Omaha daily bee., 1911-07-27

companies involved and the organization
of the International in 1902, the transaction
being directed and guided by ]. p. Morgan
& Co. The steel committee will call atten-
ton to the forming of the steel trust the
year before.
Harvester Selling Prices.
A feature of the Townsend report which
the steel inqurers lay stress upon is the
following:
The International Harvester company
sells to the foreign trade at a cheaper
price than the domestic trade 1t sells
machines of all kinds e.. export, deliv-
cred at New York. at the same price for
which they are sold TO domestic pur-
chasers Z. o. b. Chicago. This makes a
difference of from So to $40 per machine
Il was surprised TO learn while investi-
eating this subject that the Street trust
refunds to harvester companies So per ton
for all steel used in the manufacture of
machinery exported, thus giving the same
result as IL the steel had been imported
the import duty paid and afterward re-
funded under the drawback law, indicating
that steel can be profitably produced in
this country and sold at the foreign price.
1t justifies a small difference between the
domestic and foreign prices, but it would
amount to only a few cents for each ma
chine, and in no way explains the differ
ence indicated above"
Mr.. Townsend detailed many other
charges of violations.
Il have learned" he said. "of many al
legged dishonest acts OF the International
Harvester company, such as legislature
bribing. tax lodging. etc, some based on
apparently authentic information, some on
rumor."
These matters he submitted to enable the
attorney general to determine whether
there has been violations of the anti
trust law
I'm my Judgment" the report concluded.
the facts concerning the organization of
the International Harvester company con-
stitute violation OF the antitrust law"
MOrgan's Fees Are High.
Mr.. Townsend In his report particularly
referred to the price paid to j. Pierpont
Morgan and company in the harvester
deal declaring that 100000 is a very
high price for the simple service of sug-
costing to people how they can agree in
legitimate transaction. 1t is not I'M
usual" he said, lin illegal transactions
such as creating trust which can evade
the laws. Doubtless IL proceedings were
instituted against the International Har-
vester company the manner Of its defense
viii demonstrate that the fee was earned d"
In explaining the purchase by the In
ternadonal OF the ID. NJ. Osborne & Com
pany in 1903 for 100000, the Aultman-
Miller & Company for 100000 in the same
years, the Minneapolis Harvester COM
pany 100000 and the Keystone company
for 100000. Investigator Townsend re-
ported:
The manner OF these purchases and the
use made OF the property show the pur-
pose OF the International Harvester com
pany. Each OF the purchases was made
secretly, in the name of some Of it's d.
rectors or stockholders who held the stock
in trust for IT, The Osborne and keystone
companies were both operated for some
time ostensibly as independent Compel
ing plants; the International Harvester
company concealed its ownership Why?
Was 1t not because they were conscious
that its disclosure would give added testi-
mony of their trust character and trust
methodist"
Again the Aultman-M Miller & Go.
and the Minneapolis company were both
abandoned Immediately after purchase and
the plants dismantled The purchase of
the plants could have been for no other
purpose than TO destroy competition; 81
100000 was expended to acquire plants
which it did not intend to use but simply
destroy.
Bear in mind that in all Of these in
stances all patent rights were acquired
and are still retained by the International
Harvester company"
The steel trust" investigating commit
tee adjourned late today to meet at the
city hall in New York tomorrow morning.
1t probably will take up the Tennessee
Coal & Iron company case first.