The Birmingham age-herald., 1911-07-27
Another Sensation Sprung By Townsend Report on
 Harvester Companies
CHARGES s PER TON
 REBATE RECEIVED
fommittce Goes to New York Today to Further Investigate T. C. l. Acquisition and Roosevelt
 May Be Summoned

Washington, July 2s.-Attorney General FWickersham appeared before the Stanley E'.steel trust" Investigating committee to- Hay to tell what he knew concerning re- tport made to former Attorney General tBonaparte by Burdette Townsend, a spe- lcial agent of the department in 1908, in (which the latter said the International taIarvester company had operated in vio- Aation of the Sherman antitrust act.
 The Attorney General, when shown a scopy of the vouminous document by Rep kresentatfve Stanley, said he never had sseen it before, though since he had been Ehead of the departmnt of justic he had heard rumors that there had been an in- tvestigation of the Harvester combine.
 Senator Kenyon of Iowa, former as- rsstant to the Attorney General, sum- tmoned before the committee for the same purpose, said he had advised further in Iyestisation before any prosecution was undertaken under the report. Commits keoner Herbert Knox Smith of the bureau of corporations, which is now investigat- ling the International Harvester company salSO mad nedfQ or Ine TepOFl
 The matter was injected into the steel dnquiry because the report charges that the Steel corporation pays a rebate of Sl 6 ton to harvester companies on\ steel purchased and because the committee has Information that there is an arrangement between the two giant corporations whereby the Harvester. companies buy exclusively from the Steel corporation.
 The commissioner of corporations was requested to intercede with the Pres- dent on behalf Of the committee to see If information regarding the relations of the two corporations, at present in the hands of the bureau, could not be placed at the committees disposal Richard Linda bury, counsel for the United States Steel corporation offered to furnish all the in- formation of the records of his corpora tion bearing on the points at issue
 Corporation Counsel Objects
 Despite protests from the Steel eoepor- ation counsel that the International liar vcster line of inquiry was apart from the inquiry directed by Congress. Chair man Stanley insisted that 1t was essen tial and lie declared he had information tending to show that the Harvester and Steel corporations were practically the same. Attorney General Wickershaln agreed to have MT. Townsen1, who Is still in the service of the department, ap- Tear before the committee.
 We will have Mir Carnegie before Is in October" said Chairman Stanley, and perhaps you could arrange to have MT. Townsend about that time.''
 The attorney general said 1t would be possible to do so
 Do you know of any reason,' Chair man Stanley asked, why this Harvester company investigation was not acted upon by the department of justice prior ta the time you assumed charge of the oepartment?'
 T do not know Mr.. Wickersham re- piled. .I surmse-this is only a surmise that the case was delayed pending a decision by the supreme court in the Standard Oil and tobacco cases. It was Tot considered desirable to press these cases until decision of the supreme court was received, and in this case 1 think many of the same points were in volved'
 May Summon Roosevelt
 The steel committee left tonight for New York, where the investigation will he resumed tomorrow, the hearings tu be held in the council chamber of the city hall The first witness to be called. 1n New York probably will be Richard Trimble, secretary of the United States Steel corporation. Scores of subpoenas for witnesses have been issued. Further inquiry into the absorption of the Ten 1iessee Coal and Iron company by the Steel corporation will be taken up early and in this the testimony of former President Theodore Roosevelt may be sought.
 The Townsend report added that the Mccormick Harvester company was 're- , lated by marriage to the great American family of trusts,'' the Standard Oil com pany. 1t also referred to J, P. Morgan as the trust architect good builder who receives fabulous fees for his work. - In describing the organization of the larger companies of the Harvester com tlne, the McCormicks, Deering. Plano, Ardner, Bushnell Glessner and the Mi1 waukee Harvester companies, MT. Town send reported to Mir Bonaparte:
 it appears there was an unusual con- centration of the capitol stock of these five companies. It was all owned and controlled by four families, the McCor- micks, the Deerings the Joneses and the Glessners The pooling of their hold- ings was all that was necessary to create trust. All these people lived in Chi cago.
 Another fact is interesting, Harold Me- Cormick. one of the heavy stockholders Of the Mccormick company is son-in-
  Cormici company was therefore already distantly related to the great American family. of trusts. J. P. Morgan is the trust architect usually employed by the Rockefellers. He is good builder and receives fabulous fees for his work. George w. Perkins is his associate.
 The general plan was that the five companies be merged in new corpora ton to be created for that purpose. the stockholders of the merging companies to be compensated by capital stock of the new corporatonu to the amount of their respective interests as determined by the appraisements."
 Smith Testifies
 Chairman Stanley asked Commissioner Smith if his completed report of the Steel corporation affairs showed that an agreement was entered into in January. 1907, between the Steel corporation and the Harvester company, whereby the lat- ter company bound itself to buy all iron and steel which 1t does not manufactrre itself and to make no enlargements of its steel and iron plants or to agree not to purchase from the Lackawanna and other independent steel corporations. Mr. Smith said he could not disclose any, thing that is not yet published in his re- ports.
 Counsel Lindabury offered to submit