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In 1877, a lawyer named George Baldwin
Selden (1846-1923) of Rochester, NY designed a "road engine"
that would be powered by an internal combustion gasoline engine. A patent (number
549,160) for the engine was applied for in 1879. Due to legal
technicalities, the actual issuing of this patent was delayed until 1895.
History claims Selden kept that patent pending until more internal
combustion engines were on the road. During this delay, a number of
automobiles companies were already using the engine design.

The Selden patent specifically covered the use of an internal-combustion
engine for the sole purpose of propelling a vehicle. The patent included
the combination of a motor with a clutch, or similar engaging and
disengaging device by which the motor drove the propelling wheels. It also
covered the use of a reducing gear, by which the propelling wheels could
be driven at speeds lower than that of the motor shaft.
The patent eventually wound up in the hands
of the Electric Vehicle Company of Hartford, Connecticut. In 1900 this
electric car company had started producing gasoline powered cars with
Selden's engine patent. They agreed to pay Selden $10,000 for the rights
of the patent and a royalty for every car based on his design. To protect
this patent, the Association of Licensed Automobile Manufacturers was
formed. Several major manufacturers joined this group. Henry Ford
initially applied for membership, but ALAM rejected his application. The
Electric Vehicle Company attempted to control all gasoline car
manufacturers and did so for a few years while the case went through
court. Due to the delay in issuing the patent, the original rights did not
expire until 1912.
Click to enlarge this picture
Several leading automobile companies took
licenses under the patent, but others, led by Henry Ford, refused to do
so. If you own a car made in the early 1900s, you may find a small brass
plaque somewhere near the engine that reads "Manufactured Under
Selden Patent." You will not find this plaque on any Fords. The
case against Ford and other auto manufacturers dragged through court from
1903 to 1911. Few people had heard of Henry Ford, but the exposure the
nine year trial gave him helped sell his Model T. A final decision ruled
that Selden's patent was not being infringed upon because it was valid
only for an automobile driven by a Brayton-type engine of the specific
type described in the patent.
Selden had yet to build a car aside from
his 1877 prototype model. While going through the courts, he did manage to
produce two vehicles. The first car was put together by Selden in
Rochester, NY. A second car was assembled in Hartford by the Electric
Vehicle Company. These two cars currently exist. The Rochester vehicle can
be seen at the Henry Ford Museum and the Hartford car is on display at the
Connecticut State Library.
The Selden Motor Vehicle Company was
officially formed in 1906 after taking over the Buffalo Gasoline Motor
Company. "Made By The Father Of Them All" was the
company's advertising slogan. The first Selden vehicle was seen on the
road in June of 1907. This four cylinder car sold for between $2,000 and
$2,500. Today, a nice looking Selden has a value of $25,000.
In 1911, Selden received the news that his patent was declared
unenforceable. His factory also had a major fire that summer. In the fall
of 1911 the company was reorganized with Frederick Law, who had designed
the Columbia gas car for the Electric Motor Company, on board as the new
Selden designer.
Selden cars had a small following and the
company did well producing 850 cars in 1908; 1,216 in 1909; 1,417 in 1910;
1,628 in 1911; 1,211 in 1912; 873 in 1813 and 229 in 1914. The last
Seldens were built in 1914. Seldens came in Touring, Runabout, Roadster
and Limousine models. All cars were powered by a four-cylinder 30 to 40
horsepower engine.
In 1913, Selden had begun to make
commercial trucks. Sedan trucks continued until 1932. George Selden died
in 1923.
Arthur B. Selden, brother to George also
deserves mentioning for his small contribution to the automobile world.
Arthur Selden began building a front wheel drive vehicle in 1903. This car
featured a chain transmission connected to a jackshaft. The car was a
sporty one-seater powered by an air cooled two cylinder engine. Aside from
the engine, Arthur Selden built the rest of the car entirely by himself.
The car was finally completed in 1908. This is the only car Arthur Selden
ever built. Perhaps his brother's troubles discouraged him from entering
the competitive automotive world.
Recap from
above and the battle between George Selden and Henry Ford
Henry Ford Biography
Henry Ford
spent most of his life making headlines, good, bad, but never indifferent.
Celebrated as both a technological genius and a folk hero, Ford was the
creative force behind an industry of unprecedented size and wealth that in
only a few decades permanently changed the economic and social character
of the United States. When young Ford left his father's farm in 1879 for
Detroit, only two out of eight Americans lived in cities; when he died at
age 83, the proportion was five out of eight. Once Ford realized the
tremendous part he and his Model T automobile had played in bringing about
this change, he wanted nothing more than to reverse it, or at least to
recapture the rural values of his boyhood. Henry Ford, then, is an apt
symbol of the transition from an agricultural to an industrial America.
Early life.
Henry Ford was one of eight children of William and Mary Ford. He was born
on the family farm near Dearborn, Michigan, then a town eight miles west
of Detroit, on July 30, 1863. Abraham Lincoln was president of the 24
states of the Union, and Jefferson Davis was president of the 11 states of
the Confederacy. Ford attended a one-room school for eight years when he
was not helping his father with the harvest. At age 16 he walked to
Detroit to find work in its machine shops. After three years, during which
he came in contact with the internal-combustion engine for the first time,
he returned to the farm, where he worked part-time for the Westinghouse
Engine Company and in spare moments tinkered in a little machine shop he
set up. Eventually he built a small "farm locomotive," a tractor
that used an old mowing machine for its chassis and a homemade steam
engine for power.
Ford moved back to Detroit
nine years later as a married man. His wife, Clara Bryant, had grown up on
a farm not far from Ford's. They were married in 1888, and on November 6,
1893, she gave birth to their only child, Edsel Bryant. A month later Ford
was made chief engineer at the main Detroit Edison Company plant with
responsibility for maintaining electric service in the city 24 hours a
day. Because he was on call at all times, he had no regular hours and
could experiment to his heart's content. He had determined several years
before to build a gasoline-powered vehicle, and his first working gasoline
engine was completed at the end of 1893. By 1896 he had completed his
first horseless carriage, the "Quadricycle," so called because
the chassis of the four-horsepower vehicle was a buggy frame mounted on
four bicycle wheels. Unlike many other automotive inventors, including
Charles Edgar and J. Frank Duryea, Elwood Haynes, Hiram Percy Maxim, and
his Detroit acquaintance Charles Brady King, all of whom had built
self-powered vehicles before Ford but who held onto their creations, Ford
sold his to finance work on a second vehicle, and a third, and so on.
During the next seven
years he had various backers, some of whom, in 1899, formed the Detroit
Automobile Company (later the Henry Ford Company), but all eventually
abandoned him in exasperation because they wanted a passenger car to put
on the market while Ford insisted always on improving whatever model he
was working on, saying that it was not ready yet for customers. He built
several racing cars during these years, including the "999"
racer driven by Barney Oldfield, and set several new speed records. In
1902 he left the Henry Ford Company, which subsequently reorganized as the
Cadillac Motor Car Company. Finally, in 1903, Ford was ready to market an
automobile. The Ford Motor Company was incorporated, this time with a mere
$28,000 in cash put up by ordinary citizens, for Ford had, in his previous
dealings with backers, antagonized the wealthiest men in Detroit.
The company was a success
from the beginning, but just five weeks after its incorporation the
Association of Licensed Automobile Manufacturers threatened to put it out
of business because Ford was not a licensed manufacturer. He had been
denied a license by this group, which aimed at reserving for its members
the profits of what was fast becoming a major industry. The basis of their
power was control of a patent granted in 1895 to George Baldwin Selden, a
patent lawyer of Rochester, New York. The association claimed that the
patent applied to all gasoline-powered automobiles. Along with many rural
Midwesterners of his generation, Ford hated industrial combinations and
Eastern financial power. Moreover, Ford thought the Selden patent
preposterous. All invention was a matter of evolution, he said, yet Selden
claimed genesis. He was glad to fight, even though the fight pitted the
puny Ford Motor Company against an industry worth millions of dollars. The
gathering of evidence and actual court hearings took six years. Ford lost
the original case in 1909; he appealed and won in 1911. His victory had
wide implications for the industry, and the fight made Ford a popular
hero.
"I will build a motor
car for the great multitude," Ford proclaimed in announcing the birth
of the Model T in October 1908. In the 19 years of the Model T's
existence, he sold 15,500,000 of the cars in the United States, almost
1,000,000 more in Canada, and 250,000 in Great Britain, a production total
amounting to half the auto output of the world. The motor age arrived
owing mostly to Ford's vision of the car as the ordinary man's utility
rather than as the rich man's luxury. Once only the rich had travelled
freely around the country; now millions could go wherever they pleased.
The Model T was the chief instrument of one of the greatest and most rapid
changes in the lives of the common people in history, and it effected this
change in less than two decades. Farmers were no longer isolated on remote
farms. The horse disappeared so rapidly that the transfer of acreage from
hay to other crops caused an agricultural revolution. The automobile
became the main prop of the American economy and a stimulant to
urbanization--cities spread outward, creating suburbs and housing
developments--and to the building of the finest highway system in the
world.
The remarkable birth rate
of Model T's was made possible by the most advanced production technology
yet conceived. After much experimentation by Ford and his engineers, the
system that had evolved by 1913-14 in Ford's new plant in Highland Park,
Michigan, was able to deliver parts, subassemblies, and assemblies
(themselves built on subsidiary assembly lines) with precise timing to a
constantly moving main assembly line, where a complete chassis was turned
out every 93 minutes, an enormous improvement over the 728 minutes
formerly required. The minute subdivision of labour and the coordination
of a multitude of operations produced huge gains in productivity.
In 1914 the Ford Motor
Company announced that it would henceforth pay eligible workers a minimum
wage of $5 a day (compared to an average of $2.34 for the industry) and
would reduce the work day from nine hours to eight, thereby converting the
factory to a three-shift day. Overnight Ford became a worldwide celebrity.
People either praised him as a great humanitarian or excoriated him as a
mad socialist. Ford said humanitarianism had nothing to do with it.
Previously profit had been based on paying wages as low as workers would
take and pricing cars as high as the traffic would bear. Ford, on the
other hand, stressed low pricing (the Model T cost $950 in 1908 and $290
in 1927) in order to capture the widest possible market and then met the
price by volume and efficiency. Ford's success in making the automobile a
basic necessity turned out to be but a prelude to a more widespread
revolution. The development of mass-production techniques, which enabled
the company eventually to turn out a Model T every 24 seconds; the
frequent reductions in the price of the car made possible by economies of
scale; and the payment of a living wage that raised workers above
subsistence and made them potential customers for, among other things,
automobiles--these innovations changed the very structure of society.
Control of the
company. During its first five
years the Ford Motor Company produced eight different models, and by 1908
its output was 100 cars a day. The stockholders were ecstatic; Ford was
dissatisfied and looked toward turning out 1,000 a day. The stockholders
seriously considered court action to stop him from using profits to
expand. In 1909 Ford, who owned 58 percent of the stock, announced that he
was only going to make one car in the future, the Model T. The only thing
the minority stockholders could do to protect their dividends from his
all-consuming imagination was to take him to court, which Horace and John
Dodge did in 1916.
The Dodge brothers, who
formerly had supplied chassis to Ford but were now manufacturing their own
car while still holding Ford stock, sued Ford for what they claimed was
his reckless expansion and for reducing prices of the company's product,
thereby diverting money from stockholders' dividends. The court hearings
gave Ford a chance to expound his ideas about business. In December 1917
the court ruled in favour of the Dodges; Ford, as in the Selden case,
appealed, but this time he lost. In 1919 the court said that, while Ford's
sentiments about his employees and customers were nice, a business is for
the profit of its stockholders. Ford, irate that a court and a few
shareholders, whom he likened to parasites, could interfere with the
management of his company, determined to buy out all the shareholders. He
had resigned as president in December 1918 in favour of his son, Edsel,
and in March 1919 he announced a plan to organize a new company to build
cars cheaper than the Model T. When asked what would become of the Ford
Motor Company, he said, "Why I don't know exactly what will become of
that; the portion of it that does not belong to me cannot be sold to me,
that I know." The Dodges, somewhat inconsistently, having just taken
him to court for mismanagement, vowed that he would not be allowed to
leave. Ford said that if he was not master of his own company, he would
start another. The ruse worked; by July 1919 Ford had bought out all seven
minority stockholders. (The seven had little to complain about: in
addition to being paid nearly $106,000,000 for their stock, they received
a court-ordered dividend of $19,275,385 plus $1,536,749 in interest.) Ford
Motor Company was reorganized under a Delaware charter in 1920 with all
shares held by Ford and other family members. Never had one man controlled
so completely a business enterprise so gigantic.
The planning of a huge new
plant at River Rouge, Michigan, had been one of the specific causes of the
Dodge suit. What Ford dreamed of was not merely increased capacity but
complete self-sufficiency. World War I, with its shortages and price
increases, demonstrated for him the need to control raw materials;
slow-moving suppliers convinced him that he should make his own parts.
Wheels, tires, upholstery, and various accessories were purchased from
other companies around Detroit. As Ford production increased, these
smaller operations had to speed their output; most of them had to install
their own assembly lines. It became impossible to coordinate production
and shipment so that each product would arrive at the right place and at
the right time. At first he tried accumulating large inventories to
prevent delays or stoppages of the assembly line, but he soon realized
that stockpiling wasted capital. Instead he took up the idea of extending
movement to inventories as well as to production. He perceived that his
costs in manufacturing began the moment the raw material was separated
from the earth and continued until the finished product was delivered to
the consumer. The plant he built in River Rouge embodied his idea of an
integrated operation encompassing production, assembly, and
transportation. To complete the vertical integration of his empire, he
purchased a railroad, acquired control of 16 coal mines and about 700,000
(285,000 hectares) acres of timberland, built a sawmill, acquired a fleet
of Great Lakes freighters to bring ore from his Lake Superior mines, and
even bought a glassworks.
The move from Highland
Park to the completed River Rouge plant was accomplished in 1927. At 8
o'clock any morning, just enough ore for the day would arrive on a Ford
freighter from Ford mines in Michigan and Minnesota and would be
transferred by conveyor to the blast furnaces and transformed into steel
with heat supplied by coal from Ford mines in Kentucky. It would continue
on through the foundry molds and stamping mills and exactly 28 hours after
arrival as ore would emerge as a finished automobile. Similar systems
handled lumber for floorboards, rubber for tires, and so on. At the height
of its success the company's holdings stretched from the iron mines of
northern Michigan to the jungles of Brazil, and it operated in 33
countries around the globe. Most remarkably, not one cent had been
borrowed to pay for any of it. It was all built out of profits from the
Model T.
Later years.
The unprecedented scale of that success, together with Ford's personal
success in gaining absolute control of the firm and driving out
subordinates with contrary opinions, set the stage for decline. Trusting
in what he believed was an unerring instinct for the market, Ford refused
to follow other automobile manufacturers in offering such innovative
features as conventional gearshifts (he held out for his own planetary
gear transmission), hydraulic brakes (rather than mechanical ones), six-
and eight-cylinder engines (the Model T had a four), and choice of colour
(from 1914 every Model T was painted black). When he was finally convinced
that the marketplace had changed and was demanding more than a purely
utilitarian vehicle, he shut down his plants for five months to retool. In
December 1927 he introduced the Model A. The new model enjoyed solid but
not spectacular success. Ford's stubbornness had cost him his leadership
position in the industry; the Model A was outsold by General Motors'
Chevrolet and Chrysler's Plymouth and was discontinued in 1931. Despite
the introduction of the Ford V-8 in 1932, by 1936 Ford Motor Company was
third in sales in the industry.
A similar pattern of
authoritarian control and stubbornness marked Ford's attitude toward his
workers. The $5 day that brought him so much attention in 1914 carried
with it, for workers, the price of often overbearing paternalism. It was,
moreover, no guarantee for the future; in 1929 Ford instituted a $7 day,
but in 1932, as part of the fiscal stringency imposed by falling sales and
the Great Depression, that was cut to $4, below prevailing industry wages.
Ford freely employed company police, labour spies, and violence in a
protracted effort to prevent unionization and continued to do so even
after General Motors and Chrysler had come to terms with the United
Automobile Workers. When the UAW finally succeeded in organizing Ford
workers in 1941, he considered shutting down before he was persuaded to
sign a union contract.
During the 1920s, under
Edsel Ford's nominal presidency, the company diversified by acquiring the
Lincoln Motor Car Company, in 1922, and venturing into aviation. At
Edsel's death in 1943 Henry Ford resumed the presidency and, in spite of
age and infirmity, held it until 1945, when he retired in favour of his
grandson, Henry Ford II.
Henry Ford was a complex
personality. Away from the shop floor he exhibited a variety of
enthusiasms and prejudices and, from time to time, startling ignorance.
His dictum that "history is more or less bunk" was widely
publicized, as was his deficiency in that field revealed during
cross-examination in his million-dollar libel suit against the Chicago
Tribune in 1919; a Tribune editorial had called him an "ignorant
idealist" because of his opposition to U.S. involvement in World War
I, and while the jury found for Ford it awarded him only six cents. One of
Ford's most publicized acts was his chartering of an ocean liner to
conduct himself and a party of pacifists to Europe in November 1915 in an
attempt to end the war by means of "continuous mediation." The
so-called Peace Ship episode was widely ridiculed. In 1918, with the
support of Pres. Woodrow Wilson, Ford ran for a U.S. Senate seat from
Michigan. He was narrowly defeated after a campaign of personal attacks by
his opponent.
In 1918 Ford bought a
newspaper, The Dearborn Independent, and in it published a series of
scurrilous attacks on the "International Jew," a mythical figure
he blamed for financing war; in 1927 he formally retracted his attacks and
sold the paper. He gave old-fashioned dances at which capitalists,
European royalty, and company executives were introduced to the polka, the
Sir Roger de Coverley, the mazurka, the Virginia reel, and the quadrille;
he established small village factories; he built one-room schools in which
vocational training was emphasized; he experimented with soybeans for food
and durable goods; he sponsored a weekly radio hour on which quaint essays
were read to "plain folks"; he constructed Greenfield Village, a
restored rural town; and he built what later was named the Henry Ford
Museum and filled it with American artifacts and antiques from the era of
his youth when American society was almost wholly agrarian. In short, he
was a man who baffled even those who had the opportunity to observe him
close at hand, all except James Couzens, Ford's business manager from the
founding of the company until his resignation in 1915, who always said,
"You cannot analyze genius and Ford is a genius."
Ford died at home on April
7, 1947, exactly 100 years after his father had left Ireland for Michigan.
His holdings in Ford stock went to the Ford Foundation, which had been set
up in 1936 as a means of retaining family control of the firm and which
subsequently became the richest private foundation in the world.
To fordize:
to standardize a product and manufacture it by mass means at a price so
low that the common man could afford to buy it.
1. Taylorism (after
Frederick Winslow Taylor): the application of segmentation and
"time-and-motion" studies to the production process.
2. the line: developing
the production process "like a river and its tributaries."
3. the conveyer belt:
adopting the Chicago meatpackers overhead trolley to auto production.
1914: Ford installs first automatic conveyer belt.
PRICE OF A MODEL-T.
* 1910-11: $780 * 1911-12:
$690 * 1912-13: $600 * 1913-14: $550. * 1914-15: $360.
In 1914 the Ford Motor
Company with 13,000 employees produced 267,720 cars; the other 299
American auto companies with 66,350 workers produced only 286,770 cars.
Ford had 48% of US car market, Company has $100 million in annual sales.
THE ROUGE RIVER PLANT.
* "Ford's industrial
masterpiece." Opened 1918 and reaches full capacity by mid-1920s.
* 1.5 miles long by .75
miles wide. A steel, glass, auto plant all in one.
* "Here is the
conversion of raw materials into cash in approximately 33 hours.
In 1913 the labor turnover
at Ford was 380%! Solution (1914): $5 a day (double existing pay) A
successful public-relations gesture; "the smartest cost-cutting move
I ever made."
Ford's Sociology
Department: a spying dept that fired employees if they had union
sympathies, had personal problems in finance or health, gambled, got
drunk.
1922: high point for
Ford's sales.
1. stagnant technology:
refusal to change basic Model T technology until too late. Model A
introduced 1927.
2. poor management: the
practioner of social darwinism; no standardized accounting system;
contempt for workers. Hosti
3. cronyism &
gangsterism: association with dubious "yes-men." Harry Bennett's
truncheons and guns.
4. Soressen joins GM.
Edsel Ford undermined.
5. Increasing
eccentricity.
6. Plant floor run by
intimidation not cooperation
FAMOUS FORD QUOTES.
"Every time I reduce
the price of the car by one dollar I get one thousand new buyers"
"Buy a Ford - spend
the difference."
"A Ford will take you
everywhere except into society."
Thinking men know that
work is the salvation of the race, morally, physically, socially."
"Men work for two
reasons. One is for wages, and one is for fear of losing their jobs."
"Study the history of
almost any criminal, and you will find an inveterate cigarette
smoker."
"When there is
something wrong in this country, you'll find the Jews."
"The Depression is
good for the country. The only problem is that it might not last long
enough in which case people might not learn enough from it."
(on accountants): "I
want them all fired. They're not productive, they don't do any real work.
Get them out of here today."
"If there is
unemployment in America, it is because the unemployed do not want to
work."
Ford was the nominal
coauthor of three books in collaboration with SAMUEL CROWTHER: My Life
and Work (1922, reprinted 1987), Today and Tomorrow (1926,
reprinted 1988), and Moving Forward (1930). Especially recommended
studies of his life and activities are ALLAN NEVINS and FRANK ERNEST HILL,
Ford: The Times, the Man, the Company (1954), Ford: Expansion
and Challenge, 1915-1933 (1957), and Ford: Decline and Rebirth,
1933-1962 (1963); CAROL W. GELDERMAN, Henry Ford: The Wayward
Capitalist (1981), a full-length biography and a study of his
company's development;WILLIAM GREENLEAF, Monopoly on Wheels (1961),
a discussion of the Selden patent case. DAVID L. LEWIS, The Public Image
of Henry Ford (1976), examines the media's portrayal of Ford and his
company as well as the company's efforts to influence that portrayal.
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