The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-08
POOR TRADE AFFECTS
HARVESTER BUSINESS
Report Of international Com
pany Shows Slight De-
crease in Profits.
DEALERS PRAISE QUOTED
President Mccormick Makes
Brief Reference to Govern
ment's Antitrust Suit.
DEALERS PRAISE QUOTED

Tho hrst annual report Of the Interna-
tionai Harvester Company Of New Jersey.
made public yesterday. shows that the
company's net profits for the calendar
year 1918 were s7.si5.525.7s.
This company represents half OF the old
International Harvester Company. In
1912 the assets OF the old $40. 1000. 900
corporation. as well as the preferred and
common stock. were divided between the
two companies, and as this Is the first
year that the International Harvester
Company Of New Jersey has made a re-
port of It's own business no comparative
figures we're published with the report
In the report for 1912 the old company's
net profits were sis,3s5.5s7. Assuming
that the plants which form the present
company made half the profits In 1912,
net profits have fallen OF about 's2s2,oo
In 1918. or about $50 per cent.
Like the old company, the new concern
makes many large charges against gross
profits before II finds Its net proft Gross
profits for tho year before deducting inter-
est on loans. annual provision for ore and
timber extingushment. plant depreciation,
special maintenance and losses on receiv-
abies we're s13.2s4,67o.
Pension ana Insurance Funds.
Interest on loans was s1.s2s.744. and
reserve for plant depreciation S1,290.0s7.
The company charged off $4,000 for col
lection expenses and made appropriations
Of $500. 900 each for the fire insurance and
pension funds. The total charged of the
gross in striking the net profits was S.
369,144.
Seven per cent. was paid on the $780,
100000 preferred stock and 5 per cent.
was paid on the 100000 900 common
stock. making dividends Of s4,1oo, 900. This
left balance OF 33.S15.525 TO be added to
the surplus account. making the total sur
plus as OF December 31,19l3, S1960S,797.
Assets OF the company were s129,93S.-
sos, as compared with the assets on
December 81, 1912. OF the present two
companies Of s242.s20.543. The company
owns real estate and plant property, ore
mines and coal and timber lands worth
s5l.l79.322, from which Is deducted for
plant depreciation ss,395,3 s7 Among the
receivables are farmers and agents notes
amounting to s27,353.ss2. Tho inventory
showed that that raw materials. work In
process and finished products In hand are
worth s42,666.950.
The company pursues the policy OF car
$500. 900 was added last year to the fund,
which now amounts to S1,743,S10. PEN
sions are paid by the company without
contributions from employees. On Decem-
Der 81. 1918. there were l45 former em-
pioyees on the pension payroll. A perma-
nent pension fund Is being established by
annual appropriations from earnings until
its amount shall be sufficient to provide
the income necessary for future payments.
The balance December 81, 1913, was $S43,-
146.
The company also has put into action
plan OF compensation for industrial
accidents. regardless OF lega! liability.
Payments for compensation are absorbed
directly In operating expenses and no por-
ton Is charged against the permanent
industrial accident fund, which will be
maintained as guarantee against future
CONTINGENCIES The balance OF this fund
December 81, 1913, was $45S,526.
Reference to Trust Suit.
Cyrus II. Mccormick, tho president,
makes only this reference to the suit
brought by the Government to dissolve
the company as a trust:
"It Is worthy of note that seventy
seven competitors, sea dealers and 22s
farmers testified on behalf OF the COM
pany."
The case has been argued and Is await
ing decision. Mr.. Mccormick says:
'"rhe company's total sales OF machines.
repairs and Irvine for the year 1913 to the
trade In the United States amounted to
S66,699.O0o. Partial crop failures In the
United States and general business con-
ditions during the year 1913 resulted In
the falling of OF trade in certain lines of
machines and in a larger inventory OF
raw materials and finished products that
would be carried under normal condi-
tions."
The company also sold to the Interna-
tional Harvester Corporation. which car
rles on tho foreign business, goods
amounting to Sl6.462.00