Richmond daily register. (Richmond, Madison County, Ky.) 1917-1978, 1921-07-28
HOW FORD MADE
CASH MILLIONS
Fell Out With Wall Street;
Showed Banker Door; Es- +.
capped Money Lenders

Detroit, Mich, July 2S-This1
city is greatly interested III an
interview just made public. with
Henry Ford, in which he tells the
story of his recent falling out
with Wall street and the plans
which he adopted and carried out
to reorganize his great automo-
bile industry.
How New York banker visit
ed him and offered loan, only to
be shown the door, is related by
Mr.. Ford, who says that his visit
or demanded the naming of the
treasurer Of the Ford company.
Nov, all this time financial
problem had been developing"
said Mr.. Ford. Back in 1914
we had borrowed $7O,OO0,OOO ON
notes with which to buy out all
other interests. OF this we had
paid $37, 100000. leaving S33,O0o,-
900 falling due April, Is. Then,
because of adjustments pending.
we still had the final installment
of the 1920 federal income tax to
pay, which, with the installment
payable April IS, this year, made
$1S.OOO,00O due the government.
Also we intended to pay our men
their usual bonus on last years
work, which would amount to S.
100000 more. So, all in all, be-
tween January | and April 18 we
had to meet obligations totaling
$58,O00000.
III show you what we did"
said Mr.. Ford turning to the desk
and pushing across pencil and pa
per.
Put down cash on hand, $2O,-|
100000 We wished as usual to-
pay a bonus to our men on last
years work. This would take ap-
proximately 100000, which We
wanted to pay as soon after Jam
uary l as clerks could make out
the checks. That was our only
immediate outlay we had
enough cash almost to pay it
three times over.
Then we turned our attention
to liquidation. When we closed
down we had on hand approxi-
mately $4,000 finished cars. At
Highland Park we had been ship
ping out cars and parts to dealers
as fast as they were finished. This
plant was cleaned of materials
and every department closed
down. But we had IS branches
scattered all over the country, att
these, manufacturing of parts
stopped, but the assembling and
finishing parts went on, adding to
our finished cars. That was why, |
during J January, there was a Ford |
car famine in Detroit, and to fill
local orders we were driving cars
here: from Chicago and Column
bus, O.
Our first move was to sell
some Of our cars on hand. In our!
contracts with dealers they agree
to take certain quota each year,
each according to his district. Wei
shipped to each dealer enoughcars
to take care of approximately Is
days sales. During January we
sold nearly 10000 cars, which
showed us what we could when
we tried. and from then on sales
steadily mounted above produce
ton. Assembling went on at ALI
the branches, and on Januay 3D.
we reopened the Highland Park
plant and began building up pro-
duction there, but still kept salesj
ahead Of production. Between1
January IL and April we turned
$27 100000 worth of stock into
cash-put that down.
Then we looked over our for
eign accounts and found curl
agents at foreign ports owed us
100000, which we collected.
We had also sold by-products fors
which we had accounts receivablel
of $3,7OO,OO0 more, which we. go
in-put down those two items. Orr
top of that we sold 100000
worth of Liberty bonds Ifyou'll
total these you find they come to
S5o, 100000 = more than enouglll