FORD’S LATEST.

Dunstan Times, Issue 3378, 13 June 1927, Page 2

FORD’S LATEST.

Henry Ford is engaged in a new experiment, and he is teaching his theories of how the cost of living can be reduced by applying the well-known Ford principles of quantity production and machine-like efficiency. He has taken about 2,000,000 dollars* of his billion and a-half fortune and put it to work in the general merchandise business. He offers standard brands of every sort of goods imaginable—chewing gum, sealing wax, cabbages, porter-house steak, silk stockings, bread and butter .and eggs — whatever one finds in any well managed department store at prices'from 40 to 10 per cent, below the standard retail price. Already his experiment, which he started quietly three ’ years ago } has made him probably Detroit’s leading merchant. Thousands patronise his store out at Highland Park on the outskirts of Detroit. He turns over his stock 48 times a year—that is the secret of it —and makes, it is understood, five per cent, on his two-million dollars’ investment. Thus far the motor magnate has not attempted to go into mercantile lines excepting at his own plants, but he is confident that any man with 2,000,000 dollars to use as working capital and a location where there is a large market for staple goods, can do the same thing he is doing. But Detroit merchants are up in arms against Ford. In fact, a boycott was initiated against him and his motor cars'. The explanation given for the antagonism of his home-town folks was that he sold groceries at prices far below those of retail merchants. When protest was raised another big store was opened, and then a third. Thousands upon thousands of customers — not Ford’s workers —croivded to the Ford stores daily. The merchants of Detroit decided that since they were at the mercy of Ford’s ruthless price-cutting all they could do was to refuse to buy Ford’s own products and to urge others to do the same. Thesfe competing retailers accordingly declined point blank to accept delivery of merchandise if brought to their doors in Ford trucks. As a result manufacturers and wholesalers ceased buying Ford trucks and passenger cars. One Detroit citizen said: “Ford is making more enemies than cars. He has done his best—or his worst —to antagonise bankers all over the country. His fierce attacks on the Jews have naturally turned them into enemies. Ho is not nearly as popular with labour as he used to be. And now he has brought on his head a boycott in his own city and has aroused the illwill of retail merchants throughout the country.”

The latest development in the boycott against the automobile magnate is that officials of the Ford Motor Company and the Michigan Retail Grocers’ Association have reached an agreement whereby the Ford organisation has arranged to discontinue sale of foodstuffs and merchandise to the general public, it was announced after a protracted meeting in Detroit. Announcement that the Ford Company was willing to discontinue sales to the public was made by G. IST. Staples, general manager of the Ford Stores, after representatives of the Merchants’ Association had assailed the practice as a scheme to drive the small dealer out of business.

Approximately 1000 members of the association, which was the prime mover in the boycott against Ford products, attended the meeting. The announcement came as a • dramatic climax. Speakers fought for the floor to denounce the automobile manufacturer, who had opened a string of stores at his plants. Mr Staples arose in the midst 'of the hectic discussion, and obtaining recognition from the chairman, declared that he had been authorised to announce that the commissaries would be closed to all but Ford employees. The statement was greeted by a wild outburst of cheering.

Ford’s grocery organisation will still l)c able to function on a large scale, as lie has several hundred thousands of employees in America, and they are delighted at the benefits of lower prices and high-class goods they are enabled to purchase, thereby effecting a considerable saving in the cost of present-day living expenses.