The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1904-12-09
INTERNATIONAL HARVESTER
COMPANY CITED INTO COURT.
TEST OF ANTITRUST Law
Attorney General Donovan Begins Ac-
ton Against Combine for For
feiture Of Franchise.

Ii the attorney general OF Montana,
James Donovan, succeeds in winning
the suit he has instituted in the SUI
preme court of the state, one trust
will be debarred from doing business
in Montana and the farmers who have
a preference for certain kinds OF
mowers and reapers will have to send
elsewhere tor them or Duy machines
OF other makes.
Mr. Donovan wants the Inter
national Harvester company restrain
ed from carrying on business in the
state, alleging that it is trust and
as such comes under the provisions
OF the law of Montana concerning
those institutions. He has applied to
the supreme court for an order barr
ing the company from Montana and
also demands that it's franchise be
forfeited. In response the court issued
an order to the company to show
cause why the prayer OF the petitioner
shall not be granted Return must be
made next Monday at 10 o'clock;
meanwhile it is enjolned as asked for
by the attorney general. F. o. Will
son of Helena is the company's agent
in Montana and he was served with
the marshall of the supreme court.
Is Trust.
In his application for the order Mr..
Donovan alleges that the defendant
company was organized under the
laws OF Wisconsin to manufacture
farm machinery and that is is COM
posed OF the Milwaukee Harvester
company, the Mccormick Harvester
company and several other concerns,
all of which were consolidated under
the new name in October, 1902; thai
the consolidation was for the further
purpose of creating, organizing ana
incorporating a trust for the purpose,
first, of controlling the quantity OF
machinery manufactured, land, sec
ond, for controlling the price of ma
chinery so manufactured aforesaid,
thereby organizing and creating what
is known as a monopoly or trust, in
the manufacture and sale of such ar
ticles aforesaid"
"Guaranty Sale Contracts"
Continuing, the petition is as fol-
lows:
"That the defendant is now doing
business in each and every county in
the state of Montana under said name
and style as aforesaid; that said de-
fendant has prepared what is known
as a guaranty sale contract with each
and all of it's dealers within the state
of Montana, which contract provides
among other things that said dealer
shall enter into a written contract as
aforesaid with said defendant where
by said dealer is to handle only the
goods manufactured by the defendant
herein, and that said dealer is prohib-
| tied from handling ony other machln-
cry manufactured by any other COM
pany and is compelled to purchase
from said defendant all of the machin-
cry so handled by said dealer; that
the number of machines to be shipped
to said dealer is limited to specified
number by the defendant, the kind OF
machinery is limited and the net price
fixed by said defendant herein; that
said contract provides that the prices
| of said machines as handled by said
dealer and sold to said dealers by
said defendant herein are to be fixed
at Chicago, Illinois, and there shall
be no deviation by said dealer in the
price of any of sal~ machines and
materials; that said dealer is not per-
mitted to buy said machines and ma
terials outright, but is to be COM
PEELED to act as the agent for said de-
fendant, and that said defendant is to
fix the price at which said machines
and materials and goods shall be sold
regardless of any competition, freight
rates or demands
Fixes Price for Montana.
"That said defendant fixes the re-
tail price at which said machines and