The Detroit times., 1911-08-05
Roosevelt TAKES
| BLAME FOR I C&I
MERGER
Tells Stanley Investigating Commit
tee He Was Convinced Absorption
Was Necessary To Prevent
Financial Disaster.
incidentally Declares He Is in Favor
Of Strict Federal Supervision Of
All Monopolies.

full responsibility for approving the
ahserptfort of the Tennessee Coal and
lron Co. by the steel trust during the
panic OF 1907, former President hoosc-
veit today told the Stanley steel com
mittee that he had been convu.ced
that the merger was absolutely neces-
harry to save the country from IMAM
Sriai calamity" He declared that
budge Elbert H. Gary and Henry z.
Frick who visited the White House to
secure permission to absorb the Ten:
nessee company told him that II vas
the only way to stop the panic.
The Stanley committee has pro 'cd
by half score OF witnesses that the
totai amount OF T. c. & !. stock In
xoiped In the panic was but trihing
her centage OF the enormous loans
(which were involved.
With ali his old-time vigor and ar
dor. and with characteristic express
sion and gesture Col. Roosevelt re-
Viewed the panic. He declared that
his one object was to prevent dis
aster. For two hours Chairman stan
hey and the members of the commit
tee bombarded him with questions. In
summarizing his testimony at the
close OF the examination he exclaim-
I'D: u
.All Of the information had at that
time, and all of the information which
II have received since leads me te be-
lieve that not only was my action In
the case warranted and proper. but
that + would have been criminal in
my position as the representative OF
the people OF the United States II |
had failed to take that action"
Col. Roosevelt admitted however.
that ct the time of the merger he had
no information as TO the immense
coal and iron holdings OF the Ternes-
see company. which, when turned over
Ito the steel trust. according To the
eyidence before the committee. gave
1t PRACTICAL monopoly of the iron
land steel business.
III yon had known Of these holdings
would you have permitted the Iner,
gery' demanded Stanley. &
With q smile Cox Ropseveit oSad.
led the question. declaring that the
Qucry was clearly hypothetical and
knowledge. He was led into a dis
cussion Of the trust problem in the
abstract and agreed with Chairman
STANLEY IN his antitrust attitude in
b lengthy speech Stanley asked the
colonel's opinion of trust busting
aYou win never achieve your pur
pose by splitting up the big corpora
tions into their component parts and
expecting them to compete" declared
the colonel, II am In favor OF our ma
tional government taking the POSI-
tion OF Germany and by action and
Interference I'm favor Of the peoples
Interests, exercising stricter control
Df big corporations with monopolistic
tendencies."
81 believe" announced Stanley.
r'that we should Immediately proceed
TO divorce the United States Steel
Corporation from every common car
rier In the country. The rate, rebates
which violate either the spirit or the
letter of the anti-rebate law must be
stopped at cnce and I would by legis-
|lation which I think would be consti-
tutional prevent any director In the
United States Steel Corporation from
acting as director In any railroad
company"
$50 would I, SO would l." interrupt.
ed Roosevelt showing his teeth and
pounding The table before him.
Then continued Stanley, "T
would see that the business was con-
Quoted properly"
II agree with your general purpose
thoroughly" acQuiesced Roosevelt.
-And would go even further.
favor the government exercising d.
rect control over these big business
corporations."
In concluding his testimony Col
Roosevelt declared that he believed
the information given him by Frick
and Gary was essentially accurate.
"It was unnecessary for me-" he
said, ito form any Judgment as TO
whether the steel corporation was
anxious to get the T. G. q !. company
because Il would be a benefit to their
business or whether they were anx.
ious only to save the situation.
In all essentials i believed that
their statement OF the situation was
accurate. Insofar as they Influenced
my action or my Judgment as to the
effect Of that action on the country,
/ the subsequent events exactly bore
out and justified my action"
With this the colonel's examina-
tion ended and after an exchange OF
|c0urtesfes between himself and the
committee, he forced his way through
| the crowds that had jammed the
rooms after his appearance became
known and left the city hall.
Charles M. schwab, whose test.
mony was interrupted to allow Col
Roosevelt to take the stand, resumed
when the colonel finished.