GENERAL FARM PROGRAM 



845 



"The 46,000 IH stockholders are a cross section of all groups— farmers, house- 

 wives, factory workers and others" blurbed the company publicity agent. He 

 neglected to point out that these stockholders, each of them owning only a small 

 parcel of stock, have absolutely no control over the company. 



The real control is vested in the nine individuals who, according to United 

 States Government investigations, own 38 percent of all Harvester common stock. 

 Banks, brokers, trustees, and insurance companies own another 40 percent, so 

 that only approximately 12 percent of the total stock is held by 46,000 stock- 

 holders. 



The nine stockholders owning 38 percent of Harvester common stock are the 

 McCormick family and heirs. Their share of 1948 dividends amounted to 

 $8,000,000 (not including dividends from preferred stock). That's the real story 

 of how profits mean progress. For a handful of people — a tightly knit family 

 group owning almost two-fifths of all common stock — there is " unbelievable 

 wealth. 



Many of the large stockholders are among the top executives, so they draw 

 down handsome salaries in addition to their dividends. In its 1948 report to the 

 SEC, Harvester revealed that it supports 94 top executives at salaries of more 

 than $20,000 each. The three highest are: 



Not only do top executives enjoy fat salaries, plus in many cases, tremendous 

 dividends, but the company also provides for their old age. About $215,000 was 

 paid into a pension trust by IHC in 1948 for the benefit of 94 big shots. The 

 FE-CIO challenges the companv to justifv a pension policv that takes care of a 

 $200,000-a-year executive but not a $3,b00-a-year worker. FE-CIO calls for 

 pensions for Harvester workers, financed by the company- and jointly administered 

 with the union. 



IHC paid out $3,000,000 in salaries in 1948 to 94 top executives earning in 

 excess of $20,000 annually. In effect, millions in profit were thus concealed (and 

 tax free to the company) in excessive top-bracket salaries. 



The company slogan is right. Profits have meant progress — for the insiders, 

 the McCormicks and other heavy stockholders, the big executives. But for the 

 worker and farmer, the progress has been all backward. 



Financial Report on Oliver Corp. Covering 1948 Operations 



Oliver Corp. completed its thirteenth consecutive year of profitable operations 

 in 1948 with a record that eclipsed those of all previous years. Sales were 103.3 

 million dollars, being 40 percent over 1947 sales of 73.8 million dollars and 103 

 percent over 1946 sales of 50.8 million dollars. 



Profits after taxes climbed even more rapidly. The 1948 net profit after taxes 

 of 7.9 million dollars was 94 percent over 1947 net of 4.1 million dollars and 

 295 percent greater than 1946 net profits of 2.0 million dollars (see table at 

 end of report). 



These 1948 superprofits were taken directly from the pockets of Oliver workers 

 and farmer-customers as the economies of new and more modern production 

 methods and greater output per worker were reserved solely for stockholders 

 and company profit coffers. 



Oliver workers will be cheered to learn that "in addition to cjuarterly and extra 

 dividends, a special centennial dividend was paid to stockholders on June 30, 

 1948, to coincide with the celebration of the beginning of the second century 

 of the business." (1948 Annual Report to Stockholders, p. 4.) Had the Oliver 

 worker shared equally in centennial year disbursements, he would be enjoying 

 wages three times as high as 1947. For the well-cared-for common stockholder 

 rejoiced in 2.4 million dollars in dividends in 1948, compared to $802,859 in 1947. 



Even after these generous dividends (plus the fixed $368,940 for preferred 



