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Show PRESIDENT WENT I BE10NDAUTH0RITV I Subcommittee of Committee Dc- Y. cides to So Report After Full j . Investigation. TENNESSEE AND STEEL A H TRUST MERGER IN POINT If Report Is Sustained by Full Committee, Rebuke Will Be Ij Most Severe. fl WASHINGTON, Feb. 20. By a voto" of three to two, tho subcommittee of the committco on judiciary, which has. 1, been investigating tho merger of the ys jH Tcuncsseo Coal and Iron company and . the Unitod States Steel corporation, to- nj day decided to report to the full com ;j' mittcc that tho president was not au. wmwm thorized to permit the absorption. The committee found also that Presu dent Roosevelt was equally nnauthor- wM ized to direct the attorney goneral not -,. WAWA to interfere with the merger and nod 1 ( wAwA to enforce the federal statutes ngainst ; , it. It was decided also that as both JJ companies woro engaged in intcrstata ;( WAw commerce, tho absorption was in viola- ! j wM tion of the Sherman anti-trust law. It wM was found that tho effect and purposo i WAw of tho absorption wero to monopolize ? pppj tho iron ore supply of tho country and generally to eliminato tho Tennesseo company as a competitor of tho Unitod. Jl States Steel corporation. pH Consternation In Souato. wM The fact that such a. report was to. I,' wAw be mado created consternation in the L ppj senate. It was realized that if tho ppj f:ll committco subscribes to tho find- p ppH iugs of tho subcommittee the effect 4 pH would bo to administer tho eoverest ppH of reliukes to President Roosevelt and ' WrnM practically to direct tho attorney gon- WrnM oral to bring proceedings against tho 'J WrnM steel corporation under tho Sherman WrnM law. Leaders in the senate make no 1 WrnM secret of the fact that they aro nn- ;n , mWM willing to go that far. Under theso iWwM circumstances the full committee, when WrnM it nleotfi on Mond.13, probably will do- ' WrnM cido to consider very carofylly the pos- j pH siblc effect of tho report beforo decid- j mWM ing to ndoptit. The report acted upon ; ppH was drafted v by Senator Culberson, au- VmWM thor.of the resolution providing for tho ' ipH inmiirv. IHIH The inquiry was conducted by a sub- VWM committco of live, Messrs. Clarke o mM Wyoming, Dillingham, Kittredge, C11I- borson and Overman. The first throe. wmU of those aro Republicans nnd the last mMm two Democrats". Senator Kiltredgo joined with tho two Democrats in mak- ,. ' ing the majority report. No minority y- wrnM report was made by Senators Clarke and , Dillingham. Tho subcommittee decided . tWmm not to make tho text of its report pub- wrnU lie, although the interest in it. was so tWWM great that the findings becamo known wrnM to practically the entire senato during UM tho afternoon, wM Questions of Pact. ! ' In addition to the findings of law, the committoo reported on mnny qucs- mUM tions of fact connected with the mer- Wmrn ger. It was found that during tho panic. WWW days of November, 1907, tho United States Steel corporation purchased all ' Mmm the stock of tho Tonnossee Coal and 1 MmM Iron company except $220,100, tho Mmw amount of tho stock acquired boing mm $a0.375,82;'5. It is shown that onlv Mmw $632,050 in cash was paid for tho Btock Mmm and that bonds of the sieol corpora- MMm tion wero issued to tho amount oL L mMM $34,GS-l,f)7S, or nearly fivo million in Mm oxcs of tho par valuo of tho Ten- imMW netseo companj- 6tock purchased.. The report quotes from tho president 3 mmm message declaring tho absorption was MUm necessary according to tho lepresentn- Mmw tions to him bv Judge Gary aud H. C. . Mm Fric.k, on behalf of tho steel corpora- ; Mm lion, as a certain business linn of real , . rnWW importance in Now York circles would Wm niidoubtcdlv fail unless tho oeal could mWM be made. From testimony of a nambcr ;.H of witnesses tho report declares that Mmm the firm of Moore & Schloy, stock brok- f mm ors of New York, was tho ono rerrrTCd ,; mm to by Messrs. Gary and Frick. This. is VVM the concern which managed tno cflairs mmi of a party of financiers who bought a mm majority of tho stock of the renr.essco mm company and held it until Novombcr, ;.. mm 190 ' Attltudo of Banks. It is asserted by tho report that banks in New York, some 01 them - -. WRm known us Morgan banks, pressed tho 1 mm loans ou Tennessco Coal company stock f mmm vigorously and that theso demands wero ,. mmm mot successfnlh', until, fearful of tho b mm. rcult on account of tho business un- ? -'H easiness in regard to the Tennessco mm stock terms wero made with tho steel j) . mmm florporation. It is asserted tho syndi- 1 immw rate did not wish to sell r.s .stocky mmt but was forced to do so. j. mW Sarcastic references were mado to urn mmm reported statement of Judge (Jan; and W Mr. Frick in their interview with tho V , mmt president, that they did not want to buy j--. mmt the Teuuesscc concern. Irom the tc-sti- mm mouy if is asserted that tho lonnes- t seo property in worth probably several M hundred million dollars and would givcj mmm tho steel corporation ultimate control f mm of tho iron oro supply of tho country t lmm and the iron and steel trade of tho pj- mmW 5'0Tthis asserted by the commit Uo that ' " Jmm whatever may bo the suppoped. omer- mmt genev no discretion is lodged 111 10 ,.' 1 presi'dent as to tho enforcement of tho M; mmm law It was found tn tho opinion of f, , mmm a majority of tho subcommittee that t,j ' MmW tho president's communication to Attor- ., ( mmm noy General Bonaparte was. in affect J . direction not to interfere with the mer- ,mm cer. It was pointed, out that; nndor tho ; , ' fmmW federal constitution the president is tho ty Vmm Continued on Page Fight. JL ISB PRESIDENT WENT w BEYOND AUTHORltV Continued from Page Ono 'J jfjj one official who is expressly enjoin ftt to "take care that tho laws be fait TIP fully executed." q$ |