120 years ago today, June 14, 1905; Ford is in the business of printing money.

[Rob]

Ford Motor Co. was an immediate success financially. Within months of their first sale, the company issued stock dividends to investors. In many cases, the dividend actually paid a portion of some investors commitment (agree to stock purchase), as several had not paid actual cash, or their full commitment, but issued notes (loans) to pay in later.
"I'll gladly take some Ford Motor Co. (FMC) stock today if you'll allow me to pay later......."
However, on this day (June 14, 1905) 120 years ago, it became apparent FMC was indeed a force to be reckoned with in the fledgling U.S. auto industry. On this day at the monthly FMC Board of Directors meeting, with all directors present (John Gray - President, Henry Ford - Vice President, Alexander Malcomson - Treasurer, James Couzens - Secretary (non-voting member), John Dodge and John Anderson, a very short meeting ended with the motion, 2nd and passed resolution attached.

The Board of Directors, with little if any discussion, passed a resolution for 100% dividend! Payable at once. A little context. First, FMC was approaching the end of the automobile sales season. For the first time (the company had just completed their second year of existence) the company offered three models. While the price needed to be reduced on the two cylinder models (C and F) sales had been brisk. The company's first four cylinder Model B was a sales success, with most of the planned 500 "B" sold by this time.
However, a 100% dividend? And not 100% of each shareholder's investment amount. For example, Henry Ford put no money in. His contributions (for his 25.5% of the company's stock) were his expertise, the contracts he had let, and his patents. Alexander Malcomson's contribution? He had put in about $7,000 of his own money prior to incorporation, when he and Henry Ford were equal partners (began in 1902). Both he and Henry Ford's capitalized stock (self valued by the company incorporation papers) was $25,500. Let me repeat, the assigned stock value of each man was $25,500. Therefore, they each received as their dividend $25,500! Once more, for context, that dividend to Henry Ford and A. Y. Malcomson, in todays value was over $890,000!
A Detroit Press article later in the summer "sniffed out" the numbers, and reported the following; "Record-Breaking Distribution of Profits by Ford Motor Co."

But, like a Ginsu Knife commercial, wait, there's more. Not only had every shareholder received a dividend of significantly more than their original investment, this wasn't the end. One month later, the BOD minutes look like a duplicate of the June board meeting.

At the July 22 1905 BOD meeting, James Counzens (CFO) "read the report of business done, profits etc. for the month of June, also reported the present financial standing." Evidently that was a good report. The next order of business; "Mr. Malcomson moved, Mr Ford seconded that we declare a dividend of 100%. Payable at once."
This time, President John Gray voted "no." However, the motion passed. In one month, the investors in Ford Motor Co. were to receive 200% of the companies self-assigned value, $51,000. Today's value - about 1.8 million dollars. Attached is a spreadsheet showing each shareholders capitalized stock value. It includes their 200% dividend amount, and conversion to today's value.
Where does this take us? What shareholder, in their right mind, would do anything but strap in and reap the gravy? This company is the goose laying the golden egg. Who in their right mind would upset this money-printing apple cart?

1905 was a very good year!

This spreadsheet shows the amount each shareholder initially invested with FMC, and the resulting 1905 dividends, and current value conversion:

[TXGOAT2]

1905 was indeed a good year..... and NO INCOME TAX!