Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-11-03
.A(I FORD P[An 70
4 invest I J! Earnings
DODGE sRorHERs, srockHoLD-
ERs IN FORD AUTO FIRM. Sc
CURE COURT INJUNCTION.
ACCUSE DETROIT MAN
OF WILD SPECULATION
Ford's Proposal 70 Invest Auto COM
pany's Millions Of Surplus in Mines,
Steamships and Other Schemes
Threaten Bankruptcy Of Auto Con-
corn.

DeLrO1t, MICH, NOV. S.--JOHn +. dLit
Horace Dodge automobile manufact-
1rers and stockholders dn the Ford
Motor Company. obtained temporary
injunction in the circuit court here
yesterday afternoon restraining Henry
Ford from using the assets Of the Ford
Motor Company to extend the business
as planned, instead of distributing
profits in dividends.
The cause of the writ, according TO
the Dodge bill Of complaint, was the
declaration by Mr. Ford at the end OF
the last fiscal year that no special divi-
dends would In the future be declared
by the company. and that surplus
earnings would be used to extend the
business.
No Spseial Dividends.
= From January, 1914, to October, 1915.
the bill recites special dividends ag-
gregating $34.000,O00 were distributed
among the stockholders, in addition to
the regular monthly dividends OF s per
cent. Tho the earnings Of the COM
pany for the year ending July 81, 1916.
were s60,0O0,0 900 the declaration was
made. the bill continues. that no spe-
cial dividends would be declared then
or at any time in the future.
The announced policy Of Mr.. Ford 20
engage in a multiplicity OF. undertake
ines was declared in the bfll to be
reckless in the extreme and to jeop-
ardizs seriously the interest OF Ae
stockholders.
'In the face of increased labor and
material costs and the uncertain con-
dttions that will prevail In the business
world at the termination Of the war"
the bill reads, "fhe policy Is reckless
in the extreme"
Plans Mine Investments.
The bill declares Mr.. Ford = engaged
in negotiations to invest millions In
iron ore mines IN the northern PENN
sula Of Michigan or in Minnesota, 70
build ships transporting orc to the
smelters on River Rouge. and to build
steel manufacturing plants. thereby
depriving stockholders of fair and rea-
sona;ble return upon their investments.
Mr.. Ford owns So per cont Of the
capital stock OF tho company, which
gives him control When the articles
Of association were amended IN 1905
and the authorized capital stock placed
at s2,0o0,00o. John r. and Horace T.
Dodge each had 1000 shares, par value
at 800 each, which made their Joint
holding one-tenth Of the entire capital
stock.
Ford Denies Conference.
The Dodge brothers contend that,
tho the regular monthly dividends-6
per cent, or 90 per cent a year-are
large on the @2,oOe,ooo CAPITAL stock
the dividends amount TO only frac-
ton Of per cent Of the capital a,ctual-
ly invested when tho surplus - taken
into account.
They also allege thsy havs BEEN ua-
able TO make any arrangements 20 dis
cuss the plan with Mr.. Ford They
further allege that Mr. Ford has a..
serted that, since the profits are to be
represented by investment IN PLANTS
and capital. the stockholders should
have no right to complain.
One Of the demands Of the bill Of
complaint Is that the company distrib-
ute to stockholders at least rs per cent
OF the accumulation Of the cash sur
plus and in future all earnings OF the
company Another demand IL that q
receiver be appointed II necessary.