Connecticut western news., 1912-05-09
President Mccormick Makes a
 Reply to Charges.
HE DEFENDS THE ORGANIZATION
Statement Issued In Connection with the Governments Suit to Dis- solve International liar.
 vester Company.

The government filed a dissolution suit In the federal court at St. Paul, Minn., April 30, against the Interna- ttonal Harvester company, alleging violation of the Sherman law and mak- ing the general charges that are cus- tomary in bill of this kind and ask ing for whatever reliefs are consid- cred necessary by the court The bill is very long one and therefore can not be reproduced, but 1t sets forth, in effect, that the Harvester company Is a monopoly In restraint of trade, has used oppressive methods In fore ing it's 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 it's capitalization, and it has earned only reasonable return on it's capital,-less than per cent per annum on the average. The prices of its machines are now substantially the same as in 1902, notwithstanding an increase of 15 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. It has in creased the foreign trade in agricul- tural implements four-fold in nine years; it's foreign sales in 1911 were over $42,O00,000. It has not sold cheap CT abroad than at home. It's treatment of it's customers, it's employees, it's agents and it's 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, less hazardous and fuctuating business and to its em- ployes 1t has given higher wages, im- proved and sanitary working condi- tions, insurance against sickness, ac- cident and old age, and a 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. 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 it's 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"
 "'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 were violating no law. If under later decisions 1t should be held that the law was violated, 1t could only be through the creat-2n 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 information re- | Quested. No suggestion of any change in its business methods has been made to 1t by the government at any time. Recently, 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 necessity of any protracted litigation by satis- flying the claims made under the Sher- man act without seriously impairing the economic advantages and benefits secured by the organization of this company. No form of reorganization, however, was suggested by the govern ment which seemed practically pos sible.
 "The government has been careful to avoid embarrassment to the foreign business from the litigation; the bill makes no attack upon, and seeks no change in, the export business of the company. The filing of the bill will in no way interfere with the company's carrying on its business the sams as