The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-07-27
Harvester co m p any
Benefited to Extent
of So Ten
NO ACTION ON
TOW NSEND REPORT
Asserts That Corporations Are
Pra cite ally One-Attorney-
General Wickersham Never
Saw Findings-Bonaparte
Will Be Asked Why He
Did Not Prosecute.

Wy aShlngton, July 26.-Attorney-
General Wicxersham appeared befor.
the stanley steel Trust" investigating
committee to-day 10 tell what hs
knew concerning a report made to
former Acknowledgement Bonaparte by
Burdette Townsend. special agent o.:
the department in 1908. in which the
latter urged that the international
Harvester Company had operated in
violation OF the Sherman antitrust
act. The Attorney General, when shown
a copy of the volunninous document by
Representative Stanley said he never
had seen II before. though since no
had been head OF the Department Of
Justice he had heard rumors that there
had been an investigation of the Har-
vester combine.
Senator Kenyon. Of Iowa, former as
histant to the Attorney-General, sum-
moned before the committee for same
purpose. said he had advised further
investigation before any prosecution
was undertaken under the report
Commissioner Herbert Knox smith, Of
the Bureau OF Corporations. which is
now Investigating the International
Harvester Company. also had heard OF
the report.
Rebnte of So Ton.
The matter was injected into the
steel inquiry because the report
charges that the steel corporation pays
companies on steel purchased. and be-
cause the committee has notification
that there is an agreement between
the two giant corporations whereby
the harvester companies buy eAclu-
sively from the steel corporation.
The Commissioner of Corporations
was required 10 intercece with the
President on behalf OF the committee
TO see II information regarding the
present in the hands OF the bureau
could not ne placed at the committees
disposal.
Richard Lindabury. counsel for the
United states Steel Corpora ton. offered
TO furnish all the information of the
records OF his corporation bearing on
the points at issue.
Despite protests from the Steel Cor
poration counsel that the international
Harvester line OF inquiry was apart
Chairman Stanley insisted that it was
essential. and he declared he had in
forniat ton tending to show that the
Harvester and Steel Corporations We're
Wickersham agreed to have Mr.. Town
send, who is still in the service of
the department. appear before the COM
mittee at a later date.
I'VE will have Mr.. Carnegie before
us in October" said Chairman Stanley,
and perhaps you could arrange 20
have Mr. Townsend here about that
The Attorney-General said that It
would be possible to do SO.
DO you know OF any reason" Chair
er Company investigation was not act
ed upon by the Department of Justice
prior to the time you assumed charge
of the department.?
Supreme Court Decision.
"I do not know" AR Wickersham
mise-that the case was delayed pend
ing a decision by the Supreme Court
in the Standard OIL and Tobacco cases
II was not considered desirable 10
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"
subpoena had been issued for Mr.. Bon
aparte, who is now in Canada, to as
certain from him why the International
Harvester Company was not prosecuted
upon Townsend charges.
Mr.. Townsend. in his report. stated
that the International Harvester Com
pany was organized in 1902. the trans
action being directed and guided by
J; rierpont Morgan & Co. The report
pany was related by marriage to the
great American family OF trusts" the
Standard Oil Company. 1t also re-
ferred to ]. Pierpont Morgan as the
trust architect, good builder, who
received fabulous fees for his work"
The report particularly referred to
the price paid to j. Pierpont Nor
gan & Co. in the Harvester deal. de-
claring that s5,Ooo000 is a very high
price for the simple service OF sug-
costing to people how they can agree
in a legitimate transaction.
ut is not unusual" he said. 'in IL
legal transactions, such as creating a
trust, which can eXade the laws.
Doubtless II proceedings were insti-
tuted against the International Har-
vester Company. the manner of its
defense will demonstrate that the fee
was earned"
The steel committee left tonight
for New York. where the investiga-
ton will be resumed Tomorrow.