The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1907-08-23
SPLIT BINDER TRUST
Uncle Sam to Get After The
Harvester Combine.
ACTION Is TO BE STARTED
Government Will Try Dis
solve Concern.
MUCH EVIDENCE Is GATHERED
Receiver May Be Asked For BY the
Prosecution; Charges BY Sena-
tor Hansbroush.


harvester trust which is to be placed
upon the legal grill by the department
of justice.
The fact was made public today
that Attorney General Bonaparte, at
fer months of consideration, has ar
rived at the conclusion that the In
ternatiOnal Harvester company belongs
to the class of "bad" trusts, that it is
q combination in restraint of trade,
and that it is the duty of the govern
ment to institute proceedings for its
dissolution without delay. 1t is like
ly that the governments bill will in
clude petition for the appointment of
receiver in case the allegations as to
violation of the antitrust law are sus-
tanned
The decision of the attorney general
is a direct result of the practically
dual investigation conducted by agents
of the department of justice and by
Commissioner Herbert Knox Smith of
the bureau of corporations. 1t has
been established to the satisfaction of
the authorities that the International
Harvester company controls more than
seventy per cent of the output of agri-
cultural implements, harvester ma
chimes, ETC.; that it contains all the
elements of monopoly-pat rights,
trade marks, ownership of plants, ac-
QUESTION of plants which are or may
develop into competitors, etc.
The company has been in existence
only five years, having been incorpo-
rated under New Jersey laws in Au-
gust, 1902. 1t was formed by the con-
solidation of the Mccormick Harvest
ing Machine company, the Deerng Har-
vester company, Plano Manufacturing
company, Milwaukee Harvesting com
pany, and the Wardner, Bushnell and
Glessner company. At the time the
consolidation occurred the company is
sued the following statement:
"The company is capitalized upon an
exceptionally conservative basis. OF It's
assets $SO,OOO,00O are in cash working
capital. The company will require no
financing and there will be no offer or
it's stock to the public, all the cash
required having been provided by Its
stockholders.
'The company has five fully equip
ped manufacturing plants in the Unit
ed States, the largest and most COM
I, I'll IN, ha world and
one plant now in process of construc-
ton in Canada. Through its ware
houses in various parts of the country
it will be able to make a most eco
nomical distribution of its manufactur-
ed products. 1t also owns timber
lands. coal, ore, blast furnaces, and
steel properties, by means OF winch
it should be able to accomplish I'M
nortant economies in the cost of raw
material"
About a year after its incorporation
the company acquired control OF the
Aultman-Miller company OF AKRON,
Ohio. Later it secured possession OF
the Mesba ore properties of the Deer
inc Harvester company While capital
ization is fixed at $l2O,O0O,0O0, esti-
mates of the value of it's properties
put it at less than one-fourth of this
sum.
Charges originally were made against
the harvester company by Senator
Hansbroueh of North Dakota, who last
summer made an investigation in the
farming regions of the northwest as
to practices of the combination. Sen
ator Hansbrough induced the senate to
adopt resolution directing sweeping
governmental inquiry, his stated pur-
nose being to relieve the farmers
'from the grinding extortion' OF the
combination. He declared the trust
controls not only the output and price
but is selling inferior machinery"
There is reason to believe the evil
dence gathered by two governmental
departments sustained Senator Hans
brough in the judgment of the author
tiles. All this evidence will be turned
over to lawyer yet to be designated,