May 3, 1926 (15th Parliament, 1st Session)

LIB

Charles Edward Bothwell

Liberal

Mr. BOTHWELL:

I am coming to that.
Those figures Show that the cost of manufacturing in the Ford plant at Ford, Ontario, last year amounted to $33,951,844. He says that 47 per cent is exported. The sales amount to $25,714,166. The value of his product would be approximately $48,517,294, showing a surplus 'there of $14,565,450. How much of that goes in paying commissions and one thing or another I do not know, but from their own book there is apparently that amount of profit on an investment of $31,275,530.
The hon. member for Assiniboia read an interview with Henry Ford in connection with this matter. There is a little more of that conversation that I want to put on record. The interviewer continues:
"Mr. Ford/' I began-, "you have -made two admissions that are very interesting. I wonder if you really wish them to be published?"

The Budget-Mr. Bothwell
"You may write anything I have said," he answered. W'hat are the things I've said?"
"You've admitted that tariff protection encourages indolence in manufacturing and that tariff reduction must produce greater efficiency and economy in your Canadian plant?" "That is true " he said. "What's the other?" _
"You've admitted that Ford cars have been getting a higher price than necessary in Canada." "As part of the general tariff situation in Canada-Yes. It
works that way with every commodity and under every tariff. Free trade and free competition are the only healthy conditions," he repeated.
"I would like to ask you about another point which disturbs us in Canada." "Go ahead," said Mr. Ford.
"There is some belief that tariff reduction may mean withdrawal of American branches in Canada and that all this business will now be placed in United States factories." "I don't know anything about the other fellows," said Mr. Ford briskly. "I only know about our business. It is not that way with us.
How Canadian Company Started "Did you establish your plant in Canada because of the tariff?" "No. I didn't establish it at all. It happened this way. Mr. McGregor (referring to the late vice-.president and general manager of the Ford Company of Canada) was running a buggy works over at Windsor. He came across the river to me one day, about twenty years or so ago, and said: 'Look here, my buggy business is going to pass. I'd like to make your cars in Canada.'
"I'd never seen him before but I liked his looks and said: 'AH right, I'm interested in that sort of
thing. Three months later McGregor opened the plant.
I remember that conversation. We were standing in the alley bock of our first plant over on Mack avenue. That's how the Canadian company started.
I never thought anything about the tariff. I never have in starting a plant."
"What about Manchester?" I asked. "I started the plant in Manchester," said Mr. Ford, "to put industry into the country. Tariff had nothing to do with it. All our plants have been located to serve *different localities, like the twenty or more we have in the United States. I would want to manufacture in Canada for the same reason,"
"And you believe the tariff is not a factor in locating .in Canada" "It is not with me," replied Mr. Ford. * . .
Mr. Ford was silent .for a moment, thinking. The stockholder," he said at last, "is the only person who may lose in the tariff reduction, and he's had enough anyway. We shouldn't worry about stockholders. They don't deserve profits; they don't earn."

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL
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