New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-09-18
HARVESTER HEADS TRY
TO SHOW COMPETITION
Sales Company Made Only
$4,000 on $780, 100000
Business Last Year.
NEVER PAID A DIVIDEND
international Harvester oom-
pany Of New Jersey Made
All the Money, Witness
Tells at Hearing.

Chicago, Sept. T-Although X SOLO
500 op,0O worth Of farm implements the
international Harvester Company OF
America last year made only $4,000 IN
profits, or ffteen-hundredths or per
cent, according 70 r, G. Haskins' the
president, who testified to-day before q
special examiner in the governments sun
to dissolve the corporation under the
Sherman antitrust law.
Questions were asked by the govern
rnet,t attorneys 70 show that the Interna-
tionsI Harvester Company OF America
~ss merely the selling agent Oh the In
transitional Harvester Company OF new
Jersey. and thst the latter company was
10 make all the money.
us Il not your object TO buy from the
New Jersey corporation at such a price
A. will enable you TO sell 30 that you
will have neither loss nor proht'
asked Edwin p. 0rosvenor, special As
sistant Attorney General.
"Our object is to buy as cheaply as we
can and 70 make as much as possible
We try TO buy from the New Jersey COM
pany at prices we would get from any
other company" replied Mr.. Haskins
But you never have paid a diStdend?'
mo, we never have"
Most Of to-dsy's session waS devoted 70
Describing technical features Of farm I'M
elements. Mr.. Haskins related the meth
DDS Of sale 70 farmers IN answer TO the
governments charge that as trust the
Harvester company maintained prices
"to the serious injury OF the farmer"
Spent Earnings for Advertising.
The witness said the company sold TO
agents with q per cent discount for
cash, and the agent by adding his profit
determined the price the farmer was 10
pay. One reason, Dir. Haskins explained.
why the sales company made only noO,oW
while Il sold s100,0o0GO worth OF inple-
inepts, was that II was constantly e1'
psndng It's business and expendins large
amounts for advertising
Government attorneys presented what
purported to be an original agreement By
which George w. Perkins, Cyrus Il. NC
Corroick and Charles Deering formed
''voting trust" which placed them In abso-
lutte control Of the s140,0o0,000 corpora
ton. The agreement, dated August IL,
1902, was for ten years. II expired only
a few weeks ago. II was introduced In
testimony TO show that these three men
had had turned over TO them all the stock.
so they had the sole voting power OF the
corporation.
Another exhibit purported to show that
Mr.. Perkins was chairman OF the corpo-
ratlon's finance committee, and that OF the
ak members OF that committee four were
directors In the United States Steel Cor
poration and members Of the Steel Cor
poration's finance COMMITTEES, a. follows: :
f. II. Gary, Norman b. ResIn. George f.
Baker and Mr.. Perkins.
Three Hold Al Company's Stock.
Another exhibit tended to show that Mr..
Perkins, Cyrus H Mccormick and Charles
DeerinR held all stock Of the International
Harvester Company OF America, the sell
ting company of the International Harvest
ct Company Of New Jersey.
Grasshoppsrs and crickets cost the Har-
vester company moro than 100000 Clar-
ence g. Funk. general manager of the
company, declared. In answer to the gov
srnment's charges that the company
nlonopolized the binder twine business.
thus compelling the farmer to Day high
prices. he declared the company had at
tempted TO produce a superior binder
Irvine out Of fax.
There was so much sweetness left in
the Irvine THAI the graeshoppsrs and
cYaekets feeding on 10 became a pest
said Mr.. Funk. I'VE conducted expert
rnenH and expended 100000 10 trying
10 furnish the farmer with a suitable
twtnA"
Analysing the business Of his competi-
tors Mr.. Funk testified there hardly was
q farm implement In whose manufacture
and sale competition did not exist A.
showing the company had competition.
Mr.. Funk declared there were from
three to seventy-nve firms manufacture
ing farm implements.
I'VE have from forty to nifty compet-
tors selling corn Shelters" he said;
twenty-five producing motor vehicles,
ssysnty.fve producing cultivstors, fifteen
producing corn huskers and three pro-
dueins rsApers The field Is pretty well
covered by competitors"
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