Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1911-07-29
TRUST REPORT
KEPT SECRET
BOnaparte Ignored Charges
Against Harvester Co.
STEEL INQUIRY EXPOSURE
Standard Oil and Morgan Closely Al.
lied to Great Merger-Reeeived Re-
bates From Steel Company.

Another document oil sensational III
terest, equal to the Steel Plate ASSOC
citation agreement recently produced,
was laid before the Stanley steel trust
investigating committee.
This was report by Burdette Town
send to former Attorney General Bo-
naparte. during the Roosevelt admin
istration. on the International Har-
ycster company, the so.called trust.
The report showed that the United
States Steel Corporation allowed re-
bates of So TO the Harvester company.
and Mr. Stanley declared that II in
Dictated that the giant steel corporation
and the harvester trust were practi-
cally one.
The Townsend report added that the
Mccormick Harvester company was
related by marriage to the great
American family of trusts the Stand
ard Oil company. II also referred to ].
Pierpont Morgan as the trust archi-
tect. good builder who receives fab.
ulous fees for his work.
In describing the organization of the
group OF larger companies In the
harvester combine, the McCormicks,
Doeling. Plano, Wardner, Bushnell.
Clessner and the Milwaukee Harvester
company. Mr.. Townsend reported to
Mr.. Bonaparte:
1T appears that there was an I'M
usual concentration of the capital
stock OF these five companies. II was
all owned and controlled by four fam.
lilies. the McCormicks. the Deerings.
the Joneses and the Glessners. The
pooling OF their holdings was all that
was necessary to create trust. All
these people lived in Chicago.
Another fact is interesting. Harold
Mccormick tone of the heavy stock
holders Of the Mccormick company
Is a son-in-law OF John d. Rockefeller.
The Mccormick company was there
core already distantly related by mar.
riage to the great American family OF
trusts. J. Pierpont Morgan is the trust
architect usually employed by the
Rockeiellers. He is good builder and
receives fabulous fees for his work.
George w. Perkins is his associate.
Therefore, IL harvester trust was
formed. we should anticipate some Of
the circumstances of its organization,
viz:
sit would be designed and executed
By j. Pierpont Morgan & Co. prob
ably through George w. Perkins.
'The amount OF the Zee charged
for such services would indicate the
character of the work.
1T would be organized in such a
way that TIE Rockefeller influences
could ultimately secure control"
OF the meeting in New York in
1902. when the combination was
launched, the report said:
George W. Perkins conducted the
negotiations and devised and executed
the plan-anally agreed upon He pro-
posed that the consolidation be con-
sammated. leaving the values of the
plants to be afterwards fixed by disin.
ierested appraisers. and that all of the
property to be turned into the con-
solidated company be Immediately
transferred to trustee. pending the
appraisements. After some further ne.
gotiations this suggestion was adopt
cd. the appraisers agreed upon. and all
of the other details adjusted.
The general plan was thar the five
companies be merged in a new cor
poration to he created for that pur-
pose. the stockholders of the merging
companies to be compensated by CAPT.
tai stock OF the new corporation to the
as determined by the appraisements."
Mr. Townsend in his report referred
particularly 10 the price paid to J.
Pierpont Morgan & Co. in the haryes.
ter deal. declaring: Five million dol
lars Is very high price for the sim.
pie sirvece OF suggesting to people
now they can agree in n legitimate
transaction II is not unusual. In illc-
gal transactions. such as creating a
trust. which can evade the laws.
Doubtless. IL proceedings were insti.
tuted against the International Har.
vesicr company. the manner Of its de
tense will demonstrate that the fee
was earned.
Attorney General Wickersham,
summoned as witness. testified that
lie had never seen the Townsend re-
port. He promised that Townsend
would testify later He did not know
why the Harvester case was not press
ed in 1908 90.
II surmised." he added. that the
case was held up pending the supreme
court decisions in the tobacco and the
Standard oil cases involving the same
unfote