The Birmingham age-herald., 1913-01-16

,.,.s.sssssssssssssssssss
s1oio0o.ooO when they were transferred
to the Amalgamated?
Eyes. a profit for those who held the
shares
Ordered Papers Destroyed
Witness said that in 1904 he ordered
all his papers and accounts destroyed
because Mr. Lawson and Mr.. Rogers
were engaged in an alteration They
were both friends and did not wish
to become involved witness declared.
Perkins was the first to take the stand
in the late session. Samuel Untermeyer
asked:
What is your present occupation"
I'm a student. | also spend con-
siderable time testifying before congress
sonal committees
Perkins told of having been a mem-
her Of the firm of j. T.. Morgan Il Co.
and his connection with the United
States Steel corporation. He was still
a director and member of the finance
committee of the corporation, he added.
Mr.. Perkins as a director in the steel
corporation and the International Har-
Yester company is a defendant in the
governments suits for dissolution of
those concerns. He said the corpora
tions bought its own stock so far as he
klltW 10 ne Soiu W tHpiOet ullQel
profit sharing schemes.
I'VE never knew of the corporation
buying its own stock to protect il in
the market and know OF no pools TO
manipulate the market in steel stock,
Perkins said.
The chairman asked if he believed di-
rectors should be allowed to trade in the
stock of their own corporation on adj
vance information secured by them
through their connection with the trust
Perkins replied in the negative. The
steel corporation was the first big cor
.poration to give entire publicity TO its
affairs was it not? Untermeyer insisted
Witness replied In the affirmative. Per-
kins said he believed all corporations
should give publicity to all their az
fairs.
Now as to tie organization of the
Harvester company, that was more par
ticularly your sob, was it not?'
1T was
The chairman told Mr.. Perkins that he
did not wish to ask any questions that
might bear upon the suit of the govern
ment against the Harvester trust. Mr.. Tn
termeyer dropped the questions into the
Harvester company after the witness said
he was a member of its finance commit
tee. Perkins said he was one of the orig
inal voting trustees for the Bankers
! Trust company.
what useful purpose is served by plac
ing the voting power of trust company
in the hands of few trusfees?'
"A voting trust was used in organizing
new concern TO insure its being run
along certain lines indorsed by the trus-
tees after correction of previous errors. "
Federal Control Favored
Untermeyer asked If Mr.. Perkins had
formed any idea as to the desirablity Of
placing the stock exchange under legal
control. Mr.. Perkins said he favored put
ting the stock exchange under federal
control. Il feel that II the stock ex.
change were Incorporated and put under
some broad system of regulation that il
would inure to the benefit of the people
would be better for the public and the
people conducting its business" witness
said.
.what remedies do you suggest for the
stock exchangeg
THAT is a matter of detail" witness
answered. Il believe 50 many of the er-
rors could be corrected by publicity
Witness added 1t would afford the in
yestor better opportunity to know OF
the intrinsic value of securities in relation
TO the stock exchange quotations.
what would you do about manipuld-
ton of prices In false quotations."
That's a different question: that form
of speculation Is indulged in even down
to the farmer who sells his wheat this
winter for delivery next spring.
A few men who met in New York felt
there was need for the organization, he
said. He added the bankers trust conf
pany was the first institution organized
rnder voting trust.
DO you approve it?''
probably NOT, but / am not sufficient
Iy familiar with conditions to say" Per-
kins replied.
Witness said he believed minority stock
holders OF corporations should have q pro-
portlonste representation of the board OF
directors.
do you, or do you not approve OF q
change in the law that would give the
minority stock of a corporation under its
proper tagged line it's right of represen-
tetion-?" asked Mr.. Untermeyer.
II certainly would approve OF that If II
were properly safeguarded and in such
wise properly introduced to bring about
and establish relief
Perkins declared he did not believe
persons should have the authority 10
go away aud buy one or two shares OF
stock and then demand representation
on a board OF directors. "and raise hob
with the company's welfare
Thinks Stocks Gambling
1--WE would like to know what would
happen II the mdfketS were StoppenF
Mr.. Untermeyer asked. Perkins said
some thought 1t was gambling He said
he did not know whether law could
fix sums of money 10 be invested. Wit
ness said he favored small boards Of
directors with concentration Of respon-
sibility and an enforced certifcation of
directors that they know the exact
conditions. Mr.. Urtermeyer produced
from exhibits in the record a list of
resources of J. p. Morgan & Co. the
Guaranty Trust company. the Bankers
Trust the First National bank.N the
National city bank, Chase National
bank and the National Bank of Com
merce- showing that combined they
controlled $1,39s, ,600, 900 and that the
! Equitable and Mutual Insurance CON-
/ panies controlled S1,901 100000 Mr.. I'm
| termeyer then framed a hypothetical
question. He assumed that ,489, 600, 000
! In all was controlled and asked Pc
kins If he thought that concentration
Inenafe and peril to the Legitimate
| interests OF the country Witness re-
piled:
| i've had thai question over night