The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1913-11-03
I7AR.VES TER CUSTER
ARGUMENT IS MADE
BEYOND THE Ora We
PLEASING LECTURE

Lane, president of the STANDARD
Trust Company, of New York, anC
Mccormick and Perkins secured ar
option for nth company, which al,
forwards was turned into the selling
agency Of the corporation.
The government alleges that in
executing the agreement with Lane
the defendants sought to eyade the
antitrust act on advice OF counsel
by making APPARENT bona tide sales oil
Independent businesses without APP
parent collision. 1t AYERS, however,
that there was an expressed under
standing that there should be re-
transfer by Lane of these properties
to new corporation. Lane Is called
dummy and conduit for the men
back OF the deal, and his own testi-
mony to the effect he acted on the
advice of counsel is quoted. s
On August ~, the defendants in
lcorporated the international Har-
yester Company in New Jersey with
broad powers and the capital stock
rot $120 900, 900 was issued to Nv. q.
Lane. The next day, the BRIEF de-
Iclares. he delivered them to MeCor-
mick, Deering and Perkins, who had
been chosen as three voting trustees
to run the harvester business of the
new concern and who held the stock
in trust for the individuals who had
transferred their property to Lane.
The property was Immediately con-
Iyeyed to the new company. The OPP
tion on the fifth company, a Wiscon-
sin corporation, was assigned to
Lane several weeks previously and
the property conveyed to him on
August 10 and transferred to the
International Harvester Company on
this day. With these transactions
complete the international, the gov
eminent contends, practically mo-
.nopolized the field OF harvesting ma
chfnery in the United States.
In course Of time the three trus-
tees issued stock trust certificates to
persons entitled to stock in the new
company and under the agreement
made between the parties interested
exercises all rights and powers OF alb
solute owners of the stock for a
period of ten years. ny means OF
this voting trust, the brief alleges,
the power to run this vast business
was lodged in the hands OF few
men, and ]. P Morgan and Com
pany, and the Mccormick and Deer
ing families who own from sixty six
to seyenty5fye per cent OF the Com
pany's stock have been in control. 1t
points out that the finance commit
tee of the organization, its most
powerful committee, has consisted
of the three voting trustees and
George F. Baker and Norman B.
Ream since August 10, 1902, except
that Judge hilbert H. Gary, of the
tinted States Steel Corporation, was
elected member in 1906 and has
since served in this capacity.
The selling agent Of the new COM
bination was named the Information
al Harvester Company Of America,
ana took the place OF the Wisconsin
company, taken into the combine.
The international of America, it is
alleged, buys from the other Inter
national all its products and sells 1t
throughout the country at prices
fixed by the parent company. The
officers Of the two concerns, the brief
declares, were the same from Sep
TENDER, 1902, to April, 1910. and
directors of the subsidiary company
for that period were also directors
of the parent company. Its capital
is $1,000,000, and the government
contends that is merely the book
keeping end of the trust" and that
Continued on page four.)