Monday, Jul. 08, 1940

Ford's Rolls-Royces

Month ago Henry Ford jolted the imagination of the war-scared U. S. by offering to turn out 1,000 airplanes a day if the Government would let him do it his way. Secretary of the Treasury Henry Morgenthau grasped at the magnanimous offer, called Son Edsel to Washington to discuss what Ford might make. Upshot: Edsel tentatively agreed to make 6,000 Rolls-Royce liquid-cooled engines for Great Britain, 3,000 for the U.S.

Last week Father Henry thought differently. Reason: a fervent isolationist, he will manufacture only for "Defense," not for Britain.* At once the entire deal was declared off. Defense Commissioner William S. Knudsen issued a pained, circumstantial account; Morgenthau explained that inasmuch as Britain had given the U.S. permission to make the Rolls motor, "fairness and policy" required that Britain should have the right to buy them. Said Henry Ford: "My offer to make airplanes, aviation engines or anything else the U. S. Government needs for defensive purposes still stands."

Repercussions to Henry Ford's stand came fast. The city of San Antonio canceled an order for 22 Ford cars because "Ford has taken a stand against the Government." Members of the Canadian Parliament debated confiscation of the Canadian Ford plant. Officials of Ford's plant in Great Britain bought newspaper ads to advise the people that the plant was working for the Government. Members of the Defense Advisory Commission, meanwhile, began negotiations with other motor makers (notably Packard) in an effort to get the $130,000,000 Rolls-Royce order placed.

* Last week Henry Ford went solemnly to a ceremony at the Detroit Club, there accepted the highest award of the British Institution of Mechanical Engineers--the James Watt International Medal.

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