The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-09-07
DECLARES 1T A TRUST.
Commissioner Files Report on the
International Harvester Co.

Jefferson City, Mo-, Sept. Especial
| Commissioner Theodore Brace in his
report to the supreme court in the
custer suit filed here declared the In
| ternational Harvester company of
New Jersey a trust and combine
| formed for the purpose and with the
effect of destroying competition in the
manufacture and sale of harvesting
machinery.
The International Harvester COM
pany of America is declared to be
| used merely as selling agent by the
New Jersey company in evasion of
the Missouri laws which prohibit the
licensing of the New Jersey concern
by reason of its enormous capital OF
$3.50, 100000.
The subsidiary corporation accord
ing to Commissioner Brace once had
capital and now it has none. Its ex-
istence as a separate corporate entity
is mere fiction to evade the laws
of states whose policy is not to en-
courage such vast accumulation of
wealth and power in the hands of a
| few as may injure the welfare and
prosperity of the many whose policy
is to keep open the field of CONNER
cial and industrial enterprise to all
citizens.
The commissioner found that the
Mccormick Harvester company, Deer
ing Harvester machine company,
Warder Bushnell, G1essner and com
pany, Plana Mfg. company. d. M.
Osborne and company and the Mil
waukee Harvester machine company,
the latter being respondent, were in
active competition prior to 1902. In
June 1902 Cyrus H. Mccormick went
to George w. Perkins of J. P. Nor
gan & Co. of New York and sought
his aid in relieving competitive con-
ditions from the manufacturers view
point.
According to the findings, Mr.. Per-
kinS soon was in communication with
other harvesting machine manufactur
Mccormick company and other named
companies, except the Milwaukee COM
pany, ostensibly sold their properties
to William G. Lane.
Lane, the commissioner found, pre-
tended to sell them to the Internation-
al Harvester company.
The original companies received
stock in the new company apportioned
to the appraised value of the prop
critics and for their bills receivable
stock in the same company equal to
the same amount. The officers of the
original companies except the Mil
waukee. signed practically identical
contracts at the same time in the Of
flee of the attorney of J. P. Morgan
and company.
Morgan & Co. had previously pur-
chased the Milwaukee company. Lane.
the ostenSible purchaser of the original
company, the commissioner found was
figurehead. The new company was
managed by former officers of the old
companies as was the international
Harvester company of America The
whole stock of the New Jersey corpora
ton was transferred to a voting trust
composed of George w. Perkins, Cyrus
H Mccormick and Charles Deering.
who now have control until 1912. The
commissioner found that these men
practically control the mower and
binder business and have potential con-
troll of other lines of harvesting ma
chinery in the United States.
Soon after the organization OF the So
called harvester combine the report
says it acquired the D. M. Osborne
company and operated it ostensibly as
an independent concern for two years.
Other companies acquired in 1903 are
the Columbia Cordage company, Mexl-
can SisaI company, Illinois Northern
Railway company, Aultman Miller
company, Minnie company and the
Keystone company, the last three De-
ing manufacturers of harvesting ma
chimes In 1904 it acquired the Weber
Wagon company and patents of the
Bettendorff Axle company and in 1906
the Kemp company. In the first five
years the sales of the company in the
United States amounted to nearly
5000. 900. 900. In Missouri the company
does about 80 per centAof all business
in AGRICULTURAL tools, implements, We
hicles and machinery. in the binder line
80 per cent and in the mower line I5
per cent.
ATTORNEYS for the company contended
that the organization was legitimate
transaction in the ordinary course OF
trade. The commissioner found that
this theory could not stand in face OF
the fact that the old companies turned
over their properties to a company not
vet organized for the purpose, as they
declared, of putting an end to what
thew called sruinous competition"
PORK IONS ARE HIGH.