The Detroit times., 1909-01-07
ROOSEVELT SAYS IT
IS NOT SENATE'S
BUSINESS
HE TELLS BODY IT HAS NO Az.
THORITY TO GIVE DIRECTIONS
TO eoNAPARTE REGARDING
PROSECUTION.

WASHINGTON, Jan. 7.-President
Roosevelt gave his approval TO the
absorption OF the Tennessee Coal a.
Iron Co. by the United States Steel
CORPORATION and instructed Atty.-Gen
Bonaparte not 10 respond to the senate
inquiry as to the reason for his fail
ure to prosecute the steel company
This fact was contained In a message
submitted TO the senate by the presi'
dent.
He concluded his message with the
statement that he does not conceive II
Ito be within the authority OF the SEN
ate to give directions OF this character
TO the head OF an executive depart
ment."
The message to the senate is in re-
Spouse to a resolution introduced by
Senator Culbertsons calling on the at
torney-general to state whether he
had brought an action against the steel
company. because of it's acquisition OF
the Tennessee concern, and II not, the
reason for non-action. While the reso-
luton was not directed to President
Roosevelt his attention was called TO
IL by Atty Gen. Bonaparte. who, after
quoting the requirements OF the reso-
luton, said: las you are aware, no
such proceedings have been insti'
tuted."
Commenting upon the attorney-gen'
erals letter the president says:
"As to the transaction in question, |
was personally cognizant Of and re-
sponsible for its every detail. For the
information OF the senate l transmit a
copy OF a letter sent by me TO the at
torney-general, Nov. 4. 1907. as fol-
lows:
Judge e. II. Gary and II. C. Frick,
on behalf OF the steel corporation.
have Just called upon me. They state
that a certain business firm will I'M
doubtedly fail this week II help is not
given. Among its assets are a ma
jority OF the securities OF the Ter
ressee Coal company. Application has
been urgently made TO the steel cor
poration TO purchase this stock as the
only means of avoiding failure.
Would Not Purchase.
"Judge Gary and Mr.. Frick In
ludt no
transaction they do not care to pur-
chase the stock; that under ordinary
circumstances they would not consider
purchasing the stock, because but lit
tie benefit will come TO the steel cor
poration from 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 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 said. They inform me
that as a matter OF fact the policy of
the company has been TO decline to
acquire more than 60 per cent of the
steel properties, and that this purpose
has been persevered in for several
years past, with the object OF pre-
venting these accusations, and as a
matter of fact their proportion OF steel
properties has slightly decreased. so
that Ii is below this 90 per cent, and
the acquisition of the property in ques-
ton will not raise IL above 60 per
cent
e But they feel that il is immensely
TO their interest. as to the interest OF
every responsible business man, 10 try
TO prevent panic and general indus
trial smash-up at this time and that
they are willing to go into this tran
saction. which they would not other
wise go into. because IL seems the
opinion Of those best fitted to express
Judgment in New York that Il will be
an important factor In preventing a
break that might be ruinous; and that
this has been urged upon them by the
combination OF the most responsible
bankers in New York. who are now
thus engaged in endeavoring 10 save
the situation. But they assert they did
not wish to do this IL I stated that Il
ought not to be done. answered
that while of course | could not advise
them to take the action proposed felt
ii no public duty Of mine to interpose
any objection.
Rebukes the Senate.
After sending this letter I was ad.
vised orally by the encouragement
that In his opinion no SUFFICIENT ground
existed for legal proceedings against
the steel corporation and that the sit
nation had been in no way changed By
it's acquisition of the Tennessee Coal
& Iron Co. ...
II have thus given 10 the senate all
the information In the possession of
the executive departments which ap-
pears to me TO be material or relevant
on the subject OF the resolution. feel
bound. however, to add that | have in
structed the encouragement not to
respond to that portion Of the resolu-
ton which calls for a statement of his
reasons for non-action
IL 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
department, or to demand from him
reasons for his action Heads OF exc
cutive departments are subject to the
constitution, to the laws passed by con-
gress In pursuance OF the constitution
and to the direction OF the president Of
the United States. but no other direc.
ton whatever"
LOCAL OPTION APPROVED.