Tag: Henry Ford

On Some Happy Campers

Getting back to nature and going camping has appealed to people ever since cities began housing more people that the countryside did. We campers see retreating to the outdoors as getting back in touch with our collective past, a simpler (and perhaps, happier) time. And the invention and proliferation of the automobile made those remote and rural areas much more accessible.

Take the case of a group of four chums in the 1910s. During the week, they were workaholics, dedicated to their various careers and businesses, but, on occasion, they would tear themselves away and go, by the fairly new automobile, to the woods. There, they would camp–after a fashion. Some people today would call what this group of mature men did glamping–the idea of camping but with some of the creature comforts from “civilization” in tow. And I get that. The older I get, the more I want a nice bed, even if it’s under the stars. I want good food and not gorp or MREs. However, this group went a bit farther than that. They loaded their cars with folding tables and even had batteries rigged up for electric lights. Now, remember, these guys were doing this in the 1910s. But they insisted on the creature comforts because, well, they were, as I stated, more mature men.

The four friends labeled themselves The Vagabonds because of their camping excursions. Jack, Hank, Tommy, and Harve enjoyed their trips together. They’d smoke cigars around a large fire and swap tales and even brag about their business exploits or even (and these were secrets) their conquests in love. Sometimes, other business types would join the group, but the four Vagabonds were always the core.

And the group documented their trips. They kept journals about what they did. They took photographs. And one of them even brought an early movie camera and made some 1910s version of home movies about their exploits “roughing it” in the “wilderness” of wherever it was they were on that particular trip.

Now, remember, at that time, there wasn’t the extensive highway system that we have today. There weren’t the typical tourist and traveler comforts like common gas stations or rest stops. So, in that sense, the Vagabonds were indeed roughing it after a sort. But not so much. They were, in fact, rather happy campers.

But then, Jack died. It didn’t seem the same after that. The last trip the group made together was in 1921 before he passed. The remaining three tried to carry on, but they knew the magic period had passed. Besides, word was getting out about what they were doing, and other people were copying their methods and style.

Yet, today, we can still look at the pictures of what famous naturalist John Burroughs, inventor Thomas Edison, industrialist Henry Ford, and rubber magnate Harvey Firestone did on their trips to the wilderness.

On a Risky Venture

Investments are tricky. It doesn’t seem to be a matter of throwing money at the popular or profitable company now, but the secret to good investing seems to be the ability to predict the Next Big Thing. Such an opportunity befell John S Gray in the early 1900s.

Gray was part of an immigrant family from Edinburgh, Scotland, who came to the United States in the 1850s. By the beginning of the 20th century, Gray had become a typical American success story. He had become a successful candymaker, businessman, and banker. That’s when his nephew, a man named Alexander Malcomson, approached Mr. Gray with an investment opportunity.  The nephew said that he had a friend who was on the cutting edge of some new technology that was going to be the next big thing.

Another business axiom is that people who have money often keep it because they don’t invest in risky ventures. That’s why, at first, John Gray wasn’t interested in his nephews proposal.  Look at the picture of John Gray above. He is solid, respectable, and conservative. He does not seem to be the type of man who would suffer fools gladly. But, Malcomson persisted, and he promised Gray that investors could take their money out of the company at any time.

John Gray thought about this for a long time. Perhaps it was his Scottish blood that made him not want to throw good money at a risky venture. His nephew had an up-and-down record of risky investments, and it was Gray’s feeling that this was one of the more risky opportunities. However, the promise that his money could be recovered at any time proved enough for Gray to reluctantly invest $10,500, which gave him just over 10% of the company.

On the strength of Gray’s name, Malcomson was able to convince other investors to join the risky venture that he and his other partners were pursuing.  Interestingly, some of the investors in this group included the Dodge brothers, who would go on to build the successful line of automobiles. Because of his stature in the financial community, John Gray was elected the first president of the new corporation at the first meeting of the 12 investors.

Oh, the venture was profitable from the start. Within a few weeks, all the investors made back their initial outlays several times over.  Yet, despite the success, friction arose between the investors. Some of them had their own businesses – – Malcomson and Gray among them. Some of the investors only worked at the new company.  The friction centered on what direction the new company should take going forward. Surprisingly, Gray sided with those who worked only in the company. He and the other investors eventually froze Malcomson out, and the company bought Malcomson’s shares.

The future looked bright for John Gray, and this risky venture now seemed to be a stroke of genius. Unfortunately, only three years into the venture, John Gray died of a heart attack. He was replaced by the vice President of the company—the man upon whose idea the company was based.

By the way, when Gray’s estate finally sold his shares back to the company, the original $10,500 investment produced a total return of almost $40 million.

You’re probably wondering what company John Gray risked his money over. The company was named for that vice president who took over when Gray died, and the product the company made became synonymous with the man who started it.

You know it as the Ford Motor Company.