New-York tribune., 1919-05-08
Int. Haryester's
Loss in Russia Is
Heavily Increased
Company Writes Off SlO,-
487, 900 More OH Proper
ties There; Equipment of
Plant Stolen by Hun

The international Harvester Com
pany, now consisting Of the Inter
national Harvester Corporation and
the international Harvester Company
of New Jersey as consolidated last
September, in accordance with the
ment antitrust suit, wrote off Sl0,-
4S7,000 against the 1918 earnings,
according to the annual report issued
to the stockholders yesterday, to cover.
properties in Russia. The previous
year a similar large loss was charged
off, making the company's estimate of
the depreciation of the Russian proper
ties as O result of the war amount to
$24,205, 900.
Profits Larger
The report, covering the 1918 opera
tions of the merged Harvester com
panies, shows a profit for the year Of
$14,9S5 1000, compared with a combined
profit of $12,659 900 in 1917. This
profit, the report states, represents a
return of less than per cent on the
net investment in the business. or
profit of about IL per cent before
charging off the war losses due to the
depreciation of Russian assets.
A large part of the earnings in 1915
came from the companys steel bust
ness, sales of motor trucks, and gov
ernment contracts. The most impor-
tant of the government contracts in
of oil ct txy-a iorb+ h,,-
product coke ovens at the steel mills
at South Chicago, in order to furnish
the facilities for certain materials
urgently needed by the government in
making explosives. To provide the
additional supplyof coal necessary for
the coke plant large expenditures
were required at the companys mines
at Benham, Ky. The construction of
the plant and the work at the mines
involved a total investment by the
company exceeding $5,50O,0O
The report states that on the sale
of farm implements the percentage Of
Proht to the capital employed in THAI
branch showed only a slight variation
ried over to 1919, amounting to more
than s113,0o0,000, were abnormally
large, due partly to the attempt TO
meet the demands of the government
and partly to the high cost of raw ma
terlals and labor and partly to con-
tlnued dulness Of the implement trade.
due to the belief that prices of ma.
terials and labor would soon recede
after the cessation of hostilities, q
belief, the report says, not yet realized.
Acquires Canadian Company
:. The company has invaded the Cana
dian field on an expanding scale by
acquiring toward the end Of the year
the entire stock of the Oliver Chilled
Plow Works of Canada, Ltd, at Hamil
ton, Ont. This property is now in full
operation under Harvester manage
ment- The company also bought the
plant and business of the Parlin e.
Orendorf Company at Canton, Ill.,.
another plough concern.
Harold +. Mccormick, president of
the company, speaking of the corpora
tons foreign investments, says 70 the
stockholders:
THE Croix works, near Lille, France,
after four years in German hands, has
been restored to French control. The
buildings had suffered little damage,
but the equipment, tools and materials
had been wholly removed or DESTROYED.
New equipment is being secured in the
United States and every effort is being
MADE TO resume operations at an early
date.
"The works at Neuss, Germany, on
the west bank of the Rhine opposite
Dues ldorf, is undamaged and has
manufactured implements continuously
under German control. The plant is
now within the territory controlled bv
the army OF occupation. Its final dis
position depends upon the terms of the
peace treaty.
THE Russian works at Lubertzy, near
Moscow, so far as we are Informed, is
still being operated by the company's
Russian representatives. Nearly all
the American managers in both the
manufacturing and sales organizations
were obliged to leave Russia last yearV
At the end of 1918 the company had
cash of S2s,040,060, Liberty Bonds
amounting to S9,626,1O, and Canadian
and Australasan war bonds. amount
ing to SB70,S23.
Braden COnner's Revenue