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# BURRAGE TELLS MONEY
# TRUST COMMITTEE HE
# CAN'T RECALL GAINS
WHETHER HE MADE MORE OR LESS THAN $5,000,000 WITH ROCKEFELLER,
DALY AND ROGERS, ASSISTING HIM IN ORGANIZAING AMALGAMATED
COPPER, IS NOW BEYOND HIS MEMORY.
# GIGANTIC DEAL PUT THROUGH
# WITHOUT SCRATCH OF THE PEN
Washington, Jan. 15. Albert C. Burrage, of Boston, was a witness before the house money trust investigating committee today. He testified he was an organizer of the Amalgamated Copper company in 1906. He named as his assistant William Rockefeller, Marcus Daly, H. H. Rogers and others. Mr. Burrage could not remember how much was made by the organizers in turning over the various properties to the Amalgamated.
"Were the profits $31,000,000," asked Mr. Untermyer.
"I could not say," answered Burrage.
He could not remember his own profits nor those of Thomas Lawson, William Rockefeller and Mr. Rogers. Mr. Burrage said he got his profit in securities so far as he could remember, and did not get any Butte Boston or Boston-Montana.
"Will you say that your profit was not more than $5,000,000?" asked Mr. Untermyer.
"I could not say," answered Mr. Burrage. He knew of no records of the deal.
"Then this entire deal, involving f $75,000,000 was accomplished without the scratch of a pen?" asked the counsel.
"Yes, so far as I know."
"The public came in shoals, didn't e it?" asked Mr. Untermyer.
"Yes, you might say that, said Mr. Burrage.
About $375,000,000 of offers were received for the $75,000,000 of stock.
# FORGETS OTHER DETAILS.
Mr. Burrage could not remember details of operation by which Amalgamated took over Boston and Montana and Butte and Boston. Boston and Butte, Mr. Burrage said, was accumulated on his advice. Later, he said, the Globe Bank of Boston, failed, of holding a large block of Boston and Montana stock. Just prior to the failure, he said, Mr. Lawson conducted a vigorous campaign, "bulling Butte and Boston and "bearing" Boston and Montana.
Mr. Burrage said he had taken no part in the negotiations by which the Amalgamated organizers secured the Boston and Montana stock held by the Globe bank. He did not believe the Lawson advertising campaign had any relation to the Globe failure.
Mr. Burrage said that Butte and Boston stock was exchanged for Amalgamated, at a rate of four shares of Amalgamated for one of Butte and Poston, which, with Amalgamated at 130, made a price of 520. Butte-Montana, he said, was exchanged share for share with Amalgamated in the merger.
Mr. Untermyer asked if Mr. Rogers and Mr. Rockefeller had not acquired Butte and Boston and Butte and Montana and had then as directors of the Amalgamated voted to buy this stock for themselves. But Mr. Burrage did not remember.
# HUGE PROFITS.
"But you know that the value of these stocks increased from $30,000,000 to $104,000,000 when they were transferred to the Amalgamated?"
"Yes-a profit for those who held the shares," answered Mr. Burrage.
Mr. Burrage said that in 1904 he ordered all his papers and accounts destroyed because Mr. Lawson and Mr. Rogers were engaged in an altercation.
"They were both friends of mine and I did not wish to become involved," said Mr. Burrage.
With the conclusion of his examination the committee recessed for lunch.
# BIG MEN TO BE CALLED.
With Dr. Richardson and Albert C. Burrage, who was concerned in the re-organization of the Amalgamated Copper company testified, a list of financial leaders waited to be called. They were President Hines of the National City Bank of New York, George W. Perkins, Thomas W. Lamont, H. P. Davison and George. F. Baker, Jr., the latter a son of the leading figure in the First National bank.
The committee will take up the question of whether Mr. Rockefeller is to be examined at an executive meeting late today.
# ROCKEFELLER HAS PALSY.
Washington, D. C., Jan. 15. Although suffering from "shaking palsy" and unable to speak above a whisper, William Rockefeller would be able to undergo a "brief examination" before the house money trust committee, if his testimony is of "paramount importance." So Dr. C. W. Richardson told the committee today.
He said that to submit the oil magnate to prolonged questioning might cause a hemorrhage or a swelling of the larynx which would stop his breathing.
Perkins was the first to take the stand when the committee resumed the hearing.
# PERKINS A HUMOROUS STUDENT.
Samuel Untermyer, consul for the committee, asked:
"What is your present occupation?"
"Well, I am a student just now," answered Mr. Perkins, with a smile. "I also spend considerable time testifying before congressional committees."
Mr. Perkins told of having been a member of the firm of J. P. Morgan & Company and of his connection with the United States Steel corporation. He was still a director and member of the finance committee of the corporation, and had a great deal to do with its business organization after it was formed. Mr. Perkins is a director of the Steel corporation and the International Harvester company.
# HARVESTER TRUST A DEFEND-
# ANT.
Washington, D. C., Jan. 15. The International Harvester Co., is a defendant in the government's suits. the dissolution of these concerns.
As Samuel Untermyer, counsel the committee began to question h about those two companies, there w much speculation among lawyers and others present as to whether Mr. Perkins' answers would give him immunity from any possible government prosecution.
Mr. Perkins said the corporation brought its own stock only, so far as he knew, to be sold to employes under profit sharing schemes.
"We never knew of the corporation buy'ng its own stock to protect it in the market and know of no pools to manipulate the market in steel stock," he said.
He did not believe that directors should be allowed to trade in the stock of their own corporations on advance information secured by them through their connection with the corporation.
"Now as to the organization of the Harvester company, that was more particularly your job, was it not?"
"It was," said Mr. Perkins.
Mr. Untermyer told Mr. Perkins that he did not wish to ask any questions that might bear upon the suit of the government against the Harvester "trust."
"In fairness to myself, and the committee," said Mr. Perkins, "I suggest that I have just testified in that suit and it would be difficult for me to testify about the Harvester company without infringing upon the matters at issue."
Mr. Untermyer asked if Mr. Perkins had formed any idea as to the desirability of "placing the stock exchange under legal control."
Mr. Perkins said he favored putting the stock exchange under federal control.
"What legislation would you recommend to remedy abuses on the stock exchange?'
"Well, that is a matter that leads into detail. I believe that many of the so-called abuses would care themselves with plenty of publicity," said Mr. Perkins. He added that he would afford the investor a better opportunity to know of the intrinsic value of securities in relation to the stock exchange quotations.
"What would you do about manipulation of prices to false values?" asked Mr. Untermyer.
"Well, that is a very difficult question," said Mr. Perkins. "That form of gambling is indulged in even down to the farmer who sells his wheat this winter for delivery next spring."
Mr. Untermyer dropped the questions into the Harvester company after the witness said he was a member of its finance committee.
Mr. Perkins said he was one of the original voting trustees of the Bankers Trust company.
"What useful purpose is served by placing the voting power of a trust company in the hands of a few trustees?" asked Mr. Untermyer.
Mr. Perkins answered that he believed a voting trust was used in organizing a new concern, to insure its being run along certain lines endorsed by the trustees.
"A few young men in New York who met occasionally at dinner and about town felt that there was an opening for another trust company in New York and we organized this one." which he said was the first financial institution organized under a voting trust.
"Do you approve of the continuance of this voting trust?" asked Mr. Untermyer.
"Probably not," said Mr. Perkins,
(Conti
