Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-03-03
ShOwnUp Commissioner
Of Corporations Consnt.
Power Gained From Monopoly,
Great Capital, Competition
And Connection With Morgan and
Rockefeller, Says the Report.

dissolve under the sherman law, lies
IN ITS monopoiistic position, its superior
command of capital including its con-
Eections with J. p. Morgan and Com
\ pany and John D.~Rockefeller, and GER
tam Objectionable competitive meth
ods, according to Luther Conant, Jr,
Commissioner Of Corpora tions in his
report OF the operations of the giant
] corporation. submitted to President
Taft today
The chief features of tie Interna
1 tional Harvester Companys opera
4 tons, says Mir. Conant, are the sub
stantial maintenance OF its monopistic
position in the harvesting machine
4 business, originally acquired through
i combination, and its extensions on u
large SCALE into new lines oil the farm
machinery industry. The company has
4 been able to do this in part through
the acquisition OF some of it's chief riv-
ais IN the harvesting machine business:
IN part by using it's monGpolistie adj
vantage in these harvesting machine
lines to force the sale of its new lines;
IN part by certain Objectionable eompe-
titiFe methods; and especially through
It's exceptional command of capital. it
Il +
4 The harvester investigation vas made
4 III response to a Senate resolution pass
] ct several Years ago. Receutiy "a request
was made BY representatives, of the
4 company that the report he withheld
pointing the outcome Of the anti trust
4 SUIT but President Tart decided to
3 make it public
4 The combination, the report declares.
I vas arranged in 1902 by the former
4 owners of five leading competing con-
4 Germs. and Was mol, as frequently as
serted" mere sale of their properties
4 IL now interests. ON this point Mr..
4 Gonant SAYS
1 IL mas been represented In formal
testimony h officers of the company
ana It's financial promoter, G. W. Per
l kihs, then OF the firm of j. T. Morgan
\ Go" mat its organization was not
the result o. concerted action by the
former competing owners, but merely
4 OF th@ purchase of their properties by
i rev and outside interests. Docunenta-
~ evidence gathered by the Bureau
4 completely dispases of this contention
nd shows that the principal competing
4 interests considered and discussed
among themselves the formation of this
combination ana were active in bring
ing it about.
i Great resources came 10 tie COM
3 haHy. it is asserted through the comhi-
nation, the financial support OF J. p.
Morgan and Company, its fiscal agents.
ard large loans secured from John u
Rockefeller. father-in-law of q mem
1 hci of the Mccormick family which
n ~ l..,.f
4 Of the corporation.
1 These exceptional resources. Mr..
4 eonant maintains not only enable the
4 harvester company 10 secure the econ
omies Of largo scale operations, which
I as rule. give it marked advantage.
10 manufacturing costs, but Also enable
III IL 10 maintain a very elaborate selling
/ organization by virtue of the variety
1 and extent of its business. Further
/ more, they give it a great advantage
4 II extending credits to purchasers, an
4 exceedingly important feature of the
farm machinery industry
Between 1908 and 1904. the company
IS declared by the Commissioner. to
4 kdVe acquired secretly, control of d. NJ.
4 Osborne & Go, its chief competitor, the
4 NJ lnnie Harvester Company. the AuIt-
4 tnan- Miller Co. and the keystone
4 Company These arc referred to as
i bogus INDEPENDENTS" The secret con-
troll II the Osborne Company. the re-
1 port says, vas maintained for nearly
two years, While it was being advertis-
ed as an independents concern These
REPRESENTATIONS, it is alleged. were
supported by it's managers in sworn
statements that il was an independent
1 company. Two of the chief stockhold-
els of the Osborne Company, Mr.. Con-
ant adds, agreed TO refrain from en-
&asing Independently in the same lines
II business for 10 years. The report
says. that the Harvester Company,s
claim that the ownership was con-
eealed in some cases merely to facili-
tate the liquidation of the old concern
is not regarded by the Bureau of Cor
rorations as 4 justification of the prac-
ticc.
These acquisitions. the report con-
tinues were followed by the company
extending its manufacture from such
4 harvesting machinery as grain binders
II and mowers to the so-called new lines
OF farming tools such as tillage imple-
mentS, manure spreaders farm Wag-
| ons, gasoline engines. tractors and
cream separators. Compulsion of deal
crs to take the company's new lines
by reason Of its monopilistic control of
harvesting machines, says the Commits
siener, has been attempted with more
ar less success by the company's repre-
4 sentatives.
| Competitive methods employed BY the
Harvester Company, Mr.. Conant de-
clares, have been the subject of much
complaint Regarding the charge that
that the company has made an effort
to secure an undue proportion OF local
dealers in farm machinery by allotting,
as a rule. only a single brand to any
one dealer in the same place, thus
tending to restrict the outlet for com
petitors goods, Commissioner Conant
says:
THE Company's own records show
X that this was one purpose at least in
4 making this distribution Of it's brands,
and it appears to have had some prae
teal effect in handicapping compete
| ton.
special DISCRIMINATORY uripac and