Clinch Valley news. [volume] (Jeffersonville, Va.) 18??-2019, 1922-02-17
INTERNATIONAL MEETS FORu
ON TRACTOR PRICES.
lBy Glenn Griswold.l

Wy 1iNiil IllSMOlu.J
Henry Ford may find himself 50
busy tending toh 81 own business in
the next few months that no Wi
have little time to rcorganize the
currency system Of tho country, de-
monetize gold or flay the money bar.
ons of Wall Street.
The new prices quoted on trac.
tors and the temper of Harvester
o Gals would seem to Indicate that
the prayers of the country that some
one give Mr.. Ford some real COM
petition are about to be answered.
A week ago Mr.. Ford announced
reduction of $3.50 in the price of
F'ordson tractors, cutting the price
from $G25 TO 1895. Last night the
international Harvester Company
sent out the following statement anu
officials refused to add n word or to
change syllable Of the official an
nounccment. The announcement said:
Announce Big Cut.
1.-THE international Harvester Com.
pany today announced price reuuc.
tions of $3.50 on two-plow tractors
and 5000 on threc-plow tractors, eff
fcctivc Immediately.
Until May l next, the company
will present to every farmer purr.las
ing one of these tractors two-fur-
row or three-furrow pillow or u trac-
tor disk harrow.
president Harold f. McCormick
said: This reduction is not justified
by any present or prospective re.
duction of manufacturing costs. 1t is
made CHIEFLY to meet c competition
and enable or" = 'o~s to retain their
position n the tractor trade. The
burden of this reduction ana the
| cost of the plows or harrows present.
ed to purchasers will be borne en-
tirely by the coMpany."
Read it again and then consider
the attendant circumstances. Not SO
long ago Edsel Ford gave an inter
view that the company lost $y00
apiece on every tractor manufactur-
ed in 1921. Officials of the Interna-
tional Harvester Company know
enough about manufacturing cosus
to know that he spoke the truth.
When that tractor, which cost $500
plore than the sale price to produce
in 1921 was cut from $625 to 1895
international Harvester executives
knew that Mr.. Ford intended to
throw his personal fortune into the
game of selling tractors at a huge
loss to corral what business is to be
had and to dominate the field when
the farmer begins to buy again.
MIR. Ford has said much about
tors year. Thus far he has little
luck in the direction of his ambi-
ton. Last year he built 5000 trac-
tors and last 100000 thereby. He
appears still to hope that he may
achieve the million figure at which
time he would not DO operating a, h
loss.
Have these figures in mind when
you read what Mr.. Mccormick has
to say about the price being entire
iy competitive, about protecting his
dealers and about the company los
ing money at the game. Incidentally
have them i'll mind when consider
ing the fact that the International
harvester Company will give away
plows worth Sl25 to SITE with each
tractor bought
Ford Ahead of Game.
Mr.. Ford is is fortunate cir,un,
stances to begin this price war.
While other tractir companies have
their yards full of tractors and ycn.
er farm machinery they cannot sell.
the Detroit wizard has unloadcd
practically all of his tractors on pro-
testing dealers. These dealers do not
get the benefit of the recent cur
They find themselves with half h
dozen to fifty tractors which thew
were induced by various devices 10
purchase at the old price. They lost
the $3.50. Mr.. Ford doesn't.
Thus the willy Mr.. Ford will OBJ
tain millions of words of free ad-
vvertising and suffer little. The Ford
dealer gets II 1-2 per cent commits
sion TO rselling tractor. BY the
time he deducts the $3.50 which MIR.
Ford has chopped off the price of
the machine at retail this commiss-
ION wandcrs 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. Th.y
do say, that, like the flivver, the first
cost should be added to the equip
ment and extras necessary to nut IL
INTO the field adequately equipped II
prices are to be compared. And they
VIII be compared in every cor,..,
grocery store in the country from.
today until the price war is over.