The Birmingham age-herald., 1913-03-03
Commissioner of C0rporf
tiOns Declares Its Pow
Lies in It's Monop,
SUPERIOR COMMAN.
OF CAPITAL FIGUl
Conant Declares Power of Giant +,
poration Also Lies in Certain o
jectionable Competitive Methods.
Mccormick Isues Statement
Saying Report Unfair

Washington, March 2.--1he power of
the International Harvester company
the so-called Harvester trust-whioh
the federal government is seeking to
dissolve under the sherman law, lies
In its monopolistic position, its su.
perior command of capital, including its
connections with ]. p. Morgan & Co. and
John D. Rockefeller, and certain objec-
tionable competitive methods, according
to Luther Conant, Jr.. commits ssioner Of
Corporations, in his report on tire oper-
ations of the giant corporation, sub
mitted to President Taft today.
The chief features of the Interna-
tionai Harvester company's operations"
says Mr.. Conant. are the substantial
maintenance of its monopolistic posi-
tion in the harvesting machine busi-,
ness. originally acquired through com
bination, and it's extensions on a large
scale into new lines of the farm ma
chinery industry. The company has
been able to do this in part through the
ACQUISITION of some OF its chief rivals
in the harvesting machine business: in
part by using its monopolistic advan-
tage in these harvesting machine lines
part by certain Objectionable competf-
tive methods and especially through
it's exceptional command of capital, it.
self the result of combination"
The harvester investigation was
made In response TO a Senate resolution
passed several years ago. Recently a
request was made by representatives.
OF the company that the report be
withheld pending the outcome of the
antitrust suit, but President Taft de-
cded to make 1t public.
The combination, the-report declares,
was arranged in 1902 by the former
owners of five leading competing con-
Germs, and was not "as frequently as
serted a mere sale of their proper
ties to new interests. On this point Mr.
Conant says
\ IT has been represented IA formal
Testimony by officers of The company
and Its financial promoter, G. w. Perk-
ins, then of the firm of j. p. Morgan
& Co. that its organization was not tho
result of concerted action by the for
mer competing owners, but merely OF
the purchase of their properties by new
and outside interests. Documentais
evidence gathered by the bureau COM
|petely disposes of this contention an
shows that the principal competing tn
terests considered anu discussed among
themselves the formation of this COM
bfnation and were active in bringing
1T about"
Great resources came TO the company.
II is asserted, through the combinu-
tion, the financial support of j. p
Morgan & Co., its fiscal agents, and
large loans secured from John u
Rockefeller. father-in-lsw of a member
of the Mccormick family which owns
"a large portion of the total stock of
the corporation.
These exceptional resources, Mr.. Co.
nant maintains. not only enable tho
Harvester company TO Secure the
economies of large-scale operations.
which, as rule, give it marked ad-
vantases in manufacturing costs, but
also enable II TO maintain a very efa.
crate selling organization, by virtue Of
the variety and extent of its business
Furthermore, they give 1t a great ad-
vantage in extending credits to purehas-
ers, an exceedingly important feature
or the farm machinery industry"
Other Plants Controlled
Between 1903 and 1901 the company is de-
clared by tho commissioner to have ae-
CURED secretly control of d. NJ Osborne
n Co., its chief competitor; the Minnie
Harvester company, the Aultman- Miller
company and the Keystone COMPANY.
These are referred to as bogus independ-
efits.' The secret control of the Osborne
company. the report says, was maintained
for nearly two years while II was being
advertised as an Independent concern.
These Representations 1t is alleged, were
supported by its managers in sworn state
ments that it was an independent COM
pany. Two of the chief stockholders OF
the Osborne company, Mr. Conant adds
agred to refrain from engaging independ-
entity in the same lines of business for ~
years. The report says that the Harves
ter companys claim that the ownership
was concealed in some cases merely TO
facilitate the liquidation of the old con-
Germ is not regarded by the bureau of cor
porations as justification of the prac-
tice.
These acquisitions, the report contin-
uee. were followed by the company ex-
tending its manufacture from such har-
vesting machinery as grain binders and
mowers to the so-caled new lines of farm
ing tools, such as tillage Implements
manure spreaders, farm wagons. gasoline
engines. tractors and cream separators
Compulsion of dealers to take the COM
pany's new lines by reason of its
monopolistic control of harvesting ma
chimes, says the commissioner. has been
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