This one goes out to the automotive nerds today because I’m exploring weird car history. Back in 1919, Ford decided that its employees should get raises and better benefits. However, Dodge thought that was ridiculous and sued Ford to put a stop to that nonsense. 

Dodge v. Ford Motor Company over employee raises 

Henry Ford, the founder of Ford Motor Company wanted to make things better for his employees. He is known for increasing wages, reducing the length of shifts, and creating the third shift to provide more jobs. 

But in 1919 when Ford wanted to reduce the price of trucks and increase employee wages, Dodge felt the need to step in. 

Henry Ford wanted to employ more men and increase the benefits of the industrial system to allow them to build up their lives and homes. He believed this would benefit his business in the long run. 

John Francis Dodge and Horace Elgin Dodge were among the shareholders who disagreed with this decision. At the time, Dodge owned 10% of the company, making it the largest shareholder behind Ford. 

They sued Ford and argued that the profits to the stockholders should be the primary concern for the company directors.

According to Law.Justia, the Michigan Supreme Court ruled in favor of Dodge. Henry couldn’t lower consumer prices or raise employee salaries. 

Basically, another company came in and cried that Ford wanted to make things better for workers and consumers instead of making rich people richer. 

Ford was and still is a business, not a charity. Therefore the corset required the directors to declare an extra dividend of $19.3 million.