Ford was very well known for many things, but he did have what the general public considered less admirable attributes. In Ford Motor Company, which was actually not Henry Ford's first company, Henry Ford was said to be obsessed with control over almost everything. In his tyranny, Ford constantly discouraged change, especially changes in management and work force. Ford despised labor unions very much. In 1934, when President Franklin Roosevelt passed the extensive New Deal, the United Automobile Workers organization was created. Almost all of the automobile companies, like Chrysler and General Motors (GM), joined this organization very quickly. The one that lagged behind was Ford Motor Company. Ford used intimidation, violence, and sometimes fear to prevent unions from arising, until he gave in in 1941 ("Henry Ford" American 1). Harry Bennett, Ford's head of security, was hired to use such measures. Under Bennett's watch, workers were not allowed to talk to one another and were on a very strict regiment of work and behavior. Bennett created somewhat of a police force in Ford's factories ("Henry Ford" The American Experience).
Also for the sake of his company, Ford wanted to start expanding his company to include many aspects of the automobile production, even the growth of the raw materials. Ford actually bought land in the Amazon rain forest in South America to grow rubber for his company's tires. Ford constantly was expanding his company. Ford Motor Company also bought out a movie making company, which has essentially no relevance to automobiles. The first movie that came out was a self promotion of Ford and his company ("Henry Ford" The American Experience). Ford continued his desire to expand the company's power. He, when the only plant that Ford Motor Company had was Highland Park (Top Left), wanted to build another factory. In this factory he wanted to produce rubber, wood, and steel, which were essential materials to build automobiles (Cahill 28). This seems very similar to Andrew Carnegie's vertical integration.
The Ford Motor Company was involved in two major lawsuits. The first was with a man by the name of George Selden. Selden was know for his official United States patent on the gasoline engine. Because of this motor, anybody who made a vehicle with a gasoline engine, would owe Selden a fee. Ford made the Model T's with gasoline engines and never paid any fees. Selden then sued Ford and threatened to shut the company down. Ford, furious with this threat on his company, became enraged and spoke out in court. Because the company did not pay the fines that it owed and possibly because of Henry Ford's outburst, Ford Motor Company lost the lawsuit. Henry Ford, who was displeased with the results, filed for a repeal. In between the court's decision and the repeal, James Couzens, a prominent member of the Ford Motor Company board of directors, almost sold Ford Motor Company to Selden before Ford found out. When Ford discovered this betrayal, he exploded in a fit of rage. In the repeal case, Ford emerged victorious. In the end, he took a peace pipe, even though he usually did not smoke, and passed it around to symbolize the creation of peace between Selden and Ford (Collier and Horowitz 53-58).
The other major lawsuit was between Henry Ford and two members of his board of directors, the Dodge brothers. The Dodge brothers did not like Ford's financial decisions. Ford believed that lowering the price of the Model T would be beneficial in the long run. He thought that the dividends would decrease a little but in the long run, the stockholders would make more money ("Henry Ford's Business Philosophy" 1). At this same time, Ford wanted to build another factory. This idea was shot down by the Dodge brothers because they believed that was wasting money, considering that Ford did not give out what the Dodge brothers considered large enough dividends. The Dodge brothers sued Ford for larger dividends. The Dodge brothers won and earn money to fuel their competing business. Ford, disgusted with stockholders, decided to systematically rid the company of them. He started his own little business in 1941, which is why he stepped down from the presidency of the Ford Motor Company. This caused skepticism in the stockholders, who were then willing to sell their stocks. Ford bought their stocks and turned the corporation into a family business. From there he built the River Rouge plant, which is the picture below ("Henry Ford" The American Experience).
With his $5.00 a day salary, Ford provided incentives for the workers to continue to stay at the Ford Motor Company. Utilizing this fact, Ford established a sociological department, which served to investigate the workers' behaviors and lives inside and outside of the workplace. Ford had standards that he wanted everybody to live up to including: no smoking, no drinking, and no possible abuse at home. If failed the first investigation, they were given a warning and told to change. If they failed the second investigation, they were fired. Ford also had all of his employees, most of whom were immigrants, to learn English. Ford believed that the immigrants should become more American ("Henry Ford" The American Experience).
Ford did many seemingly controversial things, but for the greater good of his company. Having absolute control, especially of one of the most successful businesses in America, and possibly the world, is a good idea. It would have been a bad idea for Ford to have no control, when they were people, like the Dodge brothers, who want to benefit themselves at the expense of Ford Motor Company. Ford wanted to provide everybody with a working automobile. If he had his own rubber production process, then he could afford to lower the price and bring his company closer to the goal of everybody having an automobile. Building the River Rogue was a brilliant idea, because it would produce more Model T's, which would lower the price even more, as well as provide much more employment to the working class. On the topic of watching his workers, that is also a brilliant idea. Workers who make, what Ford considered as, bad decisions at home are the workers who will have the shoddy performance in the work place. Ford was looking out for his company and helping the workers succeed, even if that meant invasion of privacy.
Pictures:
Header: "Ford Motor Company Detroit Black Car Cover Logo"
Side: "Highland Park"
Bottom: "Ford River Rouge Plant 1927"
Also for the sake of his company, Ford wanted to start expanding his company to include many aspects of the automobile production, even the growth of the raw materials. Ford actually bought land in the Amazon rain forest in South America to grow rubber for his company's tires. Ford constantly was expanding his company. Ford Motor Company also bought out a movie making company, which has essentially no relevance to automobiles. The first movie that came out was a self promotion of Ford and his company ("Henry Ford" The American Experience). Ford continued his desire to expand the company's power. He, when the only plant that Ford Motor Company had was Highland Park (Top Left), wanted to build another factory. In this factory he wanted to produce rubber, wood, and steel, which were essential materials to build automobiles (Cahill 28). This seems very similar to Andrew Carnegie's vertical integration.
The Ford Motor Company was involved in two major lawsuits. The first was with a man by the name of George Selden. Selden was know for his official United States patent on the gasoline engine. Because of this motor, anybody who made a vehicle with a gasoline engine, would owe Selden a fee. Ford made the Model T's with gasoline engines and never paid any fees. Selden then sued Ford and threatened to shut the company down. Ford, furious with this threat on his company, became enraged and spoke out in court. Because the company did not pay the fines that it owed and possibly because of Henry Ford's outburst, Ford Motor Company lost the lawsuit. Henry Ford, who was displeased with the results, filed for a repeal. In between the court's decision and the repeal, James Couzens, a prominent member of the Ford Motor Company board of directors, almost sold Ford Motor Company to Selden before Ford found out. When Ford discovered this betrayal, he exploded in a fit of rage. In the repeal case, Ford emerged victorious. In the end, he took a peace pipe, even though he usually did not smoke, and passed it around to symbolize the creation of peace between Selden and Ford (Collier and Horowitz 53-58).
The other major lawsuit was between Henry Ford and two members of his board of directors, the Dodge brothers. The Dodge brothers did not like Ford's financial decisions. Ford believed that lowering the price of the Model T would be beneficial in the long run. He thought that the dividends would decrease a little but in the long run, the stockholders would make more money ("Henry Ford's Business Philosophy" 1). At this same time, Ford wanted to build another factory. This idea was shot down by the Dodge brothers because they believed that was wasting money, considering that Ford did not give out what the Dodge brothers considered large enough dividends. The Dodge brothers sued Ford for larger dividends. The Dodge brothers won and earn money to fuel their competing business. Ford, disgusted with stockholders, decided to systematically rid the company of them. He started his own little business in 1941, which is why he stepped down from the presidency of the Ford Motor Company. This caused skepticism in the stockholders, who were then willing to sell their stocks. Ford bought their stocks and turned the corporation into a family business. From there he built the River Rouge plant, which is the picture below ("Henry Ford" The American Experience).
With his $5.00 a day salary, Ford provided incentives for the workers to continue to stay at the Ford Motor Company. Utilizing this fact, Ford established a sociological department, which served to investigate the workers' behaviors and lives inside and outside of the workplace. Ford had standards that he wanted everybody to live up to including: no smoking, no drinking, and no possible abuse at home. If failed the first investigation, they were given a warning and told to change. If they failed the second investigation, they were fired. Ford also had all of his employees, most of whom were immigrants, to learn English. Ford believed that the immigrants should become more American ("Henry Ford" The American Experience).
Ford did many seemingly controversial things, but for the greater good of his company. Having absolute control, especially of one of the most successful businesses in America, and possibly the world, is a good idea. It would have been a bad idea for Ford to have no control, when they were people, like the Dodge brothers, who want to benefit themselves at the expense of Ford Motor Company. Ford wanted to provide everybody with a working automobile. If he had his own rubber production process, then he could afford to lower the price and bring his company closer to the goal of everybody having an automobile. Building the River Rogue was a brilliant idea, because it would produce more Model T's, which would lower the price even more, as well as provide much more employment to the working class. On the topic of watching his workers, that is also a brilliant idea. Workers who make, what Ford considered as, bad decisions at home are the workers who will have the shoddy performance in the work place. Ford was looking out for his company and helping the workers succeed, even if that meant invasion of privacy.
Pictures:
Header: "Ford Motor Company Detroit Black Car Cover Logo"
Side: "Highland Park"
Bottom: "Ford River Rouge Plant 1927"