That company had been expanded under Roosevelt, who had supported its acquisition of the Tennessee Coal, Iron, and Railroad Company as a means of preventing the deepening of the Panic of 1907, a decision the former president defended when testifying at the hearings. Taft, as Secretary of War, had praised the acquisitions.[112] Historian Louis L. Gould suggested that Roosevelt was likely deceived into believing that U.S. Steel did not want to purchase the Tennessee company, but it was in fact a bargain. For Roosevelt, questioning the matter went to his personal honesty.[113]
In October 1911, Taft's Justice Department brought suit against U.S. Steel, demanding that over a hundred of its subsidiaries be granted corporate independence, and naming as defendants many prominent business executives and financiers. The pleadings in the case had not been reviewed by Taft, and alleged that Roosevelt "had fostered monopoly, and had been duped by clever industrialists".[112] Roosevelt was offended by the references to him and his administration in the pleadings, and felt that Taft could not evade command responsibility by saying he did not know of them.