Ford's Business

Only by indirection does Henry Ford reveal the extent of his business and of his profits, whereas practically every other business organization in the U. S. furnishes its financial statements willingly. The reason lies in the fact that such other concerns wish to establish the value of their stocks and bonds. Indeed those listed on the New York Stock Exchange must do so. On the other hand Ford neither lists his stocks nor seeks public financial support.

Massachusetts requires an annual statement of the Ford Motor Co. That statement filed last April showed their assets to be $742,913,568, surplus $622,366,893 (TIME, April 19). For a fortnight statisticians wiggled estimates and surmises around these figures, guessed variously at Ford profits. The best guess was that he made from $45 to $55 a car. Ford and his staff kept silent.

Last week in Detroit concrete figures about past profits--those of the seven years 1917-24--were hauled into court. The Parker Rustproof Co. is asking royalties of about $1,000,000 from the Ford people for the supposed infringement of patent in the use of a rustproofing process. The Ford company claims that the process was never used as a selling inducement and wishes to pay only established royalties.

Midst the legal arguments figures were retailed. Ernst & Ernst, public accountants who audited the Ford business for those seven years on behalf of the Parker company, say Ford's net profits during 'that period totaled $702,080,001.73. Ford's auditors claim his net profits then were only $526,441,951, although his gross profits were $876,176,230. The case is expected to move up to the U. S. Court of Appeals.

In 1924 he profited $25,000,000 by shipping parts to district assembling plants, putting them together there and then charging the f. o. b. selling price.

Individual car profits range from less than 1% on some models to 40% on others.

Sometimes he actually loses money in order to maintain production and employment and to keep up a sales-teasing price. Thus in twelve days, Jan. 1 to 12, 1924, he lost $232,000 on 76,295 open cars--cost $18,005,000, selling price $18,237,000.