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Show I Si INTERNATIONAL I ' 1 HARVESTER GASE I J ' J President McCormick Makes a I M 11. Reply to Charges. II ' I 1 jf HE DEFENDS THE ORGANIZATION I II i .Ijg ,J Statement lesued In Connection with llli the Government's Suit to Dls-H Dls-H If M l J colve International Har. H 1 E I f vester Company. I I i 1 jjj ijt The government tiled a dissolution '4 J 'I "lt In the federal court at St. 1'aul, B -j $& I Minn., April 30, against tho Interna-H Interna-H ll . tlonnl Harvester company, alleging H jjljjj I violation of tho Sherman law and mak-H mak-H 'J fflj I ' Ing tho goneral charges that aro cus-I cus-I "- ill I tomary In a hill of this kind, and ask-H ask-H P jl lug for whatever rollers aro consul-H consul-H 'I 11 cred necessary by tho court. Tho bill H i fi ' is a very long ono and therefore can-H can-H 4 1 , not bo reproduced, but It sets forth, H JUj In effect, that tho Harvester company III b a monopoly in rostrulnt of trado, 0j ' bns used oppressive methods In fore- i Ing Its agents to handlo Its goods ex lij , , cluslvely, otc. To theso charges Pros- I lit Ident McCormick baa mado tbo fol- nffll ' I lowing reply: J j I "Tho International Harvester caso j 111 , ' differs radically In Ita facts from all I inSS 'i' ll10 B0'cn1'011 'trust' cases hcrctoforo H i '! decided under tho Sherman law. Tho H ttuj ' International Harvester comrony was H I'll organized In 1902 for the purpeso of H I Qjl j securing economy In the mnrufrrturo H i j! nnd salo of harvesting machinery, and H 1 j lf of Increasing tho fo'clrn trni'e. It H 1 9j. bad no wator In Its captLir-.rtlon, r-nd B ' 1 11 ( "it has earned only a rcason.-blo return B , fifl ' on "B capital, less than 7 per cent B i ' per annum on tbo average Tbo prices II j ) of Its machines aro now substantially g tbo samo us In 1902, notwithstanding , nn Increase of 15 per cent In raw ma- i ' terlal prlecu anil .10 per rent In wages. j t The cnnipaiiy bus caused a largo sav- 1 i Ing to American farmers In tho cost ji of agricultural Implomcnts. It has In- jL creased tho foreign trndo 'In ngrlcul- 1,; tural Implomcnts fourfold In nlno a , lears; Its foreign sales In 1911 wero ifij over $42,000,000. It has not sold chonp- 1'! !i or ubroad than at homo. Its treatment i ll of ,ta customers, Its employes. Its $ " agents and Its competitors has been in accord ulth tho highest standard Jjm of othlcs ond honorablo business meth- HJ j ''' ds. To tho farmers It has given bet- Bt I " i tor service and bettor inachir.. .; to Bj ft ' agents and dealers, a less li-n cua Bj . i and tliictuatlng tnialtics and to 111 era- BJ (,(. I ployos It has given higher wpp:-. lm- B .' 1 j proved mid sanitary vvorl.lns c-niil- Bt 'j tlonB. Insurance agaln3t sIcknc- nr- Bf t cldcnt a:id old ags, and a sharo 1.. tho Bj -i'j protlta. B ' X- "T1,n (nrrrcs "f n-.lEccrd ct f-und BJ j ln Hi" OH lnvo been met cm dls- Bf 1 Proved by t'10 coini.T In otiier canes; Bl J (1 ' nd they will r-;-la f-!l. letatsi they ! I "ro rntrtio. Tl.o B,iriT.o curt of J,1 MIesou.l. In n suit In vvilUi thoso Hl 'W charges wero fully gono Into, Bald: Bf 1 11 " 'On tho whole, tho evidence shows Bf I that the lutoriiatloual Harvester com- BJ I ' pany has not used Kb power to opprojj Bl I or Injure tbu furmeia who arc Its cus- Bj j tomers." Bt "And ngaln: Bf B1 I "'Tho price of harvesting machines BJ t bas not Increased ln proportion to tho BJ: ij increased cost of construction or the BJJ i (if Increased merit of tho machines, atid BJj ii, respondent has brought other farm Ira- BJ! 21 plemonta Into trade " BJ) ;'i "'Tho evldcnco also Bhows that tto BJ I '&' machines manufactured oy the Intor- BJl ,Hj national Harvester company have been BJ 'j greatly lniitoc 1 In iiuallty and tho BJ '! item of tepalr material has been is- BJi j .; duccd ln price and placed within clcssr BJ' 5 ,, reach of the farmer ' 1 l "Tbo organizers or this compiny Bl ' acted under tbo advlco of ublc counsel, BJ ' t ond lu tbu sincere bolUf that they BJ' 1 wnrp violating no lav. If under later BM decisions It should be held that tin BR lliw w"a Violated, it could only bo BM 1 through tho creatlcn of a power to op- Bl !! pres which has never been exercl'oj BK ,1s "More than six years ao the com- Bft rnny asked for Its Invdutlgttlon by the Bft ! United States govornn-ent, and oiened BJL; n11 its books and records for Inspec- BB' tlon, and furnished all Info.iua Ion ro- BB ' t quested No suggestion of any changa Bh . ! 'n "8 business methods l.as bcon mado BK 1 t 't by tliu government at uny time BM 1 ' Hocently, a full and frank dlscutslon BB . 1 of t,le vvholo situation has been had BK f between the representatives of ths gov- BB 'I1 1 erumeiit and tho company, In an lion- BB I est desire upun both stdc3 to avoid BB " litigation. Eon-o plan racy yet bo BB ' found which will o'ovlato tho necessity BB ' f) of any prnl acted lltlga'ton by Batis- BB " j tying tho chums mado under tho Sher- BB man net without seriously Impairing BBJ A tho economic ndvantnges and benetlts BB ' secured by tho organization of this BBJ f company. Nn form of reorganization, BBS however, was suggested by tho govern- BB meut which Bcemcd practically poa- BB BB i "The government has bcon careful BC i to avoid embarrassment to tbo foreign BJj ', business from tho litigation, tho bill BJI Tl'i'l makes no uttnek upon, and seeks no BE j' M change In, tho export business of the BJ- U,1 i 1 company. The filing of tho bill will BB' JHk. '" " way ln,crfel" ,vltl1 'I'13 company BBJ !JBBhBML carrying on its buslnosa the same u BBBBBBBB heretofore |