Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1905-07-13
FORMER MCCORMICK OFFICIAL
BRINGS SUIT.
MILLIONS IN REBATES
Railroads Held Up for Vast Sums by
Machinery Combination - Exorbi-
tant Price Charged for Binders
Four Men Voted Stock-Aceountine
and Return of Money Demanded.

Chicago, July 12.-Another attack
the International Harvester Co. by
Rodney B. Swift, formerly head of the
experimental department of the Nc
ormick branch of the harvester COM
pany Swift's connection with the
company was severed some months
ago, and a suit was commenced against
him by the company officials, who al
legcd that he hal defrauded them in
the sale of a patent. In his bill. Swift
as a stockholder. demands an account
ing from the company ami demands
that the court force the company to
cease taking rebates from railroad
companies and compel the company to
return to the railroads moneys said
by Swift to have been illegally exact
ed in the past The following roads
are ma lie parties to the suit: Chicago,
West Pullman & Southern; Illinois
Northern; Milwaukee,; Northwestern;
Illinois Central; Burlington; Santa
Fe, Rock Island Chicago & Alton;
Great Western, Wisconsin Central.
Two of these roads. the Chicago,
West Pullman & Southern, and the
Illinois Northern, are described in
Swift's bill as being the concerns by
which tribute was eXacted from the
larger roads in favor of the harvester
company. The two roads. Swift as
selts, consist principally of switch
tracks. Swift declares that up to Sep
TENDER 80, 1902, the Mccormick
branch of the harvester company alone
forced the railroads to pay it, through
rebates and the operation of the Hill
nOis Northern road, over $3,0O0,OOO.
Up to the same late the money re
ceiyed in rebates by the Plano branch
of the harvester company, through the
agency of the Chicago, West Pullman
& Southern roalroad, amounted to
$500, 900.
Since September 80, 1902, it is de-
clared all the other railway companies
have been paying rebates to the har-
vester company under the Suse OF al
legged division of freight rates with
the Illinois Northern. Swift asserts
that alleged illegal rebates male to
the International company since l9O2
exceed 100000 He goes into the
details of the organization of the Inter
national Harvester Co.. declaring that
shortly after its formation an arrange
ment was male by Charles Deering,
CYRUS II. Mccormick George w. Per-
kins and William c. Lane, that all the
stock of the International company be
put in charge of the first named three
men as trustees for voting purposes
until 1912. Swift demands that the
agreement be terminated by the court.
1t is further declared that the busl-
ness of the harvester company IS OF
an extremely profitable character. He
asserts that harvesting machines can
be made and delivered by the COM
aany for ST. but the company receives
sos for them from agents, who in turn
sell them for $125. 1t is stated that
the company officers have taken the
position that the emil persons having
The right TO examine the books OF the
company are the trustees Of the STOCK
Perkins, Mccormick, Lane ana
Deering Swift says that all his de-
mands for examination Of the com
pany's books have been refused. 1t Is
further declared that the unlawful
course of the directors for the corpor-
alton has damaged the harvester com
pany 10 the extent of $5,000000, which
amount Swift demands that the direct
ors repay to the company.
The injunction demanded by Swift
asks the court to prevent the purchase
bv the company of any manufacturing
plants when the purpose OF the pur'
chase i, the suppression OF compeu-
+ion the use Of any money or proper
tv by the harvester company Tor the
1efeat of the enactment of any law by
any legislative body in the United
states or elsewhere, or for corruptly
influencing elections Of the work OF
taxing bodies. or connection with the
Plymouth Cordage company for mo
nopoly for binder Irvine Of the trade OF
the United States