Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-02-11

HARVESTER CUTS
TRACTOR PRICES
Implement Company Price
Cut Follows Reductions
Made by Detroit Man.

Editors Note: The following ar
ticle by Glenn Griswold from the Chi
cago Journal of Commerce and Daily
Financial Times indicates that there is
rea! competition between tractor
manufacturers, and low prices are
the 'result.) "e
A week ago Mr.. Ford announce a
Teouctlon Of $3.50 in the price Of
fordson tractors. cutting the price
from s625 to 1895. Last night the
nntefhatlonal Harvester company SEM
OUT the following statement and Of
metals refused to add a word or to
change a syllable Of the official an
nouncemcnt. The announcement said:
Announce Big Cut.
The International Harvester COM
pany today announced price reduce
IONS or $3.50 on .two-plow tractors
and 5000 on three-plow tractors. ef-
fcctlve Immediately.
Until May ], next. the company
VIII present to every farmer purchas-
ing one OF these tractors a t~wo-furrow
or tnree-furrow plow or a tractor disk
harrow. =
President Harold F. Mccormick
said: This reduction is not justified
Dy any present or prospective reduce
ton of manufacturing costs. IT il
made chiefly to meet competition and
enable our dealers to retain their no.
sltlon in the tractor trade. The burden
OF this reduction and the cost Of the
pioWs or harrows presented to pur-
chasers will be borne entirely by the
company"
Meet Ford's Endcayor.
Read it again and then consider the
attendant circumstances. Not so Ions
ago Edsel Ford gave an.interyiew that
the company lost 500 apiece on every
tractor manufactured in 1921. Of
nclals of the International Harvester
know enough about manu-
featuring 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
1898 International Harvester execu-
tiVes 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.
Mr.: Ford has said much about
building and selling a million tractors
a Thus far he has had little
luck in the direction Of his ambition,
Last year he built $4,000 FACTORS and
lost $~3,600,000 thereby. He appears
still to hope that he may achieve the
million 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
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 1925 to SITS with each tractor
bought.
Ford Ahead of Game.
Mr. Ford is in fortunate circum.
lance 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 recen cut. They FIND
themselves with half a dozen to fifty
tractors which they were induced BY
various devices to purchase at the ole
price. They lost the $3.50. Mr.. Fore
doesn't.
Thus Mr.. Ford will obtain million.
Of words Of free advertising and suf:
fer little. The Ford dealer gets II l.:
Pei SeHl CoI1iI1 SSlOu LOT selling {
tractor. By the time he deducts tn,
$3.50 which Mr.. Ford has chopped of
the price Of the machine at retail thi!
commission wanders across the LEDGE
page into the red ink area.
Like the %fivver, the Fordson come
stripped. None of the competitors O
the machine charge that it is not wei
built. of honest materials. They d,
say that, like the fivver. the first cos
should be added to the equipment an,
extras necessary to put it into tn
field adequately equipped if prices ar
to be compared. And they will b
compared in every corner grocer:
store in the country from today unit
The nrina " 10 ouar