The R. M. S. Titanic was the largest ship of its time. It sank on its maiden voyage after a glancing blow with an iceberg.
Titanic’s precious cargo: its passengers from all over the world.
Built in Ireland, it was American-owned. John Pierpont Morgan, Jr. held a large investment in International Mercantile Marine Company (IMM), which owned Titanic.
Back in 1912, the United States did not have a national individual income tax. In the late 19th century and early 20th century, wealthy families, such as the Morgan family, had provided millions of dollars to the young country in the form of bonds to relieve the debt caused by the Civil War. These families also looked into investments into countries such as China. These investments were solicited or often encouraged by Washington to levy a particular political point or sway a country into favor with the young United States. These families were considered heroes by some and money hungry fiends by others.
The railroads made many of these families wealthy. The trains offered the safest means to cross North or South America. But work was actually near completion on the Panama Canal to allow swift passage back and forth from the Atlantic to the Pacific, when Titanic was being conceived. Not only were Morgan’s investments in Central America going to suffer, but the entire railroad business could be severely impacted. It was around this time that Morgan bought into the Titanic. And it was also around this time that newspapers were filled with stories and claims, and rumors of claims, of trusts and anti-trust investigations. Secret Service, train robbery investigations, and the new Department of Justice, Bureau of Investigation were in newspaper articles. Who were these investigators? Senator Smith deputized men from Michigan to work as investigators for him. When the newspapers referred to DOJ investigators, were they referring to investigators within the newly established Bureau of Investigation from within the Department of Justice or were these Michigan law enforcement men sworn to investigate and serve subpoenas for Senator Smith these investigators? What were they investigating? There were rumors of false radio messages and reinsurance to hold down losses.
At the time of the sinking, the only material things of value saved from Titanic were some lifeboats brought aboard Carpathia. Limited Liability reduced significantly the amount claimants could split in any suit to the value of thirteen lifeboats. The Southern District of New York was called upon to decide for these claimants. The international make-up of the passengers, the operation by the United Kingdom, the major ownership by the United States, an accident in the middle of the North Atlantic that did not involve another ship - all of these established a precedent. The Southern District of New York called upon the Supreme Court to decide. With the appeal to the Supreme Court, the District of Columbia would again be the site where America would gather experts and witnesses to examine the sinking of Titanic, this time to settle the issue of liability.
The Washington Post and the Evening Star were two of the local DC newspapers reporting on the events of 1912 and the years that followed. Associated Press had a Washington Bureau.
Many people connected to the Titanic made Washington, D. C. area their home. Major Archibald Butt, the military aid to President Taft, had a home in Washington, D. C. Archibald Gracie, a wealthy historian, also owned a home in DC. Butt was lost in the disaster. Gracie was a Titanic survivor, attended all of the U. S. Inquiry hearings and wrote his own account of the events of the sinking published in 1913, after his death in December 1912.