Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1905-07-13
FORMER OFFICIAL OF Moor
MICK CUMPANY SAYS
FIRM TAKES
REBATES.
RAILROADS INVOLVED

Eleven Companies, Including Several
Large Ones Which Operate In Iowa
Are Named as Parties to the Suit,
the Claim Being That They Have
Favored the Alleged Trust.
Chicago, July 12.--Another attack
has been made upon the international
Harvester company by Rodney B.
Swift, formerly head of the expert.
mental department of the Mccormick
branch of the harvester company.
Swift's connection with the company
was severed some months ago and
suit commenced against him by the
officials of the company, who alleged
that he had defrauded them in the sale
of patent In his bill filed late yes
terday afternoon, Swift as stock
holder, demands an accounting from
the company, and demands that the
court force the company to cease TAX
| ing rebates from railroad companies
and also compel the company to re-
turn to railroads moneys said by Swift
to have been illegally exacted from
the railroads in the past. The follow.
| ing railroads are also made parties to
the suit:
Chicago, West Pullman & Southern.
| Illinois Northern
Chicago, Milwaukee G. st. Paul.
i Chicago & Northwestern.
| Illinois Central.
/ Chicago, Burlington & Quincy.
i Santa Fe.
Chicago, Rock Island & Paciss;.
Chicago & Alton.
j Chicago Great Western
/ Wisconsin Central
.. How "Tribute" Was Exacted.
| OF the railroads made defendants In
the suit, two, the Chicago. West Pull
man & Southern and the Illinois Nor
thern are described in the bill alleged
by Swift as being the means by which
tribute was, according to the bill, filed
by him, exacted from the larger roads
in favor of the harvester company
The two roads, Swift asserts, consist
principally of switch tracks. Swift de.
clares that up to September 80, 1902,
the Mccormick branch of the harvest.
er company alone forced the railroads
} to pay it, through rebates and the op.
GRAFTON of the Illinois Northern road.
a sum in excess of $3,000,000. Up to
the same date the money received In
rebates by the Plano branch Of the
harvester company, through the agen-
cy Of the Chicago Pullman & Southern
railway, amounted to $500,00O.
Since September 30, 1902. 1t Is de.
clared that all the other railway com.
panies have been making payments Of
: rebates to the International Harvester
company under the guise of an al.
legged division of freight rates with the
Illinois Northern company. Swift as.
serts that the alleged illegal rebates
made to the international company
since 1902, amounts to more than ST..
100000.
Attacks Voting Agreement.
, Swith goes into the details Of the or.
! ganization of the International Har-
9 vester company, declaring that shortly
b after it's formation an arrangement
n was made between President Cyrus H.
Mccormick, Charles Deering, George
! W. Perkins and William G. Lane
to the effect that all of the stock
of the international company should be
e put in charge of the first named three
IS men as trustees for voting purposes
W until 1912. Swift demands that the
y voting agreement be terminated by the
d court.
d 1t is further disclosed in the bill that
the business of the International Har-
vester company is of an extremely
profitable character He asserts that
, harvesting machines can be produced
and delivered by the company for $57.
The company receives $95 for them
from agents, who in turn sell them for
$125.
q 1t is stated that the company has by
[ it's officers taken the position that the
only persons having the right to exam.
Inc the books of the company are the
trustees of the stock, Perkins, McCor.
mick and Deering. Swift says that all
l. his demands for an examination Of the
o company's books have been refused.
e Claims Damage to Company.
it 1t is further declared that the un.
n lawful course Of the directors of the
n corporation has damaged the harvest.
II er company to the extent of 5000 000
d which amount, Swift demands the di
o rectors to repay to the company.
6 The injunction demanded by Swift
1T asks that the court prevent the pur
If chase by the company of any manu-
9 featuring plants when the purpose oil
g the purchase is in whole or In part the
s. suppression of competition; use Of any
1T money or property by the Information
al Harvester company for the defeat
IS of the enactment of any law by any
is legislative body in the United States
IS or elsewhere or for influencing elec
v tions or the work of taxing bodies;
g combinations with the Plymouth Cord
of age company for monopoly Of the bind