Omaha daily bee., 1911-08-13
ANSWER OF HARVESTER TRUST
Counsel for Combine Contradicts Con-
illusions of Townsend Report.
DENIES MATERIAL STATEMENTS
Says Trust Has No Advantage
Through Patents and that II
Makes Nearly All Its own
steel and Iron.

ments and conclusions Of the so-calleo
Townsend report are based upon clearly
erroneous statements is the opening as
sertlon in reply by Edgar Bancroft, coun-
sci for the International Harvester COM
pany, filed today with the house "steel
trust investigating committee In answer
to charges made by Burdette T. Townsend
special agent OF the Department OF Jus
tioe in 1905 The Townsend report was
filed with the committee a short time ago.
Nearly every important statement re-
lating to the purpose Of the investigation
the reply continues, lis either grossly in
accurate or entirely untrue. The general
inaccuracy of the report is shown by It's
misstatement even of the names OF the
president and chairman of the board OF
the International Harvester company and
of the names of the voting trustees, al
though they we're all widely known and a
matter of public record for four years
prior. to the making of the report"
The fundamental charge OF n combina-
ton to create monopoly is based by the
report on the charge that the knotter In
the self binder is protected by patents and
that the International owns the patents on
all the best types of knotters.
No Monopoly Through Patents.
''The truth is there is no patent what
ever, on the essential part of any type OF
knotter and there has not been any such
patent in force since 1926, when the APP
plehy patent expired. This fact not only
appears on the records of the patent office,
but is known to overy manufacturer OF
self binders and to every principal dealer
in them.
Neither are there any existing patents
upon any essential part of the grain bind
ing machine. The many basic patents
had all expired in 1896 and there have been
no substantial patented improvements since
tS90-twenty years ago-while the life OF a
patent as is we'll known, is only seventeen
years"
The statements Of Townsend report that
OF the nine different types of grain binders
purchased by the Internationa! all but
three have been abadoned and that repairs
are not furnished for any others Is branded
by Attorney Bancroft as VIGOROUSLY and
absolutely false He further says that
repairs for every type then Cat the time
Of the report) were and have ever since
been furnished by the International when
and wherever called for"
1.-THE reports charge of binder Irvine
trust Is without any foundation whatso-
ever" declares the reply, which also states
that the International has had the vigorous
competition OF one larger and six smaller
Irvine manufacturers in addition to seven
state penitentiary Irvine mills.
Names Eight Competitors.
In reply to the charges that competition
has been largely suppressed" Mr. Ban
croft cites the names Of eight firms which
H. oil
AS to the charge that the international
receives rebates from railroads and special
concessions from the Unite States Steel
corporation. the reply declares that the
Harvester company's relation to the
United States Steel corporation is not diff
ferent from its relations to the competitors
of the steel corporation" and that durins
the last seven years II has bought from
the steel corporation 10 per cent OF its
total needs, while 1t has purchased 30 per
cent from competitors Of the United States
Steel, the balance of its needs having been
supplied by the Internatonafs subsidiary
corporation the Wisconsin Steel company "
AS to the charge Of increasing prices the
International asserts that instead of in
creaslng them its influence has been to
prevent increases. 1t says that although
the price OF raw materials has increased
more than 90 per cent, its prices we're not
increased until 1908, and then only I per
cent, and that for 1912 reduction of per
cent was announced last month.
Prices Higher Abroad.
On the subject of foreign prices, the
International denies that perennial false
hood that agricultural implements were
sold abroad cheaper than at home" and
declares that the governments own inves-
tigation. published in the daily consular
and trade reports of February, March and
April, 1909, show that the prices for the
sIx-foot binder, which Is sold in America
for sl25, are az follows: France, H75.7O
Germany, $685. Denmark, s1s750; South
Russia. sleS95; Great Britain, s1s5l6 and
that the net prices received by the Amer
lean manufacturer are greater on the ma
chimes sold abroad than at home"
AS to the charge that the international
is trust" the reply is that 1t was not
merger of existing corporations but q
new one, in which s20.oOo,Ooo were invested
by persons not heretofore in the harvester
business.
Finally, the International denies that
amy plants purchased by 1t were closed
or abandoned, but states that all the plants
were enlarged, improved and have EN-