Before Ford Motor Co., Henry Ford’s employment contract with Detroit Automobile Co.

[Rob]

A copy of Henry Fords contract with Detroit Automobile Company. His title was listed as “Mechanical Superintendent.,” with a three month employment period. I had not thought of this before, but Ford was strictly a short time employee, albeit supervisor. Historians often wrote that HF presided over two failed companies prior to FMC. However, with no ownership, his role in Detroit Auto Co. seems less significant to its success or failure than i previously accepted:

Courtesy of The Henry Ford.”, all rights apply.

[Wayne Sheldon]

Very interesting.
One of the greatest inventors in the history of mankind, and he gets paid a measly $150 per month as a "superintendent", and they get ALL his inventions during that time assigned to them?
I am glad that didn't go on any longer than it did!
However, I am sure it was a necessary stepping stone for Henry. He likely acquired contacts that aided him in his near future.

[Rob]

Wayne,
yes, I agree. To think, had he settled into the position, Henry Ford may have become one of a series of factory superintendents who made the rounds among early Detroit area auto manufacturers. As far as "presiding over two failed companies, Detroit Auto, I believe minus Black, who signed this contract, moved into "Henry Ford Company." I"ve often thought these two companies were essentially the same, with primarily the same investors, and then using Henry Ford's name, due to his racing successes, to name the "new" company.
Maybe the fact he wasn't involved in ownership, only non-Industry men were original investors, helped flavor his distaste for "investors."
Cheers,
Rob

[Rob]

Going through some old files...........

"Auto Topics" magazine, December 1901. "What was originally the Detroit Automobile Company has since its reorganization become known by its new name, the Henry Ford Company,"

Other period newspaper articles:

[DanTreace]

Very interesting.
One of the greatest inventors in the history of mankind, and he gets paid a measly $150 per month as a "superintendent", and they get ALL his inventions during that time assigned to them?
I am glad that didn't go on any longer than it did!
However, I am sure it was a necessary stepping stone for Henry. He likely acquired contacts that aided him in his near future.

Wayne, don’t think his first wages were measly, with inflation, that $150/mo today is over $60k a year salary. Plus most contracts even today for development engineers contain the ‘invention clause’, only fair as the co. hired the employee’s intellect too!

Rob, your primary research on H. Ford is a real treat, keep it up

[Rob]

Wayne and Dan,
Thank you for your input. I frequently attempt to put myself in the shoes of these men and women (although I don't know how successfully). I used to use 25 times the dollar amount when attempting to understand what things cost at the turn of the last century. Now, over the years, I've changed to 31 times (according to a recent conversion rate i found online). However, there a were other factors to consider, such as no income tax. About $60,000 per year, with no income tax makes a different "look," however, the three month period would be less than comforting to me. The real "deal breaker" portions of this contract to Henry Ford might have been the patent assignment and no ownership.

When Ford left the future Cadillac Company (Henry Ford Company), I believe he settled for $850 ($26,000 today) and retaining his patents (if my memory serves me correctly, and it seldom does).

One thing I believe is also lost to historians is the fact that Ford, on his next and final go around, the start of "Ford and Malcomson," which became Ford Motor Co., acquired the largest share holder title, holding 26%, along with co-founder A. Y. Malcomson. He did so by adding his patents (taken with him from what became Cadillac) as equity in exchange for shares (hope I put that correctly). Regardless, he, and Malcomson were equal, and majority shareholders (when added together) in the new "Ford Motor Company."

The rest is "history."

Late note: I'll start a thread on Henry Ford's Canadian experience. I think reviewing that arrangement, coming a few year's after he worked for $150 per month with Detroit Automobile Co. provides an interesting comparison.

[TXGOAT2]

///"with inflation, that $150/mo today is over $60k a year salary"

Indeed. Besides that, there was no income tax and no "Social Security" tax. What's more, cash on deposit would earn interest, which was also tax-free.

[jab35]

This is the first time I've seen Henry Ford's signature, the information in this post is enlightening, thanks, Rob for sharing. jb

[Wayne Sheldon]

$150 a month was really good money in 1899. However, that was for a superintendent's job! And $60,000 a year today isn't exactly "in the chips". In California, even teachers make about that much, and most people do not think of them as well paid. At that salary, Henry wasn't going to buy the big Winton anytime soon!
Henry Ford was too intelligent! He knew there was a better way to do things, and under the thumb of management, doing things their way, he knew he wasn't going to get there.

The world, and the economies that rule the world's financial structures are very different today than they were then. Many people would say that the economies and the laws that regulate them were much better in those days. However, we better not go down that road here. Only to say that comparing dollars then to dollars today is like apples and oranges. They may both be fruit, and they may both be round. But beyond that, they are not much alike at all.

Henry was not born wealthy. And he had a desire to experiment and develop machines and ideas. And THAT cost money, lots of money! His early racing successes gave him some marketable fame. And that helped to attract investors. However investors usually have a way of wanting control. I can't really fault them for that. It is their money. But money alone does not guarantee success! The investor's control all too often holds back the real potential of the company. He needed to find investors that he could work with. And Henry learned from some of his investors. He learned to be ruthless when he needed to be. The future Ford Motor Company got bigger and better year after year for most of two and a half decades!
Not bad for a man already in his middle age!

[Rob]

Wayne, lots to think about. I enjoy this hobby for the history of the time almost as much as the cars themselves (almost). Henry Ford is intriguing in so many ways, and there is so much written about him and FMC, yet much to learn yet in my opinion.
As always, thank you for your informed insights and thoughts. Hope all is well, and thank you for your posts.