Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-03-03

! prices and long terms have been gen
| orally employed.
| Another rather general complaint is
| that statesmen of the International
| Harvester Co, represent that pdrchas-
| er5 Of competing lines of harvesting
machines will be unable to secure re-
pair parts, 4 matter OF much practical
| Importance. Officers of the Interna-
tional Harvester Co.. admit that this
was al one time 4 common character
| istic of competition in the harvesting
| machine industry. but that the compa-
ny is opposed TO the practice and has
used active efforts 10 eliminate it, The
Bureau, however received rather num-
| erous complaints of this character.
| The company at one time openly at
| tempted through a clause in its com
| mission contracts, to control the price
| paid for its machines by the farmer to
| the retail dealer. Since the elimination
OF this clause. suggested. retail price
| lists have been rather generally circu-
| lated by some of its branch offices, APP
| pareTtly for the purpose of indirectly
| maintaining the retail price although
| the company contends that these lists
are intended fer the use of Its employ
| ees in furnishing nforma ton to pur-
| chascrs and processes to discourage
! their issuance to dealers. 1t is evil
dent. however, that it could complete
| ~ stop this practice if it really wished
to-
| Although new competition of great
| significance has begun To appear, the
| Commissioner points out that the COM
| bination in 1911 still had about SG per
cent of the production of binders, IS
per cent of the production of mowers
and y per cent Of the production of
rakes. In manure spreaders, he adds,
| it appears 10 have over one half
Of the business, in disk harroWs
| approximately n per cent and to be
| increasing its proposition in several
other lines, such as wagons ana gaso-
| line engines.
| The extraordinary over Capitaliza-
| ton which characterized most of the
| large industrial consultations of the
| period 1898 to 1901" was absent in the
| case of the International Harvester
| Company, says Mr.. Conant The orig
| inal capital Of $4,000 600 included 500
| 100000 in cash aud $61, 600, 600 represent
ing the appraisal value of plants, inven-
| tions, etc. The Commissioner points
out several alleged excessive Valua-
| tons, but says that the value of the
| properties plus the cash capital cover
ed substantially 90 rer cent of the cap
! ital stock Issued and holds that a fair
valuation fer good will, which was
not included in the assets, would likely
have met the remaining ten per cent.
! Excessive valuation, the Commission
| er PARTICULARS points out, was placed
| upon the ore leases of the Deering
| Harvester Company. IL MAS appra ised
| at s7,963,Ij0 estimated by Mr.. Conant
to have been over S7,0ho, o00 too high at
that time. THESE ore valuations. he
| adds. caused much dissatisfaction
among the combining interests them
selves, especially the McCormicks.
| 1T is important to consider the re-
pert declares that the bankers who
| dominated the organization of the In
ternational Harvester Co. also organ
| lied the United States Steel Corpora
| ton, officers of which had only few
! weeks before in important litiga ton
then pending against that company
| submitted afiidaVits to the effect that
| The value Of It's ore. taking ieaseholds
and fee indscriminatcly was $500, COO
| 600, or approximately 81 per ton. MIR.
| Perkins to whom was left the apprais
| al of these ore properties and who was
| also chairman of the finance committee
| of the Steel Corporation. was there
fore in no position to deny an excessive
/ valuation tor this Deering ore.
The stock of the company. says Com
missioner Conant, has been closely held
| by the former interests, the Mccormick
and DceriUs farilies having through
out held a large majority OF the total,
| While considerable amounts also have
been retained by other stock holders.
| "Inis fact" he continues. assumes
especial importance ine~svieW of the
| pending dissolution suit of the govern
meng against the company"
Pointing to the recent action of the
company in splitting into two corpor-
| ations each with $70,0o000O capital
stock. one retaining the old harvester
| machine plants and the other taxing
| over the new lines and foreign bust
ness, Mr.. Conant comments:
IF this is intended as part of a plan
for ultimate disintegration of the COM
bination, in the opinion of the Bureau,
| it is unsatisfactory
The investigation, the report says.
disclosed ,oW rates of profit in the
| early wears of the combination part
| ~ owing to imperfect organization and
| internal jealousies, but much higher
| rates in recent years. averaging about
| II IL per cent in 1909-1911 ON net as
/ sets exclusive of good Wild, accord
| ing 70 the bureaus estimates.
Generally speaking, says the Com
| missioner, the prices obtained by the
| company on foreign sales are relative
| " higher than those in the domestic
| market netting in some cases lower
| margin of profit.