After reading a lot of Rob's info regarding the Model K and whether or not Henry hated it, I started wondering how big a fish Henry was in the hierarchy in relation to some of the major stockholders. Did he own more than 50% or did he have to knuckle under to the stockholders?
that is a long and interesting story. here is a short version which dates may not be so accurate. ford hated paying stock royalties, so in about 19, he anounced he was going to quit and give up leadership, causing stock values to decline, then he shut down the factory for a few months and shipped all the inventory to the dealers COD to come up with the cash to buy them all out.
I think it was in 1916, he owned 51% of the company. About December 1918 Ford said he was turning it over to Edsel and retiring, and in 1919 stated he would build a new car cheaper than he was making already in a new company.
This was done solely to buy out all the stockholders, specifically the Dodge Brothers, so he could own 100 percent of the company.
He paid 25 million dollars to the Dodges for their shares. In less than 20 years, they made a crapload of millions on a 10 thousand dollar investment. Remember, the early Fords were entirely manufactured by Dodge except for bodies and tires.
I believe had it not been for the Dodge Brothers, Ford Motor Company would not have been as successful.
The Dodges only had 2000 shares between the two of them
This is how the percentage of shares were originally allocated. Also shown are the amounts investors received who sold in 1906-1907:
Henry Ford owned over half of the company shares by July 1906. However, Board of Directors votes were not weighted by percentage of shares owned. From James Couzens biography:
One inflation calculator states that $5000 investment would be a $130000 investment today. So Dodge brothers invested 260K. That would have been a lot of money to come up with expecially back in 1906.
Several of the investors, such as the Dodge's, provided services instead of the full amount. Without looking it up, I believe DB provided the first service/materials instead of cash. The attorneys provided some work too (instead of total cash). I believe total cash was $28,000 with the remaining "pledged." I have a link that lays it out well if I can find it.....
This is a pretty good link. Dodge's contributed $10,000 in labor and materials:
Seeing this thread makes me remember going to the centennial of the Ford Motor company in 2003.
During the celebration there was a small meeting at the Benson Ford Archives. My son and I got there early. We were the only two there besides the speaker, Trent Boggess. Trent was, and still is a person who I wanted to hear any word he had to say about the early Ford Motor Company. The first say, eleven years are full of pivotal moments that shaped the way of the future for Ford and the way it influenced the world.
Well since it was just Trent and my son and myself we were able to talk one on one. I gave him a photo I had come across of a torpedo roadster that I wanted him to see, so we talked about that.
Before the meeting room got full Trent put on some white cotton gloves and showed us what was on the front table. One of the items was Henry Ford's stock certificate, dated I think June of 1903!
When I think of the influence that the products of that company have had over the years I know that the world is a different place than it had been because of what that stock certificate represented.