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Show mm plaii TO RAKE 111 $50000,000 Interesting High Finance Proposition Recalled In Steel Trasjt Probe. . NOTHING TO SHOW PLAN WAS ADOPTED Interesting Light on Inside Workings of the Giant Combination. "WASHHrOTOH Aug. . wto OooTf W. Peruana, former chaltmaa of tho flnanfo ooaunlttoo of tho United States Stool coraoraUoo, on tho stand. Chairman Stanley of tho house steal trust tavastt gating msainlaln today prodneod oopy of tho ilnittsa of stool cut potation's executive commlttoo, showing that In March, 1908, Mr.. Perkins Per-kins proposed a plan to raise 160,000,000 without costing tho eerpornUoa a east. This financial achievement was to havs been attained by taklag up about 40 per cent of tbo preferred stock, or about (200,000,000. coating 14,000,000 a year ia dividends at f per coat, aad t laauo .Instead 25O,O00,0OO of second mortgage 5 per cent bonds. Thl would have added to0,000,000 la 'new moaey and would have resulted in saviag to the corporation (100,000 a year. There was nothing ia ths minuses to indicate that the plan had beea carried through, although it apparently met with tha approval ap-proval of those pressst at tha mooting. George W. Perkins was advised by Chairman Stanley of tho steel trust Investigating In-vestigating committee today that, hia refusal to annwer questions of .Representative .Repre-sentative Beell of Texas, regarding corporation cor-poration and poreonal campaign contri-butioae, contri-butioae, might necessitate Mr. Perhins' citation to appear before tho bar of the hones of representatives. Mr. Perkins denied that any part of his aalary had been by ; agreeaMnt turned into a fund for campaign eoa-tributiOBS. eoa-tributiOBS. Ho declared ho knew .nothing .noth-ing of any fund to affect either state or national legislation. . . - Representative Beall announced that if the committee had--tho powei to'- do so he woul dinqalre into the campaign ooatributioa of every director of the steel, corporation . . I Edgar A. 'Bancroft of Chicago, counsel coun-sel for the International Harvester eoai-paay, eoai-paay, of which Mr. Perkins ii a director direct-or aad chairman of the finance committee,. com-mittee,. also waa present. , No Monopoiy-of Iron Ores. - At ths outset' Mr. Iiadabury said' he would Ilka to submit tho names of scientists sci-entists who bold that tho United States Steel eorporatioB hao ao monopoly of the available ores in tho Birmingham district. "There has beea testimony that ths stool corporation controlled from 60 to .70 per eent of tho Birmingham reserved ores" said Mr. Lindabury. "We have information from various scientists who insist our holdings are not more thaa 17 per coat, and wo wish the committee would hear more of them." Chairmaa Stealer of the committee declared that ha regarded tho Question of ore handling aa oee of the most important at issue aad that the committee commit-tee would welcome reliable testimony from any reputable scientist. "My mind ia else open on that question ques-tion as it waa when I thought the Steel corporation had a monopoly of. coking coal of the country," said ths chairman. chair-man. Ha added that tho committee might take a recess with tho adjournment adjourn-ment of congress1! but that in auch an event the matter would bo thoroughly taken up later. When the examination of Mr. Perkins began Chairmaa Stanley asked if at the time of the organization of tbo United Statea Sled corporation he wae a member mem-ber of the firm of J. P. Morgan A Co. "No, sir, ( was not." aaid Mr. Perkins. Per-kins. "I became a member of the Morgaa firm shortly after that." rermorly Witt Maw York Ufa. Htcole aad Mr. Morgan, Jr. At one time then!" . "I was in the life insurance business, vice president and chairmaa of the finance committee of tha New York Mfe Insursnco company. " "Were you at the time a director of the international Harvester rompaavf" "No, sir; I became associated with that company in Ifftio." "The minutes of tha first meeting of the finsnce committee of tbo United State Meel corporation oa April 10, luill, show thst yon were Invited to take the minutes. How long did you do that." - "I think for a few weeks only, antil the organisation wss perfected." "Who were the members of the firm of J. P. Morgan A Co. when yon entered the firmf " "I could not give all of them-, bat there were 1. Pierpout Morgan. Kobert BaroB, t'bsrles Steele, E. T. rJtotesbury and .!. P. Morgan, it." "Who of those became member of the steel corporation hoard of directors?" direct-ors?" Htceie." . . Steels." "Who of thst firm are aow members of the I'nited Statea Steel board of directors!" di-rectors!" "My recollection m Mr. Morgaa, Mr. Steele and Mr. Morgaa, Jr. At oee time there were four." (('oatinued oa page t. (MW 000 would w towtrt th common tork. W tmv worked out a form of bond and r rotntr to tuhmlt It to lh ttoard. I tvport this matter now tw w may tftlk vr f plain tf you dealre. , Wm prnpo to nffer th who) thlrc to tha preferred tockhoidra and ln thn vot on It." Jxdf Gary AAkm Qnoationa. Contlnulnr. th word quotM J'ldsr1 Gary aa aaklnc If th option would b xtn1Nf to wit atorkholdVra and If th finance committee proposed to maka an cluatlc bond "bo rou can.' If nf-'MMry, Imm bonds In place of preferred lock " The remainder of th rvord aa aa follow fol-low ' Mr. Perklna think that would be daniteroiis. IV figured 40 rr rent te-iaue te-iaue we neilftve that t'.n.OOO.OOO of eer- md mortgage honds would ba oonaidred ver good, where. If w railed $r,rto.. aoo.oon oi preferred tork. the iinf'ral TMIrlam would tn that h hortdp art n-K better wwrltv than the atork. and If rou paaa the dlvidrnda on the pre-fvrrwl pre-fvrrwl fo k you would not b In the hand of a re elver, and If you pnnaed ibf Interest on the bonda you would b. "Mr Rnhr - Will th rommoti 'k-'mM-'M b Invited to miburrlbe to th-ie tin-U? "Mr Parkin - S"o; w thouaht that we nuatu not to he allowed to j that, be-tni- have trlM to where tre iiiatlre w. The preferred atnrkhold"r" re entitled to a fair treatment aa ran t b give nthem for giving up thMr 40 Ipt f-ent of the atvfc. and th common ought not to IS alowd to tak theae I honde. Moreov- the eommn wtorkhoM-r wtorkhoM-r hav benefited bv t!ie arnlng rapacity .f the I6o.0u0.00d put into Improvo-mn". Improvo-mn". -Mr. Gary -I think, offhand. It 1 a prte good pfan. ' "Mr. PerVlna It put ui In I atmng financial poalilon and reduce our fixed charges. "Mr. Oarv In aom way we might rata aon extra money. We muat finance improvement that have been mad and mnt be made In - order to mk our different pi ant a aymmetriral. We muat have more money, and thia feema to b a wav to get tt without Increasing our flxdxbargea J ... STANLEY AND PERKINS f( ontipped from page 1.) Oorg W. Perkins, during hla examt-' natlhQ y Chairman Stanley of th afee! rMiratlon Inveatigat ing committee, waa confronie1 with a copy of th minute of the I'nlted Hfatea Htel corporation e-ecutlv e-ecutlv committee March 4. tW2. In which he proposed a plan to raise $.V).0(Mt0 without coating tii corporation a cnt Perkins Explains Plan. . TJc record if that metlns. read to Mr. Frklna, waa that of a pan which (he finance comniltti of th corporation iad bfn talking cvr and wna going o ul?mlt that d" to th board of dlrecmra. Mr. PTkln exilatned tl.nt when the p-irnte p-irnte compRn.e of th . i-orpratton wre ir"Ught twRcitir, there were irmnv con -rraci t Laf ba J rcemlv tien male ftr tcnir:na anl Improvenient aijuivrnt- nr aomethlng over HA.O'iu.tiy'i. j he cir y.rfttlon had reduced them Bom'hlng like 4-f.wO0,om, telng lurrej to carrv the enn-tracta enn-tracta along.- la addition, he told tlx) - fcutlve committee that th purchaa of the Rockefeller nil properties had cauee'l th corporate n to glv Mr. Hifkfeller nnt maturing thai vear amounting t ahrut ooo. ooo. leaving in all a:out J.in 00)..Mio that waa not -ptttl sd aad that "we have be-.t ami bothered lu knw jtiet what to do with it " "It waa not fair to take It out of the smlnge nf the several companiea." Mr. Perklna waa quoted aa having aald to the oxeoiitlve committee, after they were brought together, "and we have given th matter a good deal of thought aa to how and what to do with It and not hurt th securities. And ft brought about thla Idea of an attempt to retire part of the preferred slock of th company for sec-j ond mortgage bonds and save enough In doing so, ao we could get out an eatra amount of bonda to cover tha Items. Soma High rintac Detail. "W think we can take up about 40 per cnt of the preferred atock. or llOO.Onii,-ooo. llOO.Onii,-ooo. which now costs tl4.000.0OO in dividends divi-dends at 7 per cent on t'.'iO.ftOO.OOO and In place of that laaue l2RO.OOfi.000 of aecond mortgage per cant toonds. Tttgr-wmrM cell (or tlI.6OO.W10 and then hers l&e.eoi).. 000 of new money In addition to ssvtna l.&oo.ooo a year. Ilt.600.000 as acainst 14.000.000. So ws would zet $50,000,000 without costing us anything and save II 600.OA0 a year besides. There le no queetlon that It would be very desirable from the staandpolnt of the company If we can retire the preferred stock. When we came to look Into that, we concluded the only time '0 do It wae when the preferred pre-ferred stock was below par. aa It would then be some Inducement with people to take the bonds. If they had stock at 16 ay and coukl turn It Into bonds at par. they might feel that there waa something In It. And. further, we can only do It when the preferred stock Is held In large blockg. ao we could get a ayndlcate of It. "We began to looa about for the large preferred s toe kh ho Id ere and have been successful aftsr two or three monthe' work In getting up a good slsed syndicate of large- stockholders who would nut up their preferred stock and underwrite for the eaccese of the thing, provided the ernckholdero generally did not take It. Tha Idsa of the finance committee waa that we would make an offer to all of the preferred stockholders and say: "Will you change 40 per cent of the preferred of the stocq for these second mortgage bonder And If they did not do It, then the syndicate would stand ready to do ao at a reasonable extent; and If we did not ret the entire 4 per eeat. aay for Instance In-stance we only got 20 per cent, we would Insure 16 per cent of additional bonds for whatever etock we took up. That la. If e took up 20 psr cent of the preferred stock, or tlOO.OOO.Ooe, we would lesus I25.000.eoe of bonds In place of lio.004.000. (50,000,000 Tor Xothiag. , We thought tt would ha a- desirable JIan In many waywi It would give us so.tM.soe of cash without coat: It would wipe out thoee Inherited Improvements and pAv the Rockefeller notes. We have made aa arrangement with them to teke these bonds In settlement of their obligations, obli-gations, which la a good thing, of eeurss. See Louie Le Claire; Indian, ride Circle Cir-cle Dot, thevwild outlaw horse, Saltair, Thursday night. and War tn mn aVldttlonaJ turn or mony that might b uttd In reontanlaln mm of tba plants and dotn thlna that rant to hav tfona In Chi court, fend for tha hrMfa company at Flttabtirtr. In thia .war tha monvy Taly would am ta two way: Ffrat, tq tha handlfnt of tb , prod acta batwaen tha mills, aavinv In ananactmrtit, to handling? th bual-naaa bual-naaa and Incraaa-nf tha a?f1elany of tha mil lav ao aa ta ctva a larvar output and maka mora money In that way. Am to how tha toelvti4dara will taka It, It Mtmi l ua If tha prafarrad stock waa raduead about 40 par cant tha ra-malnlng ra-malnlng 0 pr osnt would ba mora fa-vorabla. fa-vorabla. and tba prafarrad stock holdars might look at U In thla war. Ws hava thoutfht tha bonda mlaht ba a thirty-yMr thirty-yMr bond and convarttbta Into prararrad stock within two yaara and fadaanubia at tha ooavanlanoa of tha oompany aftar tan yaara at ll. Another thing wa woula a4XhtTipllsn: If w cot 40 per cant or tha riraferrad stock la obltratlona matumg n fifty years, we would ba creating a Inking fund for retiring what la eon tide red sons of tha water tn tha eon-otm. eon-otm. Ho far aa tha oommon stoek is eonearnad. thla la go if to help It, be- |