South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-06-24
Henry Ford Tells Why His SIS Day Plan
Has Met Success; Abolition Of Worry
Raises Efficiency, Ledger Shows Gain
A Living Wage Instead of
Charity, is Motto of Manu-
facturer, Who Declares His
Theory Has Worked to the
Benefit of Himself as Well
as Employees.
Copyright. 1914.)
BY OTTO McFEEIEY.

today. from Henry FOrd's own lips,
the story of why he adopted the plan
TO give his employees a minimum wage
of IS day
incidentally the plan has now been
in operation approximately half a
year, and Ford, in positive terms. said
that it is a great success. He an
nounced his intention today to con-
j tinue the IS a day scale in his auto
mobile factories.
| i came here with Judge Neil faith
er of the mothers pension idea, and IL
was during a conference between Neil
and Ford that the latter gave us the
/ story Of the reason for his S5 a day
plan. Briefly, Ford proposed this ex-
pertinent:
Living Wage Versus Charity.
Il believe we should all be pro-
| ducers." said millionaire Ford. "Or-
ganized charity and schools of phil
| anthropy and the whole idea Of Civ
! ing TO the poor are on the wrong
/ track. They don't produce anything.
II railroad had bad piece of track
/ that wrecked cars every day and piled
| them in the ditch = would cure moth
| ing &c merely build q fine repair shop.
/ The track itself should be fixed up.
Charity and philanthropy are the re-
| pair shops and their efficiency, how
ever high, does not remove the cause
/ Of the human wrecks.
'T don't believe in charity" he con-
tinued. 'I don't like the idea. hope
the excuse for organized charity will
] pass away. l am sure there is no rea-
| son why we can't produce enough for
all, If the right methods are used. In
this business we have proved that so
per cent of our people can earn $5 a
day"
why did you decline TO adopt
scientific charity methodist" asked
Judge Neil. How were you convert
ed to the new idea OF $5 a day for la
borers?"
on can't give any man, anything"
was the manufacturers reply. TRY
ing to help men by handing them
something is failure. We don't give
our men anything They earn all
they get Men must achieve what
they have. They cannot get ii any
Can't Utilize Advice.
Charity societies collect 1000 and
spend 5000 in office expenses. Ex-
perts give advice to poor people who
cannot possibly adopt the suggestions
because the suggestions cost money
they haven't got. You may want TO
rlde on the street car but you can't
Charity experts have given rs
lot Of advice, just as expert ANTONIO
Dile manufacturers have given us ad-
vice TO change our methods. We have
no experts in this shop We are me-
chanics and human beings"
HOW can you pay more than twice
the competitive scale Of wages for la
bor?" asked Judge Neil.
In the last six months we have in
of lot
away ahead" Mr.. Ford replied as his
financial manager. r. L. Klingen-
smith, nodded his head as verifcation
or the statement from the standpoint
OF the ledgers.
we are now compelled TO build
new plants to do the work that has
oeen done for us in outside shops"
Then he told OF the great discov-
cry which all manufacturers may
ponder.
Abolition Of Worry.
Our new efficiency is not gained by
speeding up machines and men. It
comes from minds free of most Of the
worry that comes from wages so low
that the worker and his family are
poorly nourished, poorly housed. pur-
sued by loan sharks and fearing that
he may lose his job.
There are no ignorant people.
Every person is smart in one way or
another.
There is a man for every Job and
job for every man. Each man has
his special talent and we have found
the way to have the job suit the man.
interest him and make him happy.
The man also suits the job OH II
is great to realize what powers are in
the weakest Of us
With scientific methods, proper in
structions the right tools and a good
shop, a man with less than half his
wits can earn So a day and only work
eight hours a day.
There are two reasons which I give
Tor low wages. Manufacturers try to
make too many things in the same
shop. No shop is big enough nor it's
nanagement so skillful that more
than one product can be turned out
profitably 10 all hands. Part OF the
waste in producing. a large part. is
due TO this confusion IN production
and distribution. One good thing IS
enough for any shop. I know auto
mobile factories which try to produce
a number Of different kinds of cars
we are capitalized at only 80 600.
900 and make only one commoditv
the Ford automobile.
The Wall st. Way.
The second reason for low wages |
Is the Wall st. way and causes another
great waste. a good shop. producing
a useful and efficient article. is over
capltalzed. a Wall St man. who
knows nothing OF the business. is |
placed on the board. He puts his
friends and relatives on the payroll. |
Incompetency at the head means in
competency below. To pay dividends
and TO make up for wasteful methods.
wages must be kept down and hours
long. This brings more waste.
Workers are worried. harassed. |
tired out and discouraged and they
waste time and material. No man can
do his best unless he Is contented and
sees himself in the way Of progress
ing
Instead OF producing good citizens