MILLIONS OF MONEY.

Taihape Daily Times, Issue 220, 20 March 1917, Page 2

MILLIONS OF MONEY.

HOW £4OO BECAME £13,000,000. BY BUILDING MOTOR CARS. Some interesting facts were disclosed on affidavit in the recent law case between H. Ford and Messrs. Dodge Bros., two of the biggest automobile makers in America. It appears that when Henry Ford started making cars on his own account in 1903—just over 13 years ago it will be noted—he entered into an agreement with the brothers Dodge, who were engineers and machinists in Detroit, to manufacture certain parts for him, on the basis of accepting certain portions of the payments upto £4OO, being a portion of their profits, in shares in his company in lieu of cash. The arrangement proved satisfactory to both parties, and the Dodge Bros, thus became interested directly in the Ford business to the above amount. The business, then small, prospered, and in 1908 the Ford Company was incorporated, to extend business, with a capitalization of £400,000, the Dodge interest in the capitalization being 10 per cent, or £40,000, 10,000 per cent, increase in five years it will be noted. Then came future prosperity, the Dodge Bros, continuing to make parts for the Ford concern, on which they made their manufacturing profit, as well as participating to the extent of 10 per cent, in the Ford profits, and it is stated in an affidavit made by the Ford Company in the case referred to that from first 10 iast the Dodge Bros, have received dividends ag- ' gregating no less than £1,114,300 on | their original investment out of profits of £2,000, whilst the value of their preI sent 10 per cent, holding in the Ford Company is states to be equal to £lO,000,000—a further capital increase in the eight years of the present company of 25,000 per cent., or, on their original investment 2,500,000 per cent. Further f than this it is stated that the value of the contracts executed by Dodge Bros. * for the Ford firm during the period they were working for it aggregated no , less than £5,400,000, on which it is estimated they made a profit of at least * £2,000,000. Thus it will be seen how, S in the short space of 13 years £4OO became over £13,000,000. Surely the wild- \ cst dream of El Dorado, the mythical ► land of wealth, are eclipsed by some of 1 1 the figures connected with the Ameri- [ can Motor Industry.