Evening star., 1909-03-02
Senate Judiciary Committee
on the T. c. |. Deal.
CALLS MERGER ILLEGAL
Steel trust Had No Right to Alb
sorb Fuel Company.
CRITICISM COMES TOO LATE
Report Will Expire With the Close
of the Present Session
of Congress.

Seven members of the Senate committee
on judiciary signed the report declaring
that President Roosevelt without author
ity of law sanctioned the absorption Of
the Tennessee Coal and Iron Company by
the United States Steel Corporation. and
that the merger was in violation of the
Sherman antitrust law. Two of the ma
jority of the committee, however, at
tached certain individual views. which, in
small degree. minimizes the effect oe
the declaration.
Under an agreement reached in the
views submitted have the standing of in
dividual opinions only. Chairman Clark
today reported the disagreement In the
committee, and soon afterward Senator
Culberson presented the views of seven
members of the committee. Those views
were signed by Senators Nelson, Kit
tredge and Foraker republicans. and Cul-
berson, Bacon. Rayner and Overman.
democrats. The additional views were
given by Senators Nelson and Bacon.
Senator Nelson's Views.
In the opinion of Mr.. Nelson the Presi-
dent was not authorized to permit the
absorption which is declared to have
been in violation of law. Mr.. Nelson
thinks. however, that the President may
have been misled or duped by the officials
of the United States Steel Corporation.
Messrs. Frick and Gary, who urged upon
him the necessity of permitting the steel
corporation to buy the Tennessee con-
cern in order to save business institu-
ton of New York city during the pan
icky days Of October and November, 1907.
Mr. Bacon expressed doubt whether the
Senate should pronounce finally upon the
question of whether the President COM
mitted a wrongful act, for the reason that
the Senate is the judge in Impeachment
proceedings. He takes the position that
the merger was Illegal but that the Sen
ate should not take any action to preju-
dice any proceedings that might hereafter
be brought before 1t.
Report Is Futile.
From the report signed and submitted
today it appears that had 1t not been for
the Illness of Senator Bacon and his alb
sence from the committee yesterday
the report declaring the President acted
without authority of law would have been
adopted as the opinion of the committee
In any event. Senators Culberson and Kit
tredge take the position that a majority
of the committee has reported the merger
was illegal and that the Department of
Justice should proceed against the United
Steel Corporation to dissolve it,
The disagreement on the resolution was
placed on the calendar and will expire
with the close of the present session.
Senator Foraker Files Views.
Later Senator Foraker filed his individ-
ual views. declaring that he did not think
1t necessary for the committee to con-
slider whether the transaction was a vio-
lation of the antitrust law. He said
that the reply of the committee should be
confined to the one question as to whether
the President was authorized to permit
the merger, and that this should be an
swered in the negative.
In view of the fact that representatives
of the steel corporation called upon the
President and asked his advice concern
ing the transaction and that the question
also was submitted to Attorney General
Bonaparte. Senator Foraker took the po-
sition that the steel corporation should
not be condemned for its action.