Los Angeles herald., 1910-09-07
FINDS VESTER
COMPANY TRUST
Missouri Commissioner Reports
in Custer Suit Against
Big Combine
Associated Press)

JEFFERSON CITY, Mo-, Sept. G.
Special Commissioner Theodore Brace,
in his report to the supreme court in
the custer suit filed today, declared
the International Harvester company
of New Jersey, trust and a combine
for the purpose and with the effect of
destroying competition in the manu-
facture and sale of harvesting machin-
cry.
The International Harvester COM
pany of America is declared to be used
merely as a selling agent by the New
Jersey company, in evasion Of the Mis-
souri, laws, which prohibit the licensing
of the New Jersey concern by reason of
it's enormous capital of $120,00O,0 900.
The subsidiary corporation. accord
ing to Commissioner Brace, once had
capital, but now has none. It's ex-
istence as separate corporate entity
is a mere fiction to evade the laws.
The commissioner found the McCor-
mick Harvester company, the Deering
Harvester company; Warder, Bushnell,
Glessner & Co.; the Plano Manufacture
ing company, D. M. Osborne & Co.
and the Milwaukee Harvesting Ma
chine company, the latter being a re-
spondent, were in active competition
prior to 1902.
MCCORMICK SEEKS AID
In Junet 1JU6J CyruS II. McCOrmlCK
went to George w. Perkins of ]. P.
Morgan & Co. of New York and sought
his aid in relieving competitive con-
ditions
According to the findings, Mr.. Per-
kins soon perfected a plan whereby
the Mccormick company and the other
named companies, except the Milwau-
kee company, ostensibly sold their
properties to William c. Lane. Lane,
tee
sell them to the International Har-
vester company.
The original companies received
stock in the new company apportioned
according to the appraised value of
the properties and the officers of the
original companies, except the Mil
waukee, signed practically Identical
contracts at the same time in the office
of the attorney of ]. P. Morgan 6, Co
Morgan & Co. had previously pur-
chased the Milwaukee company. Lane,
the ostensible purchaser of the orig
inal companies, the commissioner
found, was a 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
corporation was transferred to 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 control of other lines of har-
vesting machinery in the United States.
ABsORBs COMPETITORS
Soon after the organization of the
so-called harvester combine, the re-
port says, it acquired the d. NJ. Os-
borne company and operated 1t osten-
sibly as an Independent concern for
two years. Other companies were ac-
quired in 1903 and in 1904
In the first five years the sales of
the company in the United States
amounted to nearly $500, 100000.
In Missouri the company does about
30 per cent of all business in agricul-
tural tools, implements, vehicles and
machinery; in the binder line 80 per
cent, and in the mower line rs per cent.
Attorneys for the company contended
the organization was a legitimate
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