Prosperity First

To keep up with the post-World War II demand for new cars. Ford Motor Co. has spent $1.7 billion to expand and modernize plants and equipment. Last week, in a speech before the Bureau of Advertising of the American Newspaper Publishers Association&* at Manhattan's Waldorf-Astoria hotel. President Henry Ford II admitted that even those husky figures had not been enough. Said he: "The booming market for both new and used cars has frankly been something of a surprise, even to us." To keep up with the expanding market, said he. Ford will spend an additional $625 million on new plants and equipment over the next three years.

Fine Whipping Boy. For those who raised the cry that the increased automation in new plants will throw people out of work, Ford had a ready answer: "Automation is a perfectly logical, tactical propaganda weapon, for the labor leaders. It's a fine whipping boy . . . [But] let's not kid ourselves . . . that automation is a genuine current issue. It's a grossly inflated issue--as most labor economists well know." From 1950 to 1955, a period of great modernization at Ford, jobs actually increased by 30,000 (up 21%) and wages by more than $381 million (up 66%).

Referring to the U.A.W.'s threat to strike, if necessary, to get some form of guaranteed annual wage in current negotiations, Ford said: "Today, both management and workers know that a major strike could dump the applecart of our present and prospective high prosperity--and nobody wants that. Ford Motor Co.'s management has every determination to arrive at a fair agreement in the best interests of our employees, our company, the automobile industry and the public at large. We believe our employees are realistic and sensible people, and just as eager as we are for the continuation of what has been a generally happy and profitable period. We wish we could be sure that all union leaders feel the same way."

Dangerous Medicines. Ford made it clear that he did not like GAW. U.S. industry can provide "a solid foundation of security under every American home and family . . . without piecemeal experimenting with dangerous medicines on guinea-pig industries." Said he: "Overall prosperity is the first determinant of the level and stability of employment. No private industry plan can long maintain high employment in the face of a downward business trend . . . I, for one, am highly impatient with the reactionary thinking of some union leaders . . . who are generally wedded to the mean and miserly concept of a mature economy that's going nowhere--in short, the advocates of guaranteed annual stagnation. I am just as impatient with the slavish and stereotyped thinking which has led some businessmen to consider 'security' a bad word, and to brand all concern for human and social progress as Communism or 'creeping socialism.' "

Automakers, who have suspected that the U.A.W. will force a showdown with Ford first in its GAW fight, last week got another strong hint from the union. The General Motors contract had been due to expire May 29, two days before Ford's, thus making G.M. the first target. But last week the U.A.W. extended G.M.'s contract nine days, putting Ford under the gun first.

* For other news of the publishers, see Press.

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