Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-07-26
SAYS TRUST GAVE
REBATE ON STEEL
Harvester Company Benefited
to Extent of SO Ton, States
Townsend Report.
ASSERTS CORPORATIONS
ARE PRACTICALLY ONE
Chairman Stanley of House Probing
Committee So Declares.
6ENATOR KENYON ON STAND
Recalls Investigation. But Would
Not Embarrass Government.
Wickersham Sub
poenaed.
Chairman Stanley of House Probing
Committee So Declares.
SENATOR KENYON ON STAND

United States Senator Kenyon of Iowa
CORNER assistant attorney general, ano
Herbert Knox Smith, commissioner oil
Preparations, testified before the House
steel trust" investigating committee to-
bay. Mr.. Kenyon identified report by
Burdette Townsend to the Department OF
Tustice on Mr.. Townsend's investigation
of the International Harvester Company
Mr.. Kenyon said he recalled that IN
vestiga ton. bat what is troubling me Is
that / am not connected now with the
Department Of Justice, and whatever
may say might embarrass the govern
meHt on what may be now going on. y
Asked If he believed the Townsend report
conclusive Mr.. Kenyon said he felt there
should be some further Investigation
made.
Attorney General Wickersham was
eubponaed TO appear before the commit
toe late today TO identify the Townsend
report and to testify concerning the In
ternational Harvester Company.
Chairman Stanley said he had evidence
tending to show that the harvester
company and steel corporation are prac-
ticalYy one This report" he added.
charges that the steel corporation gave
ton.
Senator Kenyon, amid objections by re-
publican members of the COMMITTEES.
spoke up. saying: Il wish to say that L
always favored prosecutions in trust
cases where evidence was conclusive.
Where evidence was not conclusive L IA
vored further investigation
Commissioner of Corporations Smith
testified that he did not recall any in
structions from the President to investi-
ttn In HorEaSfar Conn
pany. THE Department of Comerce and
Labor proceeded in response TO a Sem
ate resolution by Senator HanSbrough or
Senator Kittredge,' he said.
Charges Made to Bonaparte.
That charges were made to former At
torney General Charles J. Bonaparte
during his term of Office that the steel
corporate gave refunds of So per ton
TO the harvester combine companies was
revealed today to the investigating COM
mittee. Representative Stanley of Ken
tucky chairman of the committee. in
troduced in the proceedings a voluminoCs
COPY of a report on the harvester trust
made to Mr.. Bonaparte in lSoS by Bur-
dette c.. Townsend, special investigator
of the department, now assistant district
attorney of Oregon.
Mr. Stanley announced that a subpoena
had been issued for Mr.. Bonaparte. who
II now in Canada, and that an effort
would be made to ascertain from him and
from other government officials why there
never was any prosecution OF the Inter-
national Harvester Company upon Town
sends charges. Mr.. Stanley also an
Dounced his intention of endeavoring to
show a close connection between the
United States Steel Corporation and the
International Harvester Company. and as
q basis for future inquiry he had read
into the record the names of the directors
Of both corporations. the same being
identical in many instances
Mr. Townsend report was exhaustive,
going into the entire history of the har-
vester companies involved and the or
sanitation of the lnterna tional in 1862.
the transaction being directed and guided
by ]. Pierpont Morgan a. Co. The steel
committee Will call attention to the
forming OF the steel trust the year before.
Sells Cheaper Abroad.
feature of the Townsend report
which the steel inquirers lay stress upon
Is the following:
The international Harvester Company
sells TO the foreign trade at a cheaper
price than the domestic trade. 1t sells
machines of all kinds for export deliv-
cred at New York at the same price for
which they are sold to domestic pur-
cna strs. (. a. b. Chicago. This makes a
difference OF from s6 To $40 per machine
Il was surprised 10 learn while investi-
eating this subject, that the steel trust
refunds TO harvester companies S5 per ton
for all steel used in the manufacture of
machinery exported, thus giving the same
result as If the steel had been imported,
the import duty paid and afterward re-
funded under the drawback law; indicat-
ing that steel can be profitably produced
In this country and sold at the foreign
price. This justifies small difference be-
tween the domestic and foreign prices
but II would amount to only few cents
! for each machine. and in no way explains
the difference indicated above"
Mr.. Townsend detailed many other
charges OF violations. Il have learned. "
| he said, "many alleged dishonest acts
| OF the international Harvester Company
! such as legislature-bribing, tax-dodging
etc, some based on apparently authentic
fnrormation, some on rumOr.
These matters he submitted to able
the attorney general TO determine whether
there had been violation of the anti
trust law.
In my Judgment" tie report con.
ci0ded. "the facts concerning the organi
zation of the International Harvester
Company constitute violation oe ths
antitrust Law