New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-01-10
4 BIG TRUST ABANDONED.
FAILURE TO ORGANIZE THE AMERICAN
HARVESTER COMPANY.
ANTITRUST LAWS IN NEw.YoRK AND ILLINOIS
PARTLY THE CAUSE-A STATEMENT FROM
PRESIDENT M'oDRMIcK-rRIcEs
tBr TELEGRAPH TO TILE TRIBUNE


Chicago. Jan. 9.-Another trust has gone to pieces.
This time IT is the great American Harvester Com
pany, which a month or two organized
with the huge capital of S35,OOO.O Following 30
close upon the collapse OF the Window elias, Trust
which also died in its infancy, II indicates that sol is
bad year for combines Tho collapse of the har-
vester combination due principally n the antitrust
laws of various States. President McCorr1i'k made
the official announcement today after long session Of
the directors. lie said
The American Harvester Company states that after
securing the opinion of eminent counsel from different
states it has been brought face TO face with grave
legal obstacles the consummaon of the enterprise
for which il formed. These are If such char
actcr that. after the most serious and careful con
Sderaon. the conclusion has been reached thst tho
whole undertaking must be abandoned. In doing 50
il IS but adopting the such counsel have united
advising. II believes that in thus promptly taking
this action its course will meet the approval Of tho
public
BESIDES this IL i known that another cause Of the
collapse the threatened secession 81 the McCor
micks the Deerings and Wardcr Bushnell & Glc,sner
These companies not satisfied with the line Of
policy mapped out by the majority Of the director,
the matter Of raising prices the farmers and the
consolidation Of the interest Of the supply houses a.
disadvantage Of their customers. and they
belous at yesterdays meeting Of tie directory that
before the nigl> had closed they had determined
WltllufsW from inc combination, cut prices ana dnrlnl
ate those who remained stcadfast in their purpose n
bleed the farmers \ merry is now in prospect
In All interview President Mccormick sad
Tie dissolution Of the American IiarS ester Com
pary will have no effect on tie different companies
or firms which merged in it
VIII effort be made 10 rcorganize tho t7Is, m
another form, to accomplish the end, by other
means? -
That has not been considered. We had but the one
plan, and when We found that to be impractcablc
abandoned it. do not know what will be done
II is said that the hardest legal rocks against which
the trust were the decisions 81 the Illinois and
Nev-York courts the gas and sugar trust. Tn"
counsel Of the company raised the point there
legal difficulties in the before IN" charter
taken ont but after due consideration t. PRIME
of the enterprise decided 90 ahead The interests
involved were great that il agreed that $50
900 capital would be necessary 10 put the com
bnation upon it, feet OF this sum $1,000 5000 IN
bonds to be issued for working capital. Wh"n
the company attempted to float these bonds the n-cd
states Trust Company of New York Citv. through
which the negotiations were conducted Instituted
careful legal inquiry INTO the status of The American
Harvester Company, and ~ the rrrult n This inyc>ii
cation declined make the loan upon the ground that
the company had been organized IN such a way r. 10
violate statutes prohibiting trusts and similar com
biuations Of capital 10 limit production ana 10 control
trade. other financial institutions were appealed TO-
raise the necessary nInds within the company t-elf
but tn various concern, IN the deal becoming fright
ened al the legal aspect Of affair, refused 10 lie mp
their individual establishments where they would be
handicapped by the heaviest legal and financial ab-
ties. Of the mcmberS Of the trust talk rathcr
monrnfully about what Is expected 10 follow. They
several h0r Sos arc now preparing for competitive
which will surpass anything hitherto known IN the
business
price, will be conducted said one Il the members 81
The trust. let tell YOU that no sooner was the
istention of the men who controlled things made
known than the wires we're kept rod hot with alarms
and Instructions how b. act. one Chicago firm sent .
dispatch 10 It's Eastern and western agent Just say
ing: Trust bust cut prices Other firms said the
same thing in different words but the burden Of all
the messages was to cut phces-do business anyhow
and AT any sacrifice. Won't there be music now -