Omaha daily bee., 1914-07-26
HARVESTER COMBINE DENIES
Charges Made by Senate Committed
Contradicted.
REAL FRIEND OF FARMERS
There IL No decentralization, Div-
idcnds Arc Not EEccvsivc nnd
Machinery g. Not sold higher
Then Abroad.

CHICAGO, H. July 2s-,Specisl Tele-
Eram)-In the matter OF the appointment
Of Thomas d. Jones tho International
Harvester company has given out n let
ter addressed to the acting chairman OF
the senate committee on banking and
currency correcting the error OF the report
of the committee concerning the har-
vester company. \ summary OF that
letter Is as follows
l. II shows there ie no oye- capitaliza-
tion and that the government does not
charge the harvester company with over
capitalization.
. Il declares that the much discussed
Morgan fee was not paid by the rar-
vester company: that II was an Obligation
Of the owners Of tho old companies. ard
was paid by them from their stock
3 II quotes the bureau ot corporR-
tions report and governments complaint
in harvester suit to show the low actual
earnings and dividends u shows the
average net earnings 90 havc been I&
per cent per annum and average divi-
dends Of a5 per cent.
T. II shows that the nisundert TODD
stock dividend was paid on common stock
that for seven years had only received an
average annual dividend OF 2l5 per cent.
less than two ana one-haN cents on each
dollar OF investment. and that this stock
dividend added T. all other dividends on
common and preferred stock makes an
average dividend OF only 5.si per cent por
annum.
Farmers Are Benefited.
3 II quotes from findings OF state
courts and other public documents that
the farmers have been benefited not
injured. by the company. and II shows by
senate documents consular reports and
bureau reports. that harvesting machines
are sold for less In the United states
than elsewhere else in the world.
s. II indicates where In government re-
ports the information may be found that
their employees have increased several
thousand in number and were not di-
minishsd
Z II cites government testimony to
disprove the committees charge smoth-
erIng a competitor.
s II holds that the formation OF the
new harvester corporation was not eva
sive or secret. but was formed after, not,
ms the committee stated. before the suit,
and II was done with the full knowledge
% the Department OF Justice. and that
tho government could not lose a single
rght through it's formation
state Cases Reviewed.
O. II traverses the history OF It's litiga-
tion in five states, and says. In no
case has II been found that the company
had used any OF tho wrongful competi-
tive methods mentioned or complained OF
In the report or that the company has
oppressed or injured the farmers And
no farmer has ever so testified against
the company; but hundreds OF farmers
have testified TO Its fair treatment. mod
crate prices and improved machines and
service"
10. The communication closes with these
paragraphs;
1T Ia significant that the defendants OF
the company, as shown by the court rec
ords are the farmers. the dealers and
the competitors, who alone would suffer
n the charges were true that are made
against the company by those. who have
ntver had business dealings with a."
I'm view OF the foregoing facts" the
general counsel says Il appeal 10 the
quick sense OF justice and fairness OF
every member OF your committee. to cor
rect the erroneous statements referred
To- above. surely Il Is now clear that
serious wrong has been done this com,
pany by the wide publicity given your
report. surely II Is now clear that public
discussion OF the international Harvester
company Is improper and unfair while
the government suit against II is Sun
pending before the court"