The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-08-05
Voluntarily Col. Roosevelt
Appears Before Committee
and Tells of Conference
with Steel Magnates.
SANCTIONED MERGER
TO AVOID CALAMITY
Permitted Steel Trust to Cob
bic Its Rival to Prevent
a "World-wide Financial
Smash" He Said.
(National News Association)


NEW YORK, Aug. 5.-Ex-president
Roosevelt unexpected appeared volun
tarily at the congressional steel trust
investigation today. He was sworn in
on his own request as witness and
made a statement in which he assum
ed entire responsibility for allowing
the United States Steel corporation to
gobble the Tennessee Coal and Iron
company during the panic of 1907. Mr.
Roosevelt said he wanted to avert a
"world-wide financial smash" and sue
ceeded. Col. Roosevelt declared it was
necessary for him to decide on the in
slant before the opening Of the stock
exchange, and failure to act immedi
ately would have rendered any future
action useless. He had Attorney-Gen
eral Bonaparte's advice that in the cir
cumstances there would be no proper
grounds for prosecuting the steel cor
poration, but he wished it distinctly
understood that the responsibility fol
the act was solely his (Roosevelt's.
The ex-President said that he had
not been told by Gary and Frick a,
their conference with him in Washing
ton that it was necessary for the Unit
ed States Steel corporation to Absorb
the Tennessee Coal and Iron Company
to stop the panic.
Reviewed Situation.
Roosevelt reviewed the, critical Il
nancial situation existing at that time
told of the conference with Gary ant
Frick in which they explained that b,
purchasing the Tennessee company Il
woGid ~enabie them to- put the whole
power of the United States Steel cor
poration on the firing line so as to di
vert disaster that would have been ia
tai to all, including themselves. Roose
welt further believed the purchase was
for the general public good because
the panic was stopped. and that it was
a great benefit to the Birmingham dis
trict. The high standing of the Unit
ed States Steel corporation securities
boosted the Tennessee securities into
the same class whereas previousl,
they were an unknown quantity an6
their value small.
Col Roosevelt in volunteering him
self as witness said that he desired
to give what information he possessed
in the matter of the steel trust. The
sudden appearance of the ex-presidenr
caused sensation. It was entirel,
voluntary, though the committee has
long wanted to know about the confer
ence between Judge Gary, Henry C
Frick and Mr.. Roosevelt, during th<
panic of 1907 when big financial con
Germs were quaking in Wall street ant
when Frick and Gary wanted assur
ance that the steel trust would not b<
prosecuted If it gobbled up it's rival
While this conference was on syndi
cate members holding stock Of the
Tennessee Coal and Iron Co., were
waiting at the home of J. P. Morgan
Word over the telephone from Wash
ington came that everything was al
right and the rival company wa.
promptly absorbed.
Roosevelt was Immediately heard to
day. Chairman Stanley asked the Col
onel to tell his story in his own wa,
of what happened at the conference
leading up to the absorption of ths
Tennessee Coal & Iron Co. by tn.
steel corporation.