The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1912-05-09
President,kcc ormick sa.akes q
t.ep.y to Cn1, ,;cs.
ne DEFENDS THE ORGANIZATION
Statement issued in Connection with
the Governments Suit to OLE
solve International Han
vsster Company.

I. liz
Mimi. April 30, against the Interna-
tional Harvester company, alleging
violation Of the Sherman law and max
ing the general charges that are Gus
tomary in bill Of this kind. and ask
ing for whatever reliefs are consid-
cred necessary by the court The bill
Is q very long one and therefore can
not be reproduced, but It sets forth,
In effect, that the Harvester company
10 4 monopoly in restraint OF trade,
has used oppressive methods in fore
ing its agents to handle it's 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. capitalization, and
1t has earned only 4 reasonable return
on its 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 IS per cent in raw ma.
terial prices and 80 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 ag-icul
turaI implements four-fold in nine
years; its foreign sales in 1911 were
over $42,9oO,O0 1t has not sold cheap
er abroad than at home. Its treatment
Of it's customers. it's employees, its
agents and its competitors has been
in accord with the highest standard
of ethics and honorable business meth
DDS. To the farmers it has given bet
ter service and better machiaso; to
agents and dealers, a less hasardous
and nuctuating business and to ito EN-.
ployes it has given higher wages, i'm
proved and sanitary working eondi-
tions insurance against sickness, 40
cident and old age. and 4 share in the
profits. z
Tho charges of misconduct found
In the bill have been met and dis
proved by tho company in other cases;
vii foj1
are untrue. The supreme court Of
Missouri. in a suit in which those
charges were fully gone into, said:
Ion the whole, the evidence shows
that the In irrational Harvester COM
pany has not used its power to oppress
or injure the farmers who are ito Gus
toners"
"And again: t
Tho price OF harvesting machines
has not Increased in proportion to the
increased cost OF cons ruc,ion 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 abe counsel,
and In the sincere belief that they
were violating no law. II under later
decisions it should be held that tho
law was violated; lit could only bs
through the creation Of power to op-
press which has never been exercised
More than six years ago the com
Dany asked for its investigation BY the
United States government, and opened
oil its books and records for iIspec-
den. and furnished all Information re-
'auested. No suggestion Of any change
IN It's 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
eminent and ths company, in an hen
! est desire upon both sides to avoid
litigation. Some plan may yet BE-
/
Of any protracted litigation BY salts
tying the claims made under the ShsT-
nan act without seriously imDairins
the economic advantages and Dement'S
secured by the organization Of this
company No form Of reorganization
However, was suggested by the govern
mont which seemed practically pes-
able
The government has been careful
- avoid embarrassment to the foreign
business from the litigation: the bill
makes no at ack upon and seeks nc
change in, the export business Of the
company. The fling of the bill Will
n no way interfere with the company's
carrying on its business the same q
] heretofore" .---l .. 55i !.