The ranch. [volume] (Seattle, Wash.) 1902-1914, 1910-04-15
Hmloftg Our Patrons
I. H. G. Dividends.


grasping trust organizations of the
country, we publish herewith letter
from the president of that great organ
ization Mr.. Cyrus H. Mccormick
Mr.. Mccormick is one OF the advanc-
ed thinkers Of our "big moneyed
men. He has brought about many
reforms il. the treatment OF the en-
ployees in their great factories and
offices. The helpers, one and all in
Guiding girls in the Irvine factory and
stenographers in the Offices are re-
warded for diligence and continued
service by sharing in the profits of
the company. An industrial insur
ance is maintained and was originally
endowed by big donation from Mr.
Mccormick himself. Halls, club
rooms and small private libraries are
provided for the social and intellectual
advancement of employees. Perfect
socialism could hardly ask for more.
We believe that if all the so-called
trusts were as fairly and as hOnorably
conducted as the affairs of the Inter
national Harves Go. the farmers
would have little need of the many
proposed restraining laws in Congress
and the various state legislatures.
"In view of the recent newspaper
comment on the stock dividend of
500, 900, 900 declared by the lnterna-
tional Harvester Company on is COM
mon stock, we print the following
statement of President Mccormick,
so that all facts may be clearly un
derstood:
''This company's capital stock, at
it's organization, was 800, 900, 900, all
fully paid for, either in cash or by
plants and tangible properties taken
at their cash value. Not one dollar
of its stock was issued for patents
trade names or good will, nor was
there any water in it.
''Its net earnings during the seven
and a quarter years since it began
business have averaged six and one
half per cent. per annum, upon its
total capital stock.
"The dividends paid were three per
cent. in 1903, and four per cent. in
1904, 1905 and 1906, upon the entire
stock. In January, 1907, the capital
stock without being increased, was
divided equally into preferred and
common. Since then seven per cent.
dividends have been paid on the pre-
ferred, but none on the common. The
average of all dividends raid on Janu-
dIy l., IOlO, was 1888 OIldii ILL uhU
One-half per cent. per annum on the
total stock.
"The difference between earnings
and dividends paid, during the past
seven and quarter years, now amounts
to about S25, 600, 900, and belongs to
the common stockholders. The stock
dividend just declared represents so
much of these earnings as have been
kept in the business. They are in
vested IN plant improvements and ex.
tensions, raw materials, and farmers
notes. Distributing this stock to the
holders of the common is not cutting
melon 1t is merely giving them
stock to represent this amount trans
ferred to permanent capital to be used
in the company's business. instead of
being withdrawn in cash dividends to
the common stockholders.
Including this stock dividend the
total dividend thus far declared aver
age less than six per cent. per annum
on the company's entire capital
stock.
The financial affairs of the company
are published annually in detail
through printed reports distributed
to the press of the country, so that
not only its stock holders, but the
public, may be fully informed. In
the annual report of 1907 Up. ~ ap-
pears the certificate of the well known
certified accountants Haskins & Sells,
as follows:
"We find that of the 500, 600, 600
capital stock issued, $50, OOO 600 was
fully paid for in working capital and
$50, 600, 600 was fully paid for with real
estate, plants and physical inventories