CHAPTER III

THE INTERNATIONAL HARVESTER COMPANY

For fifty years the Harvester Kings fought one another in the open field

of competition. Their armies of agents, drilled in the arts of rivalry,

waged a war in which quarter was neither given nor sought. It was a fight

almost of extermination. Out of two hundred companies that went to battle

with flags waving and drums beating, less than a dozen came home.

David M. Osborne backed a new self-binder, lost a million, and died of

heartbreak. J. S. Morgan, who had a small factory at Brockport, saw the

immense McCormick and Deering plants and quit. Even the great Whiteley

fell, and Lewis Miller, the father-in-law of Edison and the founder of

Chautauqua, went down "like a great tree upon the hills."

Walter A. Wood, after forty years of success, took Governor Merriam and

James J. Hill as partners, and set out to win the West for the Wood

Company. Their factory was the pride of St. Paul. Their credit was the

best, and their fame was over all the prairies. Yet after five years of

battling they surrendered; and not one harvester is made to-day west of

Illinois.

It is a common opinion among harvester men that from first to last there

has been more money put into the business than has ever been taken out--so

enormously wasteful were these years of competition. By 1902 the harvester

business was merely a terrific and destructive war. The agents were

tearing the whole industry to shreds and tatters. So far as the Harvester

Men could see, they must choose between combination and ruin.

Not one of them was personally in favour of combination. They were

individualists through and through. The spirit of competition had been

bred in the bone. So, when several of them came together to check this

warfare, it was not of their own free will. It was because they could do

nothing else. They were hurled together by social forces over which they

had no control.

One by one these battle-worn Westerners came to New York, "on an exploring

expedition," as one of them said. Here they met Judge Elbert H. Gary, whom

they had known intimately in Chicago. Gary had been William Deering's

attorney for twenty-five years. He was a farmer's son, and had risen to be

the official head of the Steel Trust; so that he was the one man who had

an expert knowledge at once of farms, harvesters, and mergers. And

naturally, when the Chicagoans ran to Gary with their tales of woe, he

brought them across Broadway into the office of J. P. Morgan, which had

become in 1902 a sort of Tribunal of Industrial Peace.

There were four of them--Cyrus H. McCormick, Charles Deering, J. J.

Glessner, and W. H. Jones--and all of them added to the strong preference

for competition a definite opposition to trusts, monopolies, and stock

speculation. They were not the Wall Street type of millionaire. In that

time of booming optimism, they might have made more money in one year by

selling stock than they had made in thirty years by selling harvesters.

But no one of them had tried it. The fact is that they cared more for

the good-will of the farmers and the prestige of their machines than they

did for larger profits. The thing that troubled them most in the proposed

consolidation of properties, one of the Morgan partners told me, was the

fear that prices would in any case have to be raised, because of the

increasing cost of labour and raw materials.

[Illustration: HAROLD McCORMICK Photo by Matzene, Chicago, 1905

J. J. GLESSNER

W. H. JONES Photo by Smith, Evanston, Ill.

JAMES DEERING Photo by Dyer, Chicago]

No wonder that the financiers who undertook to organise them were driven

almost to distraction by their obstinate independence. They had as many

contradictory opinions as a Russian Duma; and it was soon clear that the

only possible way to proceed was to keep them apart until all possible

preliminaries were arranged.

So the four Harvester Men went back home until the details of the new

combination should be worked out. Then they were summoned again to New

York. As was their custom, they went to different hotels, and each man was

handled separately until he was in an organisable frame of mind. This

master-stroke of diplomacy was accomplished by George W. Perkins--Morgan's

most versatile partner; and it gave Perkins a day and a night that he

will never forget. From morning until midnight--from midnight until the

first ray of dawn slanted down Broadway, Perkins dashed from hotel to

hotel like a human shuttle. Deering conceded one point if McCormick would

concede another. Glessner yielded one of his claims, and Jones withdrew

something else. Inch by inch these stubborn men were pushed within tying

distance of each other; and the fifty-year harvester war was about to come

to an end.

The next day Perkins renewed the struggle, but he was too tired to

continue the cab driving between hotels. He telephoned the four Harvester

Men to meet him at Morgan's office. As each man climbed up the rusty iron

steps of the Morgan Building he was switched by the big Irish doorkeeper

into one of those large inner rooms at the rear, on the ground floor,

where many a broken business has been mended. Four men in four rooms, with

Perkins flying in and out--such was the way that the great harvester

company was finished. It was a unique situation, as much like an incident

in comic opera as an affair of business. But the Morgan experts knew that

if the four men were allowed to meet, the old hurtful rivalries would

break out afresh and the project might snap off like a broken dream.

To strengthen the new company with a big surplus of ready money, a

one-sixth interest was sold for twenty millions to Morgan and several

other New York financiers of the "old reliable" sort. Also, a fifth

harvester company, in Milwaukee, was bought from Stephen Bull for about

five millions. And when the last rivet had been clinched and the last nail

driven home, the four Westerners suddenly found themselves sitting around

the same table, in the new International Harvester Company, of Chicago.

There were several harvester companies that remained independent, but

probably not from choice. I do not know of one that has not, at some stage

of its career, tried to get into a trust. Fifteen companies were merged by

Colonel Conger in 1892, but they were poorly fastened together and soon

fell apart. It is also a fact, though one not before made public, that the

Mutual Life Insurance Company tried to form a second Harvester Combine in

1903, with four large manufacturing companies in the merger, and under the

presidency of E. D. Metcalf, of Auburn, New York. When this project

failed, three independent companies--two in New York and one in Canada,

offered themselves for sale to the Harvester Company. It bought one--the

Osborne--for six millions, and refused the others.

"We are big enough now," said Cyrus H. McCormick. "It is not safe for one

company to have a monopoly. What we want to do is to regulate competition,

not to destroy it."

Besides the big Osborne Company, which is now the third largest in the

combine, the Harvester Company has bought five smaller concerns, and built

two new plants--one in Canada and one in Sweden. It is like the original

United States--a union of thirteen industrial colonies. Its output has

risen to 700,000 harvesting machines a year, including all varieties; and

its annual revenue is more than seventy-three million dollars.

With its 25,000 employees and 42,000 agents, this one company is

supporting as many families as there are in Utah or Montana. A square

mile of land would be too small to contain its factories. At its hundred

warehouses there is trackage for 12,000 cars. Around its workshops are six

busy railways of its own, whose engines last year pulled out 65,000

freight-cars, jammed full of machinery for the farmers of the world.

Its properties are so widespread that no member of the company has seen

them all. To run around their circle would be a trip of 15,000 miles. It

owns 20,000 acres of coal lands in Kentucky, 100,000 acres of trees in

Arkansas, Mississippi, and Missouri, and 40,000,000 tons of ore in the

Wisconsin and Mesaba Ranges. It has staked its money--$120,000,000--upon

the belief that for fifty years longer, at least, the scientists will find

no substitute for bread.

The fact that Elbert H. Gary, the official head of the Steel Trust, is one

of its directors, has not prevented this self-sufficient company from

owning a complete steel plant, where 2,000 Hungarians make iron from ore,

and steel from iron. It saws its trees into lumber in Missouri, and roasts

its coal into coke in Kentucky. Its domains are so extensive, in fact,

that if they were contiguous, they would make a Harvester City as

spacious as Greater Chicago.

But the most surprising feature of this unique corporation, to one who

sees it for the first time, is the distracting variety of things that pour

out of its factories. Its business is by no means to make harvesters and

nothing else. Its true character seems to be that of a manufacturing

department store for farmers. As a matter of actual count, I found in its

factories and warehouses thirty-seven different species of machines,

besides all manner of variations of each sort.

Here you will see, not only a mower to cut the grass, but a tedder (a kind

of steel mule, with an incurably bad temper) to kick and scatter the

new-mown hay, so that it will dry in the sun; a rake to gather it

together; a loader to swing it on the wagon; and a baler to compress it

into bundles.

Here are the self-binders, not for the grain only, but for corn and rice

as well. For the especial benefit of King Corn, whose tribute to this

Republic has lately swollen to twelve hundred millions a year, the company

is making machines that pluck the corn from the stalk with iron hands,

and others that wrench off the husks, shell the corn, and grind it into

several varieties of breakfast food for the four-footed boarders of the

farm.

Here is a new machine, much less elegant than useful, for flinging manure

over a field. Barefooted women did this work in the old brutal days of

hand labour. But now, thanks to the brain of a canny Canadian farmer,

Joseph S. Kemp, one worker can feed the hungry fields without so much as

soiling the tips of the fingers.

The farmer's wife--and there are 10,000,000 of her in the United States,

has been the last one to be considered, in this outpouring of machinery.

But I found at Milwaukee a rebuilt factory belonging to the International,

where 2,500 men are making fifty cream separators and 100 gasolene engines

a day, both designed to make life easier for Mrs. Farmer, as well as for

her husband. Also, it will please her to know that she may soon be honking

her way to town in an automobile buggy, which the big corporation is

making for farmers in a new factory in Akron.

A harvester company must follow the whims of its customers, almost as much

as though it had newspapers for sale. It must give 10,000,000 farmers what

they want. At the Plano factory I saw 470 different varieties of wheels;

and sixty-one kinds of wooden tongues at McCormick's.

"Nothing could be simpler than a tongue," said Maurice Kane, the chief

mechanical expert of the International. "It is a mere pole. If we suited

ourselves, we should only make two kinds--one for horses and one for oxen.

But the farmers of the world have sixty-one different ideas as to how a

tongue ought to be made, and we must give them what they ask for."

The last Minnesota Legislature, in the simplicity of its heart, proposed

to establish a complete harvester plant for $200,000. It may surprise the

members of that Legislature to know that the International has lately

spent twice as much merely to improve one twine factory in St. Paul, and

four times as much to build one warehouse in Chicago. Though it began its

career with sixty million dollars' worth of equipment, it has been forced

by the pressure of its trade to spend sixteen millions more on its

factories. And for lack of a weather prophet, it is obliged to carry over

from five to six million dollars worth of machines each year, which remain

unsold in different countries.

By its very nature, this industry cannot be carried on in a small way. It

is as essentially mutual and cooperative as life insurance or banking. If

a malicious "green bug" devours the wheat in Kansas, the loss must be made

up by larger sales somewhere else. This, no doubt, is the main reason why

every plant that was ever built to supply a local trade has failed.

No other manufacturing business carries so many risks or includes so many

factors. It is the most comprehensive industry in the world. It is the

link between the city and the farm. It is both wholesale and retail,

ready-made and made to order, local and international. It must make what

the farmer demands, and yet teach him better methods. It is at once a

factory, a bank and a university.

Thus, of necessity, the Harvester Company represents in the highest degree

the new American way of manufacturing: everything on a large scale,

elaborate machinery, unskilled workmen, and a vast surplus to drive it

past failures and misfortunes. From its ore mines in the Mesaba Range,

where I saw a steam-shovel heap a fifty ton railroad car in ten swings, to

the lumber yard of the McCormick Works, where 26,000,000 feet of hardwood

are seasoning in the sooty rays of the Chicago sun, it was a panorama of

big production.

"How many castings did your men make last year?" I asked of the hustling

Irish-American who rules over one of the McCormick foundries.

"Very nearly 44,000,000, sir," he replied. "And the gray iron foundry over

there uses three times as much iron as we do, and it made more than

12,000,000."

Fifty-six million castings! Merely to count these would take the whole

Minnesota Legislature sixteen days, even though every member worked eight

hours a day and counted sixty castings a minute. Far, far behind are the

simple, old-fashioned days, when a reaping tool was made of two

pieces--the handle and the blade. There are now 300 parts in a

horse-rake, 600 in a mower, 3,800 in a binder.

When McCormick built his first hundred reapers in 1845, he paid four and a

half cents for bolts. That was in the mythical age of hand labour. To-day

fifty bolts are made for a cent. So with guard-fingers. McCormick paid

twenty-four cents each when James K. Polk was in the White House. Now

there is a ferocious machine, which, with the least possible assistance

from one man, cuts out 1,300 guard-fingers in ten hours, at a labour-cost

of six for a cent.

Also, while exploring one of the Chicago factories, I came upon a herd of

cud-chewing machines that were crunching out chain-links at the rate of

56,000,000 a year. Nearby were four smaller and more irritable automata,

which were biting off pieces of wire and chewing them into linchpins at a

speed of 400,000 bites a day.

"Take out your watch and time this man," said Superintendent Brooks of the

McCormick plant. "See how long he is in boring five holes in that great

casting."

"Exactly six minutes," I answered.

"Well, that's progress," observed Brooks. "Before we bought that machine,

it was a matter of four hours to bore those holes."

In the immense carpenter shop he pointed to another machine. "There is one

of the reasons," he said, "why the small factories have been wiped out.

That machine cost us $2,500. Its work is to shape poles, and it saves us a

penny a pole; that is profitable to us because we use 300,000 poles a

year."

In one of its five twine mills--a monstrous Bedlam of noise and fuzz,

which is by far the largest of its sort in the world--there is enough

twine twisted in a single day to make a girdle around the earth.

In the paint shop the man with the brush has been superseded--a case of

downright trade suicide. In his place is an unskilled Hungarian with a big

tank of paint. Souse! Into the tank goes the whole frame of a binder, and

the swarthy descendant of Attilla thinks himself slow if he dips less than

four hundred of these in a day. The labour-cost of painting wheels is now

one-fifth of a cent each. Ten at once, on a wooden axle, are swung into

the paint bath without the touch of a finger. And the few belated

brush-men who are left work with frantic haste, knowing that they, too,

are being pursued by a machine that will overtake them some day.

In the central bookkeeping office of the Harvester Company I found some

almost incredible statistics. Here, for instance, are a few of the items

in last year's bill of expenses:

Two hundred and thirty-five miles of leather belting, 940 miles of cotton

duck, 2,000 grindstones, 3,000 shovels, 10,000 brooms, 1,670,000 buckles,

1,185,000 pounds paint, 4,000,000 pounds wire, 15,000,000 pounds nails.

Merely to maintain its experimental department costs this imperial company

$7,000 a week. Here are more than two hundred inventors and designers,

well housed and well salaried, and not tramping from shop to shop, as

inventors did in the good old days. They are paid to think; and the

company is mightily proud of them. But the truth is that all large

corporations which employ an army of unskilled workmen are being compelled

to offset so much mere muscle by a special department of brains.

There is, besides, a most elaborate system of inspection. In the Deering

factory I saw a squad of ten men who were testing the newly made binders

with straw. "About three out of a hundred need fixing," said the foreman.

The chains are tested by a violent pneumatic machine. Every link, even, is

branded with a private mark--[triangle]. And in the Hamilton plant a new

scheme is being tried--the whole packing gang has become a staff of

inspection. Whenever a man finds a hundred defective pieces, he gets an

extra dollar. One sharp-eyed Scot in the packing-room confided to me that

he had made "as high as two shillin's a week."

Such is the scope of the International Harvester Company, created in 1902.

As to the men who control it, I have had the greatest difficulty in

penetrating back of the business to their personal characteristics. For

they dislike the fierce light that beats upon a rich American.

Of its president, Cyrus H. McCormick the Second, the first word to be said

is that he is not built on the same lines as his belligerent father. He

would fare badly, very likely, if he were in charge of a

catch-as-catch-can business, such as the reaper trade was thirty years

ago. The making of harvesters is, to him, half a duty--to his father, his

workmen, and the machine itself--and half a profession--not a battle nor a

game, as it was with the first Reaper Kings. He has no desire to play a

lone hand in the business world. And his painstaking purpose, as a man of

affairs, is to secure less speculation and more stability, less waste and

more organisation, less friction and more community of interest.

In all things he is a simple and serious man. I have seen him work from

noon until midnight; but in my opinion, if he really had his choice, he

would prefer a quiet homestead, in the little town of Princeton, where he

could pursue a life devoted to the interests of Princeton University and

the Civic Federation. Even now, whenever he can get free from the

treadmill of his office, his greatest delight is to escape to a camp in

the wild lands of northern Michigan, where he can dress like a fisherman

and forget that he is the servitor of a hundred and twenty millions.

Harold McCormick, his brother, and a vice-president of the big company, is

a boy-hearted man of thirty-five. He has a quick-action brain; but his

strong point is his personal magnetism and likableness. He knows the

harvester business throughout, having been a shirt-sleeve workman in the

factory, an agent at Council Bluffs, and a field expert in several states.

Most of the stories told about him illustrate his naive boyishness. For

instance, when he had become an expert in handling the harvester, an

agent-in-chief near Chicago telegraphed for a dozen men. Only eleven

experts were available, so Harold volunteered to be the twelfth. He had

his working-card made out in the usual form, entitling him to $18 a week.

On Saturday night, when the twelve men went to the agent-in-chief for

their wages, he said, "I want all of you to come in and have a conference

with me to-morrow morning at ten o'clock."

"Sorry to say, Mr. Blank," said young McCormick, "that I can't be here

until Monday."

The agent stormed. How could anything be more important to a

three-dollar-a-day man than his job?

"Well, if you really must know the reason," said the berated mechanic, "I

have an appointment to go to church to-morrow morning with the Rockefeller

family."

The third brother--Stanley McCormick, worked his way up from labourer to

superintendent of the whole plant. For years he rose at five o'clock every

work-day morning, and walked into the factory at six.

All three of the McCormicks show a remarkable sense of obligation, almost

of gratitude, to their employees. At the time the International was

organised, Stanley said to the others:

"What about the men? There are some of them that deserve a share in the

new company, as much as we do."

So a list of the old employees was made, from Charlie Mulkey, the old

watchman, to R. G. Brooks, the superintendent, and $1,500,000 was divided

among them. Recently a complete profit-sharing plan, such as Perkins had

worked out for the Steel Trust, was put in working order, and about

$200,000 of extra money have been scattered through the pay-envelopes.

The two Deerings, who are now chairman and vice-president, were

disciplined in the same stern, old-fashioned way as the McCormicks.

"Put this young man to work at the bottom rung of the ladder," said

William Deering, when his younger son, James, was graduated from the

university.

Being in many respects a chip of the old block, James Deering plunged into

business with as much energy as though he had to toil for his millions as

well as inherit them. He became a field expert, and followed the harvest

from Texas to North Dakota. He asked for no favours, but sweltered along

among the Western farmers for several summers. Then he went to the foot of

the ladder in the factory and wrestled with big iron castings and steel

frames. Step by step he worked up, until even his Spartan father was

satisfied and made him the manager of the whole plant.

At present there is perhaps no man in the harvester industry who has so

great a variety of attainments as James Deering. He is a shrewd

commercialist, yet he has found time, no one knows how, to master several

languages and to run the whole octave of self-culture.

Charles Deering, the older of the two brothers, had less farm experience,

as he served for twelve years in Uncle Sam's navy. He was a lieutenant

when he came ashore to help his father make harvesters. At that time he

did much to solve the binder-twine problem--how to get better twine and

plenty of it. Then, when the drama of consolidation was staged by Morgan,

he took a leading part. Personally, he is a bluff, forceful, but

companionable man, such as one would expect to find on the deck of a

war-ship rather than in the telephone-pestered office of a sky-scraper.

The two other vice-presidents of the Harvester Company are battle-worn

veterans of the competitive period--J. J. Glessner and William H. Jones.

Glessner, beginning as a bookkeeper in Ohio, has for many years been

regarded as a sort of unofficial peacemaker and balance-wheel of the

trade. Everybody confided in Glessner. He did as much as any one else to

harmonise the warring Harvester Kings; but it is also true that it was the

gentle Glessner who developed competition to the explosive point by

originating the system of canvassing. He poured first oil and then water

on the fire.

As for William H. Jones, he is a sturdy and genial Welshman, who was born

and bred in a farmhouse. As a boy he reaped wheat with a sickle in the

valleys of Wales. About forty years ago, when he had become an American,

he bought a reaper and a tent, and set out to earn his fortune. By working

twenty hours a day, he had earned enough money, by 1881, to begin making

reapers of his own, at Plano; and he built up a large business.

The General Manager of this big anti-famine organisation is a young

Illinoisan, named C. S. Funk. "He is the central man," says Perkins. No

other Chicagoan of his age--he is only thirty-five--has pushed up so

quickly to so high a place, with nothing to help him except his own grit

and ability. To-day he manages a 65,000-man-power corporation; yet it is

very little more than twenty years since he was trudging six miles on a

hot July day, to ask for his first job in a hay-field. Young as he was, he

was then the support of a widowed mother, and there were seven children

younger than he.

His office, in which I was permitted to take notes for several days, is a

nerve-centre of the world. Everything that happens to the human race is

of interest to this alert young chancellor of the Harvester Company. A

drought in Argentina, the green bug in Kansas, a tariff campaign in

Australia, a shortage of farm labour in Egypt, a new railway in Southern

Russia, such are the bulletins that guide him through his day's work.

His wide-flung army is officered mainly by farmers' sons who had a knack

for business or for machinery. His assistant, Alex. Legge, is an ex-cowboy

from Nebraska. Before the era of peace and unity began, Funk and Legge had

fought each other in twenty states.

"Legge was one of the best fighters I ever knew," said Funk; "and I think

you might put him down as the most popular man in the company."

Maurice Kane, the company's Chief Improver, and a fine type of the

Irish-American, was born on a small farm near Limerick. He was a farm hand

in Wisconsin when he first saw a harvester, and he has pulled himself up

every inch of the way by his own abilities. A. E. Mayer, the first of an

army of forty thousand salesmen, was born on a farm in New York. He is a

sort of human Gatling gun, loaded with the experience of his trade. B. A.

Kennedy, the overlord of the thirteen factories, is a seasoned veteran who

can remember when he stood by the forge of a country blacksmith shop and

hammered out ploughs by hand. Only one of the company's generals, H. F.

Perkins, began life with such a luxury as a university education. He is in

charge of the raw materials--the coal and iron and lumber and sisal and

flax.

These are a few of the men who manage this international empire of

bread-machinery. They are all practical men, hard workers, close to the

farm and the farmer. They are not fashionable idlers, nor promoters, nor

Wall Street speculators. And they have no more use for tickers than for

telescopes--a fact which is vitally important, now that they are making

more than half the harvesters of the world.

Such is the International Harvester Company from the inside. But an

outside view is equally necessary. It is of tremendous interest to

10,000,000 American farmers to know the habits and the disposition of

this powerful organisation. As Theodore Roosevelt has said, there are

good combinations and bad ones. Which is the International Harvester

Company?

In order to get the facts about it at first hand, I interviewed the four

chief competitors of the Harvester Company, three Attorneys-General, seven

editors of farm papers, four professors of agricultural colleges, seven or

eight implement agents, thirty farmers in Iowa, Minnesota, and Wisconsin,

two state governors, and the Federal Bureau of Corporations. Before I had

gone far, I learned that the big Harvester Company has been beset by a

host of new troubles.

It is an evidence of the eternal futility of human ambition, that when a

group of warring Harvester Kings had made peace with one another, when

they had healed their wounded and buried their dead, and sat down to enjoy

a future of prosperous tranquillity, up sprang a host of new enemies,

armed and double-armed with weapons from which there seemed to be no sort

of defence. Their outposts were shattered by legislative dynamite. Tariff

walls were built across their paths. And half a dozen giant ogres,

otherwise known as Attorneys-General, crashed into their peaceful business

with destructive clubs of law.

The bigger the organisation the more trouble to protect and preserve it.

This is what Abraham Lincoln learned--what the whole United States

learned, half a century ago; and it is the lesson that the

harvester-makers are studying to-day. It is a new phase of an old fact; it

is the Tragedy of the Trust.

Some foreign nations, too, have taken their cue from American

Legislatures, and have become almost as hostile to the Chicago company as

though it were exporting roulette wheels and burglars' jimmies. France

taxed half a million from it last year by a penalising tariff. Australia

has made it a political issue. Germany takes a toll of $11 on every

self-binder, and Austria takes $25. Roumania raised the duty on harvesters

several months ago; and there is a general feeling that the time has come

to check the supremacy that the United States has always had in this line.

Yet the fact that the Harvester Company has been fined in two states does

not mean that it has taken advantage of its size to become a lawbreaker.

The "crime" of which it was declared guilty, was the maintenance of the

old practice of "exclusive contracts," which has been the almost universal

custom for fifty years. Each agent was pledged not to sell any other

company's goods. _The International abolished this requirement two years

ago, and several of the independent companies still retain it._ Until the

merger was organised it was regarded as fair enough. It is one of the most

usual habits of agency business. But the American people are now demanding

that a big company shall be much more "square" and moral than a small

capitalist who is fighting for his life.

Many of the old methods of the rough-and-tumble days have survived. It is

not possible to say "Presto, change!" to 40,000 battling agents, so that

they shall at once begin to play fair and cooperate. But the general

opinion is that the Combine has raised the harvester business to a higher

level. At one of its branch offices I came accidentally upon a letter

written by Cyrus H. McCormick, in which he forbade the taking of rebates

from railways.

"You must clearly understand," he wrote, "that this company will maintain

a policy of absolute obedience to the law."

Among the farmers of Iowa and Kansas I found no definite charges against

the harvester combine--nothing but that vague dread of bigness which seems

natural to the average mind, and which even the great-brained Webster had

when he opposed the annexation of Texas and California. Of four farm

editors, one was against all "trusts" on general principles; and the other

three believed that the evils of harvester competition were much greater

than those of consolidation. The bare fact that this one corporation has

$120,000,000 of capital alarms the old-timers. Others have become more

accustomed to the Big Facts of American business.

"Why," said one implement dealer, "after all, $120,000,000 is less than

the American farmers earn in a week."

He might also have said that it was less than the value of one corn crop

in Iowa, or half as much as the Iowa farmers have now on deposit in their

savings banks. It is very little more than Russell Sage raked in through

the wickets of his little money-lending office, or than Marshall Field

accumulated from a single store. In fact, if bread were raised one cent a

loaf for one year in the United States alone, the extra pennies would buy

out the whole "Harvester Trust," bag and baggage.

The bulk of the farmers, so far as I could harmonise their opinions, are

now too well accustomed to big enterprises among themselves to be scared

by the Chicago merger. They have at the present time more than five

thousand cooperative companies of their own. And some of these are of

national importance; as, for instance, the powerful Cotton Growers' Trust,

and the Farmers' Business Congress, which owns 800 elevators for the

storage of grain.

"My only objection to the International Harvester Company," said a

business man in St. Paul, "is that it sells its machinery cheaper in

Europe than it does in the United States." I investigated this charge, and

found it wholly incorrect. The greater expense and risk of foreign trade

compels the manufacturers to ask almost as high prices as American farmers

had to pay twenty years ago. But there is a quite credible reason for

this rumour. It is simply this--that for some less progressive countries a

crude, old-fashioned reaper is being made, to sell for $45. The modern,

self-rake reaper is too complex for the simple mind of many a Russian

farmer, so he is supplied with a clumsy machine which is $15 cheaper, but

which looked, to my unskilled eye, more than $30 worse.

No one accuses the "Trust" of having unreasonably raised prices. On the

contrary, it is generally given full credit for holding prices down, in

spite of the fact that it is paying from twenty to eighty per cent. more

for its labour and raw materials than was paid in 1902. Generally

speaking, all farm implements except thrashing-machines are cheaper now

than they were in 1880, when the competition was most strenuous. Binders

have dropped from $325 to $125; hay-rakes from $25 to $16; and mowers from

$80 to $45.

"I paid $200 for a self-binding harvester twenty-five years ago," said a

Kansas farmer. "Ten years later I bought another for $140 and in 1907 I

bought one from the International for $125, which is in my judgment the

best of the three machines."

The International has competitors, too--very active and able ones. Binders

are made by 4 large independent companies, mowers by 17, corn-shredders by

18, twine by 26, wagons by 116, and gasolene engines by 124. Of the

thirty-seven different machines made by the International there are only

three--hemp-reapers, corn-shockers, and rice-binders--that are made by no

other company, and even these machines are not protected by any basic

patents. Powerful as the International is, it is still far from the place

where business is one long sweet dream of monopoly.

The four independent companies that make binders seem to have no fear of

the "Trust." "We have no fault to find with it," said President Atwater,

of the Johnson Company. "We don't want it smashed. Why? Because our

business has doubled since it was organised; and because we would sooner

compete with one company than with a dozen."

"The 'Trust' was the only thing that saved the whole harvester business

from annihilation," said the ex-president of another independent company,

when I pressed him for his personal opinion, and promised not to use his

name. "The cold fact is really this," he added, "that the International

Harvester Company has bettered conditions for the farmer, for the

independent companies, and for everybody but itself."

"The big combine has never misused its power," said a third of the

International's competitors. "Now and then its agents make trouble, just

as ours do, no doubt. But the men at the top have always given us a square

deal."

So it is my duty to state that on the whole the Harvester Combine is a

good combination and not a bad one. I have found it radically different

from the get-rich-quick trusts that have been described in recent books

and magazine articles. It is not a monopoly. It is an advocate of free

trade. Its stock is not watered, nor for sale in Wall Street. And the men

at the top are very evidently plain, hard-working, simple-living American

citizens, who are quite content to do business in a live-and-let-live way.

They are not thoroughly reconciled, even yet, to being a merger. They

look back with open regret to the wasteful but adventurous days of

competition. Of the combination the elder Mrs. Cyrus McCormick finely

said:

"It was a hurt of the heart. Each of our companies was like a family. Each

had a body of loyal agents, who had been comrades through many struggles.

But the terrible increase in expenses compelled us to subdue our feelings

and to cooperate with one another."

"I am not a merger man myself," said William Deering, "although I believe

that the International Harvester Company has been a benefit to the

farmers."

Cyrus H. McCormick goes still further. He is a "trust-buster" himself, so

far as the over-capitalised and oppressive leviathans of business are

concerned. He said to me frankly: "Some of the hostility to our company is

inspired by worthy motives, growing out of the general opposition to the

so-called trusts." And when a North Dakota congressman proposed in 1904

that the International Harvester Company should be investigated, Cyrus

McCormick at once sent a message that amazed the Bureau of

Corporations--"Please come and investigate us," he said. "If we're not

right, we want to get right."

"Yes," said one of the highest officials of the Roosevelt administration,

when I asked him to corroborate this very remarkable story. "It is true

that from 1904 it has been the continued desire of the International

Harvester Company that we should investigate them. In fact, during the

last year (1907) they have urged us with considerable earnestness to make

this investigation."

So, this big business has evolved from simple to complex in accordance

with the same laws that rule plants and empires. It has probably not yet

reached its full maturity, for it is greater than any man or any form of

organisation, and the tiny ephemeral atoms who control it to-day are no

more than its most obedient retinue. They come and go--quarrel and make

friends--live and die. What matter? The big business, once alive, grows on

through the short centuries, from generation to generation.

And what does it all mean--this federation of thirteen factory

cities--this coordination of muscle and mind and millions--this arduous

development of a new art, whereby a group of mechanics can take a

wagon-load of iron ore and a tree, and fashion them into a shapely

automaton that has the power of a dozen farmers?

_It means bread. It means hunger-insurance for the whole human race. As we

shall see in the next chapter, it means that the famine problem has been

solved, not only for the United States, but for all the civilised nations

of the world._

The Romance of the Reaper · 第 3 / 5 章