The Ford Tractor Company Minneapolis, Minnesota

By Staff
Published on September 1, 1978
article image

Atkins, Iowa 52206

This article has been developed from research material used in
Mr. Wendel’s  forthcoming ‘Encyclopedia of American
Farm Tractors’ to be published in mid 1979 by Crestline
Publishing Company.

The early Ford tractor used a two-cylinder 5 x 6? engine, but
the later model used a Gile-built 5? x 6?’ two-cylinder
motor.

Some manufacturing was done in the shops of Flour City
Ornamental Iron Works, as well as by the Veerac Motor Company. Some
sheet metal work and painting was done in the Ford shop. Production
was very limited. Perhaps Ford Tractor Company’s greatest
impact was that the furor created by its organizers brought about
renewed honesty and integrity in the industry.

The Ford Tractor Company of Minneapolis, Minnesota was
incorporated under South Dakota law on March 15, 1915. W. Baer
Ewing was the moving force behind this company. Ewing located one
Paul W. Ford of Minneapolis and induced him to join the
organization. Ford agreed to allow his name to be used in
connection with the company, and was to receive definite
compensation therefore.

Prior to the Ford Tractor Company, Ewing had been involved in
the insurance business in Texas and Arizona. After that came the
Federal Securities Company in Minneapolis, with Ewing as its
manager. This company made the papers with various stock deals. One
involved the Power Distribution Company, and its subsidiary, the
Union Power Company. This organization owned several municipal
lighting plants, and Federal Securities Company undertook to sell
first mortgage bonds on the power companies. All went well until
the bonds became due. Three suits were filed in one day against
Ewing and Union Power. Finally, the affairs were straightened out
through the sale of the power plants to another company so that the
bond holders could gain some return on their investment. Federal
Securities Company then tried selling stock in a Nicaraguan banana
plantation.

Now comes the Ford Tractor Company. Ewing controlled Federal
Securities Company, and instigated the Ford outfit. This was a
swell setup, since it was Ewing reaping the profits as Federal
Securities sold the Ford stock, and Ewing again as Ford sold the
machines to farmers.

The general impression was given that Ford Tractor Company was
in some way connected with Henry Ford of Model T fame. In fact,
there was no connection at all, but the mention of ‘Ford’
in those days was sufficient to sell a lot of stock. That was why
Ewing brought Paul Ford into the company. Ford was hailed as the
designer of the machine, when in fact, he had been an electrician
with Andrews Heating Company at Minneapolis, and knew nothing about
tractor design. For a time, Paul Ford was billed as Supervisor of
Construction, but on June 19,1916, he was relieved of his duties,
but continued to draw his salary. At this point, Ford was unhappy
with his role in the organization, but could find no way to prevent
further use of his name in connection with the Ford Tractor
Company. It should be noted that Henry Ford tried to put a stop to
a ‘Ford’ tractor coming out of Minneapolis, but was
unsuccessful. His tractor enterprise known as Henry Ford & Son
could not then sell their new tractor as a ‘Ford’, but had
to find a different name, and settled on ‘Fordson.’

Troubles abounded for the company. Farmers were upset with
making a $75 down payment on a new tractor, and getting neither the
tractor now a refund. Stockholders became uneasy too, and this
forced the company into receivership in 1916. While in
receivership, Ewing organized a new Ford Tractor Company under the
laws of Delaware, claiming that the original patent rights were
his, and not subject to the receivership. The second outfit was
incorporated in November, 1916.

Now Ewing transfers the patent rights to the Delaware
corporation, and gets $9 million in common stock in return
therefore. Of this, $3 million was transferred back to the
treasury, and was to be sold by the brokerage firm of Robert P.
Matches & Company. Under this neat little arrangement, there
was nothing to prevent Ewing from selling his stock, either
personally, or through Matches & Company. Under a sliding scale
arrangement, the sale of the $3 million in stock would give Ford
Tractor Company $850,000 with the other $2,150,000 going to Matches
& Company.

Within a few months, Ford Tractor Company, Matches &
Company, and W. Baer Ewing all came under scrutiny. In fact, things
got so warm for Ewing that he resigned in March 1917, and was
reported to have moved to Canada.

On August 1, 1917, the Federal Grand Jury in New York City
returned indictments against W. Baer Ewing and Robert P. Matches,
along with the original Ford Tractor Company of South Dakota, and
the later Delaware corporation; the company in which the stock was
sold through the United States mails. Robert P. Matches was also
under indictment for allegedly using the mails in a scheme to
defraud, involving the Emerson Motors Company.

In early 1918, a receiver was appointed by the courts to wind up
the Ford Tractor Company affairs. The property was sold on October
21, 1918.

As advertised in 1915, the 8-16 Ford was a simple outfit, but
evidenced hasty design and mediocre workmanship. A limited number
were built and sold, but production never approached the glowing
figures suggested by the company. Originally priced at $350.00, the
price soon rose to $495.00. It was painted dark green with dark red
fenders and white lettering. A 10-20 Model ‘C’ offered in
1917 was basically the same machine with a $695.00 price tag. It
had a red finish with gold lettering. Its unsatisfactory
performance led in great part to the enactment of the Nebraska.
Tractor Test Law.

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