The Detroit times., 1911-07-26
HARVESTER TRUST
UNDER FIRE AGAIN
Stanley Says Prosecutor Townsend
Held 1t Illegal, But No Action Was
Taken by Bonaparte.

WASHINGTON July 26-A report
by an official of the department of
Justice. declaring the international
Harvester Co., combination in re-
straint of trade" was produced by
Chairman Stanley at today's. meet
ing Of the steel investigating commit
tee. The report was made to Attor-
ney- General Bonaparte In 1908, StaI.-
ley said, by Burdett G. Townsend, a
former special investigator of the de-
psrtment. Stanley declared II gavs
conclusive evidence that prosecution
under the Sherman law would have
been successful. He said he would
endeayor TO find out why there had
been no move against the trust.
After asserting that the trust con
trolled 80 per cent of the farm ma
chinery business or the country,
Townsend, in his report, said:
Harold Mccormick, Zone of tho
heavy stockholders OF the Mccormick
company Is a son.in-law OF John ~.
Rockefeller. J. Pierpont Morgan is
the trust-architect usually employed
by the Rockefellers. He Is a good
builder and receives fabulous fees
for his work. George w. Perkins is
his associate.
Therefore II harvester trust was
formed, we should anticipate some OF
the circumstances of the organization,
viz:
1T would be designed and executed
by ]. p. Morgan & Co., probably
through George w. Perkins.
The amount of the fee charged for
such services would indicate the char
acter of the work.
1T would be organized In such a
way that the Rockefeller influences
could ultimately secure control.
"The price paid J. p. Morgan & Co.
indicates the nature OF the transac-
ton" the report continued. Five
million dollars is a very high price
for the service Of suggesting to people
how they can agree In a legitimate
transaction. II is not unusual In an
illegal transaction such as suggesting
a trust, which can evade the laws.
Doubtless II proceedings are instituts
ed against the International Harvester
Co, the manner of its defense will
demonstrate that the fee was earned.
Il was surprised to learn that the
Steel trust refunds to harvester com
panies SO per ton for all steel used
I'm the manufacture OF machinery ex-
ported, the import duty paid and af-
terwards refunded as under the draw
back act, indicating that steel can
profitably be produced In this country
and sold at the foreign price"
BOSTON, July 26.-The Shoe Ma
chinery trust, which has an iron grasp
on the shoe business of the continent,
is to be investigated by a federal
grand jury. 1t is already under fire
in Canada, where proceedings have
been begun under the Dominion anti
monopoly act. TO have its patent rights
suspended because of alleged extor-
tion practiced on Canadian shoe man
ufacturers.
Instructions we're received by Uni
ted States District Attorney Asa p.
French today from the department or
Justice at washington, to have the
federal grand jury. which meets next
Tuesday, take up the various COM
paints against the United Shoe Ma
chinery Co.
Atty.-Ge George w. Wickersham.
on the witness stand this afternoon,
declared he had never seen the Town.
send report until today. He said
Townsend was now in Seattle as
special assistant encouragement and
promised to have him here for exam
ination by the committees IN October
when STANLEY said Andrew Carnegie
would be here.
"Have YOU any idea why the harves-
ter trust was not prosecuted prior TO
the time Won became attorney-gen-
eral?" asked Stanley.
why. surmise that the reason
was that the tobacco and Standard
OIL cases were then being fought out
and Il was probably thought inadvis-
able TO bring any further cases until
the Sherman law wes made clear. =
the encouragement replied.
TAxIcAB--MArN on cTrY-Is.