The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1907-02-05

eAas VIC pAouSAoAc anu SOOlulUS Sldtc-
nfents issued to the public through
the press ostensibly from G. McCor-
mick, but in reality adriotly framed by
the resourceful Perkins, dilated at great
length to the effect that this was a
legitimate industrial enterprise, head
ed by business men born and bred in
the industry, that no stock was for
sale, that it would not be placed on
the market or listed in the stock en-
change, and that, this being the case,
there was no cause for alarm in any
quarter. Only a few days ago the
newspapers published that j. P. Nor
gan & Company were busy with a
scheme for a reorganization Sanction
ed by ]. P. Morgan. Geo. w. Perkins,
and E. H. Gary, the head of the Steel
Trust" that the retirement of sew
eral interests from the active manage
ments would result and that the new
securities issued would be listed on
the New York Stock Exchange.
In the light of these events the
Harvester Trust appears not as the
work of those former captains of in
dustry, the McCormicks and behring's,
whose names have been used to fool
the public, but as Just another game
for the captains of frenzied finance.
Getting to the main subject, the en-
ternational Harvester company of
America is Wisconsin corporation,
organized month after the forma-
ton of the New Jersey corporation.
AS matter of fact it stands on the
records of the Wisconsin secretary of
state as the successor of the Mil
waukee Harvester company only
change of name and an increase of
capital stock. Its capitalization is one
million dollars as against the $780,
100000 of the New Jersey corporation.
The international Harvester Com
pany"-New Jersey, $12O,0OO,0 00-is
the manufacturing corporation and
does no interstate business. The "In-
ternational Harvester Company of
America"-$1, 000,00O-is the selling
corporation, going an interstate bust
ness. 1t buys the output of the manu-
featuring corporation and markets it
throughout the world. Of course this
arrangement simplifies the business of
the Harvester Trust and incidentally
allows it to pay taxes in certain states
on a capitalization of only 100000
instead of on 1920 900 ,000-a mere de-
tail in the figuring of the financial
brains conceiving the manipulation of
a tremendous industry.
Before many months had passed, it
became clear that the International
Harvester Company of America" was
forcing its goods upon the trade by
methods as ruthless as any ever en-
ployed by Standard Oil to coerce the
proprietors of the little wagon routes,
corner groceries and country stores.
The exclusive clause in the agency
contract of the Harvester Trust has
been abolished, thanks to the laws of
Texas, thanks to the law by the Mich
igan legislature after stormy session
in spite of desperate lobbying by the
Harvester Trust emissaries, and
thanks to the protests of dealers as
sociations and the public prosecutions
that were instituted as result of pub
licity in the trade and daily press. 1t
is abolished in form only, however, as
it is still enforced as vigorously as
ever-which means that it is enforc-
ed in each and every case where the
Harvester Trust thinks the circum-
stances permit the use of a club to
knock out an independent line and to
force in it's own goods.
You understand that the exclusive
clause provided that the dealer should
handle none but International goods
in certain lines under penalties rang
ing from S. to $50 for each offense.
Today the clause is not there but the
Trust salesman says, Throw out
those independent goods, take our
manure spreader, our gasoline en-
CINE, our harrows, our wagons, or we
will start blank in the business, give
him our harvesting machine agency
together with our complete line, throw
an extra force of our best canvassers
in here to help him and swamp you in
short orders. 1t is not always stated
so abruptly but it is made just as
plain. What is the dealer to do? He
may be independent enough in spirit
but he has family, and can he afford
to "buck the trust? Incidentally, such
competition" as this is hard for the
independent manufacturers of wagons,
spreaders, gasoline engines, etc., to
meet.