The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-07-27
WICKERSHAM ON The STAND
GENERAL CALLED
BY STEEL INVESTIGATIONS.
senator kenyon and Herbert Knox smith
Also Called Committee sought to
Find Out Relation OF Harvester Trust
Win United states steel Corporation.


Find Out Relation OF Harvester Trust
Win United states steel Corporation.
WASHINGTON. July 20 George W.
Wickersham. Attorney General; Herbert
Knox Smith. Commissioner of Corpora
tions and Judge ". s. Kenyon, Senator
from Iowa. appeared before the Stanley
steel investigating committee of the
House Of Representatives to-day They
were called to testify regarding the
relations of the International Harvester
trust with the United States Steel Cor
poration. Chairman Stanley having in
troduced in evidence a report on the
operations Of the Harvester company
made to Attorney-G General Bonaparte in
1909 by h c. Townsend. a special assis-
tant in the Department Of Justice Mr.
Townsend recommended in his report a
further investigation with view TO
prosecutions.
Mr.. Wickershams attention was di-
General replied that he knew nothing
about it, Asked il he could give rea-
son why the Government had not acted
| in this case the Attorney General replied:
Il can only surmise: | have no knowle dge
on the subject. My surmise is that ac-
ton was suspended pending the deci-
sions Of the Supreme Court in the Stand
ard Oil and Tobacco cases: Very meny
of the questions involved in the two
| prosecutions named would naturally be
involved in this case"
Th. Attorney-General was then cX-
| cused.
testified that he had no knowledge Of the
| Townsend report MIR. Smith was asked
by Chairman Stanley to obtain authority y
| from the President. it possible. to submit
to the committee all information in his
possession besring on the relations be-
tween the Harvester and steel companies
Commissioner Smith said he would take
up the matter with the President
Everything OF the kind in the chair
mans requisition." suggested r. V.
| Lindabury. counsel for United States
Steel $50 far rs it affects the corpora
| ton is included in the n inutes Of the
board of directors ant the finance com
mittee, all of which have been examined
by an expert Of the steel committee.
Senator Kenyon. who was assistant
| Attorney General for two or three years
by appointment of President Taft. said
he had no know ledge Of the Department :
vester company. He was on the stand
only few minutes. Mr.. Kenyon identi-
fed the Townsend report, after which he
remarked: Il am a firm believer in
criminal prosecutions in trust cases.
There was some discussion among
members OF the committee to-day as 10
the relevancy of the Tow nsend report
to the steel inquiry Mr.. Stanley pOinted
to a statement of Mr.. Tow nsend's to the
effect that the steel trust refunds to
Harvester companies s3 per ton for all
steel used in the manufacture ofmachlnerv
exported" This showed a relationship
Chairman Stanley insisted. and further
more il was his intention, he said, To
bring evidence out that would more
conclusively disclose n community of
interest between the two corporations.
The members Of the Stanley committee
ings in the case will be begun in the
Aldermanic Chamber in the New York
City Hall Tomorrow at 1920. Chairman
Stanley said to-day that he was uncertain
how long the committee would remain in
New York.
we may stay there week or we may
stay there twenty days" he said. Among
those who have been summoned to appear
at New J ork are Grant Is. Schley, Oakleish
Thorne and Richard Trimble. secretary
Of the Steel Corporation:
Chicago, July 26.-Production at this
time Of the report of Burdette {. Town
send by Chairman Stanley Of the House
committee invest eating the steel trust,
in which the International Harvester
Company ia charged with receiving re-
bates from the United States Steel Cor
poration on material purchased, was de-
clared to-day by officials of the Harvester
company to be nothing more than an
afterclap of the Lorimer investigation.
One official dec ared that the company
had been prepared for some time to "A-
pect some sort of attack by the interests
aroused by the part played by the Har-
vester company in the l.orimer inrestiga-
tion.
An official statement for the company
was given out by Clarence :. Fun>, gen.
eral manager, as follows:
The Washington despatch is too gen
+, eral in its terms TO admit Of a specific
reply. but we are UNIV illing to believe tina,
the alleged report of zoos to the Depart.
ment Of Justice contained charges which
| the most superficial investigation woulc
! have shown to be urfounded.
1T is hard 10 believe that any responsl'
BILE person could make tn" charge. for in
stance, that the Hsry ester company was
selling it's export machines at less prices
than are charged in this country when
the contrary had been shown to be true
not once but many times
1t was pointed out by one official that
the Harvester company in irN, rs AZ
present, bought little steel from the
steel trust. getting most of its material
from it's own mills, the Wisconsin steel
Company, end large part OF tn" re-
mainder from the ZONES & I.auGhlin Com
pany. 40 that practically nothing but sheet
| steel is purchased from the United States
Steel Corporation.
II also was argued thet toa largo extent
the Hervestp or company through IT. steel
mills il and he's been for some tim" a
compet itor of the steel trust and has never
been in position To expect, far less re-
| ceive, rebates.
None OF the Officials would anthori2e
settlement mentioning the Lorirner
scandal as n direct cause OF the disclosure
by Chairman Stanley because, it was
pointed out. there was no desire to say
ANYTHING that would reflect upon any
Government official engaged in making
invest igations. The alleged charges in
! the report accusing the company Of re-
cciving rebates and charging that the
company sold its machines for less in the
foreign market than IN the home market,
how ey er, were branded as false. "Abso