Banker Ford

One of Henry Ford's favorite pastimes is buying from and selling to himself. For some time Manufacturer Ford has been paying Railroad Operator Ford for motor material shipments over the Detroit, Toledo & Ironton R. R. At length, it seemed advisable to double-track this line from Flat Rock to Durban. Mich. To do this, about $1,181,000 was needed, and the master of the D. T. & I. accordingly desired to issue 5% bonds of the line for this amount.

Mr. Ford's opinion of bankers has been frequently expressed. He, at any rate, had no intention of letting a bank or syndicate charge 5 or 10% for underwriting his new D. T. & I. 5's. Accordingly, he decided to buy them all himself, and at par. There seemed little use in Banker Ford's charging 5% to Railroad Owner Ford.

If the enterprise involved had been a new motor plant, the news of Mr. Ford's activities as banker and investor might have attracted no attention. Railroads, however, are in a class apart, no matter who owns them. Permission to increase railroad capital or debt must be respectfully submitted to the Interstate Commerce Commission for its approval. On the docket of that body, therefore, will shortly come up the request of Henry Ford, owner of the D. T. & I. that he be permitted to sell $1,181,000 of the roads's 5% bonds to Henry Ford, automobile manufacturer, at par.