The Bolshevik Menace
EARLY in the new year of 1916, Ford decided that he wanted to expand the Highland Park factory to twice its size and also build a blast furnace and a foundry at a separate site on the River Rouge. During the time of construction, he suspended all stock dividend disbursements; he took $58 million of accumulated profits and put it back into the business while simultaneously, as a marketing ploy, reducing the price of the Model T by $66 per car.
These bold strokes caused great consternation to two major Ford shareholders in particular, John and Horace Dodge, rival manufacturers who since 1913 had been taking advantage of Ford's cash flow to finance their own modestly priced sedan. The Dodge Brothers filed suit against Ford to restore distribution of dividends and also obtained a restraining order "to prohibit the use of company funds for plant expansion." Judge Henry Butzel of the state