The Mellette County pioneer. [volume] (Wood, Mellette County, S.D.) 19??-1971, 1920-09-17
PRICE BOOST HAS BEEN
BIG IN FARM IMPLEMENTS
Federal Body in Its Report Recon-
mends R%eopening of Antitrust
Proceedings.

Washington, d. C.-Declaring prices
OF farm implements to have been in
creased without warrant through "cOn-
certed action" of manufacturers and
dealers, the federal trade commission
in a report recommends r%eopening OF
antitrust proceedings against the In
ternational Harvester company and
the institution Of judicial proceedings
against implement manufacturers and
dealers.
The commission declares that its
investigation, which was ordered by
the senate, disclosed that in the pc.
Rod between 1914 and 1913 prices paid
by farmers for implements advanced
10 per cen with the greater portion
of the increase coming in 1917 and
1918. This increase, the commission
asserts, was larger than warranted by
the advances in the costs and eX-
penses Of the manufacturers and deal
ers and resulted in unusually large
profits.
Notwithstanding the increase, farm
ers, according to the commissions
report, were not prevented from max
ing as much profit as before, because
the prices OF farm products increased
to an even greater extent. The report
adds, however, that if present imple.
ment prices are maintained while
prices Of farm products decrease, high
implement costs may well become a
factor in preventing the farmer from
making a fair profit"
The partial dissolution of the In
ternational Harvester company in
1918" the committees report declared,
did not change the dominating posi-
ton Of that company in the harvesting
machine line and will not do SO while
the Mccormick and Deering plants
and the steel business remain under
it's control either directly or by com
mon ownership Of stock.
1.-THE dominating position Of the In.
ternational Harvester company is
chiefly with respect to the harvesting
machine lines and particularly with re-
spect to grain binders. The mainte-
nance 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 International
Harvester company's dominating posi-
ton by reducing it's costs of manu-
facture.
1.-THE division Of the business of the
International Harvester company
therefore, should be in such a way as
to divide effectively the harvesting
machine lines and to separate them
from the steel business, less than hall
Of the products OF which have been
utilized by it's implement factories and
is, therefore, much too large to be left
with any one Of them. To make any
such division Of the harvesting ma
chine lines effective in restoring com
petition, it would be absolutely essen
tial to separate the Mccormick and
Deering plants and the Mccormick
necessary, Of course, to enforce alb
sOlute separation Of ownership Of the
stock in the new companies organized.
It is necessary to separate the Nc
Cormick and Deering plants and
brands because, according to Judicial
decision, they we're illegally combined
in 1902 and because it is these that
have given the International Harves-
ter company its dominating position
in the harvesting machinery line. BY
their volume OF output, their low cost
Of production and reputation in the
trade, the possession OF the two plants
make effective competition from 9th
err manufacturers %illusory."