Theyfurtherinformedmethat，asamatteroffact，thepolicyofthecompanyhasbeentodeclinetoacquiremorethansixtypercentofthesteelproperties，andthatthispurposehasbeenperseveredinforseveralyearspast，withtheobjectofpreventingtheseaccusations，and，asamatteroffact，theirproportionofsteelpropertieshasslightlydecreased，sothatitisbelowthissixtypercent，andtheacquisitionofthepropertyinquestionwillnotraiseitabovesixtypercent。Buttheyfeelthatitisimmenselytotheirinterest，astotheinterestofeveryresponsiblebusinessman，totrytopreventapanicandgeneralindustrialsmash-upatthistime，andthattheyarewillingtogointothistransaction，whichtheywouldnototherwisegointo，becauseitseemstheopinionofthosebestfittedtoexpressjudgmentinNewYorkthatitwillbeanimportantfactorinpreventingabreakthatmightberuinous；andthatthishasbeenurgeduponthembythecombinationofthemostresponsiblebankersinNewYorkwhoarenowthusengagedinendeavoringtosavethesituation。ButtheyassertedthattheydidnotwishtodothisifIstatedthatitoughtnottobedone。I
answeredthat，whileofcourseIcouldnotadvisethemtotaketheactionproposed，Ifeltitnopublicdutyofminetointerposeanyobjections。
Sincerelyyours，SignedTHEODOREROOSEVELT。
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，amongtheassetsofthethreatenedinstitutionswhich，bytheway，theydidnotnametome，securitiesofgreatandimmediatevalueforsecuritieswhichatthemomentwereofnovalue。Itwasnecessaryformetodecideontheinstant，beforetheStockExchangeopened，forthesituationinNewYorkwassuchthatanyhourmightbevital，andfailuretoactforevenanhourmightmakeallsubsequentefforttoactutterlyuseless。Fromthebestinformationatmydisposal，I
believedwhatwasactuallythefactthattheadditionoftheTennesseeCoalandIronpropertywouldonlyincreasetheproportionoftheSteelCompany’sholdingsbyaboutfourpercent，makingthemaboutsixty-twopercentinsteadofaboutfifty-eightpercentofthetotalvalueinthecountry；anadditionwhich，byitself，inmyjudgmentconcurredin，notonlybytheAttorney-Generalbutbyeverycompetentlawyer，workednochangeinthelegalstatusoftheSteelcorporation。Thediminutioninthepercentageofholdings，andproduction，hasgoneonsteadily，andthepercentageisnowabouttenpercentlessthanitwastenyearsago。
Theactionwasemphaticallyforthegeneralgood。Itofferedtheonlychanceforarrestingthepanic，anditdidarrestthepanic。I
answeredMessrs。FrickandGary，assetforthintheletterquotedabove，totheeffectthatIdidnotdeemitmydutytointerfere，thatis，toforbidtheactionwhichmorethananythingelseinactualfactsavedthesituation。Theresultjustifiedmyjudgment。Thepanicwasstopped，publicconfidenceinthesolvencyofthethreatenedinstitutionbeingatoncerestored。
BusinesswasvitallyhelpedbywhatIdid。Thebenefitwasnotonlyforthemoment。Itwaspermanent。ParticularlywasthisthecaseintheSouth。ThreeorfouryearsafterwardsIvisitedBirmingham。EverymanImet，withoutexception，whowascompetenttotestify，informedmevoluntarilythattheresultsoftheactiontakenhadbeenoftheutmostbenefittoBirmingham，andthereforetoAlabama，theindustryhavingprofitedtoanextraordinarydegree，notonlyfromthestandpointofthebusiness，butfromthestandpointofthecommunityatlargeandofthewage-workers，bythechangeinownership。TheresultsoftheactionItookwerebeneficialfromeverystandpoint，andtheactionitself，atthetimewhenitwastaken，wasvitallynecessarytothewelfareofthepeopleoftheUnitedStates。
Iwouldhavebeenderelictinmyduty，Iwouldhaveshownmyselfatimidandunworthypublicservant，ifinthatextraordinarycrisisI
hadnotactedpreciselyasIdidact。Ineverysuchcrisisthetemptationtoindecision，tonon-action，isgreat，forexcusescanalwaysbefoundfornon-action，andactionmeansriskandthecertaintyofblametothemanwhoacts。Butifthemanisworthhissalthewilldohisduty，hewillgivethepeoplethebenefitofthedoubt，andactinanywaywhichtheirinterestsdemandandwhichisnotaffirmativelyprohibitedbylaw，unheedingthelikelihoodthathehimself，whenthecrisisisoverandthedangerpast，willbeassailedforwhathehasdone。
EverystepItookinthismatterwasopenastheday，andwasknownindetailatthemomenttoallpeople。ThepresscontainedfullaccountsofthevisittomeofMessrs。FrickandGary，andheraldedwidelyandwithacclamationtheresultsofthatvisit。Atthetimethereliefandrejoicingoverwhathadbeendonewerewell-nighuniversal。Thedangerwastooimminentandtooappallingformetobewillingtocondemnthosewhoweresuccessfulinsavingthemfromit。ButIfullyunderstoodandexpectedthatwhentherewasnolongerdanger，whenthefearhadbeenforgotten，attackwouldbemadeuponme；andasamatteroffactafterayearhadelapsedtheattackwasbegun，andhascontinuedatintervalseversince；myordinaryassailantbeingsomepoliticianofrathercheaptype。
IfIwereonasail-boat，Ishouldnotordinarilymeddlewithanyofthegear；butifasuddensquallstruckus，andthemainsheetjammed，sothattheboatthreatenedtocapsize，Iwouldunhesitatinglycutthemainsheet，eventhoughIweresurethattheowner，nomatterhowgratefultomeatthemomentforhavingsavedhislife，wouldafewweekslater，whenhehadforgottenhisdangerandhisfear，decidetosuemeforthevalueofthecutrope。ButIwouldfeelaheartycontemptfortheownerwhosoacted。
Thereweremanyotherthingsthatwedidinconnectionwithcorporations。Oneofthemostimportantwasthepassageofthemeatinspectionlawbecauseofscandalousabusesshowntoexistinthegreatpacking-housesinChicagoandelsewhere。Therewasacuriousresultofthislaw，similartowhatoccurredinconnectionwiththelawprovidingforeffectiverailwayregulation。Thebigbeefmenbitterlyopposedthelaw；justasthebigrailwaymenopposedtheHepburnAct。Yetthreeorfouryearsaftertheselawshadbeenputonthestatutebookseveryhonestmanbothinthebeefbusinessandtherailwaybusinesscametotheconclusionthattheyworkedgoodandnotharmtothedecentbusinessconcerns。Theyhurtonlythosewhowerenotactingastheyshouldhaveacted。Thelawprovidingfortheinspectionofpacking-houses，andthePureFoodandDrugsAct，werealsoextremelyimportant；andthewayinwhichtheywereadministeredwasevenmoreimportant。ItwouldbehardtooverstatethevalueoftheservicerenderedinallthesecasesbysuchcabinetofficersasMoodyandBonaparte，andtheiroutsideassistantsofthestampofFrankKellogg。
Itwouldbeuselesstoenumerateallthesuitswebrought。SomeofthemIhavealreadytouchedupon。Others，suchasthesuitsagainsttheHarrimanrailwaycorporations，whichweresuccessful，andwhichhadbeenrenderedabsolutelynecessarybythegrosslyimproperactionofthecorporationsconcerned，offerednospecialpointsofinterest。
TheSugarTrustproceedings，however，maybementionedasshowingjustthekindofthingthatwasdoneandthekindofobstacleencounteredandovercomeinprosecutionsofthischaracter。
Itwasontheadviceofmysecretary，WilliamLoeb，Jr。，afterwardheadoftheNewYorkCustom-House，thattheactionwastakenwhichstartedtheuncoveringofthefraudsperpetratedbytheSugarTrustandothercompaniesinconnectionwiththeimportingofsugar。LoebhadfromtimetotimetoldmethathewassurethattherewasfraudinconnectionwiththeimportationsbytheSugarTrustthroughtheNewYorkCustom-House。Finally，sometimetowardtheendof1904，heinformedmethatRichardParr，asamplerattheNewYorkAppraisers’
Storeswhosedutiestookhimalmostcontinuallyonthedocksinconnectionwiththesamplingofmerchandise，hadcalledonhim，andhadstatedthatinhisbeliefthesugarcompaniesweredefraudingtheGovernmentinthematterofweights，andhadstatedthatifhecouldbemadeaninvestigatingofficeroftheTreasuryDepartment，hewasconfidentthathecouldshowtherewaswrongdoing。ParrhadbeenaformerschoolfellowofLoebinAlbany，andLoebbelievedhimtobeloyal，honest，andefficient。Hethereuponlaidthematterbeforeme，andadvisedtheappointmentofParrasaspecialemployeeoftheTreasuryDepartment，forthespecificpurposeofinvestigatingtheallegedsugarfrauds。IinstructedtheTreasuryDepartmentaccordingly，andwasinformedthattherewasnovacancyintheforceofspecialemployees，butthatParrwouldbegiventhefirstplacethatopenedup。Earlyinthespringof1905ParrcametoLoebagain，andsaidthathehadreceivedadditionalinformationaboutthesugarfrauds，andwasanxioustobegintheinvestigation。Loebagaindiscussedthematterwithme；andInotifiedtheTreasuryDepartmenttoappointParrimmediately。OnJune1，1905，hereceivedhisappointment，andwasassignedtotheportofBostonforthepurposeofgainingsomeexperienceasaninvestigatingofficer。DuringthemonthhewastransferredtotheMaineDistrict，withheadquartersatPortland，whereheremaineduntilMarch，1907。DuringhisserviceinMaineheuncoveredextensivewoolsmugglingfrauds。Attheconclusionofthewoolcase，heappealedtoLoebtohavehimtransferredtoNewYork，sothathemightundertaketheinvestigationofthesugarunderweighingfrauds。InowcalledtheattentionofSecretaryCortelyoupersonallytothematter，sothathewouldbeabletokeepacheckoveranysubordinateswhomighttrytointerferewithParr，fortheconspiracywasevidentlywidespread，thewealthoftheoffendersgreat，andthecorruptionintheservicefar-reaching——whilemoreoverasalwayshappenswith“respectable“offenders，thereweremanygoodmenwhosincerelydisbelievedinthepossibilityofcorruptiononthepartofmenofsuchhighfinancialstanding。ParrwasassignedtoNewYorkearlyinMarch，1907，andatoncebegananactiveinvestigationoftheconditionsexistingonthesugardocks。ThisterminatedinthediscoveryofasteelspringinoneofthescalesoftheHavemeyer&
ElderdocksinBrooklyn，November20，1907，whichenabledustouncoverwhatwereprobablythemostcolossalfraudseverperpetratedintheCustomsService。FromthebeginningofhisactiveworkintheinvestigationofthesugarfraudsinMarch，1907，toMarch4，1909，Parr，fromtimetotime，personallyreportedtoLoeb，attheWhiteHouse，theprogressofhisinvestigations，andLoebinhisturnkeptmepersonallyadvised。OnoneoccasiontherewasanattemptmadetoshuntParrofftheinvestigationandsubstituteanotheragentoftheTreasury，whowassuspectedofhavingsomerelationswiththesugarcompaniesunderinvestigation；butParrreportedthefactstoLoeb，I
sentforSecretaryCortelyou，andSecretaryCortelyoupromptlytookchargeofthematterhimself，puttingParrbackontheinvestigation。
DuringtheinvestigationParrwassubjectedtoallsortsofharassments，includinganattempttobribehimbySpitzer，thedocksuperintendentoftheHavemeyer&ElderRefinery，forwhichSpitzerwasconvictedandservedaterminprison。Brzezinski，aspecialagent，whowasassistingParr，wasconvictedofperjuryandalsoservedaterminprison，hehavingchangedhistestimony，inthetrialofSpitzerfortheattemptedbriberyofParr，fromthatwhichhegavebeforetheGrandJury。ForhisextraordinaryservicesinconnectionwiththisinvestigationParrwasgrantedanawardof$100，000bytheTreasuryDepartment。