The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1912-05-06
President Mccormick Makes a
Reply to CHARGES.
HE DEFENDS The ORGANIZATION
Statement Issued I'm Connectio, with
the Governments Suit to Dis
solve international har.
vester Company.

The government filed a dissolution |
suit in the federal court at ST. Paul. |
Mimi. April 80. 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 consid- |
cred necessary by the court The bill
is a very long one and therefore can
not be reproduced, but it sets forth,
in effect. that the Harvester company
Is monopoly in restraint of trade.
has used oppressive methods in fore
ing its agents to handle it's goods ex-
clusively, 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 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. 1t
had no water in its capitalization, and
1t has earned only a reasonable return
on its capital.-less than per cent
per annum on the average. The prices
OF it's machines are now substantially
the same as in 1902, Notwithstanding
an increase OF Is per cent III 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. 1t has in
creased the foreign trade in agricul-
tural implements four-fold In nine
years; its foreign sales in 1911 were
over $42 1000, 900. It has not sold cheap
er abroad than at home It's treatment
Of its 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 it has given bet
ter service and better machines; to
agents and dealers, less hazardous
and fuctuating business and to its en-
ployes 1t has given higher wages, inn
proved and sanitary working condi.
tons. insurance against sickness, &C.
cident and old age, and share in the
profits.
THE charges of misconduct found
in the bill have been met and dis
proved by the company in other cases;
and they will again fail, because they
are untrue. The supreme court Of
Missouri, in a suit in which those
charges were fully gone into, 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 it's GUS
| toners"
| And again:
1.-The price Of harvesting machines
i has not increased in proportion to the
| increased cost of construction or the
| increased merit of the machines, and
| respondent has brought other farm i'm
| plements into trade"
1.-The evidence also shows that tie
| machines manufactured by the Inter-
| national Harvester company have been
greatly improved in quality and the
| item of repair material has been re-
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 1t should be held that the
law was violated, 1t could only be
through the creation of a power to op-
press which has never been exercised.
More than six years ago the COM
pany asked for its investigation by the
United States government, and opened
| all its books and records for inspec-
ton, and furnished all information re-
| quested. No suggestion of any change
| In its business methods has been made
to it 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
| flying 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 reorganiza ton,
| however, was suggested by the govern
| ment which seemed practically pos
| stble.
The government has been careful
to avoid embarrassment TO the foreign
| business from the litis; ion: the bill
makes no attack upon. and see!s no
change in, the export business OF the
company. The filing of the bill will
in no way interfere with the company's
carrying on its business the same a.
| heretofore"