The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-07-26

lion. four hundred thousand dollars
was expended to acquire plants which
it did not intend to use but simply de-
stroy.
.sBear in mind that in all of these
instances all patent rights were ac-
quired and are still retained by the
International Harvester company.
Commissioner of Corporations Smith
said his -departme had been investi-
eating the International Harvester
company for several years and still had
men in the field in that work. Chair
man Stanley asked if Ebert H Gary
and George F. Baker We're not mem
bers OF the boards of directors of both
corporations. The commissioner pre-
sumed So other names suggested in
the same dual capacity " ere George
W. Perkins and Norman B. Ream.
-Four out of six of tho board of the
International Harvester company are
on the board of the steel corporation,
are they not?"
'I think they appear rs such in the
records" said the commis sioDer.
How Trusts Are Built.
In describing the organization Of the
group of larger companies in the har-
vester combine, the McCornicks, Deer
ing Piano, Wardner, bushnell Gless-
ner and the Milwaukee Harvester COM
panies Mr. Townsend reported to MT
Bonaparte:
TT appears that there was an un-
usual concentration of the capital stock
of these FIVE companies. It was all
owned and controlled by four families,
the McCormicks, the Deerings, the
Joneses and the Clessners. The pool
ing of their holdings was all that was
necessary to create a. trust. All these
people lived in Chicago
Another fact is interesting, Harold
Mccormick Zone Of the heavy stock
holGers of the Mccormick company IS
a son-in-law of John D. Rockefeller
The Mccormick company was. there
fore. already distantly related by mar
riage to the great American family Of
trusts. J. Pierpont Morgan is the
trust architect usually employed by
the Rockefellers. He is a good build
er and receives fabulous fees for his
work George w. Perkins is his asso-
ciate.
.'Therefore. if a harvest trust was
formed we should anticipate some of
the circumstances CT its organization,
viz:
1T would be designed and executed
by ]. Pierpont Morgan & Co, probably
through George W. Perkins.
1.-The amount of the fee charged for
such services would indicate the char
acter of the work.
'It would be organized in such
way that the Rockefeller influences
could ultimately secure control
OF the meeting in New York in 1902,
when the combination was launched,
the report said;
George w. Perkins conducted the
negotiations and devised and eXecut-
ed the plan finally agreed on. He pro-
posed that the consolidation be con-
summated leaving the values OF the
plants to be afterward fixed by disin-
terested appraisers, and that all of the
property to be turned into the consoG-
dated company be Immediately trans
ferred 10 a trustee pending the ap
praisem ents. After some further ne
gotiation this suggestion was adopted.
the appraisers were agreed upon and
all of the other details adjusted
1.-THE general plan was that the five
companies be merged in new cor
poration to be created for that pur-
pose, the stockholders of the merging
companies to be compensated by capi-
tai stock of he new corporation to the
amount of their respective interests as
determined by the appraiseme ments-
The Investigating committee ad-
journed late today to meet at the city
hall in New York tomorrow morning
Tt will probabl first take. up the Ten
nessee Coal & Iron case
Nothing to Say.
Chicago, July 26--At the general
Offices of the International Harvester
company in Chicago, it vas said that
Cyrus H Mccormick. president of the
corporation, is in Europe. Harold F.
Mccormick, vice president of the com
pany. declined to discuss the charges
at this time