Daily capital journal. (Salem, Oregon) 1903-1919, 1912-05-09
President Mccormick Makes a
Reply to Charges.
he DEFENDS THE ORGANIZATION
zASSsl
Statement Issued In Connection with
the Governments Suit to Dis.
solve international Har-
Vester Company.

Mimi. April 30, against the lnterna-
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 relefs 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 its 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. It
had no water in its capitalization, and
it has earned only reasonable return
on its capital, than Z per cent
per annum on the average. The prices
of its machines are now substantially
the same as in 1902, Notwithstanding
an increase Of 3 per cent in raw ma.
terial prices and 30 per cent in wages.
The company has caused a 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 S42,0OO,OO0 1t has not sold cheap
er abroad than at home. Its treatment
of its customers, its employees, its
agents and its competitors has been
in accord with the highest standard
of ethics and honorable business meth
ods. To the farmers it has given bet
ter service and better machines; to
agents and dealers, a less hazardous
and fluctuating business and to its EN-.
ployes ii has given higher wages, i'm
proved and sanitary working condi.
tions, insurance against sickness, ac.
cident and old age, and a share in the
| profits.
1.-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:
"'On the whole the evidence shows
that the International Harvester COM
pany has not used its power to oppress
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, and
respondent has brought other farm i'm
plements into trade
1.-The evidence also shows that the
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
we're violating no law, If under later
decisions it should be held that the
law was violated, it 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-
tion, and furnished all iuforma ion re-
quested. No suggestion Of any change
in its business methods has been made
to It by the government a. any time.
Recently, a full and frank discussion
Of the whole situation has been had
between the representatives Of the gov.
ernment and the company, in an hon
est desire upon both sides to avoid
litigation. Some plan may yet be
found which will obviate the necersity
Of any protracted litigation by salts
flying the claims made under the Sher-
man act without seriously impairing
the economic advan ages and benefits
secured by the organization Of this
company No form of reorganization
however was suggested by the govern
ment which seemed practically pos
slbe
THE government has been careful
to avoid embarrassment to the foreign
business from the litigation; the bill
makes no attack upon, and seeks nc
change in, the export business Of the
company The filing Of the bill will
In no way interfere with the company's
carrying on It's business the same as
heretofore"
-s-h-s--
A mans conscience is a sort OF
alarm clock, that he expects his wife