OT - Ford Motor Company Investors

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Model T Ford Forum: Forum 2014: OT - Ford Motor Company Investors
Top of pagePrevious messageNext messageBottom of page Link to this message  By Rob Heyen - Nebraska on Thursday, February 06, 2014 - 06:13 pm:

I've been looking at the original Ford Motor Company investors. Below is a spreadsheet listing the investors, along with the number of dollars invested and shares of stock they owned.

History tells us there was a struggle between Henry Ford and A. Y. Malcomson over the direction of the company. I'd like to hear your opinions. Which would you call "Ford men" (siding with Henry Ford) and "Malcomson men"? There are no right or wrong answers.

Rob



According to "The Henry Ford" website, Alex Malcomson funded Henry Ford in the Ford and Malcomson Partnership, but did not place additional money in Ford Motor Company when the company was formed. He and Henry Ford each held 26% of Ford Motor Company stock.


Top of pagePrevious messageNext messageBottom of page Link to this message  By Ron Patterson-Nicholasville, Kentucky on Thursday, February 06, 2014 - 07:53 pm:

Rob
On July 6, 1906 John Grey suddenly passed away, his shares going to his residual estate.
On July 12, 1906 Henry Ford bought Malcomson's 255 shares for $175,000.
Malcomson's close friends; Woodall,Fry and Bennett sold their shares soon thereafter in September; Woodall sold his 10 shares to Henry Ford, Bennett sold his 50 shares (35 shares to Couzens and 15 shares to Henry Ford) and Fry sold his 50 shares to Ford. Strewlow then sold his 50 shares to Couzens.
At that point Henry Ford was the majority stockholder with 585 shares, Couzens 110 Shares, Grey estate 104 shares, John Dodge 50 shares, Horace Dodge 50 shares John Anderson 50 shares and Horace Rackham 50 shares.
Henry Ford and James Couzens now had majority control.
That situation would remain unchanged till 1919 when HF sent Edsel off on a mission to quietly and successfully buy out the remaining shareholders making HF sole owner of Ford Motor Company.
The source of this information is the book, Ford: the Times, the Man, the Company, Allen Nevins, 1954, the first of a three part series considered the be the definitive historical treatise on the history of Ford.
Ron the Coilman.


Top of pagePrevious messageNext messageBottom of page Link to this message  By Rob Heyen - Nebraska on Friday, February 07, 2014 - 09:02 am:

Below are the numbers for those investors who sold in 1906 and 1907. To the right are the investors and sales numbers for Ford Manufacturing.


Top of pagePrevious messageNext messageBottom of page Link to this message  By Ron Patterson-Nicholasville, Kentucky on Friday, February 07, 2014 - 09:53 am:

Rob
I believe Rackham and Anderson were partners in a Detriot law practise.
Ron the Coilman


Top of pagePrevious messageNext messageBottom of page Link to this message  By Rob Heyen - Nebraska on Friday, February 07, 2014 - 10:58 am:

Ron,
Yes, they were Malcomson's attorney's. Anderson was initially one of the directors, then quit the board and was replaced by his partner Rackham. Both were also investors with Ford Manufacturing Company.

I think it's interesting that all the Ford Motor Company investors except the Dodge brothers were friends, associates or relatives of Alex Malcomson.

Many Ford historians say Malcomson was "forced" to sell his stock in FMC, or settled for "only $175,000." However, when one looks at the price per share, it was quite high compared with the other shareholder selling shares in 1906. Another thing to consider, the sale of his shares (Malcomson) was finalized in July or August 1906. 1906 was not a good year for Ford Motor Company, the Model K was not available in numbers until May, and the Model N was way behind production schedule, not reaching market until mid July 1906.

The investors selling in 1907 had (in my opinion) much more marketable stock, with Ford becoming the largest auto maker in 1907, and Models N, R and K all making FMC a lot of money. Yet, Malcomson's 1906 price of $686 per share was only bested by one of the shareholders selling out in 1907, Bennett, who received $700 per share.

Rob


Top of pagePrevious messageNext messageBottom of page Link to this message  By Rob Heyen - Nebraska on Friday, February 07, 2014 - 11:03 am:

I meant to add, looking at the Ford Manufacturing Company, one investor "made out like a bandit", Henry Ford. With 58% of the shares, he was in control financially, from beginning to the end of that companies existence.

Who says Henry Ford wasn't an astute businessman?


Top of pagePrevious messageNext messageBottom of page Link to this message  By Darel J. Leipold on Friday, February 07, 2014 - 11:43 am:

There was a women who invested $100 and held onto the shares until 1919. She is not listed here. I believe she was a secretary to one of the investors listed.


Top of pagePrevious messageNext messageBottom of page Link to this message  By Rob Heyen - Nebraska on Friday, February 07, 2014 - 12:14 pm:

Darel,

I believe that was James Couzens sister, Rosetta. She received about $262,000 in 1919 for her $100 "loan" to her brother. Pretty good ROI.

:-)


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