The Marshall republican., 1912-05-10
President Mccormick Makes Z
Reply to Charges.
he DEFENDS THE ORGANIZATION
statement issued In Connection with
the Governments Suit 10 Dis
solve international Mar.
vester Company.

Nv Nti tDuFt ~ d. fHnL
MINI. April 20. against the Interna-
tional Harvester company. alleging
violation OF the Sherman law and max
ing the general charges that are Gus
tomary in a bill of this kind. and ask
ing for whatever reliefs. are consld-
cred necessary by the court. The bin
is a very long one and therefore can
not be reproduced, but IL sets forth.
IN effect. that the Harvester company
is a monopoly in restraint Of trade.
hos used oppressive methods in forc-
Ing It's agents TO handle its goods ex-
olusively, etc. To these charges Pres
ident Mccormick has made the fol-
lowing reply:
The International Harvester case
differs radically in its facts from all
the so-called 'trnst' 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
=" "'s'"ohhF wv lVlffhU NFduts u
had no water In its capitalization. ana
u has earned only a reasonable return
on lis capital.-less than z per cent
PER annum on the average. The prices
OF It's machines are nov substantially
tae same as in 1902. Notwithstanding
m increase Of ~ per cent In raw ma.
terial prices and 30 per cent in wages.
The company has caused n large saw.
ing TO American farmers In the cost
OF agricultural implements. II has in
creased the foreign trade In agrlcuL
trral implements four.fold IN nine
years; its foreign sales in 1871 were
over si2,O 900. 200. II has not sold cheaa.
or abroad than at home. It's treatment
Of It's customers. It's employees. It's
agents and it's competitors has been
In accord with The highest standard
Of ethics and honorable business meth
DDS. To the farmers IL has given bet
ter service and better machines: 70
agents and dealers. a less hazardous
and fiuctuating business and 10 Its en-
ployes Il has given higher wages. i'm
proved and sanitary working condl.
tons, insurance against sickness. ac-
cident and old age, and n share In the
profits.
The charges OF misconduct found
In the bill hav been met and dis
proved by the company in other cases:
and they will again fall, because they
are untrue. The supreme court Of
Missouri. In a suit In which those
charges were fully eone intoy said;
ION the whole. the evidence shows
that the International Harvester COM
pany has not used It's power TO Cypress
or injure the farmers who are its Gus
toners"
And again:
The price OF harvesting machines
has not increased in proportion to the
Increased cost OF construction or the
increased merit OF the machines, anS
respondent has brought other farm i'm
plements into trade"
The evidence also shows that the
machines manufactured by the Inter-
national Harvester company have beep
greatly improved In quality and the
item OF repair material has been re-
duoed 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
we're violating no law. IL under later
decisions IL should be held that thu
law Was violated. IL could only be
through the creation OF a power TO OPP
press which has never been exercised
More h six years ago the COM
pany asked for Its investigation by the
United States government, and opened
all its books and records for inspee-
ton, and furnished all information re-
quested. n o suggestion OF any change
In Its business methods has been made
10 II by the government at any time.
Recently, a full and frank discussion
OF the whole situation has been had
between the representatives Of the gov
eminent and the company. IN an hon
est desire upon both sides to avoid
litigation. Some plan may yet be
found which will obviate the necessity
Of any protracted litigation by salts
Tying the claims made under the Sher-
man act without seriously impairing
the economic advantages and benefits
secured by the organization Of this
company. No form Of reorganization,
however, was suggested by the govern
ment which seemed practically pos
sable.
THE government has been careful
TO avoid embarrassment to the foreign
business from the litigation; the bill
makes no attack upon and seeks no
change In. the export business OF the
company. The fling OF the bill win
10 no way interfere with the company's
carrying on Its business the same -
heretofore"