CORPORATE NEWS RELEASES
1947 mo* Sxmmlim Offices t INTERNATIONAL HARVESTER COMPANY ISO Ncrth Michigan AMDM Chicago 1. Illinois fj / ~/4 For Release IJttFI;l*TFLY
Christian E. J&rcno*, vice president ami comptroller. International harvester Co*pany, has been electe; to the com\)my%s boi-trd of directors, Fo*ler dcCor&lck, board chairsan, announced today. Jtrcnow succeeds Sydney C. Ic/llister *ho oiei recently. The n«* bo«rJ »e*ber brings a uistinfulshed Harvester career to his nee position. He first joined fctot or^niration in 1914* In 19*^ he ass appointee general auditor, a iv^ecd to assistant controller in 1927, in otf ointe ( . ptrc ier in 1936. He was rlecteu a vice prt | t of Intern*, tional H&rwiter in 19*.:. Jarchow Is ts vice president and director of the Controller1* Institute of America, He is a member of the bo- r I ot 'Jire tors of the ill—IH St. tc "&n*,V»lloette, Illinois* He ftl»o serves as a saeaber of th« boara of eaucation of hev, Trier Pol flign Scuool, WinnLtici., Illinois* Herle J. Traei-, a Jirecior of tm c « r c< •**, | I . , **.t elect- i i acah-r of the ej» >tive Q w»0Wji •, U>e of the t«oi,H. Subject: Pricing Policy on New 13 Line FROM MOTOR TRUCK DIVISION INTERNATIONAL HARVISTIR COMPANY, 180 North Michigan Avenue, Chicago 1, Illinois
For many years it was the custom in the motor truck industry to
quote prices on the basis of "standard" models with minimum eouinment f
which kept the auoted prices lover. In e.ct.uel -nractice, however, truck
customers reauired many adaptations o* equipment in order to fit a partic
ular model to the use they had in min". Deileered prices, for that
reason, often were very different from the so-called "standard" prices.
Recently, the industry has "b^^un to abandon the old system of
prices basod on models with minimum equipment. This is especially true
of the medium and heavy types of trucks, which are the models in which
the greatest variation in eauipment takes place.
In pricing its new KB line of trucks. International Harvester
has adopted the policy of pricing most models on The basis of the combi
nation of equipment most frequently ordered — "the truck the customer
wants." Thereby the standard KB models ere combinations of engines, ax
les, tires and other items which are desired by the majority of customers.
This policy of pricing as a standard "the truck the customer
wants" naturally has necessitated many price adjustments. The majority
of these adjustments have been upward, although th*»re also have been some
price decreases. By far the greater part of the upward adjustments are
accounted for by listing as standard eouipment the items most commonly
used. Increased production costs account for a nortion of the upward
adjustments, however.
Price adjustments will ran^e from 2 uercent to a little mere
than 10 percent, defending on the model, and will result, over-all, in en
average increase of about 5 percent.
To illustrate the new system of pricing* here are three specific - 2 - examples?
KB-5
The price of the former K-S mor'ol, with 6.50 x 2C tires, was
$l,OS8.50. The corresponding new model, the KB-5, with 6.50 x ?0 tires as standard equipment will sell for £l,lJB, or ar. increase of $^1.50. ,
Most of the former K~5 models, hcwov-e"*, ¥»re sold ^auipped with Budd wheels and two-speed axles. The new K3~^ model, equipped with Budd wheels and two-speed axles, will sell for only about 1 percent more than the former model#
KB-g
The base price of the former K-«? model was I?,500. But the great majority of this model was sold eoulp^ed with the "<6l cubic inch en gine And with 9.00 x ?0 or larger tiros. With this equipment, the old model sold for $2,810. The price of the new KB-g will be 53.15°. includ ing the 3^1 cubic inch engine and 9.00 x 20 tires as standard eouipment.
This is an upward adjustment of $3*^0, but included in the new price are improved front and rear axles, wider base rims, and manv other improve ments.
KBR-H
The base price of the fortpr KR-11 model, a heavv duty truck, was $U,970. sut the great majority of this model sold were equitvoed with the following ltem3, needed for proper operation: Timken axle, $^SO; k*)0 engine and F5U transmission, $lS5, and lr<.00 x 20 tires, $66, So equipped the old model sold for $5ȣ01.
The new K3R-H model will be eouinoed with the Timken axle, the
^50 engine and J^h transmission and the 10.00 x ?0 tires as standard equipment, and will sell for $5,500. This is a reduction of $101 below the price of the old model similarly equipped. Subject: PARTS PROGRAM FROM MOTOR TRUCK DIVISION INTERNATIONAL HARVESTIR COMPANY, 180 North Michigan Avenue, Chicago 1,Illinois
(For release in issues dated January 17 or later)
FORT WAYKE, IND«, January 17 — A demonstration of International Harvester's motor truck parts and accessories merchandising program, employing a coiqplete dealer parts department set-up, was given here today. The demonstration was made by M, D. Dean, International Harvester motor truck parts oa3.ee supervisor, for members of the press here from all parts of the United. States for the first shoving of Harvester's new truck models. The company1l fortieth anniversary as a truck manufacturer was commemorated at the same time (the first International truok HI built in January, 1907). "Our motor truck parts and accessories merchandising program," Dean told his audience, "is directed toward two goals. The first is that of making the right parts and accessories quickly available to truck operators in all sections of the country. The second, of course, is that of providing our dealers with a profitable parts and accessories businees. There are four principal elements in the program -- inventory control, department organization, display, and sales promotion." Dean then explained how an analysis of tho truck population in each dealer's territory can disclose the kinds and amounts of parts and accessories each dealer should carry, and how modern display, sales pro motion and advertising can insure a regular rate of turn-over inventory. - 2 -
To demonstrate the proper parts and accessories department organization, Dean took his audience step-by-step through a complete dealer parts department set-up which included bins and bin arrangement, back-counter display, counter placing and arrangement, and display tables. "Both the back-counter display and the display tables," Dean explained, "are focused to take advantage of eye-appeal and impulse buying, A customer comes into a dealer's place of business to buy one item. He sees the back-counter display and the display tables. In a definite percentage of cases additional items are bought. In other words, sales are made that otherwise would havo been loot." Dean then reviewed the parts depot program on which International Harvester has embarked. This program includes the establishment of com plete parts and accessories stocks at fourteen locations in the United States from which both International's 168 factory-owned truck branches and 5,000 dealers may draw. In consequence of these depots International Harvester branches dealers will be enabled to carry "base" quantities of parts and accessories. When the branch or dealer's base quantity of any iteiu has been reduced to the re-order point additional stock is ordered. Overnight delivery is possible in most cases from the near-by International Harvester parts depot. Slow moving items need not be stocked by dealers, but may be ordered from the depot as needed,
"Parts and accessories sales promotion material," said Dean, "supplied dealers according to a carefully detailed plan, includes material for local newspaper advertisements, material to be mailed with invoices and letters, and special mail promotion pieces. In addition a - 3 -
generous share of International truck national, trad.e and farm paper advertising is devoted to the promotion of parts and accessories sales." At each International Harvester branch a special committee plans parts and accessories mer char.? i sine events that are specifically adapted to their particular territcirf.es. In addition to the cor^pany's wholesale representative, a parte niercha-ndiser from every branch works with dealers on parts and acceosories selling. At the Company's central school for sales personnel in Chicago, all branch personnel is given intensive training in parts and accessories selling and promotion. Special emphasis was placed on the unit reconditioning serv ice supplied by International truck branches. Because of the nearness of these branchos to dealers and fleet owners, this service makes it un- necessary for moot dealers or lar#e operators to do unit reconditioning. Instead, they can get fast service from International branches both on reconditioning of the units they send in, and on exchange units, with factory-standard work by mechanics trained in factory methods. Subject: FITTING THE TRUCK TO THE JOB FIOM MOTOR TRUCK OIVlSiON INTERNATIONAL HARVESTER COMPANY, 180 North Michigan Avtnu*. Chicago 1. Illinois
(FOR BELEASE IN ISSUES DATED JAN. 17 03 LATER)
FORT WAYEE, IND., January 17 — Demonstration of International
Harvester's recently introduced point system for rating the full carrying
capacities of International trucks waa given bore Today by S, Colacuori,
supervisor of 3ales engineering, motor trusk divieion, International
Harvester Company.
The demonstration was part of International Harvester's show
ing for the press of its new "KB" line of trucks, and commemoration of
its fortieth anniversary as a truck manufacturer.
Employing charts and tables, Colacuori showed how International's
point rating system makes possible an accurate calculation of the extra
load any International truck may carry where operating conditions are
better than those on which the basic gross vehicle weight rating has been
calculated.
"Five fatigue factors", said Colacuori, "are employod to
calculate the allowable load. Each factor is rated separately. The
five then arc totaled to furnish the key to the truck's performance
ability under the load., road, grade and other conditions it will en
counter.
"Point rating", Colacuori continued," offers truck operators
several important advantages. It enables them to get the most out of
their trucks in terms of payload carried, because it shows how much - 2 - more load a truck may cariy, where operating conditions warrant, than the load assigned by the basic gross vehicle weight rating. "Second, it enables them to hold operating costs down through observing the load limits allowed by the point system. "And, third," it enables them to get long, trouble-free service from trucks "bj showing plainly Just where overload points come". Subject: THE INTERNATKXIAL TRUCK UNE - SPECIFIC ATIONAL FROM MOTOR TRUCK DIVISION INTERNATIONAL HARVESTER COMPANY, 180 North Michigan Avenue, Chicago 1, Illinois
(For Release in Issues dated Jan. 17 or later)
FORT WAYNE, IND., Jan. 17 — The need for truck specialization to meet the nation's hauling needs waa reviewed here today by V. K. Perkins, manager of sales motor truck division, International Harvester Company, in connection with his company's first showing of its complete new line of trucks. Members of the press from all sections of the United States and Harvester officials and department heads were present for the showing. Today also Harvester commemorated its fortieth anniversary as a motor truck manufacturer. "A truck", Perkins said, "must fit its job in every particular to deliver efficient, economica"1 service. The now International models exhibited here today carry forward the program of truck specialization begun by our company many years ago. "In the new International "KB" line are 15 basic models. These 15 models, together with the 6 models in our "V" or "Western" line, built at our Emeryville, Calif., works, adapt and convert into more than 1,000 different trucks. That range of 21 models, with the adaptations and conversions available, enables us to deliver from our production lines trucks that are engineered units, precisely fitted to their jobs, in contrast with the "cobbled" units so frequently seen doing truck work". - 2 -
Perkins then told cf the 13 different engines which power International's 21 basic models, and pointed out that the piston dis placements of these engines range from 213 to 1,090 cubic inches, and that options include provision for both diesel and butane fuels in the heavier models. Ho then presented the following abstract of specifica tions of the new "KB" line and the recent3y introduced "W" line. Five International "KB" models, in the light-duty range and one medium-duty unit, are produced at the Company's Springfield, Ohio, works. These are the light-duty KB-1, KB-l-M, K3-2, KB-3 and KB-3-M, and the medium duty K3-5. Gross vehicle weight ratings of the light- duty vehicles are as follows: 4,400; 4,600; 5,200; 6,650; 7,000: The g.v.w. rating of the KB-5 is 13,500 to 17,500 pounds, depending upon load, type of service and operating conditions. Wheeloases range from 102 to 195 inches. KB-l-M and KB-3-M, special chassis for all-steel delivery-typo bodies, used for the multlstop distribution of light, bulky loads. Standard bodies of many types and various sizes are oreliable for models KB-1, KB-2, KB-3 and KB-5. Styling of these models presents a decided innovation in the truck field. The sweeping lines of hood, grille and fenders; lavish use of chromium trim; fender-mounted headlights; gracefully curving skirted fenders, which with the grille, form an easily removed, one-piece unit which provides maximum engine accessibility, all contribute to the distinctiveness of these new Internationals. The chrome radiator grille flows out over the fenders in graceful curves. On the sides of the hood the name, International, with the model number of the truck appears - 3 -
newly designed in chrome. At the top and front of the hood is a striking ornament. Below it is the well known International truck Triple Diamond emblem in a new setting. Outstanding among many important mechanical features of these "KB" Internationals is the International Green Diamond engine, which in two sizes powers the six models. These famous 6-cylinder Green Diamond engines, built at Harvester's Indianapolis truck engine works, have aluminum pistons and many other proved features well known to truck oper ators everywhere. These time-tested engines provide more power with im proved performance and remarkable fuel economy. Two-shoe, double-anchor-type, hydraulic brakes provide greatly improved braMnr ability for trucks of the various sizes. On the larger unit, the Model KB-5, the well-known and highly efficient "hi-tork" brake is employed. The outstanding advantages of these brakes include more nearly equalized brako-shoe pressure which results in longer lining and drum life, increased brake efficiency, reduced maintenance costs, simplicity of design, minimum number of parts, and easy adjustment features. All six models produced at Harvester's Springfield, Ohio works have roller-bearing, anti-friction universal Joints; three-point, rubber- cushioned engine mountings; rubber-mounted radiators; tilt-ray, sealed- beam headlights; oil bath air cleaners; and sturdy truck-type clutches and transmissions. Gear shifts on Models KB-1, KB-l-M, KB-2, KB-3, and KB-3-M are on the steering columns. Models KB-3, KB-3-M and KB-5 have full-floating rear axles. Two-speed rear axle is optional for the KB-5# Of outstanding importance is the International all-steel cab, a "driver's" cab with easy riding and comfort qualities. Seat and back - 4 -
cushions are quickly adjustable. One piece windshield and narrow-corner
posts provide maximum visibility.
The nine heavy-duty models in the International KB line, all
produced in the Company's Fort Wayne plant, with their gross vehicle
weight ratings (which of course depend upon the type of operation, loads,
speeds and grades encountered) are:
KB-6 (4-wheel) 14,500-18,000 KB-10 (4-wheel) 22,500-29,250 KB-6-F (6-wheel) 22,000-28,600 KBR-11 (4-wheel) ..... 27,000-35,100 KB-7 (4-wheel)...,,. 16,500-21,500 KHR-ll-F (6-wheel) 37,000-48,100 KB-8 (4-wheel) 20,000-'^6,000 KER-12 (4-whoel) 23,500-35,100' K3-e-F (6-wheel) 27,000-35,100
Models KB-6 and KB-7 are available in four wheelbasoo - 134,
146, 158 and 176-inches; KB-8 in five wheelbases - 137, 149, 161, 179 and
197-inches; KB-10 and KHR-11 in four wheelbases - 149, 161, 179 and 197-
inches. The KER-12, designed especially for high-speed cross-country
truck-tractor service, is available only in 161-inch wheelbaso. The six-
wheel models (all driven on the 4 rear wheels -6x4 type) are also avail
able in a wide variety of wheelbase lengths, as follows: KB-6-F in three
wheelbases - 151, 176 and 194-inches; the KB-8-F in four wheelbases - 161,
179, 197 and 215-inchos; the KB-ll-F in three wheelbases - 161, 197 and
215-inches.
The nine heavy-duty basic models are powered by five sizes of
six-cylinder, valve-in-ho ad, replaceablc-dry-sleove type engines, ranging
in size from a 250-cubic inch engine developing 99.8 horsepower at 3,200
r.p.m. to a 586-cubic inch engine developing 200 horsepower at 2,600 r.p.m.
Torques range from 200.5 to 475 pounds-feet.
The KB-6 is powered by the International Blue Diamond 250 engine;
the KB-6-F and KB-7 by the Blue Diamond 269; the KB-8 by the Red Diamond 361; - 5 -
the KB-S-F and the KB-10 by the Red Diamond 401; the KER-11 and the KBP.-11-F by the Bed Diamond 450; and the KER-12 by the International-. Continental S-6586. Except for the engine that powers the KBR-12, all of these engines, and those employed in Internationals built at Springfield, Ohio are built at the Company's Indianapolis engine works. The Blue and Red Diamond engines, war-proved and famous for their rugged efficiency, are outstanding in performance and economy. These larger, more powerful engines, with their high horsepower-to-weight ratios, make possible faster maintained over-the-highway speeds both on hills and level roads and better performance in off-highway service. A variety of four and five speed transmissions, auxiliary trans missions, bevel-gear, double-reduction and dual-ratio rear axles is pro vided for all heavy-duty International tracks, each of which is engineered for the particular job it is expected to do. Complete specifications for the nine heavy-duty models built at Fort Wayne, together with all the available options, make plain why International can deliver from its production lines trucks that are pre cisely engineered for the work they are to do. Even more authoritative evidence of the way Internationals are fitted to their Jobs is found in the fact that more heavy-duty Internationals have been bought by American commerce and industry during the last 10 years than any other make.
Styling of the nine heavy-duty Fort Wayne built models conforms generally to that of the lighter models but provides a more massive appearance in keeping with the vehicle size. The all-steel, safety cabs provide ample leg room, along with many other comfort and operating efficiency features, including foam rubber seat cushions. - 6 -
The other six models that complete the new International line are the recently introduced "W" or "Western" models, built at International Harvester's Emeryville, Calif., works. Two of these, W-3042-H (4-wheel) and W-4064-H (6-wheel), are highway models with gross vehicle weight ratings of 30,000 and 40,000 pounds respectively. Four are off-highway models, the W-4042-0H (4-wheel), and the W-4564-0H, W-6564-0H and W-9064-0H (6-wheel) "with gross vehicle weight ratings of 40,000, 45,000, 65,000 and 90,000 pounds respectively. All six of these basic "W" models are available with five engine options, three dieoel and two for gasoline or butane fuol. The optional gasoline engines (both may be adapted to butane fuel) have piston displacements of 749 and 1090 cubic inches; develop 254 and 295 horsepower and 585 and 938 pounds-feet of torque respectively. The three optional diesol engines develop 150, 200 and 275 horsepower and 492, 535 and 710 pounds-feet of torque respectively. The largest diesel engine is equipped with a supercharger. A selection of eight heavy-duty transmissions of both four and five speeds and a choice of four 3-speed auxiliary transmissions of either the direct or overdrive typo is available to meet operating requirements. A variety of double-reduction and dual-ratio final drives is available to meet the varying conditions of highway and off-highway service under which the3e super heavy-duty units must operate. Cabs on International's "W" models provide unusual visibility with all controls easy to roach. They are rubber-cushioned against noise, vibration, road shock, and distortion. The extra-wide, 2-piece - 7 - windshield and large windows provide exceptional visibility. The adjustable driver's seat ha3 foam rubber cushions. Standard cab equip ment Includes hot water heater, fresh air ventilating system and de froster, screened cowl top and side ventilators, ventilating windshield wings, dual windshield wipers, dual sun vigors, rear vision mirrow, and dome lamp, Subject: aftTOESOB DEALER'S "BASE OF OPERATIONS"
P90M MOTOR TRUCK USVISION INTERNATIONAL HARVESTER COMPANY, 180 North Michigan Avenue, Chicago 1, Illinois
(For release in issues dated January 17 or later)
FORT WAYNE, IND., Jan. 17 -- An interesting review of Inter national Harvester's uniform building program for its dealers was given hero today in connection with the Company'a first showing of its new model trucks, and the commemoration of it3 fortieth year as a truck manufacturer. Origin of the program, as told to members of the press from all ports of the United States here for the occasion, was with International dealers tliomsolvee. "Dealers," said J. W. Simpson, man ager of Harvester's Soles Operations Reaearch department, "in increasing numbers, asked Harvester what kind of new buildings they should erect. In response to the dealers' requests we instituted a dealer building research project that was carried on for many months. Result of the research is the International Harvester "dealer's base of operations. "This uniform-type dealer oet-up is based, first, on the realization that International Harvester doalero have a specific service to perform, and need efficient housing to adequately render the service expected; and, second, that the more efficient and dramatic the dealer's establishment the better equipped he is to merchandise International trucks, tractors, farm equipment, parts, accessories and servi ce." - 2 -
The basic plan of International Harvester's "base of opera tions" can be adapted and modified to fit any dealer's individual busi ness needs. Also, the completed building can be enlarged at a later date to accommodate exranoior. The floor plan is so designed as to eliminate loss of space and time. None of the dealer's money is tied up in space that cannot be utilized. The various areas ore so located with respect to each other that no unnecessary steps need be taken in the transaction of business. The control area is the center of the floor plan so that all other areas are undor direct observation of the management. Distinctive identification of the dealer's "base of opera tions" with International Harvester products and service is accomplished by the use of certain exterior features. Thus the exterior is painted off-white, except for the pylon, which is painted a special red. The pylon, an integral part of the structure, not only contributes archi tecturally, but provides a highly visible location for the International Harvester emblem and the dealer's name.
In addition to the pylon, the overhanging roof section, ex tending 10 feet from the front wall, provides space for special signs. 'The glassed-in sales area provides admirable visibility for inside floor displays. Subject: History and Development of International Trucks fROM MOTOR TRUCK DIVISION INTERNATIONAL HARVESTER COMPANY, 180 North Michigan Avenue, Chicago 1, Illinois
The pioneering spirit that for well over a century has marked Harvester achievements in the farm equipment industry has also placed the name "International" in a position of leadership in the motor truck indus try. During the last half century, the history of highway transportation has closely paralleled the history of agriculture, and Harvester has made outstanding contributions to the development of both.
In the early 1890*s the advantages of gasoline-powered vehicles to agriculture and commerce were foreseen by engineers in the employ of Har/ester predecessor companies. Thoir efforts and accomplishments, and those of the designers and inventors who followed them, have contributed much to the advancement of highway transportation. The development of powfir-farninfc equipment by Harvester would have been incomplete had the Cbmpany not also built trucks to enable the farmer to get his produce to market fa3tor and more economically.
Many experimental vehicles were built in the late 90»s and in the first few years o:T the 20th century, but it was the fall of 1906 before the Coripany'e management was satisfied that it was on the right track--that its ongineers had dovelcped a transportation unit that would meet the farmer's needs satisfactorily. The first production vehicle was completed in January, 1907, at McCormick Works, in Chicago.
The 1907 IHC auto wagon, forerunner of today's complete line of International trucks, was Just what the name implies, a high-wheeled, low- powered unit designed to carry the farmer, his family and his produce over the rutted, mud roads of the period. Those early International Harvester auto buggies and auto wagons proved well adapted, not only to the farmer's needs but to urban transportation requirements as well. As a result, it became necessary to provide increased production facilities and, in October, 1907, the Company's automotive manufacturing activities were transferred to Akron, Ohio.
Auto buggy and auto wagon engines were of the 4-cycle, 2-cylin- der, horizontal-opposed type having 5-inch bore and 5-inch stroke, rated at 20 horsepower. Until 1912 all engines were air cooled. From then until 1915, whwn the low-wheeled International truck superseded the high- whe«ler, both water and air-cooled engines were supplied. The trans mission had two forward speeds and on© reverse—with, believe it or not, free wheelingl Power was transmitted to the rear wheels by chains through countorshafts. - 2 -
Another International Harvester motor truck "first" is the assembly line method of production. In 1907, the idea of progressive assembly was unknown to Harvester as well as to other automotive manu facturers. The birth of the assembly line at Akron in 1908, and its use in other motor vehicle factories shortly thereafter, marked the beginning of the high-speed, mass-production era.
Just as racing and the early Glidden tours helped to develop the automobile and make it more popular, the truck reliability runs helped to prove the truck a practical, fast and economical means of transporting goods over the highways. Over a period of several years in the first and second decades of the 20th century there were many of these runs but few of the trade names prominent in the truck world of the period are remeia- bered today. The outstanding performance of the International Harvester vehicles, in these contests, contributed greatly to their growing popu larity and increasing sale.
The growing demand for greater load-carrying capacity and more power and spoed was met by Harvester, in 1915, with the introduction of an entirely new type of truck. These low-wheeled, more conventional vehicles, were produced in several sizes in order to serve a far wider range of highway transportation needs. Thoy were powered by 4-cylinder engines and the radiator was located behind th^ engine. Tho one-piece hood which sloped toward the front gave the vohicle an unusually distinc tive appearance. The wooden, artillery-type wheels were equipped with the wider, solid tires required to carry the greater weight of the loaded vehicle. Incident all;'', one of those vehicles, on June 14, 1916, was the first truck to climb famed Pike's Peak*
During World War I, International Harvester, like other truck manufacturers, produced vehicles for the Armed Forces ac well as for civilian users. Truck transportation was forging ahead as a vital and necessary factor in our nation's economy, bringing the farm closer to market and the markets closer together. America had begun to pull it self out of the mud. Federal, state and county governments nj>onsored and financed "better roads" programs; the nation-wide "ship by truck" campaigns encouraged the organization of truck lines, many of which were formed by farmers. During the past three decades the motor truck has been one of the most potent factors in the development of our country.
The production of International heavy-dirty trucks, in fjizes ranging up to 5 tons capacity, was continued at Akron until 1923 when a new, modern factory was built at Fort Wayne, Indiana. In tho mean time, International had entered the so-called "sp^ld truck" field with the introduction, in 1921, of a now type of high-speed, pneumatic-tired vehicle built in the Company's Springfield, Ohio Works. The Model "S", as this i«J ton, 4-cylinder Job was called, was the forerunner of the widely popular International lino of light and medium-duty vehicles.
All over the country there were tens of thousands of individual businessmen and corporations who began to see tho opportunities for earn ing a living, increasing profits and improving their standards of living through the use of motor trucks, in one or more of the thousands of uses to which trucks are put. This expanding employment of the motor truck brought with it a demand and need for readily-available, near-at-hand - 3 -
service facilities. No longer could the vehicle manufacturer feel that his responsibility had ceased when he had designed, built and delivered the best truck he knew how to build. Harvester, realizing that no pro duct is any better than tho service behind it, and having long been con scious of its obligation to the users of its products, had taken the lead in providing nation-wide service to International truck owners. Through the years this service organization has been expanded until today it con sists of 167 Company-owned bronchos and service stations, each with modern servicing facilities and large stocks of replacement parts. This highly efficient branch organization is backed by the well-equipped shops of more than 5,000 International truck dealers. Through the recent war years, when there were few new trucks and it was necessary for America's truck users to keep their old vehicles running, this service organization did an outstanding Job.
The steady growth of truck transportation again brought about the need for greater production facilities which were provided, in 1923, at Fort Wayne, Indiana. This plant, in addition to heavy-duty vehicles, also produces transmissions, axles, and many other parts for light and medium-duty trucks built at other Harvester plants. In the same year the Company begon to build trucks at Chatham, Ontario, for the Canadian trade. Expansion of Springfield and Fort Wayne Works followed as the demand for International trucks grew year by year and, in 1937, a new factory was built at Indianapolis, Indiana, exclusively for the produc tion of motor truck engines.
As engineering research and manufacturing methods have brought about improvements in automotive design and construction, and as the use of trucks has broadened, International has continued to lead in motor truck development. The Harvester Company has consistently followed a policy of incorporating, in current production models, improvements and design features that will provide better performance, longer life and increased operating economy. Styling, important in the motor truck as well as in the passenger car, has also kept pace with the industry. Because the truck owner operates his vehicles over a period of several years, changes in styling are not as necessary in trucks as in auto mobiles. At regular Intervals, aa major design and mechanical improve ments are developed, International introduces new models. Also, as the use and application of trucks expands, new types and sizes are brought into production.
Late in 1940, a complete new line of International trucks was introduced. These models ranged in size from the half-ton pickup to giant six-wheel units capable of handling the largest cargos permitted on our highways.
Before all of these 1941 models were in production the Company had begun, at the request of the government, to design and build several types of all--wheel-drive military vehicles. When the Japs struck Pearl Harbor the Company had an enormous backlog of orders, thousands of which were left unfilled when the production of trucks for civilians was stopped by government order in March, 1942. From that time until late in 1943, when limited production of new trucks for civilians was authorized, the facilities of Harvester'8 truck engineer's and its factories were devoted - 4 -
exclusively to tho building of military trucks, armored half-tracks, gun mounts, shells and other ordnance items for America's Armed Forces. Harvester-built combat vehicles were employed extensively by the Navy, Marine Corps, Coast Guard and Seabees. These vehicles did an outstanding job in every Pacific island invasion and were the first American vehicles ashore in the occupation of Japan.
During the war there was little engineering time, skill or material available for the development of new civilian truck models. Available time, skill and material were needed in the design and pro duction of military equipment. However, many improvements in materials, refinements in design, and new devices that contribute to truck perform ance and stamina, vero developed during the war years for military vehicles, Many of these improvements are of great value and readily adapted to use in civilian vehicles. Many of them are incorporated in tho now Inter national trucks. Others, which are adaptable and which will provide longer truck life, greater economy of operation and bettor performance, will find their way into civilian trucks in the future.
During the later months of tho war, howover, International engineers designed and developed a new line of heavy-duty highway and off-highway models especially to meet the needs of truck operators in those etates in which such equipment can be operated. Early this year the Company began production of these vehicles, known as "W" or "Western" models, in a new plant in Emeryville, California. The addition of these extra heavy and powerful units to the line now enables International to offer truck ueorc unite to meet every demand for highway and off-highway transport equipment.
The difficult war period taught truck operators that there is no substitute for ample power--power enough to do the Job at hand and do it well and economically. Therefore, as International Harvester sees it, the trend will be toward higher compression engines and toward a higher ratio of engine horsepower to gross vehicle weight, resulting in far better performance and longer engine life. Better fuels and refinements in engine design will make possible greater fuel economy in vehicles of all sizes.
In a general way, it is probably safe to predict that the trucks of the future will also resemble present types in chassis layout and in general appearance. In the heavier models there may be a trend toward the elimination of the passenger-car type of styling. Light delivery vehicles, which are constantly in the public eye, probably will continue to be "dressed up" and many new vocationally-designed, special- purpose bodies will enter the picture. larger trucks, through the gener ous use of aluminum and other light materials, probably will be lighter but stronger and more durable, thus increasing payload and decreasing operating costs. Better load distribution will be attained by improved relation of axles to loading space, providing increased payload, better balance, conserving rubber and avoiding excessive maintenance expense.
Automatic transmissions, fluid drives and torque converters will be utilized in future basic dosignc but these features will come slowly, Graater cab and riding comfort for the driver will not be overlooked in the truck of the future. The truck of the future will be marketed on a nx>re nearly functional basis than ever before. - 5 -
There are almost 5,000,000 trucks in use in the United States today. Trucks are vital in America's economy. Few manufacturers or producers of commodities are without neod of motor transport somewhere along the line. Competition within industry whether it be dairy, baking, clothing or durable goods, encourages the use of trucks as a means of providing the public with better service or products at lower cost.
There are more than 54,000 communities in this country with a total population of nearly 7,000,000 persons that rely solely on the motor truck for transportation of life's necessities. These "motor transport" communities arose from two sources. First, many of them are localities that have been built up and developed by the motor vehicle; second, they are communities formerly served exclusively, though in frequently, by other transportation facilities.
American agriculture with more than 1,600,000 trucks is the biggest user of all. More than 1,000,000 of these, according to 1940 census figures, are in use on farms. It is in tho speeding up and increased efficiency of hauling, on the farm itself and between the farm and market, that the farmer has found the truck not only a very profitable investment but a much moro economical and speedy moans of transporting his commodities. Motor trucks servo every branch of agriculture and tho farmor's children ride to school in 85,000 school buses.
Today, International Harvester's position in the motor truck field is outstanding. For 16 years International has produced more heavy-duty trucks for commercial service than any other manufacturer. In tho light and medium-duty fields, International ranks among the big four. In its rolo of complete service to industry and agriculture Harvester will continue to provide equipment that will assure efficient and economical transportation.
Motor Truck Division
The Motor Truck Division of the international Harvester Company is an autonomous division headed by a general manager who reports to the president of the Company. The division is divided into six departments: engineering, manufacturing, supply and inventory, sales and accounting, and Industrial Relations Division headquarters are in the Harvester Build ing 180 North Michigan Ave., Chicago.
W. C. Schumacher, General Manager W. K. Perkins, Manager of Sales W, D. Reese, Manager of Engineering V. A. Guebord, Manager of Manufacturing D, A. Conroy, Manager of Supply and Inventory G. D. Wade, Comptroller C. C. Stewart, Manager of Industrial Relations, Works E. B. Waltzek, Jr., Manager of Industrial Relations, Sales - 6 -
Engineering Dspartaant
All International truck designing, research and other engin eering activities are carried on by the Company's motor truck division engineering department headquartered at Fort Wayne Works. In addition to its design and laboratory facilities this department also has a modern proving ground on the outskirts of Fort Wayne. In addition to proving ground tests the department carries on continuous highway test ing programs in various sections of the United States.
Fort Wayne Works
The Fort Wayne (Indiana) plant has 1,616, 490 square feet of floor space with ample adjoining acreage for expansion as new production facilities may be required. Its facilities include a complete forge shop which produces axle, gear, crankshaft, and other types of forgings used in International trucks as well as forgings for other Harvester divisions. The machine shops, heat-treating plant, unit assembly, cab manufacturing and othor departments are mcdemly equipped. Heavy-duty International trucks are produced in this Works which is also the ware housing and distribution center for all motor truck service parts and accessories.
Springfield Works
The Company's Springfield (Ohio) plant has 1,457,170 square feet of floor space. Hero, International light and medium duty trucks are produced on three parallel assembly lines. Basically, this is an assem bly plant but its facilities include a modern press shop for making sheet-metal stampings for truck cabs, bodies, hoods, fenders, and other parts, as well as complete cab and body manufacturing facilities.
Indianapolis Works
Tho Indianapolis (Indiana) plant where engines are produced for all International trucks has a total floor space of 718,966 square feet, approximately 260,000 square feet of which is in the foundry unit.
Emeryville Works
The Emeryville (California) plant is Harvester's newest truck factory. Supar heavy-duty highway and off-highway models ore produced in this plant which has a floor area of 90,000 square feet. Subject: HISTORICAL FROM MOTOR TRUCK DIVISION INTERNATIONAL HARVESTER COMPANY, 180 North Michigan Avenue, Chicago 1, Illinois
(FOR RELEASE IN ISSUES DATED JANUARY 17 OR LATER)
FORT WAYNE, IND., January 17 -- The fortieth anniversary of
International Harvester Company's entry into truck manufacturing was
commemorated here today, and a complete series of new International truck
models was exhibited for the first time.
Fort Wayne is the site of one of International Harvester's
three truck producing plants. Others are at Springfield, Ohio and Emeryville,
California. The Company's truck engine plant is located at Indianapolis,
Indiana.
Present for the commemoration were representatives of the press
from all parts of the United States, a large group of company officials
and department heads, and local civic and industrial leaders.
A feature of the day was an historical review of International
Harvester's progress as a truck manufacturer, from the company's earliest
experiments with combustion engines until the present, whon mere than
600,000 International trucks are serving the nation.
The review disclosed that engineers of Harvester's predecessor
companies began experiments with gasoline engines to power farm machinery
in the early 1990's. Several of these early internal combustion power
plants were installed in experimental horseless carriages developed by
the same engineers.
By 1898 one of these young engineers had built a gasoline
powered vehicle which he operated successfully on Chicago's streets for
seme two years. - 2 -
It was not until late in 1905, however, that International
Harvester's management approved production of its first automotive vehicle.
So, in January, 1907 — Just 40 years ago — the manufacture cf the
International auto wagon, forerunner of today's complete line of International
trucks, began at the Company*s McCormick works in Chicago.
The first International was a high-wheeled, solid-tired vehicle,
designed to take the farmer, his family and his produce safely and
dependably over the muddy, rutted roads of the time. It was powered by
a 2-cylinder, horizontal opposed, air-cooled engine with powor transmitted to tho roar wheels by chains through a counterahaft. Lator both water and
air-cooled types were produced. The tronsmisoien had 2 speeds forward and
one reverse — with free wheeling. It sold so successfully, not only to
farmers but to urban users as well, that greater facilities soon were needed for its manufacture. So in October of 1907, International Harvester moved its auto wagon manufacturing department to Akron, Ohio and there
introduced one of the first oontlnuous assombly lines for automotive production,
In the early motor truck reliability runs Interna-cicnala were leaders. Few of the names prominent in tho truck world in 1910 and thereabout are remembered today.
Some of the highlights in International truck history since 1911 have been:
The introductirui in 1915 of a low-wheeled truck with increased power and speed, and added load capacity, One of these Internationals was the first truck to climb Pike's Peak (June 14, 1916).
The production of motor trucks for the armed forces during
World War I. - 3 -
The extension of the International line by 1919 to include
models up to 5-tons capacity.
The establishment in 1921 of a truck plant at Springfield, Ohio
for the production of light-duty vehicles.
The introduction in 1921 of a pneumatic tired "speed truck".
The construction in 1923 of a modern truck plant at Fort Wayne
for production of medium and heavy-duty trucks, and transmissions and
axles for the light models built at Springfield, as well as engines and
other units for tho medium and heavy-duty units built at Fort Wayne. The
Fort Wayne plant, also the headquarters of the Company's m*tor truck
engineering department and center cf truck parts distribution, has been
greatly enlarged during the past two decades.
The establishment in 1923 of a truck manufacturing plant at
Chatham, Ontario, for the production of trucks for Canadian users. This
Works is now being greatly expanded.
In 1927, an International 3/4-ton truck was the first four-wheeled motor vehicle to cross the Sahara Desert.
Tho construction in 1929 of a modern motor truck proving ground at Fort Wayne.
The construction in 1937 of a truck engine plant, including foundry, at Indianapolis, Indiana, with a daily capacity of more than
2,f00 engines.
The introduction of the policy of incorporating new features and improvements into current production as rapidly as they are developed and proved. Harvester does not bring out yearly models.
The development of the only complete truck line offered by a single manufacturer, - 4 -
The development of a network of branches that comprises the nation'8 largest company-owned truck sales and service organization; and the development of a dealer establishment that now numbers more than 5,000 dealers.
The introduction in 1940 of the International !fK" Line, which pioneered a long list of innovations in truck transport.
War service during World War II, when thousands ->f International trucks and half-track vehicles served the Army, Navy and Marine Corps, and hundreds of thousands of International transported vitally needed supplies on the home front.
Tho design and development during the last months of the war of a line of heavy-duty highway and off-highway "W" models ranging from 30,000 to 90,000 gross vehicle weight rating to be built on the west coast.
Start of production at the Company's new Emeryville, California works early in 1946.
Introduction of the now International "KB" line in January, 1947.
******
During 40 years cf truck manufacture, International Harvester ha3 built 1,298,576 trucks, including approximately 100,COO heavy-duty military combat vehicles, in its United States factories. Of the vehicles produced for civilian use, approximately 13 percent have been sold in foreign countries other than Canada. At tho present time more than 600,000
Internationals are still in commercial service in the United States alone. Subject: SBtVIGS TRAINING FROM MOTOR TRUCK DIVISION INTERNATIONAL HARVESTER COMPANY, 180 North Michigan Avenue, Chicago 1, Illinois
(FOR RELEASE IN ISISUSS DATED JANTJA5Y 17 OR LATER)
FORT WAYNE, IND., January 17 — The special training in servicing International motor trucks given more than 4,000 dealer and. fleet mechanics last year was reviewed here today by D. B. Erminger, service section supervisor, motor truck division, International Harvester Company, The review was a feature of tho first showing of International Harvester's new line of motor trucks and the commemoration of the com pany's fortieth year as a truck manufacturer. Members of the press from all part3 of the United States came to Fort Wayne for the occasion, as did company officials and department heads. International motor truck service training is given, Erminger explained, in the company's Triple Diamond service schools. Each month one of these schools is conducted in six different sections of the United States. Instructors are experienced Company men who have been intensively trained both in their subjects and in teaching methods. Students are shop foremen and other key service personnel from Inter national dealers and operators of International fleets. "After orientation," Erminger said," the students are divided into seven groups. Each group then receives careful instruction in the following subjects: "Engine rebuilding; fuel and cooling systems; steering geometry; wheel balancing and brakes; rear axles and propeller shafts; - 2 -
tuning and electrical equipment; shop management; service, parts and accessories merchandising, "The students," continued EiLinger," take over the demonstra tions to learn by doing as well as by cx-nrrple. Instruction covers not only current model International trucks but also older models the students will be called upon to service. A forum is held after all students have attended all classes so that questions may be answered and doubtful points cleared. Examinations follow," Flexibility and follow-up aro two of the moot important features of the program, according to Erminger, who cited the school recently hold at International Harvester's Emeryville, California, Works as an example of flexibility. Tills school covered service procedures for the recently introduced International "Western" models which are built at Emeryville. "International "W" models are giant trucks," Erminger said, "that differ significantly from other International models. But at the Emeryville school the basic training procedures were followed almost to the letter, though the service training was entirely on "W" models." Follow-up of the Triple Diamond training schools, is both regular and intensive, with shop meetings conducted by International's district service representatives, bulletins covering new and improved service methods, and charts and sound-slide films to illustrate tech niques, methods and equipment. Subject: GENERAL PROM MOTOR TRUCK DIVISION *— INTERNATIONAL HARVESTER COMPANY, 180 North Mlchlgon Avenue, Chicago 1, Illinois
(FOR HELEASE IN ISSUES DATED JANUARY 17 OR LATER)
FORT WAYNE, HID., January 17 — Before several hundred mem bers of the press from all parts of the United States and officials and department heads of the company, International Harvester today exhibited for the fir3t time its new line of motor tracks. Included in the exhibit were Harvester's recently introduced "Western" models. Members of the press, visiting Fort Wayne for the occasion, viewed the new models and a special presentation of the Company's 40 year's of progress in the truck industry in a large exhibit hall where they were welcomed by W. C. Schumacher, general manager of Harvester's motor truck division. Harvester's manager of motor truck sales, W. K, Perkins, then told the audience that International Harvester was introducing new models now for two reasons: One, to provide operators with improved truck performance; the other, to provide operators with better looking trucks. He also stressed the fact that even though new models were being introduced, production has not been slowed down. "The old models," said Perkins, "rolled off the line right ahead of the new ones without any assembly line stoppage. Trucks are too badly needed to stop produc tion for a single minute. "Today," continued Perkins, "has a special meaning for International Harvester, quite aside from the fact that today we will • t - exhibit our new models. Today is Harvester's fortieth anniversary as a truck manufacturer. Yes, forty years ago Harvester began production of the then impressive schedule of cne hundred International auto wagons, high-wheeled, low-powered vehicles designed, as we then said, 'to pull the farmer out of the mud'. So before showing you our new 1947 trucks, we are going to show you four old Internationals, a 1907 auto wagon, and 1917, 1927, end 1937 models." In the order named the four old Internationals were exhibited,
"We ask you", Perkins continued, "to contrast these old Internationals with the new models you are about to see. The contrast will be marked, I promise you. But keep in mind that as antique-looking as the 1907 International Harvester auto wagon now is, it was glamor wagon in its day, and served American farmers and business men both profitably and well. And before the new "KB" models ore driven out, I'd like to tell you briefly how they were developed. "Throughout our new truck line, in addition to the new styling, are 95 new features or mechanical improvements. All of these are contri butions to improved performance, longer life and greater economy. But International models are not matters of the calendar. New features and improvements are under constant study and constant test. As quickly as a new feature or improvement proves its worth, it is incorporated into current production. That's the way these new Internationals were created. New features and improvements were steadily incorporated into current production until the features and improvements themselves, with some new styling, created the new models.
"These new models were put on our assembly lines without any interruptions'in production, for which our engineering and manufacturing - 3 - departments most certainly deserve a word, of praise. The fact is, our manufacturing department broke all previous production records during many of the weeks Just preceding the day on which production of the new models started." Mr. Perkina also called attention to tho fact that there are 21 basic models in tho International track line — 15 "KB" models and 6 "W" or "Western" models. The gross vehicle weight ratings of these 21 models range from 4,400 to 90,000 pounds. "Notice that I said 'basic models'," said Perkins, "I said 'basic models' because Job adaptations and conversions of the 21 models produce more than 1,000 different transport units, all of which might bo called models; it may be truthfully said that in tho International line today there are more than 1,000 different vehicles". The first of the new Internationals shown was the smallest unit in the line, the model KB-1 with a pickup body. In order of size then came the others with the last a W-3042-H, one of International's six recently introduced "W" models. Mr. Perkins then pointed out that all of International Harvester's truck plants were represented by the display. That the models KB-1 through KB-5 had been built at International's Springfield, Ohio works; the models KB-6 through KBR-12 at the company's Fort Wayne works; the "W" models at the Company's Emeryville, California works; and that the engines except for a few of the heavier models at the Company's Indianapolis engine works. The first comments of press representatives and other guests about the new Interiiational line, were about the styling of tho light-duty - 4 -
models. From the front, these models display almost passenger car elegance. Extensions of the chrome red!ator grille flow out over the fenders in graceful curres. Above the grille is the well-known Inter national truck Triple Diamond eafelen in a newly-styled setting. At the top and front of the hood is a striking ornament. At the sides of the hood the name, International, appears newly designed in chrome, with the model number of the vehicle beneath. Styling of the heavy-duty models, while less elaborate than that of the lighter units, shows the same modern trend. Supplementary exhibits, comprehensive visualizations, demon strated International Harvester's procedures and methods for adapting International's basic models into trucks that are expertly engineered for the Jobs they are to do; the company's service training programs for dealers' and operators' mechanics; its parts and accessories mer chandising and packaging programs; and its dealer building or "base of operations" program. A brief address by P, V, Moulder, executive vice-president of Harvester was a feature of the luncheon program. Following luncheon, tho party was conducted through Fort Wayne worka. The plant tour com pleted, tho guests were taken to International1 s truck proving grounds where the new models were put throu$i their paces on the "twist course", the 'feelgian blocks", and similar severe tests. A dinner, with an address by J. L. McCaffrey, president of the International Harvester Company, as the high spot, concluded the day's program. ntoM executive Offices <^ r 6Vl ^ r^ UfTEHKAnONAINATIONA!L. HARVESTEHABVPSTCKR COM3?Alr.flMPMW* Y ' \ 180 North Michigan Avenue Chicago 1. Illinois * . I LLJUi. + For Release to Morning Newspapers of MONDAY. JANUARY 27. 1947
CHICAGO, JAN. 27—Total sales of International Harvester Company for 1946, amounting to $482,328,000, were the largest peacetime sales in the company's history,
John L. McCaffrey, president, reported today in the company's 1946 annual report.
This compares with a 1945 sales volume of 3622,011,000, which included almost
$300,000,000 of war products. The previous peacetime record sales year was 1941, with sales of i364,635,OGO.
Commenting on the sales volume, McCaffrey said: "Materials shortages hampered operations throughout the year. Strikes affected a group of our own plants as well as the plants of many suppliers. Despite these handicaps, large production was achieved, and at the close of the 1946 fiscal year tho rate of production on many products was at an all-time high."
The 1946 net income was less than 1945. It represented a return of 4.6 percent on total capital invested, compared with a return of 5.2 percent in 1945.
In dollars, 1946 net income was 022,326,000 which compares with 324,477,000 in 1945.
The 1946 net income includes dividends from subsidiary companies operating in other countries amounting to $7,759,000 which compares with dividends from similar sources of $2,473,000 in 1945. Of the 322,326,000 1946 net income, ^18,453,000 was paid out to the approximately 40,000 stockholders in dividends.
Net income in 1946 was equal to 03.91 per share of common stock compared vrith ^4.42 in 1945. Dividends were at the regular rate of ^7.00 per share on pre ferred stock and ^3.00 per 3harc on common stock, which was the same as in 1945.
Total dividend payments represented a return to stockholders of 3.8 percent on capital invested which compared with 3.9 percent in 1945.
The remainder of 1946 net income, $3,873,000, representing a return of 0.8 percent on invested capital, was retained for use in the easiness. - 2 -
A comparison of 1946 and 1945 sales may be had from the following tablei Sales of regular products Per Cent Per Cent in the United States: 1946 of Total ]£& of Total Motor trucks, service and service parts s1173,038,000 35.9$ "87,539,000 U.1% Farm implements and service parts.... 83,682,000 17.3 84,924,000 13.7 Farm tractors and service parts 79,354,000 16,5 73,294,000 11.8 Industrial equipment and service ports 41,640,000 8.6 34,950,000 5.6 Steel, pig iron, and coke by-products 26,993,000 5.6 12,828,000 2.1 Binder and baler twine 8,529,000 1.8 8,874,000 1,4 Refrigeration equipment 1,182,000 .2 1,519,000 .2 Miscellaneous , 6.191.000 1.3. seatZaflOP .2 Total IttfatflgaMB fUt 32Q?JS.SPgQ 49J£ Sales to subsidiary companies: To I.K. Company of Canada, Limited... § 13,212,000 2.7* I 11,245,000 1.8$ To I.H. Export Company (for export).. 48.507.000 _1QJ__ ^J^IQ^OOO , , 6,6 „ Total... >•> 61,719,000 12.8S j $2J49.QQO ^ Jaat Total...... 1482^28^00^ OQO^ tSSLSLSOl 57. # Sales of war products other than those included in sales to subsidiary companies above (includes special war products and regular products sold for war purposes)...*. ,. — — 3264r?07.000 42Jg
Total., 0482.328• 000 100.0% ^622.011^000 ip0„0ft
Sales of regular products in the United States in 1946 accounted for 87.2 percent of total sales, as compared with 49.1 percent of total sales in 1945. "This reflects both tho increase in sales of regular products and the virtual elimination of sales of war products," McCaffrey said, Eecause sales of rar products in 1946 were negligible and since the government continues to be a regular customer, all sales to the government in 1946 were included in the sales of regular products. - 3 -
Sales of exported goods were 8.4 percent of total sales in 1945 and 12.8 percent of total sales in 1946, McCaffrey said. This is in line with the general resumption of international trade, much of which was carried on under governmental directives. The company's 1946 ratio of foreign sales to total sales est slightly higher than for the two immediate pre-war years of 1940 and 1941; it was about the samo as 1939; and was substantially less than for 1938. During the fiscal year the prices of most International Harvester products were under OPA control. The company continued to make every offort to give good service to the users of its products through the production of a large volume of service parts. J'cCnffrey reported that sales of service parts "represented the largest volume of parts sold in c peacetime year." Seles of service parts totaled ?vll2,472,000 in 1946 n.iri compare with $132,634,000 in 1945. The decline in service parts sales was due to the disappearance of government demand for military parts. Taxes onyable to federal, state, and local governments for 1946 amounted to 317,413,000 Si compared with "^24,516,000 for 1945. Average total employment of the company for tha fiscal year 1946 was 74,237. an increase of 4,876 over the 1945 figure. The increase was caused mainly by employment of additional people at new manufacturing plants. In 1946, wage rates were raised substantially. Average straight-time hourly earnings in factories at the end of 1946 were the highest in company history—representing an increase of 59 » percent over the average of January, 1941. Total compensation of employes, excluding executive officers, was $194,819,000 in 1946 compared with "215,721,000 in 1945. Reduction in 1946 total compensation reflects the net effect of decreases because of strikes and because of the general return of operations to the normal work week of forty hours; and increases because of greater employment and higher wage rates. - 4 -
Numerous demands of unspecified amounts were made upon the company late in
1946 by various labor unions. Some preliminary collective bargaining has taken
place. Stating that the outlook was uncertain, McCaffrey expressed the hope that
these questions could be disposed of without interruption to production in 1947.
Claims for retroactive "portal-to-portal" pay have been filed against the
company in federal courts by certain officers of seven labor unions acting as agents
and representatives of a large number of employes. Three of these suit3 asked spe
cific amounts aggregating $131,000,000. No specific amounts were asked in the other
four actions. McCaffrey announced the company's intention of contesting these suits and any similar actions brought against it.
The company's program of physical expansion progressed as rapidly as
possible during the fiscal year 1946, in view of the many difficulties in obtaining
building materials, equipment, anc machine tools.
The program of expansion and improvement calls for the investment of a
substantial amount of capital in fixed assets. Thus far $134,000,000 has been
appropriated for tho program, of which about #51,000,000 has been expended. "The
expected increase in business resulting from the expansion program," McCaffrey said,
"raises tho question of working capital requirements."
Prior to the war the company carried large amounts of receivables originat
ing from sales by its dealers to users. The company is now encouraging agreements
between dealers and their banks for local financing. Plans for outside financing of
other types of receivables are being explored. Improved inventory management is
expected to reduce the ratio of inventory to sales materially from what was necessary
in former years. These measures, in addition to the existing cash resources of the
company, are expected to meet a substantial part of the financial requirements of
the expansion program.
Meanwhile, in order to be protected against any contingency, the company
has established credit lines with a large number of its regular depository banks for
the year 1947. These credit lines aggregate 5100,000,000. They will be available - 5 -
to meet any need that may develop pending the time when the company can see more
clearly what its longer term financial requirements may be. fe In commenting on the outlook for 1947, McCaffrey said that the trend in
the company's first 1947 fiscal quarter, not complete when the report, was made,
indicated a substantial increase in sales for the first quarter of 1947 as compared
with the corresponding period a year ago.
"The ultimate results of 1947 operations," McCaffrey reported, "will
depend largely on the availability of materials and the course of labor relations.
Our facilities will make possible greatly increased output if materials are steadily
available to sustain production and if work stoppages can be avoided."
Moderate price increases which the company instituted in 1946 were based
on existing costs and did not include any elomont of offsetting future increases in a costs. For that reason, McCaffrey said, "future wage increases must inevitably
raise the question of further price increases," He expressed his concern in the
matter of prices by pointing out that while demand for International Harvester prod
ucts was expected to continue very high during 1947, the management believes that
further prico increases would bring the company near the danger point of customer
buying resistance,
In the war years International Harvester charged off investments in sub
sidiaries operating in foreign countries amounting to 310,586,000. A policy of
reinstating these investments as rapidly as reliable information warrants, has
resulted in reinstatement of "$5,831,000 of the sum charged off. Subsidiary com
panies operating abroad experienced generally satisfactory results in 1946 consider
ing the difficult conditions they had to face. nioM €*4*dtm &ffiu* INTER NATIONAL HARVESTER COMPANY k 180 North Michigan Armavm Chicago 1. IlttuoU
For Release RHMMM '"
Xhere are ea^ugh f^raere oa aro&rieey, w«ntla& %-; buy fsjm aeenlaerjra fee oDutt iatsraetlnaal aareeeter Goar>*aj to eoaa a fara eqalaaeat sslas of 11*4 la tr.e heart of **ni\a%t»n Island, the nation** *e«t ar&aftlted aonauAlty. Ihet w*»* the aaamaace*eat, lssaad tod** la Chi ergo, a? *. *. Ms^s. else -trepidant of antral lln* sales f<*r the Internationa^ iisre«*ter Company. There are thoa*sad& of «av Xors iMistaeefi ea4 >rafaetls ehlaerj nsle» orjjaelxstioa to ftaaaett n to tares ti eae fei* etty farasrs. fcalieerlse of asehiae* will as n*4e, es heretofore, through regular aoaoaajr dealer* Is fensing arses. **e oeileen th*t Matt t« the flrat star* of Its sind to fes takes ay *»y fara eoal^.at asiiaf»eturar.* *r, >*ale eald. 'teas taatjgh there Isn't a fara on Kanhatt A lsir*ad, there »r* tloaseada of fsraers t&ers, sac so we hats Resided to take oar aa^ae fcellitiSt to the*. •Inter^Ational Hsrwester h*# noted * fcjvwln* trsn*i la recent jrajire towerd t;*e ow*.*r*hi?* eac ooer»tJon of fans*, aaay of casii. sareages, aesr the i*rg* urban eenter*. ***••• f*me era owr.ed and operated, for Mi aott nsrt. fc* aao ea- w aen who war* la th eJt^e*. hut w:.o, for warloaa r#»soit§ of -vreoaei Inclination, sre •ttreetad ay the ntr*i life. lty f*r*ers' •MM fcetre a<*e into e*i tsa^e la aaaj of the larger cities. •The -itj Fsraar,# Ciuo of *ew lor* iMg Is on* of tht sost act lee ead influential erejenlsntl^n* of tMa sled la the e uiitrj. *aeber*d sao** Its m*mk*r9 era aaitfcere* oaelaasaeaa, i>rofessloaa. aaa sad others, who esra - z - their livelihood In Saw lark City, tent who lies elsae to the anil as naeh of their tlaa ss the* can. far Hew lor* fare* equl^aest seist office will serve sash groups and Individuals, c* will offer eouaael end sdwlse on fara aeeheniaation to aueb feraers.- International tiarvwstsr'a New lor* City fsra aoulo&eat «ales ofrlee. whieh will begin operatloas on &9hrM&rj X, will be losstsd ;a the Chaain ittlldiag on Lexlnftan Avenue and 42nd Street, and vlll he under the aaaagefitoAt of H. V. Burton. FBOM Executive Offices INTERNATIONAL HARVESTER COMPANY ISO North Michigan A..nu. Chicago 1, IUlnoU
tmJUmm WKKHKUM
Apoolntaant of J. *. Ceer>er, who ha a lived la herrlehurg f&r sore than 30 years and who has ©sen associated for aany years with International Harvester Coaoeny's local f^ra eoalpr&eat salsa branch, to s now and laoortaat executive nosition In saltlaere vac annountea la CniAago today fey *4ar«ar use, viae president of supply sad inventory, for the Harvests? Cosspaay. Reaper will head tha eoaoany's aew wholesale parts distribution center which is currently being constructed in Aaltlaara, The service parts ds->ot, first of s network of si even such oner*tloss to be built in the United $%#&*», will be an Invariant now factor in Harvests?** distribution eye tea. It will serve ss s wholesale distribution dc>et far S3 «osr>aay-owned feranelies sad over 1,000 retail dealers handling harvester products in nine states on tha eastern seaboard. a long tlae resident of Karrisberg. Cooper started as an office cler* with International harvester here la 1915. as progressively served in various sales positions and executive caoaeltias, and with the exception ef s two-ysar leave ef absence to enter sllltary service in «orld war 1 and four years spent in the c.-ar>any,s Gnadea, «. J. sub-branch as esaegcr, ha has soent the greater part of his business life here. In 1$34 he was appointed assistant aanegcr of rtervestsr1* local general line branch, which distributes the eon^aay1© f«ra couipaent lines, and la 1336 he was appelated breach nanagar of the seae branch, s positioa he has held to this date. Cooper has for aaay years been active in eosasnalty and civic organisations. He was a aeuber of notary sad the isrrisburg Cheater ef Ceaaaree, and has participated actively la local Med Gross drives. Ceeper will aaauao his new duties in aaltlaerc iasiediately. rmoM Executive Offices INTERNAnONAX. HARVESTER COMPANY 180 North Michigan Arena* Chicago 1. IlUnoU
For fleiease l^JtaxIATCUt X " 7 ~' * AepolAtaent ef J. *. Cooper ss *&n».&*r ot latsraetioAAl Harvester^ new parts &cr»ot, located on ftesalngtea ttivn. and fceetcra Ave. la tfaltiaorc, was announeed today in Chicago by Mercer ••~ee, vice president ef supply and inventory, far the eesEcany. Cooper coac* to laltlaere free aarriaburg, Pa. where ho aaaagad aarooAter^ fare eoel-*aaat branch for the past ten years. I vetevae of #4 years of assort ease with ;iarv«ster. Cooper started with the eosr»suny In lt!3 at the ^rrleburg breach. As asaagsr of International amrvoster's new de.tieare parts depot, Caooer will have ooatplste charge of all operations at the depot. ?h* soot will serve ss a wholesale parts distribution center ter 33 oeapany-'Owncd terenehoe sad cere than 1,000 retail dealers hand!lag Snter- netlonal ri»rveftterf* actor tree**, fara and industrial *>&*** oewip&ent, amA refrigeration in nine states en the eastern soebanrd, ranging froai south Carolina to aetropolltea Row lertu Cooper will aegvao hie new caoec2t/ ianedleteiy *a teeoersry offices will be set up at Harvester's geeeral line braaoh, located At •1 hasher Street, lending coanetlon of construction ot the new sorts de>ol. In a etwtctaent leoued by the eouosAy *>. i*e ealdt *^repress on the new parts depot is proceeding at a satisfactory peee. erection of etrsetwr&l steel for the warehouse la ©o*.o~*ted and the aaaoAry construct lea le about t£xee»fourths finished, t&e office fooadatSon la in sad the eteel roof decaln^ is in progreee. »he .?c^ot shoaid be eovr>ictod in nay sad will begin ooerstlons in July. *?ne depot will esrciey *opro*ie*tely let) neon Is when la full operation. Included will be about SO offlae warmers. Alectrloal aeeeu^tlng aachlao eperatere will be needed, cod oppiieetioae for thin • s - and various other types ef eaployacnt are now feeing accepted.* y^ />, / f K;
FROM INDUSTRIAL POWER DIVISION INTERNATIONAs L HARVESTER COMPANY, 180 Notth Michigan Avanuo, Chicago 1, Illinois FEBRUARY 12, 1947
SPEECH BY NEAL HEGC2NS, MANAGER OF SALES, INDUSTRIAL POWER DIVISION, INTERNATIONAL HARVESTER CO.
SUBJECT: INDUSTRIAL POWER SALES CONFERENCE
This is one of the rare occasions when the Industrial Power Sales Department is host to their Industrial Pover Dealer and Distritutor Organisation. In the postwar world in which we now meet, there is great need for unity of pur pose , cooperation, and direct application of the golden rule. Under the American system of free enterprise, there must be a dependent relationship between individual dealers and a manufacturer's sales department. It is the responsibility of the Sales organisation to distribute the manufacturer's products economically to customers who are entitled to the full value of the services for which they pay. Notwithstanding some "long haired" opinions to the contrary, it is my opinion that Bales distribution is one of the most important links in the nation1s economy and is at least partly responsible for the American way of life. Only by efficient sales distribution can many customers be economically served with goods produced in large quantities. Furthermore, there are millions of people who max* a com fortable living in wholesale and retail sales and service trades, and add to the nation's prosperity by becoming good customers for many other products. A review of the past and a look at the future reveal that many problems of the Industrial Power Sales organization are controlled by that ancient law of Supply and Demand. If the salesman's dream "of having the best product at the lowest price in quantities desired at the time they could be sold", oould become a reality, we would have no major sales problems. During 1946 the demand for construction machinery was in excess of the supply for many reasons with which you are already familiar. Material shortages and labor strife also took their toll of anticipated production, It is estimated that production was about 60$ of projected schedule, while there was a back log of customers' orders of approximately 200$ of production schedules. It was impossible to determine accurately how much "water" there was in this backlog of customers' orders, but it is believed that if industry had been able to produce 100$ of anticipated schedules the backlog of "urgent" orders would have been considerably less by the end of 1946.
During 1946, we received many requests for emergency shipments of crawler tractors to take care of customers who had "critical" requirements. We were unable to take care of these requests. There were Justified increases in prices when 0PA regulations were lifted in December, 1945. It is believed that these increased prices tempered the urgent demands, plus the fact that many con struction operations were curtailed for numerous reasons. It is also reported that approximately seven thousand crawler tractors were delivered to priority use»s from war surpluses. There is an additional unknown quantity still avail able from this same source. It is assumed that many of these tractors were delivered to customers who had "urgent" orders placed with dealers and dis tributors.
While the Crawler Tractor Industry operated with very little opportunity for profit during 1946, a bright spot in the picture was that International Industrial Distributors were able to operate profitably during 1946. Al though no distributor received as many Industrial Power machines as could have been sold to customers, each and every one participated in an equitable distribution of our limited production. By good business methods, extension of service facilities and practice of operation economy learned during the var, it was possible for distributors to enjoy a profitable year with a minimum of sales effort to customers.
What is the outlook for Industrial Power Sales in the future? Today you hare viewed the largest variety display of construction machinery in the United States since 1940, the year of the last "Road Show". All of the equipment on display is "powered by" International Harvester Industrial Power,
This Industrial Power Sales Conference is being held in the most modern plant in the world devoted exclusively to the production of Industrial Power machines. In addition to this Melrose lark Plant, the Milwaukee Works and the Tractor Works in Chicago are a part of the production facilities of the Industrial Power Division of the International Harvester Company. International Harvester has faith in the future as evidenced by the investment in these tremendous production facilities,
Concurrent with Harvester's expansion of facilities, there has been a general conversion and considerable increase of production facilities in the Construction Machinery Industry. Barring unforeseen disaster it is believed that the production or supply rate can be greater by the end of 1947 than any previous year. Assuming there will be no major strikes which affect this industry, my guess is that the supply of most items in the Construction I^achinery Industry will exceed the "critical" demand some time during 1947.
While increased production will have its effect on reducing the backlog demand for construction machinery, it is believed that the increased prices will also be a major factor, since many customers may not be in position to buy machinery at high prices. Unfortunately, the price factor is one over which the SaleB organ!Eation has no direct control,
In the case of Industrial Power Products, the present increased prices re flect the minimum increase necessary to catch up with current production costs and do not include any future increase in labor and material costs. Restrictions imposed by the governmental price controls between March, 1942, and December, 3.946, resulted in "out-of-llne" machine list prices in relation to costs during that period, and for months numerous machines were produced without profit to the Company, In spite of this, our Company maintained maxi mum production to the best of its ability under existing conditions. NotijithQtanding our policy of delivering the best machines and service to our custSsaera at the lowest possible price, the continuous increase in "costs" have required increase in list prices to a dangerously high level. The fu ture of hundreds of dealers and distributors, thousands of Company employes, and millions of dollars of stockholders' investments in production facilities is at stake. If the costs go too high, we will eventually lose the customer.
It is essential that we, as a Sales organization, be prepared to meet the sales, service, and distribution problems of the future.
Our service creed is that tho customer is entitled to "maximum efficiency at minimum cost." We have planned and are putting into effect a program for dealer and distributor organizations which will provide them with "factory trained" service engineers and service parts experts who can assist the customers in obtaining more economical use service from their higher priced equipment. ThiB will require full cooperation on the part of the dealer organization if the expected results are obtained.
Whatever the price - Industrial Pover machines are of little value to tho customer without matched allied equipment. Today you saw physical evidence of the combined effort of our engineers and allied equipment manufacturers to supply Industrial Power Distributors an answer to thoir customer demands. While we have made progress, I will not be satisfied until we have reached our objective of shipping matched allied equipment on every pioco of Industrial Power equipment.
Our future production schedules should rosult in an adequate supply of machines, attachments, and service parts to meet dealer and distributor trade demands, We also hope to be in position to adequately supply other manu facturers with Industrial Power units so that the trade can be served with tho typos of construction machinery which will moot their requirements.
When the supply catches up with tho demand, the pressure is on the distributor organization, and the 'order takers" will have to go to work. Thoso who are ontitlod to bo called salosmon know that goods can be sold with a little "leg work," but you cannot sell anything waiting for tho customers to come to you; thoso days havo passed. All of us may have to scale down our expectations as to what constitutes a fair return for hard work and, if in the courso of ad justment harder times are oxporienced, it will be part of the price paid for the "easy-selling" times we have had.
At no time in tho history of the industry has there been greater need for oloser cooperation between Industrial Power distributors and the Industrial Power Salos Department, Our relations aro on a partnership basis; we aro dependent on each other for the success of profitable sales distribution of Industrial Powor Products. I hope that oach and everyono of you recognizes this fact and approachos our mutual problems on a "partnership basis."
Earlier I statod thore was need for direct application of tho golden rule in our business relationship. We have practiced that in the past and will continue to do so in the future. A good oxamplo of this practice is the system of equitablo allotment distribution to all distributors of the limited supply of Industrial Power Products, under which we have operated for'some time. As long as you are one of our partners, you aro entitled to equal consideration, I do not believe there are any among you who honestly think it should be otherwise.
I have touched upon a few of the many problems which confront us today. An appraisal of the situation emphasizes the magnitude of tho sales Job yet to be done in the Construction Machinery Industry. High costs and material shortages aro holding up more than 500 million dollars worth of national highway improvements and delaying contract lottings for at least as much more, Many new uses for Industrial Power equipment have been developed during recent years - all of which indicate a continuing sa3.ec market for Industrial Power machines which prove profitable to the user.
The Sales Department of the International Harvester Company, Industrial Pover Division, is confident that our dealer and distributor organization will meet this challenge and forgo ahead to the ultimate goal of more satisfied customers. 2fJ, ' * / It 7
FROM INDUSTRIAL POWER DIVISION INTERNATIONAL HARVISTER COMPANY, 180 North Michigon Avenue, Chicago 1. Illinois
INTERNATIONAL HARVESTER HOLDS BIG POWER SBDW
A complete exhibit of all types of power and equipment for earth-moving and construction was reviewed on February 12, 1947, by 400 industrial equipment distributors and 200 others at the Melrose Park headquarters of International Harvester's industrial power division. The show was unusual in that 32 other manufacturers had machines on display in addition to International's complete line of crawler tractors, industrial wheel tractors, and Diesel and gasoline engines. All of this equipment consisted of machines mounted on International crawler or wheel type tractors or self-powered equipment built by manufacturers using International power.
Reminiscent of the great automobile shows held in Chicago before the war, the exhibit provided the most complete picture of industrial equipment ever presented, in the opinion of company officials. The show occupied a 40,000 square foot section of the Melrose Park plant and included tractors and matched equipment such as bulldozers and angle-blade dozers, tractor-powered dirt wagons capable of carrying a load of many thousand pounds, and huge scrapers for digging and transporting dirt. The logging equipment featured heavy crawler tractor-mounted winches and the logging arches used to handle the massive timber of the west coast. Road construction and maintenance equipment included road rollers, Diesel-powered air compressors, sweepers, snow removal equipment, motor graders, mowing equipment, and motor patrols of all sizes and types.
Also on display were tractors equipped with shovels, bulldozer shovels, land clearing equipment, winches, cranes, and pipe-laying equipment. Machines not tvector-mounted included shop mules and lift trucks for factories. Diesel e.:-d gasoline-powered electric generators, a truck-mounted shovel, and many O'her products for use in a variety of industrial activities.
The exhibit had many interesting displays. Among them were a typical International industrial distributor's parts department complete with counters a..d bins and a field service truck equipped to carry service to the customer. Soring the all day show three automatic motion picture machines showed films of industrial equipment in action.
The giant TD-24, International's streamlined new Diesel crawler tractor, was a focal point of the show. The largest and most powerful crawler tractor ever built, the TD-24 is going into production at Melrose Park this year. The six cylinder TD-24 weighs 35,000 pounds but, in spite of its weight, "finger-tip" steering and ease of gear shifting are said to be features. With eight speeds forward and eight in reverse, the Immense tractor is expected to set new standards in high spaed handling of big loads. The TD-24 headed a full line of International crawler models sized to meet any requirement. -2-
A n#, large UD-24 Diesel pover unit utilizing the TD-24 engine and several otheT1 new models stood out in a lineup of 16 International Diesel and carburetor- type power units, including a new marine Diesel engine. Other new International equipment included a gearless highway mover and an experimental 4-wheel high speed dirt hauling tractor.
Now equipment sbovn by other manufacturers included a high speed 2-wheel tractor vith dirt vagon, and a 4-vheel drive tractor having a cravler type chassis and cravler controls.
The 400 industrial distributors vho visited the display were in Chicago for the Associated Equipment Distributors* convention at the Edgevater Beach Hotel. Other visitors included trade paper editors and equipmert manufaoturers. The display was to be held open until after the American Road Builders Association convention in Chicago the following veek. (J J, f v, /fY)
FROM INDUSTRIAL POWER DIVISION INTERNATIONAL HARVESTER COMPANY, 180 North Michigan Avenue, Chicago 1, Illinois
INTERNATIONAL EXPANDS SERVICE PROGRAM FOR USERS
"The right parts at the right time."
This is the keynote of a nev parte Inventory program, called "inventory manage ment," vhich has Just been announced for the 142 distributors of International Industrial Pover by W. W. Black, supervisor of the service and parts section of International Harvester's industrial pover division.
Inventory management, according to Mr, Black, is a "control" program designed to maintain a 60-day bank of service parts in the parts department of indus trial pover distributors. Another goal of the program is a four-times-a-year turnover of parts inventory.
Distributors' service parts managers vill get the full story on inventory management during the next fev months vhen in groups of 25 they will attend 1he Harvester Company's Central School for Sales Personnel In Chicago for a week's instruction.
"Inventory management" is being highlighted in a service and parts exhibit that is included in the huge display of International Industrial Power equipment and allied equipment at Harvester's Melrose Park Works this week. The display, largest of its kind ever staged under one roof, is being shown to visitors to the A.E.D. convention in Chicago.
Tie service and parts exhibit also features a field service truck — an Ji^-rmational pickup « equipped with a welding outfit that uses the truck Angles for powering the welding generator.
A"l so in the display is a portable track pin press; a map showing locations o-" the 142 distributors in the U.S.; a sample service parts counter; a service t^rts display; a parts merchandising display; a rack of parts catalogs and IL ae Ribbon Service Training Course manuals; and catalogs and mailing pieces en industrial power equipment.
The service program of Harvester's industrial power division in the field jo divided into eight service zones, each with a service engineer. These engineers each live in the zone to which he is assigned. A ninth service \neer is assigned to Melrose Park Works. These men are specialists on f! Id service and service parts. They direct such distributor activities as adequate parts stocks and sales, base of operations, service personnel training, product information and reporting product performance. They also keep abreast of service information from manufacturers of allied equipment. -2-
ThesO men and the states they cover are!
Zone A: W. Deffenbaugh, Melrose Park Works •• Minnesota, lova, North Dakota, South Dakota, Nebraska, Wisconsin and part of Illinois.
Zone B: J. R. Chesney, Melrose Park Works -- Michigan and parts of Indiana, Ohio, Pennsylvania and Nev York,
Zone C: V. I. Scarber, Boston, Mass. -- Nev Hampshire, Vermont, Massachusetts, Connecticut, Nev Jersey and part of Nev York.
Zone D: H. D. Ertz, Atlanta, Ga. -- Florida, Georgia, South Carolina, North Carolina, Virginia, West Virginia, Delaware and Maryland.
Zone E: F, H. King, Nashville, Tenn. -- Alabama, Mississippi, Louisiana, Tennessee, Kentucky, Kansas, Missouri and parts of Ohio, Illinois and Indiana.
Zone F: F. J. Shreck, Tulsa, Okla. -- Oklahoma, Arkansas, Texas, Colorado and Nev Mexico.
Zone G: W. R. Cole, San Francisco, Calif. — California, Arizona and part of Nevada.
Zone H: P, W. Cramer, Spokane, Wash. -- Washington, Oregon, Idaho, Montana, Wyoming, Utah and part of Nevada.
L. J. Lange, Chicago, 111., Melrose Park Works.
The vork of the service and parts section of Harvester's industrial pover division is divided under Mr. Black into three parts, (l) The service parts section, under supervision of H. S. Van Cott. This section supervises the division's parts sales, including distributors' and manufacturers' accounts. The nev parts "Inventory Management" program comes under this section. (2) Field service, vhich covers the activities of the service engineers. (3) Service information, under supervision of J. W. Christman. This section develops all service and parts information on the division's products and is made up of three sub-sections; photographic, manual vriting, and parts catalog compiling.
"This program," says Mr. Black, "has one important over-all objective: more efficient service for the users of International Industrial Power." (J*At* t + 0 * 1)"?
FROM INDUSTRIAL POWER DIVISION | INTERNATIONAL HARVESTER C O M PAN Y, 180 North Michigan Avenue, Chicago 1, Illinois
The Industrial Power Division of INTERNATIONAL HARVESTER
The Industrial Power Division of International Harvester Company was created in 1944 as a separate and distinct division of the company. Its executive staff, with H. T. Reishus as general manager, occupies the administration building at Melrose Park Works where sales, engineering and manufacturing heads of the divielcn are also located.
The division operates three plants of which Melrose Park Works is the newest and largest. The others aro Milwaukee Works and Tractor Works in Chicago.
Most recent acquisition of the division is a tract of 1920 acres near Phoenix, Arizona, which the company has leased as a testing ground for International industrial power equipment and the several makes of allied industrial equipment designed for use with International tractors and engines. The site was used previously by General Motors as a tank testing site during the war. Construction of now buildings on the site to house servicing facilities will be started soon.
As early as 1908 International Harvester tractors powered road building equipment in Chicago. In 1912 the company's Titan tractor was designed to bo convertible into a road roller by removing tho front wheels and replacing them with rollers. In 1924 a regular farm tractor (the 10-20) was equipped with solid rubber tires to adapt it to various industrial uses. By introducing changes in spring suspension and other details this tractor become the Model 20 Industrial Tractor. This was in 1925 when it was decided to design and produce tractors for industry.
In 1928 another tractor, the Model 30 Industrial Tractor, was introduced to industrial customers to give them the benefit of its greater horsepower.
In the same year the Model 20 was modified by adding a track laying device. By 1930 the company was building its first crawler, the #20 TracTracTor. This became, with a new chassis, the T-20 in 1931.
Then, in March of 1931 the T-40 went into production, a heavy-duty crawler which earth movers and loggers had been demanding. The next month this tractor was offered with the first American-made Diesel or compression-ignition engine that started on gasoline and after a minute or less ohifted to full Diosel operation. This easy and dependable starting system is still one of the distinctive features of all International Diesel engines. And the first model to feature it was the TD-40, many of which are still in use among contractors. -2-
This Diesel-powered tractor gave industrial users the advantage of more economical operation on heavy-duty Jobs.
Between 1925 and 1927 the Model 20 Industrial Tractor was being adapted by manufacturer-customers to power their products. For example, it was built into a one-man grader or highway patrol with marked success. In rising volume sales of tractors and engines to manufacturer-customers became so great that it became a considerable part of the tractor and engine production. Increasingly the company's truck and tractor engines were being adapted by these manufacturers as power units for their machines.
In 1936 the first of the present line of International Crawler Tractors was produced, the TD-18 Diesel Crawler. Quickly the smaller sizes of Diesel- and gasoline-powered crawlers and wheel tractors were introduced. Resulting volume of business and the distinctive characteristics and demands of the Industrial field made it clear that to serve the industrial customer adequately end effectively a separate and distinct division of the company would have to be created: The Industrial Power Division.
This year tho division will produce at Melrose Park Works the largest and most powerful Diesel crawler tractor ever built, the International TD-24. This great tractor heads a long line of Diesel and gasoline-powered crawlers, wheel tractors and engines of power units in a range of horsepowers that meet the demands of earth-moving, construction and industrial users.
Photographs accompanying this article.
I-483-S. Predecessor of tho 1925 Model 20 Industrial Tractor. Solid rubber tires adapt this tractor to industrial uses.
1-592-KK, The first International Crawler tractor was an adaptation of the
Model 20 Industrial tractor by adding a track laying device.
I-3398-BB. The first International Diesel-powered tractor was introduced in
1933. This crawler was called the TD-40. Many are still in use.
I-468-KK. The International TD-24 Diosel Crawler, largest and most powerful crawler ever built, will be produced this year at Melrose Park Works. yu., *. /?*?
FROM INDUSTRIAL POWER DIVISION INTERNATIONAL HARVESTER COMPANY, 180 North Michigan Avenue, Chicago l,lllinois
MELROSE PARK WORKS
Industrial Power Division Headquarters
Melrose Park Works, one of the nation's finest large manufacturing plants, is the newest of the three vorke in the International Industrial Pover Division netvork.
The plant is located on 125 acres of ground near the Chicago suburb of Melrose Park. It has 2,042,950 square feet of floor space under roof. The administra tion building houses the exeoutive staff of the division of which Herald T. Reiehus is General Manager. Other executives on the divisional staff arei
Mr. D. B. Baker, Manager, Engineering Mr, H. B. Rose, Manager, Manufacturing Mr. W. M. Holland, Manager, Supply and Inventory Mr. Neal Higgins, Manager, Sales Mr. B. G. Laser, Manager, Industrial Relations Mr. M. L. Allen, Divisional Comptroller.
The executive staff of Melrose Park Works includes:
Mr. Menno Felber, Works Manager Mr. Dante Chimenti, General Superintendent Mr. Brooks McCormick, Assistant General Superintendent.
The buildings are of modern steel and masonry construction, Tunnels beneath the plant make all parts of it accessible vithout having to cross production areas, OafeterleCj locker, medical and recreation rooms for employees occupy the lover lInternational Harvester announced the purchase of Melrose Park Works for $13,750,000 on November 27, 1945. It had been the Buick Motors plant for wartime production of bomber engines, for which it was built Just before Pearl Harbor.
Acquisition of Melrose Park Works advanced the postwar plans of the division by at least a year since a plant of like capacity would have had to be built if production were to match the rising demand for International industrial tractors and engines. This plant fits into the company's production facilities as if it were built to order!
The location of Melrose Park Works is convenient for interplant shipments. In the Industrial Power Division network Milwaukee Works supplies castings from its automatic foundry. These advance to Melrose Park Works where engines, pover units and the nev TD-24 Cravler Tractor are produced. From here engines go to Tractor Works in Chicago for assembly into other tractors and for final shipment. Thus, Melrose Park Works is the Diesel engine production plant in the Industrial Pover Division network and the home of the TD-24 Diesel Cravler, largest and most poverful cravler tractor ever built.
When operating at capacity Melrose Park Works vill employ approximately 5,500 production vorkers.
Photograph Accompanying th^s Art*<4»
CAS-25006-MS Aerial viev of Melrose Park Works, looking north-north-east.
Administration building is the three floor structure in front. This plant has 2,042,950 square feet of floor space under roof. Diesel engines and the International TD-24 Cravler tractor are the products of this vorks. FKOM Executive Offices INTERNATIONAL HARVESTER COMPANY 180 North Michigan Avenue Chicago 1. IUlnoli
rw p^;^rgiQ iiniu.-4*>ra-i
The K'oard of directors of the International ^rv^stsr Ceapaaiy tansy a^reaeed the itnrterij dividend rate oa the en-saoa OttcH ef the eoa *ny free 6$ cost* to 1.00 i>or share* the divldeod is payehlc April 16, 11*4? to seocicholderA of record aare* 1ft, 1907. In A statement aaaoonclag the increase, •John L* *e€affrey, presi des t of the eee> payments at the new rate will oean a return to the eea&on stockholder ef 4*1 pmr cent.*
9 — •' r*o* Executive Offices INTERNATIONAL HARVESTER COMPANY ISO North Michigan Avenue Chicago 1. Illinoli
For Release IMMEDIATELY J i V . 6 I ' International harvester €eav*ay teds? &Af%ettnee4 thet It to** eela the slant erne* oswslta^at of Its «ieeenaln .Heel Ore fci**oe, on the he AS el range near felling, tflAoeeeSa, to Clevel*nn-**- eitff* the Agnes, enextne enl "argent nines, eMcfl %% Tb&* oners tee1 nmAsr l***re>»«t4« far aany fa&rs. tt»e i|*e*«»in "teel 4>re Otfree heve not operated einee Feb* renry fi, t<>4d, t«**nee of s strips by the Mat te*. ?teel **erheref £1<»). In eoe*s*ntlA£ as Ha re*star's *ltfc»=rr for us to seel other lent mage sources of ore. •eeao#fortr, nrerefore, the company rill On/ it« lr©#* ore requirement* In the er#n enrfcst, fro« laOOOJAAAt<•'ff''.' *ineo ClfrveleniWCltffe etll offer John to praetleelly all - » -
ths present eanvlores of ;l#cor*ln 5te«l Ore tflnee, a gr&at; ef •Irani too ^sc^iv, ,-i*rcher aal»1 th* »lth»lr«.»Al of hcresster cheuln not J nean le«c of ev';»* future *»elf*r» of em- . s^oyen, ever* thou*;*, ether en^oye*!** In avallahle to the*,* f**refcer said, "Kany 91* oar people hev* seen »ith »* rer aeny y**r»* For thwt reason are fce*ti thsde ereclnl t l*ns for thnu. Ati efefc'l'we* with sore *vf.*- five tzar* of esrvtce *tl? receive special ownnIteration. 1 Be trill effwr pension* to all IcfiA-cerviea AteplOfee r- f CJAAltfy «sn<*#r tsm* ef Mfci f>e**rnny i. pension ^lnn# Antes emrlopea eho ftA net f>«alf.fv for !>*n*ieA*? »iii or gi*en *ab«*fcnntl*#* ><**# **4 fivn or nor* y**r« of «er*ir*. *ltfc | ths OOA .— v. the asw*****» ef tn**» neyaentt nil] vary *eror£lnr. te the ve^e-or *niary rate *n«$ Het length o/ eervle* of t>* *«??!<»**. * * .-*• >r r*eret the satina* of our assocl* tlon »lth Ate* iron *in* syjplooAO seal **ti; the seaman 1 tie* where sur Ame^t&sctA were lucjtteu. AS nave n*4 ir g ana ; lf»*at>nt; aaeoelaslana *lt>. bath, us niuc«ral* nope chat aotc eavloy*« e*4 the casH&unttleR *ill oe pleafi*4 eith the ««* *rrangeo*n.t In Bsf future.* no* Executive Offices y INTERNATIONAL HARVESTER COMPANY 130 North Michigan Avenue ..< Chicago 1. UlinoU ^vf t - ^h */1
Fox Release IMMEDIATELY
New wholesale prices on blnoer and baler twine effective imme diately were announced by the International Harvester Company, in Chicago,
today. A statement released by T. B. Hale, vice president of general line aalea for the company, said: "International Harvester has been forced to raise wholesale orices of binder twine from $6,125 to $10.50 per bale, and baler twine prices from $6.68 to $10,00 per bale. Prices are f.o.b., Chicago, Illinois. Price increases reflect three nrincipai factors: removal of the government subsidy on fiber established in wartime, increased material! coste, and increased labor costs. "Removal of the 4-1/2 cents per pound subsidy by the government accounts for about one-half of the increases. If it had not been for the subsidy on TAW fiber, the Drice of twine during the years 1943-46 would have been much higher. With the removal of the subsidy the Increased cost of fiber will be oaid by the consumer. "A world fiber snortage caused by the disruptions of war haa led the U. S. Crovernraent to continue it's wartime oolicy of buying, pricing, and allocating all raw fiber from which twine is made. Since October, 1946, including the effect of the subsidy removal, the Drices of raw fiber have gone UD about 12? percent.
"Increased labor costs were another important factor in establishing the new twine nrlces. In Harvester's twine mill, for example, the average nourly earnings of employes, exclusive of overtime, are uo more than 60 percent since January, 1941. - 2 -
"As • result it costs us 86 percent more to maXe binder twine today than it did a year ago, and 98 percent more to make baler twine. The new binder twine nrices which were advanced ?1.4 percent and baler twine orlces which were advanced 79.2 percent do not fully reflect these increased costs. International Harvester will continue it's policy of holding all prices to the lowest possible levels." Executive Offices INTERNATIONAL HARVESTER COMPANY 180 North Michigan Avenue Chicago 1. IlllnoU *j 3t MJb / /
3-6 For Release m^^utjg^
Aopolntaent of Basse! R. Poynor to ths position of sgrlcuitural engineer in charge of soil conservation engineering for the International amjrveetsr Coisany, was announced today in Chicago by A. e. '*. Johnson, * aan*gsr of englnserlng for the coaoeny'n F«r» Xtapie«ent Division. Poynor, formsrly with the eoapaay'e Canton Works engineering department, has had a long «nd distinguished career in the field of soil conservation end agricultural engineering. He has received degrees in both *vrlcultural and civil engineering At the University of elnconsin as veil ss & degree In soil aecaanion st Purdue Unlverelty and wae cssool- ated for several yearn with the Unitsd 3t'tee Denertaent of Agriculture, Aoli Conearvetion Service. In Addition he spent som tiae ss s professor of both agricultural and civil englnserlng In thrss of the nation's leading agricultural schools. In dl"ousting the sooolntasnt Johnson eeld: "Internstlonal Harventer has long recognized the I?;»nert*»nca of *> sound soil conservation proFor Release To Afternoon Newspapers, Tuesday/March 18, 194*
^y^tsuz ^\^~u+~x^^ $
International Harvester Company, carrying out its announced program of e reducing prices to the users of its products by approximately $20,000,000 a year, today sad© public specific price reductions on 163 basic models of tractors, farm machines, industrial pover equipment and motor trucks. The price reductions, which were made effective as of March 10 to United States customers, covered 12 models of farm tractors, 123 models of farm machines, 16 models of industrial tractors and engines, and 12 models of motor trucks, as jgfckwell as certain motor truck attachments. The individual reductions ranged from $2.50 to $300 and from 1# to 23,8#. Harvester officials pointed out that the company was not able to reduce prices on all its products but had made reductions wherever possible, in the amounts possible. They estimated that the reductions would benefit more than half of the company's customers. On Harvester's largest selling farm tractor, the Farmall-H, the price reduction was $125 or 10,6$. On the Farmall-M, the next most popular model, the reduction was $74 or 5.3#. Price reductions were applied to several of the most popular farm machines on which demand is expected to exceed supply for months to come. The automatic pickup hay baler was reduced $75 or 4.1#. The self-propelled combine, the newest type of grain harvesting machine, was reduced $122.50 or 3.4#. The two-row tractor- mounted corn picker was reduced $52 or 6.4$. - 2 -
In the motor truck line, price reductions were made on twelve basic models,
all in the medium or heavy classifications. The reductions ranged from $50 to $300
or from 1.9$ to 3.6$. The effect of these reductions was increased by reductions
made at the same time in the prices of some widely-used motor truck attachments,
such as two-speed rear axles used on four models, four-speed transmissions used on
five models, air brakes used on two models and increased capacity cooling units
used on three isodela. The estimated overall reduction on the affected motor truck
models is 5$,
In the industrial power line the company reduced the prices of four basic
models of crawler type tractors from $35 to $50 or from 1$ to 1.6$. Eight models
of stationary engines wero reduced from $10 to $150 or from 2.3$ to 11.4$. Four
basic models of wheel-type industrial tractors were reduced from $19 to $56, or jSx from 1$ to 3.4$. The estimated overall reduction on industrial power products is
about 3.5$.
Here is a summary of the types of products affected by the price reduc
tions and the range of the reductions:
FARM TRACTORS--Affect8 12 basic models. Price reductions range up to 10.6$
and from $10 to $134.
PLOWS--Affects 52 models of plows. Price reductions range from 3$ to 10.7$
and from $9 to $20.
CULTIVATORS--Affects 13 basic models. Price reductions range from 4.5$ to
7.4$ and from $5 to $10.
USTERS AND MEDDIEHJSTERS—Affects 7 models. Price reduction was $5 in
each case. Percentage of reduction ranges from 2,8$ to 4$.
CORN PLANTERS--Affect8 four basic models. Price reduction was $5 in each
case. Percentage of reduction ranges from 3$ to 4.8$.
GRAIN IJRILLS—Affects 11 models. Price reductions range from 4.4$ to
6.3$ and from $14.25 to $20. - 3 -
MOWERS--Affects 2 basic models. Price reductions were 2.5$ and 5$ and from $4 to $11.50. SWEEP RAKE—Affecte one model. Price was reduced $5 or 5.5$. PICKUP HAY BALER—Affects one model. Price was reduced $75 or 4.1$. SELF-PROPELLED COMBINE--Affects one basic model. Price reduction was $122.50 or 3.4$. ENSILAGE CUTTER--Affects three models. Price reduction in each case was $22.75, a percentage range of 4.8$ to 7.1$. ENSILAGE HARVESTER--Affects ona model. Price reduction was $33.75 or 5.9$, 2-R0W MOUNTED CORN PICKER--Affects one model. Price reduction was $52 or 6.4$. HAMMER MILL--Affects two models. Price reductions were $5 in each case, percentage changes were 1,9$ and 3$. UME SPREADER--Affects one basic model. Price reduction was $2,50 or 4.9$. POWER LOADER--Affects one model. Price reduction was $25.50 or 8.9$. MANURE SPREADER--Affects one model. Price reduction was $13 or 3.5$. MILKER UNITS--Affects two models. Price reductions ranged from 14.4$ to 18.4$ and from $12 to $17. MLTJCSR VACUUM PUMPS--Affects two models. Price reduction was $17 in each case, percentages were 11.5$ and 19.6$, PORTABLE ME1KER VACUUM FJMPS—Affects two models. Reduction was $17 in each case, percentages were 11.3$ and 11.7$. STAINLESS STEEL MUKER PAILS--Affects two models. Price reductions were $5 and $10 or 18,5$ and 23.8$, CREAM SEPARATORS—Affects four models. Price reduction was $13.25 in each case. Percentages ranged from 8$ to 10.4$. - 4 -
TRACTOR TRAILER—Affects one basic model. Price reduction was $12.75 or
5.5$.
MEIK COOLERS—Affects 5 models. Price reductions ranged from $8 to $18 and from 1.9$ to 4.3$.
INDUSTRIAL TRACTORS (Crawler)—Affects four basic models. Price reduc tions ranged from $35 to $50 or from 1$ to 1.6$.
INDUSTRIAL TRACrORS (Wheel)--Affects four basic models. Price reductions ranged from $19 to $56 and from 1$ to 3.4$.
INDUSTRIAL POWER UNITS—Affects 8 models. Price reductions ranged from
$10 to $150 or from 2,3$ to 11.4$.
MOTOR TRUCKS--Affects 12 basic models. Price reductions ranged from $50 to $300 and from 1.9$ to 3.6$.
MOTOR TRUCK ATTACHMENTS—Affects seven items. Price reductions ranged from $6.25 to $268, including a change in specifications on two items, r»oK Executive Offices i u INTERNATIONAL HARVESTER COMPANY / )\s ISO North Michigan Arena. J1 Chicago 1. IUlnoU
International Isrvester Geapeny today announced price rodeo** tlcms which it efltlaated will esve the oners of its products approxl~
mutely |?0.0009ooo a year sad said lta aetlom was t*aea 'because we Relieve there is nothing aore IsrportsAt to this ©©entry than to lover the pricee of the goods that people amy*. Kerveetsr's price reduetleae will become effective before April 1 end will apply te a selected list of prodoote in the company's line of tractors. f«ra aaehlnee, actor tracks and Industrie! power eemlpejeat. A etateaeat by John L. AeiaXXrey, Nervestar president, la explama* tloa or the price reductlona, saidi H »*e have undertaken thin program despite tfee fact that oar prices have not risen so BUS.~ or so rapidly as the pricee of nost other induetrial products. Government reporte chow that the prices of all nanofeotureO prodoote In the United States have rieea &2.5/S sines 19M. In that same period, priors of oar sector tracks rose 35^« our industrial oowsr products
y»IA ana our tr otore and f*»m aaehlnee only ?5/f. "The Anerleer* people insisted that the government withdrew from its attsapts to control pricee in peacetie©. Thet placed the responsi bility where it belongs—in the hands of business and Industry. Hot all business can reduce pricee now. Not All can reduce be the seas amount. ™r eoapany has felt a duty to ect as promptly as possible. In our esse, the business outlook no* smkes it possible to aove towerd the goal of lower prices.
•Oar ability to maintain this lower level of prices will dspead In pert on whet happens to the pricee end flow of aateriels that we euy ef ^
A. •
from others. Because we believe price reduction is vital, we ere will ing to assume the risks that era Involved. i ••?ar success will depend, too, on unintemirted ©reduction at reAS00*0!* wage levels. Ihis is not a prograa that can b« oarrlsd out ir It is hampered by • tri.e#e or #»rr eteppsges.
•In our own e*>6c, we cannot reduce prices on all our products. / Scan of our rrocucte loss noaey, soae barely break even and some show a profit. The reductions will therefore not be welfare and each one will be Individually node.
**e will announce the exact list of our products which will he effected and the amount oi the reduction on eeeh Juat ee rapidly as we can complete the work of computing new prices.* moK Executive Offices INTERNATIONAL HARVESTER COMPANY 18C North Michigan Avenue Chicago 1, Illinois
j For Release Y-> •.:?'T'AV; WWl*:! PAPTKg. hV-CH 9» ^9 ?7.
ImtOrmmtlOmAl Harvester Costperiy tcdiy announced prlOO reduc tions Khich It estimated will cove the uc~rr of its products? Apprexl* »&tel> i?0,COO,000 n yksr and said itn action ami tehee: *beOAUAC vt l»tlieve there is nothing isore important to tftle country tbsn to lover the priors of the £oo3s th*t people buy*. Harvester1I prioe reductions will becoae effective before ^pril 1 ar«£ will apply to a selected list of products In the company•** Hat of tractor?, f^rm Kaohinar, rotor trucks and Industrial power eculprceitt. A etfctwfcent by John L. KcGaffrey, Harvester president, in ©x plans.- tlon or the price reduction A* omldl •fce i^.ve undertfJten this progrew despite the fnct th«* our pricee have not rtocr; so much or so rapidly us the prices of nsost Other innunfcrlal productr. Government reports show thai the price6 of &H •samfeoturcd products in the United Stateo have risen 6?.5,i since 19^1. In that ASAsO pcrlcc', prle< s of our motor truefce rose 35^r our in\urtrl£l power ?>ro<;ucts y*$9 and our tr otorc znti f*.rn aachlnss only ?J>/2. •The ammVlOAJI OOOpli lnelcted th*t the government withdraw fron ite attempts to control ^.rioce In peoeetlis*. That plfcoe4 the rospofiol* bllity vherc it belongs—In the bands of buslACAA Amd lnemetry« hot nil buiiineci3 can-reduce pricee now, Kot all OAA reduce by the same wount. ^ur company Iv•.& fflt n CAity to ^ct ^G promptly **,*: pcsrlhle. In cur ense, the bu»IaeAe outlook no* jr~ke.s it possible to rove toward the goal of lover pricee. *Gur nhllity to ar.intain thli lover level of pricee will depend la p<
