Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-07-27
COMPANIES CLOSELY RELATED
All Harvester Stock Originally
Owned by Four Families.
REPORT QUITE SENSATIONAL
Made to Bonaparte, and Wickersham
Says He Never Saw 1t.
COMMITTEE IS ASKING QUESTIONS
IL Issues Subpoena for Former
Attorney General, who is Now I'm
Canada-Kenyon and smith
Testify.

WASHINGTON, July 26-Another docu-
ment Of sensational interest equal to the
/ Steel Plate association agreement recently
produced, was laid before the Stanley steel
trust investigating committee today. 1t
was report by Burdette Townsend, as
sistapt, to former Attorney General Bona
parte during the Roosevelt administration
on the International Harvester company,
the so-called trust
The report showed that the United States
Steel corporation allowed rebates of So
ton to the Harvester company, and Mr..
! Stanley declared that 1t indicated that the
giant steel corporation and the harvester
trust were practically one
! The Townsend report added that the Nc
Cormick Harvester company was related
by marriage to the great American family
of trusts the Standard Oil company. 1t
also referred to ]. Pierpont Morgan as the
! trust architect, a good builder who re-
ceives fabulous fees for his work"
Attorney General Wickersham summoned
as witness this afternoon, testified that
he had never seen the Townsend report
until today. He promised that Townsend
would testify later. He did not know why
the harvester case was not pressed in 1905
1909
Il surmised,' he added, that the case
was held up pending the supreme court
decisions in the tobacco and Standard
Oil cases involving the same points"
Attorney General Wickersham was ex-
cused after testifying that he thought the
harvester report antedated the Standard
OIL 10 oh,
his files and produce it IL there be a cer-
titled copy of the harvester report.
In describing the organization of the
group of larger companies in the har-
Svester combine, the McCormicks. Deering,
Plano, Wardner. Bushnell, Glessner and
the Milwaukee Harvester companies, Mr..
Townsend reported to Mr.. Bonaparte:
Family of Trusts.
ut appears that there was an unusual
concentration OIL the capital stock of these
five companies. 1t was all owned
and controlled by four families, the Nc
Cormicks. the Deerings, the Joneses and the
Glessners. The pooling of their holdings
was all that was necessary to create a
trust. All these people lived in Chicago.
Another fact is interesting. Harold Nc
Cormick Zone of the heavy stockholders Of
the Mccormick company is a son-in-law
of ]. d. Rockefeller. The Mccormick COM
pany was, therefore. already distantly re-
lated by marriage TO the great American
family of trusts. ]. Pierpont Morgan is the
trust architect usually employed by the
Rockefellers. He is a good builder and
receives fabulous fees for his work. George
w. Perkins is his associate.
Therefore, If a harvester trust was
formed. we should anticipate some circum-
stances OF its organization, viz:
1T would be designed and executed by
~. Pterpont Morgan & Co., probably
through George w. Perkins.
THE amount of the fee charged for such
services would indicate the character Of
the work.
1T would be organized in such a way
that the Rockefeller influences could ulti-
mately secure control"
Perkins Devises Plan.
! or the meeting in New York in 1909
when the combination was launched the
report said:
George W. Perkins conducted the ne
gotiations and devised and executed the
plan finally agreed on. He proposed that
the consolidation be consummated, leav-
ing the values of the plants to be after
wards fixed by disinterested appraisers
and that all of the property to be turned
into the consolidated company be imme-
diatey transferred TO a trustee pending
the eRppraisements. After some further
negotiations this suggestion was adopted,
the appraisers agreed upon and all of
the other details adjusted.
THE general plan was that the five
companies be merged into q new corpora
tion to be created for that purpose, the
stockholders of the merging corporations
to be compensated by the capital stock
of the new corporation to the amount OF
their respective interests as determined by
the appraisements."
Kenyon and smith Testify.
United States Senator Kenyon of Iowa,
former assistant attorney general. and
Herbert Knox Smith, commissioner of
corporations, also testified today
Mr.. Kenyon identified the Townsend re-
port to the Department of Justice on the
international Harvester company
Mr.. Kenyon said he recalled that in
vestigation.
But what is troubling me-" he added
rs that am not now connected with
the department OF justice and whatever
may say might embarrass the govern
ment on what may be now going on"
Chairman Stanley said he had evidence
harvester
company and steel corporation are prac-
tically one"
This report" he added. charges that
the steel corporation gave the harvester
company rebates Of 50 a ton"
Senator Kenyon said:
II wish TO say that l always favored
prosecutions in trust cases where evidence
was conclusive Where evidence was not
conclusive l favored further investiga-
ton"
Asked II he believed the Townsend re-
port conclusive, Mr.. Kenyon said he felt
there should be some further investiga-
tiOn made.
Commissioner Of Corporations Smith tes-
titled that he did not recall any in
structions from the president 10 investi-
gate the International Harvester company
The Department OF Commerce and Labor
proceeded in response 10 a senate resolu-
Continued on Eighth Page)