The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-07-18
Divorce of
.Harve
Firm Asked
Attorney General Daugherty
Files Action to Separate In
ternational Company Into
Three Corporations.
Trade Combine Charged
BY Associated \ Press.

Washington. July 17.-separatioh
Of the International Harvester COM
pany into at least three distinct cor
porations. with wholly separate own.
ers, stockholders and officials, was
demanded by Attorney General Daug-
herty today, IN a petition filed IN the
federal district court at st. Paul
Such step is necessary. the at
torney generals petition declared. be
cause the dissolution decree originally
entered against the company in 1914
had proved inadequate" to break up
restraint Of trade and restore com.
petition in the production Of harvest
ing machines and other farm imple-
ments.
The court was asked 10 enter a new
| decree. holding that the harvester
company still IS a combination N
restraint Of international trade and
commerce in harvesting machinery
and still Is monopollzing and attempt
ing to monopoIize said trade and com-
merce in violation Of the Sherman
antitrust law and contrary TO the
several opinions, orders and DEGREES
Of this court
Vision of Complete Monopoly.
Unless steps are taken 70 effect
real dissolution" the petition con
| tinued, The monopoIIstic control ex-
erted by the defendants, VIII increase
and the vision Of complete monopoly
which the organizers Of the company
had in 1902 will be completely real
lied" 10 the detriment Of the farmers
Of the country in their purchases oe
/ farm machinery.
The action Of the attorney general
was taken after prolonged conferences
among government officials and fol-
lows the line suggested by the federal
trade commission in a report u the
senate in 1920. The petition declared
that a reasonable test period" has
been given the corporation since the
close Of the world war. as provided IN
the original decree. 10 rearrange lis
organization in the interest ot the
public. That period having passed.
+ L vas added. the United States nor
has the right TO such further reilet
as may be necessary TO restore cor
petiiive conditions"
Parties in Combination
Specifically. the petition cited tie
International Harvester Co. the In-
iernational Harvester company e.
America. the International Flax
Twine Co, the Wisconsin Steel Co.
the Wisconsin Lumber CO. TIE
Illinois Northern railway and the
Chicago. Western Pullman & South
ern Railway company and the officers
and directors Of all these concerns. ss
parties TO the alleged combination.
The number OF independent manu-
fscturers. It was declared. steadily =
shrinking because OF their inability TO
compete with the International IN
1918. Il was asserted. the Interna-
! tional production but 81 Per cent G.
the harvesting implements rnanufac-
tured while during 1879. the percent
age Vas Sc
Il was added that sale ot the os.
borne and Champion companies has
had no beneficial effect en- eompefi-
ton. since the amount - machinery
marketed by those concerns has de-
/ creased.
Prices FIXED by Competition.
Chicago July 17.-Prices Of harvest
/ ing machinery are the result = vigor-
ous competition. which tie sherman
law was enacted 70 preserve. ard are
fairly comparable with he price -
other Implements fixed by normal
competition. Alexander Iegss. presi.
dert - the International Harvester
f Co sand today. IN a statement cani-
menting on the government suit
against The company filed in federal
district court al - Paul
The suit. AIR LeEee sid : eon.
F Ituustiou - the government action
+ brought against The company = yesrs
ago. The company. he said. was ac-
quilted by court findings. bui sn
lfsiS a decree was entered % insure
i funes; competition. requiring the
company 10 sell 10 competitors cer-
tain complete lines - harvesting ma
+ lchinery and limiting sales ueprcson-
tatiHes 10 q single dealers in any one
f city. That decree. he sad. provided
that az The end ~ a test period. which
/ has new expired. the government
might ask the court % determine
/ whether or not the free comretifson
+ contemplated hv the sherman anti
trust ian exists in tie fsrmer imnle-
/ lment industry. This sten The severn.
ment IS noN taking. the statement
said