The Mankato free press., 1920-09-10
lAlLEGES PRICE COMBINE
HARVESTER COMPANY MADE
; TARGET OF REPORT
Trade Commission Declares Un-
fair Methods Were Used In
Its Business
IAssociated Press Dispatch ]

ASSOCIATED Press Dispatch.1
Washington, September Moth
ods alleged by the federal trade COM
mission to have been used by manu-
faeturers of farm implementa to ad-
vance prices through concerted &C
tion," are discovered, It became
known today. in q report OF the com
missions Investigation which was
anthorized by the senate.
The commission announced last
reopening of anti trust proceedings
against the International Harvester
company and institution OF court
proceedings against employment
manufacturers and dealers who, the
commission asserted. have Illegally
increased prices.
Jump In Prices.
Its Investigation, the trade com
rpission declared. disclosed that be-
ttween 1914 and 1913 prices OF farm
Implements advanced seventy three
Epbrcent. Advances in the costs and
Ee&Depses OF manufacturers and deal
eerS did not warrant, the commission.
ian Increase Of this amount.
Discussing methods. which the
commission charges officers and
Emembers Of implement manufacturers
Esssoatations, used to bring about and
paintAin high price levels. the report
Estates that price comparison, meet
tines. were held. at which advances
In prsces recently made or intended
TO. Be made were discussed. Meetings
siioe were held, 1t Is charged, at
tNhtoA, INFLATED costs were compared
kVth the tacit understanding that
ny36es would be advanced the same
ENes6sptage shown by the minated
kCostep and the Standardization or
tu1aements and equipment"
Urged Raise In Figures.
| The commissions report further
kat&fee that members or manufactur-
b6fx made use OF frequent exchange Of
kpraee lists by mail 30 that members
3oHla chsek up on each others prices,
3srrns and equipment furnished and
I {hnt Letters were sent urging low
kpr5ce members to increase their
By these methods" the commits
sfon asserts, beginning with meet
tiaes held IN February, 1915 and con-
Eft6ufng through 1918 the nanufao-
tvxers arrived at uniform percentages
t1f increases TO be applied nrst to one
SAnd than another line OF implements:
~phat the officers and members Of
lfhe manufactufers associations real
Eixcds the report continues, that
- were engaged IN illegal aotivi:
kt3es is Indicated by the ATTEMPTED
kSGefSev they sought to throw over all
Stx1te activities"
Statement From Mccormick.
Especial To The Free Press.l
Chicago, September Cyrus H.
iMocofmtck, chairman Of the Harvest
or couapany's board Of directors, re-
fesf1nx 10 the federal trade commis
(. ston's report said today: It snouid
Be noted that the report does not
md that prices or pronts IN the iarm
/ implement industry are excessive,
axhorbitant or unreasonable, and yet
{ the commissions figures on manu- :
}ocfxrsrs prodt greatly exceed the
/ sJSxveater company's net earnings as
f1hU&n bg its balance sheets, audited
nd cerufed to by public accountants
E6f the highest standing. The report
Eepecaeiiy finds that the farmer was
E6ut pferented from making fair pro-
Eo2 <1Rn implements because from
ff311 q 1918 the increase In imple-
kSHnt prices was only Is per cent,
kHkile the Increase In prices Of farm
Iproducts was 118 per cent. Further
Emcre. n hnds that farm implement
kcc6ts constitute less thap 10 per
Ecenf Of farm operating expense.
The full text Of the report shows
txbe Increase in prices of farm imple-
Ements. farun products ana all Sonmo; no
tsays aStar 1915 all three increased
kfeuidfy but the greatest increase was
that In farm products prices while
EnS scaallest was that of farm tmple-
ku10u$G Giving each OF groups the val
- 81 ZOE "a 1914, by 1918 farm i'm
kyaeanSuts had Increased to IT'S, all
ke6nrnodfties to 1e7 and farm pro-
tdwots'to BIZ.
hVkst Commission Might Have Added
THE commission might we'll have
tadAed that If the. farmer we're allow
Led the same rate OF compensatfon
ner hour for the labor Of himself and
Hamffy that the manufacturers pay
tfof the production of farm imple-
Enft1f{s IL would be evident that the
kfaMner needs all this advanced price
l6f fax1u products IN order to make q
fdecent Living. The advance OF prio.
Les IN both cases is due to causes be-
ETcld The farmers or the rnanufact-
fursrs control. The Harvester com
pauy has never colluded with any
,conpstitor In fixing or maintaining
ipfzcEs. In any company with more
tfhan 10000 employees. overzealous
Individuals may make O mistake, but
the fact is that no one connected
wSfh the Harvester company having
the slightest voice or authority re-
eardfng prices has ever had any
aereensnt or understanding with any
competitor relating to any prices"
Tho Senate Resolution.
~The senate resolution calling for
this report did not mention the de-
ssae In the case Of the Government
AGAINST the Harvester company. new
! eftheless the commission has urnec-
essarfly and unjustiiably injected
that subjeot into its reports. This
diseuaston appears to be merely vol
unteer criticism Of an important de-
parfnasnt OF the government by a
9 minor bureau. Not one new ract ts
presented IN this criticism, except its
Anding that the Harvester Compan-
les, percentage Of trade in the lines
which It is accused Of dominating
coiatfn1es steadily to decrease"
The federal courts decree gave
thu company q, definite period in
which to T.ake certain changes in its
business required by the goyernmen
MA period has not expired. There
Is no Mtimation that the company is
not fafti1fuI1y carrying OUT the terms
~ fhe Soyxiee Under the Cecree OF