Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-08-09
Must Answer Questions of
Steel Investigators
Or Take Chance on ImpTIson-
meni For Contempt.
Steel Trust Man Takes Tine TO
Consider His Position.

1
| said 70 have aided in averting imam
| cial disaster during the panic OF 1871,
| faces tonight the alternative or an
| swerine questions To the House com
| mittee Of lnouiry into the Steel Corpor-
| alton. hearing on his personal cam
| paign contributions and such eontrl-
| butios made by the New aoFk IL
| Insurance Co, or being clteo peloi
| the bar of the House OF Representa-
| tives.
Should the House sustain the major
| itv Of the committee ana order M
] Perkins to answer and should ne lheh
still refuse, he may be ad1udsed III
contempt of Congress and imprisoned
| 1t is believed. however, that TINS CRISIS
| will not be reached. Mr.. Perkins nav
ing expressed a desire to reflect on ms
| position.
Mr.. Perkins, though personally Will
ing 20 talk about campaign eohtflpu-
tons. refuses on the advice OF ceahSel,
To answer interrogatories on that llne
put to him b. chairman Stanley ana
Ron Real of Texas Richard Linda
hurry. counsel for the Steel Corpora
ton. and Edgar \. Bancroft. who APP
peered for Mr. Perkins insisted mat
the authority given the committee IA
this inquiry made irrelevant an at
tempt to inquire into the private cam
naign contributions Of the witness or
his relations with corporations foreign
to the Steel Corporation.
Ta1e today after the witness. ms
counsellors and the committee Mrah-
gle1 along over the hitch. and 'he
ehairrnans decision that he answer
had been sustained after an appeal py
Representative Young OF Mlchlgah'
Chairman STANLEY warned Mr. PERKINS
that II might be necessary Ia cite nm
IN tho bar of the House. The chairman
later suggested that the New YORK
Bnaneier appear before the House
tomorrow 10 avoid being taken INTO
enstoav by tie sergeant -at-arms.
When matters reached this stage
Mr. Perkins said the situation was so
critical that he wished time 10 con
slider. This was granted and the m
vestigation proceeded along o'iief
lines.
mfr Perkins said Chairman Stan
lev tonight. will be given another OPP
nortunitv to answer II he still per
sists in refusing to answer, there Will
be nothing To do but to cite him be
fore the bar Of the House. The pro
redure will be for the committee TO
turn him over To the sergeant at arms
Mr.. Perkins denied that any part
of his salary had by agreement been
turned into a fund for campaign con-
tributions He also declared he knew
nothing Of any fund to effect either
state or national legislation.
Rep. Beall announced that il the
committee had the power to do so, lie
would inquire into the campaign con-
tribution Of every director of the Steel
Corporation
Mr.. Perkins aside from this turn in
the committee proceedings. told the
committee d remarkable story of the
panic of 1907 and the events which
made necessary the absorption of the
Tennessee Coal & Iron Co by the
United States Steel Corporation. He
admitted the Steel Corporation had
contributed 10 the spread of protec-
tive tariff doctrine and verified records
produced by Chairman Stanley that
the Steel Corporation in 1905 sought
| legal advice which directed that. as a
corporation, ii should not make con-
tributions to campaign funds.
The witness was subjected to a
vigorous examination by Mr.. Stanley
relating TO the record of the minutes
of the executive committee on the
Steel Corporation, at which Mr.. Per
kins proposed a plan of converting
5000, 900, 900 worth of Steel preferred
stock into s250,000000 per cent. sec
ond mortgage bonds, thus gaining $780,
100000 without costing the corporation
anything.
After reading the minutes in which
Mr. Perkins was quoted regarding the
bond conversion transaction. Chair
man Stanley asked:
Did you ever propose to operate
this transaction so as to get $4,000,
600 for nothing?'
No, sir" said Mr.. Perkins.
You suggested this plan of con-
version, did you not?"
In anticipated you would question
me on that line and | have prepared
statement concerning just what / did
do" said Mr.. Perkins, which | will
ask permission to submit later.
| We'll, by this transaction you We're
to get $5000O,00o more working capt.
tal?"
| The net result was to get $50, OoO,-
600 at $500, 600 less cost year" said
Mr.. Perkins.
| Did yoa think it right morally or
ethleally to get $50,O00.000 from your
stockholders without cost"
I think the plan as decided and
operated was absolutely right in every
particular
Mr. Stanley quoted the minutes in
winch Mr.. Perkins was quoted as hav-
ing sand that IF we got 40 per cent.
OF the preferred stock in obligations
maturing in so years We would be
creating sinking fund for retiring
what is considered some of the water
in the concern"
no" much water was there in the
steer Corporation? ?" the chairman ask
ed
/, did not feel that there was any.
put 1t was the common criticism of
tue time that there was water in the
corporation"
ire chairman then referred to a
statement made by Mr. Perkins al the
| same meeting in answer IN a question