This article from the November 16, 1948, edition of the Bergen Evening Record [Hackensack] illustrates the importance of the automotive industry to the post-war economy in America.
100 Million Cars
The Dodge Brothers and Henry Ford, Part 3
On November 3, 1916, the headlines of one paper read:
The Dodge brothers, John and Horace, owned 10 percent of the Ford Motor Company stock, and that stock had proved lucrative. From January of 1914 to October of 1915, special dividends of $34 million had been distributed to shareholders in addition to regular monthly dividends of 5 percent. With earnings of around $60 million for the year ending July 31, 1916, it looked like even bigger dividends were on the horizon. It looked that way, that is, until Henry Ford, the Detroit man accused of wild speculation, said otherwise.
Ford announced that there would be no special dividends issued because profits were going to be used, instead, for business expansion. Ford had plans to invest in iron ore mines and to build ships to transport the ore to steel manufacturing plants that would also be built and owned by Ford. The Dodge brothers obtained a temporary injunction blocking Ford’s plans. They accused Ford of engaging in reckless behavior during unstable post-war conditions and of depriving shareholders of a reasonable return on their investments.
For his part, Henry Ford denied the allegations of recklessness and said he was only continuing his successful business model of selling a tremendous number of cars at a small margin of profit. The LA Times quoted him as saying, “They own 10 percent of the stock and I own about 58 percent. I can’t injure them $10 worth without at the same time injuring myself $58 worth.”
The court proceedings were brimming with showmanship and hyperbole. The attorney for the Dodges asserted that much of Ford’s success was due to the mechanical and engineering abilities of the Dodge Brothers and questioned whether Henry Ford was “inventive genius or inventive crank.” He also stated that Ford’s goal was to crowd out all competition, and if he would only admit that purpose he would go to jail. Ford accused the Dodge Brothers of just being jealous competitors. He said the brothers tried to force him to buy them out and threatened to harass him until he did. During the court proceedings, Ford shook his finger at the Dodges’ attorney and said “If you sat there until you are petrified I wouldn’t buy the Dodge stock nor would I buy that of any other stockholder.”
The court eventually sided with the Dodges, and that judgment was mostly affirmed by the Michigan Supreme Court. Ford was ordered to issue dividends in the amount of $19,275,385 with the Dodges getting 10 percent of that. Also, despite the finger shaking, Ford did buy back the stock owned by the Dodges in July of 1919 for $25 million. The long-standing Dodge-Ford relationship had finally been severed.
Sadly, tragedy was about to strike the Dodge brothers. In January of 1920, Horace and John attended an auto show in New York. While there, they both contracted the influenza which had been a world-wide epidemic, and it developed into pneumonia. John never left New York, dying in his room at the Ritz-Carlton. He was only fifty-five years old. Horace continued to struggle with health complications until he died in December of that year with cirrhosis of the liver listed as the official cause. He was only fifty-two years old at his death.
According to author Charles K. Hyde in The Dodge Brothers: The Men, the Motor Cars and the Legacy, Henry Ford and the Dodge brothers maintained a remarkably cordial relationship after the lawsuit. It was well known that Ford was capable of carrying a grudge. For instance, looking back at all he had achieved, Ford once said that he considered his “outstanding achievement” to be defeating George Selden (in the the automobile patent court fight). He did not appear to retain any animosity toward the Dodges, however, and was reportedly very upset when he received the news of John’s death. He attended John’s funeral and both he and his son, Edsel, served as honorary pallbearers at Horace’s funeral.
Unlike many of the showmen in the early days of the automobile industry, the Dodge brothers were not interested in self-promotion. Perhaps that’s why John and Horace Dodge are not names as well-known as Henry Ford and others, and why there haven’t been numerous books written about them. Their goal was simply to build a quality product “that speaks for itself,” their company motto. The Dodge brothers made enormous contributions to the automobile industry and should be remembered accordingly. This ad was published shortly after the death of Horace Dodge, and it is a fitting tribute, short and sweet, and one that surely would have had their approval:
Christmas 2018
Wishing you much peace, love and joy this Christmas!
The Dodge Brothers and Henry Ford, Part 2
The Dodge Brothers had been working almost exclusively for Henry Ford, but Ford’s goal was to begin making the various parts of his automobile himself. With the future of the relationship uncertain, the Dodge Brothers informed Ford in 1913 that they would only produce his parts for another year. Then they went to work planning the design, manufacture and marketing of their own automobile.
The Dodge Brothers had an excellent reputation. In his book The Dodge Brothers: The Men, the Motor Cars and the Legacy, author Charles K Hyde quotes the Michigan Manufacturer and Financial Record as saying, “The Dodge brothers are the two best mechanics in Michigan . . . when the Dodge Bros. new car comes out, there is no question it will be the best thing on the market for the money.” The Buffalo Times said, “There seems to be a strong undercurrent of feeling that any motor car manufactured by Dodge Brothers should promise something very unusual. Dodge Brothers have one of the best equipped automobile factories in the world, having been engaged on a large scale in the manufacture of motor car parts since the earliest days of the industry.”
This reputation generated great excitement about their new endeavor among both industry insiders and members of the general public. Many had speculated that the Dodge Brothers would be competing directly with Henry Ford and his Model T in the low-priced field, but others had pointed out that hurting Ford would also be hurting themselves as stockholders in Ford’s company. Clarification was provided in November of 1914 when the Dodge Brothers General Sales Manager stated, “In place of building the best car possible at a low price, Dodge Brothers determined to build the best car they knew how to build, and then place a moderate price on it.”
Dealers across the country were clamoring to be among those selling the new Dodge. At the auto show at the 1914 Michigan State Fair, the Dodge Brothers were the only manufacturer that did not exhibit a car, yet their reception room was the busiest spot in the building. During this show alone, 254 dealers filed applications for the sales rights to the new Dodge. There were many more, according to this ad appearing in October of 1914:
When the first Dodge cars reached the showrooms, huge crowds turned up to see the much-awaited and much-speculated-on new car. In Detroit, over 6,000 people made the first-day trek to the showroom. On a rainy day in New York, over 5,000 came to the Colt-Stratton dealership where they offered prizes for the first three sales, and these three prizes were award by 10 o’clock in the morning. Similar crowds appeared across the country in cities like Omaha and Chicago, and people were not disappointed by what they saw:
Built to compete against automobiles like the Buick, Overland and Studebaker, the Dodge was well-made and classy. It was built using Vanadium steel and had a wheel base of 110 inches. It featured a full floating rear axle, self-lubricating springs, and electric lighting and starting devices. Inside, it had a speedometer, oil and pressure gauges, hand pump for the pressure feed gasoline system and carburetor air adjustment. Under the hood was a 4-cylinder 35 hp engine. By the time this ad appeared in February of 1916, the Dodge Brothers had already sold $35,000,000 worth of their cars and were rank fourth in production in the United States:
The Dodge Brothers owned their company and did not issue stock. They were likely relying on the large dividends from the Ford stock to help finance their new automobile, so when Henry Ford announced that there would be no more large dividends and that all funds would be used for expansion, a fight was probably inevitable.
To be continued . . . .
The Dodge Brothers and Henry Ford
This year marked the 100th anniversary of both the end of World War I and the influenza pandemic that was fueled, in part, by the large troop movements that accompanied that war. From 1918-19, the deadly flu virus infected approximately a third of the world’s population and was more deadly than the war itself, killing at least 50 million people. The casualties of the pandemic included two giants of the automobile industry, John and Horace Dodge. They are better known as the Dodge Brothers, and their deaths were a terrible loss.
I am frequently surprised at what is remembered, and what is not remembered, by history. For instance, when the charge up San Juan Hill is mentioned, most people immediately think of Teddy Roosevelt. He is certainly worth remembering, but fewer people know that a group of Buffalo Soldiers also fought valiantly there, led by “Black Jack” Pershing. The press’s fervent desire to mold history, not just report on it, is not a new phenomenon. In the case of the Dodge Brothers, a quick search on Amazon reveals only two or three books written about them compared to countless tomes written about Henry Ford. The irony is that Ford’s success is due, in no small part, to the efforts of the Dodge Brothers.
In Charles K. Hyde’s book titled The Dodge Brothers: The Men, the Motor Cars and the Legacy, the author describes the relationship between Ford and the Dodge Brothers in great detail. According to Hyde, Ford launched his third company in late 1902 and asked the Dodge Brothers to become his major parts supplier. The Dodges spent many thousands of dollars in equipment and materials to begin producing “running gear” for Ford, which consisted of the engine, transmission and axles, all mounted on a frame. The Dodge Brothers kept the blueprints for these early Fords, and buyers placed orders by visiting the Dodge plant. In a 1916 lawsuit filed by the Dodges, Henry Ford admitted that the Dodges made the entire Ford except the body, wheels and tires and that they also risked much financially while Ford himself invested no money or property and contributed only his experience and the design. Hyde also notes that no Ford investors or officials had any mechanical or manufacturing abilities other than Ford himself and the Dodge Brothers.
Ford had difficulty paying the Dodges for their work at first. In June of 1903, the Dodge Brothers agreed to write off $7,000 in overdue payments and to extend an additional $3,000 in credit to Ford in exchange for 10% of the Ford stock. The Dodge Brothers had given up other promising contracts to work exclusively for Ford, and their gamble did pay off handsomely. The Ford automobile was hugely successful and the money they earned providing parts, combined with the huge dividends paid on their Ford stock, made the Dodge Brothers very wealthy men. John Dodge was also a VP and director at Ford, and, by 1913, both Henry Ford and the Dodge Brothers were becoming uncomfortable with their dependence on each other.
To be continued . . . .
The Dodge Brothers and Henry Ford, Part 2
The Dodge Brothers and Henry Ford, Part 3
One more word about the Locomobile . . .
Octagonal shapes were used by Locomobile to stand out from the competition and it is a feature that makes them distinguishable. One place this octagonal shape was seen was in the headlamps:
The Locomobile and General Pershing
According to a 1918 story in the New York Herald, Locomobile developed this model for the use of General John J. “Black Jack” Pershing, and his staff, in Europe where Pershing was serving as the commander of the American forces during World War I.
According to the story, after observing British commanders using Rolls Royces and French commanders using Renaults, General Pershing requested a vehicle from Locomobile which would be representative of America and be able to meet the physical challenges of being driven 200-300 miles per day over war-torn roads at high speeds. Locomobile first shipped two of these automobiles and they were used simultaneously, one following the other, so that the General could change cars without losing any time in the event of a blown tire.
The Locomobiles successfully met the challenges, and then more units were supplied for the use of the General Staff. The automobile company wasted no time including this information in their advertising:
You can’t blame Locomobile for being proud of its association with General Pershing, a great general as well as a good and decent man. He still holds the distinction of being the only active-duty six-star general in American history. For more information on this man, I highly recommend a documentary created by University of Nebraska professor Barney McCoy called “Black Jack Pershing: Love and War,” which is available on Amazon Prime. If it doesn’t make you shed a tear, you better check your pulse.
Daredevil Joe Tracy
While reading up on some old race history, I kept seeing the name “Joe Tracy”. Since we share a last name, I was intrigued and had to know more. The Joe Tracy whose name is written in the annals of race history is this man:
He was born in Ireland in 1873 and eventually immigrated to the United States and became a citizen. He is best known for racing Locomobiles in the Vanderbilt Cup Races and, according to the Vanderbilt Cup Races website, is the only driver to compete in the first five Vanderbilt Cup Races. Many contemporary sources describe his temperament as being quiet, thoughtful and steady. He was said to use good judgment and to be extremely knowledgeable. On the race track, however, he earned the nickname “Daredevil” Joe Tracy. A 1906 Chicago newspaper called him “America’s Greatest Race Car Driver,” explaining that he was without peer as an expert and the equal of any foreigner as a driver. This was high praise at the time as Europe was far ahead of America in car building and racing.
The Vanderbilt Cup Races were held on Long Island from 1904 to 1910. In the 1905 race, Tracy drove a 90-hp Locomobile to a third place finish. He drove 283 miles in four hours, 58 minutes and 26 seconds. His average lap speed was 56.90 mph and his fastest lap speed was 61.38 mph. The day before the race the cylinders of his Locomobile had cracked, and Tracy stayed up most the night replacing them. There was no time to try them out before the race, but they did work, and Tracy didn’t have to stop at all during the race except for gasoline. He crossed the finish line behind two French drivers, proving that America could produce a race car that could hold its own against the Europeans.
The Locomobile was appropriately named for its likeness to a locomotive. Here is a picture of Tracy in a Locomobile in 1906:
Locomobile was established in 1899 and was steam-powered in its first years of existence but had converted to gasoline by 1905. They were well-made and expensive automobiles. An ad from 1905 describes the Model H as follows: “35 horse power Magneto, make and brake ignition, double chain drive. The finest car on the American market.” They were fine automobiles and Locomobile priced them accordingly by asking $5,000 for the Model H and $3,000 for the cheaper Model E. Locomobile celebrated the fact that they had created the first American automobile to threaten European racing supremacy:
Tracy’s next Vanderbilt Cup race was the Elimination Race in September of 1906. That race consisted of ten laps around a 29.7 mile course with nine turns, and Tracy completed the 297 miles in 5 hours, 27 minutes, 45 seconds. He and the Locomobile he was driving won big, beating the nearest competitors by more than 20 minutes.
This picture of the Locomobile appeared in the Brooklyn Daily Eagle:
This great description of the car appeared in the Boston Globe:
These pictures of the car and driver appeared in the Los Angeles Times:
According to some sources, Tracy was told to slow down by the Locomobile’s owners (they communicated with hand signals). Tracy disregarded these instructions, and the reason why may involve a certain young woman who had promised to marry him if he won the race. A Pittsburgh Press article, “Sweetheart Fainted as Her Fearless Lover Safely Piloted Locomobile Across Finish Line,” included this quote from the young lady, a Miss Taylor: “I am so very, very sorry, that I gave my consent for Joe to enter this race. Every moment I expect to hear of some accident to him. When he rushes by on two wheels hardly touching the ground, my heart stops beating . . . After I have seen how he is risking his life every minute, I will marry him whether he wins or loses.” Of course he won, but they apparently never married. A 1915 article titled, “The Danger of Adoring a Speed Hero” revealed that “Miss Taylor” was a name invented by Tracy to protect the female’s true identity. She was actually Fannie Collins Coles, she had married a wealthy New York broker, and the paper reported that she had “offended her husband by continuing her girlhood devotion to the racer, “Daredevil” Tracy. So much drama, and the public likely ate up every word.
Tracy was a favorite going into the Victory Cup race in October, but he lost too much time, at least 40 minutes, due to tire problems. Numerous replacements were required and he ended up coming in a disappointing tenth. On the one lap that his tires held, he did have the fastest lap speed at 26 minutes, 20 4/5 seconds. He was also the only racer to pass every contestant in one lap. If only he’d had decent tires!
Another feature of these early races was how reckless the crowd was, underestimating the danger at their own peril. After Tracy crossed the finish line in the 1906 Elimination Race, the crowd flooded the course. The second and third place finishers had to drive through the throng , and the remaining drivers were unable to finish at all. During the Vanderbilt Cup race in October, one paper reported that 10,000 people formed a “solid segment” on both sides of the road at one of the turns on the course, the Jericho turn. After a race car would pass, the crowd would push forward to the center of the road until police beat them back with nightsticks. The same paper reported 20,000 spectators at Hairpin Turn where drivers were cruising along at 60 mph or better as they approached the turn. The human alley was so small that the suction of the racing automobiles nearly sucked the skirts off some of the female spectators. Tracy even stopped during the race to yell at Mr. Vanderbilt himself that people would die unless they were kept off the roads. He was obviously correct because another paper reported that the cost of the race included three men dead, one woman dying, one boy mortally injured, two or three fractured skulls, several broken legs and dozens of serious injuries but added, “And yet race enthusiasts said that it was a very satisfactory and successful contest.”
Tracy quit racing in 1906, but stayed involved with automobiles. He joined Locomobile as a consulting engineer in 1906. In 1908, he was hired as a consulting engineer for Diamond Rubber, a tire maker. There he was put in charge of the racing department and it was the first time that a tire company had hired an expert driver. In 1913, there was a story about Tracy moving his testing plant and laboratory to larger facilities due to increased demand for his services. At the new place, six to eight motors could be tested simultaneously.
Unfortunately, Locomobile did not experience the same happy ending. According to the Standard Catalog of American Cars, the company ran into financial trouble in 1919. It became part of Hare’s Motors for a short time until it was purchased by William Durant of General Motors fame. The stock market crash of 1929 severely hurt Durant and marked the end of the Locomobile.
Tracy lived to a ripe old age, not passing away until 1959 at the age of 86. There is a great story about him in a 1946 issue of the Kingston Daily Freeman. There was a celebration of “old-time” automobiles in June of that year at Mineola, New York. A dirt track race was part of the festivities, and it was won by 74-year-old Joe Tracy driving the very same Locomobile from the 1906 race. White-haired and wearing a long duster and goggles, Tracy beat a 1916 Stutz and a 1912 Mercer among others. I guess he was still Daredevil Joe Tracy, and they likely never stood a chance.
Veterans Day 2018
Thank you, Veterans, for your courage, sacrifice and dedication to this country!
Happy Birthday, Marine Corps!
The Marine Corps is celebrating 243 years of military excellence today! Thank you, marines, for your service and sacrifice!
