The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-01-22
TREMENDOUS LOAN
ASKED IN WALL ST.
| BY FORD COMPANY
Automobile Factory Needs
Sixty to Seventy Millions
in Ready Money.
PUBLIC TO SUBSCRIBE
Group of N. Y. Financiers
Plan to Issue Bonds or
Notes for Amount.
FACE BIG OBLIGATIONS
Company's Working Capital
Burdened by Unsold Cars
Worth $3O,OOO,OOO.
FACE BIG OBLIGATIONS

The Ford Motor Company has come
to Wall Street for money for the Sec
ond time in it's history. 1t is nego-
tiating for 100000 900 to s75,O00,o 900 at
present. A group of New York bank
ers contemplate Offering early next
week either bonds or notes to the
amount required. Public subscription
will be invited. The negotiations have
reached point where the Liberty Ma
tional Bank, New York Trust Com
pany and Corn Exchange Bank are
connected with the new financing. An
announcement is anticipated at the
beginning OF the week.
For three or four weeks Henry Ford
has been talking about the financial
needs OF his company with bankers in
this and other cities. Bank loans 20
carry inventories. completed but un-
sold automobiles and Federal income
and excess profits taxes have piled up
q financial requirement possibly in ex-
cess of 500, 10000. The bank loans are
said to be $30,000000. The taxes are
estimated at $43,000,000. but these can
be paid in four quarterly instalments.
The completed but unsold automobiles
approximate $S0,O1O.OCo in value. The
contemplated financing is to retire banN
loans, to meet taxes and to supply ade-
quate working capital.
The Ford Motor Company's new money
requirements have grown out of the
change which occurred in the auto
ht,ei
In other businesses. Inability Of Eu-
rope to pay for products sold there, to-
gether with the great reduction in buy
ing power at home. resulted in me
piling up OF finished but unsoid prod
uct. II is estimated that the Ford COM
pany has IN the hands OF its selling
agents more than 10000 motor cars
completed but undistributed. and bur-
den on the working capital OF the COM
pany. AS these cars are sold funds
will flow back TO the company, aiding
in the reduction of loans.
Harry Ford's first occasion to come
To- Wall Street for funds occurred In
July, 1919, when the company borrowed
SIS. .0O0, 900 for the purchase OF the out
standing minority stock. owned by the
Dodge brothers and others. \ syndicate
composed OF Bond e. Goodwin. Chase
National Bank and Old Colony Trust
OF Boston extended a credit Of s75,000,-
900 on ninety day notes extended for
year and discounted at the prevailing
rate for commercial borrowings AT
the end of each ninety day period the
aggregate of the credit was reduced,
and II was finally paid off in full at
tho close Of 1920.
1t will be recalled that Henry Ford
was the first of the big motor car manu-
facturers to announce cut in prices
for automobiles. trucks and tractors last
autumn, the reduction ranging from ~
per cent. to 35 per cent. The reductions
for time were a trade stimulant. but
the company found IL necessary to close
the entire plant at or near the end OF
the year. and only the other day en-
ployees called at the plant to get the
announced bonus in lieu Of receiving
wages while the plant remained closed.
There have been several designations In
the official organization of late and it is
expected that these will result in several
additions to the executive personnel
Drreorr Ian. -I.-Officials of the
Ford Motor Company would neither con-
firm nor deny the report from New York
that the corporation was negotiating
loan of Upward Of $4,000, 900. In the
absence OF Henry Ford. they said they
could not discuss the financial affairs OF
the company.
Personal representatives OF Mr.. Ford
are known to have been IN the East dur
ing the last few weeks. Rumors have
been persistent here for some time that
the company contemplated loan, but
officials of the company have refused
to discuss them. Mr.. Ford is known to
be contemplating largo expenditures In
Improvement of the Detroit, Toledo and
Ironton Railroad. which he acquired
some time ago.