In 1919, Clessie Cummins founded the Cummins Engine Co, Inc (now Cummins, Inc). At the time of its founding, Cummins developed the first engine as licensee of R.M. Hvid Co. This engine was a 6 horsepower (4.5 kW) model designed for use on the farm.
Cummins' former employer, Irwin, invested a great deal of money in Cummins' company. However, Irwin was not satisfied with the company's profits and threatened to cease investing. Sales of diesel engines to farmers through the Sears-Roebuck catalog were not generating significant profits, partially because farmers would purchase and use the engines during the harvest period and then return them to Sears.