The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-08-05

and that the assets Of a certain big
stock brokerage company were threat
ened. They sid they were fully col
vinced this company would fail If the
Tennessee transaction Were not com
rleted These securities had no mar
Set value at the moment they said, ana
they stated they were willing to pur-
chase that property for the steel cor
ttinp that rhe steel corpora ton did
not wish to do t for the sake of a
transaction itsr3f becarse it hid been
their policy to keep their proportion OF
the steel business ct % Per cent OF
less AS a matter of fact their con
troll was less They said they We're Will
ing AMI anxious to take over the pro
pertv because hey felt Il WGs Ihe only
way to save the situation, thai 1t would
put the power of the steel corporation
behind the companies on the hrinG Il le,
and IN a position to prevent disaster
Won spoke of their mentioning trust
companies" Mr. Stanley asked 'dla
they mentrl ny"
- think they mentioned none,' Mr.
Roosevelt replied, ''and I did not ask
them for the names.
The text of Col. RooseVeit's state
ment is as follows:
IN the fail Of 1907 there Wee severe
business disturbances and hnahcldl
stringency eliminating in panic
which arose in New York and spread
over the country. The damage ac.Gal-
IL done was great and damage threat
coed was incalculable. Thanks largely
to the action of the government the
panic was stopped before, instead OF
beinp merely a serious business check,
II became n frightfuI and natl Jn-wide
calamity a disaster frauSht with un-
told misery and woe to all our people.
For several days the nation trernpleo
ON the brink Of such a calamity of such
disaster. as you gentlemen doubtiess
remember.
During these days both the seer stary
IF the treasury and l personally were
in hourly communication with New
york following every change IN the SIT
nation and trying to anticipate every
GeveloDnent. 1t was the obvious duty
If the administration to take every
stem possible TO prevent apP2llng ais
aster by checlSir 8 the spread OF the
panic before it grew so that notnins
could check it aCd events moved WIN ~
such spee.4 that it was necessary 70
decide and to act on the instant, as
.aaoh successive crisis arose. If the De
cision and action were to accomplish
anything. .oo,-
va ions actions, some on his own lhi-
tiative, some by my dnecuon- A4ate az
cne evening I was Informed thdt W.
renresentatives of the steel corporation
wished to see me early the 1oll' WIG
morning the precise obJect -fct Deilts
named Next morning, While at Dredh-
fast was informed that Messrs- trlck
and cary were waiting at the once l
at once went over and as the dlloi
nev general, Mr. Bonapar'e, nae not
vet arrived from Baltimore, WheFe ne
Message asking the secretary of stare
NFr Foot who was also lawyer, 10
ioir MS which he did Before the close
Of the interview, and IN the pl
of the three gentlemen Named uiG ~
+a+ed q note to Mr. Bonaparte' sci
80 f,,tl, exactly what Messrs. Frlck
and Gary had proposed and eA.;ctly
.l,a+ had ansW ered-sO that theFe
might be no possibility OF istIas nus q,
standing. This note was punIlSnec IN ~
a senate document VINE s,,-o,S IN the
-,.esident and is already spread on ele
roinufes of the committee. 1t ru- as
follSMSi iSEsi read it. gentlemen"
The chairman: Just as you IKE
Col. Roosevelt ..,,-..,. ,,o,,r nornis-
Mr.. Roosevelt: WIN y""i
sion. 1 viii read It.
The Note to BOnaparte
"The White House, WashlnetoH' H. NJ
vember 4, 1907 c.,.o-,1.
INV Dear Mr.. ATTORNEY 1Sl4SI 4S.. a.. :.
Tudge r. H. Gary and Mr.. H g. F~rlch ~
on behalf of the Steel corporation IA
lust called on me. 4.-i
"Thev state there is a certain bust
ness firm (the name OF whlcn 1 nay S.N.
notebeen told but which IS OF @ real III IN
q
eles) which will undoubtedly ran TINS
week if help is not given. Among lls
assets are a majority of the securltles
of the Tennessee Coal company. Ap-
n1ication has been urgently made 10
the steel corporation to purchase the
etoclr as the only means of avoiding d
failure Judge Gary and MT. trlck ~
formed me that as mere business
transaction they do not care to pur-
chase the stock: that under ordinary
hoy would not COnSlQ9T
purchasing the stock, because but 1T
tle benefit will come to the steel cor
poration from the purchase; that tney
are aware that the purchase VIII De
used as handle for attack upon l luelh
on the ground that they are striving %
secure a monopoly of the business an1
prevent cOmpetitiOn-not that lhlS
would represent what could honesty
be said. but what might recklessly ana
untruthfully be said.
tThev further informed me that as
matter of fact the policy of the corn
pany has been to decline to acquire
more than 60 per cent or the steer
properties and that this purpose mas
been observed for several years past,
/ with the object of preventing these ac-
cusations, and as matter OF 1act
1 their proportion of steel properties has
4 slightly decreased, so that 1t IS below
this go per cent and the acquisition OF
4 the property in question Will not raise
/ it above 60 per cent. But they feel
4 that it is immensely to their interests
as to the interest of every responsible
4 business man to try to prevent a panic
/ and general Industrial smashup at this
/ time and that they are willing to 90
/ into this transa ction, which they woul
not otherwise go into, because it seems
/ the opinion of those best fitted to cX-
4 press judgment that it may be an I'M
portant factor in preventing break
that might be ruinOus; that this has
been urged on them by the combina-
tion of the most responsible bankers n
4 New York who are now thus engaged
4 in endeavoriug to save the situation
But they asserted they did not wish %
do this If I stated that it ought not