The San Francisco call., 1909-01-07
President Rebukes Senate

President Roosevelt today informed
the senate in plain terms that he had
approved the absorption Of the Ten
nessee coal and iron company by the
United States steel corporation and had
instructed Attorney General Bonaparte
not TO respond to the senate inquiry as
to the reason for his failure TO prose-
cute the steel company.
The president declares he does not
conceive il 'to be within the authority
OF the senate to give directions of this
character TO the head Of an executive
department"
The message is in response TO a
resolution introduced by Senator Gull
berson calling on the attorney general
to state whether he has brought an
action against the steel company be-
cause of its acquisition of the Ten
nessee concern.
While the resolution was not di-
rected to President Roosevelt his at
tention was called to it by Attorney
General Bonaparte.
Commenting on the attorney generals
letter the president says:
As 10 the transaction In question I was per-
sonally eognizant and responsible for its every
detail For the Information Of the senate / tran
NIT copy OF a letter sent by TO the attor-
MY Dear Attorner General Julgr L. H.
Gary and H. c. Frick on behalf of the steel
poIdtloDs nave just called They
state that there is a certain business firm tthe
name OF which / have not been told but which
Is OF real Importance in New York business cir
cIes}, which viii undoubtedly fail this week if
help Is not given. Among Its assets are ma
1ority Of the securities Of the Tennessee coal
company Application has been urgently made
TO the steel corporation TO purchase this stock
as the only means Of avoiding failure. Judge
Gary and Mr.. Frick Informed me that a mere
chase the stock that under ordinary circum-
stances they would not consider purchasing the
stock as but little benefit viii 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 the ground that
they are striving TO secure a monopoly of the
business and prevent competition-not that this
would represent what could honestly be said
but what might recklessly and untruthfully be
They informed me that as a matter of fact the
policy OF the company hss 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 OBJ
Ject Of preventing the acquisitions and as a
matter Of fact their proportion of steel proper
ties has slightly decreased. SO that ii is below
this 80 per cent and the acquisition of the
property in question viii not raise 1t above 90
per cent. But they feel it is immensely to their
Interest. as 10 the interest OF every responsible
businessman. TO try 10 prevent a panic and gen
eIsl industrial smashup at this time and that
iney are willing 10 go into this transaction.
which they would not otherwise go into because
II seems the opinion of those best fitted 10 ex-
press judgment in New York that IL would be
an important factor in preventing break that
might be ruinous and that this has been urged
upon them by the commission OF the most re-
sponsible bankers in New York who are now
thus engaged IN endeavoring TO save the situa-
ton. But they asserted that they did not wish
10 do this II ! stated that 1t ought not TO be
done
Il answered that while OF course I could not
advise them to take the action proposed 1 felt il
no public duty Of mine 10 interpose any objec-
tion. Sincerely yours.
Hon. Charles !. Bonaparte. Attorney General. -
After sending this letter / was advised orally
by the attorney general that. in his opinion. no
sufficient ground existed for legal proceedings
against the steel corporation. and that the situa
tion had been no way changed by its acquisition
Of the Tennessee coal and iron company
/ have thus given to the senate all the in
formation IN the possession OF the executive de-
partment which appears 10 me 10 be material or
relevent the subject of the resolution.
feel bound. however, TO add that ] have in
strueted The attorney general not TO respond TO
that potrion Of the resolution which calls for
statement OF his reasons for nonaction. l have
done so because / do not conceive Ii to be within
the authority Of the senate to give directions of
this character to the head OF an executive de-
partment or to demand from him reasons for his
action Heads Of the executive departments are
subject to the constitution and TO the laws
passed by the congress in pursuance of the con
stitution and TO the directions OF the president
of the United States, but no other direction
whatever. THEODORE ROOSEVELT.
The White House, January 9, 1909.