The pioneer express., 1912-05-10
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Reply 70 Cha
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ne DEFENDS / IHE ORGANIZATION
va 49,. ,S
Statement Issued In connsctlsn with
The oovsrnmsent's suit to ols.
solve international tar.
vester Company.
|AED EDEFENOS THE ORGANIZATION

The government filed q, dissolution
suit IN the federal court at ST. Paul,
Mimi. April 80. against the Interna-
ttonal Harvester company, alleging
violation Of the Sherman law and max
Ing the general charges that are cus-
tomary in q bill Of this kind, and ask
ing for whatever reliefs are consid-
cred necessary by the court. The bill
is q very long one and therefore can
not be reproduced. but it sets forth,
In effect, that the Harvester company
is q monopoly in restraint of trade.
has used oppressive methods in fore.
ing it's agents to handle its goods ex-
clusively, ETC. To these charges Pres
ident Mccormick has made the fol-
lowing reply:
THE International Harvester case
differs radically in it's facts from all
the so-called trust cases heretofore
decided under the Sherman law. The
International Harvester company was
organized in 1902 for the purpose Of
securing economy in the manufacture
and sale Of harvesting machinery, and
Of Increasing the foreign trade. It
had no water in its capitalization, and
1t has earned only reasonable return
on its capital.-less than z per cent
per annum on the average. The prices
OF its machines are now substantially
the same az IN 1902. Notwithstanding
IN increase Of Is per cent in raw ma
terial prices and 80 per cent in wages.
The company has caused . large saw
ing to American farmers in the cost
Of agricultural implements. It has in
creased the foreign trade in agricul-
tural implements four-fold in nine
years; its foreign sales in 1911 were
over $42.O00.00 It has not sold cheap
or abroad than at home. It's treatment
Of its customers. its employees, it,
agents and its competitors has been
in accord with the highest standard
Of ethics and honorable business meth,
DDS. To the farmers it has given bet
ter service and better machines: to
agents and dealers. less hazardous
and huctuating business and to its en-
ployss It has given higher wages, i'm
proved and sanitary working oondi.
tons. Insurance axainst sickness. -
cident and old age, and . share n the
profits.
"The charges of misconduct found
in the bill have been met ana ,dis.
proved By the company IN Other easso:
and they will again fail, because tAsy
are untrue. The supreme court Of
Missouri, In . suit in which those
charges were fully gone into, said:
ION the whole. the evidence shows,
that the international Harvester eo1a-
pany has mot used its power % opprsae
Or injure the farmers Who aro its eus-
TONER'S"
"And again:
The price Of harvesting machines
has not Increased In proportion to ths
increased cost Of construction OF the
increased merit Of the machines, and
respondent has brought other farm I'm
plements into trade"
z 'rhS svidsnce also shows that the.
machines manufactured ~ the Intsr-
national Harvester company have been
greatly improved In quality ana the
item Of repair material has been ~
duced IN price and placed within closer
reach Of the farmer
''The organizers Of this company
acted under the advice Of able counsel,
and in the sincere belief that they
were violating no law. II under later
decisions It should be held that the
law was violated, It could only 30
through the creation Of power to op-
press which has never bsen sxereised.
/. "More than nix years ago tho COM
pany asked for IT. investigation BY the
United States government, and opened
,,all its books and records for inspsc-
.tion, and furnished Ill Information re-
.iquested. No guggsstion Of any change
lin tt business methods has bsen nsdo
to Il BY the government at any time.
Recently, . full and frank discussion
lot the whole situation has been had
between the representatives Of the eov.
tsrnment and the company, IN an hon
sst desire upon both Sides TO avoid
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