Henry Ford – The Intelligent Collector Magazine

Memo to Elizabeth and Bernie: You’ve been scooped by roughly 130 years

A collection of First Lady Frances Folsom Cleveland’s family and personally owned artifacts went to auction in September 2020.

By Jim O’Neal

March 4, 1893, marked the second time Stephen Grover Cleveland was inaugurated as president of the United States. He was greeted at the Executive Mansion by President Benjamin Harrison, the Republican he had defeated three months earlier. It was a mildly awkward meeting, the only time in history the transfer of presidential power involved outgoing and incoming presidents who had run against each other twice (each one winning once and losing once).

Benjamin “Little Ben” Harrison (he was 5-feet-6) was notoriously cold and aloof and President-elect Cleveland was stubbornly independent, with an aura of self-righteousness. Historian Henry Adams observed that “one of them had no friends and the other only enemies.” Robert G. Ingersoll, nicknamed “The Great Agnostic,” went a step further: “Each side would have been glad to defeat the other, if it could do so without electing its own candidate.” Strangely, I felt the same way in both 2016 and 2020.

Inauguration Day was bitterly cold and many recalled that Harrison’s grandfather, William Henry Harrison (the ninth president) had died 31 days after his inauguration. Following a very long acceptance speech, he caught pneumonia and it was fatal. He was 68 and at the time the oldest person to assume the presidency, a distinction he held until 1981 when Ronald Reagan was sworn in at age 69.

In 1893, President-elect Cleveland’s vice president, Adlai E. Stevenson, took the oath of office first. Sixty years later, his grandson (and namesake) would make two futile runs for the presidency (1952 and 1956). He had the bad luck of having one of America’s greatest heroes, General Dwight D. Eisenhower, as an opponent. War heroes are difficult to defeat and, in this case, it’s generally acknowledged that Ike could have beaten anyone and run on either party’s ticket. Outgoing President Harry Truman had even tried to broker such a deal in 1948 when he offered to step down to vice president.

Sadly, the 1892 election was vexed by Harrison’s wife contracting tuberculosis and dying two weeks before the election of Cleveland. But, after the inauguration and traditional transition, the ex-president seemed more than ready to return to his home in Indianapolis. Surprisingly, four years later, some of Harrison’s friends tried to convince him to seek the presidency again. He declined, but did agree to travel extensively making speeches in support of William McKinley’s successful candidacy. Little Ben died in February 1901 from pneumonia and a short six months later, President McKinley would become the third president to be assassinated.

But today belonged to President Cleveland and his wife Frances. They had been married during the first term in office on June 2, 1886, in the Blue Room at the White House. Cleveland was 49 years old at the time, Frances a mere 21. Frances Folsom Cleveland was the youngest First Lady in history and became very popular, primarily due to her youthful personality. They would have five children with the first one named Ruth. No, she was definitely not associated with Baby Ruth. That candy bar was renamed 30 years after her birth and 17 years after her death. After a warm welcome at the White House, President Cleveland’s troubles started almost right away.

In May, barely two months back in the White House, Cleveland discovered a growth on his palate, the soft tissue in the roof of the mouth that separates the oral and nasal cavities. It turned out to be a malignant tumor that required surgical removal. Fearful of panic in the already shaky financial markets, a clever plan was devised to perform a secret operation on a yacht in the East River. The surgery was successful and the president recuperated while sailing innocently on Long Island. The press was surprisingly gullible and accepted a story about two teeth that needed removal.

However, on dry land, economic forces were forming a dark storm that would usher in the worst financial crisis in the nation’s history. The pending depression would become known as the Panic of ’93. The 19th century had weathered many boom-bust economic cycles, but this powerful downturn would persist until the 20th century. Even as the president was organizing his cabinet, banks, factories and farms were tumbling into bankruptcy. Virtually everywhere, workers were struggling with layoffs and payouts as companies were swept away.

In his inaugural speech, Cleveland had warned about the dangers of business monopolies and inflation, however, his response to the economic chaos was austere in the extreme. He did not believe government should intervene for fear of eroding self-reliance and over-reliance on government. This was a common belief and it would take another generation for a new consensus to shape American politics. To fully grasp the significant schism that was silently evolving, one only has to read Thomas Sherman’s 1889 essay titled “The Owners of the United States.”

Using census data and promises of anonymity, he developed the thesis that 1/30th of the people in England owned 2/3 of the wealth. In America, he listed 70 individuals worth $2.7 billion and asserted no other country had such a concentration of millionaires. By contrast, 80% of Americans earned less than $500 annually, and 50,000 families owned half of the nation’s wealth. Further, wealthy men and corporations escaped taxation, with the burden falling “exclusively upon the working class.”

Memo to Elizabeth and Bernie: You’ve been scooped by roughly 130 years. Somehow, we managed to have a decent 20th century, save the world several times and develop a technological cornucopia for 330 million people vs. any other time in the history of the world. Go Bezos, Jobs/Allen, the Google guys, Walmart, Henry Ford, FDR and my man T.R.!

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chair and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

Here’s why Dwight D. Eisenhower admired Germany’s autobahn

A baseball signed by President Dwight D. Eisenhower circa 1960 sold for $9,588 at a December 2017 Heritage auction.

By Jim O’Neal

Tempus fugit!

When I think about President Dwight D. Eisenhower, my mind associates him with America in the 1950s. Images of sunny Southern California suburbs, rock music, languid days of surfing, backyard BBQs and my first car (1953), a 1932 Ford Victoria 4 banger. Long gone are any memories of ducking under a desk, the potential darkness of a nuclear war or concerns that communists were lurking in hidden corners.

It was a time of social confidence and military men taking advantage of the G.I. Bill by returning to college or starting families in the tract homes that were proliferating. Good factory jobs were plentiful, with auto-assembly plants gradually replacing shuttered aircraft shells. My posse knew the year and model of every Ford, Chevrolet, Buick or Oldsmobile that went whizzing by. Soon, I was a senior working in a General Motors plant assembling Buicks, Pontiacs and Oldsmobiles from 3 to 11 in South Gate. Shoddy quality, but the emphasis was on quantity and the pay was staggering: $2.55 an hour with daily overtime + Saturday. My cup runneth over.

In reality, Dwight David Eisenhower was a 19^th-century man. Born in 1890 in Dennison, Texas, he moved a year later to Abilene, Kan., and a small, two-story frame house. He recalled the 1896 election when William McKinley defeated William Jennings Bryan, the golden-throated “Boy Orator of the Prairie.” This was the first of Bryan’s three defeats; he joined Henry Clay as the only losing candidates who received electoral votes in three separate presidential elections.

A good athlete, “Little Ike” yearned to attend the University of Michigan – the home of Coach Fielding Yost and his “point a minute” Wolverine football teams. He was encouraged to take the service academy exam and he failed to qualify for the vaunted Naval Academy. However, he squeaked into West Point and then married Mamie Geneva Doud in 1916. Although eager to join the war in Europe, he ended up in San Antonio training in the 57th Army Infantry, followed by a stint in Gettysburg, Pa., with a crack tank crew. A military legend was gradually taking shape.

When the U.S. Army returned from Europe at the end of WWI, they sponsored the 1919 Transcontinental Motor Convoy. Ike joined 300 other soldiers to drive a group of 81 motorized vehicles from Gettysburg to San Francisco. The convoy wound along the Lincoln Highway for 3,251 miles. Because of the rudimentary, haphazard web of paved roads, it took an almost unbelievable 62 days. Lieutenant Eisenhower would long remember the impassable roads and tortoise-like pace, never realizing he would later have an opportunity to rectify the issue.

For perspective, at the end of the 19th century, there had only been one motorized vehicle for every 18,000 people (today, we have about 300 million cars and trucks, or almost one per person). Also, the “roads” in 1900 were not asphalt or concrete; instead, they were too often packed dirt or mud, depending on the time of year. Even worse, outside cities and towns, there were few gas stations; rest stops would be a convenience in the future. In 1910, The Boston Eagle newspaper observed that automobiling was not an easy way to get anywhere … “it is an adventure … the last call of the wild.”

With Henry Ford’s help, that was about to change … dramatically. When Ford introduced the 1908 Model T, Americans finally had a dependable, affordable car. Over the next 20 years, 15 million “Tin Lizzies” rolled off the Ford assembly lines. Along with all the other car manufacturers, automobiles evolved from a luxury to a necessity. With this transition to a “nation of drivers” came the inevitable questions of who would pay for indirect costs involved. The powerful automobile industry ultimately prevailed, with governments at all levels agreeing to pay for streets, signage, highways, bridges and all the other things we now take for granted. Taxing gas was an easy target, but there were major infrastructure projects that are still difficult to fund.

Fortunately, during WWII, Eisenhower was the Supreme Commander of U.S. troops in Europe. He witnessed firsthand the genius of the German autobahn, a highly sophisticated and strategic network of highways. The Germans had used it to launch its Blitzkrieg attacks; waves of lightning fast, motorized armored infantry that quickly subdued most of Europe in a matter of days or weeks. When he became president in 1953, Ike remembered the fiasco of the transcontinental convoy and the devastation unleashed courtesy of the autobahn.

Voila! In 1954, he announced a plan to build a transcontinental interstate highway system for the United States. Naturally, this was not a new idea; Congress had passed the Federal-Aid Highway Act in 1944, which authorized the construction of a 40,000-mile National System of Interstate Highways. The only thing lacking was the funding to pay for it. What President Eisenhower did was cleverly bundle the “critical need for speed” in case of atomic attack on our key cities (a national defense imperative) with a terrific rationale for a highway system that would benefit common citizens. Fresh produce from Florida to New England overnight or year-round fresh fruit and vegetables from California to anywhere.

On June 29, 1956, President Eisenhower signed the bill creating a National System of Interstate and Defense Highways with a major economic stimulus via construction jobs followed by booms in numerous industries: trucking, petroleum, automotive, motels, restaurants. The list was endless. The nation’s interstate program stands as the largest public work project in world history. This time, there was funding and vastly improved state and local highways. The complaints would come later as planners used eminent domain to seize lands for roads. Thousands of farms were bifurcated by four-lane highways and scores of cities leveled or divided, with poor and minority communities destroyed.

Just another chapter in our history, but without the EPA or federal court injunctions.

Astonishing technologies will continue upending our world

Thomas Hart Benton’s ink, pencil and watercolor on paper titled “Poking Stick in Cotton Gin,” circa 1930, sold for $12,500 at a May 2018 Heritage auction.

By Jim O’Neal

A Luddite is an obscure term loosely used to describe people who dislike new technology. After a superficial self-assessment, I’ve concluded I’m probably a modern-day Luddite at heart. The evidence is abundant since I’ve scrupulously avoided Facebook, have zero interest in posting pictures or video on Instagram and consider Twitter an enormous thief of time. Social media is not a place I’m interested in wasting my remaining time on.

That said, I don’t know how to account for my iPhone 11, iPad Pro or the 75-inch Sony 4K LED that dominates our den (or the six other cable boxes on three floors). With my iPad, I rarely use my desktop computer except to print documents. I abhor texting and still have a Netflix account that sends me DVDs by snail mail. After spending the past 60 years questing for ever-larger TV screens, the idea of squinting at a cellphone or watch-size TV program is mildly abhorrent. Even more annoying is the spate of robo-calls offering new Medicare options. I routinely turn off my devices for hours (ah … peace).

The original Luddites were British weavers and textile workers who objected to the increased use of mechanized looms and knitting frames. It is popularly claimed that they named themselves after Ned Ludd, a young apprentice who was rumored to have personally wrecked a textile apparatus (“in a fit of rage”) in 1779. There is no evidence Ludd actually existed, but he eventually became the mythical leader of the movement. They even issued manifestos and threatening letters under his name.

The first major instance of malicious machine breaking took place in 1811 in Nottingham. The British government moved to quash the uprisings by making machine breaking punishable by death. The unrest finally reached its peak in April 1812 when a few Luddites were gunned down during an attack on a mill near Huddersfield. Finally, the army deployed several thousand troops and dozens of Luddites were either hanged or transported to Australia.

In the intervening years, astonishing new technologies have increased productivity, lowered costs and created hundreds of millions of new jobs. A few of the more obvious include:

The cotton en(gin)e that turned a marginally profitable farm crop into a bonanza by minimizing labor by over 90 percent while increasing workers from 700,000 to 3.2 million. Historians point out the South gained a 75 percent share of world demand, but also doomed them to remain an agricultural economy (with slaves). Others contend this single invention led directly to the Civil War.
Cyrus McCormick’s mechanical reaper helped convert millions of acres to food production and developed Midwest family farms with “wheat fields shining from sea to sea.” Presumably, American Indians, buffalo, dense forests and pristine rivers and lakes were unimpressed.
The Wright Brothers gave man the gifts of flight, aircraft factory jobs, cargo shipments and holiday travel for the masses. It also enabled two world wars and the ability to destroy entire cities.
Commercialization of the Bessemer process to supply the enormous steel demand for railroad tracks that crisscrossed the nation and enabled high-rise buildings with Otis elevators and office workers too numerous to count.
Henry Ford’s assembly line made automobiles affordable … in turn, creating more workers to stay up with demand and higher wages to buy the product. This was followed by oil-gas, tires, paved roads, motels and Uber/Lyft). Also smog, toll roads and clogged freeways in every city.
The Internet is obsoleting retail stores and shopping malls, while enabling Apple, Google, Amazon and global outsourcing that has raised 500 million people out poverty.

We are now challenged to reconcile population growth with climate change and plastic oceans; and robots and artificial intelligence with displaced workers and a K-12 Education System that is failing so many currently. Joseph Schumpeter’s 1942 theory of Creative Destruction is still valid.

The London Mensa Organization just accepted a 3 year old with an IQ of 142+. There will also be more Elon Musks and they will figure it out. One suggestion is to simply operationalize what’s known as “5G-based” nuclear power plants, which are 100 percent green (it will shut itself down if needed) and run on spent fuel stockpiles. Imagine unlimited clean power that will desalinate sea water and gobble up current waste. Bill Gates is an investor in the technology.

Just a casual idea as we watch the Washington Circus and the people we rely on for leadership.

Was Henry Ford right? Is history bunk?

A first edition of John F. Kennedy’s *Profiles in Courage*, inscribed by the author, realized $7,500 at a September 2018 Heritage auction.

By Jim O’Neal

Among the towering figures of the Civil War, none is more enigmatic than General William Tecumseh Sherman.

Widely denounced as ruthlessly destructive for his infamous March to the Sea across Georgia, Sherman was a brilliant commander who helped bring the bloody war to a decisive end. His legacy of “total war” against anyone and everyone (even unarmed civilians) has haunted many Americans and military leaders. It has no parallel in U.S. military history in terms of ferocity or effectiveness.

Sherman (1820-1891) was massively paranoid due to a catastrophic event when he was 9 years old. His father, apparently very successful, suddenly went into bankruptcy and then died … leaving the family penniless and in chaos. His decision to do whatever necessary to restore order and harmony to the Union was rooted in his compulsion for normalcy.

Psychobabble aside, I tend to agree with the following: “The historians of the future will note his shortcomings. Not captiously, but in the kind spirit of impartial justice he will set them down to draw the perfect balance of his character. Let him deduct them from the qualities that mark his distinction, and we shall still see William Tecumseh Sherman looming up a superb and colossal figure in the generation in which he lived,” said General F.C. Winkler, addressing the Army of the Cumberland in the year Sherman died.

Edwin McMasters Stanton (1814-69) became Attorney General for President James Buchanan the day Major Robert Anderson moved his federal troops to Fort Sumter, S.C. This action was viewed as a quasi act-of-war and South Carolina issued an “ordinance of secession.” Later, Stanton would become Abraham Lincoln’s War Secretary and General-in-Chief, replacing General George McClellan due to “inaction.” After Lincoln’s assassination, he became the temporary de facto head of the government as Andrew Johnson was paralyzed in a state of inaction and Congress was not in session.

A man of action, Stanton mobilized the hunt for John Wilkes Booth and all suspected conspirators. All but three were hanged after a swift military tribunal found them guilty. The Stanton role was played by Kevin Kline in the 2010 movie The Conspirator, directed by Robert Redford. Robin Wright played Mary Surratt, the first woman executed by the United States. After the trial, Stanton had a contentious role in President Johnson’s Cabinet, despite their intense mutual dislike.

Johnson (1808-1875) was the only member of the U.S. Senate from a seceding state (Tennessee) to remain loyal to the Union. Hoping to make an example to undermine the Confederacy, Lincoln designated him a brigadier general of volunteers and appointed him military governor of the state with instructions to form a government and return to the Union. The best Johnson could do was declare himself the leading Unionist of the South. Lincoln was expecting a difficult re-election in 1864 and Johnson was selected as vice president in the hope he could attract Southern Democratic votes. They were nominated in June and elected in November. Johnson botched his inauguration by getting drunk; his oath of office was a rambling, incoherent speech. It was so humiliating that he left town for a week. Upon his discreet return, accounts described him as the “invisible man.” Six short weeks later, he would be president of the United States.

The lives of these three men would become forever intertwined in a fascinating series of events.

On April 9, 1865, at the Appomattox Court House, Robert E. Lee (1807-1870) surrendered the Army of Northern Virginia to General Ulysses S. Grant (1822-1885), who accepted the surrender under terms that were considered generous. President Lincoln accepted them since he was still apprehensive about the rest of the Southern troops.

Three Confederate generals – Joe Johnston, Edmund Kirby Smith and Nathan Bedford Forrest – were still on the loose. Lincoln and Grant feared they would form guerilla units. The war could then theoretically last several more years.

However, after Lincoln’s assassination on April 15, Johnston followed Lee’s action and surrendered his troops to General Sherman. Their first meeting was similar to Grant/Lee, except without aides and note-takers (and the eyes of history). Sherman offered to accept Johnston’s surrender on the same terms as those give to Lee. Surprisingly, Johnston demurred and countered with a stunning proposal to make it a “universal surrender” – thereby surrendering all Southern forces to the Rio Grande. In short, it would end the war once and for all.

When Sherman agreed and sent it forward, President Johnson and the entire Cabinet were furious. They suspected Sherman of a conspiracy to take over the entire country or, at a minimum, position himself for the 1868 presidential election. It took Grant 10 days of diplomacy to settle the issue, but exposed a deep rift between President Johnson and Secretary Stanton.

In the end, when Johnson tried to fire Stanton, the Republican Congress impeached the president for “high crimes and misdemeanors.” He was famously acquitted by one vote (twice) by Senator Edmund G. Ross of Kansas. Interestingly, Ross was among the eight men profiled in the 1957 Pulitzer Prize-winning book Profiles in Courage “by” John F. Kennedy.

Critics have claimed Ross was bribed for his vote to acquit … and that Kennedy’s speechwriter and close adviser Ted Sorensen had ghostwritten the JFK book. Even Eleanor Roosevelt weighed in, famously quipping, “I wish that Kennedy had a little less profile and more courage.”

Perhaps Henry Ford was right. History is bunk!

We owe Thomas Edison, Henry Ford a debt of gratitude

This uncanceled Edison Phonograph Works stock certificate is dated 1888, the very year the company was founded, and was issued to “Thomas A. Edison.” It was sold at an April 2012 Heritage auction.

By Jim O’Neal

On Monday, Oct. 21, 1929, the Edison Institute was dedicated in Dearborn, Mich. It was to commemorate the 50th anniversary of the first incandescent light bulb that Thomas Alva Edison had invented and the strong friendship between Henry Ford and Edison. Although it was a relatively small group that joined in, it was loaded with luminaries: John D. Rockefeller, Orville Wright, Will Rogers, Marie Curie and, of course, Henry Ford and Edison, who was 82 years old.

President Herbert Hoover’s speech stated: “Every American owes a debt to him. It is not alone a debt for great benefactions he has brought to mankind, but also a debt for the honor he has brought to our country. His life gives confidence … our institutions hold open the door of opportunity … to all that would enter.” The ceremony was broadcast on radio and listeners were asked to keep all their electric lights off until a switch was flipped at the event.

One week later, the stock market was in a state of chaos as a series of events led to the Great Depression.

Ford (1863-1947) had grown up on a rural farm in Michigan and, like virtually every other American, was captivated by the remarkable inventions Edison was cranking out. Eschewing farm work after his mother died, he inevitably went to work at his hero’s company – Edison Illuminating Company – as an engineer.

Ford rose through the ranks to Chief Engineer, which allowed him more personal time to work on developing his version of an automobile. In 1896, at age 33, Ford developed his first experimental car, called the Ford Quadricycle. Edison had been working on an electric car and when the two men finally met, Edison reputedly slammed his fist on a table and exclaimed, “Young man, you have it!” He encouraged Ford to continue his development and this started a longtime friendship between the two geniuses.

Ford eventually developed his Model T, a series of improvements (not inventions) to the combustion engine, and a continuous assembly line. Introduced in 1908, the Model T would be extremely successful, eventually becoming one of the top-selling cars of all time. With the steering wheel on the left side, it is estimated that over 75 percent of everyone who learned to drive did it in some version of the Model T.

Along the way, Ford pioneered the eight-hour workday, reduced the cost from $850 and raised worker wages to $5 a day so they could afford to buy a car. He became a rich and successful businessman with a passion for collecting historic objects. President Wilson convinced him to run for the Senate since he was for peace and a Democrat, but he lost. After his death in 1947, the Edison Institute was renamed the Henry Ford Museum.

Today, the Henry Ford Museum of American Innovation includes Greenfield Village, a tour of the massive Ford Rouge factory, and even a dedicated IMAX theater. The museum has an astonishing collection of Americana, with over 200 cars, JFK’s limousine from his trip to Dallas, the bus Rosa Parks made famous, Lincoln’s rocking chair from Ford’s Theater, Edison’s laboratory, the Wright Brothers’ bicycle machine shop, steam engines and other historic items depicting the history of America.

The Henry Ford Museum is the largest indoor/outdoor museum in the United States, with over 1.7 million visitors a year. Somewhere in this vast collection of truly famous objects is a small test tube with Edison’s last dying breath. Ford convinced Edison’s son to hold a mask over Edison as he was dying and capture/cork the “last breath.” Whether it does or not is irrelevant. The fact is that there are a number of similar test tubes that were filled in the room when Edison actually did die. The Ford example represents the genuine friendship between these two remarkable men and the wheelchair races on their adjoining estates in Florida, the hunting trips that included Harvey Firestone and President Harding, and their quest for knowledge that makes our lifestyle so much better even today.

They were both deeply flawed men who have slowly melted into history, but President Hoover was right. We do owe them a debt a gratitude and can overlook some or most of their egregious sins as the famous door of opportunity is still wide open, as we see every day.

Early Automotive Pioneers Among America’s Top Innovators

A Lincoln Motor Company stock certificate, issued in October 1918 and signed by Henry M. Leland, sold for $500 at an October 2013 auction.

By Jim O’Neal

Doctors called it a “chauffeur’s fracture,” the radial styloid or wrist fracture that occurred when a driver tried to start a horseless carriage by turning the crank at the front of the car. If the engine backfired, the crank would spin backward, often causing broken bones. Those early automobiles motoring down the streets of American cities were considered engineering marvels.

But what a challenge to start!

The two requirements were a blacksmith’s arm and a perfect sense of timing. The driver had to adjust the spark and the throttle before jumping out to turn the crank mounted on the car’s outside front grill. Once the spark caught and the motor fired, the driver dashed back to the control to adjust the spark and throttle before the engine could die. Oh, and if the car started, but was in gear, it could lurch forward and run over the cranker!

Sound farfetched?

In 1908, tragedy struck when Byron Carter (1863-1908) – inventor of the Cartercar – died after trying to start a stalled car. The crank hit him in the jaw. Complications with gangrene set in and he died of pneumonia. It was a fluke involving a stalled motorist he was trying to help. The driver forgot to retard the spark. Whamo!

The car involved was a new Cadillac, one of the premier luxury brands, and Carter was good friends with the man who ran Cadillac, Henry Leland (who also owned Lincoln). When Leland found out his friend had been killed, he vowed: “The Cadillac car will kill no more men if we can possibly help it!” Cadillac engineers finally succeeded in manufacturing an electric self-starter, but were never able to scale it for commercial use.

Enter Charles Franklin Kettering (1876-1958), a remarkable man (in the same league as Thomas Edison) whose versatile skills included engineering and savvy business management. He was a prolific inventor with 186 notable patents. One of them was a self-starter small enough to fit under the hood of a car, running off a small storage battery. A New York inventor (Clyde J. Coleman) had applied for a patent in 1899 for an electric self-starter, but it was only a theoretical solution and never marketed.

After graduating from Ohio State College of Engineering, Kettering went to work for the invention staff at National Cash Register (NCR) company. He invented a high-torque electric motor to drive a cash register, allowing a salesperson to ring up a sale without turning a hand-crank twice each time. After five years at NCR, he set up his own laboratory in Dayton, Ohio. Working with a group of engineers, mechanics and electricians, he developed the new ignition system for the Cadillac Automobile Company.

Leland sold Cadillac to General Motors in 1909 for $4.5 million and there is no record of any Cadillac ever killing another person, at least from turning a crank to start the engine! Since Cadillac had been formed from remnants of the Henry Ford Company (the second of two failed attempts by Ford), it was renamed for Antoine Laumet de La Mothe, sieur de Cadillac (the founder of Detroit 200 years earlier).

Later, Leland would sell Lincoln, his other marque luxury brand, to Ford Motor Company for a healthy $10 million, while Kettering and his crew formed Dayton Engineering Laboratories Co., which became Delco, still a famous name in electronic automobile parts. Kettering went on to have a long, sterling career and was featured on the cover of Time on Jan. 9, 1933 … the week after president-elect Franklin Delano Roosevelt was named the magazine’s Man of the Year (Jan. 2).

My only quibble is the work Kettering did with Thomas Midgley Jr. in developing Ethyl gasoline, which eliminated engine knock, but loaded the air we breathe with lead (a deadly neurotoxin) for the next 50 years. And he developed Freon … a much safer refrigerant, but which released CFCs, which will be destroying our atmospheric ozone for the next 100-200 years.

I don’t recall ever personally turning an engine crank. My cars went from ignition keys to keyless and I plan to skip the driverless models and wait for a Jet-Cab … unless Jeff Bezos can provide an Uber-style version using one of his drones.

Things change.

Bikes Symbolized Progress for a Nation Ready for Growth

A rare campaign button shows presidential candidate William McKinley riding a bicycle at the height of the bike boom of the 1890s.

By Jim O’Neal

As the bicycle became more popular in the latter part of the 1800s, it was inevitable that millions of new enthusiasts would soon be demanding better roads to accommodate this object of pleasure, so symbolic of progress. It was hailed as a democratizing force for the masses and neatly bridged the gap between the horse and the automobile, which was still a work in progress.

The popularity of this silent, steel steed had exploded with the advent of the “safety bicycle” (1885), which dramatically reduced the hazards of the giant “high wheelers.” The invention of the pneumatic tire in 1889 greatly enhanced the comfort of riding and further expanded the universe of users. However, this explosion in activity also increased the level of animosity as cities tried to cope by restricting hours of use, setting speed limits and passing ordinances that curtailed access to streets.

There were protest demonstrations in all major cities, but it came to a head in 1896 in San Francisco. The city’s old dirt roads were crisscrossed with streetcar tracks, cable slots and abandoned street rail franchises. Designed for a population of 40,000, the nation’s third-wealthiest city was now a metropolis of 350,000 and growing. On July 25, 1896, advocates of good streets and organized cyclists paraded in downtown with 100,000 spectators cheering them on.

The “Bicycle Wars” were soon a relic of the past as attention shifted to a product that was destined to change the United States more than anything in its history: Henry Ford’s Model T. Production by the Ford Motor Company began in August 1908 and the new cars came rolling out of the factory the next month. It was an immediate success since it solved three chronic problems: automobiles were scarce, prohibitively expensive and consistently unreliable.

Voila, the Model T was easy to maintain, highly reliable and priced to fit the budgets of the vast number of Americans with only modest incomes. It didn’t start the Automobile Age, but it did start in the hearts and souls of millions of people eager to join in the excitement that accompanied this new innovation. It accelerated the advent of the automobile directly into American society by at least a decade or more.

By 1918, 50 percent of the cars in the United States were Model Ts.

There were other cars pouring into the market, but Model Ts, arriving by the hundreds of thousands, gave a sharp impetus to the support structure – roads, parking lots, traffic signals, service stations – that made all cars more desirable and inexorably changed our daily lives. Automotive writer John Keats summed it up well in The Insolent Chariots: The automobile changed our dress, our manners, social customs, vacation habits, the shapes of our cities, consumer purchasing patterns and common tasks.

By the 1920s, one in eight American workers was employed in a related automobile industry, be it petroleum refining, rubber making or steel manufacturing. The availability of jobs helped create the beginning of a permanent middle class and, thanks to the Ford Motor Company, most of these laborers made a decent living wage on a modern five-day, 40-hour work week.

Although 8.1 million passenger cars were registered by the 1920s, paved streets were more often the exception than the rule. The dirt roads connecting towns were generally rutted, dusty and often impassable. However, spurred by the rampant popularity of the Model T, road construction quickly became one of the principal activities of government and expenditures zoomed to No. 2 behind education. Highway construction gave birth to other necessities: the first drive-in restaurant in Dallas 1921 (Kirby’s Pig Stand), first “mo-tel” in San Luis Obispo in 1925, and the first public garage in Detroit in 1929.

The surrounding landscape changed with the mushrooming of gas stations from coast to coast, replacing the cumbersome practice of buying gas by the bucket from hardware stores or street vendors. Enclosed curbside pumps became commonplace as did hundreds of brands, including Texaco, Sinclair and Gulf. The intense competition inspired dealers to distinguish with identifiable stations and absurd buildings. Then, in the 1920s, the “City Beautiful” movement resulted in gas stations looking like ancient Greek temples, log cabins or regional Colonial New England and California Spanish mission style fuel stops.

What a glorious time to be an American and be able to drive anywhere you pleased and see anything you wished. This really is a remarkable place to live and to enjoy the bountiful freedoms we sometimes take for granted.

How We Record History Has Evolved Over the Ages

A 1935 copy of *The History of Herodotus of Halicarnassus* (Nonesuch Press) sold for $1,125 at an October 2013 auction.

By Jim O’Neal

We often fail to remember that history (itself) has a history. From the earliest times, all societies told stories from their past, usually imaginative tales involving the acts of heroes or various gods. Later, civilizations kept records inscribed on clay tablets or the walls of caves. However, ancient societies made no attempt at verification of records, and often failed to differentiate between reality and mythical events and legends.

This changed in the 5th century B.C. when historians like Herodotus and Thucydides explored the past by the interpretation of evidence, despite still including a mixture of myth (“history” means “inquiry” in Greek). Still, Thucydides’ account of the Peloponnesian War satisfies most criteria of modern historical study. It was based on interviews with eyewitnesses and attributed actual events to individuals rather than the intervention of gods.

Thus, Thucydides managed to create the most durable form of history: the detailed narrative of war, political conflict, diplomacy and decision-making. Then, the subsequent rise of Rome to dominance of the Mediterranean encouraged other historians like Polybius (Hellenic) and Livy (Roman) to develop narratives to capture a “big picture” that made sense of events on a longer time frame. Although restricted to just the Roman world, it was the beginning of a universal history to describe progress from origin to present, with a goal of giving the past a purpose.

In addition to making sense of events through narratives, there was a tradition growing to examine the behavior of heroes and villains for future moral lessons. We still attempt this today with a steady stream of studies of Lincoln, Churchill and Gandhi, as well as Stalin, Hitler and Mao.

But there was a big hiccup with the rise of Christianity in the late Roman Empire era, which fundamentally changed the concept of history in Europe. Historical events started to be viewed as “divine providence” or the working of God’s will. Skeptical inquiry was usually neglected and miracles routinely accepted without question. Thankfully, the Muslim world was more sophisticated in medieval times and they rejected accounts of events that could not be verified.

However, neither Christians nor Muslims produced anything close to the chronicle of Chinese history published under the Song Dynasty in 1085. It recorded history spanning almost 1,400 years and filled 294 volumes. (I have no idea how accurate it is!)

By the 20th century, the subject matter of history – which had always focused on kings, queens, prime ministers, presidents and generals – increasingly expanded to embrace common people, whose role in historical events became more accessible. But most world history was written as the story of the triumph of Western civilization, until the second half when the notion of a single grand narrative simply collapsed. Instead, the post-colonial, modern world demanded the study of blacks and women’s histories, in addition to Asians, Africans and American Indians.

Now we are in another new place where it is increasingly difficult to know where to find reliable accounts of real events and a flood of “fake news” is competing for widespread acceptance. Maybe Henry Ford was right after all when he declared that “History is bunk!”

Personally, I don’t mind and still enjoy frequent trips to the past … regardless of factual flaws.

Immigrants Have Made Traditionalists Uneasy, But Controversy Will Soon Pass

A Roy Lichtenstein screen-print, *I Love Liberty*, 1982, sold for $27,500 at an October 2014 Heritage auction.

By Jim O’Neal

Immigration is back in the news and it’s easy to forget this is not the first time. Out of the enormous industrial growth in the middle of the 19th century came an almost insatiable appetite for unskilled labor. The result was a tremendous wave of immigration, landing 26 million here between 1870 and 1920. They came from all over the world.

However, this was a new kind of immigrant, fashioned for an industrial society, and it made traditionalists uneasy, just as Thomas Jefferson had once been uncertain about the mixing of the American population. Prominent economists voiced concerns about people wholly incompetent as pioneers mixing with independent proprietors and threatening the democratic theories of the founders.

In 1870, over half of Americans toiled on the farm (close to Jefferson’s vision of yeoman farmers) and yet in the first decade of the 20th century, two-thirds of workers were in factories – semi-intelligent work described by Henry Ford as a job “the most stupid man could learn in two days.” The old immigrants of home-seekers had become new immigrants of job-seekers. A nativist movement was inspired to protect America for people of Anglo-Saxon stock.

This was not the first expression of this sentiment. In the 1850s, a secret society in New York City, the Order of the Star Spangled Banner, morphed into the Know-Nothing Party, which inveighed against the arrival of Irish and German Catholics and with them “popish alliances.” Although the Know-Nothings disappeared after 1860, the tendency toward defining Americans according to ethnicity came roaring back after the Civil War.

Today, we hold up the Statue of Liberty as our beacon to the world, but it was originally intended to be a symbolic gift from sculptor Frédéric Auguste Bartholdi over admiration for American liberties, not a statement about immigration. It was only after Emma Lazarus’ give-me-your-tired sonnet was added to the statue 17 years later that the image of America as an asylum for the oppressed and poor of the world would emerge.

And even this was followed by the Espionage Act of 1917 and Sedition Act of 1918, which allowed the government to prosecute pacifists, socialists and left-wing organizations, all of which had sizable immigrant followers. Then the Johnson-Reed Act of 1924 imposed strict quotas to preserve America as an Anglo-Saxon nation. For the next 40 years, immigration slowed to a trickle and in the 1930s there were years when more people left America than came to live here.

It is a complicated story, but we have thrived as a nation due to the many, many contributions of immigrants. I predict this controversy too shall pass … as it has every time in the past.

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chairman and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

Military Officers Swooped In and Saved Ford Motor Company

Henry Ford, left, often took trips with Thomas Edison and Harvey Firestone. This photograph, circa 1924, signed by Ford, sold for $1,195 at a June 2010 auction.

By Jim O’Neal

In 1968, General Curtis LeMay was the vice presidential running mate with American Independent Party candidate George Wallace. This unlikely duo snagged 46 electoral votes and five states with almost 10 million popular votes. This was the last time a third-party candidate won a state.

During World War II, LeMay had implemented a controversial bombing campaign in the Pacific. It was during this time that future Ford Motor Company President Robert McNamara was busy analyzing U.S. bomber efficiency and effectiveness, especially the B-29 command of General LeMay, as part of a team headed by Colonel Tex Thornton.

LeMay and McNamara would cross paths again during the Bay of Pigs fiasco and the war in Vietnam.

During the late war years of the 1940s, the Ford Motor Company was struggling to remain viable. President Edsel Ford, son of founder Henry, died of stomach cancer in 1943 and the board made the mistake of bringing back an ailing Henry Ford in an act of desperation. The company was losing $9-10 million a month and the Roosevelt administration had considered nationalization to keep vital war materials flowing.

In 1945, Edsel’s son Henry Ford II was discharged from the Navy and the board quickly named him president of Ford. However, the company he inherited was still a shell of a corporation badly in need of modernizing its production, establishing financial controls and building an organization.

In a stroke of genius, Tex Thornton decided to market his staff of nine wartime officers to corporations that were reconverting from military to civil production. After all, his colleagues were part of a management science operation within the Army Air Force and, without a doubt, were the most talented managerial team of the century … young men who had gained 25 years of experience in just four years.

Thornton sent a cable to young (28) Henry Ford II and after an impressive interview, Ford hired the group with salaries ranging from $10,000 to $16,000. Bob McNamara was the second-highest paid and he took over finance at Ford. This is the group that became the famous “Whiz Kids” (although internally they were called “Quiz Kids” since they were always asking “Why?”). The Ford Motor Company would never be the same, fortunately, and slowly started catching up with rival General Motors.

One amusing anecdote involves The Edsel Show, a live one-hour television special designed to promote Ford’s cars. It aired on Oct. 13, 1957, and featured Bing Crosby, Louis Armstrong, Rosemary Clooney and Frank Sinatra. The show drew great reviews.

Clooney received one of the new Edsels as a gift and after the show, she and Henry Ford were walking together when she went over to get in. The door handle came off in her hand, so she turned and said, “Henry, about your car…”

Quality control was still en route to Dearborn, Mich., but arrived after the Edsel’s funeral.

More about Robert Strange McNamara, who became Secretary of Defense in 1961, in future posts.