The Julesburg grit-advocate., 1922-02-23
INTERNATIONAL MEETS FORD
ON TRACTOR PRICES

Henry Ford may find himself so
busy tending to his own business in
the next few months that he will
have little time to reorganize the cur
rency system of the country. demone-
tie gold or nay the money barons of
Wall Street.
The new prices quoted on tractors
and the temper of Harvester officials
would seem to indicate that the pray
ers Of the country that someone give
Mr.. Ford some real competition are
about to be answered.
A week ago Mr.. Ford announced a
reduction of $3.50 in the price of Ford
son tractors. cutting the price from
$625 to 1895. Last night the Inter-
national Harvester Company sent out
the following statement and officials
refused to add word or to change
a syllable of the official announce
ment. The announcement said:
Announce Big Cut
"The International Harvester Com
pany today announced price reductions
Of $3.50 OIL two-plow tractors and 5000
on three-plow tractors, effective i'm
mediately.
Until May l next the company
Will present to every farmer pur-
chasing one of these tractors a two
furrow or three-furrow plow or
tractor disk harrow.
President Harold F. Mccormick
said: This reduction is not justified
by any present or prospective reduc-
ton of manufacturing costs. 1t is
made chiefly to meet competition and
enable our dealers TO retain their
position in the tractor trade. The
burden of this reduction and the cost
of the plows or harrows presented to
purchasers will be borne entirely by
the company"
Meet Ford's Endeavor
Read it again and then consider the
attendant circumstances. Not so long
ago Edsel Ford gave an interview
that the company lost S1OO apiece on
every tractor manufactured in 1921.
Officials of the International Harves
ter Company know enough about man
ufacturing costs to know that he
spoke the truth. When that tractor.
which cost 500 more than the sale
price to produce in 1921 was cut
from s625 to 1896 International Har-
vester executives knew that Mr.. Ford
intended to throw his personal for
tune into the game of selling trac-
tors at a huge loss to corral what
business is to be had and to domi
nate the field when the farmer begins
to buy again.
Mr.. Ford has said much about build
ing and selling a million tractors |
year. Thus far he has had little luck
in the direction of this ambition Last
year he built $4,000 tractors and lost
s3,6OO,000 thereby. He appears still
to hope that he may achieve the mil
lion figure at which time he would
not be operating at a loss.
Have these things in mind when
you read what Mr.. Mccormick has to
say about the price being entirely
competitive, about protecting his
dealers and about the company losing
money at the game. Incidentally,
have them in mind when considering
the fact that the International Har-
vester Company will give away plows
worth s125 to SITS with each tractor
bought.
Ford Ahead of Game
Mr.. Ford is in fortunate circum
stance to begin this price war. While
other tractor companies have their
yards full of tractors and other farm
machinery they cannot sell, the De-
troit wizard has unloaded practically
all Of his tractors on protesting deal |
ers. These dealers do not get the |
benefit of the recent cut. They find
themselves with half dozen to fifty
tractors which they were induced by
various devices to purchase at the old |
price. They lost the $3.50. Mr.. Ford
doesn't.
Thus the willy Mr.. Ford will obtain
millions OF words of free advertising
and suffer little. The Ford dealer
gets 17k per cent commission for
selling tractor. By the time he de-
ducts the $3.50 which Mr.. Ford has
chopped off the price of the machine
at retail this commission wanders
across the ledger page into the red
ink area.
Like the flivver the Fordson comes
stripped. None of the competitors
of the machine charge that it is not
well built, of honest materials. They
do say that, like the flivver, the first
cost should be added to the equip
ment and extras necessary to put it |
INTO the field adequately equipped if |
prices are to be compared. And thew
will be compared in every corner gro
Gerry store in the country from today
until the price war is over.-Adver-
tisement.