The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-09-11
International Harvester Com
pany OffciaI Refutes Charges.
Declares Federal Trade Com
mission Had No Jurisdiction.
NEVER WAS ANY COLLISION
Branch Manager in Topeka Gets
Long Telegram.
Trust Charges Being Planned
by the Government.

An emphatic denial that the Inter
national Harvester company has been
making undue increases in prices OF
farm machinery sold in the United
States Is included in telegram re-
ceiyed here by ". o. E Wright the
Topeka branch manager Of the COM
pany's business in Kansas
The telegram was received Thurs
day following the dispatches the day
previous to the effect that the depart
ment OF justice planned action against
the company under the Sherman
antitrust act The government in
making plans for the suit bases It's
case upon the report Of the federal
trade commissions report recently
issued.
The answer. as included in the teIe-
gram from Chicago from Cyrus H.
Mccormick. chairman OF the Ear-
ves,er Company board Ct directors, is
as follows.
Profiteering Not Charged
ut should be noted that the report
does not find that prices or profits In
the farm implement industry are ex-
cessive exorbitant or unreasonable
and vet the commission figures on
manufa cturers' profits greatly exceed
the Harvester Company's net earnings
as shown by its balance sheets audited
and certified 10 BY authorities OF the
highest standing
The report specifically finds that
the farmer was not prevented from
making fair profits on account OF the
increased price q farm Implements
because from 1913 % 1913 the in
crease in implement prices was only
- per cent while the increase IN farm
products was us per cent
Furthermore it finds that farm i'm
pIements costs constitute less than 10
per cent of farm operating expenses
Farm Implements Least
the increase in prices Of farm inpis-
ments. farm products and all COM
modities between 1914 and 1918 and
says after 1918 all three increased
Rapidly. But the greatest increase
vas that IN farm product prices while Z
the smallest was that OF farm Imple-
ments
Giving each Of the groups the value
OF 100 in 1914 by 1918 farm ir1ple-
ments had increased 10 175, all COM
modities to 1877, and farm products to
212
The commission might well have
added that II the farmer were allowed
the same rate Of compensation per
hour for the labor Of himself and fam
lily that the manufacturer paid for the
production of farm implements 1t /
would be evident that the farmer /
needs all this advanced price OF farm .
products in order 10 make a decent I
living. The advance OF prices in both /
cases is due to causes beyond the I
farmers or manufacturers control
Been No Collision.
The harvester company has never /
colluded with any competitor in fix 4
ing OF maintaining prices, In any {
company with more than 10000 en- [
ployes an over-Zealous individual may /
make a mistake but the fact is that /
no one connected with the harvester
company having the slightest voice or {
a. ri q inc
lad any agreement or understanding /
with any competitor relating TO any .
prices.
The senate resolution calling for this /
-eport did not mention the decree in +
he case Of the government against the (
Harvester company. Nevertheless, the I
commission had unnecessarily and IN I
ustifiably injected that subject into its |
sepOrts.
Report UncaHed For.
This discussion appears to>be mere
) voluntary criticism of an important 1
department. OF the government by /
minor bureau
Not one new fact is presented IN I
his criticism except its finding that
he Harvester company's percentage /
y trade in the lines which IL is &C
FUSED Of dominating continues steadily p.
"a decrease. The federal courts de-
.ree gave this company a definite
3eriod in which 70 make certain +
manages IN its business required DE the
government This period has not ex-
bred. There is no intination that the /
company is not faithfully carrying out
he terms Of the decree.
Under the decree OF the court we
ire 70 be judged by the facts as they
levelOp thru the period prescribed
rhis course will commend itself TO |
reasonable men in preference to
warped and perverted prejudgment OF !
he future by doctrinaires connected !
with the federal trade commission"