Waterbury evening Democrat., 1907-12-31
DEFENDS ROOSEVELT.
Taft at Boston Denies That Ad-
 ministration Caused Panic.
UPH0LDS WAR ON THE TRUSTS
Secretary Tells New EngIand Mer- chants That President Has Never Been Against All Capital, but Only That Violating Law.

Been Against All Capital, but Only
 That Violating Law.
 Boston, Dec. 31.-William H. Taft, secretary of war, in the first address he has delivered since his tour of the world defended the administration of Theodore Roosevelt against the accu- sation of responsibility for the panic of October and its consequences.
 It was as member of President Roosevelt's cabinet. in complete sympa- thy with the policies of the president respecting the prosecution of corpora- tions engaged in illegitimate practices, that he spoke to the members of the Boston Merchants association at a banquet at the Hotel Somerset. He ut tered no word that could be construed as an enunciation of any divergent views as candidate for the Repub- lican nomination for president. From the opening to the closing sentences he breathed loyalty to his chief and faith full adherence to the principles of gov
 
 claimed in his own speeches.
 q have selected as my topic for to- night" Mir Taft began, ''the panic of 1907, it's causes, its probable effects and the relation to it of the policies of the national administration.
 "For eight or nine months last past there were many indications that the loanable capital of the world was near exhaustion. The result was brought about not only by the enormous expan- sion of business plants and business investment. which could not be readily converted, but also by the waste of capital in extravaganza of living and by the Spanish war, the Boer war and the Russian-Japanese war and in such catastrophes as Baltimore and San Francisco. It became impossible for the soundest railroads and other enterprises to borrow money for new construction or reconstruction.
 Ut would seem that our system of currency is not arranged so as to per nit it's volume to be increased tempo rarily to counteract the sudden drain of money by the hoarding in a panic. It is probable that the stringency. which reached its height on that dark day of Oct. 24, might in part have been alleviated had we had cur rency which could automatically en- large itself to meet the tremendous demand of a day or month while ,ublic confidence was being restored"
 Mr. Taft expressed belief that the injurious consequences to follow the panic are not likely to be long drawn out He figures this from the fact that we have "a solid currency, the railroads are on much more solid foundation than in 1893, western mort gages have been wiped out and the balance of trade is with ns." Continu- ing he said:
 ''Let me invite your attention to the economic and political history of the past four years.
 Ut is that of a giant struggle be- tween the national administration and certain powerful combinations in the financial world. These combinations, for lack of q better name, are called | trusts.
 ''They became the dictators to great railroads. however powerful. and by threatening n withdrawal of patronage secured unla wful and discriminating rebates, greatly increasing their prof. its and still more completely suppress ing competition.
 "The purpose of the administratlo of Mir. Roosevelt was to make those men. however powerful and wealthy. to know that the laws upon the statute ! books were living things and must be Obeyed. In this struggle the admins tration has been greatly aided by the popular sympathy awakened by reve- lations as to breaches of trust by the ! of some of the great insur- | ance companies. by revelations as to | of the internal affairs l of great railroad companies. by the disclosure as to tho enormous amount ! of rebates cxtorted from the railroad | companies by these trusts and by the stock jobbing and over issuance of bOnds and stocks shown tO have occurred in the management of some of our great corporations.
 Tt is said that the policy of the ad- has lccn directed for the last four years against organized capi- tai and that it has thereby frightened investors. I deny It. The course of the administration has been directed against such organized capital as was the statutes of the United States-and no others. It had every and desire to aid and assist organized capital which was en- -aged in legitimate business
 Mr. Taft-s spperh was plainly q sur prise to most Of the 400 or go present. They evidently had hoped and expect Il that SecTptary Taft would speak Tor himself rather than for Roosevelt At the clOsc of his address some one .aIled for -three cheers for the next president" The response. while COT Iial. did nos apTpar to be quite spon- aneOus and hearty.
 Rsshsp Andrews at Point of Death
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