New-York tribune., 1919-07-12
Manufacturer and Son Take
Over 80Per Cent of Stock
in Company; $75,O0O,-
900 Loan for the Deal
Dodge Brothers Are Out
Couzens Is Only Minority
Stakeholder to Remain:
Profit Sharing Planned

DETROIT, July 11.-Through reor-
ganzatlon of the Ford Motor Com
pany' now under way, Edsel Ford,
president, and his father, Henry Ford,
Will come into possession of 80 ner
cent of the stock Of the corporation,
according to an announcement made
here to-day by Frank l.. Klineensmith.
v'ce-president and general manager.
=, by the transaction the Fords secure
the, stock held by all minority holders,
including the Dodge brothers, except
one, James Couzens, millionaire Mayor
OF Detroit, who refused to sell his II
per cent Of stock at any price.
The Chase Securities CORPORATION.
the Old Colony Trust Company of Bos-
ton and the commercial paper firm of
Bond Il Goodwin have agred to ad
vance $75,000,000 to aid in acquiring
the holdings of the minority stock
holders. The total purchase price, it
IS understood, is approximately $780,
100000, and the remaining $25,OO0,OO0,
according to report, will be advanced
by Henry Ford
The purchase of the minority hold
llnngs," said the younger Ford, lis for
the purpose of reorganization. AL
though there is not to be any change
in the personnel Of the officers or in
the policy Of the company at this
time"
Mr.. Couzens, who will retain his
holdings ~ the company, left the Ford
organization early in the war because
of Henry Ford's views on preparedness
and pacltism. Up to almost the end of
1915 Mr.. Couzens had been general
manager and treasurer of the Ford
company. He will continue as a d.
rector.
Transaction Surprise
Other than to say that Henry Ford
consented to and approved the pur-
chase Of the minority stock, fficials of
the company denied that he took any
present he has held 5812 per cent of
the company's stock. John F. and Hor-
ace <. Dodge, heads of the Dodge Motor
Company, were the chief minority
holders.
The transaction came as a surprise.
1t marked the entrance of the Ford
company as borrower in the open
market for the first time in it's history.
Acquisition Of the minority holdings
by the controlling interest was taken
to mean that Mr.. Ford does not in
tend to sell out to the General Motors
Corporation, as has been rumored from
time to time.
The loan to the Ford company by
the bankers will run for one year. Ac-
cording to the terms the company
agrees to pay off $10,000,000 at the ex-
piration of the first ninety days and
$2,500,000 each month thereafter. 1t
is stipulated that the payments to be
made in writing down the loan are to
be taken from earnings which, in some
quarters, are now estimated to be run
ming at the rate of $120,000,000 a year.
Banking institutions all over the coun-
try will participate in the loan and the
syndicate will allow commissions of
one-half Of l per cent.
1t will be made possible for en-
ployes to share in the dividends
through the reorganization of the Ford
company, it is said here. Ford is
quoted as saying:
"By making it a cooperative company
we propose to make it possible in the
future to divide the melons that have
in the past been cut with the minority
stockholders"
No New Company
"Of course there will now be no need
Of a new company to build a cheaper
car, as was planned" said Edsel Ford
to-day. owe can sell 4,50O cars a day
of the present make, and have 10000
untitled orders on our books. Plans for
the next fiscal year, beginning August
], calls for largely increased pro-
duction. 1t is probable that some of
our plants which are now being used
for assembling will be equipped to do
some of the manufacturing"