第68章

Theyfurtherinformedmethat，asamatteroffact，thepolicyofthecompanyhasbeentodeclinetoacquiremorethansixtypercentofthesteelproperties，andthatthispurposehasbeenperseveredinforseveralyearspast，withtheobjectofpreventingtheseaccusations，and，asamatteroffact，theirproportionofsteelpropertieshasslightlydecreased，sothatitisbelowthissixtypercent，andtheacquisitionofthepropertyinquestionwillnotraiseitabovesixtypercent。Buttheyfeelthatitisimmenselytotheirinterest，astotheinterestofeveryresponsiblebusinessman，totrytopreventapanicandgeneralindustrialsmash-upatthistime，andthattheyarewillingtogointothistransaction，whichtheywouldnototherwisegointo，becauseitseemstheopinionofthosebestfittedtoexpressjudgmentinNewYorkthatitwillbeanimportantfactorinpreventingabreakthatmightberuinous；andthatthishasbeenurgeduponthembythecombinationofthemostresponsiblebankersinNewYorkwhoarenowthusengagedinendeavoringtosavethesituation。ButtheyassertedthattheydidnotwishtodothisifIstatedthatitoughtnottobedone。I

answeredthat，whileofcourseIcouldnotadvisethemtotaketheactionproposed，Ifeltitnopublicdutyofminetointerposeanyobjections。

Sincerelyyours，(Signed)THEODOREROOSEVELT。

HON。CHARLESJ。BONAPARTE，Attorney-General。

Mr。Bonapartereceivedthisnoteinaboutanhour，andthatsamemorninghecameover，acknowledgeditsreceipt，andsaidthatmyanswerwastheonlyproperanswerthatcouldhavebeenmade，havingregardbothtothelawandtotheneedsofthesituation。Hestatedthatthelegalsituationhadbeeninnowaychanged，andthatnosufficientgroundexistedforprosecutionoftheSteelCorporation。

ButIactedpurelyonmyowninitiative，andtheresponsibilityfortheactwassolelymine。

IwasintimatelyacquaintedwiththesituationinNewYork。Theword“panic“meansfear，unreasoningfear；tostopapanicitisnecessarytorestoreconfidence；andatthemomenttheso-calledMorganinterestsweretheonlyinterestswhichretainedafullholdontheconfidenceofthepeopleofNewYork——notonlythebusinesspeople，buttheimmensemassofmenandwomenwhoownedsmallinvestmentsorhadsmallsavingsinthebanksandtrustcompanies。Mr。Morganandhisassociateswereofcoursefightinghardtopreventthelossofconfidenceandthepanicdistrustfromincreasingtosuchadegreeastobringanyotherbigfinancialinstitutionsdown；forthiswouldprobablyhavebeenfollowedbyageneral，andverylikelyaworldwide，crash。TheKnickerbockerTrustCompanyhadalreadyfailed，andrunshadbegunon，orwerethreatenedasregards，twootherbigtrustcompanies。Thesecompanieswerenowonthefightingline，anditwastotheinterestofeverybodytostrengthenthem，inorderthatthesituationmightbesaved。Itwasamatterofgeneralknowledgeandbeliefthatthey，ortheindividualsprominentinthem，heldthesecuritiesoftheTennesseeCoalandIronCompany，whichsecuritieshadnomarketvalue，andwereuselessasasourceofstrengthintheemergency。TheSteelCorporationsecurities，onthecontrary，wereimmediatelymarketable，theirgreatvaluebeingknownandadmittedallovertheworld——astheeventshowed。TheproposalofMessrs。FrickandGarywasthattheSteelCorporationshouldatonceacquiretheTennesseeCoalandIronCompany，andtherebysubstitute，amongtheassetsofthethreatenedinstitutions(which，bytheway，theydidnotnametome)，securitiesofgreatandimmediatevalueforsecuritieswhichatthemomentwereofnovalue。Itwasnecessaryformetodecideontheinstant，beforetheStockExchangeopened，forthesituationinNewYorkwassuchthatanyhourmightbevital，andfailuretoactforevenanhourmightmakeallsubsequentefforttoactutterlyuseless。Fromthebestinformationatmydisposal，I

believed(whatwasactuallythefact)thattheadditionoftheTennesseeCoalandIronpropertywouldonlyincreasetheproportionoftheSteelCompany’sholdingsbyaboutfourpercent，makingthemaboutsixty-twopercentinsteadofaboutfifty-eightpercentofthetotalvalueinthecountry；anadditionwhich，byitself，inmyjudgment(concurredin，notonlybytheAttorney-Generalbutbyeverycompetentlawyer)，workednochangeinthelegalstatusoftheSteelcorporation。Thediminutioninthepercentageofholdings，andproduction，hasgoneonsteadily，andthepercentageisnowabouttenpercentlessthanitwastenyearsago。

Theactionwasemphaticallyfortheg