The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-03-03
POWER OF HARVESTER
L RUST is MONOPOLY
Commissioner Conant Makes Report on Operations
Of Giant Corporation Tells of It's Practi-
cal Control and Business Methods

/ terms" Mr.. Conant continues have
| been reported In q i7IlnDtr OF Instances,
| out tho general policy OF the COM
pany is to maintain high prices in the
| monopolfzod fines; IN the principal
new lines however where considerable
competition is encountered, unusually
low prices and long terms have been
generally employed
Another rather general complaint is
that statesmen OF the International
harvester Company represent that
purchasers OF competing lines of har-
Vesting machines will be unable to Sc
cure repair parts. Il matter Of much
practical Importance. Officers OF the
International Harvester Company ad-
init that this was ut ono time Il com
mon characteristic of competition in
the harvesting machine industry. but
mat tho company is opposed To the
practice and has used active efforts
10 eliminate 1t. Tho bureau, however.
received rather numerous complaints
OF this character.
The company at ono time openly
attempted through clause in IT'S com
mission contracts. to control the price
paid for it's machines by tho farmer
10 tho retail dealer. Since tho elimi-
nation of this clause. 'suggestcd. re-
tail price lists have been rather gen
orally circulated by some Of its branch
indirectly maintaining the retail price.
although the company contends that
these lists arc intended for the uso oil
It's employees in furnishing information
to purchasers and processes to dis
courage their issuance TO dealers II
ts evident, however. that il could com
pletely stop this practice II 1t really
wished to-"
New Competition.
significance has begun to appear. the
commissioner points out that the com
bintion in 1911 still had about So per
cent OF the production OF binders. ~
per cent of the production Of mowers
and ~ per cent of tho production OF
rakes In manure spreadcrs, he adds.
II appears to have over one-half of the
business. in disk harrows. approx
mateiy 40 per cent, and to be increas-
| ing Its proportion I several other
ines' such as wagons and gasolcne en-
gines.
The extraordinary over-ca pitaljaz-
ZION which characterized most OF the
large industrial consultations of tho
period 1888 TO 1901" was absent i'm Tho
case of the international Harvester
Company, says Mr. Conant. The oriri
nal capital of 100 OOO 600 included ,so
100000 in cash and SEQ, Oooooo renre-
schuns the appraisal value OF plants
inventions, etc. Ute commissioner
points out several alleged excessive
/ valuations. but says that the value of
inc properties plus the cash capital Gov.
cred substantially 30 per cent Of Tho
capital stock issued. aud holds that a
tair valuation for good Will ,ybich
was not Included in the assets. would
likely met the remaining 10 per cent
Excessive valuation. the commits
placed upon the orc leases of tho Taar
lnS Harvester Company 1t was ~
praised at S7.963,750 estimated nv AIR
1onaht 10 nave been yer S70O0OOO too
| hish at the time. These ore val,Ia-
lions. he adds. caused much dissas;s
!sct'oh among the combining interests
themselves especially the McCormicks
II is important TO consider" the re
port declares, that the bankers WIZ
dominated the Organization Of the In,
o ~, m"tionai harvester Company. also
| organized the United States Stee,. 60
noration officers of which had onI,.
rev weeks before in ip,nor,'
litigation then pending against that
company, submitted anldayits IN ~
ELECT tnat the value ~f its ore. takine
was T'oo.Ooo,oO or approXimateIv 81
/ per ton. Mr.. Perkins, % whom ~
| the appraisal Of these ore pronnr,i
ana VINO was also chairman OF tho a.
nance committee of the Steel Co,.nl,r'
Iion, was therefore in no position "a
| deny an excessive Valuation go 70
| Deering ore" 'hiS
How Stock Is Held.
| The stock Of the comnanv
missioner Conapt. has been cIosei,, IN,
| by the former interests. tho HoC
| mick and Deering families ~
throughout held a large mato,,' ' ing
the total while considerabjc oi
also have been retained by otber e,a Is
holders. o'"er STOCK
This fact" he continues
especial Importance in view, of t''s
bending dissolution suit of the eoy..,,
ment against the company"
Pointing to the recent ection =,
company in splitting into two corno INC
ions each with $4,000, 900 canitaI
STOCK. one retaining the old bar~astai
machine plants and the other taitjna,
over the new lines and foreign h,nt
ness. MI. Conant comments:
II inns is intended as part of 40,
,or ultimate disintegrstion of tho en,a.
ninatlon' In the opinion of the h,,rea ~
III is unsatisfactory" u
! me investigation. tho rono.
disclosed low rates of profit IN ~ sass'
sears OF the combination, partly oI.,i,s
10 imperfect Organization ana i,to ms
Jeaiousies. but much higher ratsn ' a..
recent years. averaging about 10
per cent in 1909-I911 on net assats
clusiVe OF good wild, ACCORDING r. ~
bureaus estimates '"o
Generally speaking ssvs tho 49,
missioner. the prices obtained nv tho
company on foreign sales are relative
~ niRher than those in the domestic
market. netting in some cases a lower
margin of profit.