The Morning examiner. [volume] (Ogden, Utah) 1904-1910, 1909-02-21
ROOSEVELT WAS NOT AUTHORIZED
TO PERMIT TENNESSEE MERGER
Investigating Subcommittee Submits FdgsPesden Was Equally Unauthor
lied to Direct Attorney Not to Interfere and Not Enforce Federal
Statutes Against l=Rport Created CONSERVATION Senate-f Full
Committee Subscrb to Findings, Effect Will Be Severe Rsbuke
to Chief Executive" startling Figures Given and Sarcastic
References Made Regarding Gary and Frick.

Washington, Feb. 20.-By a vote OF
three 10 two the subcommittee OF the
committee on judiciary which has
been investigating the merger Of the
Tennessee Coal and Iron company
and the United States Steel corpora
ton today decided to report to the
full committee that the president was
not authorized TO permit the absorp
ton.
The committee found also that Pres.
idcnt Roosevelt was equally unautbor-
ized to direct the attorney general
not to interfere with the merger and
not 10 enforce the federal statutes
against It, Ii was decided also that
as both companies were engaged In
interstate commerce, the absorption
was In violation Of the Sherman anti
trust law. Ii was found that the cf-
feet and purpose of the absorption
were TO monopolize the Iron ore sup
ply Of the country and generally TO
eliminate the Tennessee company. as
competitor of the United States Steel
corporation
The fact that such report was TO be
made created CONSERVATION in the sea
ate. 1t was realized that If the full
committee subScribes to the findings
of the subcommittee, the effect would
be to administer the severest OF re
Dukes to President Roosevelt and
practically to direct the attorney
general 10 bring proceedings against
the steel corporation Under the Shcr-
man law, Leaders in the senate
make no secret of the fact that they
are unwilling 10 go that far Under
these circumstances the full commit
tee. when il meets on Monday. prob
ably will decide to consider very
carefully the possible effect OF the re-
port before deciding to adopt it, Tho
report acted upon was drafted by SEN
ator Culberson. author OF the rcsolu-
tion providing for the inquiry.
The inquiry WAS conducted by
subcommittee Of five, MeSsrs Clarke
OF Wyoming, Dillingham;, Kittredgc,
Culberson and Oyerman The first
three of these are Republicans and the
last two democrats Senator Kilt
Tedge Joined With the two democrats
In making the majority report No
minority report was made by Senators
Clarke and Dillingham;. The sub
committee decided not 10 make the
text OF It's report public. although the
interest In 1t was 30 great that the
findings became known to practically
the entire senate during the after.
noon.
In addition to the findings of law.
the committee reported on many ques-
tions OF fact connected with the mer.
ger. II was found that during the
panic-of November. 1907, the United
States Steel corporation, purchased
all the stock of the Tennessee Coal
md Iron company except S22O,16o.
the amount of the stock acquired be.
Ing s30.375,S25. 1t is shown that only
$632,656 In cash was paid for the
stock and that bonds OF the steel cor
poratlon were issued to the amount
OF $34-0S4.97S. or nearly Ave million
In excess OF the par value of the Ten
nessee company stock purchased.
The report quotes from the presi-
dents message declaring the absorp.
tion was necessary according to the
representations to him by Judge
Gary and II. c. Frick, on behalf of the
steel corporation. as a certain busi.
ness firm OF real importance In New
York would undoubtedly fall unless
the deal could be made, From testI.
mony the representatives declared
a ~
stock brokers OF New York. was the
one referred TO by Mr.. Frick This
is the concern which managed the
affairs OF a party OF flnanciers who
bought q majority OF the stock of the
Tennessee company and held 1t until
November, 1907
II Is asserted by the report that
banks In New York. some of them
known as Morgan banks, pressed the
loans on Tennessee Coal company
stock. vigorously and that these de.
mandS were met successfully. until.
fearful OF the result on account of
The business uneaSiness In regard To
The Tennessee stock, terms were
made with the steel corporation. II Is
'asserted the syndicate did not wish
10 sell its stock but was forced to do
so.
Sarcastic references were made by
the report TO the statement OF Judge
NarF and Mr.. Frick In their interview
Win The president. that they they did
not want 10 buy the Tennessee con-
cfh. From the testimony II is as.
serted that the ennessee 'properfy is
worth probably several hundred mil.
non collars and would give the steel
,olporation ultimate control of the
uon ofce supply OF the country and
'"e iron and steel trade of the South.
is asserted by the committee
,nat whatever ma be the supposed
emergency no discretion is lodged I'm
'1e president as TO the enforcement
OF the law.
IL was pointed out that. according