The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-09-26
FORD PROSPERING
DESPITE SLASHES
Wines Out 10-Million De-
i ficit by Increasing
His Production
FINISHES 5,l00 A DAY
Makes Small Profit on Maxi
mum Output. Figures Under
Cost and Broadens Market

,t.,,r,sbt 1929 by international News
DETROIT, Mich, Sept. 25.--Henry
vord ia making more cars and more
nrofiis this year than ever before.
p'pack OF these facts is perhaps the
r,o.4 uazing money story that ever
.nss told. which is seldom heard as
ford told II TO me. Ford's profits
,or me calendar year 1921 were
"a O00 600. This was the high mark
~ his career up to that time. 1t was
,srticularly notable because, at the
begiuning OF the year, Wall street,
believing him to be in financial dif-
flcuties. had sent a banker TO Ford
rs,e the next secretary OF the Ford
Motor company.
IIs Profits WiDed Out.
During the latter part OF 1921 and
,,hs early part OF 1922 Ford reduced
F,bs prlces OF his cars and tractors
nf,lciently to wipe out his $4,000
e60 profits OF 1921 and leave de-
Heit of SiO.OO0,000. That II TO say.
n The same number of cars and trac-
,ors were to be made in 1929 that
uere made in 1921 and wages and
the prices OF raw materials were to
remain the same, there would be a
deficit Of si0,000,000 on the busi-
ness Of 1922.
Having known all these facts since
the first OF the year, / asked Ford
today how he was making out.
I'VE are making more cars. more
tractors and more profits" he re-
plied, than ever before"
800 Cars n Day.
"Our average profits last year
we're a little more than s6,000,0O0
a month. Our average monthly
motifs so for this year have been
!, eApsiderably more than that. we
4 ~ making 500 cars a day. This Is
every car we can possibly turn out
with our present facilities; II is
more than we ever made before, yet
II is about 200 cars day less than
our orders
During the year I had told many
.AHisness men throughout the coun-
nv how Ford had apparently turned
last years S76,000,000 profits into
a 10000 900 deficit by reducing the
prices Of his products, and as one
man they had declared that In an
other manufacturer. Il would seem
an act Of insanity. This Is how Ford
explained 10 to me:
How Henry Gets BY.
IN fixing the price of anything
we manufacture" he said, I'VE AL
ways fix price that is below cost
at the time Il is made. The first thing
that happens is that everybody is
thereby put on his tiptoes. The most
important effect. however, IL the
enormous broadening of the marke ct
that follows. We are driven TO ca
pacity and more today because we
cut prices to less than what 1t cost
4 year ego. But our prices are no
longer less than cost because we
4 have refined our methods OF pro-
duction and are also able to buy our
raw materials for less because we
can buy in even larger quantities
As said, we have reduced costs sc
much by reducing selling prices that
\ we are making more cars and more
tractors--and more profits than
4 ever before"
asked FORD ~ the same prln.
\ ciple could be applied TO any indus
"A Try
They not only could he applied,
n he replied, "but they should be ap'
\ piled. What the public wants fl
service and low prices give th'
a maximum OF service by making i
i possible for the greatest number tC
d buy and use what Is manufactured
4 What the manufacturer should
4 want is broad sale with n small
profit on each unit. This affords
greater profit as the end OF the yea
I: than a large profit on each OF |
4 small number OF units.
\ Two Million He Forgot About.
II marvel that manufacturer
q can not see this. Apparently. they d.
not Their chief concern seems to b.
included in the cost OF every possible
item and pile upon that the great
est profit they believe can he mad
4 can he collected. 1t Is a fatal policy
Many concern has been wrecked
4 by proceeding upon such lines"
Ford's cash balance Is now NJ