The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1909-01-13
TEDDY DEtlEs SENATE.
ORDERS ATTORNEY GENERAL
NOT TO ANSWER.
President Says He Was Personally
Responsible for Absorption of Tenn.
Coal and Iron Co. by Steel Trust
That Acquisition Was Necessary to
Prevent Panic.

washington, Jan. 6.-President
Roosevelt today informed the senate
In no uncertain terms that he had
given his approval to the absorption
OF the Tennessee Coal and Iron COM
pany by the United States Steel cor
poration and that he had instructed
Attorney General Bonaparte not to
respond to the senate inquiry as to
the reason for his failure to prosecute
the steel company.
The president concludes his message
with the statement that he does not
conceive 1t Ito be within the authori-
ty of the senate to give directions of
this character to the head of an exc
cutive department."
The message to the senate is in re-
sponse to a resolution introduced by
Senator Culberson calling on the at
torney general to state whether he
had brought an action against the
steel company, because OF its acquisi-
ton OF the Tennessee concern, and
If not, the reason for non-action.
While the resolution was not di-
rected to President Roosevelt his at
tention was called to 1t by Attorney
General Bonaparte.
The president says:
GAS to the transaction in question,
was personally cognizant Of and re-
sponsible for its every detail. For the
information of the senate I transmit d
copy Of letter sent by me to the
attorney general on November 4, 1907,
as follows:
""rhe White House.,
Washington, Nov. 4, 1907.
"'My Dear Attorney General:
Judge e. H. Gary and Mr.. H. C.
Frick, on behalf Of the steel corpo-
ration, have just called upon me.
They state that there is a certain bus
mess firm (the name Of which I have
not been told. but which is of real
Importance in New York business cir
cles) which will undoubtedly fail
this week II help is not given. Among
its assets are majority Of the securi-
ties OF the Tennessee Coal company
Application has ben urgently made
to the steel corporation to purchase
this stock as the .aplx. means Of avoid
ing a failure.
Judge Gary and Mr.. Frick in
formed me that as a mere business
transaction they do not care to pur-
chase the stock; that under ordinary
circumstances they would not con-
slider purchasing the stock. because
but little benefit would come to the
steel corporation from the purchase;
that they are aware that the purchase
will be used as a handle for attack
upon them on the ground that they
are striving to secure a monopoly OF
the business and prevent competition
mot that this would represent what
could honestly be said. but whs,
might recklessly and untruthfully be
said.
They inform me that as a matter
Of fact the policy Of the company has
been to decline to acquire more than
60 per cent. Of the steel properties
and that this purpose has been per-
severed in for several years past, with
the object Of preventing these accu-
sations, and as a matter Of fact their
proportion Of steel properties has
slightly decreased, so that it is below
this so per cent. and the acquisition
OF the property in question will not
raise it above go per cent.
"'But they feel that It is i'm
mensely to their interest, as to the in
terest Of every responsible business
man. to try to prevent a panic and
general industrial smash up at this
time. and that they are willing to go
into this transaction, which they
would not otherwise go into. because
ted to express judgment in New York
that 1t will be an important factor in
preventing q break that might be
ruinous; and that this has been urged
upon them by the combination of the
most responsible bankers In New York
who are now thus engaged in endeav-
oring to save the situation. But they
asserted that they did not wish to do
this II stated that 1t ought not to be
done. answered that while Of course
could not advise them to take
the action proposed felt 1t no public
duty of mine to interpose any OBJ
lection.