Date: 4-15-01
PEOPLE IN AMERICA #1817 - HENRY FORD - PT. 2
By RICHARD THORMANANNCR:
PEOPLE IN AMERICA, A PROGRAM IN SPECIAL ENGLISH ON THE VOICE OF
AMERICA.
EVERY WEEK AT THIS TIME, WE TELL THE STORY OF A PERSON IMPORTANT
IN THE HISTORY OF THE UNITED STATES. TODAY, STEVE EMBER AND
FRANK OLIVER COMPLETE THE STORY OF INDUSTRIALIST HENRY FORD.
(THEME)
VOICE ONE:
IN NINETEEN-OH-THREE, A DOCTOR IN DETROIT, MICHIGAN, BOUGHT THE
FIRST CAR FROM THE FORD MOTOR COMPANY. THAT SALE WAS THE
BEGINNING OF HENRY FORD'S DREAM. HE WANTED TO BUILD GOOD,
LOW-PRICED CARS FOR THE GENERAL PUBLIC. AS HE SAID MANY TIMES:
"I WANT TO MAKE A CAR THAT ANYBODY CAN BUY.
TO KEEP PRICES LOW, HENRY FORD DECIDED THAT HE WOULD BUILD JUST
ONE KIND OF CAR. HE CALLED IT THE "MODEL T."
VOICE TWO:
THE "MODEL T" WAS READY FOR SALE IN OCTOBER, NINETEEN-OH-EIGHT.
THE "MODEL T" COST EIGHT-HUNDRED-FIFTY DOLLARS. IT WAS A SIMPLE
MACHINE THAT DRIVERS COULD DEPEND ON. DOCTORS BOUGHT THE "MODEL
T." SO DID FARMERS. EVEN CRIMINALS. THEY CONSIDERED IT THE
FASTEST AND SUREST FORM OF TRANSPORTATION. AMERICANS LOVED THE
"MODEL T." THEY WROTE STORIES AND SONGS ABOUT IT. THOUSANDS OF
"MODEL T'S" WERE BUILT IN THE FIRST FEW YEARS. THE PUBLIC WANTED
THE CAR. AND HENRY FORD MADE MORE AND MORE.
VOICE ONE:
TO MAKE THE "MODEL T,' FORD BUILT THE LARGEST FACTORY OF ITS
TIME. INSIDE THE FACTORY, CAR PARTS MOVED TO THE WORKERS EXACTLY
WHEN THEY NEEDED THEM. OTHER FACTORIES MOVED SOME PARTS TO THE
WORKERS. BUT FORD WAS THE FIRST TO DESIGN HIS FACTORY COMPLETELY
AROUND THIS SYSTEM. PRODUCTION ROSE SHARPLY.
AS PRODUCTION ROSE, FORD LOWERED PRICES. BY NINETEEN-SIXTEEN,
THE PRICE HAD DROPPED TO THREE-HUNDRED FORTY-FIVE DOLLARS.
THE LAST STEP IN FORD'S PRODUCTION SUCCESS WAS TO RAISE HIS
WORKERS' PAY. HIS WORKERS HAD ALWAYS EARNED ABOUT TWO-DOLLARS
FOR TEN HOURS OF WORK. THAT WAS THE SAME DAILY RATE AS AT OTHER
FACTORIES.
WITH WAGES THE SAME EVERYWHERE, FACTORY WORKERS OFTEN CHANGED
JOBS. HENRY FORD WANTED LOYAL WORKERS WHO WOULD REMAIN. HE
RAISED WAGES TO FIVE DOLLARS A DAY.
VOICE TWO:
THAT MADE HENRY FORD POPULAR WITH WORKING MEN. HE BECAME POPULAR WITH CAR BUYERS IN NINETEEN-THIRTEEN WHEN HE GAVE BACK FIFTY DOLLARS TO EACH PERSON WHO HAD BOUGHT A FORD CAR. HENRY FORD WAS DEMONSTRATING HIS IDEA THAT IF WORKERS RECEIVED GOOD WAGES, THEY BECAME BETTER BUYERS. AND IF MANUFACTURES SOLD MORE PRODUCTS, THEY COULD LOWER PRICES AND STILL EARN MONEY.
THIS SYSTEM WORKED FOR FORD BECAUSE PEOPLE CONTINUED TO DEMAND
HIS "MODEL T." AND THEY HAD THE MONEY TO BUY IT. BUT WHAT WOULD
HAPPEN WHEN PEOPLE NO LONGER WANTED THE "MODEL T," OR DID NOT
HAVE THE MONEY?
VOICE ONE:
IN NINETEEN-NINETEEN, HENRY WAS INVOLVED IN A DISPUTE WITH THE
OTHER PEOPLE WHO OWNED STOCK IN THE FORD MOTOR COMPANY. IN THE
END, HENRY BOUGHT THE STOCK OF THE OTHER INVESTORS. HE GAINED
COMPLETE CONTROL OF THE COMPANY.
THE INVESTORS DID NOT DO BADLY, HOWEVER. AN INVESTMENT OF
TEN-THOUSAND DOLLARS WHEN THE COMPANY WAS FIRST ESTABLISHED
PRODUCED A RETURN OF TWENTY-FIVE-MILLION DOLLARS.
A FEW YEARS LATER, ANOTHER GROUP OF INVESTORS OFFERED FORD
ONE-THOUSAND-MILLION DOLLARS FOR THE COMPANY. BUT HE WAS NOT
INTERESTED IN SELLING. HE WANTED COMPLETE CONTROL OF THE COMPANY
THAT HAD HIS NAME. IN A SENSE, HENRY FORD WAS THE COMPANY.
VOICE TWO:
HENRY'S SON, EDSEL, WAS NAMED PRESIDENT OF THE COMPANY BEFORE
NINETEEN-TWENTY. NO ONE TRULY BELIEVED THAT EDSEL WAS RUNNING
THE COMPANY. WHATEVER EDSEL SAID, PEOPLE BELIEVED HE WAS SPEAKING
FOR HIS FATHER.
IN NINETEEN-TWENTY-THREE, FIFTY-SEVEN PERCENT OF THE CARS
PRODUCED IN AMERICA WERE "MODEL T" FORDS. ABOUT HALF THE CARS
PRODUCED IN THE WORLD WERE FORDS. TAXICABS IN HONG KONG. MOST OF
THE CARS IN SOUTH AMERICA. NEVER BEFORE -- OR SINCE -- HAS ONE
CAR COMPANY SO CONTROLLED WORLD CAR PRODUCTION.
VOICE ONE:
THE SUCCESS OF THE FORD MOTOR COMPANY PERMITTED HENRY FORD TO
WORK ON OTHER PROJECTS.
HE BECAME A NEWSPAPER PUBLISHER. HE BOUGHT A RAILWAY. HE BUILT
AIRPLANES. HE HELPED BUILD A HOSPITAL. HE EVEN RAN FOR THE
UNITED STATES SENATE.
SOME OF HENRY'S PROJECTS WERE ALMOST UNBELIEVABLE. FOR EXAMPLE,
HE TRIED TO END WORLD WAR ONE BY SAILING TO EUROPE WITH A GROUP
OF PEACE SUPPORTERS.
VOICE TWO:
WHILE HENRY FORD ENJOYED HIS SUCCESS, A DANGEROUS SITUATION WAS
DEVELOPING. OTHER COMPANIES BEGAN TO SELL WHAT ONLY FORD HAD
BEEN SELLING: GOOD, LOW-PRICED CARS. FORD'S BIGGEST COMPETITOR
WAS THE GENERAL MOTORS COMPANY. GENERAL MOTORS PRODUCED THE
CHEVROLET AUTOMOBILE.
FORD'S "MODEL T" WAS STILL A DEPENDABLE CAR. BUT IT HAD NOT
CHANGED IN YEARS. PEOPLE SAID THE "MODEL T" ENGINE WAS TOO LOUD.
THEY SAID IT WAS TOO SLOW. THE CHEVROLET, HOWEVER, HAD A
DIFFERENT LOOK EVERY YEAR. AND YOU COULD PAY FOR ONE OVER A LONG
PERIOD OF TIME. FORD DEMANDED FULL PAYMENT AT THE TIME OF SALE.
FORD'S SHARE OF THE CAR MARKET BEGAN TO FALL.
VOICE ONE:
EVERYONE AT FORD AGREED THAT THE "MODEL T" MUST GO. HENRY FORD
DISAGREED. AND IT WAS HIS DECISION THAT MATTERED. FINALLY, IN
NINETEEN-TWENTY-SIX, EVEN HENRY ADMITTED THAT THE AGE OF THE
"MODEL T" WAS OVER. A NEW FORD WAS NEEDED. A YEAR LATER, THE
"MODEL T" WAS GONE.
STRANGELY ENOUGH, PEOPLE MOURNED ITS END. THEY DID NOT WANT TO
BUY IT ANYMORE. BUT THEY RECOGNIZED THAT THE "MODEL T" WAS THE
LAST OF THE FIRST CARS IN THE BRAVE NEW WORLD OF AUTOMOBILE
DEVELOPMENT.
THE SUCCESS OF FORD'S NEW CARS DID NOT LAST LONG. AFTER
NINETEEN-THIRTY, FORD WOULD ALWAYS BE SECOND TO GENERAL MOTORS.
VOICE TWO:
IN NINETEEN-TWENTY-NINE, THE UNITED STATES SUFFERED A GREAT
ECONOMIC RECESSION. MANY BUSINESSES FAILED. MILLIONS OF PEOPLE
LOST THEIR JOBS. IN NINETEEN-THIRTY-ONE, THE FORD MOTOR COMPANY
SOLD ONLY HALF AS MANY CARS AS IT HAD THE YEAR BEFORE. IT LOST
THIRTY-SEVEN-MILLION DOLLARS. WORKING CONDITIONS AT FORD GREW
WORSE.
IN NINETEEN-THIRTY-TWO, HUNGRY, UNEMPLOYED MEN MARCHED NEAR THE
FORD FACTORY. POLICE, FIREFIGHTERS AND FORD SECURITY GUARDS
TRIED TO STOP THEM WITH STICKS, HIGH-PRESSURE WATER AND GUNS.
FOUR OF THE MARCHERS DIED, AND TWENTY WERE WOUNDED.
NEWSPAPERS ALL OVER THE UNITED STATES CONDEMNED THE POLICE,
FIREFIGHTERS AND SECURITY GUARDS FOR ATTACKING UNARMED MEN. AND
TO MAKE A BAD SITUATION WORSE, FORD DISMISSED ALL WORKERS WHO
ATTENDED FUNERAL SERVICES FOR THE DEAD.
VOICE ONE:
MORE VIOLENCE WAS TO COME. FOR SEVERAL YEARS, AUTOMOBILE WORKERS
HAD BEEN ATTEMPTING TO FORM A LABOR UNION. UNION LEADERS
NEGOTIATED FIRST WITH AMERICA'S TWO OTHER MAJOR AUTOMOBILE
MAKERS: THE CHRYSLER COMPANY AND GENERAL MOTORS. THOSE COMPANIES QUICKLY AGREED TO PERMIT A UNION IN THEIR FACTORIES. THAT LEFT FORD ALONE TO FIGHT AGAINST THE UNION. AND FIGHT HE DID.
VOICE TWO:
IN NINETEEN-THIRTY-SEVEN, UNION ORGANIZERS WERE PASSING OUT
PAMPHLETS TO WORKERS AT THE FORD FACTORY. COMPANY SECURITY
GUARDS STRUCK. THEY WERE LED BY THE CHIEF OF SECURITY, HARRY
BENNETT.
HARRY BENNETT KNEW NOTHING ABOUT CARS. BUT HE DID KNOW WHAT HENRY FORD WANTED DONE. AND HE DID IT. BENNETT'S POWER CAME FROM HENRY.
THE ONLY PERSON WHO MIGHT HAVE HAD THE POWER TO STOP BENNETT WAS
HENRY'S SON, EDSEL, WHO WAS PRESIDENT OF THE COMPANY. BUT EDSEL
HIMSELF WAS FIGHTING HENRY AND HIS UNWILLINGNESS TO CHANGE.
BENNETT'S POWER IN THE COMPANY CONTINUED TO GROW. HIS VIOLENCE
AGAINST THE UNION OF AUTOMOBILE WORKERS ALSO GREW.
THE FORD MOTOR COMPANY DID NOT AGREE TO NEGOTIATE WITH THE UNION
UNTIL NINETEEN-FORTY-ONE. HENRY FORD ACCEPTED AN AGREEMENT. IF HE
HAD NOT, HIS COMPANY WOULD HAVE LOST MILLIONS OF DOLLARS IN
GOVERNMENT BUSINESS.
VOICE ONE:
IN NINETEEN-FORTY-THREE, EDSEL FORD DIED. WITH EDSEL GONE, HENRY
AGAIN BECAME PRESIDENT OF THE FORD MOTOR COMPANY. IT WAS
DIFFICULT TO KNOW IF HENRY OR HARRY BENNETT WAS RUNNING THE
COMPANY. AMERICA WAS AT WAR. AND HENRY WAS EIGHTY YEARS OLD. . . TO
OLD TO DEAL WITH THE PROBLEMS OF WARTIME PRODUCTION. AND BENNETT
KNEW NOTHING AT ALL ABOUT PRODUCTION.
SO HENRY'S GRANDSON, ALSO HENRY FORD, WAS RECALLED FROM THE NAVY
TO RUN THE COMPANY. YOUNG HENRY'S FIRST ACT WAS TO DISMISS HARRY
BENNETT.
VOICE TWO:
OLD HENRY FORD RETIRED FROM BUSINESS. HIS THOUGHTS WERE IN THE
PAST. HE DIED IN HIS SLEEP IN NINETEEN-FORTY-SEVEN, AT THE AGE OF
EIGHTY-THREE.
HENRY FORD WAS NOT THE FIRST MAN WHOSE NAME WAS GIVEN TO AN
AUTOMOBILE. BUT HIS NAME-- MORE THAN ANY OTHER -- WAS LINKED TO
THAT MACHINE. AND HIS DREAM CHANGED THE LIVES OF MILLIONS OF
PEOPLE.
SOME STILL WONDER IF HENRY FORD WAS A SIMPLE MAN WHO SEEMED
DIFFICULT . . . . . OR A DIFFICULT MAN WHO SEEMED SIMPLE. NO ONE,
HOWEVER QUESTIONS THE FACT THAT HE MADE THE AUTOMOBILE INDUSTRY
ONE OF THE GREAT INDUSTRIES IN THE WORLD."
(THEME)
VOICE TWO:
YOU HAVE BEEN LISTENING TO THE SPECIAL ENGLISH PROGRAM PEOPLE IN
AMERICA. YOUR NARRATORS WERE STEVE EMBER AND FRANK OLIVER. OUR PROGRAM WAS WRITTEN BY RICHARD THORMAN.
Source: www.voa.gov/special/