The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-09-07
IMPLEMENT PRICES
HAVEN'T kept. PACE
WITH OTHERS, CLAIM

CHICAGO, Sept. Cyrus H. McCor-
mick, chairman of International Har-
vester company board of directors, re-
ferring to the federal trade commits
sioners' report, said today:
"It was noted that the report does
not say that prices or profits in the
farm implement industry are evces.
sive, exorbitant or unreasonable, and
yet the commissions figures on manu-
facturers' profits greatly exceed the
Harvester company's net earnings as
shown by it's balance sheets, audited
and certified to by public accountants
of the highest standing. The report
specifically finds that the farmer was
not prevented from making fair profits
on account of the Increased prices Of
farm implements because from 1913
to 1918 the increase in implement
prices was only 1870 while the in
crease in price of farm products was
1882. Furthermore, it finds that the
farm implement costs constitute less
than 1919 Of farm operating expenses.
THE full text of the report shows
increase in prices of farm implements,
farm products and all mmodities
from 1914 to 1918 and says after 1915
all three increased rapidly: that the
greatest increase was in the farm pro-
ducts prices, while the smallest in
crease was that Of farm implements.
Giving each of the groups the value
of 100, in 1914, by 1918 the farm i'm
plements had increased to 173. all COM
modities to 1877 and farm products to
PIP.
Farmer Needed Advance Price.
"The commission might we'll have
stated if the farmer were allowed the
same rate of compensation per hour
for the labor of himself and family
that he manufacturers pay for the pro-
duction of farm implements, it would
be evident that the farmer needed all
this advanced price of farm products
in order to make a decent living. The
advance of prices in both cases is due
10 causes beyond the farmers or manu-
facturer's control.
THE Harvester company has never
COlluded with any competitor to tx
prices In any company with more than
10000 employees, an over Jealous 1ndl-
vidual may make a mistake, but the
fact is that no one connected with the
Harvester company. having the slight
est voice or authority regarding prices,
has ever had any agreement or under
standing with any competitor relating
to any prices.
'The senate resolution calling for
this report did not mention the decree
in the case Of the government against
the Harvester company, nevertheless
the commission has unnecessarily and
unjustifiably injected that subject into
it's report. This discussion appears to
be merely volunteer criticism of an
important department of the govern
ment by minor bureau.
Not one new fact is represented in
this criticism, except its finding that
the Harvester company's percentage
of trade in the lines which 1t is &C
cused of dominating continues stead
lily to decrease.
"The Federal courts decree gave
this company a definite period in
which to make certain changes in its
business required by the government.
This period has not expired.
There is no intimation that the
company is not faithfully carrying out
the decree. Under the decree of the
court we are to be Judged by the facts
as they develop through the period
prescribed. This course will commend
itself to reasonable men in preference
to a warped and perverted judgment
of the future by doctrinaires connected
with the Federal Trade commission