Evening star., 1922-08-28
FORD SHUTDOWN
CALMLY Received
Official Washington Not Wor-
ried Over Threat to Close
Big Plants.
SKEPTICAL OVER EXCUSE
Coal Shortage Reason Doubted.
Believed Pretext Because Produc-
tion Reaches Saturation Point.
SKEPTICAL OVER EXCUSE
BY DAVID LAwRENCEt

Although the news that 100000 men
might be thrown out of employment
would ordinarily cause shivers of
apprehension to run up and down
the political spine Of the incumbent
administration because of the pos
sible effect on other industries. 1t
cannot be said that official Washing
ton is particularly disturbed over
Henry Ford's threat to shut down his
plant.
The truth is considerable skepti-
cism exists here as to whether the
coal shortage was the real reason for
the action of Mr.. Ford. Many men
the automobile Industry credit Mr..
Ford with a shrewd stroke in selling
upon the coal situation as the pre-
text for q shutdown when his plants
have reached the saturation point OF
production
Shutdown Desirable.
The view is expressed, for instance.
that nothing better could happen from
business viewpoint for the Ford
plants than a shutdown for a few
weeks. This step gives opportunity
to hold up all those orders for sup
plies and makes possible the negotfa-
ton of new contracts. Some hints
are heard here that the prospect OF an
increase in the cost Of steel caused Mr..
Ford to adopt retaliatory measures
before the steel manufacturers could
squeeze him for a higher price.
But, basically, government offlciais
who were discussing the move OF
Henry Ford today declared that the
closing of the Ford plants was by no
means an unusual step in rhe auto
mobile trade. The theory was ad-
vanced that whenever the production
reaches the highest peak there is az
ways a sudden retrenchment when II
is discovered that more automobiles
have been made than the public can
absorb. Mr.. Ford comedies that mis-
production Is at an abnormaliy high
stage and that he was reaching ihe
greatest rate of output in the history
of his plants This. however, Is seen
as q reason for readiustment on the
ground that the dealers will have
more than enough Ford cars to han
die the demand for months 10 come.
Meanwhile the shutdown Will prove
an economy in the long run, Tor IL
will permit the making OF new con-
tracts on supplies or the holding up
of those supplies which have already
been ordered. One man who has had
much experience with automoDli" pro-
duction and who now is in the gov
eminent here said:
shut down every now and then when
they reach the peak Of production or
the saturation point. They try usu-
ally to readjust and retrench. which
is after all difficult and dangerous.
The safest way is to shut down en-
tirely and start with clean slate.
This is undoubtedly what Mr.: Ford
has done, for it is inconceivable that
Mr. Ford, who owns railroad which
connects with one of the largest coal
producing areas in the country should
find it difficult to get enough coal
to run his plants
From a political angle the, news
of Mr.. Ford's action was subject of
some discussion, but only as symp-
tom of the general complications
which the coal and rail strikes nave
made for those members of Congress
who are up for reelection this year.
Administration officials already admit
that unless the country is in a pros
porous condition when eleetion time
comes vote Of protest w1ltanevitabiy
be registered which, will, help the
democrats. though as yet no real fear
exists that the republicans VIII lose
control of Congress.
Crucial Days Ahead.
The next ten or fifteen days will be
crucial The feeling in administra-
ton quarters Is that industry is on
the verge of a great era of prosperity,
if only the coal and rail strikes can
be settled The President on his
return from the Mayflower gave no
new indication of the course he will
follow, which for the moment appears
to be one of waiting to see whether
the railroads can operate efficiently
and carry the coal which the bitumi-
nous mines are producing in such great
quantities since the Cleveland treaty
Of peace was signed. II the coal be-
ing produced cannot be R4rried. gov
ernment operation iE@ inevitable.
though it must be un6oBstood that
the administration is not committed
to that course and Is really making
no preparations in that direction as
yet and hopes some other solution
will be found.
The situation is not far different
from that which prevailed when the
President invited the mines to re-
sumo operations under government
protection. 1t became evident after
short time that not enough coal was
being produced to affect. the situation
very much. Now 1t remains to be
seen whether the deterioration of
locomotives and equipment is a myth
or the truth and whether the coal
being mined can be carried.
{CopyriRht 1922