The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1912-09-17
HOW HARVESTER
TRUST CAME
INTO BEING
Evidence at Federal Suit to
Dissolve Corporation
FUNK FIXED THE PRICES
Explains the Relations Between the
Big Selling Company and
Manufacturers.

Chicago, Sept 16.-Wiiliam ii.
Jones of Foster, Calf, one of the vice
presidents OF the International Har-
vester company, testified today, in
the governments suit for the dissolu-
ton of that corporation under the
Sherman anti-tr,t;t law, that in July,
1902 he went to New York in re-
Spouse to a telegram from President
E. II. Gary of the steel corporation,
and in consequence of that visit the
Plano Manufacturing company was
sold to the Harvester company.
That was the year in which the
government charges, the Harvester
company formed trust in restraint
of trade. Mr. Jones was president
of the Plano company. capitalized at
$780, 900.
His testimony was taken before
Special Examiner Robert s. Taylor,
with Edwin p. Grosvenor, special
assistant to the attorney general, APP
pearing for the government.
when / received Mr.. Garys tele-
gram" said Mr.. Jones. Il went to
New York He took me to the office
of j. p Morgan andl company where
he introduced me to George w. Per
kins. Mr.. Perkins asked me whether
| wanted to sell out. told him
would on fair basis. | didn't then
know to whom he wished me to sell,
but at the end of the month, after
seeing Mr.. Perkins about Is times,
was told to whom and | agreed to
accept stock in the new company for
the Plano company. | knew Mr.. Per-
kins was trying to get other compan-
les. He said he already had an OPP
tion on a Milwaukee plant"
why did you sell to one Lane in
stead of to the new company" asked
Mr.. Grosvenor.
THAT was a matter the lawyers ar
ranged"
Ibid you ever attend any of the
stockholders meetings of the Harves-
ter company?
mo; my stock was held for 10
years by Mr.. Perkins. Charles Deer
ing and Syrus II. Mccormick, the vot-
ing trustees
The taking of testimony here will
be followed by hearings in New York
and st. Paul
Clarence s Funk, general manager
of the Harvester company, testified
the company owned all the stock in
the following companies
International Flax Irvine company
of st. Paul.
: Wisconsin Steel company of which
H. F. Perkins, the president. is also
a division manager in the Harvester
company.
Illinois Northern Railroad company
OF which F. b. Montgomery, the pres
ident is head OF the traffic depart
ment of the Harvester company.
Mr.. Funk declared the Harvester
company bought the products of plants
OF companies other than those in
which II held stock. He said he often
was called upon to act as umpire to
determine the prices at which the In
ternational Harvester company ,of
America, the selling company was to
pay for the products of the Interna-
tional Harvester company of New Jer-
sey, the producing company.
rs IL true that the New Jersey COM
pany sells to the American company
at prices at which the American COM
pany is to sell so that the American
company makes no money!"
1--WE aim to buy from the New Jer
sey company at the same price at
which we would buy from any other
company. But II is a fact that the
American company has paid no oivi-
dends."
IL was announced tonight that
George w. Perkins, Cyrus H. McCor-
mick, Charles Deering and other men
interested in the formation of the al
legged trust would not be called to the
witness stand in the present suit