FOR THE HARVESTER COMPANY 123 



and methods existing in the trade prior to the formation of the 

 merger, nearly all of which benefits have grown out of its large 

 resources, facilities, and organization: 



(1) Harvesting machines have been improved in quality, dur- 

 ability and efficiency much more in the years since the merger than 

 in the same number of years before the merger. The best features 

 in each of the machines formerly made by the different companies 

 have been incorporated in all the machines made by the Company, 

 and the advance in improvements has been broad and rapid. The 

 Company has maintained an experimental department to develop 

 new machines and improvements at an average annual expense of 

 more than $500,000, which none of the old companies could or 

 would sustain, and during its first nine years it expended, in im- 

 proving its six types of binders and mowers more than $600,000. 

 By producing specially for its own uses the lumber, iron and steel 

 for making harvesting machines, the Company has been able to 

 eliminate certain expensive middlemen, to the advantage of the 

 farmer, and thus to increase the efficiency and durability of the 

 machines without a corresponding increase in cost. 



(2) The methods and facilities of distribution have been greatly 

 improved and enlarged; and, by the wider distribution of harvest- 

 ing machines and all repair parts on a commission basis, local dealers 

 are better enabled to carry large stocks of both. These repairs 

 are more accessible to farmers than was formerly the case. A 

 large corps of experts and repair men is maintained whose services 

 are quickly available to the farmers and often without charge. 



(3) Large economies have been made by the development of 

 new lines of farm machinery. The harvester plants merged in 

 1902 were making only binders, reapers, mowers and rakes, and 

 were practically idle several months of the year because the selling 

 season in those lines in the United States is only about four months. 

 By developing new lines an all-year employment has been given 

 to very much larger manufacturing and selling forces than were 

 employed by the old companies. Among the new lines developed 

 are wagons, manure spreaders, gasoline engines, cream-separators. 



(4) Foreign trade in agricultural implements has been devel- 

 oped and expanded from $10,000,000 in 1902 to $42,000,000 in 

 1911 (Figs. 18 and 19). 



(5) Wages and conditions of employees have been improved 

 by the Company. In the first nine years wages were increased 

 twenty-seven per cent. Sanitary and safety appliances have been 

 installed and maintained with the most rigid system of inspection. 



