Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-02-21
MERGER
WAS CLEARLY
ILLEGAL
FAULT FOUND WITH
COURSE OF PRESIDENT
Senate Committee Declares
Roosevelt Had No Authority
to Permit Absorption Of Ten
neSSee Company


]
Washington, u. c. Fob - Ry a
vote of three to two tho subcommittee
| Of the committee ON judiciary which
has been Investigating the merEor ol
| the Tennessee Coal and Iron com-
pany and the United States steel cor
poration today decided to report To
| the fun committee that tire president
| was not authorized to permit the abb
| sorptlon The committee found also
that President Roosevelt was equally
unauthorized to direct the attorney
general not TO interfere With the mcr-
ger and not 70 enforce tho federal
| statutes against 1t II was decided
also that as both companies were en-
gagged IN Interstate commerce the alb
sorption was in violation or the Sher-
man antitrust law II was found
that the effect ana purpose OF the abs
sorption were to monOpOlixe the iron
ore supply OF the country aud gen
Crallv to eliminate the Tennessee
company as a competitor Of the Unit
ted States steel corporation.
The fact that such a report was to
be made created CONSERVATION IN the
senate. 1t was realized that Il tue
full committee subscrlhcs to the
findings Of the subcommittee the els
feet would be TO administer the se-
vercst of rchukcs to President Rouse.
welt and practically to dircct the at
tornrN general to bring proceedings
against the steel corporation under
the sherman law. Leaders IA the
senate make no secret of the fact that
they are unwilling to go THAT far bn-
der these circumstance the iull ruin-
mittee when IT meets on Monday prah
ably viii decide TO consider very care
fully the possible effect OF tl~ report
before deciding to adopt It. Thc re-
port acted upon was drafted by Sens
ator CnlbersOn. author of the rosplu-
ton providing for the INJURY
The inquiry was conducted hN q
subcommittee OF five Mcssrs Clarke
of Wyomlng. Diilinghauh kitirense.
Cnlbcrson and OYwman The ttst
three of thcsc are republicans am tue
last two democrats. senator kittrcdge
Joined with two democrats IN making
the majority report no minority re-
port was made by Senators Clarke
ana Dillingham; The subcommittee
decided not Go make the text of its
report public. although the interest Ia
II was go great that the findings bee
camc known to practically the entire
senate during the afternoon
In addition to the findings Of law
the committee reported on many
questions connected with the merger
days Of November, 1907, the United
States steel corporation purchased all
the stock of the Tennessee coal and
Iron company except S220, 1850. the
amount Of the stock acquired being
30.375.S25
II is shown that only S632,656 In
cash was paid for the stock and that
bonds of the steel corporation Wer"
issued to the amount Of $34,6Si,91Sf
ft. ~ lttf
par value of the Tennessee company
stock purchased
The report was on the presidents
message declaring the absorption was
necessary according TO the rcproscn4
tations to him by Judge Gary ana II.
C. Frick on behalf of the Steel cor
poraton as certain business firm
Of real Importance IN New YORK clr-
cles would undoubtodly fail unless the
deal could be made. From testimony
OF "A number Of witnesses tbc report
declares that the firm of Moore ana
SchleN stock brokers of New York
was the one referred 10 by Messrs
Gary and Frick This is the concern
which managed the affairs of a party
OF financiors who bought majority
of the stock Of the Tennessee conn
pany and held IT until November
1907
II is asserted hN the report lndi
banks in New York, some of them
known as Morgan banks pressed the
loans on Tennessee coal company
stock vigorously and that those de-
mands were mot successfully until
fearful of the result ON account Oi thp
business uncasincss Jon regard to the
Tennessee stock. terms were made
with the steel corporation It IS ns-
serted tho syndicate did not wish 10
sell its stock hut was forced to do $50.
Sarcastic references were mado hN
tho committee report 10 thc statement
of Judge Gary ANA Mr. Frirk iu thcit
interview with tho presidents that they
did not want TO buy the Tennessee
concern From the testimony u is ass
serted THAT tho Tennessee property h.
worth prohably several hundred mil
lion dollars and viii give tho United
states Stccl corporation ultimate con-
troll OF Uho iron aud steel supply of
the country
II IS attcsted by tho committee that
whatever may bc the supposed cmnrg
cnc, no discretion is lodged in the
president AS tu tho enforcement of thr
law n was found in tho opluipu af
n majority of thc subcpmmittfc thut
the prD- identa communication q" 50
torney General Bonapurte was Zoo cf
feet % direction not Go interfere With
the member II was pointed ont that
under tho federal consultation the
president is ihs ono official Whl "a
expressly onioincd Go "scc that the
laws hc faithfully executed.