Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-07-11
T. B. FORD TEST|F|ES
FOR FATHER,|N SUIT
Witness in Libel Proceedings
Questioned Regarding Motor
Company's Profits.
By the Associated Press.

MOUNT CLEMENS. Mich. July IL
Edsel B. Ford, president. of the Ford
Motor Company, resumed his testi-
mony this morning in the libel suit
brought by his father, Henry Ford.
against the Chicago Daily Tribune
The elder Ford was in court, ready
to follow him on the stand.
The examination was by Attorney
Elliot G. Stevenson. The guarantee
of S. a day minimum wage was put
in effect on January IL, Ella. witness
testified, and the net profits that year
were approximately $4,000, zoe.
Mr.. Stevenson, pursuing his theory
that the wage was something that the
employees amply earned. and should
not be called profit sharing" ad,
more than doubled and net profits
were approximately $6o.oo0o0o. This
doubling of profits. Mr.. Stevenson
pointed out, resulted in no change
In the incomes of employees, and
hence. he said. 1.-The term profit shar-
ing" was a misnomer.
Attorney Alfred Lucking of coun-
sci for Ford objected to any further
investigation into the private af-
fairs Of the corporation"
Minimum Wage Adopted.
On cross-examination the witness
said there was a surplus of. labor in
1914 at the wage scale prevailing,
notwithstandins which Thesis mini
mum was put in effect.
It was Henry Ford's policy to; keep
profits at SIS. 100000 a year. Edsel
Ford said, and to this end it was the
custom to cut the price of cars each
year. In 1916, however. it was DEEM
ed advisable to build blast furnaces
and expand otherwise. The price was
not cut that year. and the big profits
resulted and are now being FUSED as
originally contemplated.
One year the cut was $50 ION the
touring car model. with other models
reduced proportionately, the witness
said
Attorney Luckiag pointed out that
this was q voluntary REIMBURSEMENT of
$s4.000.000 Of profits which might
have been legitimately accepted.
Attorney Stevenson challenged the
statement.
Deals With Finances.
Mr.. Ford's testimony yesterday dealt
mainly with a financial statement of
the Ford Motor Company. which was
put into the record over objections of
counsel for the plaintiff.
Witness said that at first he was
secretary Of the company. then vice
president and director. and on De-
cember 81, 1918. he succeeded his
father as president.
His testimony showed that in 1903 the
Ford company started with $50, 600 in
cash and Henry Ford's model of cheap
A $4,000 corporation was
founded, Mr. Ford holding 81 per cent of
the stock. In 1914 the financial state
ment showed the net profits were $780,
33S, 454.
Statement Rated "Irrelevant."
Attorney Lucking objected to discus
sion Of the financial statement as irrele-
want and Mr.. Stevenson replied:
''They have been making great deal
Of their so-called educational or socio-
logical program, and the division of
profits. My purpose is to- show that on
$50, 900. the actual capital invested, the
company earned $50. 900, 900 In 1914, and
that therefore to call what they give en-
ployes profit sharing is mare humbug."
Mr.. Lucking entered another objection,
stating that plaintiff was willing to ad-
init prosperity.
''Opposing counsel has said that there
we're plenty of profits. Well. what Of
it?'' said Mr.. Lucking. 1.-THE profit
sharing plan Of 1914 practically doubled
the incomes Of employees. Mr.. Ford gave
more than the Tribune ever gave, or
example to the world