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LDING T H E ROUGE PLANT 1 8 1 Never in all hi s tory had such a reward been pa i d for part i ci

pat

i

ou in a bu

s

ine

s

s venture .

Th e new Fo rd

M

otor Company was capitalized at $ 1 00, Deta

i

ls o f th e stock purchase were not completed till late in

t he year ; meanwhile work went o n at an accelerated tempo . T he task o f rearranging the organ

iz

at

i

on fo r t he resumpt

i

on o f pro

duct

i

on brought w

i

th

i

t

i

mportant dev elopments,

i

nvolving the compl et

i

on o f plant facilit

i

es along the Rouge R

i

ver.

As the Eagle boats left the Assembly bu

i

lding, e qui pment fo r

t he manufact ure o f car bodi es was moved

i

n .

Dur

i

n g the prev

i

ous summer foundat

i

ons had been la

i

d fo r hu ge o re , Stone and coal bins parallelin g the stream . They

w

ere bu

i

lt o f sohd concrete t wo feet deep , and set o n p

i

l e s su nk in the ground - at po

i

nts four feet apart . D

i

rectly we st o f t he storage yards a great concrete wall and mass

i

ve dock- head

w

e re fash

io ne d side by s

i

de, a sho rt distanc e apart. On them ra

i

ls were l ai d t o support g

i

ant o re - unl oaders, wh

i

ch were t o p

i

ck up the metal from lake boats at the rate o f t

w

elve tons per shovel ful , and t rans fer

i

t

i

nto t he b

i

ns.

Wr

i

ters compared t he scene t o Panama du r

i

ng the p e r

i

od o f const ruct

i

on o n the Canal . M

i

ngled together

w

ere Steam shovels,

concrete m

ix

ers, hoists, p

i

le dr

i

vers, tractors, trucks, mi n

i

at ure

and l

i

fe- S ize locomotives and cars ; and finall

y

the dredge N iagara gnawing her way along t he bed o f Roulo Cre ek, empt y

i

ng

i

nto

t he Rouge .

January 1 9 1 9 found Mr. Ford

i

ncre as

i

ng the m

i

n

i

mum wage h

i

s e mployee s t o a day.

It also found him t h e president o f a publi sh

i

ng concern . Dur

i

ng t he second week o f January a new periodical appeared

o n the ne

w

s- stands, bear

i

ng the name o f an o l d local

w

eekly ne

w

spaper, the Dearborn I nd epe nd e nt . In many ways

i

t wa

s

1 82 HENRY FORD

unique . The page s

iz

e was tw

i

ce as large as that of the ordinary magazine ; there were few illustrations ; the articles were largely comments on national or

i

nternational a ffairs. The masthead bore the name of E. G . Pipp as editor ; two of the full- page articles were wr

i

tten by another former ace of the Detro

i

t N e ws ed

i

to rial staff, William J . Cameron, who later succeeded Pipp.

An

i

nside page bore the name of the pres

i

dent and founder. Through the eight years of the magazines existence Mr. Ford s

Own Page continued to appear each week . Among other things, his first mess age stated

Th

i

s paper e

xi

sts t o spread ideas , the best that can be found . It aims to furnish food for thought .

I

t desires to Stir ambition

and encourage independent thinking.

A further explanat

i

on was g

i

ven

i

n the introductory editor

i

al The Dearborn I ndepe nde nt

i

s nOt

i

n any sense a trade paper published in the interest of the Ford industries ; indeed , it i

s

a

s

far from that as can be conceived . The paper owes its e

s

tablishment

t o Henry Ford s desire to serve the new freedom of the future . It

w

as someth

i

ng of a parado

x

for t he ne

w

publ

i

sher,

w

ho had suffered during much of his active life from ridicule , to turn like the proverbial worm , and to seek redress from one of the coun

tr

y

s great newspaper

s

by asking damages for libel . What roused his

i

re was the headline : F

ORD

I s

AN ANA

R C

H

IS

T

. It captioned a report that the automob

i

le manufacturer, back

i

n the days before the World War, had opposed sending the m

i

l

i

tia o n a pun

i

tive expedit

i

on south of the border into Me

x

ico . In response t o a direct inquiry from the Chicago Tribu ne , an execut

i

ve had replied that the j obs of any Ford workmen who responded t o the call would not be waiting for them when they returned . Two days later Mr. Ford repudiated the statement, but

i

t

w

as too late . He had al

w

ays consistently opposed war, but at the same time he felt he did not deserve the brand o f anarchist .

1 84 HE NRY FORD

berry. The Trib u ne happened to be

s

elected because it was re garded as the most powerful new

s

paper in the group attacking him .

Dur

i

ng the course o f the trial the courtroom resembled a battlefield, with ho

s

tile armies arrayed o n either side . E ach sought to gain tactical advantage

s

, resorting to legal byplay that had no bearing on the po m t s at i

s

sue . Corre

s

pondents from press services and all big newspapers sat entrenched at long tables, with telegraph boys sauntering in and out bear

i

ng copy, and the temptation to steal the headline

s

wa

s

irresi

s

tible .

Although the suit had been brought by

M

r. Ford ,

i

n no time at all it developed that he himself wa

s

the defendant, that what was on trial wa

s

his Americani

s

m . From the

M

exican border came an ama

z

ing array of W itnesses whose te

s

timon

y

was to paint a picture o f conditions there

i

n 1 9 1 6. T wenty Texas Rangers in full costume, ten- gallon so b re ro s, j

i

ngling spurs, b o w legs , and

S ix- shooters, paraded up and down the courtroom a

i

sles and through the lobbies of the Mt . Clemens hotels.

Deputy sheriffs flashed silver stars from a dozen count

i

es along the R

i

o Grande . Floyd Gibbons, famous war correspond ent, was called to relate h

i

s thrilling experiences both with Villa and Per

s

hing. Vainly the Ford attorne

y

s attempted to narrow the tr

i

al to the points at issue . The frail victim o f a

M

exican raid told tearfull

y

how her husband and sons had b ee n shot do

w

n

i

n cold blood .

As June turned t o summer, the little courtroom became a t o r ture chamber ; the air was stifling inside, and

w

hen t he windo

w

s

w

ere opened outside bree

z

es wafted

i

n t he sulphur fume s o f t he near- b y

M

t. Clemens baths .

T o supplement the newspapers o wn attorneys E. G. S te

v

en son, who had represented the Dodges I n their su

i

t,

w

as called in to assist in the examinat

i

on o f Mr. Ford . Report reached t he Ford camp that Lawyer Stevenson had boasted he would force Mr. Ford to read aloud from long docu

m

ents and book

s

with

w

h

i

ch he was not familiar, proving that he was illiterate . Fore

BUILDING THE RO UGE PLANT 1 85 warne d o f the plan, Mr. Ford left his glasses at home o n t he day

he ' o c c u pie d the

wi

tness stand and wheneve r documents were presented t o him t o read, he refused t o do so . The exasperated

M

t . S tevenson, w

i

th profuse apologies, asked blandly : Mr. Ford, I disli ke t o ask thi s quest

i

on but I have heard that y o u cannot read

o r wr

i

te. I S it true ?

S harp and b

i

tte r was the

w

rangle that followe d, b e fore the court quieted the antagoni sts. The examination turned to Ame r ican h

i

story. Mr Ford, what was the United S tates or

i

g

i

nally ?

Land, I guess. That t

i

m e the laugh was o n Stevenson.

Every day fo r more than a week Mr. Ford occupied the

wi

tness stand, while he was questioned about adve rt

i

sements, articles, and even defin

i

t

i

ons o f

w

ords l

i

ke ballyhoo, tre ason, and

i

dealist.

One day Mr. Ford had

w

orn t o court an o l d, comfortable pa

i

r o f shoes and as h e sat

i

n t he

w

itness b o x, he drew from a pocket an o ld kn

i

fe and idly whittled at a b

i

t o f leather o n t he sole o f o ne . O ff gu ardt he

w

as suddenl y aske d : Te ll t he j ury

who Bened

i

ct Arnold

w

as.

A Short t

i

me before Mr. Ford had been host t o Arnold Ben ne tt, and he m

i

ght have been t hink

i

ng o f h

i

m ; o r he m

i

ght have been th

i

nk

i

ng o f Matthe

w

Arnold w ho was also no t unknown

as a l

i

terary figure . At any rate, h e looked up from the sho e

i

n surpr

i

se and replied : Arnold ? Why, Ar no ld was a

w

riter !

What a me rry headline that made ! And when Mr. Ford added that

i

n h

i

s opin

i

on History was bunk, the correspond ents had all they needed . This was no ne

w

statement by him . As far back as May, 1 9 1 6, he had remarked t o a reporter : Rec

ords o f o l d

w

ars me an nothi ng t o me . H

i

st o ry is more o r less bunk . Its trad

i

tion.

Dur

i

ng the years t o com e h

i

s re mark

w

as t o b e re p e ate d more

t han onc e , unt

i

l the day

w

hen he cou ld de monstrate his c o nc ep

ti on o f history by trac

i

ng the d e

v

e lopme nt o f t he peac eful arts

and crafts at Green eld V

i

llage .

Le ss publ

i

cized

w

as h

i

s de finit

i

ono f an

i

de al

i

st,

w

h

i

ch sl

i

pped

1 86 HE NRY F O RD

o u t du ring the crossexamination : An ideali

s

t is one who seeks to make pro

t for ot hers.

T he right wa

y

to con q u er

M

exico ,

s

aid

M

r. Ford , was b

y

in

st ru c t in

g it

s

people in the co m m ercial and indu

s

trial art

s

. People

s

who follow tho

s

e p u r

s

u it

s

and enj o

y

pro

s

perity will not want war. I Vhe n a

s

k ed w hat he w as doing to fu rther such an ideal, he replied : Well , we have three hundred

M

exican

y

oung men

drawn from all over the var

i

ou

s

S tates of

M

exico , now in my tractor plant le arning how t o manufacture and operate tractors, so they may carry American ways and methods back to their homes .

Further test

i

mony brought out the fact that these young men had been selected by the Pre

s

ident of

M

exico , and had been ad mitred to thi

s

countr

y

through a spec

i

al arrangement bet

w

een the two governments .

T he verdict wa

s

promptl

y

reached by the jury and it was in

M

r. Ford

s

favor . H e did not need nor de

s

ire monetary re c o m pen

s

e, and the award of S ix cent

s

wa

s

as good as six million so far

as clearing hi

s

name was concerned .

Those who followed Mr. Ford s act

i

v

i

t

i

es closely ha

v

e always observed that just when

s

ome new creat

i

on of h

i

s was be

i

ng com

ple t e d his mind had leaped ahead t o the day when the new would give way to something newer. As he himself e

x

pressed

i

t,

on the day a new machine Commenced t o function

i

ts o b so

l e sc e nc e began . D esigners must commence plans for the machine that was to improve and supersede it . H e called

i

t progress through change .

E ven as the steel furnaces lifted the

i

r heads

i

nto t he a

i

r along the Rou ge River, and the tattoo of air hammers told o f the con

s

truction of a g igantic industrial concentration , he was looki ng forward to the next

s

tep -J de c e nt raliz at i o n . E mployment o f a vast army o f men meant an influx from country to c

i

ty.

l

Co n

gested living conditions , dependence on

w

ages, and helplessne

ss

1 88 HENRY FORD

R

i

ver Rouge Plant . A foundry

w

as begun, thirty acre s

i

n are a,

t o b e t he largest

i

n t he

w

orld . T

w

e nty ra

i

lroad sid

i

ngs were stre tche d across Miller Road t o t he ne w struct ure, t o e l

i

m

i

nate

t he e

x

c e ss han dl

i

ng o f steel

i

n

i

ts e re ct

i

on.

Next cam e the construct

i

on o f a battery o f cok e o

v

e ns. Coal wh

i

ch cost t he company appro

xi

mate ly a t o n de hv

e re d at t he plant,

w

as t o b e con

v

e rted

i

nto coke and by products yi eld

i

ng from t o a t o n. Part o f the black fuel was

t o y

i

eld t he sno

w

-

w

h

i

te ammon

i

um sulphate , h

i

ghly regarded as a fert

i

l

i

z e r. Enough gas

w

ould b e generate d t o heat the o

v

e ns and le ave more than fifty per cent fo r outs

i

de sale . O nc e t he ove ns

w

e nt

i

nto operation, t he process o f he at

i

ng from gas pro

du c e d

w

oul d b e cont

i

nuous. Tar, b e nzol and st

i

ll ot he r by pro duct s

w

ould b e obta

i

ne d .

The n came t he Ford comm

i

ssary st ore s. Because pr

i

ce s

w

e re

, at new h

i

gh le

v

e ls, ord

i

nary necess

i

t

i

es o f l

i

fe cost as much as lu

x

ur

i

es forme rly d

i

d . In t he same dwe ll

i

n g

w

here a down sta

i

rs ve - room flat had rented fo r $ 14 a month

i

n Detro

i

t back

i

n t he upst a

i

rs flat no w commanded $4 5 monthly. A mo d

e rn home in a good res

i

dent

i

al d

i

str

i

ct then cost from $ 60

t o $ 85 no w . Dressed turkey had range d from 1 8C t o 25C a pound ; no w l

i

ve t urke y

w

as 44 0 and 4 5c ; ch

i

cke n (li ve ) had gone up from 1 2C and 1 3 C t o 3 1 C and 3 2C .

The mot to o f t he Ford comm

i

ssary store s

w

as t o b e : Br

i

ng

t he dollar back t o par. Pr

i

ces o n su

i

ts and ove rcoats

w

e re t o

b e lowe re d ve t o ten dollars b e lo

w

o u t side pr

i

ces. S hoe s we re

t o b e s old at pr

i

ces from o ne dollar t o fift y c e nts less . Coke from t he R

i

ver Rouge Plant was t o b e so ld at 60 per c e nt o f

t he pre

v

a

i

l

i

ng pr

i

c e .

O

v

e r the country a buyersst r

i

ke was gathe r

i

ng mome ntum

aga

i

nst t he cont

i

nuat

i

on o f war pr

i

ce s. Early

i

n 1 9 20 a fa

i

lure

w as re porte d he re and there , a bus

i

ne ss o r manufacturing con

BUILDING TH E ROUGE PLANT 1 89 c ern. S oo n t he

i

r numbe rs

i

ncre ase d. The buye rs st r

i

k e gre w ; it was onl y a m atter Of t

i

me b efo fe it

w

ould affe ct sale s o f auto mob

i

les also .

By June sale s

w

e re dropping se r

i

ously. Eve ryt h

i

ng b e gan t o slow do

w

n, y e t supplie rs o f ra

w

materials

w

ould no t cut the

i

r pr

i

ces. Theodore Mac Manu s and Norman Beasley related

i

n

Me n

, Mo ne y and Mo t o rs ho w Knudsen and others calle d o n t he steel plants

i

n an e ffort t o

g

et a reduct

i

on fo r Ford.

Everyth

i

ng

w

as done by t he Ford company that cou ld b e done t o ke e p bus

i

ne ss mo

vi

n g and i t s army o f e mploye d . A bonus o f

w

as pa

i

d

i

n January.

To set an e

x

ample a pr

i

ce slash was announce d at a t im e whe n t he c ompany had o n hand un ll e d orde rs fo r c ars

and t ractors fo r

i

mme d

i

ate del

i

very.

Com

i

ng at a dramat

i

c moment, t he cu t caused a se nsat

i

on.

S ome e d

i

tors, real

i

z

i

ng that unl ess s

i

mi lar act

i

on was tak en dras t

i

c steps

w

oul d b e adopte d by banks t o de flate cre d

i

t , hail e d t he mo

v

e .

J

The Ch

i

cago Tribu ne de clare d th at the de c

i

s

i

on o f t he Ford Motor Company t o reduce the price s o f

i

ts cars t o pre-

w

ar leve l,

i

s an

i

mportant cont r

i

but

i

on t o t he

w

ork o f re st or

i

ng t he country

t o a sound e conom

i

c and

i

ndustr

i

al basis .

In th

i

s S troke , sa

i

d t he Ne

w

YOrk S u n, He nry Ford has po

i

nted t he way fo r all othe r producers, all other merchant s.

The country is he ade d fo r lo

w

er pr

i

ce s, pre -

w

ar pr

i

ce s o r the re abouts .

S

i

multane ously

wi

th t he pr

i

c e c u t it w as announc e d that

w

age s would no t b e dropped .

W

ork

w

as cont

i

nued at t he ne w plant, prepar

i

ng fo r e mploy

me nt o f more and st

i

ll more m e n. F

i

res were lighted

i

n the first

o f t he t wo blast fu rnace s May 1 7, 1 9 20. Mr. Fords grandson, He nry Ford II, touched a match t o t he o il- soak ed e

x

c e ls

i

or and

from

i

ts blaze product

i

on began .

Above t he powerhouse now rose g

i

ant smokestacks 3 25 fe e t above ground, t w o - th

i

rds as high as the Washington Monument .

1 90 HE NRY FORD

C ontinuance o f employment and the attack o n high pr

i

ces were onl

y

part of the program. E xpan

s

ion wa

s

on a scale greater than ever. A railroad wa

s

bought outright ; coal mines were pur

cha

s

ed ; a great timber reserve wa

s

obtained . All these were to have their part

i

n the lowering o f the cost o f t he car, truck and tractor .

While the plant was under c o nst ru c t io n t he government had a sked the D etroit, T oledo and

I

ronton Ra

i

lroad to replace its old bridge acro

s

s the R Ou ge with a new one . Unable to Stand the expen

s

e, the railroad a

s

ked Mr. Ford to financ e a half- million dollarbond i

ss

ue .

M

a

y

be

i

t would be better to buy the rai lroad , he repl

i

ed . Alread

y

the line h ad been reorgani

z

ed twenty- s

i

x times , dur

i

ng

a period of

fty year

s

it had never paid a dividend . Yet I t o ffered a direct ro u te to the coal

elds of southern Ohio , We

s

t Virginia and Kentuck

y

, avoiding conge

s

ted centers . By securing it and at the sam e time pu rcha

s

ing large coal holdings in the f

i

elds men

t io ne d Ford would be m ade practically independent so far as that re

s

ource wa

s

concerned .

The director

s

of the railroad made an o ffer

w

h

i

ch allowed the

s

tockholder

s

nothing on t h eir inve

s

tment . Ford increa

s

ed the amount a

s

ked

s

o that all could get a return on their money, and bought it for assuming a mortgage o f

more .

T h e railroad

s

e quipment was in bad shape . Part o f the track was too light, badly worn and bent ; it wa

s

replaced by

tons of heav

y

rail . T he tie

s

were just as bad . T e n engines were

s

crapped , together with 800 flat and coal cars , too old or too light to repair. Altogether, more than was Spent t e

building the road after the purchase .

I

n order to learn for him

s

elf e xact c o ndit I Ons, Mr. Ford made a per

s

onal inspection of grade

s

and bridge

s

over the 4 54 mile

s

of m ain track . In his au tomobile he traver

s

ed a con

s

iderable length of the line, vi

s

iting tow n

s

along it

s

route . He made a

1 9 2 H E NRY FORD

T hat is, it put a value of on S tock, raw and manu

fac t u re d, that had co

s

t it $ 1 05 Other manufacturer

s

de

c l are d that

M

r. Ford wa

s

cra

zy

.

T o

s

ome extent the cut brought t he de sire d re

s

ult . S ales took

a bound upward for a few weeks. Other manufacturer

s

cut prices too , but it was only temporary. T here was no reduction in inventory values or in prices of supplie

s

. One plant after an

other over the country closed down, and a

s

winter

s

et I n the cessation o f industr

y

became general . T he Ford plant alone con tinned t o operate at full capacity.

S ales did no t warrant the large production , but the company kept o n making it

s

monthl

y

quota of car

s

, manufacturing

S tock into automobiles . Looking ahead ,

M

r. Ford saw that a cra

s

h was coming, and he wanted to convert as much S tock a

s

possible I nto motor cars before I t arrived .

S upply concerns Still refu

s

ed to lower price

s

, and I n the end Mr. Ford reali

z

ed that if the process wa

s

to be ha

s

tened, a move must be made that no o ne could fail to under

s

tand .

I

n Dec em ber he closed the Highland Park Plant, determined not t o resume production until the company could buy material

s

at peacetime prices. He thought two weeks would b e suff

i

cient ; as it turned

out, si

x

were required .

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