Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-04-25

HERBERT KNOX SMITH,
In the matter OF the harvester trust
course to follow was made after full
cabinet discussion, with the agreement
OF every member OF the cabinet. which
at that time included Mr.. Taft himself"
The correspondence sent to the Senate
yesterday follows:
Roosevelt to Bonaparte.
Oyster Bay. n. Y, August %, 1907.
MY Dear Mr.. Attorney General: Mr..
George W. Perkins of the International
Harvester Company has just called upon
me and submitted to me certain papers,
Of which I inclose copies. According to
these papers and to Mr.. Perkins state
ment it would appear that the harvester
company has repeatedly, on its own mi
tiative, asked that its business be investi-
gated by the Department Of Commerce
and Labor through the commissioner Of
corporations; that three years ago the
interstate commerce commission decided
that 1t had accepted what amounted SUBJ
stantfally to rebates; that Mr.. Moody. the
then Attorney General, was about to take
action on this report, but the harvester
company at once promised to rectify the
practices and see that nothing contrary
to the ruling of the commission was
again done. This was satisfactory to the
Attorney General, and the suit was
dropped.
The harvester company says it is in
position to prove that it had lived up to
this agreement made in May. 1904. The
harvester company advances this as
proof that if any illegal action is pointed
out 1t will itself rectify the matter on its
being pointed out. 1t further appears
that last December Senator Hansbrough
got the Senate to pass a resolution di-
rectfng the Department OF Commerce and
LABOR to make an early investigation
INTO the character and operation and eff
feet upon interstate commerce Of the In
ternational Harvester Company, and that
In January last Messrs Garfield and
smith met various representatives of the
harvester company i'll New York. and a
conclusion was reached that the depart
speedily as possible, which conclusion
was announced publicly in the press
March Commissioner Smith no
tined the harvester company that the
INQUIRY would be into the incorpora-
ton value of its proper securities and
the general management Of it's bust
ness IT appears by his letter OF Au-
gust 3 that Commissioner Smith has
begun the investigation. but has not
made such progress with it as he
would like to, on account Of his being
crowded with work. Mr. Perkins re-
quest to me is that before the COM
pany is exposed to the certain loss and
damage that the mere institution Of a
suit would entail this investigation by
MI: smith, as required by Senate reso-
luton. should be carried to completion.
He explicitly states to me that there
would be no intention to plead the ex-
ANIMATION by the Department Of Com
merce and Labor as comforting any
immunity from proceedings by the De-
partm !, Of Justice.
VIII you see Mr.. Perkins and Com
full and report to me thereon?
Piease do not file the suit until
hear from you. Sincerely yours
err, THEODORE ROOSEVELT"
General. Hotel Aspinwali, Lenox,
MASS Enclosures
Smith to Roosevelt.
department of Commerce and
LABOR Bureau Of Corporations,
September q, 1907.
TO the President. Oyster Bay, N. Y.
Sir: In pursuance of my letter OF
August 30. 1907, / take the liberty Of
submitting for your consideration a
memorandum in regard to the proposed
ACTON or the Department Of Justice for
the prosecution Of the International
harvester Company under the Sherman
law. feel that 1t is only proper that
should state my objections to such
proposed action, because of the bearing
tnat II mas on the work of this bureau,
ana. stu more important, on the en-
tire policy Of the administration as I
understand that policy.
on August "a. 1907. by direction of
the President. I met Mr.. George w.
Perkins. chairman Of the finance COM
mtttee OF the International Harvester
Company. and discussed the matter
with him.
ITO the extent of my present knowl-
edge, am satisfied that the facts are as
the single exception that / do not have
definite knowledge as to the nature Of the
case now In the hands Of the Department
OF Justice. but. from the expressions of
lieve that 1t Is as Mr.. Perkins stated, a
purely technical legal question AS to the
principle Of fair dealing and good policy
involved. also concur emphatically with
the attitude Of the company
Furthermore, the attitude Of the Nor
gan interests generally. which control
this company, has been one of active CO.
operation.
I'm the investigation Of the steel indus
try the United States Steel Corporation
has already spent thousands Of dollars in
compiling for the bureau the most COM
plete and intimate information as to the
business, and its officers have gone to
immense trouble and loss of time to facil-
itate In every way our work.
while a certain amount Of work has
been done on the investigation of the
harvester company by this bureau, It has
reached only q very preliminary stage
first. because OF the lack Of men to under
take the work, and. second, because OF
the intimation that had reached me from
time to time since the beginning Of this
year to the effect that the Department
OF Justice would probably commence a
suit against the company, under the
Sherman Law. and felt, for the reasons
indicated below, that until this matter
was, settled one way or the other 1t was
neither fair nor expedient that the inves-
tieatton of this bureau should continue.
Plea Of Mr.. Perkins.
Ia my interview Of August "a with
Mr.. Perkins he set forth q number Of
considerations which seemed to me Of
great weight. He stated that his COM
pany had endeavored to obey the law in
every respect. and had carefully put it
self in line with the policy Of the admin
istration; that the interests he represent
ed. including not only the International
Harvester Company, but also the far
reaching Morgan interests generally, had
originally favored the creation Of the
bureau Of corporations. and the policy Of
the President. which that bureau repre-
scented. and that both in their attitude
toward the bureau and In their conduct
and management of their various con-
Germs. including the United States
Steel Corporation, they had adopted a
similar policy OF frankness and pub
| licity; that. SO far as he was aware,
| they had not been guilty Of any
violation Of the law. certainly none in
volving a moral consideration: that. as
he phrased 1t, he was now being laughed
n In NAvy Work nv tho I'd