The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-07-26
1T PAYS REBATES.
The Steel Trust Refunds to the
Harvester Trust
Three Dollars a Ton on Steel
Used in Exported Goods.
ARE CLOSELY ALLIED.
Two Lists of Directors Are Al
most Identical.
The Facts We're Laid Before
BOneparte in 1908.
ARE CLOSELY ALLIED.

steel trust investigating committee to-
day. It was a report by Burdette
Townsend to former Attorney General
Bonaparte during the Roosevelt admin
istration on the International Harvester
company the so-called trust.
The report showed that the United
States steel corporation allowed re-
bates of So a ton to the Harvester COM
pany. and Mr.. Stanley declared that it
indicated that the giant steel corpora
tion and the harvester trust were prac-
tically one.
The Townsend report added that the
Mccormick Harvester company was
related by marriage to the greatest
American family of trusts" the stand
ard Oil company. 1t also referred to
J. Pierpont Morgan as the trust arch
itect, a good builder who receives fab
ulous fees for his work"
Attorney General Wickersham. sum
mOned as a witness this afternoon, tes-
titled that he had never seen the
Townsend report until today. He prom
ised that Townsend would testify later
He did not know why the harvester
case was not pressed in 1908-09. 1 sur
missed he added, that the case was
held up pending the supreme court de-
cisions in the Tobacco and Standard
Oil cases involving the same points
Mr.. Stanley announced that a sub
pOena had been issued for Mr. Bona
parte, who is now in Canada and that
an effort would be made to ascertain
from him and from other government
officials why there never was any pros
ccution of the International Harvester
company upon Townsend's s charges. Mr..
Stanley also announced his intention
of endeavoring to show a close connec-
tlOn between the United States Steel
corporation and the International Har-
Nester company. and as basis Tor
future inquiry he had read into the
Al tors rnf
both corporations. the same being iden-
teal in many instance s.
Mr.. ToWnsends report was eXhaus-
tive going into the entire history OF
the harvester companies involved ana
the organization of the international
i'm 1902 the transaction being directed
and guided by J. P Morgan & CO. The
steel committee will call attention to
the forming of the steel trust the year
before
woich the steel inquiries lay stress
upon, is the following;
sells Cheaper Abroad.
THE International Harvester COM
pany sells to the foreign trade at a
cheaper price than to the domestic
trade. 1t sells machines of all kinds
for export, delivered at New York, at
the same price which they are sold to
domestic purchasers for at Chicago.
This makes a difference of from Sc to
$40 per machine
7 was surprised to learn While in
Vestigating this subject, that the steel
trust refunds to harvester companies
So per ton for all steel used in the
manufacture Of machinery exported,
thus giving tee same result as if the
steel had been imported the import
duty paid and afterwards refunded un-
der the drawback law; indicating that
steel can be prOftably produced in this
country and sold at the foreign price.
T@~x4r
the domestic and foreign prices, but it
would amount to only a few cents for
each machine, and in no way explains
the difference indicated above"
Mr.. Townsend detailed many other
charges of violations.
II have learned he said. "of many
alleged dishonest acts of the Interna-
tional Harvester company, such as leg
islation bribing. tax lodging, etc. some
based on APPARENTLY authentic informa-
ton, some on rumOr."
These matters he submitted to enable
the attorney general to determine
whether there has been violation of the
antitrust law.
In my judgment" the report con-
cluded. the facts concerning the or
sanitation of the International Har-
vester company constitute a violation
OF the antitrust law
Paid Big Prices.
A1r. Townsend. in his report, particu-
1arly referred to the price paid to J.
l7ierpont Morgan G Co, in the harvester
deal, declaring that "5.0000OO is very
high price for the simple service Of
suggesting to people how they can
agree in "A legitimate transaction. It
is not unusual he said. 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 its defense Will demonstrate
that the fee was earned"
In explaining the purchase of the In
ternational of D. NJ Osborne & Co in
1908 for "a 600 900. the Aultma Miller &.
Co. for S7OO.O0 in the same year, the
Minneapolis Harvester company for
$780, 600 and the keystone company for
$46O.000 Investigator Townsend re-
ported:
THE manner of these purchases and
the use made of the property show the
purpose of the international Harvester
company Each of the purchases was
made secretly. in the name of some of
its directors or stockholders. who held
the stock in trust for it. The Osborne
and keystone companies were both
operated for some time, 0stensibly as
independent. competing plants. The
International Harvester company con-
cealed its own ership- Why2 Was it
not because they were conscious that
its disclosure would give added tes-
timOny of their trust character and
trust methods
Again, the Aultna i Miller and
Company and the Minneapolis COM
pany were both abandoned immediate
~ after purchase and the plants dis
mantled. The purchase of these plants
could have been for no other purpose
than to destroy competition. One mill