Los Angeles herald., 1909-01-07
PRESIDENT SAYS
he SANCTIONED
TRUSTS MERGER
SENATE GETS HOT RET0RT
FROM ROOSEVELT
DECLARES soLoNs HAVE NO
RIGHT TO QUESTION HIM
Replies as to Why He Did Not Prose.
cute Combine That Lawmakers
Have Exceeded Their
Authority
w AsHINGTON, Jan. 6.-President

| wv Roosevelt informed the senate in
plain terms today that he had
| approved the absorption of the Ten
nessee Coal and Iron company by the
| United States Steel corporation and
had instructed Attorney General Bona
parte not to respond to the senate in
! qulry as to the reason for his failure
to prosecute the steel company.
The president declares he does not
| conceive it ito be within the author
| 1ty of the senate to give directions of
this character to the head Of an ex-
| ecutlVe department.
The message is in response to a reso-
/ luton introduced by Senator Culber-
son calling on the attorney general to
state whether he had brought an ac-
ton against the steel company because
Of its acquisition of the Tennessee con-
! Germ.
While the resolution was not di-
rected to President Roosevelt, his at
tention was called to it by Attorney
| General BOnaDarte.
| Commenting on the attorney generals
letter, the president says:
| AS to the transaction in question, I
| was personally cognizapt and response
BILE for its every detail. For the
! information of the senate I transmit
a copy Of the letter sent by me to the
attorney general on November 4, 1907,
as follows:
Attorney Generals Letter
My Dear Attorney General-Judge
E. H. Gary and Mr.. H. c.. Frick, on be
half of the Steel corporation, have just
! called upon me. They state that there
| is certain business firm (the name Of
| which have not been told but which
| Is of real Importance in New York
| business clrcles) which will undoubted-
| ly fail this week if help is not given
! II a ntc iOr Of
! the securities of the Tennessee Coal
| company. Application has been ur-
| gently made to the Steel Corporation
to purchase this stock as the only
means of avoiding a failure.
| Judge Gary and Mr.. Frick informed
me that as mere business transaction
! they did not care to purchase the
stock; that under ordinary circum-
stances they would not consider pur-
| chasing the stock as but little 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 Sc
1 cure a monopoly of business and pre-
vent cOmpetitiOn-nOt that this would
represent what could honestly be said,
but what might recklessly and un-
| truthfuIly be said.
! "They informed me that as a matter
of fact the policy Of the company has
| been to decline to acquire more than
| go per cent Of the steel properties, and
! that this purpose has been persevered
in for several years past with the OBJ
| ject of preventing the acquisitions, and
as matter Of fact their proportion Of
steel properties has slightly decreased,
so that it is below this go per cent, and
the acquisition of the property in ques-
! tiOn will not raise it above 60 per cent.
To HPreUenf panic"
"But they feel it is immensely to their
! interest, as to the interest of every
responsible business man, to try
| to prevent a panic and general indus
! trial smaShup at this time, and they
| are willing to go into this transaction
which they would not otherwise go into
! because it seems to be the opinion Of
! those best fitted to express judgment
! in New York that it would be an inn
portant factor in preventing a break
that might be ruinous; and that this
! has been urged upon them by COM
mission of the most responsible bank
! ers in New York, who are now thus
| engaged in endeavoring to save the sit
uatiOn.
But they asserted that they did not
| wish to do this if I state that it ought
not to be done. I answered that while
| of course, L could not advise them to
! take the action proposed. 1 felt it no
public duty of mine to interpoSe any OBJ
| lection. Sincerely yours,
THEODORE ROOSEVELT.
"Hon. Charles J. Bonaparte, Attorney
! General
after sending this letter was ad-
vised by the attorney general that no
! legal grounds existed for opposition and
! that the situation had been in no way
changed by it's acquisition Of the Ten
nessee Coal and Iron company.
Questions Their Authority
'I have thus given to the senate all
the information in the possession Of
| the executive department which ap-
pears to me to be material or relevant
on the subject of the resolution.
81 feel bound, however, to add that
[ have instructed the attorney general
not to respond to that portion of the
| resolution which calls for a statement
of his reasons for non-action.
81 have done so because do not con-
! ceive it 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 rea-
sons for his action.
"Heads of the executive department
are subject to the constitution and to
the laws passed by congress in pursu-
ance of the constitution and to the di-
rections of the president Of the United
States, but no other direction what
ever.
THEODORE ROOSEVELT
''The White House, January 6, 1909"
----e~-S- -
James TreadWeII BANKRUPT