Daily Kennebec journal., 1911-07-27
Tells Steel Investigators
OF Townsend Report.
Declares He Never Before Saw
WeIghfy Stanley Document.
Sen. Kenyon TesiIfles Regarding
Harvester Co. Rebates.

washington, July 26.-Attorney Cen
eral Wickersham appeared before the
Stanley steel Trust" investigating
committee today, to tell what he knew
about a report made to Former At
torney General Bonaparte by Burdette
Townsend special agent of the de-
partment of justice in 1908 in which
the latter urged that the International
Harvester Co. had operated in viola
ton of the Sherman antitrust act.
The attorney general. when shown
copy of the voluminous document by
Rep. Stanley. said he never saw it he
fore. though since he had been head
of the department of justice ne had
heard rumors that there was an in
vestigation of the Harvester combine.
Sen. Kenyon of Iowa, former assistant
to the attorney general when summon
ed before the committee for the same
purpose. and he advised further in
vestigation before any prosecution was
undertaken under the report.
The matter was injected into the
steel inquiry because the report
charges that the Steel Corporation pays
rebate of So a ton to harvester COM
panies on steel purchased and because
the committee has information that
there is an arrangement between the
two giant corporations whereby the
Harvester Co. but exclusively from the
Steel Corporation.
Despite protests by the steel corpor-
atoms counsel that inquiry into the
International Harvester Co. was apart
from the inquiry directed by Congress.
Chairman Stanley insisted that ii was
essential and he had information tend
ing to show that the Harvester and
Steel Corporations were practically tine
same. Attorney General Wfckersham
agreed TO have Mr.. Townsend. who is
still in the service of the department.
appear before the committee at a later
date
I'VE will have Mr. Carnegie before
US in October said Chairman Stanley
and perhaps you could arrange to
have Mr.. Townsend here about that
time"
The attorney general said that it
would be possible to do so.
DO YOU know of any reason" Chair
man Stanley asked. why this Har-
vester Company Investigate ton was not
acted upon by the department of JUS
tice prior to the time you assumed
charge of the department %
do not know" Mr. Wfckersham
fephed. Il surmise-this is only a sur
mise-that the case was delayed pend
ing decision by the supreme court
in the Standard Oil and Tobacco cases
1t was not considered desirable to
press these cases until a decision of
the supreme court was received and
IN this case l think many of the same
points were involved"
The steel committee left tonight for
New York where the investigation will
be resumed tomorrow Further inquiry
into the absorption of the Tennessee
Coal and Iron Co by the Steel Corpo
ration will be taken up early and in
this the testimony of ex-President
Theodore Roosevelt may be sought.
Mr.. Kenyon identified report by
Burdette Townsend to the department
OF justice on Mr.. Townsend's inves-
tigation of the International Harves-
ter Co
Mr.. Kenyon said he recalled tha,
investigation.
But what is troubling me- he add
ed. lis that / am not now connected
with the department of justice. and
whatever ] may say might embarrass
the government on what may be now
going on
Chairman Stanley said he had evil
dence tending to show that the Har-
vester Co. and Steel Corporation are
practically one
"The report" he added. Charges
that the Steel Corporation gave the
Harvester companies rebates of So a
ton"
Kenyon amid objections by Repub-
lican members of the committee spoke
up saying:
Il wish to say that I always fa-
vored prosecutions in trust cases
where evidence was conclusive. Where
evidence was not conclusive. IA
vored further investigation made"
Commissioner of Corporations Smith
testified that he did not recall any
instructions from the President to in
vestigate the International Harvester
Co.