THURSDAY. DECEMBER 23. 1920 PAGE THREE ADDRESS OF C. W. MATHESON Delivered Before < » Dodge Brothers Texas Dealers at Dallas, Texas ? November 15, 1920 $ I ► » ¡ » & $ $ $ $ $ Gentlemen, It would bo very difficult for me to tell you how deeply I ap­ preciate your welcome, and it would be equally difficult for me to tell you how happy 1 am for thin opportunity of di: < us. lng our problems with you around the family tubl”. Each one of you is a member o’ Dodge Broth­ ers business family, and between us th< re have never been my Hecrets. Everything that Doil :o Brother luii ii-inc in .lien 1 k-.tio.i- ship with ii. ir dealers ami tiie pub­ lic in in: ope: bool:. Wo have neve ■ kept any : ccrets from them. ’ We have told you frankly, ah,: . wlr we have wanted you to do certain things, so today I i.m going to dtseii- with you some of tlie inside pi obi‘ins of our bus:ne; . reason fhey <1 ■ not uni» ami va ­ ing years, until today, by making il is becau they h.,Ve never been the simple statement that Mr. H. E. taeght vain» ouJ th ■ leuson tin y Dodge made to me a few weeks ago h.iVi- never beta lau ht values is when he said: "Today, Dodg. Broth­ b.cause they have n■ we.- had anv eis’ profit per car is a smaller profit stand ml •> go by. Tl. ’ itnderstai.l per car than when Dodge Brothers tlie gold t:i..'i.:i, undertook to that, and to do so, I am goini: to give and did t table h a standard of mo- you somfc figures. There is pop- tor car value; a .»tanda rd by which ular Ï eeling fostered by many nevvs- hmotor cat value could be jtnr. -d. papená who se editors ar< not suf- How did they go about io do that? f. Hy inf irmed, 'hat the price» of They determined. first of all. they man r ials th. at enter into the constrn- would not build a car Lo conform lo I! .. i mote >r cars ate lower, and are price, but Instead , they would build be coniing lü’ wer and lower every day. a car to (-o’ fo:ii. to an ideal which M hat are t lie’ fact -? The price of exi ted in their minds i hey be- is not lower, the price of pi: lievtd the public wanted a bet'. : iron is not substantially lower, price o. , p . is not lower. On the con­ These are times which wer- pre­ ear of a certain type; they believ'd the public wanted a car of a cer.a'n trary, pig iron, today, sells for forty dicted whin I was I ere January la..’ type that they could afford to buy, '■ forty- tv.o dollar, a ton. We ha>e Every dealer was then u. ving Dr - that would be safe to ride in; that ii our yard enough pig iron io build Brothers to ship him more <• ; al: ilie Dodge Brothers cars we can every dealer v. aS urging Dodge Bro­ v. mid give them assurance of long life an economical service, a good build between now and nex> May at thers to build more cars; to build looking, easy riding high grade car. the .aie of six hundred twenty-five a more factorin',; Io lure more nu n; to at a low price. There v as not such da. , d tlikt pig iron cost us twenty do moi- business. The records <.f a car as: that in the market at that nine dollars a ton. The market has that nmeii.iv will show you that I time. Dodge Brother.- undertook to - gc’ to break from forty- two dollars told you then that it would be Dodge and did build that kind of a car. to .twenty-nine dollars before the Brothers policy never to expand in a price of Dodge Brothers car will be spectacular fashion, but Dodge Bro­ I will give you a few illustrations to show you how they cat. ied out their affected. Coal, thousands of tons, thers expansion would be gradual, plans. We will take for example, co us six dollars forty- eight cent: sane, sound and safe, both for Dodge the radiator. All radiators up to a ton at our plant because we bought Brothers and their dealcis. that time had been made of bra s. it long ago, paid for it, and had It We have that expansion program All the type of radiators in the mar­ delivered before the freight rates id- on the way It may seem si ai.ge to ket at that time were tried out. The vi need. The same way with sand, the public al lart.e, that I’ dge Bro­ tubular type of radiator was found limestone, lumber, all kinds of met­ thers are now employing more than to be tlie most efficient; it was al. .. Acics and acres we have, cover­ twelve hundred hands dally, doing made of brass, Mr. John F. Dodge ed with those materials, and paid for nothing but constructing new, lar a r inquired how much more efficient one, two, three years ago. quarters, in Hie form of new j .uu..c- would that radiator be if its > core The price of Dodge Brothers car tive buildings, which, when equip­ was made of copper. On test» it today, is based upon those costs. The ; roved to be six percent more effi­ pt ice of Dodge Brothers cars today, ped, v.:!’. repr ,t a value of ap­ cient thaif the same radiator male proximately eight million dollars. is not a replacement price. I am of brass. Mr. Dodge then said, “Onr sure you know what I mean by re­ Dodge Brothers did no: discon nue radiators will be made of copper.” those building operations, did rol placement price. To illustrate: a He did not ask, how much more will discontinue that expansion program, friend walked ir.to a shoe store dur­ it cost if made of copper; lie askeT ing the war period to buy a pair of just because cotton happens to lie, how much more efficient will it be shoes fo. hi; little daughter. The for the moment or for the hour, at if made of copper. He did not care the lowest price in its history, or ’S, price given him was six dollars. He what the cost was, because that, nearly so; because cotton can not bought the shoes, then on looking cost would be figured in the selling stay there for ever. History is full them over found a price tag on the' price. and overflowing with evidence that bottom of one shoe, marked four dol­ reaction equals and always follows lars fifty cents. Through that price Another illustration i: that of the action, and I told you in the same had been drawn a line, and over the starter generator. Dodge Brothers words last January, that we wanted line «a. ill:- kid six dollar:. Why? t ied our the leading starter gener­ you to prepare for this very time. Because, to replace that pair of shoes ators. There were many well-known I told you then that time, were ab­ on tlie day they weie sold would cost hi, i-g.ade starter generators in the normal; very much so; I told you more money than the original pro e of market, the name of any one then that it would be wise for ev­ at which the shoes were bought ini which, in the specifications of a ery dealer to be sure that he enjoy­ the sale price made. A four dollar new car, would have carried with it ed Hie friendly interest of every and fifty cent price would have a feeling of confidence. When I first Dodge Brothers car owner, because given the merchant a legitimate pro­ read the specifications of Dodge he ¿lever could toll when the time fit. based on what the shoes actually Brothers car and found the North­ would come that ho would need cost him at the time, but he told east Starter Generator specified it that friendship in his business, them at the replacement price, be­ meant nothing to me, or to you or to That day has conic. You do nt ed cause to replace them the shoe would he public. Dodge Brokers did not the friendship of every man to have cost him more money. H-- care anything about that. They whom you have sold a car; we be- therefore made a double profit on knew what the Northeast Starter lieve you have it; we believe you the shoes. In other words, lie pro­ Generator would do In the hands of deserve it. fiteered to that extent. Dodge the car owners. ' On receiving the Brothers have not done that. The report of their engineers, they de­ Dodge Brother, will never do any- price of their car today, is based up­ cided to buy the Northeast Starter thing or permit anything to be done on pig iron at twenty-nine dollars Generator. It cost more than any to jeopardize the standing of their per ton, coal at six dollars forty­ other starter generator in the mar- cars i n their family of dealers, or eight cents, etc., and the same down ket by a large margin, but it was Those with the American public, through hundreds of items. Were procured because it was the best. words were given you by Mr. John Dodge Brothers forced to go into the You know the result. F. Dodge, five years ago. You know open market and buy at today’s Take the body. There never had how faithfully that promise has prices, the materials which they em­ been an ail-metal body commercially four been kept. In a family of ploy in building their car, the higiier marketed. All bodies had been made thousand dealers to whom we must materlal costs at today’s market of wood and sheet metal screwed and distribute our product of six hun- prices would force them to increase riveted together, squeaking, short dred twenty five cars a day. fifteen their present selling prices. Some lived. Dodge Brothers conceived the thousand a month, we are bound to materials can not be bought one, idea of building a body practically make some mistakes; we niay, now two, and three years in advance; we without joints, in that all joints were and then, ship an extra car, or an can only get certain materia! from electrically welded, w'ilhout rivets, extra carload to some dealer, who, quarter to quarter. It is the advance without wood; a body that would perhaps has not the funds to meet in cost of these materials and the WOUld carry a permanent finish, that the shipment and who may be em­ Constant advance in cost of labor would not squeak, would not rattle: barrassed to meet that shipment. which caused us to advance the last, and at 'lie tame time, would be We may find, and we have found price of our car in six years from conspicuously handsome. The dies some few, only, of our dealers in ,be ven hundred eighty-five< dollars from which these bodies were built the same predicament that the dudo to twelve hundred enghty-five dol­ cost a quarter million dollars! — a was in, that Mr. Cameron tells lars, 61 per cent grand total. What heavy investment, especially when about: A dude and a tramp met on every one said it is not possible tef other commodities can you name that the highway; the tramp was after show only that advance since the build that^design of body. This body the dude’s money, so he proceeded year 1914? cost more mo_ey, but it is a better to get it; the dude put up an aw­ Now, I want to say something for body. And so. throughout the scoies ful fight, way beyond anything the the Information of the bankers who and scores of items entering into the tramp contemplated. They rolled are present and for the information construction of the car, Dodge Broth­ around over the ground; finally, ers strove to build into that car bet­ of the newspaper men also, and I the tramp won out and got the man’s hope all of you dealers will tell your ter quality. They did not know money. He was looking at it in bankers when you return. Your what they would sell the car for; the palm of his hand, and counte-l bankers are your best friends. We they didn’t fix any price on it, but only thirty cents. “Why,” he said, ask you to cultivate your bankers, when they built enough of the cars “I never knew a man to put up such to know them better, and let them to determine the actual cost to build a fight like that for thirty cents.” know you better. To those of you that kind of a car, they added to that "Well,” said the dude, “it wasn’t who haven’t a proper bookkeeping cost a moderate profit, a smaller the thirty cents that I was fighting -vstent, we urge that you procure margin of profit than motor c for, but I was reluctant to reveal : early as possible. Dodge Brothers manufacturers had been accustomed my financial condition.” (Laughter.) Uniform Accounting System, which to adding; and to that, they added a will enable you to carry in your We find that applies, not only t« selling cost, a smaller selling cost pocket every day a statement of your our deniers, but it applies to some than anyone in the industry produc­ affairs, so that when your banker of our (.i. ;ic ’ bankers. Some deal­ ing in a large way had been ac­ asks you how you stand, you can iell ers have wired us to stop a ship­ customed to add; To that, they added him exactly and he will know you ment which we were asked to for­ a dealer’s profit, a smaller per cent- You place are telling him facts, ward, explaining that, after arrang­ age of profit than other motor par your banker in a very difficult posi- ing with their banks they would be makers had figured. That total coin- tion to help you when you don’t informed later that the banks did pi i.sed the selling price. There Was know exactly the affairs of your not have the money. There ire nothing added for service that business; when you don’t know ex­ some bankers in the room, whom. I might or might not be required, be­ actly how you stand, and it is sur­ am glad, are here. There are soma cause Dodge Bi others determined to prising as we make the rounds of our newspapermen in the room, whom build a car so good that it would dealers to find how many do not I am very glad, are here; because need the minimum of service, unless know the actual condition of their we -have no secrets with the public neglected or abused, and such service business. Those are the dealers who in the same sense that we have no should be paid for. as and when secrets with our dealer organization. are the first to complain of their needed, the same as you would buy bankers not giving them hearty co­ We want them all to know the story oil, fuel and »tires as and when just as it is, beuuse it is an inspir­ operation, The bankei wants to go needed. Dodge Brothers were da­ ing story. If ell industrial n u ir. ass the limit with every man who de- te, mined that the selling price of was on the same Oasis as Dodge serves credit, It is a hardship on • that car would establish a new and Brothers business, today, there any banker to turn down a patron. acceptable standard of motor car would be no panic. The reason I believe that Dodge Brothers dealer value. people do not buy good» is beenuse have been able to get from their I will jump quickly the interven- banker generally. throughout the they’ do not understand values, the Ing to change for the better just in proportion to your efforts to chan,.- them in your respective districts, in your line of business. Dodge Brothers built for the three months’ period ending July, August and September, forty-thrci thousand three hundred sixty-one ; the greatest production of iiu- tor cai of passenger cars—- with one ex tion, for thut period of time in the history of the Industr’-. There are in the hand: : of our deal- ers today, or enroute (? to de le.■-. a les r number of Bulge Brothers ca than "we have built i” our fac- tory and ' shipped ’ ’ ' s since the first day of Octoger, which t means, that every car that we shipped fix for the three month ■’ period ei.di..;. September 30, is today in the hands of their users. Now, I will attempt to tell you briefly what our plan is We a re building today, as we sit in this room, six hundred twenty-live < ca rs daily production. We will build I *o- morrow six hundred twenty-flve cars. We will continue to build six hundred twenty-five cars every day, if you dealers can show us that you can deliver them if you and your fellow dealers throughout the coun­ try can deliver them, Just as soon as the time comes, if it does come that our dealer organization cannot absorb six hundred twenty-five cars a day. Dodge Brothers will not build Why have no Dodge Brothers deal­ six hundred twenty-flve cars a day. ers failed in business? Because, We have stocked you, some ten per Dodge Brothers policy will not let per cent, some fifteen to twenty them fail in business. In the first cent, what we have believed you place. Dodge Brothers do not select could absorb. The average for the their dealers at random. I was New whole country is about ten per cent. Y rk District Representative in my We will curtail or we will . yend first association with Dodge Broth­ production before we will overload ers. It was my duty then to select our dealers or force our dealers to the first dealers who were chosen in suffer losses. Some dealers have in­ New York and Philadelphia districts. dicated that they fear that Dodge My instructions were to select the Brothers would force them to take best dealer in each city, and in so so many cars they would “get in doing, to be governed by the rule of wrong” with their banks. Dodge the three C’s- -Character, Capability • Brothers will never do that; do not and Capital; Capital last; Character be afraid. We can not be one htin- first. We had applications from dred per cent perfect in our judg­ nearly all dealers then in business. ment, anil we >ve may have made nus- 1 would take those applications in takes in ov •r shipping some dealers, to the Lan’:. The bank was tile first but if we have, gentleirien, it is be­ place I would go. I would explain cause we have been encouraged by the object of u:y call and would,ask other dealers to do so; because we the banker to kindly indicate the have dealers in our organization best dealers in that city in the order who, fortunately, are taking as high of their imporance. When I got that as two hundred per cent of their al- banker's opinion. I would go to an­ lottments one hundred seventy-two other b ..ik and request the same in­ per cent for the entire San Francis- formation. Invariably, the judgment co District; one hundred fifty per of the bankers agreed in one, two cent for the New York District. We three, four order. Was there then are shipping to those dealers in the any uncertainty in my mind as to San Francisco District seventeen cars what dealer I would choose in that for every ten that their agreement town? Not a particle. And that allotments call for. They are mak­ gentlemen, is the way you have bee.n ing a lot of money. We under-esti­ chosen; and that is one reason w hy mated tliqir requirements when we know that your bankers are will­ writing tlielr agreements. Some help to the proper limit to Ing to go dealers are receiving more cars than you. they can absorb. Oftimes it is be­ dls- We do not want you to be cause the dealer has not tried or nrayed by the present emergency be- worked as hard as he could. cause no matter how many days We have a very strong feeling the sun may shine during the year that you realize the seriousness of there are certainly days in which the present crisis and that you will the sky will be tilled with the black- do everything humanly possible to of clouds. Sometimes, est kind do, to help us over. We have come these clouds last for days before they to you as members of our business Sometimes they pass pass away, family and to tell you frankly, we quickly—but they are sure to come need your help, and we expect and sooner or later and unless you are now that we are going to get it. We not prepared for them you have need your fullest confidence, and we been as wise and forehanded as vou will never abuse it. We never have, should have been. and I am sure that everyone of you This nation is too rich—the Amer­ feel that we never will. ican people are too progressive- the We consider it good business for fundamental principles underlying a dealer to lay aside one motor car your business and ours, and the bus­ for every order he has for future de­ livery, provided that order is a bona iness of the nation are too sound for tide, signed, cash deposit order. l>o any national calamity at this time, not fool yourselves with verbal or­ Times have been too abnormal to Prices have ders, or with orders without cash continue unchanged, A deposits. Fome of you have done it been too abnormal to continue. in the past, but do not make that change for the better is about due. mistake in the future; it is not good The pendulum has swung too far in the opposite direction, it cannot con­ business. We have dealers who now have accumulated over three hun­ tinue to swing in that direction longer, because the world needs our dred orders against spring deliveries. We believe that, as we go into the crops and needs our manufactured winter months, selling will grow products. All statistics show that. easier, and you will get more and The Government reports show that. I read something in the Dallas more oiders for spring or future de­ liveries. News this morning, that I would like Some flew have asked why we to repeat: will not guarantee the price until “A large potential demand has May first, or some other future date. been created and there is every indi­ It has taken six years of time to cation that the vacuum will be fill­ educate the public that Dodge ed by eager buying when retail Brothers have no models or series of prices approximate those hitherto re­ cars. Those of you who were in the garded as normal. All Americans automobile business six years ago are not thriftless and extravagant well remember the hardship it was fools. There are many who have for you several months prior to »ho worn old clothes and refrained from automobile show time to do business. buying new bouse linen and oth -r Everyone was waiting to see the new necessities for the last three or four models: to learn the new prices, years. They are able to buy and Dodge Brothers took the position will buy largely just us soon as that they would not burden their reasonable prices reward their pa- dealers with that hardship; that we tience and self-restraint, and while would place a price on our cars the luxury trades may suffer by da­ that would be right; we would make flat ion, there is every reason to ex­ changes in the car from month to pect that those who deal in staple month during the year, at any time and necessary commodities at reason­ we found it possible or necessary to able profit will soon be as busy as do so, in order that you could do a ever.” twelve months’, year round business in Dodge Brothers cars. That prin­ We do not want to say anything that may cause any of you gentle­ ciple has been adhered to steadfa 1 - ly, and you know to what great men to Infer that we believe .hat benefit to you. the times are going to change for It is far better to state the fact the better over night. They are go- United States, the limit which their bunks legitniately, fairly and rea.O'l- ably extend. Now, on the othe hand, I want you to remind your banket- that there is a difference be­ tween Dodge Brothers motor car val­ ues mid tlie value- of other com­ me it Its. ”’h:-;n ho questions th value ot Dodge Brothers car as si for a loan to warehouse tlr k him if he can name any COll r, any stock or bond, even bank or government bonds that little fluctuated in value Dodge Brothers cars, In six there has not been a fluct ua- I one one-hundredth ot o'ie per i the value of a Dodge B ythers ’ security to a loan, A bank or bn ker loaning money on a Dodge Brothers car knows that he is loan- mg money on something that is worth very much more than the Dodge Brothers (.mount he loans, car p: ices have not fluctuated; the only change has been a char ge up­ ward, not downward. To our know­ ledge no banker has ever lost a dollar -or. a Dodge Brothers dealer in the history of Dodge Brothers institu­ tion. No Dodge Brother dealer has ever failed in business, to our know­ ledge. Is that not a record (hat should inspire your bankers’ con- fidence? That is the kind of ' mor- tality record on which banks, bar k- ers and insurance companie would like to base their rates. THE SUNSET GARAGE that the reason why Dodge Brothel cur price cannot be reduced, Is cause there never w is any ex profit added to the price of ear, t and therefore, there, is none io take off. I you!: J like to remind you of a few parai graphs in an advertisement that appe. .... d iu your papers Sunday, “Dodge Brothers’ great works ar.® operating at full capacity every day. It is gl 'd to be able to say that Dodge Bi in , s' in illicit faith in the tnat g ■ vs out of good value being vindicated by eve.y- thing hat is going on in th.-It plant.- today. v • il that Dodge Bro- ii<: -< ives, from the vary U.S-, io n._ p.. duction of a car which would rfe- -uperior to all ex- ternal conditions und be, in effect, and in fact, a la.. uuio itself. They were supremely satisfied, to begin witii, that good motor cars supplied a great and permanent hu­ man need. They were sure that no matter what happened, there would always be an inexhaustible market for the particular kind of a car they hoped and planned to build. They were convinced that they could produce a car so sound in value, so saving, and so satisfactory to the individual owner, that no out­ side influence could shake its hold upon the public. The simple facts, as they exist at. this moment, are so inspiring that you are prompted io shaie them with everyone who shares with Dodge Brothers their faith in sound bus­ iness principles. Dodge Brothers are more strongly and soundly entrenched in the good will of the public at this moment than ever in their history. Every good result which John and HoikCe Dodge counted upon when they committed themselves to the principles of building good will by building good value, has come to puss. will Their certainty that people always discover a meritorious pro­ duct, set it apart, prefer it, and re- ward it, is continuing to come true with each and every succeeding bus- iness day. Dodge Bi others Motor Car is til demand because Dodge Brothers Mo­ tor car meets a definite economic need and satisfies a human craving for honest and substantial value.* its market will continue to grow, and the production continue to in­ crease to meet that mark t, as long as merit continues to be the deter­ mining factor in motor car and in all other manufactured products.” I have received a telegram tro’n our Director of Distribution, Mr. J. E. French, this morning, in which he says, “We are all going one hull- died per cent. Ti ll the Texas deal­ ers assembled that they are all di­ rectors of distribution. Twenty-two thousand employees on the job this morning for them, and we need their help. Mr. Jennings wants to know if dealers realize that they are ac­ tually Dodge Brothers salesmen and if the realize the value of service and owners good will in promoting growth of business. The fundamental principle of business on which Dodge Brothers built their dealer organization was that the dealer must make money. Every policy we have is built around the dealer’s success, because if he does not succeed, we can not suc- cecd, so we wutch his success and build to the end thut he ahull sue- ceed. Gentlemen, you don’t care if you don’t make any money this year. We don’t care if we don’t make any money this year. It is not for this year we are building; we are build­ ing for the future. You have made money In the past five and six years. What if you do have bad year, so long as in the end you average up a good profit? That is what we aim to do, and that is what we are going to do. In closing, I want to just set your minds at rest on one other thing: In our dealers’ meetings we have been having in Detroit, we have been asked if there was any truth to the rumor that Dodge Brothers are going to be sold to Wall Street interests, or ineiged with the Gen­ eral Motors. I was very happy to be able to tell them that, at our dis- trict representatives' convention last the May, Mr. H. E. Dodge made statement which he (reiterated to me only a few days ago, that Dodge Brthers business is not for sale, in whole or in part, to anybody at any price, no matter what the offer may be or who makes it. I tell you that, in closing, gentle­ men, so that you may know definite­ ly, that the policies with which you are so familiar and under which you have worked so happily and success- fully these past six years, will con­ tinue to be the policies of Dod re Brothers, and they really heve only one policy, and that is the policy of the equate deal to everyone. ? ? » I ? $ ?