Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-07-23
WALL STREET loan
DIDN'T TEMPT FORD
Rejected $75,ooo,ooo Offer,
Then Raised $s7, 900, 900
Himself in a Months
OUTGENERALED FlNANClERS

Detroit, July 23.-In an interview
yesterday Henry Ford told how last
spring he had rejected the Wall Street
bankers proffered loan of between
S75 200. 900 and 500 900 900, and paid
his own debts of more than SOC, 200, 900
weeks before they were due.
In January he was visited BY New
York banker. who insisted that Mr..
Ford needed the money and asked bin
to read pnn 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 8
new treasurer would be.
THAT makes no difference to you,
does it?' asked Mr.. Ford.
''Oh, yes IL does" said the banker.
"We will have to have some say who
the new treasurer will be-
Ford Explains the Problem
That remark closed the interview and
opened the door to the departure of the
Wall Street representative.
Nov, all this time financial prob
lem had been developing" said Mr..
Ford. Back in 1914 we had borrowed
10000, 900 on notes with which to buy
out all other interests. OF this we had
paid S37 ,0O0. 900, leaving $50, ,000, 900
falling due April is.
Then, because of adjustments pend
ing, we still had the final installment
of the 1920 Federal income tax to pay,
which, with the installment payable
April 10 this year, made $4,000, 900
due the Government.
Also we intended to pay our men
their usual bonus on last years work,
which would amount to $1,000, 900
more. SO, all in all, between January
l and April Is we had to met obliga
tions totaling SOS, 5000, 900.
Wall Street Misinformed
Wall Street was all stirred up over
the misinformaton that we had to
make n 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 faith, / knew, that our organiza =
tion could turn them into more than
enough cash to meet our needs
Mr.. Ford then explained how. be-
tween January II and April 1. his
company turned $24. 700, 900 worth of
stock into cash. collected 81. 900 900
owed by agents at foreign ports. and
sold y-produCts. for 81. 100000, besides
diSposing of S7,000,000 in Liberty
bonds. BY economies the company
saved millions more.
1--WE found ways to cut the time our
goods were in transit" Mr.. Ford con
tinucd. by that one move we released
$2S, 900 900. took it from funds invested
in stock in transit and put 1t to other
uses. Thus. when April l came round
we had SS7 300 900 to meet S5S 300. 900
obligations. We paid them all, weeks
in ADVANCE
Mr.. Ford leaned back in his chair
and laughed,
"And all the while" he went on,
these New York bankers were fussing
around here. trying to get us to take a
loan
Big Economies Effected
"Thp creation of these sums were ef-
fccted by new economies" Mr.. Ford
continued. Our economies are big
things. Take that item of sos .OOO. 900
released from investment in goods tran
sit. We were able TO do things by a
combination of two things, BY using
our railroad we were able to speed up
movement Of raw materials to the fac
tory, movement of finished cars from
the factory to the dealers. better
methods in the factory cut the time
needed in the factory. cut the time
needed tn manufacture the material into
machines. Then We stopped carrying
immense reserve supplies of raw ma
tcrials. The first economy made the
second possible
where. before. we had $SS 900 900
tied up in moving and reserve stocks re-
QuirCd to make % 900 cars a month. .
now we handl" the stock required to
make lli,21O ears a month for less than
S60, 900, 900. This SOS. 900. 900 goes into
cash account, TO be used for other pur-
poses-aS paying debts, for example, ,"
ana Mr.. Ford's intense expression gave
place to smiles.
'Offr" and shops also come in for "A
house cleaning We went through the
GfficcS and cut out hundreds of iobs
created during the handling of war
work. We literally took ont a train
load of desks and furniture and sold
them. We told the men that occupied
I hose desks that back in the shops were
plenty OF good jobs at good pay-if they
wanted to take them. Most of them
did.
We cut the Office forces from 1914
10 52S persons. Telephone extensions
were cut about 60 per cent. Interesting
but useless systems of statistics were
abolished, rs well as the forms made
necessary by them.
1--WE went through the shops in the
same way. During the war production
we had foreman for about every three
to five men. Too many foreman sat at
desks all day long looking on. We have
| sold all III" desks, and most of the for
m"r ior"mcn are now at machines. We
| how haEr II foreman to about every
| twenty men, Everything and everybody
that was not producing was put in DO .
sition where they would produce OF
were eliminated.
Operating Costs Cut
"A comparison of our operating cost,
/ bct0r" and after the hOuSccleaning is
really II startling lesson in what manu-