River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1921-08-25
HENRY FORD TELLS HOW
HE PAID HIS WAY OUT
Rejected Wall Street Loan. Used Up
Raw Stuffs. Ousted Men Who
Didn't Pr00uce and Cut Prices
BY James Sweinhart

On a late January afternoon last
winter, high powered motor car
rolled up to the door of Henry Ford's
home. in Dearborn, and out stepped
a banker, formerly OF Detroit, now
connected with one of the biggest
banks on Broadway.
In answer to his ring the door
swung wide and, a moment later, ne
was shaking hands with the motor
manufacturer.
This banker, according to Mr.
Ford's associates, was the official en-
issary of a group of Wall Street bank
ING interests, come to offer the manu-
facturer loan.
"But do not need to borrow mon
ey," Mr.. Ford is reported to have
told him. ~ can finance all my COM
pany's operations myself"
81 think not" the banker confident
ly went on. eve know your obllga-
tions, we know your cash reserves
and we know you need money. Now
| have written out here plan by
which we can assist you. | would ike
to read it to you"
The manufacturer is reported to
have told him his effort would be
waste of time and breath, but. if he
still wished to read his proposition, ne
might do so-the manufacturer would
do him the courtesy of listening.
The reading went on for several
minutes, then the banker, suddenly
breaking off asked
ssWho's going to be the new treas
urer of your company 2" The former
treasurer had recently resigned.
Ford And The Banker
'sThat makes no difference to you,
does it," the manufacturer answered.
ooh yes it does" the banker came
back. ''We'll have to have some say
as to who the new treasurer shall be-"
That remark closed the interview
81 handed him his hat" says Mr..
Ford, showed him where the door
was and told him to take his things
and get out right quick. The next
time / saw Esdel | told him that, in
the future, he was to be the treasurer
as well as the president of the Ford
Motor Co."
That meeting was the show down 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. In
Detroit, plant after plant has closed
down or reduced production to mini
mum. The numbers of the unemploy-
ed was rising steadily. Everywhere
there was talk of '!black winter"
Only at the Ford Motor Co. rroduc
tion 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. 1t en-
gendered strong feeling of conf
4ence III the community.
Then in September the country
was startled and electrified by an
nouncement of 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
time it must manufacture at loss,
but that. in the hope of fastening 3
general return to the basic prices of
peace times, it would take its loss now
and it charged off to loss $4,000 900.
THAT is, it rut value of S88.0000 900
on stock. raw and manufactured that
had cost it 100000, and continued
full production on the new basis.
In the weeks following Ford bust
ness was appreciably stimulated, but.
generally speaking, on both the loc-
al and national basis, the closing down
of industry went steadily on. Then,
suddenly overnight, it seemed, sprang
up a host of rumors that even the
Ford company was affected. Vagpc,
Intangible reports spread over the
country that, due to the cut ii price
and to other causes. grave financial
problems now confronted the Ford
company, and. shortly, it must close
down or go bankrupt or both. Re-
norts ostensibly emanating in New
York, Chicago, London and about ov-
cry place else except the South Sea
Islands. and always ION highly credit
ahle authority" had it that Mr.. Ford.
his back to the wall, was making
supreme effort. using every resource
at his command. to borrow money, in
every market, at home and abroad
but always in vain; the end was not
to be far off. And when. early in De-
cembeT came an official announce
rent that. on Dec. %, the great plant
at Highland Park would close down
two weeks for inventory" in the pom
ular mind confirmation was given the
J1rmors and. with hundred variations
there seemed to be sufficient of fact
behind them to get them on, the news
wires end thus they were carried to
the ends of the earth. Even sober
level-headed business men began to
ho'ieve that within the Ford oroaniza-
tion something fundamentally was
wrong. Two weeks passed, but no re-