Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-07
MEN AND MONEY
BY III. S. Rukeyser.
Copyright. 1927

The offer of a New York brokerage
and investment banking firm to buy
the Ford Motor Co. for $1,000, 100000
/ recalls conversation which the writer
| had with the sage of Dearborn a little
more than three years ago.
| / asked Henry Ford whether he was
| considering selling stock in his enter
prise to the investing public, in ac-
cordance with the general trend IN
| that direction.
II should say not" Mr.. Ford shot
back, stockholders are parasites.
TO the question as to whether he
had any plans for retirement, he re-
piled with an emphatic negative.
The downward trend in Ford auto
mobiles sales in the last year resulted
largely from narrowing the difference
between Ford prices and those OF his
nearest competitors. There is stu a
sufficient differential to retain the
market below a certain point.
AS to this, Mr. Ford threw light on
his general business philosophy, say
ing: IF I could not make a better
product at lower price, there would
be no fun being in business,
Detroit Still in Dark.
Detroit. in which this column is
written. is as little familiar with the
future nlans of Henry Ford as the
rest of the country. Mr.. FORD Is no
Rabbit. He plays a lone hand, avoid
ing trade associations, CHAMBERS OF
commerce, and Rotary CLUBS. Detrolt
Judges Mr.. Ford's program by eX-
ternal events. such as the opening
and closing of plants, but usually
such developments are only OIL trah
silent significance. Ford rumors ABOUND
because of the disposition OF minor
empIoves and dealers to diVulge the
real inside story, of which, as mat
ter of fact. they are quite ignorant.
A reader in Chicago writes to ask
me to recommend Trustworthy
broker who can raise $50,000 Tor ms
business through the sale or securltles'
This brings up the question or the
difficulty of financing a small enter
prise in this era of big business.
Large and reputable inVestnent
BILE to handle small issues, not wishing
to bring out a battery OF machine
guns to kill a mosquito.
Accordingly, the small business
man. after being turned down by the
standard houses. is in danger OF drift
ing into fy-by might brokerage othces,
which are glad to be able to use
Yenutahle business name as camou-
fiage for their nefarious activities.
Need Is Acute.
The economic need for machinery
for handling moderate sized long-term
Industrial loans is acute. A few enter
prising small sized banking firms are
beginning to enter this field. One OF
them makes it's headquarters in De-
troit. This firm will handle loans up
ward of 100000, preferring them
closer to 81, 900, 900. Even S1,0OO,O0O
issue is considered small potatoes by
the standard investment banking
houses in Wall street.
The gentleman in Chicago who
wishes only $4,000 ought to seek to
interest one or a small group of capt.
talists either through advertising or
through his own bank. Incidentally,
the starting point in all financing
should be your own commercial bank, |
which can give you valuable letters
of introduction to investment bankers. |
Financial houses are impressed by
credentials.
Would Nullify Hedge Clause
A recent court decision in New York
tends to make worthless the so-called
"hedge clause" by which investment
expressions as I'VE believe the fore
going to be true, but do not guarantee
it," are of no significance in civil suits
resulting from losses in cases where
the bankers innocently gave erroneous
information of a material character.
AS a matter of policy, several large
underwriters in New York before the
court decision voluntarily abandoned
the hedge clause. The Prudence Co.
goes a step further, and says 1.-THE &C.
curacy of all the information con-
tanned in this circular is guaranteed"
A list of the securities in the estate |
of the late John G.. Shedd, former |
chairman of Marshall Field & Co., has |
been published. Mr.. Shedd had the |
wisdom to invest the bulk of his for |
tune in enterprises of which he had a |
first-hand knowledge.
Many less astute men are attracted |
by the enchantment of distance. |
and persons in faraway places |
have an added lure. Frequently the |
best opportunities are at your door |
step.