1937 ANNUAL REPORT of the INTERNATIONAL HARVESTER COMPANY INTERNATIONAL HARVESTER COMPANY

DIRECTORS

HAROLD F. McCORMICK, Chairman

TERM EXPIRES 1938 TERM EXPIRES 1939 TERM EXPIRES 1940 THOMAS E. DONNELLEY JOHN A. CHAPMAN RALPH BUDD MAURICE F. HOLAHAN WILLIAM S. ELLIOTT SYDNEY G. MCALLISTER ARNOLD B. KELLER JAMES R. LEAVELL CYRUS McCORMICK CHAUNCEY McCORMICK GEORGE A. RANNEY HAROLD F. McCORMICK FOWLER McCORMICK JOHN STUART ADDIS E. McKINSTRY JUDSON F. STONE JOHN P. WILSON ALBERT A. SPRAGUE

EXECUTIVE COMMITTEE

ADDIS E. McKINSTRY, Chairman

SYDNEY G. MCALLISTER JOHN P. WILSON HAROLD F. McCORMICK JUDSON F. STONE GEORGE A. RANNEY MAURICE F. HOLAHAN ALBERT A. SPRAGUE

OFFICERS

SYDNEY G. MCALLISTER President MAURICE F. HOLAHAN First Vice-President FOWLER McCORMICK Second Vice-President WILLIAM S. ELLIOTT Vice-President and General Counsel EDWARD A. JOHNSTON Vice-President CHARLES R. MORRISON Vice-President JOHN MORROW, Jr. Vice-President CHARLES R. McDONALD Vice-President GEORGE E. ROSE Vice-President ARNOLD B. KELLER Treasurer SANFORD B. WHITE Secretary CHRISTIAN E. JARCHOW Comptroller

TRANSFER OFFICES GUARANTY TRUST COMPANY OF NEW YORK, New York INTERNATIONAL HARVESTER COMPANY, Chicago

REGISTRARS FOR STOCK THE NEW YORK TRUST COMPANY, New York CONTINENTAL ILLINOIS NATIONAL BANK AND TRUST COMPANY, Chicago

GENERAL OFFICES Harvester Building, 180 North Michigan Avenue, Chicago To the service of the millions of farmers who till their fields, gather their crops and tend their livestock to supply the world with food and clothing, the resources and energies of the International Harvester Company are devoted.

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«*" . ^^jfc, , I! * '^ • :'•'•;• '••'ir... 1937 REPORT TO STOCKHOLDERS OF INTERNATIONAL HARVESTER COMPANY

TO THE STOCKHOLDERS:

The Company's trade during 1937 increased substantially. This was due to increased farm income, the need for replacement of farm implements, the introduction of improved machines, and the increased demand for the new line of motor trucks and for other products designed for industrial uses. A comparison of 1937 and 1936 sales is as follows: Fiscal Year Fiscal Period In the United States: 1937 1936 yj Tractors (including Repair Parts) <2> $ 89,318,000 $ 63,235,000 Farm Implements (including Repair Parts) 75,638,000 53,195,000 Motor Trucks (including Repair Parts) 76,100,000 61,305,000 Steel, Binder Twine, etc 29,198,000 18,417,000 Total United States $270,254,000 $196,152,000

In Foreign Countries: All Products 81,674,000 58,782,000 Grand Total $351,928,000 $254,934,000

(1) 1936 Fiscal Period covers 12 months' sales in the Southern Hemisphere and 11 months' sales in all other places. (2) Tractor sales include engines, and tractor motors converted into stationary and industrial power units.

Profits and Dividends: The percentage of profit to sales proceeds was less in 1937 than in 1936, due to higher wage rates, higher costs of materials, higher taxes, etc.

The net income from operations for the year was $36,343,000. The net income after providing for general inventory reserve and after making other adjustments was $32,493,000, equivalent to $6.31 per share of common stock, after allowing for preferred dividends. Dividends were paid on preferred stock at the regular rate of $1.75 per share quarterly. Dividends on common stock were paid at the rate of 6214? per share quarterly on January 15, April 15, July 15, and October 15, 1937. Also a final dividend of $1.50 per share was paid October 15, 1937, bringing the total common dividend disbursements during 1937 to $4 per share.

Working Capital: The net working capital of the Company at October 31, 1937, amounted to $247,177,000, of which $192,507,000 was held in the United States, $12,171,000 in Canada, and $42,499,000 in other countries. The higher inventory at October 31, 1937, resulted from increased costs and from the greatly increased production during the year together with the necessity of forward buying to maintain continuity of operations and provide for future business as estimated at that time. Inventories have been valued at cost or market whichever is lower. In order to serve its customers promptly and to provide more regular employment, the Company must maintain at all times a large investment in inventories. Therefore, the effect of price fluctuations is more severe in this line of business than in many other lines. The policy of building up the general inventory reserve during periods of price advances has been followed and $7,500,000 has been provided out of 1937 income, bringing the general inventory reserve at the close of the year to $30,000,000, which is 16.1% of the total inventory. Foreign exchange rates at October 31,1937, were lower in certain countries than at October 31, 1936, and as a result the valuations of foreign assets decreased $1,407,000 which amount was charged to the Reserve for Foreign Losses and Exchange Fluctuations, leaving a balance of $13,515,000 for the protection of the foreign business.

Collections and Losses on Receivables: The terms offered by the Company on time payment sales have been conservative and the increase in receivables outstanding at October 31, 1937, as compared with October 31, 1936, was somewhat less proportionately than the increase in sales. Collections were good in 1937. During the past year $2,133,000 of uncollectible receivables was charged against the Reserve for Losses on Receivables. In addition, $610,000 of uncollected receivables in the United States and Canada of 1932 origin remaining on the books at October 31, 1937, was charged off in accordance with the Company's established policy of writing off receiv­ ables more than five years old. There was charged to 1937 earnings and credited to the reserve the sum of $6,546,000 to cover the estimated losses on receivables arising from 1937 business. During the fiscal year $4,929,000 was collected on receivables which had been previously charged off. After crediting these collections to the Reserve for Losses on Receivables, the reserve applicable to receivables of prior years was believed to be in excess of requirements, and accordingly, $3,500,000 was transferred out of this reserve to income.

Capital Additions: Capital expenditures during the fiscal year ended October 31, 1937, amounted to $15,136,000 compared with $10,005,000 for the ten-month period ended October 31, 1936. These expenditures were: for additional facilities for the production of tractors and motor trucks, $6,001,000; for modernization of merchant mills and the completion of blooming mill additions at the steel mills, and expenditures at iron ore and coal mines, $4,694,000; for buildings, machinery and equipment at implement plants, $2,883,000; for additional branch warehouse and service station facilities, $1,558,000. Depreciation has been provided by charges to 1937 operations at regular rates plus an additional amount to cover increased use of machinery and equipment during 1937.

General: During 1937 there was no stoppage or interruption of work at any of the Company's manu­ facturing plants. Two general wage increases were made at all of the Company's U. S. operations. During 1937, the Company had an average of 59,347 employes in the United States as compared with 50,400 during 1936 and 47,800 during 1929. The Company paid extra compensation during the year equal to three weeks' wages to all employes (other than the managerial and supervisory group) in the United States and Canada having three or more years of service, two weeks' wages to those having two years' service, and one week's wages to those having one year's service. Employes in the managerial and super­ visory group, numbering about 2,900, received extra compensation on a variable basis recognizing individual merit. WCTnTTTiilitl'l! I'I 111 I IrlBWllllMMlMlllP I /rador and /-row corn picker gathers the crop from 8 to 9 acres a day From plowing to harvesting, many kinds of row-crops are tended with Farmall equipment.

Farm Implements Historically, the founda­ tion of the business of the International Harvester Company was machines for the farm, built to reduce the cost of the farmer's operations and lighten his burden of toil. The Company makes many different types of machines for the farm, some -'-•*#: of which are shown on this page.

•oring a seed bed with Farmall power. International Harvester mowers are built in many types and sizes.

McCormick-Deering harvester-threshers range in Farmall tractor and McCormick-Deering 2-row potato digger. size from 6 to 16-foot cut. The total amount received in wages, salaries and extra compensation during the fiscal year 1937 by all employes (exclusive of the executive officers) in the United States and abroad was $125,000,000. The total compensation received by the fourteen executive officers of the Company amounted to $719,000. During this same period the preferred stockholders of the Company received $5,717,000 in dividends, and the common stockholders received $16,981,000. The amount of taxes for 1937 was $19,400,000 (federal, state, local, and foreign), and in addition $3,046,000 for old age benefit and unemployment insurance under federal and state social security laws. Production schedules for some time after the end of each fiscal year must be based largely on estimates of spring demand which this year involve more than the usual uncertainties. The Company continued production on a five-day per week schedule until December 15th. Since that date most departments have been reduced to a four-day per week schedule. It was the judgment of the Management that inventories should not be built up to a point where heavy layoffs might be necessary in the future, and that a curtailed schedule was the best method of conserving work for the largest number of employes. If shipping demand warrants, the schedules can be increased later to meet the requirements. The Directors and Officers are pleased to acknowledge the warm loyalty and able cooperation of the entire Harvester organization during the past year.

SYDNEY G. MCALLISTER, President. Approved by the Board of Directors, Chicago, February 17, 1938.

The next annual meeting of stockholders will be held Thursday, May 12,1938, at 51 Newark Street, Hoboken, New Jersey. INTERNATIONAL HARVESTER COMPANY AND AFFILIATED COMPANIES

INCOME AND SURPLUS For the Year ended October 31, 1937

Sales of Farm Implements, Tractors, Motor Trucks, etc., in the United States and Foreign Countries $351,927,767.81

Deduct: Cost of Goods Sold, Selling, Collection, Administrative and Operating Expenses (Net), and Taxes (including Federal Income Taxes) $301,955,414.00 Ore and Coal Depletion 182,419.13 Plant Depreciation 8,980,500.37 ' Provision for Losses on Receivables 6,546,271.27 ' 317,664,604. 77 Net Operating Profit $ 34,263,163.04

Other Income (Less Federal Income Tax pertaining thereto): Interest on Receivables, Time Sales and Investments $ 5,298,023.32 Miscellaneous Earnings (Less $623,895 Miscellaneous Losses) 131,576.93 5,429,600.25 Income from Operations before provision for Surtax on Undistributed Profits... $ 39,692,763.29

Deduct provision for approximate Surtax on Undistributed Profits 3,350,000.00 Net Income from Operations for the Year $ 36,342,763.29 Deduct Other Charges and Credits—Net Charge: Charges: Provision for Inventory Reserve $ 7,500,000.00 Provision for Abandonment of Ore Mine 850,000.00 Credits: $ 8,350,000.00 Reduction of Reserve for Losses on Re­ ceivables (Estimated Excess of Reserve Applicable to Receivables of Prior Years) $3,500,000.00 Recovery of Export Receivables Pre­ viously Written Off 1,000,000.00 4,500,000.00 3,850,000.00

Net Income $ 32,492,763.29

Deduct Cash Dividends: Preferred Stock at $7.00 per share $ 5,717,068.00 Common Stock at $4.00 per share 16,981,018.59 22,698,086.59 Surplus for the Year $ 9,794,676.70 Surplus at October 31, 1936 64,993,424.50 Surplus at October 31, 1937 $ 74,788,101.20 7 INTERNATIONAL HARVESTER COMPANY

CONSOLIDATED BALANCE SHEET

ASSETS

CURRENT ASSETS: Cash $ 34,237,893.46 Marketable Securities, at lower of cost or market 613,512.37

Receivables: Notes of Dealers, Farmers, and Motor Truck Users $117,766,271.32 Accounts Receivable 24,231,603.48 $141,997,874.80 Deduct Reserve for Losses 23,498,149.06 Net Receivables (including employes, $189,064) 118,499,725.74

Inventories: Raw Materials, Work in Process, Finished Products, etc., at lower of cost or market. . . $185,915,690.09 Deduct Inventory Reserve 30,000,000.00 155,915,690.09 $309,266,821.66

PROPERTY: Farm Implement Works and Twine Mills, Motor Truck and Tractor Plants, Branch Houses and Service Stations, Mines, Furnaces, Steel Mills, etc $211,278,397.16 Deduct Reserve for Plant Depreciation 101,414,637.42 109,863,759.74

OTHER ASSETS (including $547,736 investments in Associated Companies) 6,309,693.69

DEFERRED CHARGES 1,633,667.76 $427,073,942.85 AND AFFILIATED COMPANIES

OCTOBER 31, 1937

LIABILITIES

CURRENT LIABILITIES:

Accounts Payable: Current Invoices, Payrolls, Taxes, etc $58,007,280.47 Preferred Stock Dividend, declared October 21, 1937, payable December 1, 1937 1,429,267.00 Common Stock Dividend, declared November 18, 1937, payable January 15, 1938 2,653,296.61 $ 62,089,844.08

DEFERRED CREDITS 4,043,908.17 (Including net gain of $363,447 arising from transactions in the Company's capital stock, principally in prior years.)

RESERVES: Special Maintenance $12,496,618.73 Development and Extension 2,015,657.00 Fire Insurance 6,020,872.48 Foreign Losses and Exchange Fluctuations 13,515,202.33 34,048,350.54

MINORITY INTEREST IN CAPITAL STOCK AND SURPLUS OF AFFILIATED COMPANIES 601,858.86

PREFERRED STOCK: Authorized, 1,000,000 shares, $100 par value. Issued, 823,325 shares, less 6,601 shares in Treasury 81,672,400.00

COMMON STOCK: Authorized, 6,000,000 shares, no par value. Issued, 4,409,185 shares, less 163,448 shares in Treasury 169,829,480.00

EARNED SURPLUS 74,788,101.20 $427,073,942.85 PROPERTY

Balance at October 31, 1936 $200,074,884.11

Deduct: Plant property sold, dismantled, or charged off $2,900,633.16 Depletion of iron ore and coal 182,419.13 Provision for abandonment of ore mine 850,000.00 3,933,052.29 $196,141,831.82 Add Capital Additions during 1937: Farm Implement Works and Twine Mills $2,883,014.38 Motor Truck and Tractor Plants 6,000,874.73 Branch Houses and Service Stations 1,558,564.35 Mines, Furnaces, Steel Mills, etc 4,694,111.88 15,136,565.34 Balance at October 31, 1937, before deducting Reserve for Plant Depreciation $211,278,397.16

RESERVE FOR PLANT DEPRECIATION

The annual deductions from earnings for plant depreciation provide for the impairment and consumption of the capital assets utilized in production and distribution. Such depre­ ciation is based on rates confirmed by experience in this industry.

Balance at October 31, 1936 $ 94,368,594.70

Deduct Depreciation on properties sold and dismantled 1,934,457.65

$ 92,434,137.05 Add provision for 1937: Regular $7,222,970.41 Special, because of increased use of machinery and equipment 1,757,529.96 8,980,500.37 Balance at October 31, 1937 $101,414,637.42

10 RESERVES

Losses on Receivables: This reserve provides for losses which may ultimately be sustained in the collection of notes and accounts receivable. Collection conditions were exceptionally good during 1937.

Balance at October 31, 1936 $18,266,756.74

Deduct: Uncollected receivable balances in the United States and Canada at October 31, 1937, originating during the year 1932, written off in accordance with the policy of charging off receivable balances over five years old $ 610,194.00

Other receivables charged off, etc 2,133,527.98 2,743,721.98 $15,523,034.76 Add: Provision for estimated losses on 1937 sales 6,546,271.27 Recoveries during 1937 on receivables previously written off 4,928,843.03 $26,998,149.06 Deduct amount of reserve in excess of estimated requirements for receiv­ ables of prior years, restored to income 3,500,000.00 Balance at October 31, 1937 $23,498,149.06

Special Maintenance: This reserve provides for relining of blast furnaces, maintenance of docks and harbors, conversion of power systems, and other renewals and replacements.

Balance at October 31, 1936 $12,555,502.59

Deduct relining, renewal and other charges during 1937 436,401.69 $12,119,100.90

Add provision for 1937 377,517.83

Balance at October 31, 1937 $12,496,618.73

11 RESERVES

Development and Extension: Large expenditures are required in engineering research and in the development and improvement of all lines of power farming equipment to increase the efficiency of farm operations and reduce the cost of crop production. Expenditures for 1937 were charged to operating expenses.

Balance at October 31, 1937 $2,015,657.00

Fire Insurance: The Company carries a reasonable portion of its own fire insurance risks at Branch Houses and Motor Truck Sales and Service Stations. Modern methods of fire prevention and protection are rigidly enforced at the Company's properties.

Balance at October 31, 1936 $5,787,724.21

Deduct losses by fire, etc., during 1937 48,449.81 $5,739,274.40

Add credit for 1937 from regular charges to operations 281,598.08

Balance at October 31, 1937 $6,020,872.48

Foreign Losses and Exchange Fluctuations: In view of the widespread foreign interests of this Company and the general uncertainties which affect many of its foreign operations, this reserve is essential for the protection of the business.

Balance at October 31, 1936 $14,922,150.78

Deduct: Adjustment necessary to reduce foreign net current assets at October 31, 1937, to a valuation based on exchange rates at that date $1,137,676.46 Adjustment resulting from revision of exchange rates applicable to certain foreign fixed assets 269,271.99 1,406,948.45

Balance at October 31, 1937 $13,515,202.33

12 HASKINS & SELLS CERTIFIED PUBLIC ACCOUNTANTS HARRIS TRUST BUILDING CHICAGO

International Harvester Company:

We have made an examination of the consolidated balance sheet of International Harvester Company (a New Jersey Corporation) and affiliated companies as of October 31, 1937 and of the related summary of income and surplus for the year ended that date. In connection with the financial statements of the companies operating in the United States and Canada, we made a review of the accounting methods and examined or tested accounting records of the companies and other supporting evidence in a manner and to the extent we considered appropriate in view of the companies' systems of internal accounting control. We also made similar examinations of the accounts of the principal foreign affiliated companies. The physical quantities and condition of the inventories were certified to us by officials of the respective companies. With respect to the foreign affiliated companies not examined by us, we reviewed the companies' annual reports, and the accounts of these companies are included in the accompanying statements on the basis of such reports. The total assets of the foreign affiliated companies not examined by us amount to approximately 10.2% of the consolidated total, and their sales and net income aggregate approximately 8.9% and 8.5%, respectively, of the consolidated totals. The inventories generally are based upon physical inventories taken as of the close of the fiscal year except that the inventories of companies operating in the southern hemisphere are based upon physical inventories taken as of June 30, 1937 and adjusted for the interim transactions to October 31, 1937. The Fort Wayne and Springfield works were not closed for inventory purposes, and the inventories at these two works are based principally upon book records. In the preparation of the balance sheet at October 31, 1937 the foreign net current assets (exclusive of goods of domestic manufacture held abroad, consistently valued on a United States dollar basis) were valued on the basis of the approximate exchange rates quoted at that date, or, with respect to three countries imposing severe exchange restrictions, at approximate realizable rates which were substantially lower than quoted rates. Following the practice adopted in 1936, foreign exchange adjustments of approxi­ mately $1,407,000.00 in connection with the preparation of the consolidated balance sheet as of October 31, 1937 were charged to the reserve for foreign losses and exchange fluctuations rather than against current income. The provision for plant depreciation for the year ended October 31, 1937 has been computed upon the basis of the rates heretofore used except that a special provision of approximately $1,757,000.00 has been made because of increased use of plant facilities. A similar special provision amounting to approximately $1,063,000.00 was made during the ten-month period ended October 31, 1936. 13 The earnings of the affiliated companies operating in the southern hemisphere included in the summary of consolidated income and surplus are for a fiscal year ended June 30, 1937. The net profits of such companies from June 30 to October 31 are classified as deferred credits in the balance sheet as of October 31, 1937; heretofore such deferred profits or losses have been applied against inventories. This change in classi­ fication has the effect of increasing inventories and deferred credits at October 31, 1937 by approximately $1,150,000.00. In our opinion, based upon our examination and upon the annual reports of foreign affiliated companies not examined by us and subject to the foregoing comments relating to foreign exchange adjustments and the special provision for plant depreciation, the accompanying balance sheet and related summary of income and surplus fairly present, in accordance with accepted principles of accounting followed by the companies, their financial condition at October 31, 1937 and the results of their operations for the year ended that date. It is further our opinion that the financial statements have been prepared upon a consistent basis, except for the change in classification set forth in the preceding paragraph.

HASKINS & SELLS

Chicago, February 16, 1938.

14 Httuig and threshing wheat in one operation with International Harvester equipment. Cultivating four rows of cotton in a single operation with Farmall tractor and equipment.

Farm Implements Beginning with the plowing of the soil, continuing with the preparation of the seed bed, plant­ ing of the grain, cultivation of the crop and finally its harvesting— for all these operations Inter­ national Harvester machines are available. On this page International Harvester machines are shown in plowing, planting, cultivating, harvesting and feed grinding operations.

mmall tractors are built in three siz Plowing 10 to 14 acres a day with McCormick- Deering tractor and tractor plow. tits two-row Farmall outfit plants 15 to 20 acres Grinding feed for livestock is one of the many power jobs for the fir day, also distributes fertilizer. McCormick-Deering tractors. International 3 to 4-ton, Model D-50 truck vith tank body, for delivery of Model D-2 chassis with streamlined panel body for long or short petroleum products. delivery routes.

Motor Trucks International Harvester's history as a builder of motor trucks traces back to the old McCormick Harvesting Machine Company. In 1899 engineers of that company drove a gasoline - propelled motor vehicle over the streets of Chicago. In 1906 a quan­ tity-production schedule of International motor trucks was authorized. In 1937 the Company put on the market its new "D" line of stylishly designed and sturdily built motor trucks, which were very well received by the public. Today 237 Company-owned branches and service stations and more than 5,000 International truck dealers service truck owners in the United States and Canada.

The 1 and ly^-ton models are especially Safety is paramount in school bus service. popular for farm service. This one has a International buses are used extensively by convenient pickup body. the country's consolidated schools. Many sizes and types of International trucks are used in the A large variety of bodies and many types of special operating equipment are mining industry and for coal delivery. mounted on International chassis for oilfield service. TracTracTors and hydraulic - controlled 2-wheel self-loading scrapers are saving money for a large number of road builders.

Two of a fleet of TracTracTors equipped with pipe-handling booms at work on a large pipe-line project in Illinois. Diesel TracTracTor hauling 25 tons of equipment 140 miles ' in sub-zero weather to a Canadian gold mine.

Industrial Tractors In addition to its full line of farm tractors, Inter­ national Harvester Company manufactures tractors for industrial uses. For heavy industrial usage it manufactures a line of TracTracTors. These are the powerful giants shown in the pictures on this page in a variety of operations—logging, road build­ ing, pipe-line construction and coal mine operations. The increased demand for the Company's indus­ trial tractors has been a significant factor in the Company's recent business trends. t

Motor grader powered by International 4-cylinder Diesel—one of a large variety TD-35 TracTracTor, one of many International Diesel of International-powered road machines. TracTracTors used in Canadian forests.

Diesels Utilizing the engineering and technical knowledge and experience gained from many years of experimentation with Diesel engines, the Inter­ national Harvester Company today is one of the country's leading Diesel manufacturers. .• 30* £^S# International Harvester Diesel power units are utilized in a variety of industrial and farming operations where maximum power and mini­ mum operating costs are essential. The photographs on this page illustrate some of the uses of International Diesel power—in road build­ ing, road maintenance, log­ ging, oil well drilling and farming operations. Interna­ tional Harvester builds into its Diesels the maximum of precision manufacture.

This TD-40 Diesel TracTracTor with bull- International 6-cylinder Diesel unit powers thisl grader built 800 feet of logging road in 20 hours. oil field spudder rig in Texas.

This International ID-40 Diesel tractor and 12-foot Cultivating a strip 29 feet wide, this McCormick-Deering WD-40 Diesel tractor ani\ grader maintain 25 miles of 20 to 24-foot road per day. three field cultivators summer-fallow 60 or more acres a day. International Harvester Products

MOTOR TRUCKS HAYING MACHINES Standard 4-wheel trucks Mowers Standard 4-wheel trucks with 2-speed axles Rakes 6-wheel trucks with trailing axles Tedders 6-wheel trucks with dual drive Side rakes and tedders Cab-over-engine trucks Loaders, all types 29 models in 85 wheelbases Sweep rakes Stackers FARM TRACTORS Baling presses Standard-tread tractors Alfalfa threshers General-purpose tractors Clover threshers Crawler tractors Orchard tractors 15 models for standard and Diesel fuels GRAIN HARVESTING MACHINES Binders INDUSTRIAL POWER Push binders Wheel tractors Headers Crawler tractors Harvester-threshers 11 models for standard and Diesel fuels Windrow-harvesters Power units Reapers 10 models for standard and Diesel fuels Threshers Rice binders TILLAGE IMPLEMENTS Rice threshers Tractor plows Riding plows Walking plows CORN HARVESTING MACHINES Middlebusters Binders Listers Ensilage cutters Basin listers Ensilage harvesters Disk harrows Ensilage blowers Tractor harrows Pickers Orchard harrows Huskers and shredders Harrow-plows Shelters Spring-tooth harrows Peg-tooth harrows Field cultivators GENERAL EQUIPMENT Rod weeders Engines Rotary hoes Potato diggers Cultivators, row-crop Beet pullers Lister cultivators Stone burr mills Beet and bean cultivators Feed grinders Soil pulverizers Hammer mills Subsoilers Cane mills Land packers Farm wagons and trucks Plow packers Manure spreaders Weeder mulchers Lime spreaders Cotton choppers Fertilizer distributors Crop dusters PLANTING AND SEEDING MACHINES Stalk cutters Corn planters and drills Knife grinders Cotton planters Tractor hitches Potato planters Binder twine Grain drills Broadcast seeders Alfalfa and grass drills DAIRY EQUIPMENT Beet and bean seeders Cream separators Corn listers Milkers Cotton listers Milk coolers 19 Two International power units, each supplying 110 maximum horse­ power, operating one of the many International-powered portable drill rigs used in the oil field.

Various sizes of International power units are used in power sh cranes, and other material-handling equipment.

International power units are saving large sums of money for portable sawmill owners. Shown here is the 6-cylinder Diesel.

International power units have been popular for years for oil well pumping. Power Units In the process of developing power for its farm tractors and motor trucks, International Harvester Company was met with a demand from industry for power units. In response the Company began the manufacture of both gasoline and Diesel type power units for both mobile and stationary use. From a modest beginning, this phase of the Com­ pany's business has had an impressive growth. On This International PD-80 Diesel pumps 1,100 gallons of water a minute from a depth of 200 feet for irrigating 300 acres of Texas wheat and this page International power units are shown supply­ row crops. ing power for a variety of industrial uses—oil well drilling, road construction, sawmill operation, oil field pumping and irrigation. Location of Branch Houses and Transfer Houses, Motor Truck Sales and Service Stations in the United States

Aberdeen, S. D. Duluth, Minn. Mankato, Minn. San Antonio, Texas Akron, Ohio East Hartford, Conn. Mason City, Iowa San Diego, Calif. Albany, N. Y. Eau Claire, Wis. Memphis, Tenn. San Francisco, Calif. Allentown, Pa. El Centro, Calif. Milwaukee, Wis. Savannah, Ga. Altoona, Pa. Elizabeth, N. J. Minneapolis, Minn. Schenectady, N. Y. Amarillo, Texas Elmira, N. Y. Minot, N. D. Scranton, Pa. Atlanta, Ga. El Paso, Texas Moline, 111. Seattle, Wash. Auburn, N. Y. Erie, Pa. Mt. Vernon, N. Y. Shreveport, La. Aurora, 111. Evansville, Ind. Nashville, Tenn. Sioux City, Iowa Baltimore, Md. Fargo, N. D. Newark, N. J. Sioux Falls, S. D. Billings, Mont. Flint, Mich. New Orleans, La. South Bend, Ind. Binghamton, N. Y. Fort Dodge, Iowa New York, N. Y. Spokane, Wash. Birmingham, Ala. Fort Wayne, Ind. Norfolk, Va. Springfield, 111. Oakland, Calif. Bismarck, N. D. Fort Worth, Texas Springfield, Mo. Oklahoma City, Okla. Boston, Mass. Gary, Ind. Springfield, Ohio Omaha, Nebr. Bridgeport, Conn. Grand Forks, N. D. Stamford, Conn. Grand Island, Nebr. Parkersburg, W. Va. Brooklyn, N. Y. Sweetwater, Texas Grand Rapids, Mich. Paterson, N. J. Buffalo, N. Y. Syracuse, N. Y. Great Falls, Mont. Peoria, 111. Burlington, Vt. Tacoma, Wash. Green Bay, Wis. Philadelphia, Pa. Camden, N. J. Terre Haute, Ind. Greensboro, N. C. Pittsburgh, Pa. Cedar Rapids, Iowa Toledo, Ohio Harrisburg, Pa. Portland, Me. Charlotte, N. C. Topeka, Kan. Houston, Texas Portland, Ore. Chattanooga, Tenn. Trenton, N. J. Hutchinson, Kan. Pottsville, Pa. Cheyenne, Wyo. Tulsa, Okla. Indianapolis, Ind. Poughkeepsie, N. Y. Utica, N. Y. Chicago, 111. Jackson, Mich. Providence, R. I. Washington, D. C. Chicago Heights, 111. Jacksonville, Fla. Quincy, 111. Waterloo, Iowa Cincinnati, Ohio Jersey City, N. J. Racine, Wis. Watertown, N. Y. Cleveland, Ohio Kankakee, 111. Reading, Pa. Watertown, S. D. Columbus, Ohio Kansas City, Mo. Richmond, Va. Council Bluffs, Iowa Knoxville, Tenn. Rochester, N. Y. West Haven, Conn. Dallas, Texas Lansing, Mich. Rockford, 111. West Springfield, Mass. Davenport, Iowa Lexington, Ky. Saginaw, Mich. Wichita, Kan. Dayton, Ohio Lincoln, Nebr. St. Cloud, Minn. Wilkes-Barre, Pa. Decatur, 111. Little Rock, Ark. St. Joseph, Mo. Williamsport, Pa. Denver, Colo. Long Island City, N.Y. St. Louis, Mo. Wilmington, Del. Des Moines, Iowa Los Angeles, Calif. St. Paul, Minn. Winona, Minn. Detroit, Mich. Louisville, Ky. Salina, Kan. Worcester, Mass. Dubuque, Iowa Madison, Wis. Salt Lake City, Utah Youngstown, Ohio

New combined farm implement and motor truck branch house, erected during 1937, at Indianapolis, Ind., typical of newer type branch buildings.

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• mm'* mmmm International Model D-30 with bus body in service at Varna, Bulgaria. Breaking ground in Cuba with a TD-40 Diesel TracTracTor and heavy-duty 5-furrow disk plow.

Foreign Markets

The very name of the Inter­ national Harvester Company indicates the importance of international trade in its busi­ ness. Harvester products are marketed in every part of the world. The foundation of this foreign trade was the Com­ pany's line of farm imple­ ments, but in recent years, notably in countries like India, motor trucks and industrial tractors have provided a grow­ ing volume of trade. These scenes show Harvester prod­ ucts the world around.

Plowing in Great Britain with an International This PD-40 Diesel power unit is operating a Harvester T-20 TracTracTor and 4-bottom plow. thresher, straw-baling press, and mechanical stacker in France. Large acreages of wheat, oats, and flax are harvested and threshed in South America with International McCormick-Deering TD-40 Diesel TracTracTor operating three drills at an altitude Harvester equipment. of 3,300 feet in New Zealand.

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. . •, International buses are used in all parts of the world, this one in North Africa.

Location of Principal Foreign Distributing Points CANADA HAWAII HOLLAND AUSTRALIA Brandon, Man. Honolulu Hague Adelaide Calgary, Alta. Haarlem Brisbane Edmonton, Alta. AUSTRIA Rotterdam Hobart, Tas. Fort William, Ont. Vienna Melbourne Hamilton, Ont. GREECE Perth Lethbridge, Alta. BELGIUM Athens Sydney London, Ont. Antwerp Volo Montreal, Que. Brussels Thessaloniki NEW ZEALAND North Battleford, Sask. Auckland BULGARIA HUNGARY Christchurch North Bay, Ont. Budapest Ottawa, Ont. Sofia Dunedin Quebec, Que. Bourgas ITALY Palmerston North Regina, Sask. Genoa Wellington CZECHOSLOVAKIA Saint John, N. B. Grosseto FIJI ISLANDS Bratislava Saskatoon, Sask. Milan Suva Swift Current, Sask. Prague Toronto, Ont. LATVIA NORTH AFRICA Vancouver, B. C. DENMARK Riga Algiers, Algeria Weyburn, Sask. Copenhagen Windau Casablanca, Morocco Winnipeg, Man. NORWAY Cairo, Egypt Yorkton, Sask. ESTONIA Oran, Algeria Tallinn Oslo MEXICO Trondhjem Tunis, Tunisia Chihuahua FINLAND EAST AFRICA Guadalajara PORTUGAL Helsingfors Lisbon Tanga, Tanganyika Matamoros Tammerfors Nairobi, Kenya Mexico D. F. POLAND Zanzibar, Zanzibar Monterrey FRANCE Warsaw SOUTH AFRICA Veracruz Amiens Cape Town, Cape Province Torreon Bordeaux RUMANIA Bucarest Durban, Natal CUBA Bourges East London, Cape Province Croix Havana SPAIN Johannesburg, Transvaal Lille Salisbury, Rhodesia CENTRAL AMERICA Lyon Bilbao Panama City, Panama Marseilles Madrid WEST AFRICA Guatemala, Guatemala Nancy Pamplona Accra, Gold Coast Managua, Nicaragua Nantes San Jose, Costa Rica SWEDEN Abidjan, Ivory Coast Paris Lagos, Nigeria San Salvador, Salvador Malmo Toulouse Norrkoping SOUTH AMERICA Tours BELGIAN CONGO Asuncion, Paraguay SWITZERLAND Leopoldville Bahia Blanca, Argentina GERMANY Zurich Stanleyville Bogota, Colombia Berlin YUGOSLAVIA CHINA Buenos Aires, Argentina Breslau Hongkong Belgrade Caracas, Venezuela Hamburg Shanghai Concepcion, Chile Koenigsberg TURKEY Georgetown, British Guiana Leipzig MANCHUKUO Guayaquil, Ecuador Adana Harbin Munich Istanbul Lima, Peru Neuss Montevideo, Uruguay FRENCH INDO CHINA PALESTINE Saigon La Paz, Bolivia GREAT BRITAIN Jerusalem Porto Alegre, Brazil Edinburgh Jaffa INDIA AND CEYLON Rio de Janeiro, Brazil Glasgow Bombay Rosario, Argentina Liverpool SIAM Calcutta Santa Fe, Argentina London Bangkok Colombo Santiago, Chile Madras Sao Paulo, Brazil IRAN NETH. EAST INDIES Valparaiso, Chile Teheran Batavia, Java STRAITS SETTLEMENTS Singapore WEST INDIES IRAQ PHILIPPINES Ciudad Trujillo, Dom. Rep. Bagdad Cebu JAPAN Kingston, Jamaica Davao Osaka Port-of-Spain, Trinidad IRELAND Iloilo Sapporo SaPort-au-Princen Tnan. Pnwt, nHait Rici n Dublin Manila Tnlrvn Location of Manufacturing Plants and Twine Mills

MANUFACTURING PLANTS

United States McCORMICK WORKS Chicago, 111. MILWAUKEE WORKS Milwaukee, Wis. TRACTOR WORKS Chicago, 111. FARMALL WORKS Rock Island, 111. FORT WAYNE WORKS Fort Wayne, Ind. SPRINGFIELD WORKS Springfield, Ohio WEST PULLMAN WORKS Chicago, 111. INDIANAPOLIS WORKS Indianapolis, Ind. AUBURN WORKS Auburn, N. Y. CANTON WORKS Canton, 111. CHATTANOOGA WORKS Chattanooga, Tenn. HUNTINGTON PARK WORKS Huntington Park, Calif. EAST MOLINE WORKS East Moline, 111. RICHMOND WORKS Richmond, Ind. ROCK FALLS WORKS Rock Falls, 111.

Canada CHATHAM WORKS Chatham, Ontario HAMILTON WORKS Hamilton, Ontario

Europe CROIX WORKS Croix, Prance MONTATAIRE WORKS Montataire, France NEUSS WORKS Neuss, Germany NORRKOPING WORKS Norrkoping, Sweden

TWINE MILLS

United States McCORMICK TWINE MILL Chicago, 111. NEW ORLEANS TWINE MILL New Orleans, La.

Canada HAMILTON TWINE MILL Hamilton, Ontario

Europe CROIX TWINE MILL Croix, France NEUSS TWINE MILL Neuss, Germany NORRKOPING TWINE MILL Norrkoping, Sweden

Location and Description of Raw Material Properties

IRON ORE MINES: Agnew Mine, Hibbing, Minnesota; Hawkins Mine, Nashwauk, Minnesota; Sargent Mine, Keewatin, Minnesota. COAL MINES: Benham, Kentucky: 6,507 acres of coal lands, Harlan County, Kentucky, producing coking coal.

BY-PRODUCT COKE PLANT: South Chicago, Illinois: producing coke and by-products. FURNACES AND STEEL MILLS: South Chicago, Illinois: blast furnaces; open-hearth furnaces; blooming mills; merchant mills. SISAL PLANTATION: Cardenas, Cuba: 4,679 acres of land and decorticating plant in the Province of Matanzas, Cuba, producing sisal fiber. 24 -^mfe: *»i^— n

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spoke-heating machine used at McCormick Works to fasten Workmen are shown placing truck frames on the assembly line at the its into rims of implement wheels. This machine, the only one of Springfield Motor Truck Works. Hind in the world, was perfected by McCormick Works organization.

Manufacturing Eight farm implement plants and I seven automotive works in the United States constitute the backbone of the International Harvester Company's manufacturing operations. Chicago, with three such plants, is at the axis of the Company's manufacturing territc y. The Company has two twine mills in the United States, as well as iron ore mines I in northern Minnesota, coal mines in eastern Kentucky, and a steel mill and blast furnaces in South Chicago. I Abroad, the Company has an imple­ ment works, a truck works and twine mill in Canada, four implement manu­ facturing plants and three twine mills in Europe. The photographs on this page show various manufacturing operations in the Company's plants.

One type of electric flash welder in use at one of the Company's tractor manufacturing plants. The new Industrial Relations Building construdd to house employe affairs at the Fort Wayne Motor Truck Works.

This photograph shows members of the Americanization school classes of McCormick Works at their annual Christmas party.

Industrial Relations Mutually satisfactory employe-em­ ployer relations have been an important concern of the International Harvester Company since its formation. It has always been a Company policy to seek ways and means by which the working conditions of its employes can be im­ proved, and by which they and their families can be given further protection against economic loss resulting from physical disability, old age and death. The photographs on this page illustrate some of the activities mutually sponsored A skilled Harvester worker at his machine. Co­ by the Company and its employes to operation of Harvester men and mana%emm advance the welfare of each. contributes toward efficient workmanship.

The first-aid room at Springfield Works is typical of those provided for Harvester A class of apprentices at the Tractor Works in Chicago. These young men are trained for employes. many types of jobs by competent instructors and receive their training in both classroom study and work in the plant. uJ

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Harvester Building, 180 North Michigan Avenue, Chicago, III., new location of General Offices.