The Topeka state journal., 1911-08-05


to stop a panic it is necessary to re-
store confidence and at the hlO.Lie.s -tSe
the sO-called Morgan interests
the only interests which reIalneu.
full hold on the confidence OF ~
people Of New York, not ohiy -
business people, but the immense IIlslS IS7
of men and women VINO OWheu 81 81 -.
investments or had small saNIneSn ~,
the bank and trust companies NJ.
NToroau and his associates were OF
course fighting hard to prevent tilS
loss of confidence and the panic US uls-
trust from Increasing to such degree
as to bring any other big flnanciaI L,i ~
stitutions down, for TINS "oulu P-.1
ably have been followed Dy sehSi~'
and probably worldwide crash.
The Knickerbocker Trust company
had already failed and runs hao Deeh
begun or were threatened as AS1Ssi $3.50 -
two other big trust companies. Inese ls
companies were now on the sst Us 1,f
line and II was to the interest," u
everybody to strengthen them, IN OF
der that the situation might be saVeo'
It was a matter of general 9F, knoN 49, ,sslI
and belief that they or the lnolVlu es1l9
prominent in them held the Sc ~ 10
~ tLa Tennessee Coal and Iron com
panv which securities had no market
value and were useless as source ol
strength in the emergency
Quick Action Necessary.
The steel CORPORATION securities on the
contrary we're marketable tner sreaSS
value being known ara aulliieS7u ..,,,.,,,sd Cd
over the world as the event SnoWeo i
Tho Dr0DOsal of MessrS. FLICK ana N1dt
was that the steel corporation sIlo lI1 ui5
at once acquire the tennessee LA. Coell g. 80 =
Iron company and thereby suoSliI @
ano0ue the assets Of the threatened III
stt+,,tions which by the way they ala
nor name to me, securities OF gree.
and immediate value f~r seeuf1tles
which at the moment were Oh no EdluS. -
II wag necessary for me TO declne oli
the instant before the slock eN. ~ -, S-lEt-
or.ened Tor the situation i'll lew hoIh
,,las such that any hour mlght De VI
tai and failure to act for even an . Hou.
N, ios1t make all subsequent eIioTt " -
Utterly useless. From t1e pest 'lt',' -l
nation 1T my disposal 1 believed lanu
1lsIiat,sl that the addition # tn Ten
neesee Coal and iron company pro
Dertv would only increase the proper
1,o,, Of the steel CJmpauys heluuiSs DS
about per cent, an addition WINCH ~
itself in my judgment tcQilc t45l.r,a,, -,
7 NAV add. not only by the attorney
General btt hv every competent Jaw
Yer with whom I talked worked III III
no ,vav TO change the legal status oI
the .teel corporation. tur' nelIlyts
believed that the action was EN- ss
fered the only chance for arrestins eHS
manic, and that 1t would proDaoly
res+ tf1e panic. as it did.
answered Frick and Gary, as SET
forth IN my published letter to the el-
Tot that I did not deem it my duty
10 interfere. that is to forbid the ac-
zion which more than anything else IN
actual fact saved the situation me
result justified my judgment TIE pane
was stopped, public confidence IN t@hc @
solvency OF the threatened lnslltuticii
being at once restored.
A Benefit to Birmingham.
Incidentally nay merton that when
T was in birmingham last spring, every
man I met without exception VINO was
cor7netent to testify. informed Tlc vol
unfairly that the results OF the actioil
taken had been of the utmost oeneul
to Birmingham. and therefore 70 AZ A.
ALBANIA the industry having pronted TO
an extraordinary degree, not Only .foi'l
the standpoint of the business but from
the standpoint of the community at
large and Of the workers By the cnahSe
N, ownership The results Of the ac-
+ico tootx were beneficial from every
standpoint and the action itself at lne
tire when it was taken was Nltaliy
necessary to the welfare Of the people
of the United States
In my judgment 1 would nave peeh
derelict in my duty, 1 would have
shown myself timid and UNIV orthy
public officer If in that extraordinary
crisis / had not acted as | did act IN
every such crisis the temptation to
indecision. to non-action. is great, for
excuses can always be found for non
action and action means risk and the
certainty of blame to the man who
acts. But If the man is worth his salt
he will do his duty. he viii give the
people the benefit OF tte doubt. and
act in any way which their interests
demand and which is no, affirmatively
prohibited by law. unheeding the like
lihood that he himself, Wien the crisis
is over. and the danger passed will be
assailed for what he has Gone.
Every step I took in the matter was
open as the day SD was known in
detail at the moment to ali the people.
The press contained full accounts of
the visit to me of Mesgrs Frick and
Gary-and heralded widely and with
acclamation the results Ct that visit.