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THE GARDEN ISLAND, TUESDAY, SEPTEMBER 0, 1921
Big Cut in Ford Prices
Ford Cars and Trucks reduced Sixty Dollars.
All new Fords are equipped with self-starter, de
mountable wheels, extra rim and tire carrier.
You. need .not delay placing your order for a new car,
as we have just received a shipment and they will be sold
at the new price.
Trade in your old Ford on a new Foid.
Phone us for prices and terms.
Nmmlutttlt (Samp, Cfb.
E9 Henry Ford Tells How He
Paid His Way Out
Continued from last week
unnic manea , n man's senses
keener he sees, hears and fools
things that aro not real, but ah-
normal ; no oases ms actions on
thoughts, Ideas nnd impulses that
aro not sounh. Thatls Just what
war does to business and Industry,
Tho banker, sutldonly handling mil
lions whore boforo ho handled but
thousands, becomes looso and takos
chances which formorly ho would
have thought unsound. Tho manu
facturer, faced by over rising costs
of materials, comes to tako little
hoed to expenso and seeks only to
mako his price higher and higher
to mako profits over costs. Labor,
getting unprecedented wages, in
stead of increasing effort and pro
duction reduces it, trying to got
still higher wages. War, by Its un
wholesome stimulation, undermines
"Our organization suffered along
with tho rest. Wo took n int
8 work Eagle boats, motors, helmets,
E llnnlrn ...! it.) .
u"iur unrigs, urns oponod
up holes in our organization. Wo
needed help, offico and shop, yet in
employing wo could not bo as finely
uiscriminatiiiK as wo wi i. t
poaco times. An immensolv In.
creased overhead expenso was built
up stressed conditions seemed to
compel it. In peace times it would
bo a dead weight utterly useless
Consequently, with tho war over,
we knew that as the country settled
back to peaco conditions some stern
re-adjustments would be necessary.
It must come and wo were on tho
lookout for its beginning.
Beginning of the Storm.
"The first indications came carlv
in VJiO hero and there a business
or manuiacturing failure. They
wero chiefly concerns manufactur
ing luxuries or manufacturers of sta
ple commodities that, had organ
ized .during the war and had not
yet got a footing. People wero ceas
ing to buy; firms of this character
wero first to go to tho wall. Soon
failures became more general. That
meant something to us. It raised a
question: When will the country
curtail or cease buying staple com
moditieswhen will thoy cease buy
ing Ford cars?
"Wo didn't have long to wait. By
Juno sales wero falling off at a
great rate. Evnrvtiiini .on rt
ftjslow down. Yet in tho fact of that,
do you think tho suppliers of raw
materials would cut thoir prlco or,
that labor would glvo more for mv
paralleled wagos? Not for a sec
ond. Material men demanded moro
and labor scorned to givo less and
loss. Cost of manufacturing wont
"It was up to us to do something,
So', in September wo cut tho prico
of tho car. On tho faco of things
tho cut wasn't justified. Wo still
had largo supplies of stock bought
at high prices. The cut brought
tho prico below cost of manufacture.
Ml over tho country wb wero
condemned; other manufacturers
said wo were crazy. But tho
whole country was on an inflated,
distorted basis and wo felt that, if
wo cut tho prico of tho car, wo
could demand that material suppli
ers cut thoir prico to us. That
would tend to stop tho prico-raising
.orgy, other prices would Blump off
and tho readjustment would como
with a minimum of discomfort to ev
To an extent tho cut brought
tho desired result. Sales took a
bound. A fow other manufacturers
cut. But, soon, sales fell off again
and, as a whole, tho artificial condi
tions continued. Wo soon saw that
noro drastic treatment was needed.
"Wo made up our minds that our
next step toward lowering prices
must lie moro powerful and decisive
During the fall ono plant after an
other, the country over, had been
closing down and, as winter sot in,
cessation of industry became general.
But wo kept right on, full
tilt. Sales did not justify our large
production, but wo kept on making
00,000 to 100,000 cars a month be
cause when tho halt came, we
wished to havo as much as possible
of our stock manufactured into
cars. Wo wanted tho next bump,
when it came, to bo ono that no
one 'selling us supplies could fall to
$50,000,000 Per Month.
'Now, to see what happened, you
must understand that our company
buys In tremendous quantities
Ilight now we're buying $50,000,000
worth of materials a month. There
aro hundreds of concerns from
which we take tho major part of
their output. Back of them are
other firms who sell the greater
part of their output to tho sup
pliers from whom we buy. So,
when we pull the switches in tho
Ford plant and stop our machinery,
tho same thing happens in thou-
sands of smaller plants tho country
over. It's Just like when you stand
dominoes closo together in a row
.if you knock ovor tho first ono, tho
whole lino falls. As long as wo kept
on buying, thoso plants would
contlnuo to hold prices up. Somo of
them did cut, but, on tho part of
most of thorn, wo folt, it was only
a bluff to mako it appear that they
had reached tho now low basic
prlco for. peaco times.
"Wo saw that if tho lowering pro
cess was to be hastened at all, wo
must do something drastic. So, lato
in Decemebr, wo closed down, re
solved not to resume production un
til wo could buy materials at
peace-timo prices and, in tho mean
time, to havo a thorough house-
cleaning. Wo thought it would re
quire but two weeks as it turned
out, it required six.
"Now, all this, time a financial
problem had been developing. Back
In 1910 wo had borrowed $70,000,000
on notes with which to buy out all
other interests. Of this wo had
paid back $37,000,000, leaving $33,
000,000 still to pay, and falling duo
April 18. Then, becauso of adjust
ments pending, wo still had the final
instalment of tho 1C'20 federal income
tax to pay, which, with tho install
ment duo April 15. this year
mado $18,000,000 due tho govern
ment. Also, wo intended to pay our
men their usual bonus on last year's
work, which would amount to $7,
000,000 more. So, all in all, -between
Jan. 1 and April 18 wo had
fo meet obligations totaling $58,000,
000. Tells of. Resources.
"What did wo havo to meet this?"
asked the manufacturer of himself,
as he sat up, leaned forward, his
"At that time," ho went on, "wo
had only $20,000,000 in cash. That,
I think, is where tho Wall street
bankers went wrong they couldn't
seo where wo could got $40,000,000
more to meet our obligations. It
was their best bet that wo wouldn't
thoy didn't know our men hero or
the spirit behind our orzanlzation.''
and tho motor manufacturer's
faco overspread with a smile. Faith
and pride in his organization is ono
of Henry Ford's most outstanding
Continued Next Week
Owing .to numerous requests from prominent residents of Kauai, 1 have decided to take a
business trip to your Island and will arrive at Lihue on Sept. 9th.
It is suggested to those who wish to take advantage of my visit and undergo an examination
and, if necessary, have glasses fitted, to communicate with Mr. Lund, in care of the Garden
Island, Phone 22L and he will be glad to call on you personally and make an appointment con
venient to you.
On account of the limited time at my disposal, the following schedule will have to be stridly adhered to
Lihue at Lihue Hotel, September 9 and 10.
Hanalei, at Ah Hoi Store, September 11.
Kilauea, at Kong Lung's Storo, September 12. '
Kapaa and Kealia, at Van Leuvon's Store, September 13 and .li.
Koloa, Kauai Trading Co. Storo, September 15.
Kekaha, September 19.
Lawai, September 1G, forenoon.
Makaweli CluJ House, September 1C, afternoon?
Eleolo, J. I. Silva's Store, September 17,- forenoon.
Hanapepe, Sam Chan Storo, September 17, afternoon.
Waimea, Waimea Hotel, Septombor IS.
y-vl ir? : ... ...
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HONOLULU, T. H.