Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-03-03
RESOURCES A BIG ASSET
Enabled international, He Says, to
Overreach Competitors.
HOW IT FORCED NEW LINES
Dealers in Harvesting Machinery
Required to Take on Other Farm
Implements.

1 EACeplloEdl NllduCldl resources at us
command permitted the International
Harvester Company to obtain the great
monopolistic control over farm machinery
| and implements which 1t possesses. and
1t was these resources that not only en-
| abled the harvester company to secure
the economies OF large-scale operations
| which as a rule give 1t marked advan-
| tages in manufacturing costs, but also
enabled 1t to maintain a very elaborate
| selling organization by virtue OF the
variety and extent Of its business"
| This is one or the secrets Of monopoly
by the International Harvester Company
outlined in the report Of Luther Conant.
| jr., commissioner Of corporations. In his
| report on the operations Of the giant cor
poration just submitted to President Taft
Decides for Publicity.
Despite the fact that the President had
been requested by representatives of the
| company to withhold the report pending
the governments antitrust suit. Presi-
dent Taft concluded to let 1t be made
public. The investigation covered by the
report was made In response to a Senate
resolution Of several years ago.
After outlining some Of the resources OF
the company, Mr.. Conant declared these
gave 1t a great advantage In extending
credits to purchasers. IAN exceedingly
important feature Of the farm machinery
industry"
The chief features Of the International
Harvester Company's operations" says
Mr.. Conant. IT. his report. ARE the SUBJ
stantial maintenance Of its monopolistic
position In the harvesting machine bust
ness. originally acquired through combi-
nation. and its extensions on large scale
int Of fho 70 Q1hi tn.
dustry. The company has been able to|
do this in part through the acquisition
Of some Of its chief rivals in the har-
vesting machine business; in part by
using its monopolistic advantage in these
hadvesting machine lines to force the sale
OF it's new lines: in part by certain OBJ
Jectonable competitive methods, and
especially through its exceptional COM
mand of capital. itself the result Of COM
bination."
Arranged by Former Owners.
Mr.. conant declares in the report that
the combination was arranged in 1902 by
the former owners Of I'VE leading COM
peting concerns. and was not. las fire.
quently asserted" mere sale Of their
properties to new interests. Documentary
evidence gathered by the bureau. accord
ing to the report. shows that the principal
competing interests considered and dis
cussed among themselves the formation
Of this combination and were active In
bringing II about.
It was through this combination that |
the great resources mentioned by Mr..
Conant came. 1t was the financial sup |
port Of j. p. Morgan & Co.. Its fiscal
agents. and large loans secured from
John d. Rockefeller. father-in-law of
member Of the Mccormick family. which |
owns a large portion Of the total stock
Of the corporation.
After outlining. the acquisitions Of the
companies in 1903 and 1904. including
d. NJ. Osborne & Co.. its chief competitor.
the two chief stockholders Of which
agreed to refrain from engaging indie
pendently In the same lines OF business
for ten years. Mr.. Conant reports that
they were followed by the company ex-
tending its manufacture from such har-
vesting machinery as grain binders and
mowers to the so-calied new lines OF
farming tools. such as ttilage implements.
manure spreaders. farm wagons gasoline |
engines tractors and cream separators.
Compulsion Of Dealers.
Compulsion OF dealers to take the COM |
pany's new lines by reason OF Its mo- |
nopoiistic control Of harvesting machines,
says the commissioner. has been attempt |
ed with more or less success by the COM
pany's representatives. For two years
after the International took over the Os-
borne company, sworn statements OF It's
managers declared 1t to be independent.
Toe company's competitive methods. &C
cordinx to the report. have caused mucn
complaint Regarding the charge that
the company attempted to secure an I'M |
due proportion Of local dealers In farm
machinery by ailotting. as q rule, only
single brand for any one oeaIer IN the
same place thus tending to restrict the |
outlet for CON ~etitors goods. Commits |
sioner Conant says:
The companys own records snow that |
this was one purpose at least IN making |
this distribution OF it's brands. and 1t |
appears to have had some practical ef- |
feet In handicapping competition The |
general policy OF the company. says Mr. |
Conant. is to maintain high prices in the |
monopolized lines.
New Competition in Field.
Although new competition Of great sig |
nifcance has begun TO appear. the COM
missioner points out that the combination
in 1911 still had about SO per cent Of the |
production of binders. 70 per cent Of the |
production Of mowers and e per cent |
Of the production Of rakes. In manure |
spreaders. he adds, 1t appears to have
over one-half Of the business. in disk har- |
rows approximately 40 per cent and to |
be Increasing its proportion in several |
other lines. The company's stock. says
Mr.. Conant. has been closely held by
Deering families having throughout held
a large majority Of the total. while con-
siderable amounts also have been re-
tanned by other stockholders.
This fact he says, assumes special |
importance in view Of the pending DISCO
a