Omaha daily bee., 1921-07-19
Ford Co. Assets
Increase In Year
OF Depression
100000 Greater April,
1921, Than April, 1920;
Firm Did Not Borrow Cent
To Meet Obligations.
BY HOLLAND.

BY HOLLAND.
Four or five years ago group
of sales agents for the Henry Ford
company met one of the leaders in
transportation, both railroad and
steamship. and he said to them that
he wondered why Mr.. Ford did not
equip his new cars with the self
starter and self-lighter. Every other
manufacturer of automobiles was
(in that way) equipping his cars
He was told that he overlooked
I one point. The cost entailed ly
equlpping his cars with self-starters
and self-lighters was about SIS a
car. That of course would be added
to, the market price of car. 1t
would be serious obstacle at that
time in the selling of car. Those
who were looking for low-priced
cars would be likely to abandon their
purpose if they found the cars cost
$/S more than was expected.
Conditions Change.
Since then conditions have changed.
The public insists upon this equipment
and as the cost OF tho manufacture Of
the Ford has decreased 1t was possible
the self starter and selt-lighter entailed.
The Incident, however illustrates some Of
the methods which, having been adopted
by Mr.. Ford. have made 1t possible to
Ford Motor company were $4,000, 900
greater on April 80 OF this year than upon
April 80 OF q year ago. In other words.
Ss
so enlarged its business that 1t Is able to
report what perhaps no other industry in
X the United States found It possible to do,
namely an increase in its assets by many
millions. p ~ 49,
Today the Ford, assets, would I'm fact,
show an increase over last year OF more
than $50, ,000, 900 If It were possible for the
company to meet the demand for its cars.
Mr.. Ford has worked out a business prob
lem in manner which compares, from
one point of view, with the original propo
: and. which was the construction of a
satisfactory automobile whose price was
50 low that hundreds, OF thousands would
be able to buy It,
Unnecessary to Borrow.
Probably 1t will pass to tradition that
sumed that 1t was inevitable that Mr..
Ford call upon them for aid In financing
his obligations, amounting to many mil
lions, he through the utilization Of his
own resources and his command of a
market for his ears, was able to finance
these obligations without borrowing a
penny.
pany, is not = seller at retail Of his
product. He is a great salesman. but he |
sells only to the sales agent. He does
mot trust any, Of ,themt not because ne IS
suspicious. but because his policy is cash
policy. His only relation with the sales
agent is represented by the signing of q !
contract to deliver to each agent SO many
cars in a specified time. When these cars
are delivered there accompanies, with the
r bill draft which the agent instantly
meets In cash. In thatsway cash in large
amounts In daily received, by the Ford
company. When he was somewhat per
picked a few months ago because OF MS
obligations 1t occurred TO him that he had
caused to be accumulated very large
amount Of automobile parts He looked
kupon this accumulation as an asset that I
would be made of Instant avail He, as
sembled the parts rapidly and secured un.
usual efficiency from his empioyes. -
that way he was able to manufacture
considerably over 1000 cars day ana
every one Of these cars Represented Ia
slant cash as soon as the safes agent assnSs,fg
cefved ii. The saiesy agents had no 1dlrH,
Guilty In making payments. the oemanu
for the cars was greater than the supply
and It frequently happened that sales
= ssionrsr time than a day Or two after he
HAD paid the company for HIS '~St Il
=. Henry Ford As Leader. =
- or course the basis of Mr.. Fords
success is to be found in the demand
which he created. fer an aqeomonue modsrate |
price. He was gifted therefore with two
Of the qualifications. which are some
times spoken of as essential, II a. man ls
fully succeeded in constructive work along ing
new lines. as to be esteemed among tne
really great leaders. For MT. Ford IN
the first place possessed. imaginatlon
which enabled him to. picture, an enormous
second second place he possessed constructive I
ability and Imagination supplemented py
constructive ability has achieved the n very very
he, looking towards the west over vast
uninhabited areas, saw in his minds eye 4
q railroad stretching from the Great
ton combined with constructive ability
which brought his now traditional trl-
umphs to e. H. Hartman 1t was lmas
ination supplemented by s,IS;.m constructive m
develop a bank whose deposits We're mo
less than $40, ,000, 600 into the greatest
Of American banks and one OF the great
est in the world. y .h9
Reflect Other Triumphs.
Mr.. Ford has undoubtedly impaired his
reputation by certain romantic or curio-
ously idealistic views, but these seem
never to have interefered with the growth OF
an ,inlustry which, representing chieiiy I
asssts of a little over sa45, 900, 900, s2s,-
900, ,0oo Of this having been gained IN tne
Ia months from April so, 1920. to April
80, 1921. a Il -,
Probably the triumphs gained by Mr..
Ford in the past IL months reflect other
triumphs not so great in. the money as
pect Of them, but still very great, which
the automobile industry Of the United
States is to gain in the present calendar
year. Then too, there is to be taken into
consideration the upkeep Of these ma
chimes. About 10 years ago George
WESTINGHOUSE caused an estimate to be
made by experts which would show the
upkeep cost of automobiles for single
year. They reported that It was not far
lfrom $40o, 900, 900. But as the manufact-
ture and use Of automobiles have greatly
Increased since that time II Is regarded as
reasonable to estimate the upkeep cost of
cars at this time. not far from s1,Ooo,-
900, 600.
The government is the gamer, for one
of the largest of that single item In Its
tax returns reflects the payment OF taxes
by automobile manufacturers. As for In
stance Mr.. Ford has reserved for federal
and local taxes nearly $50,000,Q00.
New York Coffee.