The Madison journal. (Tallulah, Madison Parish, La.) 1888-current, 1913-01-04
President Mccormick Makes a
Reply to Charges.
HEDEFEnnS THE ORGANIZATION
Statement Issued In Connection with
the Governments Suit to Dis
solve International Har-
vsster Company.


Mimi, April so, against the interna.
tional Harvester company, alleging
violation of the Sherman law and max
Ing the general charges that are Gus
tomary in a bill Of this kind, and ask
ing for whatever reliefs are consid-
cred necessary ny the court. The bill
is Q very long one and therefore can
not be reproduced, but it sets forth,
in effect, that the Harvester company
Is a 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 fer the purpose Of
occurring economy in the manufacture
and sale of harvesting machinery, and
of increasing the foreign trade. Il
had no water in its capitalization, and
IT has earned only reasonable return
OF its 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 so per cent in wages.
The company has caused a large saw
ing to American farmers in the cost
of agricultural implements. 1t has in
creased the foreign trade in agricul.
tural implements four-fold in nine
years; its foreign sales in 1911 were
over S42, 100000 1t has not sold cheap
or abroad than at home. Its 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, a less hazardous
and fluctuating business and to its EN-.
ployes it has given higher wages, i'm
proved and sanitary working condi.
lions, insurance against sickness, 40
cident and old age, and a share in the
profits.
1.-THE charges of misconduct found
in the bill have been met and dis
proved by the company in other cases !;
ard they will again fail, because they
are untrue. The supreme court OF
Missouri, in a suit in which those
charges were fully gone into. said:
Ion the whole, the evidence shows
that the International Harvester CON-
pany has not used is power to Cypress
or injure the farmers who are its cus
toners"
And again:
, 1.-THE price OF harvesting machine:
has not increased in proportion to the
, increased cost of construction or the
\ increased merit of the machines, an(
. respondent has brought other farm i'm
a Elements into trade"
The evidence also shows that tt
4 machines manufactured by the Inter
I. national Harvester company have BEEF
|. greatly improved in quality and tn
@ item of repair material has been re
$ duced in price and placed within close
IS reach OF the farmer
e 1.-THE organizers of this compan
z acted under the advice Of able counse
n and in the sincere belief that the
q were violating no law. II under late
y decisions it should be held that tn
= law was violated, it could only b
I through the creation of power to OF
s press which has never been exercise
a More than six years ago the com
;. pany asked for its investigation by tn
t United States government, and opene
|. all its books and records for inspec
ton. and furnished all information re
z quested. No suggestion of any chang
! In its business methods has been mad
e to it by the government at any time
/. Recently, full and frank discussion
of the whole situation has been ha
( between the representatives, Of the GOV
r eminent and the company, in an hon
est desire upon both sides to avoi
litigation. Some plan may yet h
found which will obviate the necessit
Of any protracted litigation by salts
, flying the claims made under the Sher
? man act without seriously impairin
the economic advantages and benefit
e secured by the organization of thi
company. No form OF reorga2:,9tioI
5 aowever. was suggested by the govern
d ment which seemed practically pos
sib,e
"The government has been caref,
10 avoid embarrassment to the fo-eig
: business from the litigation: the bi
makes no attack urOn. and sees n
r change IN, the export business CT I'll
company. The fling OF the bill WI
In no way interfere with the company
:. carrying on Its business the same {
heretofore"
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