The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-08-12
Report Of Special Agent Of De-
partment Of Justiceis Scor-
ed by Counsel For the
International
EVERY ACCUSATION ANSWERED
No Valuable Patents on Essential Parts
of Binder; No Binder Twine
Monopoly; and No Fixing
of High Prices.


Bancroft. counsel for the Internation-
al Harvester Co. filed today with the
House steel trust investigating COM
nittee an answer to the charges made
by Burdette Townsend. the special
agent of the department of justice in
1908
Nearly every important statement
of fact relating to the purpose of the
Investigation" the reply asserts "is
either grossly inaccurate or entirely
untrue. The general inaccuracy OF
the report Is shown by its misstate-
ment, even of the names OF the presi-
dent and chairman of the board of the
International Harvester Co, and of
the names of the voting trustees.
No Valuable Patents.
"The fundamental charge of n COM
binatfon to create a monopoly, Is based
by the report on the charge that the
knotter i'm the self binder is protected
by patents. and that the international
owns the patents on all the best types
Of knotters. The truth is there is no
patent. whatever on any essential part
of any type of knotters, and there has
not been any such patents I'm force
since 1896 when the Appleby patent
expired. Neither are there any exist
ing patents upon any essential part OF
the grain binding machine. The many
basic patents had all expired In 1896
and there have been no substantial
patented improvements since 1890,
twenty years ago. while the life of a
patent, as Is well known. is only sew
enteen years.
The statement In Townsend's report
that Of the nine different types OF grain
binders, purchased by the Internation-
al all but three had been abandoned
and repairs are not furnished for any
others, is branded by Bancroft as mo
toriously and absolutely false"
No Binder Irvine Trust.
"The reports charge OF n binder
twine trust is without any foundation,
whatsoever" declares Bancroft. He
also states the International has had
the vigorous competition of one large
and six smaller twine manufac turers.
I'm addition to seven state penitentiary
twine mills. In reply TO the charge
that competition has been largely
suppressed" Bancroft cites the names
of eight firms, which. he declares, are
all active competitors.
As To the charge that the Interna-
tional receives rebates from railroads
and special concessions from the ". S.
Steel corporation. the reply declares
that the harvester company's relation
to the IT, s. steel corporation Is not
different from its relations with COM
petitors of the steel corporation; that
during the past seven years IL has
bought from the steel corporation ten
per cent OF its total needs, while IL
has purchased thirty per cent from
competitors of the u. 8. Steel. the
balance of it's needs having been sup
piled by the Internationals subsidiar-
les corporation. the Wisconsin Steel
Co.
Prices Not High.
AS to the charge of increasing
prices. the international asserts that
instead of increasing them It's infiu-
ence has been to prevent increases
that the self binder sells at very
low price, relatively lower than that of
any other farm implement or machine;
that the selling prices are freely fixed
by dealers and that the terms OF credit.
facilities furnished and expert service.
are more liberal than ever before; that
although the price of raw materials
has increased more than thirty per
cent it's prices were not increased un-
I'll 1908. and then only seven per cent;
and that for 1912 reduction OF i've
per cent was announced last MONTH.
on the subject of foreign prices the
international denies that perennial
falsehood that agricultural implements
are sold abroad cheaper than at
home" and declares the governments
own investigation. published In the
daily consular and trade reports of
February. March and April. 1909,
shows that the prices for the six
loot binder. which sold I'm America for
$l25, are as follows: France. sl73.7O;
Germany, $4,000; Denmark, $4,000;
South Russia, s16S.95; and Great Brit
ain, s135.16. and that "the net prices
received by the American manufac-
turer are greater on the machines sold
abroad than at home"
Company Not Trust.
As to the charges that the Interna-
tional Is n trust the reply is that II
was not a merger OF existing corpor-
ations. but new one In which $780,
ooo'oOO were invested by persons not
heretofore In the harvester business;
'hat II has owned and operated "all
properties purchased without the In.
nuence or control of any of the old