Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-08-05

Mr. Roosevelt further said that he had
learned that the action was OF great bene-
fit to the people OF the Birmingham DIS
trict.
Il should have proved an unworthy
public officer If I had not done as
did" he said
tinued, in that extraordinary crisis 1
should have been q mere title. In
every such crisis the temptation to
indecision, to non-action, always exists
There is always excuse Tor non action
II a man is worth his salt he will
give people in trouble the beneft of
the doubt and act as the situation de-
mands If the law Is not violated.
Every step l took was as open as
the day"
Chairman Stanley asked the former
President for more details as to the con-
ference at the White House and about
the trust companies in trouble in New
York at the time.
Securities Without Market.
IT think they mentioned only one
trust company. I had been previously
informed that there were two such
companies and assets of a certain big
stock brokerage company was threat
ened
this company would fail IL the Tennessee
transaction was not completed. These
securities had no market at the moment
they said, and they stated they were
willing to purchase that property for the
steel corporations: that the steel corpora
ton did not wish to do 1t for the sake
of transaction itself. because 1t had
been their policy to keep their proper
ton of the steel business at 90 per cent
or less. AS matter of fact, their con-
troll was less. They said they were
willing and anxious to take over the
property because they felt it was the
only way to save the situation, that II
would put the power Of the steel corpora
ton behind the companies on the firing
line. and in a position to prevent dis
aster,"
You spoke of their mentioning trust
companies" Mr.. Stanley asked. Did
they mention any,
II think they mentioned none" MIR.
Roosevelt replied. and l did not ask
them for the names
Not Wall Street Expert.
'Did Mr.. Gary or Mr. Frick advise you
that the stock of the Tennessee Coal and
Iron was preferred by them more than
any other industrial stock before this
panic?' Chairman Stanley asked.
They never spoke of any such thing"
Mr.. Roosevelt replied.
Did they tell you of their efforts in
New York, through this transaction, to
help out certain stock broker?'
"Oh, no.
Did they describe the conditions in re-
lation TO this stock in Wall street, how
the Tennessee had been kited about like
a foot bal?''
Mr.. Stanley the former President ex-
claimed emphatically. you must apply to
some one other than myself if you wish
an expert opinion on Wall street..
Mr. Roosevelt laughed heartily at the
conclusion of this answer, leaning for
ward over the table in a characteristic
way.
Didn't they advise YOU that the week
before they had offered to make a loan
TO a certain stock jobber who was in
trouble on these Tennessee securities?'
They never mentioned such a thing"
Mr.. Roosevelt replied.
Held in Strong Boxes.
Did they advise you that nine-tenths Of
this Tennessee stock was locked up in
the strong boxes of multi-millionaires on
account of its value, and that the stocks
value had purposely been destroyed in
Wall street by pegging, and that only 20
per cent of this stock was involved in the
loans that were in trOuble?
Nobody talked to me on those lines
you suggest. at all" said Mr.. Roosevelt.
81 ought to say" Mr.. Roosevelt inter-
rupted. as the chairman was about to ask
another question that New York banker
after banker had informed me that Ten
nessee Coal and Iron stocks were value
less as securities. Mr.. Gary and MI
Prick earnestly desired that the threat
ened institution should have the Tennes-
see Coal and Iron stock substituted in or
der to save serious crash They said
they knew of no way by which the panic
could be stopped except by this transfer"
Have you seen the report of Herbert
Knox Smith of the bureau of corpora
tions on the United States Steel Corpora
ton Mr.. Stanley continued, setting
h4 finy n
about S7oo,OOo0o0?"
NO"
Mr.. Stanley then made long argument
regarding the actual values of the steel
corpora ton, asking Mr.. Roosevelt's opin-
ion thereon.
Il do not want to answer hypothetical
questions based on Mr.. Smiths or any
ones conclusions Mr.. Roosevelt de-
clared.
No More Serious Trouble.
1T was a matter of common knowledge
that the United States Steel Corporation
possessed securities of enormous value
and that Tennessee Coal and Iron stock
did not, and it seemed to my mind that
what we did proved of enormous i'm
portance and when the steel corpora
tons power was put into that situation
the people placed confidence in threaten
ed institutions.
Were there any other panics at that
time?"
Yes panic after panic. and each panic
was followed by more efforts to stop the
crash
After Mr.. Morgan and the United
States Steel Corporation took this panic
into their hands and stopped the threat
ened crash Was there any return of the
trouble?"
None as serious, though we had to
watch the situation closely for several
DAYS
Did Mr.. Frick or Mr. Gary tell you
that no bank I'm New York or no stock
broker ever had told them the absorption
of the Tennessee Coal and Iron by the
United States Steel was necessary for
its salvation?"
II object to that" said Mr. Lindabury,
counsel for the steel corporation.
"Overruled,' said Mr. Stanley.
II never heard anything about such a
Didn't Want Feelings Hurt.
did they tell you that there was no
trouble except with a certain stock bro
kerage firm, who had been selling
Tennessee Coal and Iron in the market in
a way that we call out west by an ugly
name?"
"Oh, Mr.. Stanley. don't hurt my feel
ings," Mr.. Roosevelt replied with a
chuckle.
did they advise you that a certain
wine agent had been kiting this Ten