The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-08-28
CLAIM FORD
SHUT: DOWN
IS PRETExT
Production Peak, Not Coal
Shortage, Thinks Of
fetal Washington.
BIZ DAVID LAWRENCE.

copyright. 1922. by The Argus.)
Washington, d. c.. Aug. 2S.-Al-
though the news that 100000 men
might be thrown out of employment
would ordinarily cause shivers of
apurehension 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
bis 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 in the government conversant
Z with the automobile industry credit
Mr.. Ford with a shrewd stroke in
seizing upon the coal shortage as
the pretext for shut down when
his plants have reached the satura-
ton point of production.
The view is expressed for m
stance that nothing better could
happen from a business viewpoint
for the Ford plants than a shut
down for a few weeks. This step
gives opportunity to hold up all
those orders for supplies and makes
possible the negotiation Of new con-
tracts. Some hints are heard mere
that the prospect Of an increase II
the cost OF steel caused Mr.. Fore
to adopt retaliatory measures oe
fore the steel manufacturers couit
squeeze him for a higher price,
But basically government OF
ficials who were discussing IN
move Of Henry Ford today declares
that the closing of the Ford plant
was by no means an unusual ste
in the automobile trade. The theor
was advanced that whenever ID
production reaches the highes
peak there is always a a-suddsa n
trenchment when it is discovere
that more automobiles have bee
made than the public can absorl
Mr.. Ford comedies that his produ'
ton is at an abnormally high stag
and that he was reaching II
greatest rate Of output in the hi
tory of his plants. This, howeve
is seen IS q reason for readjus
ment on the ground that the dea
ers will have more than enoue
Ford cars to handle the demand Il
months to come. Meanwhile Il
shutdown will prove an econon
in the long run for it will perm
the making Of new contracts
supplies or the. holding up OF tho
supplies which have already PEI
ordered. One man who has n
much experience with automobl
production and who now is in 4
government here said:
Explanation.
Many manufacturers would II
to shut down every now and tn
when they reach the peak OF pr
duction Of the saturation poll
They try usually to readjust a
retrench which is after all dinic'
and dangerous. The safest way
to shut down entirely and sta
n VIII Cledu eAolc. AAtS
n doubtedly what Mr. Ford has DO
for it is inconceivable that \
Ford, who owns a railroad whl
connects with one of the large
coal producing areas in the cou
try, should find it difficult to
enough coal to run his plants"
From a political angle. the ne
Of Mr.. Ford's action was a subj
Of some discussion but only as
symptom of the general compile
tons which the coal and :
strikes have made for those me
bers of congress who are up
reelection this year. Administl
ton officials already admit Il
unless the country Is in q prosp'
our condition when election I'll
comes a vote Of protest will
Continued on Page Twelve.)