The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-03-03


of the International Harvester Com
pany--the so-called harvester trust
which the Federal government Is seek
ing to dissolve under the Sherman
law, lies in it's monopolistic position,
its superior command of capital. in
Guiding it's connections with J. +. Nor
gan s. Co, and John D. Rockefeller
and certain Objectionable competitive
methods. according to Luther Conant,
Jr.. Commissioner of Corporations, In
his report on the operations OF the
giant corporation, submitted to PreSi
dent Taft to-day.
THE chief features Of the Interna
tional Harvester Company's opera
| tons" says Mr.. Conant ARE the sub
stantial maintenance Of it's monopo-
listic position in the harvesting-ina
| chino business. originally acquired
through combination. and its extern
| sions on a large scale into new lines
of the farm machinery industry. The
company has been ao1e to do this in
part through the acquisition of some
of It's chief rivals in tho harvesting
machine business; In part by using it's
monopolistic advantage IN these har-
vesttnE- machine lines to force the sale
of It's now lines; In part by certain
Objectionable competitive methods. and
especially through It's exceptional
command OF capital. itself the result
of combination"
The harvester investigation was
made In response to senate rcsolu-
ton passed several years ago Re
Gently II request was made by repre-
scntativcs of the company that the re-
port be withheld pending the outcome
OF the antitrust suit. but President
Tart decided TO mako 1t public.
Not Mere Sale.
The combination, the report declares
n IN, ~,
owner sof five leading competing con-
Germs, and was not, "as frequently as
serted, mere sale OF their properties
to new interests. On this point, Mr.
| Conant says:
1T has been represented in formal
testimony by officers of the company
and its financial promoter, G.. w. Per-
kins, then OF the firm of j. p. Morgan
d Co, that its organization was not
the result OF concerted action by tho
former competing owners. but merely
or the purchase of their properties nv
new and outside interests Documen
tary evidence gathered by the bureau
completely disposcs Of this contention
and shows that the principal compet
ing Interests considered and discussed
among themselves tho formation OF
this combination and were active I'm
bringing IL about"
Great resources came to the com
pauy, 1t is asserted. through the COM
pinatton, the financial support OF d.
L. Morgan & Co. its fiscal agents. and
large foanS secured from John -.
Rockefeller, father in-law OF a member
OF the Mccormick family which owns
a large portion of the total stock or
the corporation.
These exceptional resources, Mr..
Conant maintains. not only enables the
harvester company to secure the econ
omies of large scale operations. which,
as rule. give 1t marked advantage
In manufacturing costs. but also enable
II to maintain a very elaborate SELL
ing organization by virtue of the va
riety and extent of Its business. Fur
thermore, they give II great ad-
vantage in extending credits 10 puI-
chasers. an exceedingly important
feature OF the farm machinery indus
try"
Gets Control Secretly.
Between 1903 and 1904 the company
Is declared by the commissioner TO
have acquired secretly, control OF D.
VI. Osborne & Co. its chief competitor;
the Minnie Harvester Company the
Aultman- Miller Company and the Key
stone Company. These are referred
to as bogus independents" The Sc
cret control of the Osborne Company,
the report says. was maintained for
]
advertised as an Independent concern.
These representations, it is alleged.
were supported by its managers In
sworn statements that II was an in
| dependent company. Two OF the chief
stock oiders OF the Osborne Company,
Mr.. Conant adds. agreed to refrain from
! engaging independently in the same
lines OF business for ten years The
report says that the Harvester Com
~. nj a i,,, hat ho n tn
concealed in some cases merely to ia
cilitate the liquidation of the old con-
Germ Is not regarded by the Bureau
Of Corporations as Justification of the
practice.
These acquisitions, the report con-
tinues. were followed by the company
extending it's manufacture from such
harvesting machinery as grain bind
ers and mowers to the called new
lines of farming tools. such as tillage
Implements manure spreaders. farm
wagons gasolene engines. tractors ana
cream separators. Compulsion of deal
ers to take the company's new lines
by reason of IT'S monopolistic controi
OF harvesting machines. says tho com
missioner. has been attempted with
more or less success by the company's
representatives.
Proved by It's Records.
Competitive methods employed by
the Harvester Company, MIR. Conan,
declares, have been the subject Of much
complaint. Regarding the charge that
the company has made an effort 10
secure an undue proportion of Local
dealers in farm machinery by allotting,
as rule only single brand to any
one deaier In the same place. thus tend
ing TO restrict the outlet for coinpe-
titors goods. Commissioner Conan,
says:
The company's own records show
mat this was ono purpose at ieast in
& making this distribution Of its brands
and 1t appears TO have had some prac-
tieal effect in hand!capping competi-
ton.