The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1909-01-07
PRESIDENT ROOSEVELT ADMIN
lsTERS A CALLING DOWN
TO THE UPPER HOUSE.
FURNISHES INFORMATION
Informs Body That He Approved Alb
sorption Of Coal and Iron Concern bv
Steel Corporation and Admonishes Il
Not to 'eutt-ln' Regarding Matters
"Not Within Its Authority"

| Washington, Jan. g. - President
| Roosevelt today informed the senate
In plain terms that he had approved
the absorption of the Tennessee Coal
| & Iron company by the United States
Steel corporation and had instructed
| Attorney General Bonaparte not to re-
spond to the senate inquiry as to the
| reason for his failure to prosecute the
| steel company.
The president declares he does not
conceive 1t Ito be within the authority
of the senate to give directions of this
character to the head of an executive
department. The message Is in re-
sponse to resolution introduced by
Senator Culberson calling on the attor-
ney general to state whether he had
brought an action against the steel
company because of its acquisition of
the Tennessee Coal & Iron company.
While the resolution was not di-
rected to President Roosevelt, his at
tention was called to it by Attorney
General Bonaparte. Commenting upon
the attorney generals letter, the
president says:
Transmits Letter.
AS to the transaction in question.
| was personally cognizant and respon-
sible for its every detail. For the in
formation of the senate | transmit
copy of a letter sent by me to the
attorney general on November 4, 1907,
as follows.
NJ fu J,,ax
f. II. Gary and Mr.. Fl. c. Erick, on
behalf of the steel corporation, 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 business circles) which
will undoubtedly fail this week If
help Is not given. Among its assets
are a majority 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 a failure
Judge Gary and Mr. Frick informed
me that, as a mere business transac-
ton, they do not care to purchase the
stock; that under ordinary circum-
chasing the stock, as but little bene-
fit viii 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 monopoly of the business and
prevent competition-not that this
would represent what could honestly
be said, but what might recklessly
and untruthfully be said
Tho Policy.
They informed me that, as a mat
ter Of fact, the policy of the COM
pany has been to decline to acquire
more than so per cent of the steel
and that this purpose has
been persevered in for several years
past, with the object of preventing the
acquisitions. and, as a matter of fact,
their proportion Of steel properties has
decreased, SO that it is below
this 60 per cent, and the acquisition
Of the property in question win not
raise 1t above 60 per cent. But they
'elt 1t immensely to their interest,
and to the interest of every responsible
business man, to try to prevent a PAN
&c and general industrial smashup at
this time and that they are willing
20 go into this transaction, which
hey would not otherwise go into, be-
cause 1t seems the opinion of those
oest fitted to express judgment in
New York that it would be an i'm
1ortant factor in preventing a break
hat might be ruinous; and that this
las been urged upon them by the
commission Of the most responsible
bankers In New York, who are now
hus engaged in endeavoring to save
he situation. But they asserted that
hey did not wish to do this If stated
hat 1t ought not to be done. l an
Wered that, while OF course l could
lot advise them to take the action
l felt 1t no public duty OF
nine to interpose any objection.
Sincerely yours,
THEODORE ROOSEVELT.
Hon. Charles J. Bonaparte, Attorney
General
No Sufficient Ground,
After sending this letter I was ad-
iScu cidiAy ny the attorney general
hat, in his opinion no sufficient
round existed for legal proceedings
gainst the steel corporation and that
1e situation had been in no way
hanged by it's acquisition of the Ten
essee Coal & Iron company.
Il have thus given to the senate all
he information in the possession of
le executive departments which ap-
ears to me to be material or revelant
n the subject of the resolution.
el bound, however, to add that
ave instructed the attorney general
ot to respond to that portion of the
which calls for statement
his reasons for non-action. I have
one so because l do not conceive il
be within the authority OF the SEN
.e to give directions of this charac-
r to the head of an executive de-