In discussing the organization OF
the steel corporation Mr.. Perkins
said that it had more than 100000
stockholders and that more than 35,-
900 employees were interested as
stockholders under the company's
profit sharing plan.