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Show Harvester Company Denies De-nies It Is Violator of Sherman Law St. Paul, Aug. 5. Tho answer of the international Harvester company, to bo filed by the United States under tho Sherman anti-tni3t law, was filed in the United States district court at St. Paul today. The answer denies specifically all charges of restraint of trade1, monopoly monop-oly and unfair business practices. It alleges that prior to the formation of the company In 1902 the harvester business had been conducted In a wasteful manner, detrimental alike to manufacturers, retail dealers and consumers, con-sumers, that onh the two largest manufacturers had profitable businesses, busi-nesses, while the business of others was decreasing and had become hazardous haz-ardous and unprofitable. The International Inter-national Harvester company, it was stated, was not an unlawful combination; combina-tion; but a new company formed with ample capital in order to secure large economies In the agricultural implement imple-ment business, by producing more cheaply the raw materials, by enlarging enlarg-ing facilities and correcting wasteful methods of distribution, by increasing foreign trades and by better organized distribution and Inspection departments. depart-ments. Monopolies by patents is denied, tho original basic patents on binders and mowers having expired prior to 1002 The detailed statements of earnings and profits contained In the answer shows that in the first eight years tho dividends paid averaged only 5.92 per cent on the fully paid capital stock and the total earnings only 7.15 per cent, and that the nmin expansion In the company's business has been gained in the new lines of implements and the foreign trade, which has increased in-creased from about $10,000,000 in 1903 to over $42 000,000 in 1911. I Company Has Competition. It is held that the company has active ac-tive and Increasing competition, the number of competitors in binders being be-ing eight, with an aggregate capital of more than $100,000,000: in other lines competitors number from fourteen four-teen in mowers to one hundred elgh-ty-ono in gasoline engines The answer declares that the prices of harvesting machinery have Inereas'-ed Inereas'-ed about three per cent over 1902, while the machines have been improved improv-ed in quality and the materials and labor entering into their manufacture have Increased on the average of 25 per cent. As to binder twine, the answer asserts as-serts that since the company was formed, the wholesale price of sisal twine has fallen from 11 to 0 1-2 cents a pound and of Manila twine from 13 1-2 cents to 7 7-8 cents a pound- further, that the company has expended more tlian a million dollars In the effort to produce binder twine from American-grown flax, which, if successful will keep within tho Unit- . cd States 20,000,00.1 now annually ex. nenOod for Imported sisal and manila fibers The wages and conditions of its em- i ployes. the answer says, have been Improved by the harvester company to an extent Impossible under trade conditions existing prior to 1902; wages have been increased fullv 27 per cent piofit-sharing systems hae been established; sanitary and safety appliances installed: a liberal plan of workmen's compensation put into effect ef-fect with a benefit department embodying em-bodying death and sickness benefits for employes, and with a liberal pension pen-sion system. Invited Full Investigation. It is also stated that the company has given wide publicity to its business busi-ness and In 190C Invited a full in-vestiagtlon in-vestiagtlon by the department of commerce com-merce and labor, that since 1907 the bureau of corporations has been given free access to Us books and records and every facility for obtaining complete com-plete information as to Its business policies, and methods; that since 1907 the company has filed with the bureau of corporations Us annual reports coverine all Its business operations and that it welcomes the utmost publicity pub-licity and public supervision, and is ready, and desirous of remedying any defects or mismanagement In Its business, busi-ness, that relying upon the advice of able counsel as to the entire legality of Its organization the company had made enormous investments in de-vleoplng de-vleoplng its foreign and domestic trade( and that Its stock has been purchased pur-chased by the general public and more than 3.600 employes who have received receiv-ed stock under the company's profit-sharing profit-sharing plans. The answer Insists that the United States government, having had for ten vears full knowledge of the company's organization and methods and their beneficial effect upon the trado and public, should not, after thousands of employes and others have made largo Investments in its stock, be permitted In a court of equity to urge that tho corporation is illegal and should be destroyed. |