Ripley County democrat., 1912-05-03
President Mccormick Makes Q
Reply to Charges.
HE DEFENDS THE ORGANIZATION
Statement Issued In Connection with
che Governments Suit to Dls-
solve international Har.
yester Company.

suit In the federal court al 81, Paul
Minn., April 30. against the lnterna-
tional Harvester company. ALLEGING
4iolatlon Of the Sherman law and max.
lag the general charges that are Gus,
tomary In 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 II sets forth.
In effect. that the Harvester company
is monopoly in restraint Of trade,
has used oppressive methods In fore
ing It's agents 10 handle its goods ex.
clusvely etc To these charges Pres.
ident Mccormick has made the fol.
lowing reply,
"The International Harvester case
differs radically in It's facts from all
the so.oalled 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 foroiFn trade. II
had no water In Us capitalization, and
II has earned only reasonable return
on Its capital, less 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 Is per cent In raw ma
terial prices and 20 per cent In wages.
The company has caused large saw
ing TO American farmers In the cost
OF agricultural implements, It has In,
creased the foreign trade In agricul
tural implements four-fold In nine
years; Its foreign sales In 1911 were
over s42,OOO,O00 1t has not sold cheap
er abroad than at home. Its treatment
OF It's customers, its employees, its
agents and its compattoS has been
IN accord with the highest standard
of ethics and honorable business meth.
dds. To the farmers II has given bet.
ter service and better machines; to
agents and dealers, 0 less hazardous
and fluctuating business and to its em-
ployes II has given higher wages. im-
proved and sanitary working condir
tions, insurance against sickness, acs
eident 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. Tho 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 Its power to oppress
or injure the farmers who are its cus-
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 im-
plements into trade"
! "'The evidence also shows that the
machines manufactured by the Inter
national Harvester company have been
.,oatIy in,nrNynd In uuaItfv mud tha
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, II under later
decisions II should be held that tn,
law was violated. II could only bs
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 th'
United States government, and oreneC
all It's books and records for inspec
tion, aud furnished all informa Ion re
auested. No suggestion OF any chang
In its business methods has been mad,
10 Il by the government at any time
Recently, a full and frank discussion
!. OF the whole situation has been ha'
J. between the representatives OF the gov
: ernment and the company. In an hon
est desire upnn both sides to avoi
litigation. Some plan may yet b
. found which will obvlate the neeessit
!. OF any protraeted litigation by salts
!. tying the claims made under the sher
s man act without seriously mhatrint
: the economic advantages and benefit
: secured by the organization Of thi
! !. company, No form Of reorganization
: : however. was suggested BY the govern
: ment which seemed practically pos
sible
: ''The government has been carefs
! 10 avoid embarrassment to the foseig
: business from the litigation, the bi
! makes no attack upon, and seeks n
: change In. the export bnsiress OF n
= company The fling OF the bill vi
: In no way Interfere with the eolnpany
carrying on its business the same