The Detroit times., 1909-01-15

pleted TO the last degree OF safety sc
that money might be deposited II
banks 10 relieve this strain. Certin
Gates OF Indebtedness and bonds were
hurriedly put out TO provide more
funds.
There was not public spirited citi
gen in the United States who did mol
desire the government to go 10 the
limit OF It's authority 10 put a stop &c
the panic. The big men or Wall-st
did their part, and bankers and finan
ciers in New York. Chicago, Philadel
phia, San Francisco. and every other
financial center were in hourly consul
tation. day and night, TO do what they
could 10 stem the tide
Funds Tied Up In Securities.
Just when things were at their
worst and when 1t seemed that two OF
three more big failures would put an
end to all hope OF restoring norma
conditions II was discovered that q
group OF bankers and financiers rep
resented by the Trust Company Of
America, had tied up a large share Of
their funds In the securities OF the
Tennessee Coal 4 Iron company, rep
resenting a majority interest In thai
concern.
The transaction was an entirely lie
climate one under normal conditions
The trouble was that depositors could
not be paid In steel stock. They had
TO have money. This group OF banks
in no way connected with the United
States steel company, had advanced
money on these securities. and, OF
course, could not get their money
back.
Unless a purchaser could be found
for the Tennessee steel stock these
banks would become inSolvent. There
was Just one concern in the United
States which had the cash on hand "a
make that line OF business. SO that the
transaction would be natural one
That was the United States Steel cor
poration.
The big men OF Wall-st. figured out
that II the big steel trust could be
induced to purchase the securities OF
the little steel trust II would release
enough money TO save these banks
from failure, would protect their de
positors, and would. above all. prevent
a new catastrophe. the dire results oil
which no man cared TO contemplate.
AS matter OF course the steel trust
officials were averse TO the transac
ton. Like most prudent business mer
they believed every cent or available
cash capital should be held as such
There was not then in the country
probably, any big corporation which
would OF its own motion have select
ed that time In which to have put ou'
millions OF its cash resources for the
purpose OF wiping out rival.
Frick Sees President.
The emergency, however. was
great one and the steel magnates I'm
ally agreed that they would come tC
the rescue OF the street and buy tho
Tennessee securities for cash for the
sole purpose Of protecting the banks
provided only there was no danger o.
prosecution for violation OF the fed
eral antitrust law. They were will
ing to risk their money but they woulC
not take chances on imprisonment
and they frankly said 50 10 friendly
bankers who were imploring them e
save the country from an additiona
! financial crash.
II was In this emergency that +
| IL. Gary and n. G. Frick, representing
/ the steel trust, called at the Whit,
/ House on Nov I. 1907. They tolC
President Roosevelt, the facts. whicl
were that they did not want 10 MAKE
/ the purchase either at that or an,
other time. but that there were certain
banks which would surely fail unless
/ the transaction were put through
! They came 10 ask the president TO Sc
cure for them an immediate opinion
as to whether their action would be-
violation OF law. II that opinion wer,
adverse they would drop the matte
at once. and II IL were favorable the,
would open their vault doors and pou
their millions into the street To stol
the panic.
y President Roosevelt acted with hi
Characteristic promptness He callet
up the attorney general and secure
from him, by word of mouth an opir
ion To- the effect that the9. Was no an
parent reason, under the law. why IN
United States Steel corporation coul
not acquire the SECURITIES OF the Ter
nessee Coal a iron company
Gold Watch for Theisen.
Aid. Theisen is wearing n fine col
watch presented 10 him by the EIe,
enth Ward Republican club and
chain and fob presented by otho
friends A chain and fob were als