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THE GARDEN ISLAND, TUESDAY, SEPTEMBER 13, 1921
Henry Ford Tells How
He Paid His Way Out
Continued from lut week
"Wall street was all stirred up
over the misinformation that we
had to make a" loan," Mr. Ford con
tinued. , "The fact was, we didn't
need a nickel. That's where the
0 faith comes In. Spread over the
country we had Immense quantities
of raw materials, parts and finished
cars and I had faith I knew that
our organization could turn them
Into more than enough cash to meet
our needs.
"I'll show you what we did," said
Mr. Ford, turning to the desk and
pushing across pencil and paper.
"Put down, cash on hand $20,000,
0 000. We wished as usual, to pay
a bonus to our men on last year's
work.
"This would take approximately
$7,000,000 which we wished to pay
as soon after Jan. 1st as clerks could
make out the checks. That was our
only Immediate outlay we had al
most enough cash to pay it three
times over.
. "Then we turned our attention
to liquidation. When we closed
down, we had on hand approxi
mately 93,000 finished cars, At
Highland Park we had been ship
ping out cars and parts to dealers
and branches as fast as they were
finished. - This plant was cleared of
materials. Every department closed
down. But we have 35 branches
scattered over the country, at 22
of which we both manufacture pr.rts
and assemble. At these the manu
facturing of parts stopped but the
. assembling of finished parts went
on adding, week after week,
through January, to our finished
.cars. That was why, during Jan
uary, there was a Ford car famine
in Detroit and to fill local orders
we were driving cars here from
Chicago and Columbus, Ohio.
Hit First Move.
"Our first move was to sell some
of our cars on hand. In our con
tracts with dealers, they agree to
take a' certain quota each year,
each according to his district. We
shipped to each dealer enough cars
to take care of approximately 25
days' sales. During January we
sold nearly 60,000 cars, which
0 showed us what we could do when
we tried and, from then on, sales
steadily mounted above production.
Assembling went on at all the
branches and, ' on Jan. 23, we re
opened the Highland Park plant
and began building up production
there, but still sales kept ahead of
pfoduction. Between Jan. 1 and
April 1 we turned $24,000,000 worth
of stock into cash put that down.
"Then we looked over our foreign
accounts and found our agents at
foreign ports owed us $3,000,000
which we collected. We had also
sold by-products for which we had
accounts receivable of $3,700,000
more, which we got In put down
i
: --7-7
c
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It I s 4 s t i m
r
FIFTEEN YEARS EXPERIENCE IN
v V.v;
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thc3e two Items. On top of that we
sold $7,800,000 , worth of liberty
bonds. If you total those you'll
find they come to $59,300,000 more
thnn enough to meet our impending
obligations. But we did not stop
here.
"The war hal led us Into many
extravagances. We went through
the plant, offices and ; shops, and
made economies which I'll detail
later, eliminating everything non
productive. Then, we had acquired
the Detroit, Toledo & -Irontown rail
road. We saw possibilities of re
ducing the vast amount which we
had formerly kept tied up, Invested
In goods In transit. We found
ways to cut the time our goods are
in transit. By that move we re
leased $28,000,000, , took It from
funds Invested In stock In transit
and put it to other uses. Thus,
when April 1 came round, we had
$87,300,000 to, moet $58,000,000 ob
ligations. We paid them weeks In
advance."
Mr. Ford leaned back In his chair
and laughed.
"And all the while," he said
these New York bankers were fuss
ing around here trying to get us to
take a loan." '
"But how could you create Buch
Immense sums of ready cash by
mere economies?" I asked.
Call This "Mere."
"Mere economies," Mr. Ford re
peated, with ... emphasis on the
'mere.' "There's nothing 'mere' a
bout bur economies they're the
big thing. Take that item of $28,
000,000 released from Investment in
goods In transit. We were able to
do that by a combination of two
things. By using our railroads we
were able to speed up movement of
raw materials to the factory, move
ment of finished cars from the fac
tory to the dealers and better meth
ods in the factory cut the time
needed to manufacture the mater
ial into machines. Then we
stopped carrying immense reserves
supplies of raw materials. The
first economy made the second pos
sible. Here's the way we worked it
out:
"Before we got control of the
D. T. & L., it required an average
of 22 days to haul raw material to
the factories, make it into cars and
get them to the dealers. We had to
buy three weeks in advance of need
and, with no way of knowing fu
ture conditions we had to keep im
mense reserves on hand. The mon
ey tied up in these and the goods
moving stood continuously at about
$88,000,000.
"But the early months of 1921
brought great changes. General
cessation of industry made materi
als, and cars in which to carry
them, plentiful. Then the D. T.
& I. is really one great terminal.
It crosses every transcontinental
line in the country. When stock
consigned to us reaches the D. T.
& I. it can be speeded along to des
tination. Parts, or cars, outbound,
can be made into through trains and
thus the running time to destina
4 ix 4&3.N&N -5iS.
Your Responsibility
Will Outlive You
The burden of a man's responsibility for tlie welfare of those
dependent upon liini cannot be laid down even at his death.
To provide for a careful and wise administration of your af
fairs aftei death, you must put your house in order now.'
The way to do this is to make a will in which you can name
this company as your executor and trustee. Our experience?
did facilities will assure a wise distribution or management
of your worldly possessions.
924 Bethel
tion greatly reduced. Then, in the
offices of the D. T. & I. they did
away with a deal of antiquated rail
road red tape. Whole systems of
useless accounting were abolished.
The offices themselves have been
brought to Detroit and the road Is
operated as a single unit. All these
elements, combined, have reduced
the time -of our movement of stock
from the suppliers of raw material
though the factory and the cars
into the hands of the dealers from
22 to 14 days. And that isn't the
end we'll cut it still more. Where
before, we had $88,000,000 tied up
in moving and reserve Btock re
quired to make 93,000 cars a month
now we handle the stock required
to make 114,210 cars a month for
less than $60,000,000; $28,000,000
goes Into the cash account to be used
goes Into cash account to be used
for other purposes as paying debts,
for example," and Mr. Ford's in
tense expression gave place to a
smile.
Another Angle to it.
"But there's another angle to that.
Able to get stock so much
more rapidly we do not have to
keep so much on hand. Operating
on a narrow margin we have to
keep very close account of stock,
and, to meet this need we have
completely changed our system of
purchasing and accounting. For
merly we bought in vast bulk lots,
using up stock as we needed It. But
that we would . not do under our
changed conditions. We have
worked out a new system which I
believe, Is not duplicated anywhere,
There are 8,000 parts to the Ford
car. Each one of those parts is
given a number symbol. Once each
month we make a schedule of the
exact number of cars we will make
the next month. Then we figure
out the exact amount of stock need
ed to make just the number of parts
to fill that schedule and buy that
amount of stock and no more.
"We're following my father's ad
vice and not loading up with things
we don't need.
"Office and shops also came in
for a houe-cleaning. We went
through the offices and cut out hun
dreds of jobs created during the
handling of war work. We liter
ally took out a trainload of desks
and furniture and sold them. We
told the men that occupied those
desks, that back in the shops were
plenty of good Jobs at good pay
if they wanted to take them. Most
of them did. We cut the office
forces from 1,074 to 528 persons.
Telephone extensions were cut to
about 60 per cent. Interesting,
but useless systems of statistics
were abolished as well as the forms
made necessary by them.
"We went through the shops in
the same way. During the war
production we had a foreman for
about every three to five men. Too
many foremen sat at desks all day
long looking on. We've sold all the
desks and most of the former fore
men are now at machines. We now
have a' foreman to about every 20
Bishop Trust Co., Ltd.
Street
Tel. 6177
SETTLING AND MANAGING ESTATES
men. Everything and everybody that
was not producing was put In a po
sition where they would produce or
were eliminated.
Costs Compared.
"A comparison of our operating
costs before and after the house
cleaning Is really a startling lesson
in what manufacturers can do if
they look sharp for economy. Big
plant or little plant the same thing
can be done and the same methods
will win every time. Back In No
vember, 1920, before the houseclean
lng, oiir daily expense for labor and
commercial overhead charges, cost
of materials not included, averaged
$463,200, to get an average of 3,
146 car a day, or $146 a car. Look
what we did in June 1921 $412,500
a day to produce an average of
4,392 cars a day or $93 a car. What
do you mean by talking about 'mere'
economy?'" and the manufacturer
beamed all over.
"And the men helped a whole
lot," said Mr. Ford. "They respond
ed to right treatment. We used to
have to employ 15 men per car per
day; now it requires but nine. Look
at the saving on the payroll."
The motor man again gazed out
the window at the procession of ag
ricultural implements and across the
pond beyond. If he had any worries
his face didn't show it.
"How about' the future?'' I asked
him.
"It looks to me," he said, "that
we're at the beginning of a long per
iod of prosperity."
INTERNATIONAL DIET
Two Tommies turned punsters
ent into a restaurant over on the
eastern front and said to the waiter,
"We want turkey with grease."
The waiter replied, "Sorry, sirs,
but we can't Servla."
"Well, then, get the Bosphorus."
The boss came In and heard their
order, then said, "I don't want to
Russia, but you can't Roumania. So
the two Tommies went away Hun
gary. Commerce and Finance.
t Dr. T. L. Morgan
OSTEOPATHIC PHYSICIAN
Office on Wm. Hyde Rice Promises
Phones: 74-L; 122 L
JEWELERS
Everything tn th
Silver and Gold Line,
Rich Cut Glass and
Art Good
Merchandise of the
Best Quality Only.
H.F.WICHMAN&Co.,Ltd.
Leading Jewelers.
P. O. Box 342 Honolulu
!Hr III
Iff ll
I . if J
r
NOTICE OF SALE OF
GOVERNMENT LEASE
At 1:30 o'clock P. M., Monday,
October 10, 1921, at the office of
the Sub Land-agent, Mr. O. W.
Sahr, Llhue, Kauai, there will- be
sold at Public Auction to the high
est bidders, under Section 380 of
the Revised Laws of Hawaii of 1916,
General Leases covering the follow
ing described Government land:
1. Lot No 25,lHukiapepe Rice and Ku
la Lots, Hanapepe, Walmea, Kona, Ka
uai, containing an area of 4.30 acres,
more cr less; term of lease, 10 years
from October 10, 1921; upset rental,
$80.00 per- annum, payable semi-annually
in advance.
2. Lot No. 37, Hanapepe Rice and
Kula Lets, Hanapepe, Walmea, Kona,
Kauai, containing an area of 8.70
acres, more or less; term of lease,
10 years from October 10, 1921; up
set rental, $87.00 per annum, pay
able semi-annually in advance.
3. Lot No. 53, Hanapepe Town
Lots, Hanapepe, Wuiinea, Kona, Ka
uai, containing an area of 13,658
square feet, more or less; terin of
lease, 10 years from October 10,
11-21; upset rental, $100.00 per an
num, payable semi-annually in ad
vance. 4. Lot No. 60, Hanapepe Town
Lots, Hanapepe, Walmea, Kona, Ka
uai, containing an area of 10,393
square feet, more or less; term of
lease, 10 years from October 10,
1921; upset rental, $100.00 per an
num, payable semi-annually in ad
vance. 5. Lot No. 69, Hanapepe Town
Lots, Hanapepe, Wainiea, Kona, Ka
uai, containing an area of 15,530
square feet, more or less; term of
lease, 10 years from October, 1921;
upset rental, $100.00 per annum,
num, payable semi-annually in ad
vance. 6. Lot No. 73, Hanapepe Town
Lots, Hanapepe, Walmea, Kona, Ka-
ual, containing an area of 25,302
square feet, more or less; term of
lease, 10 years from October 10,
1921; upset rental, $150.00 per an
payable semi-annually In advance.
7. Lot No. 79, Government Rem
nant, Hi of NiuUi. Waimea, Valley,
Waimea, Kona, Kauai containing
an area of 1.14 acres, more or less;
term of lease, 15 years from Octo
ber 10, 1921; upset rental, $20.00 per
annum, payable semi-annually in ad
vance. 8. Lot No. 80, Government Rem
nant, 111 of Nania, Waimea Valley,
Waimea, Kona, Kauai, containing an
area of 10,860 square feet, more or
less; term of lease, 15 years from
October 10, 1921; upset rental, $60.00
per annum, payable semi-annually in
advance.
9. Lot. No. 81, Government Rem
nant, 111 of Nania, Waimea Valley,
Wainiea, Kona, Kauai, containing an
area of 10,987 square feet, more or
less; term of lease, 10 years from
October 10, 1921; upset rental, $15.
00 per annum, payable semi-annually
in advance.
'The purchasers to pay the first
six months' rental bid, at the drop
of the hammer.
The purchasers to pay the costs
of advertising and other charges in
connection with the preparation of
these leases.
The sale of the above General
Leases is subject to the terms of
Government General Lease issued
by the office of the Commissioner
pt Public Lands.
For maps, form of General Lease
and other particulars, apply at the
office of the Sub Land-agent, Mr.
G. W. Sahr, Lihue, Kauai, or at the
office of the Commissioner of Pub
lic Lands, Capitol Building, Hono
lulu, T. H.
C. T. BAILEY.
Commissioner of Public Lands.
Dated at Honolulu, September 1,
1921. (Sept.6-13 27-Oct.4-1921)
NOTICE OF SALE OF
GOVERNMENT LEASE
At 10 o'clock A. M., Tuesday, Oc
tober 11, 1921, at the office of the
Sub Land Agent, Mr. G. W. Sahr,
Lihue, Kauai, there will be sold at
Public Auction to the highest bid
ders, under Section 380 of the Re
vised Laws of Hawaii of 1915, Gen
eral Leases covering the following
described Government lands:
1. Lots 4, 50 and 52, Kapaa
Homesteads, 1st Series, Kapaa, Puna,
Kauai, containing an area of 4.90
acres, more or less; term of lease,
10 years from October 11, 1921; up
set rental, $60.00 per annum, pay
able semi-annually in advance.
2. Lot 3, Kapaa Rice and Kula
Lots, Kapaa, Puna, Kauai, contain
ing an area of 26.28 acres, more or
less; term of lease, 10 years from
October 11, 1921; upset rental $240.
00 per annum, payable semi-annually
in advance.
3. Lot 2-A, Kapaa Rice and Kula
Lots, Kapaa, Puna, Kauai, contain
ing an area of 30.87 acres more or
less; term of lease, 6 years from
October 11, 1921; upset rental, $365.
00 per Minuin, payable semi-annually
in advance.
4. Lot 211, Kapaa Rice and Kula
7,ots, Kapaa, Puna, Kauai, contain
ing an area of 55 acres, more or less;
term of lease, 5 years from October
II, 1921 upset rental, $560.00 per an
mm, payable semi-annually In ad
ance. 5. Lots 32-A, 33-A, 34-A, 35-A, 38
and 40, Kapaa Homesteads, 1st ser
ies, Kapaa, Puna, Kauai; containing
an area of 4.75 acres,: more or less;
term of lease, 10 years from July 3,
1922; upset rental, $86.00 per annum,
iiayable semi-annually in advance.
6. Lots 30-A, 31-A, 31 and 32,
ivapaa Homesteads, 1st Series, Ka
paa, Puna, Kauai, containing an ar
a of 8.30 acres, more or less; term
of lease, 10 years from July 3, 1922;
upset rental, $125.00 per annum,
payable semi-annually In advance.
7. Lot 33, Kapaa Homesteads, 1st
.lories, Kapaa, Puna, Kauai; contain
ing an area of 9.50 acres, more or
less; term of lease, 10 years from
July 3, 1922; upset rental, $142.50
:er annum, payable semi-annually in
advance.
8. Lot 35. Kapaa Homesteads, 1st
Series, Kapaa, Puna, Kauai, contain
ing an area of 4.15 acres, more or
less; term of lease, 10 years from
July 3, 1922; upset rental, $75.00 per
i-nnum, payable semi-annually in ad
vance. 9. Lot 36, Kapaa Homesteads, 1st
Series, Kapaa, Puna, Kauai, contain
ing an area of 4.30 acres, more or
less; term of lease, 10 years from
July 3, 1922; upset rental, $75.00
per annum, payable semi-annually in
r.dvance.
10. Lot 37, Kapaa Homesteads, 1st
fjerloB, Kapaa, Puna, Kauai, contain
ing an area of 5 acres, more or less;
t3rm of lease, 10 years from July 3,
1922; upset rental, $90.00 per an
t urn; payable semi-annually in ad
vance. The purchasers to pay the first
six months' rental bid, it the dvop
ct the hammer.
The purchasers to pay the costs
of advertising and other charges in
connection with the preparation of
theso leases.
The sale of the above General
Leases is subject to the terms of
Government General Lease issued by
the office of the Commissioner of
Public Lands.
For maps, form of General Lease
and other particulars, apply at the
office of the Sub Land-agont, Mr. G.
W. Sahr, Llhue, Kauai, or at the
office of the Commissioner of Pub
lic Lands, Capitol Building, Hono
lulu, T. H.
C. T. BAILEY.
Commissioner of Public Lands.
Dated at Honolulu, September 1,
(Sept.6-13-27-Oct.4-1921)
IN THE CIRCUIT COURT OF THE
FIFTH DISTRICT,
TERRITORY OF HAWAII
At Chambers In Probate, No B.769A
In the Matter of the Estate of
JOSEPH KENDALL FARLEY, De
ceased. NOTICE OF PETITION FOR AL
LOWANCE OF ACCOUNTS, DETER
MINATION OF TRUST AND DIS
TRIBUTION OF THE ESTATE.
The Petition and Accounts of Wil
liam O. Smith, Executor of the Will
of Joseph Kendall Farley, 'Deceased,
having been filed In this Court,
wherein petitioner asks to be allow
ed, $2,867.92 and charged ' with $7,
268.68, and asks that the , same be
examined and approved, and, that a
final order be made of distribution
of the remaining property.' to the
persons thereto entitled, and dis
charging petitioner and sureties from
all further responsibility herein.
It is ordered, that Wednesday, the
19th day of October, A. D. 1921, at
9:30 o'clock A. M., before the Judge
presiding at Chambers of said Court
at his Court Room at Lihue, Island
of Kauai, be and the same hereby
is appointed the time and place for
hearing said Petition and Accounts,
and that all persons interested may
then and there appear and show
cause, if any they have, why the same
should not be granted, and may
present evidence as to who are en
titled to the said property. .
Dated the 2nd day of September,
1921.
(Seal) BY THE COURT:
(S) J. C. CULLEN,
Clerk.
(S) SMITH, WARREN
STANLEY,
Attorneys for Executor.
(Sept.-13 20-27-Oct.-4.)
ANNOUNCEMENT
Dr. R. H. Hagood, of Kealla, Ka
uai, wishes to announce that he is
now equipped to attend to diseases
of the eye, ear, nose and throat.
Office hours from 1:00 to 3:00 p.
m., and by appointment. Adv.
REAL ESTATE FOR SALE
12 1-4 acre lots for sale at Kalaheo.
Good location, surrounded by maca
dam roads. Both Kukuiolonj and
new school road. Apply J. C.
Jerves, Kaluheo, Kauai. 2t.
