Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-02-23
ROOSEVELT TARGET
FOR BITTER REBUKE
SUBCOMMITTEE SAYS PRESI-
DENT HAD NO AUTHORITY TO
PERMIT ABSORPTION OF TEN
NESSEE COAL AND IRON co.

WASHINGTON, Feb. 20.-By vote Of
three to 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 corporation, yesterday de-
cided to report to the full committee That
the president was not authorized to per-
NIT the absorption.
The committee found also that Presi-
dent Roosevelt was equally unauthorized
to direct the attorney general not to in
terfere with the merger and not TO en-
force the federal statutes against 1t.
It was decided also that, as both COM
panies were engaged in interstate COM
merce, the absorption was in violation of
the Sherman antitrust law and that the
effect and purpose of the absorption was
to monopolize the iron ore supply of the
country and generally to eliminate the
Tennessee company as a competitor of
the United States Steel corporation.
Would Be Bitter Rebuke
The fact that such a report was to be
made created CONSERVATION in the sem
ate. It was realized that if the full COM
mittee subscribes to the findings OF the
subcommittee, the effect would be to ad-
minister the severest of rebukes to Presi-
dent Roosevelt and practically to instruct
the attorney general to bring proceed
ings against the steel corporation under
the Sherman antitrust law.
Leaders in the senate make no secret
of the fact that they are unwilling to
go that far. Under these circumstances,
the full committee, when it meets on
Monday, probably will decide to consider
very carefully the possible effect of the
report before deciding to adopt it. 1t is
conceded that the deliberations of the
committee must extend over many days,
and 1t is likely that action can not be had
at this session. The report acted upon
was drafted by Senator Culberson, author
of the resolution providing for the in
Quiry.
The inquiry was conducted by sub
committee of five, Messrs. Clark, of Wy
oming; Dillingham;. Kittridge, Culberson
and Overman.
The first three of these are Republicans
and the last two Democrats.
No Minority Report
Senator Kittredge Joined with the two
Democrats in making the majority re-
port No minority report will be made by
Senators Clark and Dillingham;, as they
expect that when the whole matter is
gone over by the full committee there
will be a division requiring more than
one report. Whatever report they will
make will be to the senate. The sub
committee decided not to make the text
Of its report public, although the inter-
est in it was so great that the findings
became known to practically the entire
senate during the afternoon.
In addition to the findings of law, the
committee reported on many questions
of fact connected with the merger. 1t
was found that during the panicky days
of November, 1907, the United States Steel
corporation purchased all of the stock Of
the Tennessee. Coal and Iron company
except $500, 100, the amount of stock ac-
quired being $S0,S75,S25.
1t is shown that only S632,655 in cash
was paid for the stock, and that bonds
of the seel corporation were issued to
the amount of 34.6S4.s7s, or nearly five
million in excess of the par value of the
Tennessee company stock purchased.
The report quotes from the presidents
message declaring that the absorption
was necessary, according to the repre-