Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-01-07
CALLOOWNFOR
|NQU|s|T|vE
SENATORS
PLAIN TALK IN MESSAGE
FROM THE PRESIDENT
Attorney General Directed Not
to Reply to Resolution Calling
for Information Concerning|
Steel Companies Merger,
IBy Morning journal Special Leased ulrsi

IBy Morning journal Special Leased wlrel
Washington. Jan. 6. - President
Roosevelt today informed the senate
in plain words that he had approved
the absorption Of the Tennessee Goa
and Irrigation company by the United
States Steel Corporation and had in
structed Attorney General Bonaparte
not to respond to the senate inquiry
as to the reason for his failure to
prosecute the steel company. The
president declares he docs not con
ceive il ITO be within the authority
of the senate to give directions Of this
character to the head OF an executive
department"
The message is in response to q
resolution introduced by senator Cul-
berson calling upon the attorney gem
cral TO state whether he had brought
an action against the steel company
because of its acquisition of the Ten
nessee concern.
While the resolution was not direct
ed to President Roosevelt his attention
was called to 1t by Attorney General
Bonaparte.
Commenting upon the attorney gem
erals letter the president says
AS TO the transaction in question. !
was personally cognizant aud respon-
sible for its every detail For the
information Of the senate transmit
a copy Of q letter sent by me to the
attorney general on November 4, 1907,
as follows:
My Dear Attorney General
Judge Il. H. Gary and Mr. H. c.
Friek on behalf OF the steel corpora
tion, have just called upon me- They
state that there Is certain bus-
ness firm Ohc name Of which | have
not been told but which Is Of real Inn
portance IN New York husin IS cir
cles) which win undoubtedly fan this
week II help Is not given. Among
its assets are majority Of the Sc
curities of the Tennessee coal com
pany Application has been urgently
made to the steel corporation to pur-
chase this stock as the only means Of
avoiding failure. Judge Gary and AIr
Friek informed me that as a mere
business transaction they do not care
to purchase the stock; that under or
dinary circumstances they would not
consider purchasing the stock. as but
little benefit viii come to the steel cor
poratiOn from the purchase, that they
are aware that the purchase viii be
Used as a handle for attack upon
hem on the ground that they are
striving TO secure monopoly Of the
Il : ffNs
lot that this would represent what
.ould honestly be said, but what
night recklessly and untruthfully be
iaid.
They inform me that as a matter
IF fact the policy OF the company has |
been to decline to acquire more than I,
ixty per cent of the steel properties. |
md that this purpose has been perse-
erred for several years past With the |
,bject of preventing these accusa tons /
md as a matter of fact their proper |
ion of steel properties has slightly |
decreased 50 that II Is below this so /
ler cent, and the acquisition OF the |
property in question viii not raise II |
lbove the sixty per cent. But they feel |
{ is immensely to their interest as to |
he interest of every responsible busi-
less man. to try to prevent panit !
ma general Industrial smash up at |
his timo and that they are willing 70 |
20 into this transaction which they |
would not otherwise go into because |
{ seems the opinion of those best |
tilted to express Judgment in New |
York that it would be an important |
actor in preventing break that most |
bankers in New York who /
re now thus engaged in cndeavor-
ne To save the situation. But they as
crted they did not wish To do this |
r stated that it ought not bc /
lone. / answered that while. of course, /
could not advise them to take the /
ction proposed, + felt it no public du- /
Y of mine to intcrposc any objection, /
" Sincerely yours
d" THEODORE ROOSEVELT.
Hon Charles a. Bonapartc, Attor- I
Ioy General
AFTER sending This letter I was ad- /
Used orally by the attorney general /
hat in his opinion no sufficient ground !
xistcd for legal proceedings against I
he steel corporation aud that the ,
ituation had been ia mo- way changed
" its acquisition of the Tennessee
'oal and Iron company
Il have thus gave 90 the senate ail
he information in the possession Of
he executive departments which ap-
ears TO be material or relevant on
he subject OF the resolution. feel
ound 90 add. however. THAI I have
the attorney general not 90
espond to that portion of the resolu-
ion which calls for statement oi
is reasons for non action. have
one 80 because ! Do not conceive 10
f, bee within The authority of the sen-
te To give directions of this character
I, the head of am executive depart
lent. or to demand from him reasons
1r his action Heads oi the executive (
apartments are subject 20 the ronsti-
ation and 10 the laws passed BY the
ongress i'm pursuance of the consti'u-