New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-06
ROOSEVELT SAYS He
CHECKED 1907 PANIC
Tells Committee He Permitted
Absorption of 7. c. and !. on
His Own Initiative.
"THE RESULT JUSTIFIED IT"
Reads Statement, Then Replies
to Questions-C. M. Schwab
Calls ]. P. Morgan Steel
Trusts Godfather. !"

u
that as President OF the United States
he had permitted the Steel Trust To ac-
ouire the Tennessee Coal and Iron Com
pany in the panic days of 1907 rs the
only means Of checking an appalling
and nationwide disaster With char
acteristic emphasis he exclaimed: Il
scted purely on my own initiative. and
the sole responsibility for the act is
mine. The result justified it
The former President told his story of
this famous absorption to the Congress
committee which is investigating the
United States steel Corporation. and
Charles NJ. ,Schwab. president of the
Bethlehem Steel Company. was the only
other witness to appear before il at the
hearing in the aldermen's committee
room in City Hall.
Mr.. Roosevelt said he would have been
dereliCt and cowardly public official if
ne had failed 10 seize what he considered
the only possible opportunity Of prevent
ing a national calamity; and that he act
ed without fear Of consequences. When
- II. G.. Frick and Judge L. II. Gary called
~ the White House 10 ask If he would
oppose the transaction. stating that by it
alone the failure Of two important New
York trust companies could be averted
and the panic checked he said il WAS
10 time to question their motives and
though action meant danger it was
imperative and he acted instantly
The appearance Of the former Presj-
pected. except TO the members Of the
committee, and City Hall was soon
. thronged with people anxious to see and
hear him. But the interest Of the day
was not centred in his story alone. Parts
Of Mr.. schwabs testimony we're sensa-
uonaL
J. p. Morgan as Godfather
AR. Schwab testified that he consid-
cred j. p Morgan "the godfather" of the
steel Trust; that he believed that cor
poration should take no action which
might hurt Mr. Morgan or his interests
without consulting him, regardless Of
whether it vas beneficial to the corpora
tion itself.
Minutes Of the directors Of the United
States Steel Corporation were read.
They showed that some Of its directors
had argued strongly for the highest
possible railroad rates with the highest
possible rebates Tlfey told Of the ap-
pointments Of committees to deal with
hostile legislation" and to confer with
railroad officials in fixing the latter's
rates.
Afr. Roosevelt read his statement on
The Tennessee coal and Iron deal giving
his reasons for permitting il. This
statement appears elsewhere I'm full in
jo-days Tribune. In it he said, cmong
a variety of other things. that Messrs.
Gary and Frick had told him that ordi-
narily the steel Trust would not care
% purchase that company, but was will
Ing 10 do so % check the panic. He
said he believed the transaction had lit
uo material effect on the steel situation,
snd intimatcd that at that time the
Morgan interests were the only ones
holding public confidence.
The Democratic members of the COM
mittee went after Mr. Roosevelt harl
with questions. He took the "grilling'
good humoredly. but absolutely refused
20 answer hypothetical or motive ques
uons
"Grillirg" an Ex President.
congressman Littletou referred 10 one
of Mr. Roosevelts SMILES. i'm which the
latter had likened himself 10 man in
boat with the mainsal jammed and
laboring i'm a squau. Mr.. Roosevelt had
said that the only chance for safety lay
I'm cutting The maiusail. and that that
vas what he had done.
Arc YOU sure. colonel asked Little
ton. that it was the mainsaii you cut
and not the guy rope leading from the
top Of the mast
AIr. Roosevelt assured him ne would
never cut the guy rope.
SIR. Stanley. chairman Of tho commit
tee. took up the examination. After
few questions ne asked if there was any
crisis after the Tennessee Coal and Iron
deal. The witness said there were only
fow minor ones
Were YOU informed 10y Messrs. Frick
and Gary that there was no bank back
of the Tennessee Coal and Iron trouble,
hut that the night was TO save two stock
jobbers. the broker. Schley. and the wine
merchant. Kessler until this moment?
II may have heard Of Schley at the
time. but 10 tell tho truth never heard
the name Of Kessler until this moment.
] cannot recall the name of the banks
IN danger. even If I heard them
Then followed a number of other ques-
tious az TO what he knew about the al
legged immense value Of the Tennessee
Coal and Iron Company properties.
Finally Mr. Roosevelt remarked: You
are asking me 10 go into questions OF
motive. gentlemen. did not search the
motives Of Judge Gary. although l ala
not believe he was acting against MS
own interests. II a ship il sinking III
storm | do not question the motives ol
the man who is ready 10 pull IN the
main sheet and save the boat
Mr. STANLEY tried 10 make the witness
admit that had he known Of the impend-
ing ore monopoly foreshadowed, as he
alleged. by the Tennessee Coal ana Ito"
deal he would not have sanctioned ''e
purchase. even to save the day imam
cially
Refers to German Potash Case
r think. Mr. STANLEY" replied MI