New-York tribune., 1911-09-21
TRUST
MAY Be REORGAN|ZED
Attorney General WiCkerSham
and international Company
Officials in Conference.
GOVERNMENT TO CONSENT
It Will Stipulate, However, That
Great Corporation Must Be
Dissolved-To Drop Dis
solution Suit

NJ wv POA
Dissolved-To Drop Dis
solution Suit.
Washington. Sept 20-1t was learned to-
day that the government is ready to per
nit the International Harvester Company
voluntarily 10 readjust its organization 70
conform to recent interpretations of the
sherman antitrust law. Pending the re-
suit OF conferences between Attorney Cen
eral Wickersham and attorneys for the
company. the threatened dissolution suit is
being delayed
Negotiations which were begun here last
summer by Edgar A. Bancroft, general
counsel for the Harvester company, were
continued at Cedarhurst, Long Island
where Attorney General Wickersham has
been spending the summer. They have
reached the stage IL is said. where II will
be necessary for Mr.. Bancroft to refer the
question OF reorganization to the directors
Financial circles have recently heard per
sisteht reports that the government was
ready 20 bring an antitrust suit against
/ the company. and some papers necessary
,or court proceedings were prepared. The
tANNi 9AfailNiu- - Alldt Atlt KY tl
at no time has beeE inclined to be hasty Sc
long as the company showed disposition
70 meet the demands Of the federal au.
thorities.
The attitude Of the directors OF the Hsr-
vester company is expected TO be com
municated TO the Department OF Justice in
about a month. 1t is said to have beer
I Impossible 10 present the situation 10 the
directors before because many Of them have
been in Europe. The next regular meeting
is to be held on October p.
The negotiations Mr.. Wickershem ha,
4 been carrying on with officials or the com
rany do not constitute an entirely new de-
parture in federal regulation OF corpora
uOns. although the proceeding is Of q char
acter only recently instituted In the case
/ NJ the electrical trust and that Of the
Southern Wholesale GrocArs' Association
the corporations were recently permitted
. 10 agree to the governments demands
These agreements were put in the form OF
Cecrees which will he submitted 10 the
/ United states courts for approval.
It is not known definitely that the har,
vester company will he able TO follow the
course Of the electrical trust or the South.
ern wholesale rrocers' organization. as op
( position may develop in the board Of di
rectors Meanwhile the Department o
Justice is continuing its investigation.
Trust Must Be Dissolved.
Details Of the negotiations between Mr
Wickershsm and Mr. Bancroft have not
been made public. although il is known
that as one condition 10 non-prosecutior
the government insists that ,he bushes,
Of the trust must be separated into the
four corporations which first composed IL
Tnev were the Mccormick Harvesting Ma.
chine Company, the Deerins Harvester
Company. the Milwaukee Harvester Com.
pany and the Plano Manufacturing Com.
pany These companies were the first tc
be acquired by the International Harvester
Company when it was formed in New Jer.
I sey, I'm 1902. and capitalized at sl2O. .O0o. 600
OF which s6OoOOOOO was paid I'm cash The
other $50 OO0 O0o Of stock was issued FOR resl
estate plants and physical inventories.
All the stock OF the international Har
/ vester COMPANY except eighteen shares
which are held by the directors. is deposit
| ed with voting trust, OF which Georg.
I W. Perkins. Cyrus II. Mccormick ant
/ Charles Deerng are the trustees Thi,
/ trust was formed on August ls. 1902. and /,
I to run until August I. 1912. unless a ma
/ jOrity of the trustees agrees TO terminal,
/ il, which cannot be done on less than nine
/ tv DAYS notice.
! The corporations are said 10 be so inter
/ related with the voting trust agreemen
| and other stock holdings that a segrega
tion Of their sls5000.oOO OF assets into thei
original form presents difficult problem
George ". Perkins. chairman Of tn
finance committee OF the Internationa
Harvester Company. said YESTERDAY: "Thl
corporation always has been willing to cor
rect any legal or technical abuses WnicI
may have existed in the mind OF the GOV
ernment toward US"
Edgar A. Bancroft. general counsel o
the COMPANY. IN Cedaraurst. Long Island
last evening confirmed the report that ne
gotiations between the company and tn
! government, begun last summer. still wer
in progress. for the reason that Attorne
General Vickersham was spending his va
cation in Cedarhurst. IL was understood
there yesterday that NJ. Bancroft ma
refer the question OF reorganization 20 IN
directors
So far as the report that the Governmen
may bring a suit Of an antitrust Hatur
against the company was concerned, M
! Bancroft was silent but a man who wa
said yesterday 10 be intimate with the az
! fairs Of the company was responsible 70
! the statement that the international Har
vester Company should find II easy TO com
plv with the terms Of the Sherman anti
| trust law. but that il naturally wants {,
! know from the Department Of Justice wher
| il is at fault
/ In 1867" added this man, papers wer
drawn by the Department Of Justice ii
connection with this case, and when TIT
officials OF the company heard Of this the,
I had a meeting and in substance telesraphe,
/ back.
The company would welcome al in
vegtigation. II Il is wrong it wishes TO b,
I put right
4 high official OF the company said las
/ evening. Going back 10 the question o.
dissolution. permit me TO remind YOU tina
in Kentucky and in Missouri, where oustel
suits were brought against this company
the International Harvester got clear
bin of health In one court, indeed, th'
company's organization was commended.
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.nN-a,atn nrnIth IEHDUrT