Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1912-09-20
HARVESTER TRUST
HISTORY DETAILED
BY SENATOR SMITH
That PaIty $4,000 Profit
Was Made by Subsidiary
Company, Which Is Merely
a Sales Agent of Trust

Senator Hoke Smith. who is familiar
Nth TIE history OF the International
IiarSes 'er company Of America. made an
interesting statement Thursday in ex-
PLANTATION OF the press dispatch sent out
from Chicago wednesday night that the
international Harvester company OF
America. had made only $4,000 in hand
ling a business or Sioo.oooo'o-
Senator Smith said:
The Internz tional Harvester company
OF America. which made Sl5o.ooO last year
on the sale OF 100000 worth Of farm
implements. Is not the International
Harvester company Cthe trus;l- 1t is a
suane given to one OF ;he companies, the
stock ~ which Is owned by the trust
TIE corporate name OF the trust is the
International Harvester company. not
The International Harvester company OF
america
The International Harvester company
tthc trust. sells its products through
The International Harvester company OF
.Amerscs.z n seems TO be = cunning de-
vice OF the sust 70 avoid engaging in
seuersI business.
The history e the whole matter was
siloun IN the report by Mr.. E. D. Town
send special assistant to the attorney
several. End made during the admins
.tratlon of Pgsdent Roosevelt, His re-
90. shows that The International Hsr-
.vslssr eosipany 0he trustl. vas or
sanized under the laws OF the state OF
Nep jersey. Arg. L. Isc.; that the organ,
zstion was made az the suggestion OF
Georga ". Parisins. One of the men act
iveiy intsreE'ed in the creation OF the
trust was Harold D. aIcGormiclS. a SON
ln-law OF John D. Rockefeller.
ENGINEERED By PERKINS
The organization was engineered by
J. Pierpont Morgan & Co. through
George ". Perkius. and ]. Pierpont Nor
gan & Co. received $4,000 for their
saryices.
1T ubsorbsd in August. 1862. various
coInps MES engaged in the manufacture
and selling OF ulIaee implements. seed
ing implements. threshing machines. har-
vestins machines. wind mills. wagons and
other vehicles. hoes. rakes. forks. etc.
The companies which II acquired con-
troIied about 50 per cent OF the total
commerce. OF the United States in these
agricultural implements This business
-~as. fnousssed zslntil st controls 80 per
esnt Of the total business. thereby giving
lit a monopoly In agricultural implements.
- necessary for the use OF the farmers
u the coautry.
among the companies absorbed by the
International Harvester company Cthe
trusO vas the Milwaukee company, a
corporation organized under the laws OF
the state OF Wisconsin. This company
had a capital stock OF Sl,0O0.0O0. One OF
the MeCo-mieks obtained an option on
the stock OF this company and trans
fs-rsd it TO the international Harvester
company. the trust.
MERELY a BLIND.
''Tu September, lso2. the International
Harvester company Ohe trust, had the
name Of the Milwaukee company changed
70 the International Harvester Company
OF america. and made then contract
by which the International Harvester
Company OF America was to buy from
the international Harvester company, the
trust. all OF its output and resell the same
to private parties. The $4,000 which
tIse international Harvester company.
the trust allowed the International Har-
vester Company OF America to make is
really simply a matter OF form, for the
International Harvester company, the
trust. owns all OF the stock OF the Inter
national Harvester Company OF America.
The showing that the international Har-
vsstsr Company OF America made only
tl50.ec0 on the sale OF 100000 worth
OF goods carries out the suspicion sug-
sested BY Mr. Townsend in his report in
Is2e. that the International Harvester
Company OF America was 4 transparent
device Of the International Harvester
company, the trust, to avoid participation
in Interstate commerce
MEANT TO DODGE THE LAW.
He suggests also In his report that
thiB scheme enabled the International
Harvester company, the trust. to have
the International Harvester Company Of
America sell the goods OF the Interna-
tional Harvester company. the trust, all
over the country and avoid the law in a
number OF states which required it to
make showing Of its financial condition
aid profits. and in some instances, to pay
taxes The International Harvester
company, the tr5st. likes its high prices
and makes It's profits through sales to the
international Harvester Company Of
America. and leaves the International
Harvester Company ~ America selling
Al over the United States with small
profits 20 be disclosed where the states
require foreign corporations to show the
business they are doing. also small profits
upon Nhieif 10 pay taxes.
HIGH PRICES FOR FARMERS.
1t has been developed that beginning
with 1so3 on the completion Of these
cunning schemes. the farmers were
charged more for what they bought, and
received les. accommodation. As an
illustration. the increased price OF a
seven-foot binder averages about SIS
per machine Added costs were made
Tor experts and extra parts.
This monopoly since 1905 has been
placing its increased burdens on the
producers Of the country by reason OF
the fact that il is a monopoly, and by