New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-27
HARVESTER REPORT PUBLIC
Bonaparte To Be Asked to Elk
plain Inaction on Charges.

Washington. July 2e.-Burdette &. Town
sends report on the international Har-
vester Company and It's alleged relation To
the United States Steel Corporation was
made public to-day II was read into the
records OF the Congressional committee In
vestigating tho steel trade. Chairman
Stanley said Charles J. Bonspsrtc. for
merly Attorney General. would he asked
70 explain why no action was taken on
Townsend's charges.
Mr., Townsend report goes into the en-
tire history of the harvester companies in
volved and the organization OF the Inter-
nations. in 1902 the transaction being di-
rected and guided by ]. p. Morgan & Co.
The steel committee will call attention to
the forming Of the Steel Trust the year
before. A feature Of the Townsend report
which the steel inquirers lay stress on is
the following:
The International Harvester Company
sells to the foreign trade al cheaper price
than the domestic trade. II sells machines
Of all kinds for export delivered at New
York. at the same price for Whicn they are
sold TO domestic purchasers Z. o. D. Chl-
cago. This makes a difference OF from 81
TO SO for each machine.
7 was surprised TO learn that the Steel
Trust refunds To harvester companies - a
machinery exported. thus giving the same
result aS II the steel had been imported, the
import duty paid and afterwaro retunded
under the drawback law. indicating tnat
steel can proftably be produced IN this
country and sold al the foreign price. This
justices a small difference between the do
nestle and foreign prices, put IT would
amount TO only few cents Tor each ma
chine. and in no way explains the dlterence
indicated above.
ot,a
Of violations.
81 have learned" he SAID, of many al
legged dishonest acts of the International
Harvester Company, such as legislature
bri bnE. tax lodging, etc, some based on
apparently authentic information; some on
rumor'
Townsend particularly referred 10 the
price paid 70 J. 2 Morgan & 60. IN the
Harvester deal. saying 100000 is a very
righ price for the simple service Of sug-
EestnE 10 people how they can agree IN
a legitimate transaction. It is not unusual
in Illegal transactions such as creating a
trust which can evade the laws. Doubtless
If proceedings were instituted against the
International Harvester Company the
manner Of IT'S defence would demonstrate
that the fee was earned
In explaining the purchase BY the Inter
national Of u NJ. Osborne q Co. in 1913
for 100000 tho AUltman-Miller Company
for $4,000 in the same year, the Mime
A. polls Harvester Company for 100000 and
the keystone Company for $40 400. Towns
end reported:
The manner Of these purchases and the
use made of the property show tie pur-
pose Of the international Harvester COM
paay. Each of the purchases was made
secretly, in the name Of some Of its direc-
tors or stockholders, who held the stock
III trust for IT, The Osborne and Key
stone companies We're both operated for
some time ostensibly as Independent. com
peting plants the international Harvester
Company concealed It's ownership. Why
Was IL not because they We're conscious
that it's disclosure would give added tes-
timony Of their trust character and trust
methods
Again the Aultman-Niller Company and
the Minneapolis company were abandoned
immediately after purchase and the plants
dismantled The purchase OF these plants
could have been for no other purpose than
a. destroy competition. One million four
hundred thousand dollars was expended
To- acquire plants which IL did not intend
20 use but simply 70 destroy.
Bear in mind that I'm all Of these in
stances ends the report, all patent
rights were acquired and are still retained
BY the International Harvester COMPANY