The Washington times., 1911-08-05
ROOSEVELT BEFORE
STEEL COMMITTEE
TO TELL OF MERGER
Former President Says He
Countenanced T. c. |.
Transaction.
Continued from First Page.)

ment taking the position Of Germany
and, by action and interference in favor
OF the peoples interests, exercising q
strtcter control Of big corporations with
monopolistic tendencies"
Evil of Relating.
Il believe" announced Stanley, that
we should Immediately proceed to d.
vorce the United States Steel Corpora
ton from every common carrier IN the
country. The rate rebates, which vio-
late either the spirit or the letter of the
anti-rebate law, must be stopped at
once, and would. by legislation which
I think would be constitutional, prevent
any director in the United States Steel
Corporation from acting as a director
In any railroad company"
so would I. So would L. interrupt
ed Roosevelt, barring his teeth and
pounding the table before him.
''Then," continued Stanley, II would
properly"
/ would go even further. I favor the
Government exercising direct control or
these big business corporations"
Concluding his testimony, Colonel
Roosevelt declared that he believed the
Information given him - F'rick and
Gary was essentially accurate.
1T was unnecessary for me-" he
said, "to form any Judgment as to
whether the steel corporation was
anxious to get the T. c. & 1. company.
business or whether they were anx-
ious only to save the situation.
'Tn all essentials, I believe that
their statement of the situation was
accurate. In SO far as they Influenced
my action, or my Judgment as to the
q nf
the subsequent events exactly bore
out and justified my action"
With this the coloners examina-
tion ended and after an exchange Of
between himself and the
committee he forcd his way through
the crowds. that had jammed the
room after his appearance became
known and left the city hall
Despite the fact that Roosevelt de-
clared his belief that his action was
necessary, committee has proved by
many witnesses that the Tennessee Coal
and Iron was one Of the best steel prop
critics in the world; that II could pro-
duce steel cheaper than the trust, and
that Its acquisition ito save the situa-
ton" gave the trust ownership Of one
Of It's most powerful competitors.
Charles NJ. Schwab, whose testimony
welt to take the stand, resumed when
the colonel finished.
As to Bond Exchange.
Then Chairman Stanley said:
IT was greatly interested in all you
had to say, Colonel Roosevelt. but
would like to ask what representations
Messrs. Frick and Gary made as to the
necessity OF an exchange of the bonds
Of the United States Steel Corporation
for the stock of the Tennessee Coal and
Iron Company, and as to the relative
intrinsic value
Several big bankers" replied Col
onel Roosevelt, desired the acquisition
of the Tennessee Coal and Iron Com
pany TO save a certain trust company
from disaster.
"Messrs. Frick and Gary said in effect
that they were urged 10 acquire the
Tennessee Coal and Iron Company prop
erty because its securities were assets
was threatened with failure, and they
believed 1t would fail If nothing was
done.
THE securities had no market value
at that time. They were willing I,
purchase for the steel corporation,
they said, although the steel corpora
ton did not want 10 do this for sake
Of the transaction itself, because 1t WAS
their policy to keep its holdings at 90
deal went through the corporation
would be open to attack as a monop-
bly,"
What trust companies did they men,
ton as being doubtfulT' asked Stanley.
They did not mention any particular
and I did not press them"
The impression that you gained was