Henry Ford: An Interpretation

XII. The Ford Executive Scrap Heap

CHAPTER XII THE FORD EXECUTIVE SCRAP HEAP ONE of the most conspicuous, interesting and significant things about the Ford Motor Company is its executive scrap heap. Into it, from time to time, have gone the most capable men of the organization, men of high character and great ability, the value of whose services to the company has been beyond estimate, old and loyal friends of Henry Ford, intimate and trusted business associates for years. The story of the formation of this scrap heap has never been written, — perhaps never will be. Whatever the causes of its formation, it seems a fair inference to draw that inefficiency was not one of them, in view of the fact that the discard was not made until after the company had attained a phenomenal success. The character of that scrap heap is such as to lend distinction to the man whois cast upon 118 THE EXECUTIVE SCRAP HEAP it. He will find himself in a group of men who are still carrying on in large and successful ways, men whose kindred experiences have given them an open and understanding heart, a sort of a Ford Alumni Association, a postgraduate group who have taken the third degree , doctors of a new philosophy not taught in the universities; a fraternal order, in which there is a buoyant spirit of freedom. Its doors are always open, night and day, and the sentinel stands without, for no one can tell when a new bunch of candidates may arrive. If you begin to make inquiries concerning the founders of the organization, the original stockholders who financed Mr. Ford in the beginning , you will discover that not one of them is associated with him in the business to-day. Mr. John S. Gray, stockholder and first president of the company, died while in office. He is the only Ford official of prominence, so far as I know, removed by death. Others have gone in other ways. The inventor who reaps the reward of his labor is the exception. Mr. Ford is one of the outstanding exceptions. A minority stock119 HENRY FORD holder in the beginning, he gained a controlling interest in a short time through the purchase of the Malcomson stock. Some years later he acquired the stock that remained in the hands of its original holders. He paid liberally for it. For every thousand put into the business he returned millions. Whether he believed in stock companies or not, at the time the Ford Motor Companywas organized, I do not know. In after years he came to regard them with disfavor. Stockholders , in his opinion, as he expressed it, were in danger of becoming "parasites." And so in time the stockholders went. Mr. James Couzens, original stockholder, a director and an executive in one capacity or another for twelve years. Mr. John F. Dodge, original stockholder,director and, for a time, vice-president of the company. Mr. Horace E. Dodge, original stockholder and director. Mr. John W. Anderson, original stockholder and director. 120 THE EXECUTIVE SCRAP HEAP Mr. Horace H. Rackham, original stockholder and director. The Gray brothers, Philip, Paul and David, stockholders following the death of their father, and David a director of the company. Mr. Alexander Y. Malcomson, original stockholder and for two years treasurer of the company, made his bow and exit shortly after the curtain went up on the first act. He has the distinction of heading the line in the great executive trek. He was in reality the organizer and founder of the company. It was the liberal financial backing which he gave, together with the proceeds from the sale of stock which he was chiefly instrumental in placing, that put the organization on its feet in the beginning and made it a going concern. Mr. James Couzens,for some time Mayor of Detroit, and at present United States Senator from Michigan, left the company in 1915. He had entered it at the time of its organization as bookkeeper, time clerk, purchasing agent, sales manager, and business manager. Down to the time of his resignation he shared in the mind of the public, and justly so, equal honors 121 HENRY FORD with Mr. Ford for the phenomenal success of the company. Henry Ford needed in his early years a man capable of managing his business and capitalizing his mechanical genius...