New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-10-27
President Roosevelt's Letter.

"The President recorded in letter 20
the Attorney General, written in their
presence. their representations. He states
that said Gary and Frick told him that
there was a certain business firm which
would fail If help should not be given,
and that among its assets were ma
jcrity Of the securities OF the Tennessee
company. The firm referred to was I'M
doubtedly Moore & Schley. but IT was
not true that among the assets Of the
firm were a majority Of said securities.
Nor was It true that said Schley had
among his assets a majority or anything
approxima1ng It. The President further
said in his letter:
Judge Gary and Mr.. Frick informed
me that but little benefit will come to
the steel corporation from the purchase.
This statement TO the President was
misleading one. The property was
very valuable. Next 10 the corporate
the Tennessee company had the largest
coal and ore properties in the United
States of any steel concern. A COM
netltOr WAS ItUlpNtu Inc
in it's report TO its stockholders Of this
purchase. said that the terms Of pur-
chase we're satisfactory both as to price
and manner Of payment; that the pur-
chase Of the property promised benefit
to the corporation, and that the Tennes-
see property was very valuable
ITO Stop Panic Not Sole Cause"
"The President was not made fully
acquainted with the state Of affairs in
New York, relevant to the transaction,
as they existed. II he had been fully
advised he would have known that a
desire TO stop the panic was not the sole
moving cause, but that there was also
the desire and purpose TO acquire the
control OF a company that had recently
assumed a position OF potential compe-
tition OF great significance. The Presi-
dent. taken as he was partially into con-
f'dence nd moved by his appreciation
Of the gravity of tie situation and the
necessity for applying what was repre-
scented TO him to be the only known
remedy, stated that he did not feel ii To
bo his duty 70 prevent the transaction.
THE matter than moved rapidly to
contamination. The corporation and its
powerful banker allies did not advance
the money or lend the bonds Of the cor
poration upon the Tennessee stock,
which would have relieved Moore q
Schey, 80 far as the Tennessee colat-
eral was concerned and which would not
have exceeded S6OO0,O00 or S8.OOO.OOO.
They took the position that moth
ing would relieve the situation but the
corporation taking over absolutely the
majority OF the Tennessee stock. This
wac done. and II acquired also, under
tho same agreement, additional stock.
The corporation exchanged for the stock
its own bonds, on basis which paid par
in cash. for stock which Gary a few
days before said was not worth mora
than 80 cents on the dollar.
while az to much OF the situation the
facts are In doubt, 1t Is certain that the
corporation availed itself OF the embar-
rassment Of Moore & Schley at a most
critical period, and the hammering Of
the Tennessee stock and the threaten
in; Of a general financial calamity. TO
acquire the control Of competitor.
The corporation thus greatly strength
ened it's control OF the iron ore supplv OF
the country, its predominating position