The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1912-08-05
HARVESTER TRUST
MADE A DENIAL
Continued From Page one.
instead Of restraining trade. it is as

instead of restraining trade. it is as
serted.
Amy monopoly through patents is
denied on the ground that the basic
patents on binders and W ex-
pired prior to 1902.
The detailed statement Of earnings
and profits contained in the answer
shows that, during the first eight
years, the dividends paid averaged only
500 per cent on the fully paid capital
stock and the total earnings only Ills
per CEN and that the main expansion
in the company's business has been
gained in the new lines of implements
and the foreign trade, which has in
creased from about so, 900, 900 in 1903
to over $42, 600, 900 in 1911.
1t is held that the company has
active and increasing competition, the
number of competitors in binders be-
ing eight, with an aggregate capital
of over 500, 000, 600, and in other lines
the competitors numbering from four
teen in mowers to1S1 in gasoline en-
gines.
The answer declares that the prices
of harvesting machinery have increas-
ed about 2 per cent over 1902, while
the machines have been improved in
quality and the materials and labor
entering into their manufacture have
increased on an average Of % per
cent. ...
AS to binder Irvine, the answer as
serts that since the company was
formed, the wholesale price of sisal
twine has fallen from IL to 6h cents
a pound, and of manila Irvine from
1914 cents to 7B cents a pound;
further, that the company has expend-
ed more than $1,000,00O in the
effort to produce binder Irvine from
American grown fax, which, If sue
cessful, would have kept within the
United States, twenty millions Of dol
lars now expended annually for i'm
ported sisal and manila fibres.
The answer alleges the company
spends in developing and improving
machines annually $500, 900, a cost
which none of the old companies wouIo
have sustained. BY producing its owT
lumber, iron and steel, the company
says it can select materials Of the
particular quality best adapted to the
machines, thus increasing theil
strength without increasing the cost
Wages improved.
The wages and conditions Of its
employees, the answer says, have beer
improved by the harvester company
to an extent impossible under trade
conditions existing prior to 1902
wage have been increased fully g
| per cent; profit-sharing systems have
| been established; sanitary and safety
appliances installed; a liberal plan o.
workmen's compensation put into ef'
feet, with a benefit department pro-
viding sick and death benefits fol
employees and a general pension sys'
| tenn.
1t is further declared that the com
pany has given wide publicity to it
business and in 1905, invited a full In
commerce and labor; that since 1907
the bureau of corporations has beer
given free access to its books an
records and every facility for obtain
ing complete information as to 1T
business policies and methods; tina
since 1907, the company has filed will
the bureau of corporations it's an
nual reports covering all its business
| operations n that 1t welcomes tn
| utmost publicity and public supervi
| sion, and is ready, and is DESTROYS, o
remedying any defects or mismanage
| ment in its business; that relyinI
upon the advice of able legal couns
as to the entire legality of its or
g~anization, the company had mad
| enormous investments in developing
it's foreign and domestic trade, an,
TlaL ILS STOCK mas DSSn %.
the general public and by more thai
| $500 employees who have receives
stock under the company's proft-shar
ing plans.
The answer AYERS that considering
the capital invested and the hazard
/ Of the business, the company's earn
ings have been reasonable and mucl
| smaller than the average manufac
turing companies; that the public an,
AVE- vAnAsxfa- Ahn hAnAAf
| of the large economics and increase
| efficiency resulting from the organi
zation; that there is a difference be
| tween the harvester company and il
legal trusts and combinations; tina
| the company Is managed by me,
whose fathers originally develope
the harvester business, and that |
was organized without excessive cap
italization, and without n purpos
of creating a monopoly or securin
quick fortunes from stock sales O
! excessive earnings. 1t is pointed GU
that during twenty years before tn
company's formation, more than fft
competitors have been eliminate
from the harvester business, and tha
since then, there has been no sue
elimination of competitors, but tha
the company's business methods hav
secured fair treatment to competitor
and has tended to foster competitio
and not to destroy it. The answer in
sists that the United States govern
ment, having had for ten years flu
knowledge of the company's organi
cation and methods and their benef
ciaf effect upon the trade and publ
ought not after thousands of en-
ployes and others have made lare
investments in it's stock, he permitte
in a court of equity to urge that til
nornarafion ia illegal and ShoT1d ?
destroyed.