The Detroit times., 1914-01-24
AUTHORITY ON
ECONOMICS HAS
PRAISE FOR FORD
Roger w. Babson Asserts Auto
King Has Chosen to DO the
christian Thing"
SAYS PROFIT-SHARING
is SOUND PRINCIPLE
Solves Industrial Problem by
Treating Employees as Broth
ers and Heirs"

Roger Ward Babson, publisher o
Moody's Manual OF Railroad and Cor
poration Securities, staustician OF
worldwide reputation. lecturer on
statistics and economics In the Mas
sachusetts Institute o. Technology
praises Henry Ford highly for hi.
proft-sharing plan, in the latest issu,
OF his weekly statistical report.
Under the head. Henry Ford,
Sanity Mr. Babson makes tho fol
lowing signed statement:
While letters are still coming
TO me regarding the impossibility
OF there ever being any such dis
tributiOn OF wealth as | referred
TO in my Twentieth Century
club speech, out comes Henry
Ford with an announcement OF
his intention OF making a practical
application OF this principle. Al
though | realize that IL is at the
risk OF mourning the i'll will OF
many clients, cannot refrain
from suggesting that Mr. Ford's
underlying principle is economic.
ally sound. We may not agree
as to all the details, yet we must
recognize that he Is one OF the
very few men OF large wealth
who has the courage To break
away from his rich associates.
He has grasped the lessons Of
history which We have been con-
tinually emphasizing In these
barometer letters.
Mr.. Ford, az the practical own
er OF the Ford Motor Co, has
made a large amount OF money
and has very profitable bust
ness at the present time. At the
beginning OF this year there were
four possible courses open for
him to follow:
T. He could continue 10 ac-
cumulate millions TO beQueath TO
his family. This, for some In
conceivable reason, would be CON
sidered the proper thing TO do.
2. He could capitalize his prof
its, sell huge issue OF preferred
stock 10 the public and retire
from business. This, from a sell
fish point OF view, would be the
easy thing TO do.
3. He could continue 10 buy
his labor In the cheapest market
and then each year give huge
sums TO charities. This. accord
ing TO present standards, would
be the popular thing to do.
4. He could consider his work
o. ht. 70. 4 s.E..
property directly to them year
by year and, at the same time,
train them 10 take care OF 1t.
This. 10 my mind, would be the
Christian thing 10 do.
Much TO the dislike OF his bus
mess friends and operators o:
local, state and national chart.
ties, and TO the possible displeas-
ure OF some relatives, Henry
Ford has fearlessly chosen this
fourth course. Moreover, both
his family and his employees will
be much better OFF by this radi.
cal and unpopular step II II
were followed by more men OF
wealth. their families also would
be much better off; the politi-
clans could be put out OF bust
ness: all legitimate investments
would be on a much hrmer
basis; and the KY line OF our
composite plot would shoot up
ward at pace never dreamed OF
before.
OF course, our problems will
not be solved simply through Civ
ing people money. The masses
can be helped in the long run
only through some system or
continuation schools In vocation
al training which will develop
producers as well as consumers,
and disposition To serve instead
OF only to acquire. Such sys-
TEN, however, cannot be under
political control or paid for out
OF the ordinary tax levy but
must come through the distribu-
ton of large fortunes, either vol
unfairly, as in the case OF Mr..
Ford, or involuntarily by gradu-
ated inheritance taxes.
Therefore. whether we smile or
frown at Mr.. Ford's so-called
charity, advise that we all
watch the experiment, and II the
opportunity offers, do likewise.
Our problems will not be solved
either by paternal legislation or
charitable foundations" but
only by each one OF us looking
upon our own employees as our
brothers and heirs.
Respectfully submitted.
ROGER W. BABSON.