Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-08-13
Continued from Page Three)

| harvester Company, as IL Hdu etii eauS
acquired the plant. 1t reduced the cap
ital of the Milwaukee Harvester Com
pany to a million dollars, the court
said, and changed the name to the In
! ternational Harvester Company OF
! America, which was for considerable
time differed by officers of the Inter-
! national Harvester Company. A con-
| tract was made whereby the Interna-
| tional Harvester Company contracted
to sci! its entire output to the lnterna-
tional Harvester Company of America,
which undertook to resell the same
The court declares that the selling
company, in addition to buying the
products of the manufacturing COM
pany. also bought from outside parties
some threshers, wagons, plows, ETC.,
and resold them; but the dealing In
all property not the product of the In
ternational Company only amounts to
about IL per cent of its business.
All the stock of the American Compa-
ny ia still the property of the Interna-
tional Company.
The court finds that in January fol-
lowing the consolidation of the five
companies the International Company
acquired the D. M. Osborne & Co
stock and the companies thus COM
bined manufactured still greater per-
centage of the harvesting machinery
used in the United States and nearly
the whole Of that exported. The decis-
| ion continues:
THE five companies except the Mil
waukee company all took stock in the
new company, and with the exception
! of the Warder, Bushnell & Glessner
Co. took stock for the entire amount
turned over by them, and this amount
ed to 500, 400 900 of the S120, 900, 900 capt.
tai of the new company; $o,60O,000 of
the capital of the new company was
paid to J. p Morgan & Co.. Of which
| $3,14S, 1856 was for the Milwaukee
Harvester Companys property and
business and SO. Ash, S0334 was for the
services and expenses in connection
with the organization of the Interna-
tlonal Company. Thus, $100,00O,000 of
the capital Of the new company was
clearly covered without any new or
additional working capital. BY agree
ment among all the parties who were
to receive shares of stock in the Inter
national all the stock except enough to
qualify directors was vested in voting
trustees, namely: George w. Perkins,
Cyrus H. Mccormick and Charles
Deering. These voting trustees were
maintained for ten years.
when the D. M Osborne & Co. pur
chase was made, while the Information
al bought all the stock it permitted
the Osborne company to continue to
appear to be independent. 1t is claim
ed that this was done to enable the
Osborne concern to collect its bills re-
ceivable which were not acquired by
the International. There was CONNER
cial advantage in claiming not to be
associated with the International
Many persons We're opposed to buying
from it, and for two years the Osborne
company persistently advertised that
1t was Independent.
while under the old-time law OF
Warranty it might be justifiable fol
, the Osborne company to conceal its
: relations with the International, there
: can be no excuse for the aftirmatio
upon its part that it was Independent
after it had been acquired by the In
ternational. The seller may let the
buyer cheat himself ad libitum, but
must not actively assist him in cheat
ing himself
4
the stock of the Osborne company and
it had been transferred to a trustee
and there was in the fact that the Os
borne company might better collect 1t:
!. bills receivable no basis to justify The
International in making contract un'
der which the Osborne company would
:. continue to advertise falsely that 1
was an Independent concern when i
with hn Tn,
: ternational. 1t is safe to say that from
January, 1903, the competition of thu
Osborne company was in name only
and did not exist in fact
, What has been said Of the Osborne
) purchase is true in principle of pur
J chases made by the International o.
! the Keystone Company, the Minnie
. Harvester Company and the Aultman
5 Miller plant.
Prior to the consolidation the frs
five companies were in fierce competi
$ ton for trade. and especially was this
true Of the Mccormick and Deerint
, companies, and this competition ex'
tended not only to price but to tn,
granting of expert assistance. ant
numerous free items with machines
The result of the combination wal
that all this competition at once who'll
ly ceased. except within the limitation
of agents commissions.
THE defendants claim that the OBJ
jects of the organization were: First
to build up the foreign trade; second
by the combination to secure more
capital to enable them to continue the
battle in the foreign market; third. by
charging the scope Of the business sc
as to include other lines of agricultural
implements to make an all-the-year-
around business. They also claim that
it was not the intention to Cypress
the domestic market, and that they
have not done So"
1t does appear that since the COM
bination the foreign trade has been
greatly increased. This trade Of all
the combining companies was $40, 400,
600 in 1902. and has grown under the
defendants management to 10000, 0OC
in 1912. This vast growth Is to the
credit of the energy and enterprise of