MTFCA Forum

December 16, 1905; eleven days after the Ford Motor Co. (FMC) Board of Directors (BOD) sent an official letter demanding A.Y. Malcomson resign his position of director and treasurer of FMC.

Below is the letter (with transcription) Malcomson wrote to the BOD, received 120 years ago today:
This letter, preserved for history in a file with FMC Board minutes, set the stage for historical conclusions that survive to this day. Two primary reasons were listed as to why Malcomson felt he should retain his position of leadership in the company, in spite of his position as President and primary owner of a competing company. The two points I’m focusing on are highlighted below:
The two points I highlighted (with a “#1” and #2” in red) have influenced historical views regarding A.Y. Malcomson’s influence as well as the direction Ford Motor Co. was moving in before, and after Malcomson’s refusal to resign from the board.

Next, examining Malcomson’s letter.

Moving forward;
Malcomson raised two reasons why he should continue as a director at Ford Motor Co. First (1.), because James Couzens (referred to as “Manager” in Malcomson’s letter) was awarded $8,000 annual salary in September 1905. Below is a copy of the portion of the meeting where Couzens salary was approved. Malcomson was present, and voted with all other directors to approve the raise.

Secondly (2.), Malcomson makes assertions about Ford Manufacturing Co. that will be the impetus for the theory put forward by future Ford historians that Ford Manufacturing Co. was created to take away profits from Ford Motor Co. in order to force Malcomson and others to sell their stock. My opinion of this “theory” is included in the pages below: