pat
i
ou in a bus
ines
s venture .Th e new Fo rd
M
otor Company was capitalized at $ 1 00, Detai
ls o f th e stock purchase were not completed till late int he year ; meanwhile work went o n at an accelerated tempo . T he task o f rearranging the organ
iz
ati
on fo r t he resumpti
on o f product
i
on brought wi
thi
ti
mportant dev elopments,i
nvolving the compl eti
on o f plant faciliti
es along the Rouge Ri
ver.As the Eagle boats left the Assembly bu
i
lding, e qui pment fo rt he manufact ure o f car bodi es was moved
i
n .Dur
i
n g the previ
ous summer foundati
ons had been lai
d fo r hu ge o re , Stone and coal bins parallelin g the stream . Theyw
ere bui
lt o f sohd concrete t wo feet deep , and set o n pi
l e s su nk in the ground - at poi
nts four feet apart . Di
rectly we st o f t he storage yards a great concrete wall and massi
ve dock- headw
e re fashio ne d side by s
i
de, a sho rt distanc e apart. On them rai
ls were l ai d t o support gi
ant o re - unl oaders, whi
ch were t o pi
ck ‘up the metal from lake boats at the rate o f tw
elve tons per shovel ful , and t rans feri
ti
nto t he bi
ns.Wr
i
ters compared t he scene t o Panama du ri
ng the p e ri
od o f const ructi
on o n the Canal . Mi
ngled togetherw
ere Steam shovels,concrete m
ix
ers, hoists, pi
le dri
vers, tractors, trucks, mi ni
at ureand l
i
fe- S ize locomotives and cars ; and finally
the dredge N iagara gnawing her way along t he bed o f Roulo Cre ek, empt yi
ngi
ntot he Rouge .
January 1 9 1 9 found Mr. Ford
i
ncre asi
ng the mi
ni
mum wage hi
s e mployee s t o a day.It also found him t h e president o f a publi sh
i
ng concern . Duri
ng t he second week o f January a new periodical appearedo n the ne
w
s- stands, beari
ng the name o f an o l d localw
eekly new
spaper, the Dearborn I nd epe nd e nt . In many waysi
t was
1 82 HENRY FORD
unique . The page s
iz
e was twi
ce as large as that of the ordinary magazine ; there were few illustrations ; the articles were largely comments on national ori
nternational a ffairs. The masthead bore the name of E. G . Pipp as editor ; two of the full- page articles were wri
tten by another former ace of the Detroi
t N e ws edi
to rial staff, William J . Cameron, who later succeeded Pipp.An
i
nside page bore the name of the presi
dent and founder. Through the eight years of the magazine’s existence “ Mr. Ford ’sOwn Page” continued to appear each week . Among other things, his first mess age stated
Th
i
s paper exi
sts t o spread ideas , the best that can be found . It aims to furnish food for thought .I
t desires to Stir ambitionand encourage independent thinking.
A further explanat
i
on was gi
veni
n the introductory editori
al The Dearborn I ndepe nde nti
s nOti
n any sense a trade paper published in the interest of the Ford industries ; indeed , it is
as
far from that as can be conceived . The paper owes its es
tablishmentt o Henry Ford ’s desire to serve the new freedom of the future . It
w
as somethi
ng of a paradox
for t he new
publi
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 countr
y
’s great newspapers
by asking damages for libel . What roused hisi
re was the headline : FORD
I sAN ANA
R CH
IST
. It captioned a report that the automobi
le manufacturer, backi
n the days before the World War, had opposed sending the mi
li
tia o n a puni
tive expediti
on south of the border into Mex
ico . In response t o a direct inquiry from the Chicago Tribu ne , an executi
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, buti
tw
as too late . He had alw
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 news
paper in the group attacking him .Dur
i
ng the course o f the trial the courtroom resembled a battlefield, with hos
tile armies arrayed o n either side . E ach sought to gain tactical advantages
, resorting to legal byplay that had no bearing on the po m t s at is
sue . Corres
pondents from press services and all big newspapers sat entrenched at long tables, with telegraph boys sauntering in and out beari
ng copy,” and the temptation to steal the headlines
was
irresis
tible .Although the suit had been brought by
M
r. Ford ,i
n no time at all it developed that he himself was
the defendant, that what was on trial was
his Americanis
m .” From theM
exican border came an amaz
ing array of W itnesses whose tes
timony
was to paint a picture o f conditions therei
n 1 9 1 6. T wenty Texas Rangers in full costume, ten- gallon so b re ro s, ji
ngling spurs, b o w legs , andS 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 Ri
o Grande . Floyd Gibbons, famous war correspond ent, was called to relate hi
s thrilling experiences both with Villa and Pers
hing. Vainly the Ford attorney
s attempted to narrow the tri
al to the points at issue . The frail victim o f aM
exican raid told tearfully
how her husband and sons had b ee n shot dow
ni
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 window
sw
ere opened outside breez
es waftedi
n t he sulphur fume s o f t he near- b yM
t. Clemens baths .T o supplement the newspaper’s o wn attorneys E. G. S te
v
en son, who had represented the Dodges I n their sui
t,w
as called in to assist in the examinati
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 docum
ents and books
withw
hi
ch he was not familiar, proving that he was illiterate . ForeBUILDING 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 exasperatedM
t . S tevenson, wi
th profuse apologies, asked blandly : “ Mr. Ford, I disli ke t o ask thi s questi
on but I have heard that y o u cannot reado r wr
i
te. I S it true ? ”S harp and b
i
tte r was thew
rangle that followe d, b e fore the court quieted the antagoni sts. The examination turned to Ame r ican hi
story. “ Mr Ford, what was the United S tates ori
gi
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 rti
sements, articles, and even defini
ti
ons o fw
ords li
ke “ ballyhoo,” “ tre ason,” and “i
dealist. ”One day Mr. Ford had
w
orn t o court an o l d, comfortable pai
r o f shoes and as h e sati
n t hew
itness b o x, he drew from a pocket an o ld kni
fe and idly whittled at a bi
t o f leather o n t he sole o f o ne . O ff gu ardt hew
as suddenl y aske d : “ Te ll t he j urywho Bened
i
ct Arnoldw
as.”A Short t
i
me before Mr. Ford had been host t o Arnold Ben ne tt, and he mi
ght have been “t hinki
ng o f hi
m ; o r he mi
ght have been thi
nki
ng o f Matthew
Arnold w ho was also no t unknownas a l
i
terary figure . At any rate, h e looked up from the sho ei
n surpri
se and replied : “ Arnold ? — Why, Ar no ld was aw
riter !”What a me rry headline that made ! And when Mr. Ford added that
i
n hi
s opini
on “ History was bunk,” the correspond ents had all they needed . This was no new
statement by him . As far back as May, 1 9 1 6, he had remarked t o a reporter : Records o f o l d
w
ars me an nothi ng t o me . Hi
st o ry is more ” o r less bunk . ‘ It’s tradi
tion.”Dur
i
ng the years t o com e hi
s re markw
as t o b e re p e ate d moret han onc e , unt
i
l the dayw
hen he cou ld de monstrate his c o nc epti on o f history by trac
i
ng the d ev
e lopme nt o f t he peac eful artsand crafts at Greenfi eld V
i
llage .Le ss publ
i
cizedw
as hi
s de finiti
ono f ani
de ali
st,w
hi
ch sli
pped1 86 HE NRY F O RD
o u t du ring the cross—examination : An ideali
s
t is one who seeks to make profi
t for ot hers. ”T he right wa
y
to con q u erM
exico ,s
aidM
r. Ford , was by
inst ru c t in
g it
s
people in the co m m ercial and indus
trial arts
. Peoples
who follow tho
s
e p u rs
u its
and enj oy
pros
perity will not want war. I Vhe n as
k ed w hat he w as doing to fu rther such an ideal, he replied : “ Well , we have three hundredM
exicany
oung mendrawn from all over the var
i
ous
S tates ofM
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 Pres
ident ofM
exico , and had been ad mitred to this
country
through a speci
al arrangement betw
een the two governments .T he verdict wa
s
promptly
reached by the jury and it was inM
r. Ford ’s
favor . H e did not need nor des
ire monetary re c o m pens
e, and the award of S ix cents
was
as good as six million so faras clearing hi
s
name was concerned .Those who followed Mr. Ford ’s act
i
vi
ti
es closely hav
e always observed that just whens
ome new creati
on of hi
s was bei
ng comple 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
pressedi
t,on the day a new machine Commenced t o function
i
ts o b sol 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 headsi
nto t he ai
r along the Rou ge River, and the tattoo of air hammers told o f the cons
truction of a g igantic industrial concentration , he was looki ng forward to the nexts
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 ci
ty.l
Co n
gested living conditions , dependence on
w
ages, and helplessness
1 88 HENRY FORD
R
i
ver Rouge Plant . A foundryw
as begun, thirty acre si
n are a,t o b e t he largest
i
n t hew
orld . Tw
e nty rai
lroad sidi
ngs were stre tche d across Miller Road t o t he ne w struct ure, t o e li
mi
natet he e
x
c e ss han dli
ng o f steeli
ni
ts e re cti
on.Next cam e the construct
i
on o f a battery o f cok e ov
e ns. Coal whi
ch cost t he company approxi
mate ly a t o n de hve re d at t he plant,
w
as t o b e conv
e rtedi
nto coke and by —products yi eldi
ng from t o a t o n. Part o f the black fuel wast o y
i
eld t he snow
-w
hi
te ammoni
um sulphate , hi
ghly regarded as a ferti
li
z e r. Enough gasw
ould b e generate d t o heat the ov
e ns and le ave more than fifty per cent fo r outsi
de sale . O nc e t he ove nsw
e nti
nto operation, t he process o f he ati
ng from gas produ c e d
w
oul d b e conti
nuous. Tar, b e nzol and sti
ll ot he r by pro duct sw
ould b e obtai
ne d .The n came t he Ford comm
i
ssary st ore s. Because pri
ce sw
e re, at new h
i
gh lev
e ls, ordi
nary necessi
ti
es o f li
fe cost as much as lux
uri
es forme rly di
d . In t he same dwe lli
n gw
here a down stai
rs five - room flat had rented fo r $ 14 a monthi
n Detroi
t backi
n t he upst ai
rs flat no w commanded $4 5 monthly. A mo de rn home in a good res
i
denti
al di
stri
ct then— cost from $ 60t o $ 85 no w . Dressed turkey had range d from 1 8C t o 25C a pound ; no w l
i
ve t urke yw
as 44 0 and 4 5c ; chi
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 sw
as t o b e : Bri
ngt he dollar back t o par.” Pr
i
ces o n sui
ts and ove rcoatsw
e re t ob e lowe re d five t o ten dollars b e lo
w
’o u t side pri
ces. S hoe s we ret 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 Ri
ver Rouge Plant was t o b e so ld at 60 per c e nt o ft he pre
v
ai
li
ng pri
c e .O
v
e r the country a buyers’st ri
ke was gathe ri
ng mome ntumaga
i
nst t he conti
nuati
on o f war pri
ce s. Earlyi
n 1 9 20 a fai
lurew as re porte d he re and there , a bus
i
ne ss o r manufacturing conBUILDING TH E ROUGE PLANT 1 89 c ern. S oo n t he
i
r numbe rsi
ncre ase d. The buye rs’ st ri
k e gre w ; it was onl y a m atter Of ti
me b efo fe itw
ould affe ct sale s o f auto mobi
les also .By June sale s
w
e re dropping se ri
ously. Eve ryt hi
ng b e gan t o slow dow
n, y e t supplie rs o f raw
materialsw
ould no t cut thei
r pri
ces. Theodore Mac Manu s and Norman Beasley relatedi
nMe 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 og
et a reducti
on fo r Ford.Everyth
i
ngw
as done by t he Ford company that cou ld b e done t o ke e p busi
ne ss movi
n g and i t s army o f e mploye d . A bonus o fw
as pai
di
n January.To set an e
x
ample a pri
ce slash was announce d at a t im e whe n t he c ompany had o n hand unfi ll e d orde rs fo r c arsand t ractors fo r
i
mme di
ate deli
very.Com
i
ng at a dramati
c moment, t he cu t caused a se nsati
on.S ome e d
i
tors, reali
zi
ng that unl ess si
mi lar acti
on was tak en dras ti
c stepsw
oul d b e adopte d by banks t o de flate cre di
t , hail e d t he mov
e .J
The Ch
i
cago Tribu ne de clare d th at the de ci
si
on o f t he Ford Motor Company t o reduce the price s o fi
ts cars t o pre-w
ar leve l,i
s ani
mportant cont ri
buti
on t o t hew
ork o f re st ori
ng t he countryt o a sound e conom
i
c andi
ndustri
al basis .”“ In th
i
s S troke ,” sai
d t he New
YOrk S u n, He nry Ford has poi
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 pri
ce s, pre -w
ar pri
ce s o r the re abouts .”S
i
multane ouslywi
th t he pri
c e c u t it w as announc e d thatw
age s would no t b e dropped .W
orkw
as conti
nued at t he ne w plant, prepari
ng fo r e mployme nt o f more and st
i
ll more m e n. Fi
res were lightedi
n the firsto f t he t wo blast fu rnace s May 1 7, 1 9 20. Mr. Ford’s grandson, He nry Ford II, touched a match t o t he o il- soak ed e
x
c e lsi
or andfrom
i
ts blaze producti
on began .Above t he powerhouse now rose g
i
ant smokestacks 3 25 fe e t above ground, t w o - thi
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 only
part of the program. E xpans
ion was
on a scale greater than ever. A railroad was
bought outright ; coal mines were purcha
s
ed ; a great timber reserve was
obtained . All these were to have their parti
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 Rai
lroad to replace its old bridge acros
s the R Ou ge with a new one . Unable to Stand the expens
e, the railroad as
ked Mr. Ford to financ e a half- million dollarbond iss
ue .“
M
ay
bei
t would be better to buy the rai lroad , he repli
ed . Already
the line h ad been reorganiz
ed twenty- si
x times , duri
nga period of
fi
fty years
it had never paid a dividend . Yet I t o ffered a direct ro u te to the coalfi
elds of southern Ohio , Wes
t Virginia and Kentucky
, avoiding conges
ted centers . By securing it and at the sam e time pu rchas
ing large coal holdings in the fi
elds ment io ne d Ford would be m ade practically independent so far as that re
s
ource was
concerned .The director
s
of the railroad made an o fferw
hi
ch allowed thes
tockholders
nothing on t h eir inves
tment . Ford increas
ed the amount as
keds
o that all could get a return on their money, and bought it for assuming a mortgage o fmore .
T h e railroad ’
s
e quipment was in bad shape . Part o f the track was too light, badly worn and bent ; it was
replaced bytons of heav
y
rail . T he ties
were just as bad . T e n engines weres
crapped , together with 800 flat and coal cars , too old or too light to repair. Altogether, more than was Spent t ebuilding the road after the purchase .
I
n order to learn for hims
elf e xact c o ndit I Ons, Mr. Ford made a pers
onal inspection of grades
and bridges
over the 4 54 miles
of m ain track . In his au tomobile he traver
s
ed a cons
iderable length of the line, vis
iting tow ns
along its
route . He made a1 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 manufacturers
dec l are d that
M
r. Ford was
crazy
.T o
s
ome extent the cut brought t he de sire d res
ult . ‘S ales tooka 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 supplies
. One plant after another over the country closed down, and a
s
winters
et I n the cessation o f industry
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
monthly
quota of cars
, manufacturingS tock into automobiles . Looking ahead ,
M
r. Ford saw that a cras
h was coming, and he wanted to convert as much S tock as
possible I nto motor cars before I t arrived .
S upply concerns Still refu
s
ed to lower prices
, and I n the end Mr. Ford realiz
ed that if the process was
to be has
tened, a move must be made that no o ne could fail to unders
tand .I
n Dec em ber he closed the Highland Park Plant, determined not t o resume production until the company could buy materials
at peacetime prices. He thought two weeks would b e suffi
cient ; as it turnedout, si