The Birmingham age-herald., 1909-01-07
In Special Message the Presi- dent Tells Why 1ennesse
 Company Was Absorbed
IMPORTANT FACTOR IN
 HEADING OFF A PANIC
After Giving Details Roosevelt De- clares That Congress Is Meddilng and 1t Cannot Question
 Bonaparte's Motives.

Washington, January 6-President Roose- welt today informed the Senate in no un- certain terms that he had given his ap- proval to the absorption of the Tennes- see Coal, Iron and Railroad company by the United States Steel corporation. and that he had instructed Attorney General Bonaparte not to respond to the Senate inquiry as to the reason for his failure to prosecute the steel company.
 The President concludes his message with the statement that he Goes not con- ceive 1t Ito be within the authority of the Senate to give directions of this char acter to the head of an executive depart ment."
 The message to the Senate was in re- sponse to a resolution introduced by Sem ator Cuiberson calling on the attorney general to state whether he had gotten an injunction against the Steel corpora ton on account of its acquisition of the Tennessee company, and if not, the reason for non-acton.
 While the resolution was not directed to President Roosevelt his attention was called to it by Attorney General Bona parte.
 Roosevelt Responsible.
 The President says:
 'As to the transaction in question I was personally cognizant of and responsible for its every detail. For the informa- < stion of the Senate transmit copy Of a letter sent by me to the attorney general on November 1, 1907, as follows:
 'The White House, Washington, Mo- venber 4, 1907.
 al T1adt E H. Gary and Mir. H. c. Prick, on be- half 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 tine securities of the Tennessee Coal, Iron and Rail- road company. Applications has been urgently made to the Steel corporation to purchase this stock, as the only means of avoiding failure.
 Judge Gary and MT. Prick informed me that as a mere business transaction they do not care to purchase the stock; that under ordinary circumsta tances they would not consider purchasing the stock, because but little benefit will come to the Steel corporation iron. the purchase; that they are aware that the purchase will be used as a handle for attack upon them, on the ground that they are striv- ing to secure a monopoly of the business and prevent competition-not that this vouId represent what could honestly be eaid. but what might recklessly and un- truthfully be said.
 Policy of Company.
 "They inform me that as matter of fact the policy of the company has been fo ha no 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 as matter of fact, their proportion of steel properties has slightly decreased, so that it is below this 60 per cent, and the acquisition of the property in question will not raise 1t above 60 per cent.
 "But they feel that it is immensely No their interests, as to the interest of every responsible business man, to try to prevent panic and general indus trial smash-up at this time, and that they are willing to go into this trans action which they would not otherwise go into because it seems the opinion of those best fitted to express judg- ment in New York, that it will be an important factor in preventing break that might be ruinous, and that this has been urged upon them by the com bination of the most responsible bank CTS in New York, who are now thus enga ged in endeavoring to save the sit uation But they asserted they did not wish to do this If I stated that it ought not to be done. I answered that while. of course, I could not advise them to take the action proposed, felt N no public duty of mine to interpose any objection. Sincerely yours
 THEODORE ROOSEVELT. "Hon. Charles J. Bonaparte, Attorney
 General"
 Opinion of Bonaparte.
 "After sending this letter. I was ad- vised orally by the attorney general that in his opinion, no sufficient ground existed for legal proceedings against the Steel corporation, and that the sit uation had been in no way changed by It's acquisition of the Tennessee Coal, Iron and Railroad company.
 q have thus given to the Senate all the information in the possession of tn e executive department which appears to me to be material or relevant on the subject of the resolution. I feel bound, however, to add that have instructed the attorney general not to respond to that portion of the resolution which calls for statement of his reasons for non-action. I have done so because I do not conceive it to be within the au- thortty of the Senate to give directions of this charac he head of an ex- ecutive depar nat 7smand from him reasons Tor Af 3et2at Heads of the executiv aep. tmsa are subject to the const aiaF. and the laws passed by taa ca sress n pursuance of the cons iaa and to the direc- tions of u Presided if the United ytates, but le au oln Erection what ,ver r8ECghGB .OOSEvELT. The Whit aouss. 1aaq ary 6. 1S0s.''