New-York tribune., 1912-04-30
GOVERNMENT STRIKES
AT HARVESTER TRUST
Suit for Dissolution of Interna-
tionaI Company Will Be
Started To-day.
ORDERED BY THE PRESIDENT
Action Follows Failure of Nego-
tiations to Bring About It's
Voluntary Break
ing Up.
TEro,, The Trihuna Bureau

Washington, April 29.-In accordance win
the direction Of President Graft. Attorney
General Wickersham has given instructions
to Charles G. Houpt, United States Attor-
ney 10 file tomorrow in the District Court
of the United States for the District OF
Minnesota a bill in equity asking for the
dissolution Of the International Harvester
Company. a $4,000 coo corporation
Announcement of this effect by the De
partment of Justice to-day sgnalizes the
failure ~ the negotiations Of almost
Years duration between the Attorney Gen
craI and the company looking to volun
tarv dissolution Of the alleged combination
The purpose Of these negotiations has
seemed at various times TO be- almost
achieved a minority OF the stockholders
Of the company appeared to he willing ~
comply with the demands Of the Depart
ment Of Justice and effect reorganization
i'm accordance with the antitrust law. y
ma aiority Of the stockholders were ready 10
comply with some Of the requirements laid
down by the Attorney General a. condi-
ton TO the dropping Of the suit
On the main question. howeyer-tho sepa
ration Of the Mccormick and Deerins com
psnies. the most important II the harvester
machinery concerns included in the comh'-
nation-Mr Wickersham and the directors
Of the company could not come to an agree
ment. and the Department Of Justice had
no other recourse than to apply 10 the
courts 10 enforce compliance with the Sher-
man law An ultimatum TO this effect was
delivered to the attorneys about three
weeks ago
The Harvester company expressed a Will
ingness TO dispose Of the smaller tmple-
ment companies which We're members OF
the combination and to readjust its busi-
ress in other respects. in the hope Of avoid
ing prosecution This Encouragement was
insufficient, from the point Of view of the
Attorney General and President Taft 70
ring about a full compliance with the Law.
The reason given 10y the officials Of the
company for its refusal to consent 10 the
separation Of the Decring and Mccormick
companies. the stockholders Of which hold
the greater part of the stock of the COM
bination. was that II was impossible 50 TO
separate the stock Of the two concerns as,
= bring about absolute independence. Mos/
,of the stock is held by members OF the
peering and Mccormick families. who have
been connected 10y marriage, and u was
{, Intended that even If the companies were
placed under separate management the
iCint control would remain In the same
hands.
The trust also Contendcd that the manu-
facture of harvesting machinery was the
only phase Of the trusts activity which
could in any way be construed as control
ling the market In the manufacture ot
-. In tl
and other kinds of farm machinery II in
sisted that there is unrestricted competi-
ton.
The present phase OF the prosecution of
the Harvester company dates back To tho
decisions Of the Supreme Court I'm the To-
bacco and Standard oil cases. At that Tune
the Attorney General recommended that
the prosecution e the Harvester trust he
undertaken. and preparations were made
to file a bill when the company, obviously
alarmed By the dissolution OF the two
giant combinations. approached the De-
partment Of Justice with the suggestion
that it was willing to readjust its affairs to
conform to the law as interpreted by the
Supreme Court.
These negotiations which were interrupt
ed at times. were continued until last week,
when il became clear that neither the At
torney General nor the officers oi the trust
would yield ON the question of the separa-
ton of the Deering and Mccormick com
panies. President Taft then directed the
Attorney General to ale the suit but not
until Tuesday or Wednesday of this week.
in order that 1t might not be construed as
q campaign issue.
The Department of Justice Is convinced
that il will have no difficulty in demon
strating TO the satisfaction Of the court
that the International Harvester Company
is a trust of the most pernicious charac-
er, maintaining an absolute monopoly ana
practising extortion on its customers the
farmers. who are perhaps least able TO bear
a.