The Detroit times., 1916-11-17
FORD CO..
IS BEHIND
ITS ORDERS
Demand for Cars 500,-
900 Ahead of Supply,
Says Official
--F. l.. KLIvoENsNIIH

ciamoring for Ford automobiles fnat
cannot be manufactured and deir
cred with the present facilities ac
cording to +. l. Klingensmith vice
presiden. and treasurer ~ the Ford
company and hat explains Why
Henry Ford wants 10 spend The SIT
plus cash 10 enlarge the factory
This was brought OUT Thursday
morning in the suit brought by
Dodge brothers 10 compel the com
pany 10 disburse the So 200 0e0
rrohts % last year instead of rein
vesting Il in the business
Mr. Rlngensmith said hat rhe
$50 2.0o0.O .OO0 incidentally had already
petered down 10 a mere $4,000 ]0o
Part OF this money WAS spent foT
eeuipment for the proposed In
creased factory and a part o. ii
went ont because expenses exceed
ed earnings during a part ~ The
period that has elapsed since 'he
financial report was made This
was due 10 the fact that fhc chang
ing OF the model 81 the car caused
much smaller production and also
because the plant was closed for
week for inventory During ibis
time thousands Of men were At
work. but they were not producing
cars.
Hearing y Adjourned.
Soon after II O'Clock this morn
ins the case was adjourned until
next Tuesday. when Z G P.pp
editor in-chief of the Detroit News,
pfll take the stand 70 testify
regardin- the publication o, the
Ford annual statement.
Elliot Stevenson. attorney for
Dodge brothers. called for Mr.. Pipp
but Alfred Lucl1ng. Mr. Ford's al.
torney. objected % the case pro-
eeeding because he bad not been
notified that Mr. Pip would b.
called. Nr Stevenson said re-
would serve formal notice of the
calling OF Mr. Tipp and tho case
was adjourned
Testimony by Mr. Klingensmith
was aim, 70 On rely in relation -
the expeYdiure- of the company
Mr. Luctne seeking TO show that
the expenditure were highly neces-
ssry 10 care Tor tho growing bust.
ness and Mr stevenson attempt.
fng 10 prove th1t money OF the con.
eern was being spent recklessly
Mr.. Klingensmith testified that
the company employees 200 design
ers OF machinery and tools al The
time. and aboui 1000 men who 90
nothing Int mabe The tools re
added ,hal the roupany would Ike
10 emplog Al least 1000 more tool
makers. but could not get the men
now. He declared that the com
pany wa aboU' $50 600 cars behind
orders FOR immediate delivery and
at least n half5rillion behind on or.
ders for 1eliver, soon.
The witness testified that Il va-
he policy ~ lha company 10 make
the cars as cheaply as possible 30
that The pser would get the bencf
and the company would prosper by
larger sales even at smaller profits
Company To Build in New YORK
Mr. Lucking questioned The nit
ness closely about me proposal to.
erect a puildin.. in New York n.
timstins that ho thought that
needless expense The witness de-
clared that the company was rent
ing building there nov a. cost
% about ssj.O0D a year ihst ihs
lease woJld expire soon and ha'
proposed 10 erect a l6-story hulc
inr adjoining The Woodward hotei
The Ford company will use thr
lower three aoo~s and lease the
upper &c 10 h. Woodward ho
with the resuli hat the Ford cou
pany will set ent Tec. the r.ntal
from tie hotei being sufic aut so
LAY the whole thinr and show
profit flc also defended the "a, ON
or the ground Aaf 81 the Ford com
pany wanted an any time 10 vscate
the new property he three lower
hoors could bp remodeled. making
complete hoial
The treasurer Fsld that about 8
100000 already had been spent for
equipment for the proposed enlarge
menis MANY - the contracts had
peen ms1r anil decided upon lorg b..
fore tho beginning OF the pres eni
suit aud presumably the whole pol.
icy bad been indcrsed BY the Dodre
brothers since they had made no
protest
In making the slight change n
the hood and radiator of the Ford
machine. Mr.. K'ingensmith testified.
the production 90 tha Ford company
decreased from 10000 the normal
output. to $4,000 month bar that
now Il had set beck 10 10000
month.
Mr. KlingenEmith declared that
the company aimed 10 kce1 a mil
lion dollar unlforin account ln the
Hiehland Park State hahk, s thc
bank furnish@s the concern al the
each for lts lNJ roll and pay two
andls.half per cent interest y
Prohine into the control ~ the
executive committee Of The com.
rany NJ Stevenson asked bow on
en- the committee met
O.