New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-08-06
HARVESTER Co. DENIES
Says 1t Is Not a Monopoly IN
Restraint of Trade.
PLEADS SMALL PROFITS
Difference Between It and IL
legal Trusts, Answer to
u. S. Suit Asserts.

St. Paul. Aug. "a specific denial Of
all charges Of restraint Of trade. mo7op-
oily and unfair dealing is made In the
answer OF the International Harveste.
Company 10 the suit begun in the federal
court by the United States under the
Sherman antitrust law. The reply OF tho
Harvester trust filed to-day. alleges
that prior TO the formation Of the COM
pany, in 1902. the Harvester business had
been conducted in a wasteful manner
detrimental alike 10 manufacturers re-
tail dealers and consumers, and that only
the two largest manufacturers were oper-
ating at a profit
The International Harvester Company,
IL Is stated. was not an unlawful com
bination, but a new company with ample
capital formed 10 secure large economies
In the agricultural implement business oy
producing mere cheaply the raw mate
rails, by charging facilities and correct
Ing wasteful methods OF distribution. by
expanding the foreign trade and by better
organized experimental and inspection de-
partments.
The company's commercial power has
been used not only for the benefit OF its
stockholders, but for the benefit OF farm
ers and dealers and Of its employees,
and for the taking on of new lines OK
manufacture. with the result that trade
has been fostered, not restrained, II IS
asserted. Any monopoly through patents
is denied on the ground that the oasic
binders nd aYn1re1
prior to 1902.
The detailed statement OF earnings ana
prohts con aimed IN the an wer SHOWS that
during the first eight years the dividends
paid averaged only 92 per cent on the
fully paid capital stock and the total
earnings only 7l5 per cent. and that the
main expansion in the company's busi-
ness has been In the new lines u imple-
ments and the foreign trade. which has
increased from about 100000 In l91 10
over {i200O,Oo0 In 1911.
1t Is held that the company has active
and Increasing competition. the number
OF com; ei o. in bind re- being eight, with
al aggregate capital or over $l0o.oo,oc0.
and IN other lines the competitors num-
being from ~ In mowers 70 Isl in gaso-
leue engines
The answer declares that the prices OF
harvesting machinery have increased
about ? per cent over 1872, while the ma
chimes have been improved IN quality
and the materials and labor entering into
their manufacture have increased on IN
avsrare Of 3 per cent
IS 10 binder tvine, the answer asserts
that since the company was formed the
wholesale price OF slsei tWine has fallen
from n 20 81 cents a pound and Vi
manila Irvine from 80. cents 10 rs cent?
a pound. further that tie company has
expended more than million dollars n
the effort 20 produce binder Irvine from
American grown fax, which. II SUCCESS
ful. would have kept In ,ho United States
scD.0occoo now expended annually FOR I'M
ported sisnl and manila fbres.
The answer alleges the company opefds
IN developing and improving machines an
nually 5000 The wages and conditions
of rs employees. the answer says. have
been improved by the Harvester COM
pany 20 an extent impossible under trade
conditions existing prior 10 l9J2. wages
have been increased tully = per cent
II Is further declared tina, the company
has given wide publicity 10 its business.
aud IN letG invited a full ,stigatlon b.
the Department OF Commerce and Labor.
that since 1917 the Bureau OF Corpora
lions has been given free access 70 It's
books and records, and that since 1891 the
company has sled with the Bureau OF
Corporations It's annual report covering
al It's business operations.
The answer AYERS that, considering the
capital Invested and the hazards OF the
business, the company's earnings have
been reasonable and much smaller than
the average profits OF manufacturing
companies; that the public and employees
are receiving the benefits OF the large
economies and increased efficiency. that
there IL a difference between the Har-
vester company and Illegal trusts and
combinations. and that the companies or
ganized without excessive capitalization
and without any purpose OF creating a
monopoly
The answer insists that the United
States government, having had for ten
years full knowledge OF the company's
organization and methods, ought not,
after thousands OF employees and others
have made large investments In It's stock.
be permitted in a court OF equity 10 urge
that the corporation Is Illegal and should
be destroyed