Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-08-06
CHARGE IS. DENIED
International Harvester Com
pany Replies to Bill.
NO MONOPOLY, IT is SAID
Concern Formed to Bring About
Large Economies.
COMPETITORS NOT DRIVEN OUT
Liberal Plan Of Workmen's Compen-
sation Put Into Effect,
It Is Declared.
COMPETITORS NOT DRIVEN OUT

he answer OIL the international liar
yester Company to the bill filed by the
United States under the Sherman anti
trust law was filed in the United States
district court at ST. Paul yesterday.
The answer denies specifically all
charges of restraint of trade, monopoly
and unfair business practices. 1t alleges
that prior to the formation of the COM
pany in 1902 the harvester business had
been conducted in wasteful manner,
detrimental alike to manufacturers, re-
tail dealers and consumers; that only the
two largest manufacturers had profitable
businesses, while the business Of others
was decreasing and becoming hazardous
and Improbable.
The International Harvester Company,
it is stated, was not an unlawful COM
bination, but a new company formed,
with ample capital. in order to secure
large economies in the agricultural imple-
ment business, by producing more cheap
ly the raw materials, by charging ia
cilities and correcting wasteful methods
of distribution, by expanding the foreign
trade and by better organized expert
mental and inspection departments
The company's commercial power has
been used not only for the benefit of it's
stockholders, but also for the benefit of
the farmers and dealers, and of Its en-
ployes; and the taking on of new lines
of manufacture, such as gasoline engines.
tractors, auto wagons, farm wagons,
cream separators and manure spreaders,
has resulted in the business as a whole
being conducted more economically, and
in fostering. instead of restraining, trade.
1T Is asserted.
Statement of Profits.
The detailed statement of earnings and
profits contained in the answer shows
that during the first eight years the
dividends paid averaged only 5.82 per
cent on the fully paid capital stock, and
the total earnings only 7.15 per cent, and
that the main expansion in the company s
business has been gained in the new lines
OF implements and the foreign trade,
which has increased from about $1O,OO0,-
900 In 1908 to more than $42,O0O.OOO in
1911.
1t is held that the company has active
and increasing competition, the number
of competitors in binders being eight.
with an aggregate capital Of more than
$1OO,DVO,OOU. and in other lines the COM
petitors numbering from IA mowers to
Isl in gasoline engines.
The answer declares that the prices of
harvesting machinery have increased
about per cent over 1902. while the ma
chimes have been improved in quality,
and the materials and labor entering into
their manufacture have increased on an
average % per cent.
Lower Price for Irvine.
As to binder Irvine, the answer asserts
that since the company was formed the
wholesale price of sisal Irvine has fallen
from IL to 6Ia cents pound, and of
manila Irvine from 1872 to rs cents a
pound; further, that the company has ex-
pended more than a million dollars in the
effort to produce binder Irvine from Amer
ican,grown flax. which. if successful.
would have kept within the United States
$2O.OOO,NO now expended annually for
imported sisal and manila fibers.
The answer alleges the company spends
In developing and improving machines an
nually $JD0,UCO a cost which none of the
old companies would have sustained
The wages and conditions OF It's en-
ployes. the answer says. have been i'm
proved by the Harvester company to an
extent impossible under trade conditions
existing prior to 1892: wages have been
increased fully u per cent: profit-sharing
systems have been established; sanitary
and safety appliances installed: a liberal
plan Of workmen's compensation put into
effect. with a benefit department pro-
viding sick and death benefits for en-
ployes and generous pension system.
Wide Publicity Given.
1t is further declared that the company
has given wide publicity to it's business,
and In 1906 invited full investigation by
the Department Of Commerce and Labor:
that since 1907 the bureau of corporations
has been given free access to it's books
and records, and every facility for OBJ
tanning complete information as to it's
business policies and methods: that since
1907 the company has filed with the bu-
reau of corporations its annual reports,
covering all it's business operations, and
that 1t welcomes the utmost publicity and
public supervision. and is ready and de-
sirQus of renedying any defects or mis-
management in it's business; that relying
upon the advice of able legal counsel as
TO the entire legality Of it's organization.
the company had made enormous invest
nnents in developing it's foreign and do
nestle trade, and that its stock has been
purchased by the general public and by
more than 1900 employees. who have re-
ceived stock under the company's profit
sharing plans.
The answer ayers that, considering the
capital invested and the hazards OF the
business, the company's earnings have
been reasonable and much smaller than