New-York tribune., 1921-03-16
Need for Ford Go.
Financing Removed
By Sales, Belief
Reduced Inventories Relieve
Pressure; Bankers Now
Expect Manufacturer to
Meet Obligations Unaided

Improvement in the status of the
motor car industry since the closing
months of 1920 is believed in i'm
portant Wall Street banking quarters
to have obviated the necessity Of pub
lie financing by the Ford Motor Com
pany.
Bankers, who few weeks ago we're
positive that the Ford Company would
have to raise upwards Of $50, 1000 900 to
meet maturing loans and tax pay
ments, and finance heavy inventories
holding that financing would have to
be undertaken before the middle of
April, took a different view of the
situation yesterday.
Financial men conversant with the
affairs of the Detroit company de-
scribed the improvement in its position
as striking. The comeback in the in
dustry. especially as it has affected the
Ford Company, bankers declared
demonstrated the important fact that
the low-priced automobile has estab-
lished itself as a staple commodity and
can no longer be regarded as a luxury
Regarding specifically the position of
the Ford Company It was learned in
authoritative quarters that:
Inventories have been reduced from
$104, 100000 to $S0, 100000 since the
turn of the year through the sale of
cars and spare parts.
The number of cars at the factory
and in the hands of dealers approx
mates $1,000, whereas last October
when the company's inventories were
at the peak, the number of cars in
the hands of dealers WAS 105 600, while
an additional $4,000 cars were ir
process Of manufacture.
The company is producing cars al
present at the rate of approximate ls
5000 day, compared with a capacity
Of 1000 cars.
According to present plans the
$24,000000 in bank loans of the com
pany held in various parts of the coun-
try will likely be reduced somewhat al
maturity on April 18 and the balance
will be renewed on a favorable basis
The company has obtained permis
sion to defer payment of its first in
stallment of Federal income taxes, due
yesterday, amounting to $1,000, 900
until April Is.
The news that Henry Ford woulc
probably not have to go into the opet
market to borrow to strengthen hi.
cash position excited much comment il
the financial district The financial af
fairs of the Ford Company have re
ceived wide publicity since early in the
year when the nrst reports became cur
rent that bankers were talking with
Mr.. Ford and his son Edsel regarding
possible fotation of securities Thes.
reports brought prompt denial at the
time from Mr.. Ford, and other denial'
have come through since, but the bank
ers have insisted all along that fnanc
ing discussions were taking place ant
would probably result in business be
/ ing done. At one time it was said
Ford Company bond issue Of 100000
900 would be underwritten by Wal
Street banking group, but this figure
was cut later to S50000.00 when il
was said that notes would likely be
sold instead of bonds.
The names Of several Eastern bank
ing groups have been mentioned a
various times in connection with the re
ported financing discussions, and it il
understood that a syndicate headed By
the Boston Trust Company made def
mite offer to Mr.. Ford. At the time il
was said that this and other offers hae
! been turned down by the Detroit cal
builder because the rates were too higl
and other demands Of the bankers were
considered excessive. Bankers have ad
mitted at all times that they were eagel
J to land the Ford financing, not only be
cause it would be profitable but be