The Yale expositor., 1912-05-16
Statement of Cyrus II. McCOr'
mick, Pres. of International
Harvester Company.

The international Harvester case
differs radically in its facts from all the
80 called "trust' cases heretofore decid
ed under the Sherman Law. The In
ternatiOnal Harvester Company was or
ganlZed In 1907 for the purpose of secur
ing economy In the manufacture and
and sale OF harvesting machinery, and
of increasing the foreign trade. II had
no water In its capitalization, and II
has earned only reasonable return on
its capital, - less then seven per cent.
per annum on the average. The prices
of its machines are now substantially
the same as in 1902, Notwithstanding an
increase of 10 per cent. in raw material
prices and 30 per cent. in wages. The
Company has caused large saving to
American farmers i'm the cost of agri-
cultural implements. 1t has increased
the foreign trade in agricultural i'm
plements fOurfOld in nine years; its for
eign sales in 1911 were over $42,0OO,000.
1t has not sold cheaper abroad then at
home. Its treatment of its customers,
its employees, its agents and its compel
itors has been in accord with the high
est standard of ethics and honorable
business methods. TO the farmer it
has given better service and better ma
chimes; to agents and dealers, a less
hazardous and fluctuating business !;
and to its employees it has given higher
wages, improved and sanitary working
conditions, insurance against sickness,
accident and old age, and share in
the profits.
The charges of misconduct found in
tha hill ha % haa,n M anH n cnrnUnA hu
the company in other cases, and they
will again fail, because they are untrue.
The Supreme Court of Missouri, in a
suit in which these charges were fully
gone into, said: "On the whole, the evil
dence shows that the International Har.
vester Company has not used its power
to Cypress or injure the farmers who
are its customers"
And again: "rhe price of harvesting
machines has not increased in proper
ton to the increased cost of cOnstruc
ton or the increased merit OF the ma
chimes, and Respondent has brought
other farm implements into trade"
"The evidence also shows that the
machines manufactured 10y the Inter
national Har, ester Company have been
greatly improved in quality and the
item of repair material has been reduced
in price and placed within closer reach
of the farmer"
The organizers of this Company act
ed under the advice of able counsel, and
in the sincere belief that they We're vi
Olating no law. If under later decisions
ii should be held that the law was VIC
lated, it could only be through the ere
alton of power to Cypress which has
never been exercised
More than six years ago the Company
asked for its investigation by the Unit
ed States Government, and opened all
its books and records for inspection and
furnished all information requested No
suggestion Of any change i'm 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 made between the
representatives of the government and
Company, in an honest desire upon both
sides to avoid litigation. Some plan
may yet be found which will Obviate
the necessity of any prOtracted litigation
by satisfying the claims made under
the Sherman Act without seriously
lmpairing the economic advantages
and benefits secured by the organiZa
ton of this Company. No form of re-
organization, however, was suggested
by the Government which seemed prac-
tically possible.
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 filing of the bill will in
no way interfere with the Company's
carrying on its business as heretofore.