The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1916-11-03
FORDSTOCKHOLDERS
WANT PROFITS NOW
Dodge Brothers and Others
Would Restrain Head Of
Plant In Expansion Scheme.

DETROIT. Nov. IA temporary in
junction against Henry Ford to restrain
the Ford Motor Company from dsburs-
Ing and investing as fixed capital assets
and surplus profits that would otherwise
be available for dividends has been Is
sued by Judge Nendell In the Wayne
circuit court.
The PLAINTIFFS, John r. Dodge and
Horace Z. Dodge. stockholders in the
company and also owners of the Dodge
Bgos. motor car plant, want the accu-
mutation OF cash surplus distributed
among stockholders in special dividends.
The cause of the writ. according to
the Dodge complaint, was the declara-
ton by Mr.. Ford at the end Of the last
fiscal year that no special dividends in
the future would be declared by the
company, and that surplus earnings
would be used to extend the business.
Statistics in Bill.
From January. 1914. to October. 1918.
the bill recites. special dividends aggre-
eating s3i.O0O.0O0 were distributed among
stockholders in addition to the regular
monthly dividends OF per cent
Though the earnings of the company
for the year ended July 81, 1916 were
$50. 900 600 the declaration was made, the
bill continues. that no special dividends
would be declared then or In the fu-
ture.
The announced policy OF Mr.. Ford to
engage in a multiplicity Of undertakings
was declared In the bill to put in Jeop-
ardy seriously the interests OF the stock
holders.
"In the face Of increased labor and
material costs and the uncertain condi-
lions that will prevail in the business
world at the termination of the war.
the bill reads. the policy is reckless In
| The bill declares Mr.. Ford Is engaged
In negotiations to invent millions IN iron
| ore mines In the northern peninsula OF
| Michigan or In Minnesota: to build ships
| steel manufacturing plants, thereby de-
priving stockholders OF fair and reason
able returns on their investment
Owns More Than Half of Stock.
Mr.. Ford owns IS per cent OF the
capital stock OF the company. which
gives him control When the articles OF
association were amended in 1908 ant
the authorized capital stock was place.
at 100000. John f. and Horace f
at 500 each. which made their join
holdings one-tenth Of the entire capita
stock.
The Dodge brothers contend tina
though the regular monthly dividend
e per cent. or 90 per cent a year-ar'
large on the 81. O00,O 900 capital stock. tn
dividends amount to only n fraction of
per cent OF thu capital actually invested
when the surplus Is taken into account.
They also allege they have been unable
to make any arrangements to discuss
the plan with Mr.. Ford. They furthe
allege that Mr.. Ford has asserted tina
. since the profits are to be represented
by investment In plants and capital tn
stockholders should have no right &
complain.
One OF the demands OF the bill o
complaint Is that the company distribut
to stockholders at least rs per cent o
\ H. NNaV. a. Us4FaNa
and In future OF all earnings of the com
. pany.
, Another demand Is that a receiver b
, appointed II necessary. The defendant
will be given hearing to show caus
why a permanent writ should not b
granted.