The Age of Big Business by Burton Jesse Hendrick (read an ebook week .txt) 📖

in this country whose incomes exceeded $1800 a year; all in that class would become prospective purchasers of a low-priced automobile. There were 6,000,000 farmers; what more receptive market could one ask? His only problem was the technical one—how to produce his machine in sufficient quantities.

 

The bicycle business in this country had passed through a similar experience. When first placed on the market bicycles were expensive; it took $100 or $150 to buy one. In a few years, however, an excellent machine was selling for $25 or $30. What explained this drop in price? The answer is that the manufacturers learned to standardize their product. Bicycle factories became not so much places where the articles were manufactured as assembling rooms for putting them together. The several parts were made in different places, each establishment specializing in a particular part; they were then shipped to centers where they were transformed into completed machines. The result was that the United States, despite the high wages paid here, led the world in bicycle making and flooded all countries with this utilitarian article. Our great locomotive factories had developed on similar lines. Europeans had always marveled that Americans could build these costly articles so cheaply that they could undersell European makers. When they obtained a glimpse of an American locomotive factory, the reason became plain. In Europe each locomotive was a separate problem; no two, even in the same shop, were exactly alike. But here locomotives are built in parts, all duplicates of one another; the parts are then sent by machinery to assembling rooms and rapidly put together.

American harvesting machines are built in the same way; whenever a farmer loses a part, he can go to the country store and buy its duplicate, for the parts of the same machine do not vary to the thousandth of an inch. The same principle applies to hundreds of other articles.

 

Thus Henry Ford did not invent standardization; be merely applied this great American idea to a product to which, because of the delicate labor required, it seemed at first unadapted. He soon found that it was cheaper to ship the parts of ten cars to a central point than to ship ten completed cars. There would therefore be large savings in making his parts in particular factories and shipping them to assembling establishments. In this way the completed cars would always be near their markets. Large production would mean that he could purchase his raw materials at very low prices; high wages meant that he could get the efficient labor which was demanded by his rapid fire method of campaign. It was necessary to plan the making of every part to the minutest detail, to have each part machined to its exact size, and to have every screw, bolt, and bar precisely interchangeable. About the year 1907 the Ford factory was systematized on this basis. In that twelvemonth it produced 10,000 machines, each one the absolute counterpart of the other 9999. American manufacturers until then had been content with a few hundred a year! From that date the Ford production has rapidly increased; until, in 1916, there were nearly 4,000,000 automobiles in the United States—more than in all the rest of the world put together—of which one-sixth were the output of the Ford factories. Many other American manufacturers followed the Ford plan, with the result that American automobiles are duplicating the story of American bicycles; because of their cheapness and serviceability, they are rapidly dominating the markets of the world. In the Great War American machines have surpassed all in the work done under particularly exacting circumstances.

 

A glimpse of a Ford assembling room—and we can see the same process in other American factories—makes clear the reasons for this success. In these rooms no fitting is done; the fragments of automobiles come in automatically and are simply bolted together.

First of all the units are assembled in their several departments. The rear axles, the front axles, the frames, the radiators, and the motors are all put together with the same precision and exactness that marks the operation of the completed car. Thus the wheels come from one part of the factory and are rolled on an inclined plane to a particular spot. The tires are propelled by some mysterious force to the same spot; as the two elements coincide, workmen quickly put them together. In a long room the bodies are slowly advanced on moving platforms at the rate of about a foot per minute. At the side stand groups of men, each prepared to do his bit, their materials being delivered at convenient points by chutes. As the tops pass by these men quickly bolt them into place, and the completed body is sent to a place where it awaits the chassis. This important section, comprising all the machinery, starts at one end of a moving platform as a front and rear axle bolted together with the frame.

As this slowly ,advances, it passes under a bridge containing a gasoline tank, which is quickly adjusted. Farther on the motor is swung over by a small hoist and lowered into position on the frame. Presently the dash slides down and is placed in position behind the motor. As the rapidly accumulating mechanism passes on, different workmen adjust the mufflers, exhaust pipes, the radiator, and the wheels which, as already indicated, arrive on the scene completely tired. Then a workman seats himself on the gasoline tank, which contains a small quantity of its indispensable fuel, starts the engine, and the thing moves out the door under its own power. It stops for a moment outside; the completed body drops down from the second floor, and a few bolts quickly put it securely in place. The workman drives the now finished Ford to a loading platform, it is stored away in a box car, and is started on its way to market. At the present time about 2000 cars are daily turned out in this fashion. The nation demands them at a more rapid rate than they can be made.

 

Herein we have what is probably America’s greatest manufacturing exploit. And this democratization of the automobile comprises more than the acme of efficiency in the manufacturing art. The career of Henry Ford has a symbolic significance as well. It may be taken as signalizing the new ideals that have gained the upper hand in American industry. We began this review of American business with Cornelius Vanderbilt as the typical figure. It is a happy augury that it closes with Henry Ford in the foreground.

Vanderbilt, valuable as were many of his achievements, represented that spirit of egotism that was rampant for the larger part of the fifty years following the war. He was always seeking his own advantage, and he never regarded the public interest as anything worth a moment’s consideration. With Ford, however, the spirit of service has been the predominating motive.

His earnings have been immeasurably greater than Vanderbilt’s; his income for two years amounts to nearly Vanderbilt’s total fortune at his death; but the piling up of riches has been by no means his exclusive purpose. He has recognized that his workmen are his partners and has liberally shared with them his increasing profits. His money is not the product of speculation; Ford is a stranger to Wall Street and has built his business independently of the great banking interest. He has enjoyed no monopoly, as have the Rockefellers; there are more than three hundred makers of automobiles in the United States alone. He has spurned all solicitations to join combinations. Far from asking tariff favors he has entered European markets and undersold English, French, and German makers on their own ground. Instead of taking advantage of a great public demand to increase his prices, Ford has continuously lowered them. Though his idealism may have led him into an occasional personal absurdity, as a business man he may be taken as the full flower of American manufacturing genius. Possibly America, as a consequence of universal war, is advancing to a higher state of industrial organization; but an economic system is not entirely evil that produces such an industry as that which has made the automobile the servant of millions of Americans.

BIBLIOGRAPHICAL NOTE

The materials are abundant for the history of American industry in the last fifty years. They exist largely in the form of official documents. Any one ambitious of studying this subject in great detail should consult, first of all, the catalogs issued by that very valuable institution, the Government Printing Office.

The Bureau of Corporations has published elaborate reports on such industries as petroleum (Standard Oil Company), beef, tobacco, steel, and harvesting machinery, which are indispensable in studying these great basic enterprises. The American habit of legislative investigation and trust-fighting in the courts, whatever its public value may have been, has at least had the result of piling up mountains of material for the historian of American industry. For one single corporation, the Standard Oil Company, a great library of such literature exists. The nearly twenty volumes of testimony, exhibits, and briefs assembled in the course of the Federal suit which led to its dissolution is the ultimate source of material on America’s greatest trust. As most of our other great corporations—the Steel Trust, the Harvester Company, the Tobacco Company, and the like—have passed through similar ordeals, all the information the student could ask concerning them exists in the same form. The archives of such bodies as the Interstate Commerce Commission and Public Utility Commissions of the States are also bulging with documentary evidence. Thus all the material contained in this volume—and much more—concerning the New York traction situation will be found in the investigation conducted in 1907 by the Public Service Commission of New York, Second District.

 

American business has also developed a great talent for publicity. Nearly all our big corporations have assembled much material about their own history, all of which is public property. Thus the American Telephone and Telegraph Company can furnish detailed information on every phase of its business and history. Indeed, one’s respect for the achievements of American industry is increased by the praiseworthy curiosity which it displays about its own past and the readiness with which it makes such material accessible to the public. Despite the abundance of data, there is not a great amount of popular writing on these subjects that has much fascination as literature or much value as history. The only book that is really important is Miss Ida M.

Tarbell’s “History of the Standard Oil Company,” 2 vols. (new edition 1911). Of other popular volumes the present writer has found most useful Herbert N. Casson’s “Romance of Steel” (1907), “History of the Telephone” (1910), and “Cyrus Hall McCormick: His Life and Work” (1909); J.H. Bridge’s “Inside History of the Carnegie Steel Company” (1903); “Henry Ford’s Own Story” as told to Rose Wildes Lane (1917).

 

For Chapter V, the author has drawn from articles contributed by him in 1907-8 to “McClure’s Magazine” on “Great American Fortunes and their Making;” and for Chapter IV, from an article contributed to the same magazine in 1914, on “Telephones for the Millions.”

 

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End of The Project Gutenberg Etext of The Age of Big Business by Burton J. Hendrick