New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-01-21
HARVESTER TRUST TOLD
It MUST Be DISSOLVED
Attorney General WiCkersham
SAYS Government Has Served
Notice on the Corporation.
AN INQUIRY UNNECESSARY
Department of Justice to Bring
Suit Unless Dissolution Is Vol
untary-House Commit
tee Defers Action.


Washington. Jan. 9.-Attorney General
Uickersham told members OF the House
committee on Rules to-day that IL would
not be necessary for them TO recommend
an investigation Of the International Har-
yester Company, as his department was
actively planning the dissolution of that
corporation. On this information the COM
mittee agreed to delay action on the reso-
utlon Of inquiry introduced by Represen-
tstive Foster, of Illinois.
The Attorney General did not indicate the
departments plans more definitely, but
members of the committee said they I'M
derstood the Harvester corporation had
been fatty informed that It must volun-
tarily dissolve or be forced to do so by
government suit Oficials of the corpora
ton conferred with the Attorney General
recently.
The assurance was given at a conference
in which Mr.. Wickersham, Secretary Nagel
and members of the committee took part.
As TO a shipping trust" inquiry. both
Cabinet officials. 1t is reported agreed that
some decisive step should be taken. Com
mittee action on this subject may hinge
on the pending federal suit against the
Hamburg-American Steamship Line.
Hearings on the money trust" resolution
of inquiry will be held next week.
Several antitrust and interstate railway
prosecutions. now under way at Cleveland.
were discussed to-day by Attorney General
Nickersham. the Assistant to the Attorney
General, Mr.. Fowler. and District Attorney
Denman, of Cleveland The progress of the
governments suits against the alleged
towing monopoly on the Great Lakes the
p wall paper combination and numerous re-
bate cases was considered.
The International Harvester Company, Of
New Jersey, was incorporated at Trenton
on August u, 1902 as combination of the
Mccormick Harvesting Machine Company;
the Warder, BUSHNELL & Glessner Comp
any the Deering Harvester Company, the
Milwaukee Harvester Company and the
Plano Manufacturing Compans Since then
1t has absorbed several other harvester
concerns. among them the Aultman &
Miller Buckeye Company and D. NJ Os-
borne G. Co. IT was agreed at the time
of organization that the voting trust was
TO run until August /. 1912, unless a ma
FORTY of the trustees should agree 10 ter
inmate 1t. which cannot be done on less
than ninety days notice.
The company was capitalized at $4,000
O0O of which ssO,0oooOo was paid in cash
The other $50, oOo, 900 of stock was issued for
real estate. plants and physical inventories
All the stock OF the company, except
eighteen shares, which are held by the d.
rectors. is deposited with the voting trust,
of which George W. Perkins, Cyrus H. Nc
Cormick and Charles Deering are the trus-
tees.
The Harvester trust has occupied the at
tention Of the Department OF Justice since
1906, when the Townsend report was filed.
The next year papers were prepared by
the government in suit against the cor
poration, but this action was held in abey-
ance pending the outcome OF proceedings
brought in the Missouri Supreme Court on
November II, 1907, by Herbert S. Hadley.
the Attorney General Of Missouri. That
state sought TO Gust the Harvester Com
pany for alleged violation Of its antitrust
laws. Among the allegations in the COM
plant was the charge that the Interna-
tional Harvester Company of America was
maintained by the New Jersey Company
the parent corporation. as a separate cor
porate entity for the sole purpose OF max
ing sales of all of the parent company's
products, and that with the object of pre-
venting competition and giving the New
Jersey company a monopoly Of the bust
ness the International Harvester Com
pany of America compelled it's retail deal
ers in each county of the State Of Missouri
10 handle and sell only the products of the
International Harvester Company.
Testimony was taken by special COM
mission, among the witnesses being Cyrus
II. Mccormick. president OF the New Jer-
sey company, who was also president OF
the International Harvester Company Of
America. The deposition OF George W.
Perkins, chairman of the finance commit
tee of the New Jersey company, who was
at that time member OF j. p. Morgan e.
Co. was taken I'm this city in June. 1909,
by Attorney General Major, Of Missouri,
Who had succeeded Mr.. Hadley in that
Office Mr. Major said that the state had
obtained from Mr. Perkins valuable and
necessary evidence to make a case against
the harvester company.
on November "A Of last year the Su-
preme Court of Missouri ousted the harves-
ter company from the state and fined II
$1,000 in accordance with the findings OF
the special commissioner, HeOooTe bTdCt'
woh reported that the company violated
both the common and the antitrust law
Of Missouri. The fine was reduced later to
E25.W0. and in the following month writ
Of error was granted, allowing an appeal
10 the United states Supreme Court on
question Of the constltutionality Of the Mis-
souri, Law.
MeanwF: lie. the federal Department Of
Justice was watching the Missouri proceed
ings, 50 that it might De fortified by any
principles OF law laid down by the stat'
court. and last spring it was announced
that the preparation Of 10th civil and Grim
inal suits was we'll under way. In th'
course Of the summer. however, negota
lions were begun between the trust ofhcisl'
and the department, which. 1t was hoped
would lead to a voluntary reorganizato'
OF the company. in conformity with tn
law. With that end in view several tentd
tive plans ere under consideration
On August Is Representative roster e. 20
Illinois Introduced a resolution calling 10
an investigation Of the harvester trust