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Business Organizations Keyed to Macey
Dodge v. Ford Motor Co.
Citation:
170 N.W. 668 (1919)Facts
When plaintiffs made their complaint and demand for further dividends, the Ford Motor Company had concluded its most prosperous year of business. It had declared no special dividend during the business year. In justification, the defendants have offered testimony tending to prove the following facts: It had been the policy of the corporation for a considerable time to annually reduce the selling price of cars while improving their quality. On June 1915, a general plan for the expansion of the productive capacity had been talked over by the directors and agreed upon. The erection of a smelter was considered. The plan calls for a reduction in the selling price of the cars and calls for less profitable business. Ford’s ambition was to employ more men. Ford made up his mind that no dividends other than the regular dividends should be paid.
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