Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-09-07
Dissolution Suit
Fails to Break
Harvester Trust
TBy E. G., Dougherty 7

Washington, Sept. "A far-reach-
ing decision was reached today by
the federal trade commission, in a
report to congress on the Causes of
High Prices Of Machinery" by which
q re-opening of the International
Harvester case so that new plan of
dissolution can be worked out, which
will restore competition is urged
The commission frankly reports that
both manufacturers and dealers have
entered into Illegal agreements to
boost prices far beyond the increased
cost OF production, and suggests that
prosecutions be instituted in the
courts against the offenders.
general indictment of the whole
farm implement industry is con-
tanned in the commissions report,
which has the approval of all five
members. The investigation relates
to big price rises from 1915 to 1918.
The inference is left that prices have
remained approximately stationary
since the armistice was signed I'M
plement trade journals and the Agri-
cultural Publishers Association are
accused of helping manufacturers to
obtain war prices.
The commission admits that farm
ers suffered comparatively little by
the increase in farm implement
prices, for while the cost of imple-
ments was advancing IS per cent,
the prices of farm products went up
on an average of 1l3 per cent. The
commission points out that farm
machinery is only ABOUT 10 per cent
of the cost of farm operation.
Attic the farmer has not been SER
iously injured by high prices OF ma
chinery, the commission warns that
in case implement prices remain UP
and farm product prices go down
this expense may well become fac
tor in preventing the farm from
making fair profit"
The commission appears to be sat
isfied with the decree entered in st.
Paul in November. 1918, with regard
to implements other than farm har-
vesting machines. The commission,
however. found that the Interna
tional still dominated the harvesting
machine business.
The chief complaint against the
International now is that 1t gets the
bulk OF the harvesting machine bus,
ness because it retailed two brands,
the Mccormick and Deering, which
can be produced and sold at less cost
than the Champion, Osborne and
Milwaukee, the three brands separ-
ated by the decree. The commission
says that the International refuses to
cooperate with other members OF
the national association in the har-
vesting machine business, altho 1t
does in other lines.
'"The dominating position of the
International Harvester Company is
chiefly with respect to the harvest
ing machine lines and particularly
with respect to grain BINDERS" the
commission report said. "The MAIN
tenance of this position is aided by
the steel making business of the
company, which furnishes 1t either
with large profits, or with steel at
cost, thereby further increasing the
International Harvester Company's
dominating position by reducing its
already low cost of manufacture"
From the farmers viewpoint, it
appears. the commission is objecting
TO an arrangement THAT permits hd
low manufacturing cost of harvest
ing machines and probably holds
down the prices at which the ma
chimes are sold to the public. The
commission proposes to dissolve the
International In such way that the
Mccormick and Deering brands will
be manufactured by separate COM
panies and put on an equality with
others. 1t holds these two were illeg-
ally combined in 1902 and adds:
"By their volume of output, their
low cost Of production, and reputa-
ton in the trade the possession Of
these two plants and brands makes
effective competition from other i'm
p1enent manufacturers illusory.''
The commission found that nearly
all important manufacturers of farm
implements are members of the Ma
tional implement and Vehicle Asso-
citation. Thru their national associa-
ton, the commission charges, the
manufacturers boosted prices much
beyond figures warranted by in
creases in production costs.
4