Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1911-07-29
HARVESTER TRUST
CHARGES IGNORED
Old Probe comes to Light, Involving
Big Interests and Showing Work
of Rockefetler and MORGAN

of Rockefeller and Morgan.
washington, July 27.--Another doc
nment Of sensational interest. equal to
the Steel Plate association agreement
recently produced. was laid before the
Stanley steel trust investigating com
mittee.
This was a report by Burdette Town.
send to former Attorney General Bo-
naparte, during the Roosevelt admin
istration, on the International Har.
yester 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 it 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. 1t also referred to J.
Pierpont Morgan as the trust arehi-
ulous fees for his work"
In describing the organization OF the
group of larger companies in the
harvester combine. the McCormicks,
Deering, Plano, Wardner. Bushnell.
Glessner and the Milwaukee Harvester
company, Mr.. Townsend reported to
Mr.. Bonaparte:
ut appears that there was an un-
usual concentration of the capital
stock of these FIVE companies. 1t 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 zone of cne heavy stock
holders of the Mccormick company
| is a son-in-law OF John d. Rockefeller.
The Mccormick company was there
fore already distantly related by mar
riage to the great American family OF
trusts. J. Pierpont Morgan is the trust
architect usually employed by the
Rockefellers. He is good builder and
receives fabulous fees for his work.
George W. Perkins is his associate.
Saw Hand OF Morgsn.
Therefore, IL harvester trust was
formed, we should anticipate some OF
the circumstances of its organization.
viz: 49,, :, i. y.
at would be designed and executed
by j. Pierpont Morgan & Co. prob
ably through George w. Perkins.
THE amount of the fee charged
for such services would indicate the
character of the work
1T would be organized In such a
way that the 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 finally agreed upon. He pro
posed that the consolidation be con-
summated. leaving the values of the
plants to be afterwards fixed by disin-
terested appraisers, and that all of the
property TO be turned into the con-
solidated company be Immediately
transferred TO a trustee, pending the
appraisements, After some further me-
gotiatl0ns this suggestion was adopt
ed, the appraisers agreed upon, and all
OF the other details adjusted
"The general plan was that the five
companies be merged in a new cor
poration to be created for that pur-
pose, the stockholders OF the merging
companies to be compensated by CAPT
tai stock of the new corporation to the
amount of their respective interests
as determined by the appraisements
Mr.. Townsend in his report referred
particularly 10 the price paid to j.
Pierpont Morgan & Co in the harves.
ter deal, declaring Five million dor
lars Is very high price for the SIM
pie sirvece of suggesting to people
how they can agree in legitimate
transaction. Ii is not unusual. In iile-
gal transactions. such as creating q
trust. which can evade the laws.
Doubtless. II proceedings we're insti-
tuted against the International Har
vester company. the manner Of its de
Tense VIAL demonstrate that the fee
was earned
Attorney General Wtckersham,
summoned as witness, testified that
he 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 10000
II surmised." he added, "that the
case was held up pending the supreme
court decisions In the tobacco and the
Standard Oil GASES Involving the same
nhintnss