New-York tribune., 1918-08-05
Agreement Ends Anti Trust
Action Started in Min
nesota in 1912
u. S. Suit Based on
Size of Combination
Company to Dispose of
Machinery Lines Under
Various Trade Names

agreement between the government and
tine International Harvester Company
Federal court DEGREES declaring the So
called Harvester Trust to be an unlaw-
full combination and ordering its dis
solution are to be carried into effect at
once.
The company's appeal, pending in the
Supreme Court since 1915, is to be dis
missed and an order issued providing
for the sale of certain machinery lines
controlled by the company. together
with its plants in Springfield, Ohio
and Auburn, n. Y. The terms of the
agreement were made public tonight
oy the Department of Justice.
The Harvester suit was instituted in
Minnesota in 1912 by the government.
which for the first time in the prose
cution of alleged combinations in re-
straint of trade asked for the dissolu-
ton of combination on the ground
mainly of size and inherent power.
The case is the first of the more i'm
portant antitrust proceedings pending
in the Supreme Court to be disposed of
III this manner since this country
entered the war
Terms of Agreement
Under the terms Of the agreement
the company will dispose of its har-
vesting machinery lines known under
the trade names of Osborne" Cham
rion' and milwaukee," together with
I'll machinery and other equipment and
ITS plants in Springfield, Ohio, and
Auburn, n. y, where the first two lines
are manufactured. Because of the
eountry's financial condition, due to the
war. the government is inclined to be
more lenient with the company and
VIII give it until one year after peace
mas been declared to carry out the
terms of the agreement. Should this
not be done by that time, however,
the property will be sold at auction.
another term in the agreement pro-
vides that after December 81, 1919, the
company will not be permitted to have
more than one representative in each
city or town. In the event the terms
OF this agreement fail to meet the situ-
ston and restore competitive condi-
uons IN the harvesting and agricultural
machinery trade, the government re-
serves the right at the expiration of
e'ghteen months after the war to "such
lurther relief in the present case as
may be necessary to that end"
The Department of Justice is adj
Nsed, said a statement issued to-
hight, that at the ensuing term of the
Supreme Court the International Har-
!ester Company will dismiss its appeal
IRON the decree Of the District Court,
adJudglng il combination in restraint
OF trade and rrf, NJ ;Cr
Ihe effect will be to leave the decree
OF the District Court as the final decree
IN the case.
Provisions of Decree
The parties viii then join in ask
ing the District Court to enter an or
DER carrying the decree into effect
providing substantially as follows:
A-Ihe Harvester company 20 dis
pose Of the harvesting machinery lines
sno"n under the trade names of 'Os
oorne, Milwaukee, ard 'Champion,' The
.rade names themselves and .a!l pat
shd other machines and equipment in
1he manufacture of these lines to {
responsible and independent manu-
adg,urer or manufacturers Of agri-
cultural Implements.
D-ih ne Harvester company also tc
ensf"se Of the plants and works al
"pringhcld, Ohio, and Auburn, n. Y.
mere inc Champion ard osborne
lhes Of harvesting machines are manu-
iac.pred.
IS-lf not otherwise disposed OF
@Itnin one year after the close of the
lung war, the before -mcntioneG
,,'neA of harvesting machinery, etc, to
W. w. soie d: public auction TO the high
The harvester company to be
tt''hioited after December 81, 1919
s,y.'l pyh haYing more than one represent
tFs or agent in any city or town in
me United States for the sale OF har.
;eHhg machines or other agricultural
"nplemcntg
.. E~N at the expiration Of cigh-
~ IN months after the close Of the ex-
,as."g n.y.. war the foregoing measures have
~, ns proved adequate in the opinion Of
s''e government TO restore competitive
l'naitions in trade and commerce in
a@,n.Yesting machines and other agri.
tufal implements and TO bring about
1tuation in harmony with law the
tpseafnmsnt TO have the right to such
nar 1rlnsr relief in the present case az
eSyr,e ne neccsgary TO that end
ms case presented the most funda.
~ ~ issue winch has arisen urder
II, 'H~fman act s.ucc it's constitution
Ky ~a@ @ determined. The isauc r.
me government conteuded thaY
.lnih niD',nat1rns of competitive unit o., =
iarge enough 10 make She .es,.lt.
--s--stion -" Iestfletion of competition dircc,