The Birmingham age-herald., 1923-10-02
HIGH IMPLEMENT PRICE PENAL Y F0RR
 FARMER, |S CLAIM
International Harvester Files Answer To Attorney Gen.
 erals Petition

ST. PAUL, Minn.. Oct. 1.-(By As sociated Press.)-Asserting that fur ther division of the Tnternationsl Harvester company would result in making farmers pay more for their implements. attorneys for the cor poration today filed in the United States district court here an answer to the Attorney Generals recent pe- tition asking such division.
 The company claimed that since the dissolution dccreed by the war time agreement with tho government in 1918, the competitive conditions contemplated by the Sherman act had been made fully existent in the busi- ness. IL was asserted that this 1918 agreement was made because the war had destroyed a large portion of the company's foreign trade and be- cause if dissolution was then de- creed, Financial operations on a large scale would be required" in the face of highly unfavorable ctndd- tions.
 The answer points out that chang ing conditions in agriculture have also operated to prevent the com pduy AEOHi HdNiIB any SuCl HlOHOpOly AS the government has charged. The tractor, especially, has become one of the most important machines in the domestic trade, the answer said.
 The document also quoted figures from the governments own petition in tho case showing that tho com pany's percentage of domestic trade in harvesting machines has decreased from S5 per cent in 1903 to 64 per in 1918 and b2 cent in 1921-22.
 Small Domestic Trade.
 On farm implement trade In gem eral. including implements other than machines, the company ayers 1t has always enjoyed much smaller share Of the domestic trade. It quoted United States census fig ures on this point showing its per centage of the total production Of such lines in 1909 was 22.5; In 1919. it was 22.9, the following year 2o.3 and in 1921 it was 20.9.
 Further division of the company, it was argued, would place 1t in an un- fair position in the competition of the business and would deprive it's stockholders ot participation in concern which. as now constituted. possesses full line and distribution. Such a full line business is essential to sue cessful conduct of corporation which must compete for al-year- round trade, according to the an swer. It is further averred that all the company's principal competitors are thus equipped and tG drive the International Harvester company out of the completed field would give an unfair advantage.
 The government claim that the Milwaukee line of implements has been allowed to become negligible is denied, It is claimed instead that In some portions of the country this line has enjoyed considerable, popu- Iarity, but since the International Harvester company has been re- stricted by the 1918 decree to one dealer in a town and by the same decree was required to sell the Mil waukee line, 1t has been impossible to persuade dealers to invest time or money in 1t.
 The company denied that it was it's policy to develop the Mccormick and Deering brands at the expense of other brands. While admitting that the percentage of investment in the Champion and Osborne plants had decreased from 12.9 In 1910 to S.S in 1918. the answer stated that this was by similar decrease in of investment in the Deering and Mccormick plants also.