THE PANIC OF 1908.

Evening Post, Volume LXXXII, Issue 144, 15 December 1911, Page 2

THE PANIC OF 1908.

The Bill brings in the name of ex-Pre-sident Roosevelt. in a manner that_ is causing widespread discussion. During the panic of 1908, Roosevelt permitted the Steel Trust to acquire the property of the .Tennessee Coal and Iron- Company. He was informed and convinced by the trust officials that only, thus could the panic be prevented from assuming very much more serious proportions. Recently, mi testifying before a Congressional Committee, the ( former President stated that this was his one reason for tacitly permitting the absorption. The Government in its Bill now asserts that President Roosevelt was deceived when he was informed that but little benefit would come to the Steel Corporation by the purchase. As a matter of fact, the Bill states the Steel Corporation "greatly strengthened its control of the iron ore supply of the country, its predominating position in the iron and steel trade of the South eliminated a competitor, and unlawfully acquired a pow"er which is a menace to the welfare of the country, and should be destroyed." Not the least important part of the Government's petition is that which shows the extent to which the trust- is represented in the, directorates of other concerns. For instance, George F. Baker is a director in 56 other corporations, Edmund. C. Converse in 28, William E. Corey in 32, and J. Pierpont Morgan in 51. Concerning this state of affairs the Bill states :— "Under the new policy of corporations there grew up a community ot jnterest and a power to influence action to a common purpose never exceeded. in the commea'cial history of the world. There came into existence a system of interlacing of directorates which embraced almost the entire commercial and financial powers of the country. Through its directors thus distributed the corporation is in direct touch with all tho large railroad and steamship companies in the United States, such powerful concerns as the Standard Oil Company^ the Pullman Company, the International Harvester Company and the Western Union Telegraph Company, and with an overwhelming majority in money and powerful banks and trust companies of the United States. The possibilities of the power and control that may thus be. exerted over trade and commerce is inestimable. The power and control that have been exerted by the corporation', largely through the grasp of its tentacles thus thrown out upon, the consumers, competitors, arid capital is incompatible with the healthy commercial life of the nation.'' ILLEGAL POOLS. Tho Bill goes on to allege the formation of illegal pools, known as the Steel Plate Association, the Structural Steel Association, the Steel Rail Combination, the Wire Rope Combination, the Rubber-covered Combination, the. Horseshoe Manufacturers' Association, the Underground Power Cable Association, the Bare Copper Wire Combination, ana others. These are shown to .have been for the illegal purpose of suppressing competition and fixing prices in the commodities indicated. What the Government demands isth« entire dissolution of the trust and its disintegration into the thirty -seven distinct corporations of which it is composed, ,that the holding of stock by one of the companies in any of the other companies be declared illegal, that all of the sub-, sidiary companies be prohibited from paying dividends to the Steel Corporation, that the stock of the subsidiary corporations be distributed in such man- [ ncr as to prevent a continuance of the i trust, and that all the individual defendants be enjoined from continuing the existence of, the trust. However* it is interesting to note Attorney-Gen-eral Wickers-ham's statement that he does not hope to see business return to the conditions of competition that prevailed before the first trust came into existence. "We cannot return to our swaddling clpthes," he is quoted as having said : "We must adjust to a new set of conditions entirely." Already tho charge has been made that the suit is a political move on the part 6f President Taft, designed to strengthen his chances in the impending election. The President's denial of this charge is not wanting in vigour. "I would rather cut off my right hand," he exclaimed, "than do anything to diatui'b the Dusiness of this country, ' especially with a motive of cultivating politica 1 success."