The Prescott daily news., 1912-07-20
ARRAioNS FORMER PRESIDENT FOR PERMITTING STEEL
 TRUST CONTROL.
WEAKER RIVAL WASABSORBED
pany Rails Were Superior to Bess. emer Process-Sixty Pages
 Contained in Document.

washington, July ZU.-Il9 report of the Stanley committee investigat- ing the United States Steel corpora. tion deals at great length with the absorption by the steel trust of the Tennessee Coal and Iron company during the panic of 1907, and criti- cizes in detail the action of Roosevelt In granting immunity to the steel cor poration to thus eliminate it's most powerful and only serious rival.
 The report, which will be presented to the house of representatives on Monday or Tuesday of next week, as. serts that:
 'f the steel corporation could have absorbed the Tennessee Coal and Iron company without a semblance of in. Jury to the steel industry or without the violation of existing law, it would not have been necessary for Judge Gary and MT. Prick, on a special car rlgged up at midnight, to make that hurried trip to Washington or to con. fer with the president before break, fast
 II the merger was in violation of the law, 1t is equally clear that the president had no right to condone oI encourage this violation or to pre-, vent the attorney-general from per forming his duties, even though the prosperity of a dozen bankers in New York had depended upon it, much less the fate of a single stock broker whose reckless, if not reprehensible. transactions had involved him in financial disaster"
 Steel Trust Methods Analysed
 ln summing up the attitude of the steel trust toward the broker, Schley and toward Oakleigh Thorne, presi. dent of the Trust Company of Amer. lea. and in connecting ii with "the dlslngenuous Interview with the presi. dent of the United States" the Stan. ley committee finds a striking illus. tration of the methods and motives oi the steel corporation, and says:
 ITO the bold and strong it is sub. servlent; to the weak and unwary ii IS snare; 1t never defies the one nor threatens the other. Notwith. standing its huge size and it's fabu. lous resources, its whole course has been subtle, tOrtuous and timid. The absorption of the Tennessee Coal and Iron company Is typical It's intended victims seldom suspect their peril be fore their doom is sealed-until they are enveloped in coils that are noise. less and crushed by strength that is irresistible"
 Some sixty pages are devoted to a review of the matter in which the steel corporation absorbed its weaker rival The superiority of the rails made by the open-hearth process of the Tennessee Coal and Iron company over the old Bessemer process rails of the steel trusts own manufacture Is clearly established, and 1t is shown that the production of Bessemer is actually, as well as relatively. on the decline, being 2,S63,G6S tons less in 1910 than in 1906. The purchase by E. H. Hartman of 100000 tons of rails from the Tennessee Coal and Iron company few months before the panic of 1907 is cited In the report and a New York newspaper is quoted to the effect that 1t brought the steel company So a realization that it had a strong competitor in the steel rail field" The report further quotes a statement from MT Rope, the general sales agent of the United States Steel corporation, made in March, 1906, that when the demand for rails falls off which will probably be in 1907, then we will be up against the open-hearth proposition good and hard"