Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1921-08-24
Henry Ford Tells How He
Paid His Way Out.
Bv James Sweinhart.

winter, a high powered motor car
rolled up to the door of Henry
Ford's home, in Dearborn, and out
stepped a banker, formerly Of De-
troit, now connected with n of the
biggest banks on Broadway.
In answer to his ring the door
swung wide and, a moment later,
he was shaking hands with the motor
manufacturer.
This. banker according to Mr.
Ford's associates, was the official
emissary of a group of wall street
banking interests, come to offer the
manufacturer a loan.
a.But I do not need to borrow
money! Mr.. Ford is reported to
have told him. 81 can finance all
my company's operations myself"
"I think not" the banker conf
IDENTIFY went on eve know your
obligations, we know your cash re-
serves and we know you need money.
Now ! have written out here a plan
by which we can assist yoa. / would
like to read it to you"
The manufacturer is reported 90
have told him his efforts would be
a waste of time and breath, but, II
he still wished to read his proposition
he might do so-the manufacturer
would do him the courtesy of listen
ing.
The reading went on for several
minutes, then the banker, suddenly
breaking off asked:
"Who's going to be the new treas
urer of your company" The former
treasurer had recently resigned.
Ford and the Banker.
"That makes no difference to you.
does it?" the manufacturer an
swered.
ooh yes it does" the banker came
back. well have to have some say
as to who the new treasurer shall be-"
That remark closed the interview.
81 handed him his hat I" says MI.
Ford, Showed him where the door
was and told him to take his things
and get out right quick. The next
time / saw Edsel I told him thst, in
the future he was to be the treasurer
as well as. president of the Ford
Motor Co."
That meeting was the showdown
in a situation which, developing for
months, had been watched with in
tense interest by industrial America.
During the previous SUMMER and fall
industry generally, the country over,
had been gradually slowing down.sl In
Detroit, plant after plant had closed
down or reduced production to a
minimum. The number of unimploy-
ed was rising steadily. Everywhere
there was taaffk OF ebIacR winter
Only. at the Ford Motor>Co.. produc-
ton rushed on undated. With full
forces and three shifts a day it was
the wonder plant" not only Of De-
troit but of the whole country. It
engendered a strong feeling of con-
fidence in the community.
Then in September the country
was startled and electrified by an
nouncement of a big cut in the price
of the Ford car. The company an
nounced that it made the cut in an
ticipation of lowered prices of raw
materials in the, future, that for a
time it must manufacture at a loss,
but that in the hope of fastening a
general return to the basic prices Of
peace times, it would take its loss
now-and it charged off to loss
S17,000,0OO. That is it put a value
of SIS, 5000, 900 on stock, raw and
manufactured, that had cost it $780,
OOO, 900, and continued full produc>
ton on the new basis.
Shutdowns Everywhere.
In the weeks following Ford bust
ness was appreciably stimulated, bus
generally speaking, on both the To-
cal and national basis, the closing
down of industry went steadily on.
Then suddenly, oven night it seemed,
sprang up a host Of rumors that
even the, Ford company was affected.
Vague, intangible reports spread
over the country that, due to the
cut in price and other causes, grave
financial problems now confronted
the Ford company and, shortly, it
must close down or go bankrupt or
both. Reports ostensibly emanating
in New York, Chicago, London and
about every place else except the
E I---- IT,