New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-23
Refused Offer WhenBank.
ers Wanted to Name His
Treasurer, and Raised
81 Millions in 3 Months
Saved Huge Sums
By Buying Railroad
l. au CHS at Financiers
Who Thought He Must
Take Their Is Millions
Special Dispaich tn III, yr;h...


DETROIT, July 22-In an interview
to-day Henry Ford told how last spring
he had rejected the Wall Street bankers
proffered loan of between S75, 900. .000
and $1oo,ooo,ooo, and paid his own
debts of more than s60,O0O,0 900 weeks
before they were due.
In January he was visited bv New
York banker, who insisted that Ford
needed the money and asked him ia
read plan by which Wall Street
would be willing to assist. Out of
courtesy Mr.. Ford listened to the read
ing until the fnancier asked who
Ford's new treasurer would be.
That makes no difference to Won
does it 2" asked Ford.
"Oh, yes it does" said the banker
I'VE will have to have some saw who
the new treasurer will be-"
That remark closed the interview and
opened the door to the departure Of
the Wall Street representative.
Owed s1S,oo0,oo0 Income Tax
"Now, all this time financial prob
lem had been developing" said Mr.
Ford. Back in 1914 we had borrowed
$7o,O0o,00o on notes with which to buy
out all other interests. Of this we had
paid $37, 100000, leaving $4,000 900
falling due April 18. Then, because of
adjustments pending we still had the
final instalmcnt of the 1920 Federal
income tax to pay, which, with the in
stallment payable April Is this wear
made $1S,000,000 due the government
Also we intended to pay our men their
usual bonus on last years work, which
would amount to s7000,0OO more. So
all in all, between January l and April
Is we had to meet obligations tctaling
$58,0O0,OO0
"That, ] think, is where the Wall
Street bankers went wrong. They
couldn't see where we could get $40,-
100000 more to meet our obligations
1t was their best bet that we couldn't
they didn't know our men here or
the spirit behind our organizations
and the motor manufacturers face
overspread with a smile. Faith and
pride in his organization is one of
Henry Fords most outstanding char
acteristics.
"Wall Street was all stirred up over
the misinformation that we had to
make a loan. The fact is, we didn't
need nickel. That's where the faith
comes in. Spread over the country we
had immense quantities of raw mate
rials, parts and finished cars and
had had faith, knew, that our organi-
cation could turn them into more than
enough cash to meet our needs.
"I'll show you what we did," said
Mr.. Ford, turning to the desk and
pushing across pencil and paper.
''Put down Cash on hand, $4,000
000." We wished as usual to pay 8
bonus to our men on last years work
This would take approximately $1,000
900, which we wanted to pay as soon
after January l as clerks could make
out the checks. That was our only i'm
mediate outlay-we had enough cash
almost to pay it three times over.
$1,000 Finished Cars Ready
"Then we turned our attention tc
liquidation. When we closed down we
had on hand approximately $4,000
finished cars. At Highland Park we
had been shipping out cars and parts
to dealers and branches as fast as they
were finished. This plant was cleared
closed down. But we have thirty-fi five
branches, scattered over the country
at twenty-five of which we both manu-
facture parts and assemble. At these
manufacturing Of parts stopped, but
the assembling of finished parts went
on, adding to our finished cars. That
was why, during January, there was
Ford car famine in Detroit, and to
fill local orders we were driving cars
here from Chicago and Columbus, Ohio
Our first move was to sell some
of our cars on hand. In our contracts
with dealers they agree to take a GER
tain quota each year, each according to
his district. We shipped to each dealer
enough cars to take care of approx
mately twenty-five days sales. During
January we sold nearly 10000 cars,
which showed US what we could do
when We tried, and from then on sales
steadily mounted above production.
Assembling went on at all the branches
and on January % we reopened the
Highland Park plant and began build
ing up production there, but still sales
kept ahead of production. Between
January IL and April l we turned $24,-
CONTINUED ON next paue)