Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1912-05-02

oorated with a capital stock original
" of s12O,O0O,000. The control Of
he capital stock was placed in the
hands of three voting trustees-Cyrus
f. Mccormick, Charles Deering and
) gorge w. Perkins, who issued stock
trust certificates to- the persons actu-
ally owning the stock.
Disposition of the Stock
In explaining the disposition of the
stock, the petition says that $3,451, 1903
was issued to j. P. Morgan & Co., for
services and local ex-
penses, and $3,14S,197 to the same firm
in reimbursements, cash expended to
secure the property of the Milwaukee
Harvester company.
The absorbed Milwaukee company
was converted into the International
Harvester company of America, thru
which the alleged trust sells exclu-
sjYely it's entire output in the United
'%T1The International Harvester Com
pany of America is merely the selling
agency of the International company"
continues the petitions. Since it's ac-
QUESTION by the trust it has paid no
dividends upon it's capital stock of ST.
100000. 1t buys and sells, the price
fixed by the parent company. In fact
the Wisconsin company is a book
keeping arrangement, given the form
of a corporate entity with small
capitalization for the purpose of en-
abling the larger company to do bust
ness in states from which it is de-
barred by reason of it's huge capitali-
cation.
Appear to Obey Law
"The arrangement between the IN
ternationssgs Harvester company and
International Harvester Company Of
America was further devised and is
now being carried out by the defend
andts for the purpose of giving to the
New Jersey company the appearance
OF not being engaged in interstate
commerce; in other words, in order
to accomplish a segregation ostensi-
bly, of the manufacturing or intra-
state business from the distribution
OF Interstate business, thereby securz
ingr~to the latter protection against
the laws of the several states which
have for their object the suppression
of monopolies or their exclusion from
their borders.'
Control of Retailers
Pointing out that as a rule agricul-
tural implements are sold by the
manufacturer to the retail dealer, eli
minating the usual wholesaler, the pc.
t1tion accuses the Harvester company
of endeavoring to acquire control OF
the retail merchants scattered over
the country in every city, town, vii,
'lage and hamlet. The means of &C.
complishing this in 1903, 1904 and
1905, it is declared, was through con
tracts making these dealers exclusive
agents of the defendants and binding
them under penalties mot to sell OF
be interested in the sal of any grain
binder, header, corn binder, husker
shredder, reaper, mower, stacker
sweep rake, hay rake, or hay teddel
not manufactured by the defendants
the International Harvester com
|pany."
During the succeeding years dowr
Ito the present, it is charged, the com
pany had exercised a like contro
over and domination of a great ma
jority of retail implement dealers il
the country by means of agency con
tracts, which may be annulled by thu
International Harvester company O.
America when it considers it's inter
ests neglected or jeopardized.
The defendants, it is declared, ar
using this termination clause to force
the retail dealers to handle only tn,
product of the international Harvest
er company, and are thus promotin;
their new lines of implements as wei
as harvesting machines.
Got Secret Control
The petition alleges that the Inter
national company in 1903 acquire,
control of the D. M Osborne compan,
it's principal competitor in harvest
ing machinery and tillage implement
but for two years concealed and de
MED its association with that com
pany. - 81
"This' it is added, twas in pursu
lance Of defendants policy, by dis
guising ownership of controlled CON
panies, to break down competition
and secure for themselves the benefi
of public sentiment against combina
Itions.'' 5lt III.
s%N +1,o~ oa,,o 80 -: - 1r,Io,1 $50