South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-08-05
HARVESTER TRUST
MUST DISSOLVE
international Company Given
a Year After War to Carry
Out Court Order.


ing the so-caued harvester trust 70
De an unlawful com bination and or
dering its dissolution. are TO be car
ried into effect al once. The com
panys appeal pending in the SUI
preme court since 1915 is 70 be dis
missed and an order issued provid-
inr for the sale Of certain machine
lines. controlled by the company. to-
gether with its plants in Spring
field o. and Auburn, Y Y The
terms n the agreement were made
public sunday night by the depart
ment OF justice
Suit Filed I'm 1912
The harvester suit was instituted
IN Minnesota in 1912 by the govern
ment which for the first time in
the prosecution Of alleged comb
nations i'm restraint OF trade. asked
for the dissolution OF the combina-
ton on the ground mainly OF size
and inherent power. The case is the
first Of the more important anti
trust proceedings pending in the su-
preme court % be disposed Of I'm
LIl4o IlnTll NAAlNE AAlAN NUhl4AAN GU
tered the war
Have Until Year After War
Under the terms Of the agree
ment the company will dispose Of
its harvesting machinery lines
known under the trade names of
Osborne" champion" ard Mil
waukee." together with all machin-
cry and other equipment. and its
[ plants in Springfield, O., and Au-
burn. y Y. where the first Two
I lines are manufactured Beca use
Of the country's financial condition.
I due 10 the war the government is
/ inclined 20 be more lenient with the
company and will give il until one
wear after peace has been declared
I 10 carry out the terms Of the agree
ment Should this not he done by
/ that time however. the property
would be sold at auction.
One Representative i'm a Town.
Another term in the agreeme nt
provides that after Dec 81. 1919.
| the company will not be permitted
70 have more than one representa-
/ tive in each city or town. In the
event the terms OF this agreem emf
/ fail 10 meet the situation and re-
store competitive conditions in the
I harvesting and agricultural ma chin
cry trade. the government reserves
/ the right at the expiration OF Is
months after the war 20 such fur
/ Their relief IN the present case as
may he necessary TO that end"
The department Of Justice is ad-
I vised." said 4 statement issued
I sunday night. that at the ensuing
term of the supreme court the In
ternational Harvester Co. viii dis
miss its appeal from the decree of
the district court adjude.ng il a
] ombination in restraint of trade
and ordering its dissolution The
/ effect will he 70 leave the decree OF
the district court as toe final de-
cree in the case"
To Reunite Companies.
According 20 a statement given
out SUNDAY by Harvester company
officials. il is proposed, following the
dismissal Of the appeal Immediately
70 reunite the International Harves-
ter company Of New JERSEY and The
international Harvester corporation
in new corporation to be called
the International Harvester COM
pany.
The plan for reunion provides for
an issue OF a capital stock equal 10
the sum of the stocks. preferred and
common Of the two present compa
MES. namely s60.O0O.000 preferred
and sSO.OOO.O0O common. the same
as the capitalization Of the Interna-
tional Harvester corporation before
the division in 1918
Exchange Preferred stocks.
The preferred stocks viii be ex-
changed share for share. the com
mon will be exchanged one and one
third Il 30 shares OF the new com
pany for each share Of the Interna-
tional Harvester company of New
/ jersey and twO-thirds C2-3l % a
share or the new company for each
share Of the Interna tional Harvester
1 corporation.
I In a statement giving the reasons
/ for the dismissal Of the appeal from
/ the decision OF the federal court,
\ Cyrus r. Mccormick president OF
! the International Harvester com
/ pany. SAYS
The international Harv ester com
/ pany under the pressure Of war con-
/ ditions has agreed 10 dismiss It's app
peal i'm the government suit now
pending IN the supreme court OF the
/ United States
No Wrongful Practices
The decision appealed from was
/ entered by a divided court and was
based not upou any wrongful prac-
tees or injurious acts but upon the
companv's alleged but unexercis4d
+ power 70 dominate the agricultu RAJ
. implement trade
The result will be the loss by the
company OF a considerable part OF
+ its long esta blished trade IN harvest
ing machines
IT is perhaps needless 10 say that
+ the officers and directors Of the com
pany have decided with extreme re-
t luctance and regret 70 accept the
terms Of the adverse decree of the
/ district court. the legality of which
f is ar least doubtful i'm view OF the
fact that the government failed %
secure It's aftirmance by the supreme
court after two presentations Of ITS
. case against the company"