New Britain herald., 1927-02-09
FORD HIMSELF IS
 NOT 50 VALUABLE
His Genius Once Was Estimated
 to Be Worth 25 Million

Washington. Feb. 9 (UP)-Henry F'ord's personality and genius was s25,800.000 asset to his company in 1913. Paul Clay, expert on secu- rites valuations and investments estimated today.
 In an exclusive interview with the United Press, Clay. who is vice president of Moody's Investment service, said Ford's value had mate rially decreased in recent years
 Ford's depreciation as an intan- gible asset is due to his spreading out in other lines instead of con centrating on automobile work, Moody believes.
 Prosperity, too, has injured the Ford company instead of helping it, according to the economist. He Pointed out that people could now afford to purchase more expensive automobiles-and did buy them.
 The Ford Motor company today is worth about s950, ,000," Clay estimated. T would put that valu- ation s250, 900 higher if 1t were not for the fact that in recent years the company has been overloaded with physical property or what economists call tangibles.
 Tt Is all wrong to think that low priced car competition is what ailed the Ford company last year. The real cause is that the company has gone into too many things" Clay continued.
 You can apply genius of man. agement to one business, but when enc management goes Into railways, steel plants. glass factories, mines, cement plants, paper mills and oth- CTS, the operation genius gets lost in the mix up.
 Absolute proof Is not available, but I believe the company would be better off if Ford had stuck to his own business.
 Doubtless these properties are all right, but certainly they will never earn the return that a same in Nestment In good old Ford model would bring in"
 Annual Output
 
 Clay said he believed Ford now turned out 2,OO0,0OO cars and trucks annually. He placed the profit on each car and truck at about s60, giving the Ford company an annual earning of about 20,00O,O00.
 Now supposing Ford owns about 60 per cent of the value represented by bia coppopv aDd hoe oooypo,,,,+ ed some outside investments, his indicated wealth could be some where around ssoO,0o0, 0,00o," Clay said.
 When asked about Norval flaw kins' estimate that Ford was worth from s1,5oS, S,000, 900 to s2,00o, 100000 Clay said his own estimate was very conservative but that it must be taken into consideration that flaw kins Is a promoter and was former ly sales manager for Ford.
 Ford need not worry about last years decline in sales" Clay con- tinued. Tt was not low priced car competition but rather that every other medium priced car cut into the sale of Fords.
 But it is the other companies and not Ford who need to 60 the worrying. Ford is a genius and you can be sure he can come back.
 No Competition. No one can ever compete with his low cost of production and ne has plenty of profit margin to make any such changes as needed to meet the public taste and requirements" Clay, who was witness in the governments s36,o0O,O0 tax assess ment case against Senator James Couzens, republican, Michigan, md i others who sold Ford the minority stock in his company for s107, ,000,- | 900 in 1919, has just completed a,4 thorough study of the Ford company < since it was organized in 1903. Clay I spent 15 months going over the his tory and records of the company.
 Clay, who has already testified in . the tax case, attended the session | today to hear the cross examination { of Ralph F. Badger, investment \ counsel of Providence R. l., who . placed the value of Ford stock at ste.500 a share as of March 1, 1913. Clay estimated the value at s10,- o00 chora oP do