The Fulton County news. [volume] (McConnellsburg, Pa.) 1899-current, 1909-01-14
UNITED STATES SENATE ~
DEF|E0 BY PRESIDENT
forbids Nj. Bonapate to Reply to
Their Resolution.
He APPROVED THE STEEL MERGER.
In Special Message the President Ex-
plains Why lie Intimated to the Steel
Corporation That Their Absorption
of the Tennessee Company Would
Not Lead to a Prosecution.


President Roosevelt informed the
Senate In no uncertain terms that he
had given his approval to the alb
sorption of the Tennessee Coal and
Iron Company by the United States
steel Corporation and that he had
instructed Attorney General Bona.
parte not to respond to the Senate
inquiry as to the reason for his fail
ure TO prosecute the steel company
rne President concludes his message
with the statement that he does not
conceive 1t ito be within the au-
thority of the Senate to give direc-
tions OF this character to the head
OF an executive department"
commenting upon the Attorney
denerars letter, the President says:
Assumes All Responsibility.
AS to the transaction in question,
was personally cognizant of and
responsible for It's every detail. For
the information OF the Senate / trans
NIT copy of q letter sent by me
to the Attorney General on November
A, 1907, as follows:
The White House,
Washington, November 4, 1907.
My Dear Attorney General:
Judge e. H. Gary and Mr. II. c.
FLICK, on behalf of the Steel Cor
poration, have just called upon me.
They state that there is a certain
business firm (the name of which l
have not been told, but which Is of
real Importance In New York busi-
ness circles) which will undoubtedly
A1 a..
Among its assets are a majority OF
the securities of the Tennessee Coal
Company. Application has been
urgently made to the Steel Corpora
tion to purchase this stock as the
only means of avoiding failure.
Judge Gary and Mr.. Frick informed
me that as a mere business transac-
tion they do not care to purchase
the stock that under ordinary cir
cumstances they would not consider
purchasing the stock, because but lit
tie benefit will come to the Steel
Corporation 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 compe-
tition-not that this would represent
what could honestly be said, but
what might recklessly and untruth-
fully be said. They inform me that,
as a amtter of fact, the policy of
the company has been to decline to
acquire more than so per 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 a matter of fact, their proportion
of steel properties has slightly de-
creased, 80 that 1t Is below this 60
per cent, and the acquisition of the
property in question will not raise
1t above 60 per cent.
To Avert A Panic.
But they feel that it is immense
ly to their interest, as to the interest
of every responsible business man,
to try to prevent panic and general
industrial smashup at this time, and
that they are willing to go into this
transaction, which they would not
otherwise go into, because 1t seems
the opinion of those best fitted to
express Judgment in New York that
1t will be an Independent factor In
preventing a break that might be
upon them by the combination or
the most responsible bankers In New
York, who are now thus engaged
in endeavoring to save the situation.
But they asserted they did not wish
to do this If l stated that 1t ought
not to be done. I answered that
while of course l could not advise
them TO take the action proposed,
felt 1t no public duty of mine to
interpose any objection.
Sincerely yours,
"'(Signed) Theodore Roosevelt.
"'Hon. Charles J. Bcnap Nrte, At
torney General
after sending this letter l rs ad-
vised orally by the Attorney General
that in his opinion no srficient
grounds existed for legal proceedings
against the steel corporation, and
that the situation had been In no
way changed by its acquisition OF
the Tennessee Coal and Iron Com
pany.
None OF Their Business.
81 have thus given to the Senate
all the information in the possession
of the executive departments which
want on the subject Of the resolution.
/ feel bound. however, to add that
have instructed the Attorney Cen
eral not to respond TO that portion
OF the resolution which calls for
a statement OF his reasons for nom
action. have done SO because !
do not conceive II to be within the
authority of the Senate to give d.
rections OF this character to the head
of an executive department, or to
demand from him reasons for his
action. Heads of executive depart
ments are subject to the Constitu-
ton, and to the laws passed by the
Congress IN pursuance of the Con-
stitution. and to the directions OF
the President of the United States,
but to no other direction whatever.
"(Signed) Theodore Roosevelt.
"The White House, January 8, 1903"
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