Arizona republican., 1920-09-07
TRADE
Commission To
PROSECUTE OLD
HARVESTER SUIT
Anti Trust Proceedings VIII
Be Instituted to "Break
Up" Alleged Combine of
Harvester Company
IRepubIican A. p. Leased Wirel


WASHINGTON, Sept. 6.-Declaring
prices of farm implements to have
been increased without warrant
through concerted action" of manu-
facturers and dealers. the federal
trade commission in a report tonight
recommends reopening of antitrust
nroceedings against the International
Harvester Company and institution OF
judicial proceedings against implement
manufacturers and dealers.
The commission declares that its in
vestigation which was ordered by the
senate. disclosed that in the period
between 1914 and 1918 prices paid by
farmers for implements advanced ~
per cent with the greater portion OF
tbe increase coming in 1917 and 1918.
This increase. the commission asserts,
was larger than warranted by the ad-
vapces in the costs and expenses of
the manufacturers and dealers and re-
suited in unusually large profits.
Notwithstanding the Increase. far
rners. according TO the commission's s
renort ..were not prevented from
making as much profit as before, be-
cause the prices of farm products in
creased to an even greater extent.
The report adds however that II
present implement prices are main
tanned while prices of farm products
well become a factor in preventing the
farmer from making a fair profit
s.The partial dissolution of the In
ternationaI Harvester company in
1918" the commissions report de-
cIared, "did not change the dominating
position of that company in the har-
vesting machine line and will not do
SO while the Mccormick and Deering
plants and the steel business remain
united under its control either directly
or by common ownership Of stock
"The dominating position of the In
ternational Harvester company Is
chiefly with respect TO the harvesting
machine lines and particularly with
respect to grain binders. The main
tenanee of this position is aided by the
steel making business of the company
which furnishes it either with large
profits or with steel at cost, thereby
further increasing the 1nternatlonal
Harvester company's dominating posi-
ton by reducing its already low costs
of manufacture.
THE division of the business of the
International Harvester company
therefore should be in such way as
to divide effectively the harvesting
machine lines and to separate them
selves from the steel business, less
than half of the products of which
have been utilized by its implement
factories and is therefore much toe
| large to be left with any one of them
/ To make any such division of tbs
| harvesting machines lies in restoring
competition, it would be absolutely es'
/ sential to separate the McCormicl
and Deering plants and the McCor
mick and Deering bands. 1t woulS
| also be necessary. of course, to
| force absolute sEpatatlOn of owner
ship of stock in the new companies
organized. 1t is necessary to sepa
rate the Mccormick and Deerin,
plants and brands because, accordini
| to judicial decision. they were illegal
ly combined in 1902 and because it j
these that have given the Internationa
Harvester company its dominating po
sition in the harvesting machine line
BY their volume of output, their low
cost of production and reputation il
the trade, the possession of the tw'
plants and brands make effective com
petition from other manufacturers IL
lusory."