The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-08-06


Colonel Roosevelt's attention was
then called to the report of Herbert
Knox Smith. commissioner OF the bu-
reau of corporations, in which It was
stated that at the time the report was
made the steel Corporations actual
value did not exceed s7oo, 900, 900. and
that another bond issue would absorb
nearly all of it's property.
Did either Mr.. Frick or Judge Gary
explain to you the actual tangible
value behind the new bond jssue?" In
CURED the chairman.
To this question Counsel L!ndabury
objected. too, but Colonel Roosevelt
paid no attention to 1t.
'of course. they did not" said the
colonel In answ,r 10 the question.
NO such matter was ever mentioned
me to answer Hypothetical questions
about values. 1t was widely known
that the Steel Corporations securities
represented immense values. and that
the Tennessee Companys securities
had no value that could be turned
into the sort OF value demanded 1t
was for the reason that these value
less securities were exchanged for Sc
curities of immense value that conf
dence returned"
Colonel Roosevelt was reminded
that in one of the critical stages of
the panic the government had come
to the relief of the banks with more
than s25.000.co0 and that soon af-
terward he had written a public letter.
declaring that this had relieved the
situation. so that the panic was over.
Did that actually stop or relieve
the panic| was asked.
One Panic After Another.
Not In the sense in which you have
put the question:" answered the col
onel. for during that period there
was one panic after another. We met
them as they came until the people
| got back their heads. There We're less
| Serious "reminiscences afterward. but
! we had to keep close watch all the
time
; Did Judge Gary and Mr.. Frick tell
YOU" inquired MI. Stanley that a
/ stock gambler. as we COLL them down
! in my country. had to be saved or
I everything would go to smash here7"
| You don't hurt my feelings by us
. ing that language" cheerily said Col
. onel Roosevelt. when Chairman Stan
, ley started to say that he meant no
| offense.
] Did they tell you that a stock
| gambler and a wine agent named
; Eessler were in trouble, and that L. c..
Hanna. John a. Topping and others
were trying to save them. but that
both Schlcy and Kessler were liable
I to go under?" questioned MIR. Stanley.
no such thing as that was MEN
toned to me by anybody" replied the
Colonel Until this moment had
never heard the name of Kessler, al
| though 1 had heard the name of
Schley."
4Did Frick and Gary tell you they
wanted to buy the steel plants. the
mills OF the Tennessee company?"
They simply said they were buying
the Tennessee Coal and Iron Company.
7 don't think they said anything about
| ores or ore lands. / don't think /
| formulated my impression at that
time around the idea of their buying
ore lands"
II am looking at the absorption OF
the entire steel industry by one con-
| Germ" Chairman Stanley went on pre-
limnary to another question ~ am
inclined to believe that no calamity,
not even a panic in Wall Street, could
be as far reaching in It's effects upon
the American people as this. Now, IL
you had been advised at that time of
the ore conditions--if you had been
told by Commissioners Smith. OF the
bureau Of corporations, that the Steel
Corporation controlled seventyfve per
cent. of the Lake Superior region and
was about to grab the great fields IN
the Birmingham district. would you
| have sanctioned the transactions"
Not Advised of Condition.
II was advised of no such condition
| as YOU represent" said Colonel Roose-
welt. Commissioner Smith had re-
ported to me no such thing. although
he may have said something about 1t
informally.
But l was not looking at the sub
| tect In any such light My sole pur-
Nt-a1 tn he a,.I
confidence The business community
had gone wild. and It had to be
brought NocS - its scIses. / was
dealing then with a panic and not
with steel conditions. II had been