Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1904-11-26
TRUST HAS FARMERS
BY THE THROAT.

N ~ "S
cultural Implements Unless
of the International Harves-
ter Company.
Farming implement dealers and coun-
try storekeepers throughout the West
are up in arms against the recent act
ion of the International Harvester Com.
pany in attempting to prevent the sale
of farm implements except those of its
own manufacture. This action is the cul-
mination of a series of steps which have
been taken since the International Har-
vester Company. otherwise known as
the Farm Machinery Trust. was promo
ted by J. P. Morgan s. Co., some three
wears ago.
Until the formation of the trust the
farmers benefited by the keen competi-
tion between the implement manufac-
turing companies, which kept down
prices. but now all this is being chang
ed. and the situation confronts the
farmers and the country dealers of
either accepting the terms imposed by
the trusts or making an eff ,rt to COM
bine and fight.
The same problem was presented to
farmers by the Grain Elevator Trust
when they were confronted witch
choice of either selling their grain at
whatever price the Elevator Trust chose
to offer or of finding some other way 10
get it to market. aud the other way was
effectually closed by the grain elevator
people standing in with the railroad
men and discriminating against indi-
vidual farmers shipments.
This situation became so oppressive
that the farmers combined among them
selves to build their own grain elevators
and then when the railr Dad refu sed side
track privileges and loo itions along the
tracks the farmers went to the l. 'gisla
lures of the Granger States and com
PEELED legislation which gave them mt
least nominally equal rights with the
railroads.
COMPANIES IN THE TRUST.
The Farm Machinery Trust was
formed by a combination of the Deering
Harvester Company. the Plano Manu-
featuring Company. the Warder, Bush
nell & Glessner Company aud the we'll
known Mccormick Company, of Chi
cago. These were capitalized under the
auspices of J. P. Morgan & Co.. at $780,
100000. A New Jersey charter was
taken in the name of the International
Harvester Company.
There was one Western and three
Eastern concerns that refused to enter
the trust and one of these concerns had
large amount of paper from different
farmers discounted by the banks
Through its ramification and banking
connections the Farm Machinery Trdst
obtained control of this paper. indorsed
by its principal competitors and insist
ed on immediate payment. aud as a
result the Independent concern had the
choice of going into a receivers hands
or of accepting the terms offered and
selling out to the trust. Although per-
fectly solvent and having almost S2.
O00, 600 of assets more than its liabili-
ties.it could not raise the cash required
to pay all its floating debt at once and
so was forced to accede to the trust prop
osition and sell out. Two smaller COM
petitors were then easily bought out.
GRAsPING CONTRACT.
Then having put itself in the position
where it was the only concern in the
United States which manufactured all
kinds of farm implements. the Inter
national Harvester Company prepared a
Contract which, if accepted by the i'm
plement dealers aud store keepers. will
drive every other implement maDufac-
| turer out of business and will give the
International Harvester Company a
monopoly of the hundreds of millions
of dollars spent on farm machinery and
implements used throughout the United
States.
This 1905 contract which every dealer
and store keeper must sign or not be
allowed to handle any of the trusts
goods, provides that If the dealer is in
any way interested in the sale of other
implements than those manufactured
by the International Harvest Company,
either directly or indirectly, he shall
pay to the International Harvester
Company liquidated damages in the
amount stated in the contract. This
sweeping provision applies in case of
the employees. agents or partners. or
any one acting for the dealers. sells or
handles implements manufactured by
any one outside the trust.
In order to avoid the Sherman law
and prevent prosecution for combina.
tion in restraint of trade. the Interna-
tional Harvester Company of New
Jersey does not itself deal directly with