Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-05-02
MANY IOWA STOCKHOLDERS IN.
TEREsTEp IN. HARVESTER
COMPANY LITIGATION.
CONCERN ORGANIZED TO BUCK
TRUST FAILS TO BUCK
Stockholders in Suit AlIsss Chief Bus
insss Has Been to Sell Stock and
Not 70 Manufacture Machinery
Farmers Find Stock They Hold Does
Not Give Thorn Vote in Meetings.

Chicago, May "A bill in behalf OF
e7,G00 farmers. many in Iowa, holding
more than $4,000, 900 worth of stock in
he Independent Harvester Company
i Plano, ILL.,. is expected to be filed in
he United States district court this
norning. The company is a s10,000.0oo
|oncern. The action will be taken by
committee appointed by $500 of the
1000.
TIL charge OF the farmers commit
ea and their counsel Is that the agri-
Euituralists were duped into paying as
Ugh as SIS and $25 above par for stock
II q concern touted by promoters as
organized to "buck the harvester trust
~ the map"
Then. they allege, they were denied
my voice in the management of their
trust buster They further allege
hey are being duped by gross mis-
Management Of the corporation on the
BART of the missionaries who solo
hem stock.
The bill is directed principally
gainst W. c. Thompson, 1922 Green
wood avenue, president and controller
Il the voting stock of the company.
Farmers Demand Accounting.
The farmers ask that Thompson be
made to give an accounting Of the bus
ness of the corporation, of its profits
ind losses in stock, sales and machfn-
Try departments, that the corporation
books be audited. that Thompson be
forced to tell what compensation or
profits he has received, and that he be
made to pay back into the treasury OF
he corporation any money unlawfully
Received. The bin AYERS there has been
much money illegally appropriated.
The bill asks that Thompson be re-
moved from office, that the corporation
be reorsanized along cooperative
lines, and that the holders of non-Vot-
ing stock be given the privilege OF vot-
ing in the affairs of the business.
COMMITTEES Brings Bill to Chicago.
The committee which brought the
BILL TO Chicago is composed of E. NJ.
Thebiay Of Eagle Grove, Iowa; Grant
s,inneIl Of Kankakee, and Philip Me
sergall OF Paw Paw, Ill. The attorneys
n the case are Glover, Cooper. Hobie,
ind Parish, Of Kankakee, and Martin
md Malow, of Hutchinson, Kan.
The compliments state that 21,0o0
tockholders were duped by Thompson
nj his agents who did missionary
work. turnout the country. They
thought they were getting into a CO.
operative concern, they alege. and
Yfind now, after years Of promises. that
the corporation is a gigantic stock SELL
ing proposition and not manufactur-
ing concern.
They say they bought with the idea
they would get farm machinery at
prices considerably lower than those
OF the International Harvester Com
pany and at the same time make
nrofit IN dividends from the sale of the
machinery.
.Maeh.nsry Discount" Stock.
They bought what is called preferred
machinery discount stock. They
thought, they state in the bill. theS
were getting regular controlling STOCK.
They found later these holdings gave
the,,n no vote and no voice in the man
|agement.
The bill states ss,ooo.oOo worth Of
the stock is non-voting. The other
million il controlled by Thompson. He
holds the directors meetings IN Port
land. Maine. Six million dollars OF
fhe machine discount stock has been
sold.
The independent Harvester Com
many was organized in 1905 to buck the
trust It was evolved from the Kellogg
Harvester Company Of Plano. 1t never
has paid a dividend, altho the bill
(states stock solicitors have represented
|,bat II soon was to pay one Of from
|1o to 25 per cent.
start Of the Indignation.
Trouble began when the plant az
piano could not manufacture enough
machines to meet the orders. lndigna-
(.ian meetings were held in several
states. The greatest number OF stock
holders live in Illinois, Iowa, Kansas,
nSehra ska. and South Dakota. A COM
|mittee was appointed to investigate.
hut II IN alleged little satisfaction was
received.
IAN of the time Of the officers has
heen used in selling stock. the plain
ems aIlexe. instead Of manufacturing
rnae:,inerv to compete with the trust.
aitho the company Is declared to be
1,ossessed of sufficient money and
plant.
stock ssI,ins Chief Business.
More than $4,000, 900 worth Of stock
I'M. been sold during the last two
years.
The bill says that while the officers
the plant as running
and successfully during
1872, the company expended 100000
IN manufacturing and produced goods
selling at 100000.
one Of the propositions outlined by
the company was this, according to the
hill: The officers said they could man
ufacture q grain binder for $45. The
trust international Harvester Com
pany) was selling the same machine
for $3.50. The Independent company
was to sell it for $3.50 and turn over
the balance Of $s5 as profit to the
Thompson carried on his corporation
books a. assets. the bill goes on to say,
31,zs2, 900 which was not assets. but
expenditures for office help, agents
commissions. advertising. etc.
sDarred in Certain States"
The mismanagement and fraudu-
lent misrepresentation OF the officers
OF the company" reads the bill. 80
injured the reputation Of the company
|snd its products that advertisements
kre being refused by farm journals.
The company has been barred from
folng business In certain states.
II = alleged that the plant at Plano
X e. e. s.s...1uisanup -.