New-York tribune., 1921-07-24
Bankers Insist
4 ord w a,1lted
Big ity Loan Here
Wall Street Mem AresSilent,
However, ON Ma1Kufactllr-
er's Assertion HesShOwed
a Fir1ancicr the Door
Acted at Right Moment
Detroit Wizard Won, They
Say, Because of Sudden
Big Demand for Cars

Henry Ford's recital of how he
turned down last spring an offer by
Wall Street banking group to lend him
approximately $75,ooo,ooo and.paid OBJ
legations of more than $60,000,000
weeks before they were due brought
forth no official comment yesterday
from the bankers who werewinterested
in the earlier negotiations. Privately,
however, statements we're repeated
that, despite Mr.. Ford's denials, the
famous automobile builder was in the
market for funds soon after the first
of the year and that for time it
seemed certain that he would be forced
to do some public financing in order to
meet maturing notes and government
taxes.
Mr.. Ford escaped from his financial
dilemma. according to Wall Stret in
formation, by turning over to Ford
dealers throughout the country his
huge stock of cars on hand and draw
ing drafts against them, thus putting
himself in possession of funds i'm
mediately needed. 1t also was reported
that Mr.. Ford conserved his cash re-
sources by delaying payments to max
ers of parts from whom he had been a
heavy purchaser.
In this way, it was pointed out, the
wizard of Dearborn avoided the neces-
sity of floating loan.
Acted at Right Moment
Whether or not he sensed there was
about to spring up demand for his
product at time when most sorely
needed is aside from the question.
|, The facts are that Mr.. Ford acted at
the psychological moment, for it was
not long before dealers stocks were
| being depleted at rapid rate and the
Ford factories were again running on
full time.
1t was about the middle of March
thxt Wall Street bankers were con-
vinced that Mr.. Ford had passed the
stage where public financing was nee
essary to met his financial require
Nents Financial men conversant with
the affairs of the Detroit company
then described the Improvement in its
position as striking 1t was said as
far hack as March that Ford inven-
600 to $SOD00,00O since January l
through the sale of cars and spare
parts. The number of cars at the fac
| tory and in the hands of dealers ap
| proximsted $1,000, whereas last Octo-
! bsr, when The company's inventories
were at tise peak, the number of cars
I in the hands Of dealnrs.>wa 105 900,
while an additional 10000 cars were
in process Of manufacture.
| The names of several Eastern bank
/ ing groups We're mentioned at various
times in connection with the reported
| financing discussions, and it was un-
| derstood at. one time that syndicate
! headed yisyye the Boston Trust Company
! had fnatHe "a definite offer to Mr.. Ford.
! Then it. was said that this and other
! effcrs had been turned down by the
I, Detroit car builder because the rates
were too high and other demands Of
the bankers were considered excessive
Silent as to Rejection
Bankers declined to comment on the
/ statements attributed re Mr.. Ford
that he had showed the door to lead
ing banker who declared that one
would be the naming of the treasurer
of the company. The banker whom
the financial district believed to be the
man named by Mr.. Ford declined to
enter into discussion OF this phase
of Mr.. Ford's interview.
Rumors of big Ford loan first
made their appearance about the mid
die of January The first official de-
NAL that he was seeking financial aid
from Wall Street WAS made by Mr..
Ford in an exclusive Tribune interview
on February 9. Breaking silence of
moro than a year he denied that he
Fad sought S75.0o0,o00 loan or any
sort OF loan in Wall Street.