The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1914-08-12

i
panies named did In effect unite, the
sole question is as to whether they
could have agreed on prices, and what
collateral services they would render
when their companies were all pros
porous, and they Jointly controlled so
| to So per cent OF. the business in that
line in the United States. We think
they could not have made such an
lagreement.
IF the five companies which formed
the International had been small and
their combination had been essential
to enable them to compete with large
corporations in the same light OF rea-
son. not have been in restrain OF trade,
but in the furtherance Of 1t; but when
they constituted the largest manu-
facturers of their articles in America,
IL not in the world, and held Jointly
about so to S5 per cent OF the trade,
and two at least OF the companies
forming the combination were pros
| porous. their combining was, lwhen
similarly viewed, an unreasonable re-
| straint OF trade. If the business of
the separate companies combining was
unsuccessful it could be plain that
| their combination was reasonable in
view of the rule of reason as proclaim
| ed by the supreme court but IL is con-
ceded that the Mccormick and the
Deering companies had established
reasonably successful and prosperous
businesses so that question is elimin-
ated. H9.
There is no limit under the Ameri-
can law TO which a business may not
independently grow. and even a combi-
nation OF two or more business IL it
does not professionally restrain trade,
Is not illegal; but 1t is the combination
which unreasonably restraints trade
that is Illegal, and II the parties in
controversy have so or IS per cent OF
the American business and by the
combination Of the companies all COM
petition is eliminated between the
constituent parts OF the combination,
then it is in restraint OF trade within
the meaning Of the statutes under all
OF the decisions"
History of Harvesters.
The decision reviews the history OF
the manufacture Of harvesting imple
ments in the United States, asserting
that prior to the organization OF the
international Harvester company the
principal manufacturers OF harvesting
implements in the United States were
The Mccormick Harvesting Machine
Co, OF Chicago founded in about 1S49.
n A., W of Atth
Y, founded about 1860.
The Warder. Bushnell & Glessner
Co.. OF Springfield, Ohio, founded about
1869.
The Deering Harvester CO., Of Chi
cago, founded about 1875. ,,,,
The Milwaukee Harvester Co., OF
Milwaukee. .agfo 80 ID. I. ..
The Plano Manufacturing Co, of
West Pullman, ILL.,, ,uJ "a ,.t..r
According to the decision. the efforts |
to combine these % concerns began on
June "a, 1902, when T. d. Mid llekauff |
secured an option on the stock and |
plant OF the Milwaukee Harvester Co. |
for $3,123,691. He did this the deci- |
sion says. 'in fact as agent, though it |
does not clearly appear who his prin-
cipal was, whether ]. z. Morgan 81 Co. |
George w. Perkins, or the Mccormick |
Harvesting Machine Co. He did it, |
however, at the direct instance OF the |
Mccormick Harvesting Machine Co, |
but whether he was acting as principal |
or agent is left in some slight doubt.
"On June 25, 1902, Mr. Middlekauff |
went to New York with a letter from
an officer of the Mccormick CO.. au-
thorizing him to assign his option TO |
j. +. Morgan & Co. OF which George |
w. Perkins was n member, or to any |
one they might designate. and reclting |
that the option had been obtained for |
u.s.
ION August II, 1902, new contract |
was made for the purchase of the Mil
waukee Harvester plant by Mr.. Mid |
dlekauff, and on the same day he as
signed his contract to Mr.. VIM. c. |
Lane a New York banker. and then
president of the Standard Trust com
pany.
In July, 1902, the representatives of
the Mccormick Deering, Warder,
Bushnell and Glcssner and the Plano
companies were all in New York, but
stopping at different hotels, and not
seeing one another. They were all |
seeing, however, Mr. George w. Per-
kins
Give Contract to Lane.
"On July 2S 1902, they met and gave
separate contracts to VIM. C. Lane to
sell all their tangible property, and
specified portions OF their bills receiv-
able. These agreements all contained
a recital that the purchaser, upon his
acquisition OF the property, intended to
transfer the same to a corporation to
be organized under the laws OF Illinois
or some OF the states. called the Pur-
chasing company. II was in each case,
except that OF the Warder, Bushnell &
Glessner Co., stipulated that the entire
purchase price be paid and fully paid
non -assessable stock of the purchasing
company.
ION August IL, 1902, the companies
all signed an agreement for the imme-
date delivery OF their plants and prop
erty without waiting for any appraise-
ment Heretofore stipulated for In each