Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-03-03
Report Declared
Unfair and Untrue.

harvester Co, when advised of .hC
nature of the report of the commits
sioner of corporations on the operat-
ing methods of the International Har-
vester Co, tonight, issued the follow
inG statement:
For the bureau of corporations to
make it's report on The international
Harvester Co, at this time is mani
testify unfair II appears in the midst
of the governments law suit and
within two days of the beginning of
the evidence of the company. The
bureau has considered the govern
ments evidence; it refuses to wait
for the con!pany's evidence, which will
disprove every charge OF misconduct
which the bureau makes. The report
rehearses old charges which it finds
are mainly untrue, but which it lacks
the courage and eandor unequivocal-
ly to deny. But, even so, it justified
the company with respect to the fun
damental matters of honest capitaliza-
ton, moderate profits and fair prices
Compelled by the proof of independ-
cnt appraisements the report grudg-
lnSly comedies that this company, UNI
like many other large corporations. is
not over capitalized. It admits that
its profits have not been excessive
averaging even by the bureaus own
unfair figures less than 81 per cent
per year. While drawing unfavorable
differences from trivial and exceptional
instances of misconduct by employees
the bureau fails to draw from the i'm
pertant facts of fair capitalization.
reasonable prices and moderate profits,
the conclusion that the American
farmer has been benefited The Iu-
reau nails the old falseheod that we
sell abroad cheaper than we sell at
home. The charge was never true and
their investigators who visited Eu-
rope We're so compelled to report Low
margin of profit in restricted districts
does not arise out of any reduction ia
prices. 1t results from poor crops,
unexpectedly small sales and bad To-
cal conditions and happens in our
domestic trade more frequently than
in the foreign. That the bureau re-
fers to it at all shows the animus of
the whole report.
The bureau conc edes what this COM
pany has always claimed that its
formation was to secure the most
economical production. We have Sc
cured it. Harvesting machines are
the cheapest things the farmer buys.
Their prices have remained level dur
ing an era of generally increasing
costs The farmer pays more for
nearly everything else he purchases,
including other lines of agricultural
implements, than he pays for harvest
ers. The new lines which the bureau
criticises the company for developing,
such as farm tractors, engines and
manure spreaders are largely new i'm
PIGMENTS in the line of more scientific
farming. On the question of tempo
rarily concealing the purchase of GER
tain harvester plants, the report ig-
nOreS and impeaches the sworn testi-
mony of the governments own wit
nesSeS in the equity suit. The owners
of the selling companies were called
by the government to prove such con-
cealments but they testified that
course was not taken at the instance
of the International Harvester Co, or
for its benefit; it was done to enable
one selling company to collect it's
$4,000, O00 outstanding accounts: to
enable another selling company to
liquidate it's affairs and a third to pro-
tect its guaranty of receivables.
The report cxaggerates and criti-
cises the company's fipancial re-
sources. but admits that these are
necessary to economically manufac-
ture on a large scale without such
resources. it would have been impos-
sible for this company to have in
creased it's foreign for than less than
e. mn non N To -,
1912 with the resulting advantages of
American labor and industry.
AT one time we objected to a suit being
commenced against us before the bureau
of corporation had filed its report. and we
have repeatedly urged this bureau to
make its report. 1t delayed, however, un-
til the suit was brought, and the bureau
had fnly considered the governments
5000 pages of evidence. at this juncture
as a matter of elementary justice. we
made three requests:
First that the bureau, having consid-
cred the testimony on one side of the case
should not close its report until it had
heard the testimony on the other side
second, we asked it not TO cmbulrass the
administration Of justice by undertaking
to decide on this one-sided testimony the
same questions of fact that the court
must determine after hearing both sides;
third we asked that the report be with
held during the dependency of the litiga-
ton
II am told the code of ethics of the
American Bar Association and bar asso-
Citations generally justly condemns the
practice of a party litigant making public
statements regarding matters involved in
pending litigation.
The reports criticism of the business
practices of the company are hardly more
than a summary of the hostile hearsay
of disgruntled individuals. The govern
ment called all the companys competitors
in the harvester trade and only one Of
fered single criticism upon its business
methods. These charges will be con-
clusively disproved by the testimony to be
presently taken as they were in the Kan
sas Missouri litigation. We begin tah-
ing testimony, this week. at Omaha,
where more than 100 witnesses will ap-
pear. Similar hearings will Ue had at
other places convenient to the dealers
and farmers who are most Interested an