Show STATE GAINS THE DECISION I I International Harvester Com Corn Company j i pany of New Jersey Declared I Ito I to Be a Trust for the Pur Fur Purpose Purpose pose of Killing Competition MAY BE OUSTED FROM STATE OF MISSOURI I I Report Filed by Special Com Commissioner i missioner Gives the History I of the Combination From I Time of Its Organization I APPEAL WILL BE TAKEN CITY Mo Sept 6 Sp SpI I I nat elal Ial Commissioner Theodore Brace J In his report to the supreme court courtin courtn in n the Ih ouster suIt filed today declared the Ih International Harvester company com pan of oC New fW Jersey a trust and a combine for Cor forthe forthe the purpose urPo and with the effect of or de destroying competition In the manufacture m and sale of machinery The International Int Harvester company rom lany of oC America I l Is declared to 0 1 I he used mere merely ly I an as a agent by b the UtI New Jet Jer Jersey sey 50 company comp ny In n evasion of oC the Mis Missouri soon laws laI which prohibit the licens licena licensing ing InK of oC th the Sew New ew Jersey concern by b rca rea reason son can of ur Its enormous capital of or The subsidiary corporation according to tn Commissioner Brace Brae once one hurt hn cap capital capItal capItal ital but now ha has none Its U existence Is la a amere amet as a a separate corporate entity met mere fiction to evade eade th the lite laws The Th commissioner r found that Ihal the hI Mc Me 1 Harvester company the Peer Deer PeerIng InK Ing harvesting Machine company compan Var War Warder Varder der dr Glessner Glener A It Co eo the Piano Manufacturing company D P M Os OOl Osborne Osborne borne borneo ft k Co 0 and the Milwaukee liar Har vesting Machine company the Ih latter being a R respondent were In active acHY com COrn competition petition prior to Uti 1101 Competition I In June im INt Cyrus H IL McCormick J 1 T P PI i went to 10 George eorge w Perkins of oC I Morgan A Co of ot New ew York and sought sough I his hi aid akl In relieving competitive condi conditions I lions According to 10 the nf findings Mr Ir Per Perkins I klan kin soon lIGon perfected a plan whereby the McCormick company com n and the other I named companies com except the Milwaukee kee kf company ostensibly o sold old their lr properties to William C C Lane Jane the Ih commissioner found pretended to 10 sell them to the International Int lIar Har Harvester vester veeter company compan The Th original companies received stock in the new company apportioned ac Sc according cording to the appraise appraised value alue of oC the properties I and for their bills recel receivable able al stock leek In la the th seine HOle company equal val to 10 the same S amount The officers ot of o the original companies except the Mil MIt Milwaukee waukee signed practically Identical contracts ar Ii the same mate time in the office of oC the attorney of oC J J P Morgan Co Purchaser n a Morgan lorn te Co had previously pur put purchased I chased the Milwaukee company Lane the ostensible purchaser of the original Irl origInal inal companies the th commissioner found 1 was aa a figurehead The new nw company was as managed by b former officers of Continued on Ince inge e Two Tiro r 9 1 STATE GETS DECISION Continued from Page In e One Oneth Oneth th the old companies as was the Inter International International International national Harvester company of Amer America AmerIca ica Ice The whole stock of or the New Jersey corporation was wan transferred to a voting trust composed of George W Perkins Cyrus II If McCormIck and Charles Charlo Deer Doer DoerIng Ing who now have hav control until 1912 The Th commissioner found that these men practically control the mower and binder business and have potential con control control tm of other lines of harvesting ma mo machinery chinery in the United States Staten Soon after acter the organization of oC the Harvester combine tho the ro re report port says It acquired the IX D M lit On Os Osborne borne company and operated It ostensibly bly Wy bl as all an Independent concern for two Other companies acquired in 1303 1903 ar nr the IP Columbia corn com an iho Ih Ii Mexican Sinai IMal the h Illnois Northern company om pan the thea J a I V man M 51 lr II r nc hr Minnie 1 company com any and tho the keystone Kc stone company the last three being manufacturers of ot harvesting machinery Sale wf of r In 1904 it acquired the Weber Wagon a on company compan and patents of tho the Axle company and In 1906 1986 the Kemp company In the first flut five Ie years the tho sales sale of the company In the United States amounted to nearly tl In Missouri the company does doe about 30 per cent of or all business In agricultural a agricultural tural tools tool II Implements implement c and machinery In the binder line Une 99 H per percent percent perCent cent and in the mower line Une 78 Th 1 per percent percent cent Cont Attorneys orne for tor the company ny contended that toot the organization was a legitimate transaction In tho the ordinary course cour e of or trade The report points point out that the com corn company pany Pliny was or organised pan I soil to 10 control the binder and mower business and that the companies companion that entered the combine manufactured practically nothing except harvesting machinery In his hl conclusion the commissioner says I find that the International liar Har Harvester vester Te ter company IB is a combination cre created created for the Ule purpose of or restraining trade lessening competition regulating controlling and fixing prices of or agri agricultural agricultural cultural Implements tools and ma machinery mAchinery chinery sold hI and offered for sale in Missouri Merely n a That the International company of Missouri Is maintained by bythe It bythe the New Jersey JerM corporation ns as a sepa separate separate rate corporate entity for tor the tile sole pur purpose purpose pose OlIe of or making sales aJea of Its products and for that purpose It obtained a II 11 cease to do business in evasion of or the laws which preclude the International Harvester company compan of o New Nev Jersey from obtaining a license and by b means thereof has ha secured a practical monopoly in mowers and power to secure a further I monopoly mono pol In the th sale lIale of agricultural tools tool II Implements and machinery In the state The T respondent by b becoming a mem mom member member ber her of such a combination In furthering the thie purpose pur thereof by the evasion ha h hn has been n guilty ot or a violation of or the anti anU antitrust antitrust trust laws law and has ha Incurred the penalty of the laws I fall fail all to find any an other substantial basis bael on which license to todo todo todo do bv In the state stat should be ho for forfeited or The TIll suit w riled flied by h Governor Had hind Joy If when ho Ito was attorney a general November 12 1907 His Ills successor At Attorney Attorney torney torne General Major obtained much mu h hof of the evidence The action was we an In Information Information information formation in quo warrants which asked that alt an franchise fran and privileges logos leges of o the company In Missouri Ml be he revoked and that its property be con confiscated or a fine lne Imposed The Harvester company will file ii ex cx exceptions x to the report and the th tb case will b 1 he argued and submitted in the su en supreme preme court at the October term for a o find decision df |