The Pickens sentinel. (Pickens, S.C.) 1911-2016, 1912-05-23
INTERNATIONAL
HARVESTER CASE
President Mccormick Makes a
Reply to Charges.
He DEFENDS THE ORGANIZATION
Statements Issued in connectlea with
tie Governments Suit to Dis
solve international Har-
sester Company.
He DEFENDS THE ORGANIZATION

4,
The government sled a dissolution
suit In the federal court at St. Paul,
Mimi, April so. against the Interna-
tional Harvester company, alleging
violation OF the Sherman law and max.
Ing the general charges that are Gus
tcmary 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 it sets forth,
in effect, that the Harvester company
is monopoly in restraint Of trade,
has used oppressive methods in fore
Ing its 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 Its 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 Is per cent in raw ma
terial prices and 80 per cent in wages.
The company has caused 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; its foreign sales in 1911 were
over s42,000,0c9. It has not sold cheap
er abroad than at home. It's treatment
OF its customers. its 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 machines; to
agents and dealers. less hazardous
and fuctueting business and TO its en-
ployes it has given higher wages. i'm
proved and sanitary working condi-
ticns, insurance against sickness, ac-
cicent and cid age. and share in the
profits.
The oharscs CT misconduct found
in TIE t::::i have been met and dis
proved by tie coIrapy in other cases;
aid they will again fail, because they
are untrue. The supreme court Of
Missouri. II suit in which those
charges were fully :cne into, said:
".On TIC whole, the evidence shows
that the International Harvester COM
pany has rot used is power to oppress
or injuro TIE farncls who are its Gus
toners"
And again:
1.-The price Of harvesting machines
has not increased in proportion to the
increased cost of construction CT 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 py 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 thia company
acted under the advice Of able counsel,
and In the sincere belief that they
were violating no law. II under later
decisions it should be held that the
law was violated. it could only be
through the creation of 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
ali it's books and records for inspec-
ton. and furnished all information re-
Quested. No suggestion OF an! change
n its business methods has been made
to 1t by the government at any time.
Recently, a full and frank discussion
Of the whole situation has been had
between the representatives OF tho gov
ernment and the company, n al bon
est desire upon both sides to avoid
litigation. Some plan may yes be
found which will obviate the necessity
Of any pre1'acted litigation By satie-
tying the claims made under the Shef-
man act without seriously tnDairing
the economic ad7an ages and benefits
secured by the organization OF this
company. No form nf reorganization.
however. was suggested By the govern
rlcnt which seemed practically pos
s5;e.
"The government he's been careful
to avoid embarrassre:!: tG The foreign
business from the lf;:sst: a. the bill
makes no attack upon. a:d seeks no
change in, the export hls:ress OF the
company. The fling CT ;he bill will
in ro way interfere with the companys
carrying on its business the same as
heretofore"