The Mathews journal. (Mathews C.H. [Court House]) 1903-1937, 1911-08-17
ROOSEVELT TAXES
ALL THE BLAME
When They Were Deposited AS
Backing of Tennessee Com
pany, Weakened Trust Com
panies Were Saved From
Crash.

whose administration the Tennt SSee
Coal and Iron Company was merged
with the Steel Trust, appeared at the
congressional hearing of the standing
committee in the City Hall.
Mr.. Roosevelt asked that he be
sworn as a witness.
The sudden appearance of the ex-
President. by whose sanction the Steel
Trust is said to have been allowed to
absorb the Tennessee Coal and iron
Company, its sole big rival, caused a
sensation. 1t was entirely voluntary.
though the committee has long want
ed to know about the conference be-
tween Judge Gary, Henry G FLICK
and himself during the panic of 1907,
when big financial concerns were
crashing in Wall Street and when
Trick and Gary wanted assurance that
the Steel Trust would not be prose-
cuted if it gobbled up its rival.
While this conference was on the
syndicate members holding the stock
of the Tennessee Coal and Iron Com
pany were waiting at the home of j.
/. Morgan. When word came over
the telephone from Washington that
everything was all right the TenneS-
see Coal and Iron Company was
promptly q. Sprbed.
ROoSoVelJS greetings were ELUSIVE
and he shook hands with Chairman
Stanley and a number of newspaper
men he has long known
Colonel Roosevelt. in volunteering
himself as a witness, said that he de-
sired to give what information he pos
sesSed in the matter of the Steel Trust.
1t was expected that Charles NJ
Schwab would resume the stand this
morning, but Mr.. Schwab made way
for the distinguished witness, and he
Immediately began testifying of the
business depression Of 1907.
First President to Explain Act.
This was the first time in the his
tory Of the nation that any President
had appeared before an Investigation
body TO defend the acts Of his admin
istratiOn after leaving office. but the
Colonel showed no signs of nervous
ness as he took the stand.
AS he sat down IN the witness chair
he took a bundle OF writing paper from
his pocket. nodded to Chairman Stan
ley. and spread the papers out in front
OF him on the table.
Chairman Stanley asked the colonel
to tell his story in his own way Of
what happened at the confereHc es
leading up 70 the absorption Of the
Tennessee Coal and Iron Company By
the steel corporation.
Reads From Notes
Mr.. Chairman. and gentlemen
said Colonel Roosevelt in a well mod-
ulated tone. II IL is agreeable to you,
/ will read from these notice the mat
ter with which I am not entirely Ia
miliar just now and with which
have refreshed my memory.
In the fall OF 1907" he said. there
WAS serious financial depression in
New York city and elsewhere The
damage that had been done was great
The impending danger was greater
there was = panic and no one could
tell or foresee what might occur.
This impending calamity was stop
ped. Mr.. BOnaparte got in touch with
the people in New York. As you
know. the events moved swiftly. He
took some action on his initiative and
] did also.
Il was notified that a couple Of gen
uemen were waiting 10 see nae in my
office in the White House. Mt. Bona
parte had gone out OF town. but /
Immediately got in touch with one OF
his assistants. Aessrs- Frick and
Gary were in my office waiting for
me"
Colonies Explanatory Statement.
Il wish il distinctly understood that
IN the matter OF the acquisition Of
the Tennessee Coal and Iron Com
pany by the United States Steel Cor
poration l acted purely upon my own
initiative. The responsibility is sole
ly mine.
The word panic means fear, unrea-
sonable fear. You all know il pre-
vailed at that time, and unless some
thing was done at once to stop il, it
is probable that there would have
been a general and worldwide smash
had fallen and two or three other
trust companies followed. other big
ones We're on the dividing lines. They,
or rather the individuals in them
held securities Of the Tennessee Coal
and Iron Company. Now, these Sc
curities were useless in case Of an
emergency, but the value Of the Sc
curities Of the United States Steel Cor
poration were known all over the
world.
p INv-fn l. I
TO me that to save the situation the
United States Steel Corporation would
acquire the Tennessee Coal and Iron
Company. Now, il was necessary for
me to decide that proposition on the
instant, to tide the stock exchange
over. The situation in New York was
such that an hour might be vital and
that failure to act for even one hour
might subsequently render all efforts
at action useless"
Iron Company, the United States Steel
Corporation would simply add about
IL per cent. to its coRtrol Of the
steel and iron product-aR increase
from 6S per cent. 10 60 1-2 per cent.
This addition by itself would have
worked no change in the legal status
of the Steel Corporation"
Action was emphatically necessary
Tor the general good OF tho public.
The only chance OF arresting q panic
Y.
answered Mr.. Frick and Judge Gary
to the effect that did not deem il nav
duty to interfere, or to forbid action
which might help TO save tina sttua
ton.
Results justified my action, tsas
panic was stopped; public confdeacS
was restored.
When / was ia Btrmingh3a. Ala.
lest spring citizens there informed nae
voluntarily that the action taken by
the Steel Corporation in acquiring the
Tennessee Coal and Iron Company had
proved Of great benefit to them, and
therefore to the whole State Of Ala.
bama. Wage carriers reaped the
benefit by the change in owners aaC
business generally increased.
They said that the purchase haC
been beneficial from every standpoint
Considered Action Necessary.
Il consider that the stand l tool
was vitality necessary to the welfar,
of the people OF the United States. Ii
my judgment 1 would have been dere
ict in my duty and / would hav,
shown myself a timid and unworth,
public official had not acted as | did
IF man is worthy his salt. n,
Will meet his duty when crises come
Excuses can always be given for non
action in sue crises. So long as mans
acts are not prepared by law, b,