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Plaintiff shareholders, Dodge et al., brought an action against Defendant corporation, Ford Motor Company, to force Defendant to pay a more substantial dividend, and to change questionable business decisions by Defendant.
Defendant corporation was the dominant manufacturer of cars when this case was initiated. At one point, the cars were sold for $900, but the price was slowly lowered to $440 – and finally, Defendant lowered the price to $360. The head of Defendant corporation, Henry Ford, admitted that the price negatively impacted short-term profits, but Ford defends his decision altruistically, saying that his ambition is to spread the benefits of the industrialized society with as many people as possible.
Plaintiffs are entitled to a more equitable-sized dividend, but the court will not interfere with Defendant’s business judgments regarding the price set on the manufactured products or the decision to expand the business. The purpose of the corporation is to make money for the shareholders, and Defendant is arbitrarily withholding money that could go to the shareholders.
originally posted by: crayzeed
a reply to: toysforadults
In answer to your thread start another on this.
1919 heh, Ford and Dodge, that's nearly 100 years ago just how come they have never moved on significantly with the petrol combustion engine?
We've put a man on the moon but what have the motor companies done? . Oh yes, fuel injection, computerized timing blah, blah, blah.
More comfort, in car entertainment, a car that drives itself blah, blah blah. And you still have to pay through the nose for it.
But what about the running economy MPG? What about longevity of the product? About the same as 1919.
originally posted by: toysforadults
a reply to: ClovenSky
The shareholders aren't the problem, the problem is the government putting it's greasey fingers into the mix and telling Ford what to do.
There needs to be risk involved for it to function properly.
originally posted by: toysforadults
a reply to: ClovenSky
The shareholders aren't the problem, the problem is the government putting it's greasey fingers into the mix and telling Ford what to do.
There needs to be risk involved for it to function properly.
originally posted by: crayzeed
a reply to: rickymouse
You don't get what I was saying. It makes no difference what you or I think or want THEY decide what they will offer you and that includes keeping the price of cars, fuel, insurance etc. high and keeping ALL money saving (on your part not theirs) devices off the market never to see the light of day if it conflicts with their profits.
The reason for the moon reference was to point out the technological advancements in that field BBUUUTTT what advancements have the car industry given us? Minor, and I mean minor benefits nearly all in their favor.
originally posted by: seasonal
a reply to: ClovenSky
Are you talking about banks, derivatives?
originally posted by: tinner07
I have recently been working at Ford field, home of the Detroit Lions. Right in the heart of the city. I am not from that area. 2 hour drive 1 way.
We were talking the other day and I guess Henry Ford was not a nice person to his employees. Beatings were discussed and even the nazi word.
In 1914, Ford began paying his unskilled workers $5 a day, about twice the norm, and said he paid them so much so they'd have enough to buy his Model T's. The move infuriated other factory owners and led to huge headlines and hiring lines. It also created a legend that still lends credence to the idea that paying higher wages than the market demands increases the size of the middle class, the buying power of laborers and the prosperity of the companies that pay those inflated wages.
The only trouble is, that legend isn't true.
Ford did pay those wages, but about half of the money was profit sharing, and the employees had to prove they were living upstanding and moral lives to get that extra pay. The automaker, with his anti-Semitism and intrusive social engineering, was deeply kooky.
But according to Stephen Meyer, a labor historian and professor emeritus at the University of Wisconsin-Milwaukee, Ford didn't pay so much because of beliefs about enriching workers.
He had no choice.
According to Meyer, in 1913, the year before Ford doubled wages, the turnover rate at his plants was 370 percent. In contrast, Walmart's turnover rate today is said to be 100 percent annually, still a very high number by today's standards.