Newspaper Page Text
Henry Ford Tells How H
Paid His Way Out.
By James Sweinhart.
On a late January afternoon
.winter," a high powered motor,
rolled up to the door of He
Ford's home, in Dearborn, and
stepped a banker, formerly of :
troit, now connected with one of
. biggest banks ,on Broadway.
In answer to his ring the c
swung wide and, a moment' la
; he was shaking hands with the nu
This, banker according to
Ford's associates, was the offi
emissary of a group of wall sta
banking interests, come to offer
manufacturer a loan.
'.'But I do . not need to bon
money," Mr. Ford is reported
have told him. "I can finance,
my company's operations myself
"I think not," the banker cor
dently went on . "We know, y
obligations, we know your cash :
serves and we know you need mon
Now I have written out here a p
by . which we can assist y ot. I wo
like to read it to you."
The manufacturer is reported
have told him his efforts would
a waste of time and breath, but,
he still wished to read his propositi
he might do so-the manufactuj
would do him the courtesy of liste
The reading went on for seve;
minutes, then the banker, suddei
breaking off asked:
"Who's going to be the new trea
ur er of your company?" The fora;
treasurer had recently resigned.
Ford and the Banker.
"That makes no difference to yt
does it?" the" manufacturer a
"Oh yes it does," the banker cai
back. "We'll have to have some s
as to who the new treasurer shall be
That remark closed the intervi?
"I handed him his hat ", says M
Ford, "showed him where the do
was and told him to take his thin,
and get out'right quick. The ne
time I saw Edsel I told him that,
the future he was to be the treasur
as well as president of the Foi
That meeting was the show.do-w
in a situation which, developing f<
months, had been watched with ir
tense interest by industrial Americ
During the previous summer and fa
industry generally, the country ove
had been gradually slowing down.*l
Detroit, plant after plant had close
down or reduced production to
minimum. The number of unimploy
ed was rising steadily. Everywher
trrc^y - ? ss there ' w?s" "talk '?T**?Tr'r*bl?ck<' winter;
Only.1 at the Ford Motor -Go. - produc
;\ tion rushed on unabated. With fu
forces and three shifts a day it wa
the "wonder plant" not only of De
troit but of the whole country. ]
engendered a strong feeling of con
fidence in the community.
Then in September the countr;
was startled and electrified by an
nouncement of a big cut in the prie
of the Ford car. The company an
. ! nounced that it made the cut in,an
ticipation of lowered prices of ra-v
materials in the future, that for ;
time it must manufacture at a loss
but that in the hope of hastening ?
general return to the basic prices o:
peace times, it would take its los:
now-and it charged off to loa
$17,000,000. That is it put a value
of $88,000,000 on stock, raw ant
manufactured, that had cost it $105,.
000,000, and continued full produc,
tion on the new basis.
In the weeks following Ford busi
ness was appreciably stimulated, bul
generally speaking, on both the lo
cal and national basis, the closing
down of industry went steadily on.
N Then suddenly, oyen night it seemed,
sprang up a host of rumors that
even the Ford company was affected.
Vague, intangible reports spread
over the country that, due to the
cut in price and other causes, grave
financial problems now confronted
the Ford company and, shortly, ' it
must close down or go bankrupt or
both. Reports ostensibly emanating
in New York, Chicago, .London and
about every place else except the
South Sea Islands, and always "on
highly credible authority," had it
that Mr. Ford, his back to the wall,
' was making a supreme effort, using
every resource at his command, to
borrow money in every market at
home and abroad-but always in
vain; the end was not to be far off.
And when early in December came
an official announcement that, on
Dec. 23, the great plant at Highland
Park would close down "two weeks
for inventory," in the popular mind,
confirmation was given the rumors
and, with a hundred variations,
there seemed to be sufficient of fact
behind them to get themon the news
wires and thus they were carried to
the ends *of the earth. Even sober,
level-headed, businss men began to
believe that within the Ford organ,
izaation something fundamental was
wrong. Two weeks passed but no re
opening; and then announcement that
. the time of resumption of operations
was "indefinite." Wall Street ch
ored that Ford was "broke" and i
If the plant ever opened up ag
they would be in new hands; 1
"Mr. Ford was ready to retire."
Wall Street Learns.
Just at this junction, according
Mr. Ford's associates, different
Y. banking groups sent represen
tives to Detroit offering loans
different terms. According to
Ford, only one of these represen
tives ever discussed such an ofi
H e was the gentleman who i
shown the door. In 20 minutes Vt
Street found out very d?finit
whether. Mr. Ford needed fu:
Within ten days after that meeti
post cards went out from the off
calling 10,000 men back to their n
chines. Within six weeks . more
plant was again in full operati
Since that time, with production 3
cords smashed almost weekly,
company's increasing sales ?nd pi
duction have become the marvel
the industrial world. On July
4,461 cars were turned out in
single day, total production for Ji
will be close to 109,000 cars-a
still, Mr. Ford says, production is i
What wrought this change?
The answer is in two words
quidation and economy.
Ford did to his business what
man prostrated by over-eating a
?drinking-he administered a ste
regimen of fasting and diet. He sto
ped buying. Then by turning all 1
stock on hand, rough and manufa
tured, into cash and by eliminati
every elentent and unit, throughc
the whole vast organization, that c
not produce, he forced his industi
for a time, te live off its own fi
He met his obligations, not by bo
rowing money* and thus perpetuate
numberless extravagances that h
crept in during the war, but by d
vising new methods of efficiency
buying, in distribution, in admini
tration and accounting and by elir
inating waste. ,;
Tell of the Storm. *
The story of how Henry and E<
sel Ford, with methods long planm
to meet the coming storm, enginee:
ed their industry into a position sui
that there never was a mome:
when it was pressed for ready cai
for its needs, and thus, to the amaz<
ment of Wall Street, "turned tl
corner," is a kind ,of business ai
Out at the plant of the Dearboi
Independent, the other day,. M
Ford |sat, coat 'off, watching a nev<
ending procession, moving along tl
roadway just outside, of mower
hau?e?t by'tr??t?rs, orilth?ir ~way 1
and from the "harvest fields of h
estate. The day was hot. He was re
luctant to talk.
"I'm thinking now of present an
future," he said. "That financin
matter is a thing of the past-let ;
. ''But," some one suggested, "thei
are. other plants, big and Ktth
throughout the country, that to.da
face the same problems you had
they might be benefited by your ex
His* face brightened, then brok
into a smile, as he said:
. "Now you've said something, may
be it would be worth while."
Sf he sent for a lot of records an
data illuminative of what was don
by the company in the ten month
just passed, and with this before hir
"If there's anything in my expe.
rience during the last year that wi]
help anybody, they can have it righ
off. My father used too say to me
'Never buy things until you nee?
them; if you've got anything lyinj
around that you don't need, sell it.
I used to laugh at him-but now ]
know he was right. Then, too, ther<
are ways of meeting financial obli.
g?tions other than borrowing money
Increasing efficiency to gefr de.
creased manufacturing costs, anc
thus turning waste into dollars, that's
one of them. As a general proposi
tion, the time when you need it is a
poor time to 'borrow money-tht
man with the money can demand toe
"Is there any one thing," I asked
Mr. Ford, "to which you can ascribe
your success in mastering all your
problems-^- any basic formula or
principle that I could express in a
Faith, the Solution. .
"Oh, yes there is,"said the manu
facturer, sitting up in his chair,
very much interested now, and point
ing his finger in emphasis. "Yes
there is-you'll find the central idea
of the whole thing in the Bible, in
Hebrews, ll, 1 -Faith. 'Faith is the
evidence of things hoped for- the
evidence of things not seen., Faith
is the thing that makes reality of
what a man hopes for. I had faith
that the country and conditions in
our industrial world right themselves
-- and they are doing it every day."
The manufacturer gazed out of
the window a moment, and then:
"Our difficulties." he went on,
"like those of other great plants,
were a heritage of the war. War is
The New Buick "Four"
the Famed Buick
The "Buick Valve
A Vower "Plant
Thai Has Proved
' ' ' '.r,;-,
i4 Great Car,
Prices Make It An
22-34 Two Passenger Roadster S 935
22-35 Five Passenger Touring - 975
22-36 Three Passenger Coupe - 1475
22-37 Five Passenger Sedan - - 1650
AU Pr?eu F. O. B. Flint, Michigan
Cord Tires Standard Equipment en ail Models
See Us for Sp?cifications and Delivery Dates
The' new Four-Cylinder Buick, here announced,
is a thoroughbred-a pedigreed car well worthy
of its name.
Down to the very last detail, this new model possesses
every quality of enduring serviceability, complete
comfort, and distinctive appearance that have always
characterized Buick automobiles.
The advent of this new Four makes the Buick 1922
line complete. It offers to purchasers of a car of this
size all the quality and service that go to make up
the name "Buick."
The engine, of course, is of the time-testea1 Buick
Valve-in-Head type. The year-after-year concentra
tion of'Buick's engineering skill and experience in
building,Valve-in-Head motors assures the highest
standard of performance obtainable today.
Every other unit is of a quality equal to the power
plant. The whole assembly constitutes a perfectly
balanced chassis which is bf typical Buick construction."
The equipment of Cord Tires is merely evidence of
the quality which characterizes the entire car.
Two open and two closed body types mounted on
the Buick built chassis comprise the new series.
Even the most casual inspection of the details of design '
and workmanship will reveal that full measure of qual
ity which motoristshave learned toassociate with Buick.
Obvious^ a high grade automobile-a genuine Buick
production-the prices listed below make this great
Four even greater. A value such as this is possible
only because of the combination of Buick engineer
ing skill devoted to the one ideal of quality, Buick
production facilities developed over nearly a quarter
of a century, and Buick's nation-wide distribution
and service organization.
The Buick Motor Company is proud of the Buick
Four. It has the faith of long experience in this
newest addition to its line. It places upon it unre
servedly the Buick guarantee carried by every Buick
automobile produced. That its confidence is well
placed is manifested not only by the keen interest
with which motorists have awaited this announce
ment, but also the advance orders placed by distri
butors, dealers, and the general public.
W. J. HATCHER
Johnston, S. C.
WHEN, BATTER AUTOMOBILES ARE BUILT-BUICK WILL BUILD THEM
not only damnable for the lives it
costs, but also for its after effects
on society, on civilization. Every
form of human activity is stimulated
"Drink makes a man's senses
keener-he sees, hears, and feels
things that are not real, but abnor
mal; he bases his actions on thoughts,
ideas" annd impulses that are not
sound. That's just what war does to
business and industry. The banker,
suddenly handling millions where be
fore he handled but thousands, be
comes loose and takes chances which
formally he would have thought un
sound. The manufacturer, faced by
ever rising costs of materials, comes
to take little heed to expenses and
seeks only to make his price higher
and higher to make profits over costs
Labor, getting unprecedented wages,
instead of increasing effort and pro
duction reduces it, trying to get still
higher wages. War, by its unwhole
some stimulation, undermines every.,
"Our organization suffered along
with the rest. We took a lot of war
work-Eagle boats, motors, helmets,
tanks and other things. This opened
up holes in our organization. W<
needed help, office and shop, yet ir
employing we could not be as fin el j
j discriminating as we had been ir
I peace times. An immensely increased
[overhead expense was built up
j stressed conditions seemed to compel
' it. In peace times it would be a dead
weight, utterly useless. Consequent
ly, with the war over, we knew that
as the country settled back to peace
conditions some stern readjustments
would be necessary. It must come
and we were on the lookout for its
The Great Value of Milk to th?
Milk is the best food we have.
.There is no substitute. Save on
other things if you must, but not on
milk. You cannot afford to do with
out it-growing children especially
need milk. Buy n+, least half a pint
sf milk a day foi- each person in the
household. No other food can take
its place. Use it all; do not waste a
drop. Milk looks like a simple fluid,
but really it is very complex. A glass
of milk contains a mixture of all the
important things that maka up a
mixed diet. One can get the same
nourishment from milk as from a
meal made up of meats and eggs,
sugar and cereals, oils and fats, with
salt and water. Milk is good fuel,
because it contains fat and sugar.
The body needs fuel to keep it warm
and to make it move and work and
play, just as the steam engine needs
coal or the automobile needs gasoline.
One quart of milk is about equal in
fuel value to any of the following:
2 pounds salt codfish; 3 pounds fresh
codfish; 4 pounds beets; 5 pounds
turnips; 1/g pound bunter; % pound
wheat flour; % pound cheese; %
pound lean round beef; 2 pounds po
tatoes; 6 pounds spinach; 7 pounds
lettuce; 4 pounds cabbage; 8 eggs.
One ordinary glass of milk is about
equal in fuel value to: 2 large eggs;,
1 large serving of lean meat; 2mod_
erate sized potatoes; 5 tablespoons
of cooked cereal; 3 tablespoons of
boiled rice, or 2 slices of bread.
This is a paragraph from a booklet
on milk which is being distributed
to the readers of the newspapers
carrying che Haskin service. For
years Mr. Haskin has been trying to
get some one to finance the publi
cation of such a book. For no other
reason than to promote education, the
Metropolitan Life Insurance com.
pany has paid the cost of printing
millions of booklets. It hos been
prepared by Dr. Milton J. Rosenau,
the man who is probably the worlds
greatest authority on the subject.
He was formally director of the hy_
genie laboratory of the United States
Public Health Service, and is now.
Professor of Preventive Medicine
and Hygiene at Harvard University.
The booklet can be secured by
sending 2 cents in stamps to Mr.
Haskin, at Washington, D. C.-Au
Hemstreet & Alexander
647 Broad Street
Augusta, Ga. '
Dealers in Guns, Revolvers and
Fishing Tackle. '
Repairing of Fire Arms, Bicycles,.
Key Fitting a Specialty.
? ' i ' i .