The Butler weekly times. (Butler, Mo.) 1881-1918, 1909-02-04
Mr.. Roosevelt and the Steel
Trust.

SHees Juurnhi pflnbeu bne IOllOWlnk.
Boston-Adam, In the Boston News
Bureau, says:
/ One OF the most amusing things
that has taken place In the past week
has been President Roosevelt's an
swer to the senate on the matter OF
the benevolent assimilation Of the
Tennessee Coal and Iron Company
by the United States Steel corpora
tion. Mr. Roosevelt states that he
was responsible for every detail OF
the transaction, and is cognizsnt OF
all the facts. He told the senate (us-
Ing a letter to Attorney. General
Bonapsrse as vehicle) that Messrs.
Gary and Frick had come to him In
the dead OF night, stating that n
calamity would soon take place in
New York, unless the steel corpora.
ton should be permitted by the pres
ident to take over the Tennessee Coal
and Iron company. These gentle
men advised Mr.. Roosevelt that a
business firm In New York would 90
TO the wall, unless the Tennessee
Coal and Iron company we're taken
off their shoulders. They did not
tell Mr.. Roosevelt, however, the
name OF the firm, nor the fact that
other institutions OF many times the
magnitude of the stock exchange
house in question, had already gone
to the wall.
Messrs Gary and Frick, according
TO the president, said that the United
States Steel corporation did not
really want the Tennessee Coal and
Iron company, but merely had the
philanthropic interest in the matter.
80 Mr.. Roosevelt, In order, as he
says, to save the situation" latter
the situation had already been say.
ed told Messrs. Gary and Frick that
he would hold his hounds In leash
or something to that effect-and les
the merger go on,
All this Is enough to make a truck.
horse OF the steel corporation laugh.
Everybody knows that the steel cor
poration had suffered the pangs of
hunger for years, because It could
not get control OF the Tennessee Coal
and Iron company and that the con-
troll OF that company was the very
thing which the steel corporation
had long wanted.
All OF the stock which Was carried
In pool at the business firm" In
question was owned by very wealthy
men. Such, for instance, as O. H.
Paynesand Leonard Hanna, OF St.
Louis, who is a multl- millionaire;
and John W. Gates, who thinks
nothing OF betting a Million"
Very likely the president felt fiat
tered that Messrs. Gary and Frick
had gone TO him personally, some.
thing after the manner that child
goes to It's parent for a penny, TO
buy a stick OF candy-snd asked per-
mission to buy control OF the Ten
nessee Goal and Iron company; but
this does not prevent the character
ization OF Mr.. Roosevelt's act in sus.
pending the operation OF the federal
laws In this particular case, as
scandal.
But what would interest Wall
Street more than all OF this, would
be answers to some questions: Did
j. P. Morgan & Co. buy the Tennes-
see Coal and Iron company from the
cuisines. firm" to whom Mr.. Roose.
welt referred? If 80, what price did
Mr.. Morgan & Co. pay the Cuisines
firm" iori. Tennessee Coal and Iron
stock?
What did the steel corporation pay
Morgan & Co. for this Tennessee Coal
and Iron stock? Is 1t q fact that the
steel corporation did not want to
absorb the Tennessee Coal and Iron?
Tennessee Coal and Iron stock OF
$50, 374, 725 par value was transfer
red to the steel corporation, and the
steel corporation gave In return
S35, 100000 par value OF five per
cent bonds which at the time were
worth very nearly the amount Of the
par value. So that the steel cor.
poration actually paid $115 share
for It's Tennessee Coal and Iron com.
pany stock.
Rumor has always said that the
business firm" sold It's stock at a
much lower figure. The real ques.
lions are: "Were there inside prices?"