The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1912-05-01
BY Associated Press.

st. Paul. April 30.-The government
today Instituted suit against the Inter
national Harvester Company under thu
provisions of the Sherman law. The
government asks that the corporation
be dissolved, that injunct ctions be is
sued to bar from interstate commerce
the products of the comapny, and that
receivers be appointed to wind up the
business of the defendant If the court
finds such action is compatible with
public interests. Subpoenas were is
sued for Cyrus H. Mccormick. presi-
dent of the harvester company, and
the rest of the eighteen individuals
and seven corporations named in the
petition are retrnable on May 6. The
government char ges the company with
monopolizing the manufacture and sale
of harvesting machinery, advancing
prices to the injury of farmers and
the public, and that the company con-
trols ninety per cent of the tra de ~
the United States, and has resorted to
unfair methods by attempting to in
duce agents to handle only their pro-
ducts.
The petition says: "The opporturi-
ties for any new competitors are con-
stantly being closed by the defendants
in all lines of agricultural implements;
the agencies for distribution, the retail
implement dealers and others, are rap
idly coming under their undisputed
control"
The bill contains these charges:
Defendants have resorted to unfair
trade methods; have made inaccurate
and misleading statements con ncerniui
rival machines or concerning the crediI
Of ocnpetitors; for the purpose OF de-
structiyes connp@titiou have reduceS
prices or tneir machines III sDnrg To-
calities below cost Of production am
distribution while keeping prices up II
other localities.
The international Harvester Com
pany was organized in New Jersey ir
1902. Prior to that time, the govern
ment declares there were ten ol
twelve establishments for teh manu-
facture and sale of harvesting imple'
ments In active competition with eacf
other The alleged trust was formet
through the combination of tho Nc
Cormick Harvesting Machine Com
pany of Illinois. the Deering Conpan,
of Illinois, the Plano Manufa cturinf
| Company of Illinois, Warder, Bushnell
& Glessner Company of Ohio, and tn,
| Milwaukee Harvester Company. Th'
| aggregate annual output of all th'
| harvesting machinery and so per cen
| of all the binder twine produced ant
sold in the United States at that time
The company was Incorporated Il
4 New Jersey with T. Cdptldl SCOSh OiA5A
naIly Of s120.ooo. 900.
The petition says that s3,451, 500 wa
| issued to J. P. Morgan & Co. for un
| derwriting services and legal expense
! and S3,14s,197 to the same flrm in re
| endorsement for the cash expended Z
secure the property of the milwaukee
Harvester Company.
/ The arrangement between the Inter
national Harvester Company and tn
| International Harvester Company Q
America (the selling agency was de
| vised and is now being carried out b
| the defendants for the purpose Of gi''
ing to the New Jersey company tn
| appearance Of not being engaged l
interstate commerce.: in other words
in order to accomplish an ostensibl
| segregation of the manufacturing 0
intra-state business of the corporatio
from its distributing or interstate bust
ness, hereby securing to the latter Pre-
lection against the laws of the sewers
states which have for their object th
suppression of monopolies or their eS
clusion from their borders, says tn
petition.