The midland journal. (Rising Sun, Md.) 1885-1947, 1909-01-15
SENATE DEFED BY PRESIDENT
FOrhids Nj. Bonaparfe To- Reply to
Their Resolution
Roosevelt Tells WAY He Approved ths
So 5sswa Steef' M erEer.

WasninStOns -. y. (Special -
President Roosevelt informed the
Senate in no uncertain terms that he
had given his approval to the alb
sorption of the Tennessee Coal and
Iron Company by the United States
Steel Cooperation and that he had
instructed Attorney General Bona
parte not to respond to the Senate
inquiry as to the reason for his fall
ure to prosecute the steel company.
The Presid 49, concludes his message
with the sta ement that he does not
conceive it ito be within the au-
thority of the Senate to give direc-
tions of this character to the head
of an executive department
Commenting upon the Attorney
Generals letter, the President says:
Assumes All Responsibility.
AS to the transaction in question,
| was personally cognizant of and
responsible for its every detail. For
the information of the Senate trans
nit copy of letter sent by me
to the Attorney General on November
4, 1907, as follows:
The White House,
Washington. November A, 1907.
My Dear Attorney General:
Judge E. H. Gary and Mr.. H. G.
Prick, on behalf of the Steel Cor
poration, have just called upon me.
They state that there is a certain
business firm (the name of which /
have not been told but which is of
real importance in New York busi-
ness circles) which will undoubtedly
fail this week If help is not given.
Among its assets are majority or
the securities of the Tennessee Coal
Company. Application has been
urgently made to the Steel Corpora
ton to purchase this stock as the
only means of avoiding a failure.
Judge Gary and Mr.. Prick informed
me that as a mere business transac-
ton they do not care to purchase
the stock: that under ordinary cir
cumstances they would not consider
the stock, because but lit
tie benefit will come to the Steel
Corporation from the purchase; that
they are aware that the purchase
Will be used as handle for attack
upon them on the ground that they
are striving to secure a monopoly
of the business and prevent compe-
that this would represent
what could honestly be said, but
what might recklessly and untruth-
fully be said. They inform me that,
as a amtter 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 persevered in for
several years past, with the object
of preventing these accusations; and
49,. GrA4 0fr
of steel properties has slightly de-
creased. SO that it is below this so
per cent, and the acquisition OF the
in question will not raise
it above so per cent.
To Avert A Panic.
But they feel that it is immense
ly to their interest, as to the INTEREST
81 every responsible business man,
TO try to prevent panic and general
Industrial smashup at this time, ana
that they are willing to go into this
which they would not
otherwise 60 into, because it seems
The opinion of those best fitted to
express Judgment in New York that
It will be an independent factor in
preventing a break that might be-
ruinous. and that this has been urged
upon them by the combination or
The most responsible bankers in New
York, who are now thus engaged
IN endeavoring to save the situation.
But they asserted they did not wish
TO do this If stated that 1t ought
not to be done. / answered thaC
while of course l could not advise
hem to take the action proposed.
felt it no public duty OF mine 10
nterpose any objection.
g Sincerely yours,
!. '(Signcd) Theodore Roosevelt.
Hon. Charles j Bonaparte, At
torney General
after sending this letter was ad-
yised orally by the Attorney General
hat in his opinion no sufficient
existed for legal proceedings
against the steel corporation, and
hat the situation had been In no
way changed by rs acquisition OF
he Tennessee Coal and Iron Conn
,any.
None OF Their Business.
81 have thus given to the Senate
III the information in the possession
If the executive departments which
annears TO me to be material or rele-
amt on the subject of the resolution.
feel bound. however, to add that
have instructed the Attorney Cen
srai not to respond to that portion
IF the resolution which calls for
, statement of his reasons for nom
action. have done so because !
10 not conceive It to be within the
auth GRITTY OF the Senate to give al
.ections of this character to the head
IF an executive department, or to
demand from him reasons for his
action. Heads of executive depart
ments are subject to the Constitu-
ion, and to the laws passed by the
Congress in pursuance OF the Con-
and to the directions OF
the President OF the united states
hut to no other direction whatever.
J. fcienedr Theodore Roosevelt.
.The White House, January s, 1909.
Roy R.tnetI To Death.