The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-25
SENATE REPORT ERRS,
SAYS HARVESTER co.
Denies Principal Allegations
Made i'm Relation to
Jones Case.
TELLS OF AIDING FARMERS
Denies Overcapitalization, Big
Dividends and Cheap
Prices Abroad.

CHIcNGo. July % 49, The International
Harvester Company has given out a letter
addressed to the acting chairman OF the
Senate Committee on Banking and Cur
rcncy correcting the alleged errors in tho
report Of the committee concerning the
Harvester company In relation to the
appointment Of Thomas u Jones on tho
Federal Reserve Board.
summary OF the letter follows:
II shows that there is no overcapitaliss-
ton and that the Government does not
charge the Harvester company with over
capitalization.
IL declares that tho much discussed
, Morgan Zee was not paid by tho Harvester
company that It was an obligation OF
the owners Of the old companies and was
paid by them from their stock.
II quotes the Bureau OF Corporations
report and the Governments complaint in
tls Harvester suit TO show the low actual
earnings and dividends. 1t shows tho
average net earnings 10 have been 1S3
per cent. per annum and average diV
dends 3. not .. per cent.
II shows that the misunderstood stock
dividend was paid on common stock that
for seven years had received only an
, average annual dividend OF Fla per cent.
less than two and one-half cents ON each
dollar Of investment, and that this stock
dividend added to all other dividends on
common and preferred stock makes an
average dividend Of only 5.9l per cent.
! per annum.
II quotes from findings OF state courts
| and other public documents that the
| farmers have been benefited. not injured,
| by IA" company, and II shows h. SEN
| ate documents. consular reports and bu
| r"au reports thai harvesting machines
| are sold for less in the United states
| than anywhere else In the world,
| II Indicates here IN government re-
| ports the Information may he found that
thcir employees have Increased several
uS1nd in number and were not dmin-
| ished.
II cites Government testimony to dis
| prove tho committees charge Of smoth-
ering a competitor.
| II holds that the formation of the new
| Harvester corporation was not evasive or
| secret. but was formed after, not, as the
committee stated. before the suit. and II
was done with the fun knowledge OF the
| DepartmC ~ Justice and that the Gov
eminent could not lose single right
/ through It's foundation.
u trayerscs IN" history OF its litigation
| In 1--WE States and says in no case has II
! been found that the company had used
any Of the wrongful competitive methods
| mentioned or complained Of In tho report.
or that the company has oppressed or in
| jured the farmer. and no farmer has ever
so testified against tho company, but hun
| drods OF farmers have testified to It's fair
treatment moderate prices and improved
machines and service"
The communication closes with thcse
paragraphs.
| 1T Is significant that the defenders OF
the company, as shown 10y the court rec
ords are tho farmers, tho dealers and the
competitors who alone would suffer II the
charges werc true that are made against
the company by those who have never
had business dealings with II"
ON view of the foregoing facts" the
general counsellor saws. ~ appeal to the
quick sense Of Justice and fairness nj
every member Of your committee 10 cor
rect the erroneous statements referred &c
above Surely 4 ia now clear that serious
wrong has been done this company by thu
| wide publicity given your report
Surely Il Is now clear that public dis
cussion o' the International Iarveste
! Company IL improper and unfair Will
the Government suit against II is stu
pending before the cour,.'
II - apparent throughout the letter tina
no attempt has been made to argue Nh
case but 'acts correcting the report ar
briefly stated and the committee Is re-
ferred 20 the book and page OF the docu
merts disproving the committee charges