Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1912-08-06
HARVESTER" SAYS LAWFUL.
Machinery Concern Declares It is Not
Organized in Restraint Of Trade.

Organized in Restraint OF Trade.
ST Paul, Aug s-The answer of the
International Harvester Company to
the bill filed by the United States I'M
der the Sherman antitrust law wis
filed in the United States district court
at St. Paul.
The answer denies specifically all
charges Of restraint of trade. monop-
oily, and unfair business practices. 1t
alleges that prior to the formation OF
the company in 1902, the harvester
business had been conducted In
wasteful manner detrimental alike to
manufacturers, retail dealers, and con-
sumers: that only the two largest
manufacturers had profitable bust
ness, while the business Of others was
decreasing and becoming hazardous
and Improbable.
The International Harvester Com
pany, it is stated, was not an unlawful
combination, but new company
formed, with ample capital. in order to
secure large economies in the agricul-
tural implement business, by producing
more cheaply the raw materials, by en-
larging facilities. and correcting waste
full methods of distribution. by expand
ing the foreign trade, and by better
organized experimental and inspection
departments.
The company's commercial power
has been used not only for the benefit
Of it's stockholders. but for the benefit
of the farmers and dealers and Of its
employees, and the taking on Of new
lines Of manufacture, such as gasolene
engines, tractors, auto wagons. farm
suited in the business as whole being
conducted more economically and in
fostering instead Of restraining trade,
it is asserted.
Any monopoly thru patents is de-
MED on the ground that the basic pat
ents on binders and mowers expired
prior to 1902.
The detailed statement Of earnings
and profits contained in the answer
shows that during the first eight years
the dividends paid averaged only 5.92
per cent on the fully paid capital stock
and the total earnings only 7.15 per
cent, and that the main expansion Of
the company's business has been
gained in the new lines of implements
and the foreign trade, which has in
creased from about s1o,o00,000 in 1909
to over $4,000. 900 in 1911.
1t is held that the company has ac-
tive and increasing competition. the
number Of competitors in binders being
eight, with an aggregate capital OF
over $105 ,056 600 and IL other lines the
competitors numbering from fourteen
! in mowers to 1s1 in gasolene engines.
The answer alleges the company
spends in developing and improving
machines annually 100000, cost
which none OF the old companies would
have sustained. BY producing its own
| lumber, iron and steel. the company
| says it can select materials of the par
ticu1ar quality best adapted to the ma
chimes, thus increasing their strength
without increasing the cost.
| The wages and conditions OF its en-
ployes. the answer says, have been i'm :
proved by the harvester company to an
extent impossible under trade condi-
tons existing prior to 1902: wages
have been increased fully % per cent
| profit sharing systems have been es-
/ tablished, sanitary and safety appli-
ances installed. a liberal plan Of work.
| mems compensation put into effect,
with a benefit department providing
sick and death benefits for employees
and generous pension system.