At our residency, you will present your book review in a MS PowerPoint or Prezi presentation. You should include the following information:The title, and a brief introduction to the major theme of th
Busin ess A dven tu res
Tw elv e C la ssic T ale s f r o m t h e W orld o f W all S tr eet
Jo hn B ro oks
Con te n ts
1 The F lu ctu atio n
TH E L IT TLE C RA SH I N ’ 6 2
2 The F ate o f t h e E dse l
A C A UTIO NARY T A LE
3 The F ed era l I n co m e T ax
IT S H IS T O RY A ND P EC U LIA RIT IE S
4 A R ea so nable A m ount o f T im e
IN SID ER S A T T EX A S G U LF S U LPH UR
5 Xero x X ero x X ero x X ero x
6 Makin g t h e C usto m ers W hole
TH E D EA TH O F A P R ESID EN T
7 The I m pacte d P hilo so phers
NON-C O M MUNIC A TIO N A T G E
8 The L ast G re a t C orn er
A C O M PA NY C A LLED P IG GLY W IG GLY
9 A S eco nd S ort o f L ife
DAVID E . L IL IE N TH AL, B U SIN ESSM AN
10
Sto ckh old er S ea so n
ANNUAL M EETIN GS A ND C O RPO RA TE P O W ER
11
One F re e B ite
A M AN, H IS K NOW LED GE, A ND H IS J O B
12
In D efe n se o f S te rlin g
TH E B A NKER S, T H E P O UND, A ND T H E D OLLA R
In dex 1
The F lu ctu atio n
TH E S T O CK M ARK ET
—th e d ayti m e a d ventu re s e ria l o f th e w ell- to -d o— would n o t b e th e s to ck m ark et i f
it d id n o t h av e i ts u p s a nd d ow ns. A ny b oard -ro om s itte r w ith a ta ste f o r W all S tr e et l o re h as h eard o f
th e re to rt th at J . P . M org an th e E ld er is s u p pose d to h av e m ad e to a n aïv e a cq uain ta nce w ho h ad
ventu re d to a sk th e g re at m an w hat th e m ark et w as g o in g to d o. “ It w ill flu ctu ate ,” re p lie d M org an
dry ly . A nd it h as m any o th er d is ti n cti v e c hara cte ris ti c s. A part fr o m th e e co no m ic a d vanta ges a nd
dis a d vanta ges
o f s to ck e xchanges— th e a d vanta ge th at th ey p ro vid e a fr e e flo w o f c ap ita l to fin ance
in d ustr ia l e xp ansio n, fo r in sta nce, a nd th e d is a d vanta ge th at th ey p ro vid e a n a ll to o c o nv enie nt w ay
fo r th e u nlu cky, th e i m pru d ent, a nd th e g ullib le to l o se th eir m oney— th eir d ev elo pm ent h as c re ate d a
who le p atte rn o f so cia l b ehav io r, c o m ple te w ith c usto m s, la nguage, a nd p re d ic ta b le re sp onse s to
giv en e v ents . W hat is tr u ly e xtr a o rd in ary is th e s p eed w ith w hic h th is p atte rn e m erg ed fu ll b lo w n
fo llo w in g th e esta b lis h m ent, in 1 611 , o f th e w orld ’s fir s t im porta nt sto ck exchange— a ro ofle ss
co urty ard in A mste rd am — and th e d egre e to w hic h it p ers is ts ( w ith v aria ti o ns, it is tr u e) o n th e N ew
York S to ck E xchange in th e nin ete en-s ix ti e s. P re se nt- d ay sto ck tr a d in g in th e U nite d S ta te s— a
bew ild erin gly v ast e nte rp ris e , in v olv in g m illio ns o f m ile s o f p riv ate te le gra p h w ir e s, c o m pute rs th at
can re ad a nd c o py th e M anhatta n T ele p ho ne D ir e cto ry in th re e m in ute s, a nd o ver tw enty m illio n
sto ckho ld er p arti c ip ants — would s e em to b e a f a r c ry f r o m a h and fu l o f s e v ente enth -c entu ry D utc hm en
hagglin g in th e ra in . B ut th e fie ld m ark s are m uch th e sa m e. T he fir s t sto ck exchange w as,
in ad verte ntl y , a l a b ora to ry i n w hic h n ew h um an r e acti o ns w ere r e v eale d . B y th e s a m e to ken, th e N ew
York S to ck E xchange i s a ls o a s o cio lo gic al te st tu b e, f o re v er c o ntr ib uti n g to th e h um an s p ecie s’ s e lf-
und ers ta nd in g.
The behav io r of th e pio neerin g D utc h sto ck tr a d ers is ab ly docum ente d in a book enti tl e d
“C onfu sio n o f C onfu sio ns,” w ritte n b y a p lu nger o n th e A mste rd am m ark et n am ed J o se p h d e l a V ega;
orig in ally p ub lis h ed in 1 688, it w as r e p rin te d in E nglis h tr a nsla ti o n a fe w y ears a go b y th e H arv ard
Busin ess S cho ol. A s fo r th e b ehav io r o f p re se nt- d ay A meric an in v esto rs a nd b ro kers — who se tr a its ,
lik e th o se o f a ll s to ck tr a d ers , a re e xaggera te d i n ti m es o f c ris is — it m ay b e c le arly r e v eale d th ro ugh a
co nsid era ti o n o f th eir a cti v iti e s d urin g th e la st w eek o f M ay, 1 962, a ti m e w hen th e s to ck m ark et
flu ctu ate d in a sta rtl in g w ay. O n M ond ay, M ay 28th , th e D ow -J o nes av era ge of th ir ty le ad in g
in d ustr ia l s to cks, w hic h h as b een c o m pute d e v ery tr a d in g d ay s in ce 1 897, d ro pped 3 4.9 5 p oin ts , o r
more th an i t h ad d ro pped o n a ny o th er d ay e xcep t O cto ber 2 8, 1 929, w hen th e l o ss w as 3 8.3 3 p oin ts .
The v olu m e o f tr a d in g o n M ay 2 8th w as 9 ,3 50,0 00 s h are s— th e s e v enth -la rg est
o ne-d ay tu rn o ver in
Sto ck E xchange h is to ry . O n T uesd ay, M ay 2 9th , a fte r a n a la rm in g m orn in g w hen m ost s to cks s a nk f a r
belo w th eir M ond ay-a fte rn o on clo sin g pric es, th e m ark et su d denly changed dir e cti o n, charg ed
up w ard w ith a sto nis h in g v ig o r, a nd fin is h ed th e d ay w ith a la rg e, th o ugh n o t r e co rd -b re akin g, D ow -
Jo nes g ain o f 2 7.0 3 p oin ts . T uesd ay’s r e co rd , o r n ear r e co rd , w as i n tr a d in g v olu m e; th e 1 4,7 50,0 00 sh are s th at c hanged h and s a d ded u p to th e g re ate st o ne-d ay to ta l e v er e xcep t fo r O cto ber 2 9, 1 929,
when tr a d in g r a n j u st o ver s ix te en m illio n s h are s. ( L ate r i n th e s ix ti e s, te n, tw elv e, a nd e v en f o urte en-
millio n s h are d ays b ecam e c o m monp la ce; th e 1 929 v olu m e r e co rd w as fin ally b ro ken o n A pril 1 st,
1968, a nd fr e sh r e co rd s w ere s e t a gain a nd a gain in th e n ext fe w m onth s.) T hen, o n T hurs d ay, M ay
31st, a fte r a W ed nesd ay h o lid ay in o bse rv ance o f M em oria l D ay, th e c ycle w as c o m ple te d ; o n a
volu m e o f 1 0,7 10,0 00 s h are s, th e f ifth -g re ate st i n h is to ry , th e D ow -J o nes a v era ge g ain ed 9 .4 0 p oin ts ,
le av in g i t s lig htl y a b ove th e l e v el w here i t h ad b een b efo re a ll th e e xcite m ent b egan.
The c ris is r a n its c o urs e in th re e d ays, b ut, n eed le ss to s a y, th e p ost- m orte m s to ok lo nger. O ne o f
de l a V ega’s o bse rv ati o ns a b out th e A mste rd am tr a d ers w as th at th ey w ere “ v ery c le v er i n i n v enti n g
re aso ns” f o r a s u d den r is e o r f a ll i n s to ck p ric es, a nd th e W all S tr e et p und its c erta in ly n eed ed a ll th e
cle v ern ess th ey c o uld m uste r to e xp la in w hy, in th e m id dle o f a n e xcelle nt b usin ess y ear, th e m ark et
had s u d denly ta ken its s e co nd -w ors t n o se d iv e e v er u p to th at m om ent. B eyo nd th ese e xp la nati o ns—
am ong w hic h P re sid ent K enned y’s A pril c ra ckd ow n o n th e s te el in d ustr y ’s p la nned p ric e in cre ase
ra nked h ig h— it w as i n ev ita b le th at th e p ostm orte m s s h o uld o fte n c o m pare M ay, 1 962, w ith O cto ber,
1929. T he f ig ure s f o r p ric e m ovem ent a nd tr a d in g v olu m e a lo ne w ould h av e f o rc ed th e p ara lle l, e v en
if th e w ors t panic days of th e tw o m onth s— th e tw enty -e ig hth and th e tw enty -n in th — had no t
myste rio usly and , to so m e p eo ple , o m in o usly co in cid ed . B ut it w as genera lly co nced ed th at th e
co ntr a sts w ere m ore p ers u asiv e th an th e s im ila riti e s. B etw een 1 929 a nd 1 962, r e gula ti o n o f tr a d in g
pra cti c es a nd l im ita ti o ns o n th e a m ount o f c re d it e xte nd ed to c usto m ers f o r th e p urc hase o f s to ck h ad
mad e i t d iffic ult, i f n o t
a ctu ally i m possib le , f o r a m an to l o se
all
h is m oney o n th e E xchange. I n s h o rt,
de la V ega’s e p ith et fo r th e A mste rd am sto ck e xchange in th e six te en-e ig hti e s— he c alle d it “ th is
gam blin g h ell,” a lth o ugh h e o bvio usly l o ved i t— had b eco m e c o nsid era b ly l e ss a p plic ab le to th e N ew
York e xchange i n th e th ir ty -th re e y ears b etw een th e tw o c ra sh es.
TH E
1962 cra sh did no t co m e w ith o ut w arn in g, ev en th o ugh fe w obse rv ers re ad th e w arn in gs
co rre ctl y . S ho rtl y a fte r th e b egin nin g o f th e y ear, s to cks h ad b egun fa llin g a t a p re tty c o nsis te nt r a te ,
and th e p ace had accele ra te d to th e p oin t w here th e p re v io us b usin ess w eek— th at o f M ay 2 1st
th ro ugh M ay 2 5th — had b een th e w ors t o n th e S to ck E xchange s in ce J u ne, 1 950. O n th e m orn in g o f
Mond ay, M ay 2 8th , th en, b ro kers a nd d eale rs h ad r e aso n to b e in a th o ughtf u l m ood. H ad th e b otto m
been r e ached , o r w as i t s ti ll a head ? O pin io n a p pears , i n r e tr o sp ect, to h av e b een d iv id ed . T he D ow -
Jo nes n ew s s e rv ic e, w hic h s e nd s i ts s u b sc rib ers s p ot f in ancia l n ew s b y te le p rin te r, r e fle cte d a c erta in
ap pre hensiv eness b etw een th e ti m e i t s ta rte d i ts tr a nsm is sio ns, a t n in e o ’c lo ck, a nd th e o penin g o f th e
Sto ck E xchange, a t te n. D urin g th is h o ur, th e b ro ad ta p e ( a s th e D ow -J o nes s e rv ic e, w hic h i s p rin te d
on v erti c ally r u nnin g p ap er s ix a nd a q uarte r in ches w id e, is o fte n c alle d , to d is ti n guis h it fr o m th e
Sto ck E xchange p ric e ta p e, w hic h is p rin te d h o riz o nta lly a nd is o nly th re e-q uarte rs o f a n in ch h ig h)
co m mente d th at m any s e curiti e s d eale rs h ad b een b usy o ver th e w eekend s e nd in g o ut d em and s fo r
ad diti o nal c o lla te ra l to c re d it c usto m ers w ho se s to ck a sse ts w ere s h rin kin g in v alu e; re m ark ed th at
th e ty p e o f p re cip ita te liq uid ati o n s e en d urin g th e p re v io us w eek “ has b een a s tr a nger to W all S tr e et
fo r y ears ;” a nd w ent o n to g iv e s e v era l ite m s o f e nco ura gin g b usin ess n ew s, s u ch a s th e fa ct th at
Westi n gho use h ad ju st re ceiv ed a n ew N av y c o ntr a ct. In th e s to ck m ark et, h o w ev er, a s d e la V ega
poin ts o ut, “ th e n ew s [ a s s u ch] is o fte n o f littl e v alu e;” in th e s h o rt r u n, th e m ood o f th e in v esto rs is
what c o unts .
This m ood b ecam e m anife st w ith in a m atte r o f m in ute s a fte r th e S to ck E xchange o pened . A t 1 0:1 1 ,
th e b ro ad ta p e r e p orte d th at “ sto cks a t th e o penin g w ere m ix ed a nd o nly m odera te ly
a cti v e.” T his w as
re assu rin g in fo rm ati o n, b ecause “ m ix ed ” m eant th at s o m e w ere u p a nd s o m e w ere d ow n, a nd a ls o because a f a llin g m ark et i s u niv ers a lly r e gard ed a s f a r l e ss th re ate nin g w hen th e a m ount o f a cti v ity i n
it is m odera te ra th er th an g re at. B ut th e c o m fo rt w as s h o rt- liv ed , fo r b y 1 0:3 0 th e S to ck E xchange
ta p e, w hic h r e co rd s th e p ric e a nd th e s h are v olu m e o f e v ery tr a nsa cti o n m ad e o n th e flo or, n o t o nly
was c o nsis te ntl y r e co rd in g l o w er p ric es b ut, r u nnin g a t i ts m axim um s p eed o f f iv e h und re d c hara cte rs
per m in ute , w as s ix m in ute s l a te . T he l a te ness o f th e ta p e m eant th at th e m achin e w as s im ply u nab le to
keep a b re ast o f w hat w as g o in g o n, s o f a st w ere tr a d es b ein g m ad e. N orm ally , w hen a tr a nsa cti o n i s
co m ple te d o n th e flo or o f th e E xchange, a t 1 1 W all S tr e et, a n E xchange e m plo yee w rite s th e d eta ils
on a s lip o f p ap er a nd s e nd s it b y p neum ati c tu b e to a r o om o n th e fifth flo or o f th e b uild in g, w here
one o f a s ta ff o f g ir ls ty p es i t i n to th e ti c ker m achin e f o r tr a nsm is sio n. A l a p se o f tw o o r th re e m in ute s
betw een a f lo or tr a nsa cti o n a nd i ts a p peara nce o n th e ta p e i s n o rm al, th ere fo re , a nd i s n o t c o nsid ere d
by th e S to ck E xchange to b e “ la te ness;” th at w ord , in th e la nguage o f th e E xchange, is u se d o nly to
desc rib e a ny a d diti o nal l a p se b etw een th e ti m e a s a le s s lip a rriv es o n th e f ifth f lo or a nd th e ti m e th e
hard -p re sse d ti c ker is a b le to a cco m modate it. (“ T he te rm s u se d o n th e E xchange a re n o t c are fu lly
cho se n,” c o m pla in ed d e la V ega.) T ap e d ela ys o f a fe w m in ute s o ccur fa ir ly o fte n o n b usy tr a d in g
days, b ut sin ce 1 930, w hen th e ty p e o f ti c ker in u se in 1 962 w as in sta lle d , b ig d ela ys h ad b een
extr e m ely r a re . O n O cto ber 2 4, 1 929, w hen th e ta p e f e ll tw o h und re d a nd f o rty -s ix m in ute s b ehin d , i t
was b ein g p rin te d a t th e r a te o f tw o h und re d a nd e ig hty -fiv e c hara cte rs a m in ute ; b efo re M ay, 1 962,
th e g re ate st d ela y th at h ad e v er o ccurre d o n th e n ew m achin e w as th ir ty -fo ur m in ute s.
Unm is ta kab ly , p ric es w ere g o in g d ow n a nd a cti v ity w as g o in g u p , b ut th e s itu ati o n w as s ti ll n o t
desp era te . A ll th at h ad b een e sta b lis h ed b y e le v en o ’c lo ck w as th at th e p re v io us w eek’s d eclin e w as
co nti n uin g a t a m odera te ly a ccele ra te d ra te . B ut a s th e p ace o f tr a d in g in cre ase d , so d id th e ta p e
dela y. A t 1 0:5 5, i t w as th ir te en m in ute s l a te ; a t 1 1 :1 4, tw enty m in ute s; a t 1 1 :3 5, tw enty -e ig ht m in ute s;
at 1 1 :5 8, th ir ty -e ig ht m in ute s; a nd a t 1 2:1 4, f o rty -th re e
m in ute s. ( T o i n je ct a t l e ast a s e aso nin g o f u p -
to -d ate i n fo rm ati o n i n to th e ta p e w hen i t i s f iv e m in ute s o r m ore i n a rre ars , th e E xchange p erio dic ally
in te rru p te d i ts n o rm al p ro gre ss to i n se rt “ fla sh es,” o r c urre nt p ric es o f a f e w l e ad in g s to cks. T he ti m e
re q uir e d to d o th is , o f co urs e , ad ded to th e la te ness.) T he no on co m puta ti o n o f th e D ow -J o nes
in d ustr ia l a v era ge s h o w ed a l o ss f o r th e d ay s o f a r o f 9 .8 6 p oin ts .
Sig ns o f p ub lic h yste ria b egan to a p pear d urin g th e l u nch h o ur. O ne s ig n w as th e f a ct th at b etw een
tw elv e a nd tw o, w hen th e m ark et is tr a d iti o nally in th e d old ru m s, n o t o nly d id p ric es c o nti n ue to
declin e b ut v olu m e c o nti n ued to r is e , w ith a c o rre sp ond in g e ffe ct o n th e ta p e; j u st b efo re tw o o ’c lo ck,
th e ta p e d ela y s to od a t f ifty -tw o m in ute s. E vid ence th at p eo ple a re s e llin g s to cks a t a ti m e w hen th ey
ought to b e e ati n g lu nch is a lw ays r e gard ed a s a s e rio us m atte r. P erh ap s ju st a s c o nv in cin g a p orte nt
of a p pro achin g a gita ti o n w as to b e fo und in th e T im es S quare o ffic e ( a t 1 451 B ro ad w ay) o f M errill
Lynch, P ie rc e, F enner & S m ith , th e u nd is p ute d G arg antu a o f th e b ro kera ge tr a d e. T his o ffic e w as
pla gued b y a p eculia r p ro ble m : b ecause o f i ts e xcessiv ely c entr a l l o cati o n, i t w as v is ite d e v ery d ay a t
lu nchti m e b y a n u nusu al n um ber o f w hat a re k no w n i n b ro kera ge c ir c le s a s “ w alk -in s” — peo ple w ho
are s e curiti e s c usto m ers o nly i n a m in usc ule w ay, i f a t a ll, b ut w ho f in d th e a tm osp here o f a b ro kera ge
offic e a nd th e c hangin g p ric es o n i ts q uo ta ti o n b oard e nte rta in in g, e sp ecia lly i n ti m es o f s to ck-m ark et
cris is . ( “ T ho se p la yin g th e g am e m ere ly fo r th e s a ke o f e nte rta in m ent a nd n o t b ecause o f g re ed in ess
are e asily to b e d is ti n guis h ed .” — de la V ega.) F ro m lo ng e xp erie nce, th e o ffic e m anager, a c alm
Geo rg ia n n am ed S am uel M oth ner, h ad le arn ed to r e co gniz e a c lo se c o rre la ti o n b etw een th e c urre nt
degre e o f p ub lic c o ncern a b out th e m ark et a nd th e n um ber o f w alk -in s i n h is o ffic e, a nd a t m id day o n
May 2 8th th e m ob o f th em w as s o d ense a s to h av e, f o r h is tr a in ed s e nsib iliti e s, p ositi v ely a lb atr o ss-
lik e c o nno ta ti o ns o f d is a ste r a head .
Moth ner’s tr o ub le s, l ik e th o se o f b ro kers f r o m S an D ie go to B ango r, w ere b y n o m eans c o nfin ed to dis tu rb in g s ig ns a nd p orte nts . A n u nre str a in ed liq uid ati o n o f s to cks w as a lr e ad y w ell u nd er w ay; in
Moth ner’s o ffic e, o rd ers f r o m c usto m ers w ere
r u nnin g f iv e o r s ix ti m es a b ove a v era ge, a nd n early a ll
of th em w ere o rd ers to s e ll. B y a nd l a rg e, b ro kers w ere u rg in g th eir c usto m ers to k eep c o ol a nd h o ld
on to th eir sto cks, a t le ast fo r th e p re se nt, b ut m any o f th e c usto m ers c o uld n o t b e p ers u ad ed . In
ano th er m id to w n M errill L ynch o ffic e, a t 6 1 W est F orty -e ig hth S tr e et, a c ab le w as r e ceiv ed fr o m a
su b sta nti a l c lie nt l iv in g i n R io d e J a neir o th at s a id s im ply , “ P le ase s e ll o ut e v ery th in g i n m y a cco unt.”
Lackin g th e ti m e to c o nd uct a lo ng-d is ta nce a rg um ent in fa v or o f fo rb eara nce, M errill L ynch h ad n o
cho ic e b ut to c arry o ut th e o rd er. R ad io a nd te le v is io n s ta ti o ns, w hic h b y e arly a fte rn o on h ad c aught
th e s c ent o f n ew s, w ere n o w i n te rru p ti n g th eir r e gula r p ro gra m s w ith s p ot b ro ad casts o n th e s itu ati o n;
as a S to ck E xchange p ub lic ati o n h as s in ce c o m mente d , w ith s o m e a sp erity , “ T he d egre e o f a tte nti o n
dev ote d to th e s to ck m ark et in th ese n ew s b ro ad casts m ay h av e c o ntr ib ute d to th e u neasin ess a m ong
so m e in v esto rs .” A nd th e p ro ble m th at b ro kers fa ced in e xecuti n g th e flo od o f s e llin g o rd ers w as b y
th is ti m e v astl y c o m plic ate d b y te chnic al fa cto rs . T he ta p e d ela y, w hic h b y 2 :2 6 a m ounte d to fifty -
fiv e m in ute s, m eant th at f o r th e m ost p art th e ti c ker w as r e p orti n g th e p ric es o f a n h o ur b efo re , w hic h
in m any c ase s w ere a nyw here fr o m o ne to te n d olla rs a s h are h ig her th an th e c urre nt p ric es. It w as
alm ost im possib le fo r a b ro ker a ccep ti n g a s e llin g o rd er to te ll h is c usto m er w hat p ric e h e m ig ht
exp ect to g et. S om e b ro kera ge fir m s w ere tr y in g to c ir c um vent th e ta p e d ela y b y u sin g m akesh ift
re p orti n g sy ste m s of th eir ow n; am ong th ese w as M errill Lynch, w ho se flo or bro kers , afte r
co m ple ti n g a tr a d e, w ould — if th ey re m em bere d a nd h ad th e ti m e— sim ply sh o ut th e re su lt in to a
flo ors id e te le p ho ne co nnecte d to a “sq uaw k box” in th e fir m ’s head offic e, at 70 P in e S tr e et.
Obvio usly , h ap haza rd m eth o ds l ik e th is w ere s u b je ct to e rro r.
On th e S to ck E xchange f lo or i ts e lf, th ere w as n o q uesti o n o f a ny s o rt o f r a lly ; i t w as s im ply a c ase
of all sto cks’ declin in g ra p id ly and ste ad ily , on eno rm ous volu m e. A s de la V ega m ig ht hav e
desc rib ed th e s c ene— as, in fa ct, h e
did
ra th er fla m boyantl y d esc rib e a s im ila r s c ene— “T he b ears
[th at is , th e se lle rs ] a re c o m ple te ly ru le d b y fe ar, tr e p id ati o n, a nd n erv ousn ess. R ab bits b eco m e
ele p hants , b ra w ls in a ta v ern b eco m e re b ellio ns, fa in t
s h ad ow s a p pear to th em a s s ig ns o f c hao s.”
Not th e le ast w orris o m e asp ect of th e situ ati o n w as th e fa ct th at th e le ad in g blu echip sto cks,
re p re se nti n g sh are s in th e co untr y ’s la rg est co m panie s, w ere rig ht in th e m id dle o f th e d eclin e;
in d eed , A meric an T ele p ho ne & T ele gra p h, th e la rg est c o m pany o f th em a ll, a nd th e o ne w ith th e
la rg est n um ber o f s to ckho ld ers , w as l e ad in g th e e nti r e m ark et d ow nw ard . O n a s h are v olu m e g re ate r
th an th at o f a ny o f th e m ore th an f ifte en h und re d o th er s to cks tr a d ed o n th e E xchange ( m ost o f th em a t a
ti n y f r a cti o n o f T ele p ho ne’s p ric e), T ele p ho ne h ad b een b atte re d b y w av e a fte r w av e o f u rg ent s e llin g
all d ay, u nti l a t tw o o ’c lo ck it s to od a t 1 04¾ — dow n 6 ⅞ fo r th e d ay— and w as s ti ll in fu ll r e tr e at.
Alw ays s o m eth in g o f a b ellw eth er, T ele p ho ne w as n o w b ein g w atc hed m ore c lo se ly th an e v er, a nd
each lo ss o f a fr a cti o n o f a p oin t in its p ric e w as th e s ig nal fo r fu rth er d eclin es a ll a cro ss th e b oard .
Befo re th re e o ’c lo ck, I .B .M . w as d ow n 1 7½ p oin ts ; S ta nd ard O il o f N ew J e rs e y, o fte n e xcep ti o nally
re sis ta nt to g enera l d eclin es, w as o ff 3 ¼ ; a nd T ele p ho ne its e lf h ad tu m ble d a gain , to 1 01⅛ . N or d id
th e b otto m a p pear to b e i n s ig ht.
Yet th e a tm osp here o n th e flo or, a s it h as s in ce b een d esc rib ed b y m en w ho w ere th ere , w as n o t
hyste ric al— or, a t le ast, a ny h yste ria w as w ell c o ntr o lle d . W hile m any b ro kers w ere s tr a in in g to th e
utm ost th e E xchange’s r u le a gain st r u nnin g o n th e flo or, a nd s o m e fa ces w ore e xp re ssio ns th at h av e
been c hara cte riz e d b y a c o nse rv ati v e E xchange o ffic ia l a s “ stu d io us,” th ere w as th e u su al a m ount o f
jo sh in g, ho rs e p la y, and exchangin g of m ild in su lts . (“ Jo kes … fo rm a m ain attr a cti o n to th e
busin ess.” — de la V ega.) B ut th in gs w ere n o t e nti r e ly th e s a m e. “ W hat I p arti c ula rly re m em ber is
fe elin g p hysic ally e xhauste d ,” o ne f lo or b ro ker h as s a id . “ O n a c ris is d ay, y o u’re l ik ely to w alk te n o r ele v en m ile s o n th e flo or— th at’ s b een m easu re d w ith p ed om ete rs — but it is n ’t ju st th e d is ta nce th at
wears y o u d ow n. It’ s th e p hysic al c o nta ct. Y ou h av e to p ush a nd g et p ush ed . P eo ple c lim b a ll o ver
yo u. T hen, th ere w ere th e s o und s— th e te nse h um o f v oic es th at y o u a lw ays g et i n ti m es o f d eclin e. A s
th e ra te o f d eclin e in cre ase s, so d oes th e p itc h o f th e h um . In a ris in g m ark et, th ere ’s a n e nti r e ly
diffe re nt s o und . A fte r y o u g et u se d to th e d iffe re nce, y o u
c an te ll ju st a b out w hat th e m ark et is d oin g
with y o ur e yes s h ut. O f c o urs e , th e u su al h eav y j o kin g w ent o n, a nd m ayb e th e j o kes g o t a l ittl e m ore
fo rc ed th an u su al. E very b ody h as c o m mente d o n th e fa ct th at w hen th e c lo sin g b ell ra ng, a t th re e-
th ir ty , a c heer w ent u p f r o m th e f lo or. W ell, w e w ere n’t c heerin g b ecause th e m ark et w as d ow n. W e
were c heerin g b ecause i t w as o ver.”
BU T
w as it o ver? T his q uesti o n o ccup ie d W all S tr e et a nd th e n ati o nal in v esti n g c o m munity a ll th e
afte rn o on a nd e v enin g. D urin g th e a fte rn o on, th e la ggard E xchange ti c ker slo gged a lo ng, so le m nly
re co rd in g p ric es th at h ad l o ng s in ce b eco m e o bso le te . ( It w as a n h o ur a nd n in e m in ute s l a te a t c lo sin g
ti m e, and d id no t fin is h p rin ti n g th e d ay’s tr a nsa cti o ns unti l 5 :5 8.) M any b ro kers sta yed o n th e
Exchange flo or u nti l a fte r fiv e o ’c lo ck, s tr a ig hte nin g o ut th e d eta ils o f tr a d es, a nd th en w ent to th eir
offic es to w ork o n th eir a cco unts . W hat th e p ric e ta p e h ad to te ll, w hen i t f in ally g o t a ro und to te llin g
it, w as a u nifo rm ly s a d ta le . A meric an T ele p ho ne h ad c lo se d a t 1 00⅝ , d ow n 1 1 fo r th e d ay. P hilip
Morris h ad c lo se d a t 7 1½ , d ow n 8 ¼ C am pbell S oup h ad c lo se d a t 8 1, d ow n 1 0¾ . I .B .M . h ad c lo se d
at 3 61, d ow n 3 7½ . A nd s o it w ent. In b ro kera ge o ffic es, e m plo yees w ere k ep t b usy — many o f th em
fo r m ost o f th e n ig ht— at v ario us s p ecia l c ho re s, o f w hic h b y fa r th e m ost u rg ent w as s e nd in g o ut
marg in c alls . A m arg in c all i s a d em and f o r a d diti o nal c o lla te ra l f r o m a c usto m er w ho h as b orro w ed
money fr o m h is b ro ker to b uy s to cks a nd w ho se s to cks a re n o w w orth b are ly e no ugh to c o ver th e
lo an. I f a c usto m er i s u nw illin g o r u nab le to m eet a m arg in c all w ith m ore c o lla te ra l, h is b ro ker w ill
se ll th e m arg in ed s to ck a s s o on a s p ossib le ; s u ch s a le s m ay d ep re ss o th er s to cks fu rth er, le ad in g to
more m arg in c alls , le ad in g to m ore s to ck s a le s, a nd s o o n d ow n in to th e p it. T his p it h ad p ro ved
botto m le ss in 1 929, w hen th ere w ere n o fe d era l re str ic ti o ns o n sto ck-m ark et c re d it. S in ce th en, a
flo or h ad b een p ut i n i t, b ut th e f a ct r e m ain s th at c re d it r e q uir e m ents i n M ay o f 1 962 w ere s u ch th at a
custo m er c o uld e xp ect a c all w hen s to cks h e h ad b ought o n m arg in h ad d ro pped to b etw een f ifty a nd
six ty p er c ent o f th eir v alu e a t th e ti m e h e b ought th em . A nd a t th e c lo se o f tr a d in g o n M ay 2 8th n early
one s to ck i n f o ur h ad d ro pped a s f a r
a s th at f r o m i ts 1 961 h ig h. T he E xchange h as s in ce e sti m ate d th at
91,7 00 m arg in c alls w ere s e nt o ut, m ain ly b y te le gra m , b etw een M ay 2 5th a nd M ay 3 1st; it s e em s a
sa fe a ssu m pti o n th at th e lio n’s s h are o f th ese w ent o ut in th e a fte rn o on, in th e e v enin g, o r d urin g th e
nig ht o f M ay 2 8th — and n o t ju st th e e arly p art o f th e n ig ht, e ith er. M ore th an o ne c usto m er fir s t
le arn ed o f th e c ris is — or fir s t b ecam e a w are o f its a lm ost s p ooky in te nsity — on b ein g a w akened b y
th e a rriv al o f a m arg in c all i n th e p re -d aw n h o urs o f T uesd ay.
If th e d anger to th e m ark et fr o m th e c o nse q uences o f m arg in s e llin g w as m uch le ss in 1 962 th an it
had b een in 1 929, th e d anger fr o m a no th er q uarte r— se llin g b y m utu al fu nd s— was im measu ra b ly
gre ate r. In d eed , m any W all S tr e et p ro fe ssio nals n o w s a y th at a t th e h eig ht o f th e M ay e xcite m ent th e
mere th o ught o f th e m utu al- fu nd s itu ati o n w as e no ugh to m ake th em s h ud der. A s i s w ell k no w n to th e
millio ns o f A meric ans w ho h av e b ought s h are s i n m utu al f u nd s o ver th e p ast tw o d ecad es o r s o , th ey
pro vid e a w ay fo r sm all in v esto rs to p ool th eir re so urc es und er exp ert m anagem ent; th e sm all
in v esto r b uys s h are s i n a f u nd , a nd th e f u nd u se s th e m oney to b uy s to cks a nd s ta nd s r e ad y to r e d eem
th e in v esto r’s sh are s a t th eir c urre nt a sse t v alu e w henev er h e c ho ose s. In a se rio us sto ck-m ark et
declin e, th e r e aso nin g w ent, s m all i n v esto rs w ould w ant to g et th eir m oney o ut o f th e s to ck m ark et a nd
would th ere fo re a sk fo r r e d em pti o n o f th eir s h are s; in o rd er to r a is e th e c ash n ecessa ry to m eet th e re d em pti o n d em and s, th e m utu al f u nd s w ould h av e to s e ll s o m e o f th eir s to cks; th ese s a le s w ould l e ad
to a f u rth er s to ck-m ark et d eclin e, c ausin g m ore h o ld ers o f f u nd s h are s to d em and r e d em pti o n— and s o
on d ow n i n to a m ore u p -to -d ate v ers io n o f th e b otto m le ss p it. T he i n v estm ent c o m munity ’s c o lle cti v e
sh ud der a t th is p ossib ility w as i n te nsifie d b y th e f a ct th at th e m utu al f u nd s’ p ow er to m agnify a m ark et
declin e h ad n ev er b een s e rio usly te ste d ; p ra cti c ally n o nexis te nt in 1 929, th e fu nd s h ad b uilt u p th e
sta ggerin g to ta l o f tw enty -th re e b illio n d olla rs i n a sse ts b y th e s p rin g o f 1 962, a nd n ev er i n th e i n te rim
had th e m ark et d eclin ed w ith a nyth in g l ik e i ts p re se nt f o rc e. C le arly , i f tw enty -th re e b illio n d olla rs i n
asse ts , o r a ny su b sta nti a l fr a cti o n o f th at fig ure , w ere to b e to sse d o nto th e m ark et n o w , it c o uld
genera te
a c ra sh th at w ould m ake 1 929 s e em lik e a s tu m ble . A th o ughtf u l b ro ker n am ed C harle s J .
Rolo , w ho w as a b ook r e v ie w er f o r th e
Atla ntic
u nti l h e j o in ed W all S tr e et’ s l ite ra ry c o te rie i n 1 960,
has r e calle d th at th e th re at o f a fu nd -in d uced d ow nw ard s p ir a l, c o m bin ed w ith g enera l ig no ra nce a s
to w heth er o r n o t o ne w as a lr e ad y in p ro gre ss, w as “ so te rrify in g th at y o u d id n’t e v en m enti o n th e
su b je ct.” A s a m an w ho se lite ra ry s e nsib iliti e s h ad u p to th en s u rv iv ed th e w ell- k no w n c ra ssn ess o f
eco no m ic life , R olo w as p erh ap s a g o od w itn ess o n o th er a sp ects o f th e d ow nto w n m ood a t d usk o n
May 2 8th . “ T here w as a n a ir o f u nre ality ,” h e s a id la te r. “ N o o ne, a s fa r a s I k new , h ad th e s lig hte st
id ea w here th e b otto m w ould b e. T he c lo sin g D ow -J o nes a v era ge th at d ay w as d ow n a lm ost th ir ty -
fiv e p oin ts , to a b out fiv e h und re d a nd s e v enty -s e v en. It’ s n o w c o nsid ere d e le gant in W all S tr e et to
deny it, b ut m any le ad in g p eo ple w ere ta lk in g a b out a b otto m o f fo ur h und re d — whic h w ould , o f
co urs e , h av e b een a d is a ste r. O ne h eard th e w ord s ‘ fo ur h und re d ’ u tte re d a gain a nd a gain , a lth o ugh i f
yo u a sk p eo ple n o w , th ey te nd to te ll y o u th ey s a id ‘ fiv e h und re d .’ A nd a lo ng w ith th e a p pre hensio ns
th ere w as a p ro fo und f e elin g o f d ep re ssio n o f a v ery p ers o nal s o rt a m ong b ro kers . W e k new th at o ur
custo m ers — by n o m eans a ll o f th em r ic h— had s u ffe re d la rg e lo sse s a s a r e su lt o f o ur a cti o ns. S ay
what yo u w ill, it’ s extr e m ely dis a gre eab le to lo se oth er peo ple ’s m oney. R em em ber th at th is
hap pened a t th e e nd o f a b out tw elv e y ears o f g enera lly r is in g s to ck p ric es. A fte r m ore th an a d ecad e
of m ore o r le ss c o nsta nt p ro fits to y o urs e lf a nd y o ur c usto m ers , y o u g et to th in k y o u’re p re tty g o od.
You’re o n to p o f i t. Y ou c an m ake m oney, a nd th at’ s th at. T his b re ak e xp ose d a w eakness. I t s u b je cte d
one to a c erta in lo ss o f se lf- c o nfid ence, fr o m w hic h o ne w as n o t lik ely to re co ver q uic kly .” T he
who le th in g w as e no ugh, a p pare ntl y , to m ake a b ro ker w is h th at h e w ere i n a p ositi o n to a d here to d e
la V ega’s card in al ru le : “
Never g iv e a nyo ne th e a dvic e to b uy o r se ll sh are s
, b ecause , w here
pers p ic acity i s w eakened , th e m ost b enev ole nt p ie ce o f a d vic e c an tu rn o ut b ad ly .”
IT
w as o n T uesd ay m orn in g th at th e d im ensio ns o f M ond ay’s d eb acle b ecam e e v id ent. It h ad b y n o w
been calc ula te d th at th e
pap er lo ss in valu e of all sto cks lis te d on th e E xchange am ounte d to
$20,8 00,0 00,0 00. T his f ig ure w as a n a ll- ti m e r e co rd ; e v en o n O cto ber 2 8, 1 929, th e l o ss h ad b een a
mere $ 9,6 00,0 00,0 00, th e k ey to th e a p pare nt in co nsis te ncy b ein g th e fa ct th at th e to ta l v alu e o f th e
sto cks l is te d o n th e E xchange w as f a r s m alle r i n 1 929 th an i n 1 962. T he n ew r e co rd a ls o r e p re se nte d
a s ig nific ant s lic e o f o ur n ati o nal in co m e— sp ecific ally , a lm ost fo ur p er c ent. In e ffe ct, th e U nite d
Sta te s h ad l o st s o m eth in g l ik e tw o w eeks’ w orth o f p ro ducts a nd p ay i n o ne d ay. A nd , o f c o urs e , th ere
were r e p erc ussio ns a b ro ad . In E uro pe, w here r e acti o ns to W all S tr e et a re d ela yed a d ay b y th e ti m e
diffe re nce, T uesd ay w as th e d ay o f c ris is ; b y n in e o ’c lo ck th at m orn in g in N ew Y ork , w hic h w as
to w ard th e end o f th e tr a d in g d ay in E uro pe, alm ost all th e le ad in g E uro pean exchanges w ere
exp erie ncin g w ild s e llin g, w ith n o a p pare nt c ause o th er th an W all S tr e et’ s c ra sh . T he lo ss in M ila n
was th e w ors t i n e ig hte en m onth s. T hat i n B ru sse ls w as th e w ors t s in ce 1 946, w hen th e B ours e th ere
re o pened a fte r th e w ar. T hat i n L ond on w as th e w ors t i n a t l e ast tw enty -s e v en y ears . I n Z uric h, th ere
had b een a s ic kenin g th ir ty -p er-c ent s e llo ff e arlie r i n th e d ay, b ut s o m e o f th e l o sse s w ere n o w b ein g cut as barg ain hunte rs cam e in to th e m ark et. A nd ano th er so rt of backla sh — le ss dir e ct, but
und oub te d ly m ore se rio us in h um an te rm s— was b ein g fe lt in so m e o f th e p oore r c o untr ie s o f th e
world . F or e xam ple , th e p ric e o f c o pper fo r Ju ly d eliv ery d ro pped o n th e N ew Y ork c o m modity
mark et b y fo rty -fo ur o ne-h und re d th s o f a c ent p er p ound . In sig nific ant a s s u ch a lo ss m ay s o und , it
was a v ita l m atte r to a s m all c o untr y h eav ily d ep end ent o n i ts c o pper e xp orts . I n h is r e cent b ook “ T he
Gre at A sc ent,” R obert L . H eilb ro ner h ad c ite d a n e sti m ate th at f o r e v ery c ent b y w hic h c o pper p ric es
dro p o n th e N ew Y ork m ark et th e C hile an tr e asu ry l o st f o ur m illio n d olla rs ; b y th at s ta nd ard , C hile ’s
pote nti a l l o ss o n c o pper a lo ne w as $ 1,7 60,0 00.
Yet p erh ap s w ors e th an th e k no w le d ge o f w hat h ad h ap pened w as th e fe ar o f w hat m ig ht h ap pen
no w . The
Tim es
b egan a q ueasy le ad e d ito ria l w ith th e sta te m ent th at “ so m eth in g re se m blin g a n
earth q uake h it th e s to ck m ark et y este rd ay,” a nd th en to ok a lm ost h alf a c o lu m n to m ars h al its fo rc es
fo r th e r e aso nab ly
r in gin g a ffir m ati o n “ Ir re sp ecti v e o f th e u p s a nd d ow ns o f th e s to ck m ark et, w e a re
and w ill re m ain th e m aste rs o f o ur e co no m ic fa te .” T he D ow -J o nes n ew s ti c ker, a fte r o penin g u p
sh o p a t n in e o ’c lo ck w ith its c usto m ary c heery “ G ood m orn in g,” la p se d a lm ost im med ia te ly in to
dis tu rb in g r e p orts o f th e m ark et n ew s fr o m a b ro ad , a nd b y 9 :4 5, w ith th e E xchange’s o penin g s ti ll a
quarte r o f a n h o ur a w ay, w as a sk in g its e lf th e jitte ry q uesti o n “ W hen w ill th e d um pin g o f s to cks le t
up ?” N ot j u st y et, i t c o nclu d ed ; a ll th e s ig ns s e em ed to i n d ic ate th at th e s e llin g p re ssu re w as “ fa r f r o m
sa ti s fie d .” T hro ugho ut th e f in ancia l w orld , u gly r u m ors w ere c ir c ula ti n g a b out th e i m min ent f a ilu re o f
vario us s e curiti e s fir m s, in cre asin g th e a ura o f g lo om . ( “ T he e xp ecta ti o n o f a n e v ent c re ate s a m uch
deep er im pre ssio n … th an th e e v ent its e lf.” — de la V ega.) T he fa ct th at m ost o f th ese ru m ors la te r
pro ved fa ls e w as n o h elp a t th e ti m e. W ord o f th e c ris is h ad s p re ad o vern ig ht to e v ery to w n in th e
la nd , and th e sto ck m ark et had beco m e th e nati o nal pre o ccup ati o n. In bro kera ge offic es, th e
sw itc hb oard s w ere j a m med w ith i n co m in g c alls , a nd th e c usto m ers ’ a re as w ith w alk -in s a nd , i n m any
case s, te le v is io n c re w s. A s f o r th e S to ck E xchange i ts e lf, e v ery o ne w ho w ork ed o n th e f lo or h ad g o t
th ere e arly , to b atte n d ow n a gain st th e e xp ecte d s to rm , a nd a d diti o nal h and s h ad b een r e cru ite d fr o m
desk j o bs o n th e u p per f lo ors o f 1 1 W all to h elp s o rt o ut th e m ounta in s o f o rd ers . T he v is ito rs ’ g alle ry
was s o c ro w ded b y o penin g ti m e th at th e u su al g uid ed to urs h ad to b e s u sp end ed fo r th e d ay. O ne
gro up th at s q ueeze d i ts w ay o nto th e g alle ry th at m orn in g w as th e e ig hth -g ra d e c la ss o f C orp us C hris ti
Paro chia l S cho ol, o f W est 1 21st S tr e et; th e c la ss’s te acher, S is te r A quin , e xp la in ed to a r e p orte r th at
th e c hild re n h ad p re p are d fo r th eir v is it o ver th e p re v io us tw o w eeks b y m akin g h yp oth eti c al s to ck-
mark et in v estm ents w ith a n im agin ary te n th o usa nd d olla rs e ach. “ T hey lo st a ll th eir m oney,” s a id
Sis te r A quin .
The E xchange’s o penin g w as fo llo w ed b y th e b la ckest n in ety m in ute s in th e m em ory o f m any
vete ra n d eale rs , i n clu d in g s o m e s u rv iv ors o f 1 929. I n th e f ir s t f e w m in ute s, c o m para ti v ely f e w s to cks
were tr a d ed , b ut th is in acti v ity d id n o t r e fle ct c alm d elib era ti o n; o n th e c o ntr a ry , it r e fle cte d s e llin g
pre ssu re s o g re at th at i t
m om enta rily p ara ly ze d a cti o n. I n th e i n te re sts o f m in im iz in g s u d den j u m ps i n
sto ck p ric es, th e E xchange r e q uir e s th at o ne o f i ts f lo or o ffic ia ls m ust p ers o nally g ra nt h is p erm is sio n
befo re a ny s to ck c an c hange h and s a t a p ric e d iffe rin g fr o m th at o f th e p re v io us s a le b y o ne p oin t o r
more fo r a s to ck p ric ed u nd er tw enty d olla rs , o r b y tw o p oin ts o r m ore fo r a s to ck p ric ed a b ove
tw enty d olla rs . N ow s e lle rs w ere s o p le nti fu l a nd b uyers s o s c arc e th at h und re d s o f s to cks w ould
hav e to o pen a t p ric e c hanges a s g re at a s th at o r g re ate r, a nd th ere fo re n o tr a d in g in th em w as
possib le u nti l a flo or o ffic ia l c o uld b e fo und in th e s h o uti n g m ob. In th e c ase o f s o m e o f th e k ey
is su es, lik e I.B .M ., th e d is p arity b etw een s e lle rs a nd b uyers w as s o w id e th at tr a d in g in th em w as
im possib le ev en
with
th e p erm is sio n o f a n o ffic ia l, a nd th ere w as n o th in g to d o b ut w ait u nti l th e
pro sp ect o f g etti n g a b arg ain p ric e lu re d e no ugh b uyers in to th e m ark et. T he D ow -J o nes b ro ad ta p e, stu tte rin g o ut r a nd om p ric es a nd f r a gm ents o f i n fo rm ati o n a s i f i t w ere i n a s ta te o f s h o ck, r e p orte d a t
11 :3 0 th at “ at l e ast s e v en” B ig B oard s to cks h ad s ti ll n o t o pened ; a ctu ally , w hen th e d ust h ad c le are d
it a p peare d th at th e tr u e fig ure h ad b een m uch la rg er th an th at. M eanw hile , th e D ow -J o nes a v era ge
lo st 1 1 .0 9 m ore p oin ts i n th e f ir s t h o ur, M ond ay’s l o ss i n s to ck v alu es h ad b een i n cre ase d b y s e v era l
billio n d olla rs , a nd th e p anic w as i n f u ll c ry .
And a lo ng w ith p anic c am e n ear c hao s. W hate v er e ls e m ay b e s a id a b out T uesd ay, M ay 2 9th , it
will b e lo ng r e m em bere d a s th e d ay w hen th ere w as s o m eth in g v ery c lo se to a c o m ple te b re akd ow n
of th e re ti c ula te d , a uto m ate d , m in d -b ogglin g c o m ple x o f te chnic al fa ciliti e s th at m ad e n ati o nw id e
sto ck-tr a d in g p ossib le in a h uge c o untr y w here n early o ne o ut o f s ix a d ults w as a s to ckho ld er. M any
ord ers w ere e xecute d a t p ric es fa r d iffe re nt fr o m th e o nes a gre ed to b y th e c usto m ers p la cin g th e
ord ers ; m any o th ers w ere lo st in tr a nsm is sio n, o r in th e sn o w o f sc ra p p ap er th at co vere d th e
Exchange flo or, a nd w ere n ev er e xecute d a t a ll. S om eti m es b ro kera ge fir m s w ere p re v ente d fr o m
executi n g o rd ers b y sim ple in ab ility to g et in to uch w ith th eir flo or m en. A s th e d ay p ro gre sse d ,
Mond ay’s heav y-tr a ffic re co rd s w ere no t only bro ken but m ad e to se em paltr y ; as one in d ex,
Tuesd ay’s clo sin g-ti m e dela y in th e E xchange ta p e w as tw o ho urs and tw enty -th re e m in ute s,
co m pare d
to M ond ay’s h o ur a nd n in e m in ute s. B y a h eav en-s e nt s tr o ke o f p re sc ie nce, M errill L ynch,
whic h h and le d o ver th ir te en p er c ent o f a ll p ub lic tr a d in g o n th e E xchange, h ad ju st in sta lle d a n ew
7074 c o m pute r— th e d ev ic e th at c an c o py th e T ele p ho ne D ir e cto ry in th re e m in ute s— and , w ith its
help , m anaged to keep its acco unts fa ir ly str a ig ht. A no th er new M errill Lynch in sta lla ti o n— an
auto m ati c te le ty p e sw itc hin g sy ste m th at o ccup ie d alm ost half a city b lo ck and w as in te nd ed to
exp ed ite c o m munic ati o n b etw een th e fir m ’s v ario us o ffic es— als o r o se to th e o ccasio n, th o ugh it g o t
so h o t th at i t c o uld n o t b e to uched . O th er f ir m s w ere l e ss f o rtu nate , a nd i n a n um ber o f th em c o nfu sio n
gain ed th e up per hand so th o ro ughly th at so m e b ro kers , ti r e d o f tr y in g in v ain to get th e la te st
quo ta ti o ns o n s to cks o r to r e ach th eir p artn ers o n th e E xchange f lo or, a re s a id to h av e s im ply th ro w n
up th eir h and s a nd g o ne o ut f o r a d rin k. S uch u np ro fe ssio nal b ehav io r m ay h av e s a v ed th eir c usto m ers
a g re at d eal o f m oney.
But th e c ro w nin g i r o ny o f th e d ay w as s u re ly s u p plie d b y th e s itu ati o n o f th e ta p e d urin g th e l u nch
ho ur. J u st b efo re n o on, s to cks re ached th eir lo w est le v els — dow n tw enty -th re e p oin ts o n th e D ow -
Jo nes a v era ge. (A t its n ad ir, th e a v era ge re ached 5 53.7 5— a sa fe d is ta nce a b ove th e 5 00 th at th e
exp erts no w cla im w as th eir esti m ate of th e ab so lu te botto m .) T hen th ey ab ru p tl y began an
extr a o rd in arily v ig o ro us r e co very . A t 1 2:4 5, b y w hic h ti m e th e r e co very h ad b eco m e a m ad s c ra m ble
to b uy, th e ta p e w as f ifty -s ix m in ute s l a te ; th ere fo re , a p art f r o m f le eti n g i n ti m ati o ns s u p plie d b y a f e w
“fla sh ” p ric es, th e ti c ker w as e ngaged i n i n fo rm in g th e s to ck-m ark et c o m munity o f a s e llin g p anic a t a
mom ent w hen w hat w as a ctu ally i n p ro gre ss w as a b uyin g p anic .
TH E
g re at tu rn aro und la te in th e m orn in g to ok p la ce in a m anner th at w ould h av e a p peale d to d e la
Vega’s ro m anti c natu re — su d denly and ra th er m elo dra m ati c ally . The key sto ck in v olv ed w as
Americ an T ele p ho ne & T ele gra p h, w hic h, j u st a s o n th e p re v io us d ay, w as b ein g u niv ers a lly w atc hed
and w as u nm is ta kab ly in flu encin g th e w ho le m ark et. T he k ey m an, b y th e n atu re o f h is jo b, w as
Geo rg e M . L . L a B ra nche, J r., s e nio r p artn er i n L a B ra nche a nd W ood & C o., th e f ir m th at w as a cti n g
as flo or sp ecia lis t
in T ele p ho ne. (F lo or sp ecia lis ts are b ro ker-d eale rs w ho are re sp onsib le fo r
main ta in in g o rd erly m ark ets in th e p arti c ula r s to cks w ith w hic h th ey a re c harg ed . In th e c o urs e o f
meeti n g th eir r e sp onsib iliti e s, th ey o fte n h av e th e c urio us d uty o f ta kin g r is k s w ith th eir o w n m oney
again st th eir ow n bette r ju d gm ent. V ario us auth o riti e s, se ekin g to re d uce th e ele m ent of hum an
fa llib ility in th e m ark et, h av e la te ly b een tr y in g to fig ure o ut a w ay to re p la ce th e s p ecia lis ts w ith machin es, b ut so fa r w ith o ut su ccess. O ne b ig stu m blin g b lo ck se em s to b e th e q uesti o n: If th e
mechanic al s p ecia lis ts s h o uld lo se th eir s h ir ts , w ho w ould p ay th eir lo sse s? ) L a B ra nche, a t s ix ty -
fo ur, w as a s h o rt, s h arp -fe atu re d , d ap per, p ep pery m an w ho w as f o nd o f s p orti n g o ne o f th e E xchange
flo or’s c o m para ti v ely f e w P hi B eta K ap pa k eys; h e h ad b een a s p ecia lis t s in ce 1 924, a nd h is f ir m h ad
been th e sp ecia lis t in T ele p ho ne sin ce la te in 1 929. H is chara cte ris ti c hab ita t— in d eed , th e sp ot
where h e s p ent s o m e fiv e a nd a h alf h o urs a lm ost e v ery w eekd ay o f h is life — was im med ia te ly in
fr o nt o f P ost 1 5, i n th e p art o f th e E xchange th at i s n o t r e ad ily v is ib le f r o m th e v is ito rs ’ g alle ry a nd i s
co m monly c alle d th e G ara ge; th ere , f e et p la nte d f ir m ly a p art to f e nd o ff a ny s u d den s u rg es o f w ould -
be buyers or se lle rs , he custo m arily sto od w ith pencil pois e d in a th o ughtf u l w ay over an
unp re p osse ssin g l o ose -le af l e d ger, i n w hic h h e k ep t a r e co rd o f a ll o uts ta nd in g o rd ers to b uy a nd s e ll
Tele p ho ne s to ck a t v ario us p ric e le v els . N ot s u rp ris in gly , th e le d ger w as k no w n a s th e T ele p ho ne
book. L a B ra nche had , of co urs e , been at th e cente r of th e excite m ent all day M ond ay, w hen
Tele p ho ne w as l e ad in g th e m ark et d ow nw ard . A s s p ecia lis t, h e h ad b een r o llin g w ith th e p unch l ik e a
fig hte r— or to a d opt h is o w n m ore p ic tu re sq ue m eta p ho r, b obbin g lik e a c o rk o n o cean c o m bers .
“T ele p ho ne i s k in d o f l ik e th e s e a,” L a B ra nche s a id l a te r. “ G enera lly , i t i s c alm a nd k in d ly . T hen a ll
of a s u d den a g re at w in d c o m es a nd w hip s u p a g ia nt w av e. T he w av e s w eep s o ver a nd d elu ges
ev ery b ody; th en it s u cks b ack a gain . Y ou h av e to g iv e w ith it. Y ou c an’t fig ht it, a ny m ore th an K in g
Canute c o uld .” O n T uesd ay m orn in g, a fte r M ond ay’s d re nchin g e le v en-p oin t d ro p, th e g re at w av e
was s ti ll r o llin g; th e s h eer c le ric al ta sk o f s o rti n g a nd m atc hin g th e o rd ers th at h ad c o m e i n o vern ig ht
—no t to m enti o n fin d in g a S to ck E xchange o ffic ia l a nd o bta in in g h is p erm is sio n— to ok s o lo ng th at
th e fir s t
tr a d e in T ele p ho ne c o uld n o t b e m ad e u nti l a lm ost a n h o ur a fte r th e E xchange’s o penin g.
When T ele p ho ne d id e nte r th e l is ts , a t o ne m in ute b efo re e le v en, i ts p ric e w as 9 8½ — dow n 2 ⅛ f r o m
Mond ay’s c lo sin g. O ver th e n ext th re e-q uarte rs o f a n h o ur o r s o , w hile th e f in ancia l w orld w atc hed i t
th e w ay a s e a c ap ta in m ig ht w atc h th e b aro m ete r in a h urric ane, T ele p ho ne flu ctu ate d b etw een 9 9,
whic h i t r e ached o n m om enta ry m in o r r a llie s, a nd 9 8⅛ , w hic h p ro ved to b e i ts b otto m . I t to uched th e
lo w er f ig ure o n th re e s e p ara te o ccasio ns, w ith r a llie s b etw een— a f a ct th at L a B ra nche h as s p oken o f
as if it h ad a m agic al o r m ysti c al s ig nific ance. A nd p erh ap s it h ad ; a t a ny ra te , a fte r th e th ir d d ip
buyers o f T ele p ho ne b egan to tu rn u p a t P ost 1 5, s p ars e a nd ti m id a t fir s t, th en m ore n um ero us a nd
aggre ssiv e. A t 1 1 :4 5, th e s to ck s o ld a t 9 8¾ ; a f e w m in ute s l a te r, a t 9 9; a t 1 1 :5 0, a t 9 9⅜ ; a nd f in ally ,
at 1 1:5 5, i t s o ld a t 1 00.
Many c o m menta to rs h av e e xp re sse d th e o pin io n th at th at f ir s t s a le o f T ele p ho ne a t 1 00 m ark ed th e
exact p oin t a t w hic h th e w ho le m ark et c hanged d ir e cti o n. S in ce T ele p ho ne is a m ong th e s to cks o n
whic h th e ti c ker g iv es fla sh es d urin g p erio ds o f ta p e d ela y, th e fin ancia l c o m munity le arn ed o f th e
tr a nsa cti o n a lm ost i m med ia te ly , a nd a t a ti m e w hen e v ery th in g e ls e i t w as h earin g w as v ery b ad n ew s
in d eed ; th e th eo ry g o es th at th e h ard fa ct o f T ele p ho ne’s re co very o f a lm ost tw o p oin ts w ork ed
to geth er w ith a p ure ly fo rtu ito us c ir c um sta nce— th e p sy cho lo gic al im pact o f th e g o od, r o und n um ber
100— to ti p th e s c ale s. L a B ra nche, w hile a gre ein g th at th e r is e o f T ele p ho ne d id a l o t to b rin g a b out
th e g enera l u p tu rn , d iffe rs a s to p re cis e ly w hic h tr a nsa cti o n w as th e c ru cia l o ne. T o h im , th e f ir s t s a le
at 1 00 w as in su ffic ie nt p ro of o f la sti n g r e co very , b ecause it in v olv ed o nly a s m all n um ber o f s h are s
(a h und re d , a s fa r a s h e r e m em bers ). H e k new th at in h is b ook h e h ad o rd ers to s e ll a lm ost tw enty
th o usa nd s h are s o f T ele p ho ne a t 1 00. I f th e d em and f o r s h are s a t th at p ric e w ere to r u n o ut b efo re th is
tw o-m illio n-d olla r s u p ply w as e xhauste d , th en th e p ric e o f T ele p ho ne w ould d ro p a gain , p ossib ly
go in g a s l o w a s 9 8⅛ f o r a f o urth ti m e. A nd a m an l ik e L a B ra nche, g iv en to th in kin g i n n auti c al te rm s,
may h av e a sso cia te d a c erta in f in ality w ith th e n o ti o n o f g o in g d ow n f o r a f o urth ti m e.
It d id n o t h ap pen. S ev era l s m all tr a nsa cti o ns a t 1 00 w ere m ad e
in r a p id s u ccessio n, fo llo w ed b y se v era l m ore , i n v olv in g l a rg er v olu m e. A lto geth er, a b out h alf th e s u p ply o f th e s to ck a t th at p ric e w as
go ne w hen J o hn J . C ra nle y, flo or p artn er o f D re yfu s & C o., m oved u no btr u siv ely in to th e c ro w d a t
Post 1 5 a nd b id 1 00 fo r te n th o usa nd s h are s o f T ele p ho ne— ju st e no ugh to c le ar o ut th e s u p ply a nd
th us p av e th e w ay f o r a f u rth er r is e . C ra nle y d id n o t s a y w heth er h e w as b id din g o n b ehalf o f h is f ir m ,
one o f its c usto m ers , o r th e D re yfu s F und , a m utu al fu nd th at D re yfu s & C o. m anaged th ro ugh o ne o f
its s u b sid ia rie s; th e s iz e o f th e o rd er s u ggests th at th e p rin cip al w as th e D re yfu s F und . I n a ny c ase , L a
Bra nche need ed o nly to sa y “S old ,” and as so on as th e tw o m en had m ad e no ta ti o ns o f it, th e
tr a nsa cti o n w as c o m ple te d . W here -u p on T ele p ho ne c o uld n o l o nger b e b ought f o r 1 00.
There is his to ric al pre ced ent (th o ugh no t fr o m de la V ega’s day) fo r th e sin gle la rg e S to ck
Exchange tr a nsa cti o n th at tu rn s th e m ark et, o r is in te nd ed to tu rn it. A t h alf p ast o ne o n O cto ber 2 4,
1929— th e dre ad fu l day th at has go ne dow n in fin ancia l his to ry as B la ck T hurs d ay— Ric hard
Whitn ey, th en a cti n g p re sid ent o f th e E xchange a nd p ro bab ly th e b est- k no w n f ig ure o n i ts f lo or, s tr o de
co nsp ic uo usly (s o m e s a y “ ja unti ly ”) u p to th e p ost w here U .S . S te el w as tr a d ed , a nd b id 2 05, th e
pric e o f th e l a st s a le , f o r te n th o usa nd s h are s. B ut th ere a re tw o c ru cia l d iffe re nces b etw een th e 1 929
tr a d e a nd th e 1 962 o ne. In th e fir s t p la ce, W hitn ey’s s ta gy b id w as a c alc ula te d e ffo rt to c re ate a n
effe ct, w hile C ra nle y’s , d eliv ere d w ith o ut f a nfa re , w as a p pare ntl y j u st a m ove to g et a b arg ain f o r th e
Dre yfu s F und . S eco nd ly , o nly a n e v anesc ent ra lly fo llo w ed th e 1 929 d eal— th e n ext w eek’s lo sse s
mad e B la ck T hurs d ay l o ok n o w ors e th an g ra y— while a g enuin ely s o lid r e co very f o llo w ed th e o ne i n
1962. T he m ora l m ay b e th at p sy cho lo gic al g estu re s o n th e E xchange a re m ost e ffe cti v e w hen th ey a re
neith er in te nd ed n o r r e ally n eed ed . A t a ll e v ents , a g enera l r a lly b egan a lm ost im med ia te ly . H av in g
bro ken th ro ugh th e 1 00 b arrie r, T ele p ho ne l e ap ed w ild ly u p w ard : a t 1 2:1 8, i t w as tr a d ed a t 1 01¼ ; a t
12:4 1, a t 1 03½ ; a nd a t 1 :0 5, a t 1 06¼ . G enera l M oto rs w ent fr o m 4 5½ a t 1 1 :4 6 to 5 0 a t 1 :3 8.
Sta nd ard O il o f N ew J e rs e y w ent fr o m 4 6¾ a t 1 1 :4 6 to 5 1 a t 1 :2 8. U .S . S te el w ent fr o m 4 9½ a t
11 :4 0 to 5 2⅜ a t 1 :2 8. I .B .M . w as, i n i ts w ay,
th e m ost d ra m ati c c ase o f th e l o t. A ll m orn in g, i ts s to ck
had b een k ep t o ut o f tr a d in g b y a n o verw helm in g p re p ond era nce o f s e llin g o rd ers , a nd th e g uesse s a s
to i ts u lti m ate o penin g p ric e v arie d f r o m a l o ss o f te n p oin ts to a l o ss o f tw enty o r th ir ty ; n o w s u ch a n
av ala nche o f b uyin g o rd ers a p peare d th at w hen it w as a t la st te chnic ally p ossib le fo r th e s to ck to b e
tr a d ed , j u st b efo re tw o o ’c lo ck, i t o pened
up
f o ur p oin ts , o n a h uge b lo ck o f th ir ty th o usa nd s h are s. A t
12:2 8, le ss th an h alf a n h o ur a fte r th e b ig T ele p ho ne tr a d e, th e D ow -J o nes n ew s s e rv ic e w as s u re
eno ugh o f w hat w as h ap penin g to s ta te f la tl y , “ T he m ark et h as tu rn ed s tr o ng.”
And so it h ad , b ut th e sp eed o f th e tu rn aro und p ro duced m ore ir o ny. W hen th e b ro ad ta p e h as
occasio n to tr a nsm it an exte nd ed new s ite m , su ch as a re p ort o n a p ro m in ent m an’s sp eech, it
custo m arily b re aks th e ite m up in to a se rie s o f sh o rt se cti o ns, w hic h can th en b e tr a nsm itte d at
in te rv als , le av in g ti m e in th e in te rs ti c es fo r s u ch s p ot n ew s a s th e la te st p ric es fr o m th e E xchange
flo or. T his w as w hat it d id d urin g th e e arly a fte rn o on o f M ay 2 9th w ith a s p eech d eliv ere d to th e
Nati o nal P re ss C lu b b y H . L ad d P lu m le y, p re sid ent o f th e U nite d S ta te s C ham ber o f C om merc e,
whic h b egan to b e r e p orte d o n th e D ow -J o nes ta p e a t 1 2:2 5, o r a t a lm ost e xactl y th e s a m e ti m e th at
th e s a m e n ew s s o urc e d ecla re d th e m ark et to h av e tu rn ed s tr o ng. A s th e s p eech c am e o ut in s e cti o ns
on th e b ro ad ta p e, it c re ate d a n o dd e ffe ct in d eed . T he ta p e s ta rte d o ff b y s a yin g th at P lu m le y h ad
calle d fo r “ a th o ughtf u l a p pre cia ti o n o f th e p re se nt la ck o f b usin ess c o nfid ence.” A t th is p oin t, th ere
was a n i n te rru p ti o n f o r a f e w m in ute s’ w orth o f s to ck p ric es, a ll o f th em s h arp ly h ig her. T hen th e ta p e
re tu rn ed to P lu m le y, w ho w as n o w w arm in g to h is ta sk a nd b la m in g th e s to ck-m ark et p lu nge o n “ th e
co in cid enta l im pact of tw o co nfid ence-u p se tti n g fa cto rs — a dim min g of pro fit exp ecta ti o ns and
Pre sid ent K enned y’s q uash in g o f th e s te el p ric e in cre ase .” T hen c am e a lo nger in te rru p ti o n, c ho ck-
fu ll o f r e assu rin g f a cts a nd f ig ure s. A t i ts c o nclu sio n, P lu m le y w as b ack o n th e ta p e, h am merin g a w ay at h is th em e, w hic h h ad n o w ta ken o n o verto nes o f “ I to ld y o u so .” “ W e h av e h ad a n a w eso m e
dem onstr a ti o n th at th e ‘ rig ht b usin ess c lim ate ’ c anno t b e b ru sh ed o ff a s a M ad is o n A venue c lic hé b ut
is a re ality m uch to b e d esir e d ,” th e b ro ad ta p e q uo te d h im a s s a yin g. S o it w ent th ro ugh th e e arly
afte rn o on; it m ust h av e b een a h ead y ti m e fo r th e D ow -J o nes su b sc rib ers , w ho c o uld a lte rn ate ly
nib ble a t th e c av ia r o f h ig her s to ck p ric es a nd s ip th e c ham pagne o f P lu m le y’s ja b s a t th e K enned y
ad m in is tr a ti o n.
IT
w as d urin g th e l a st h o ur a nd a h alf o n T uesd ay th at th e p ace o f tr a d in g o n th e E xchange r e ached i ts
most fr a nti c . T he o ffic ia l c o unt o f tr a d es r e co rd ed a fte r th re e o ’c lo ck ( th at is , in th e la st h alf h o ur)
cam e to j u st o ver s e v en m illio n s h are s— in n o rm al ti m es a s th ey w ere r e cko ned i n 1 962, a n u nheard -
of f ig ure e v en f o r a w ho le d ay’s tr a d in g. W hen th e c lo sin g b ell s o und ed , a c heer a gain a ro se f r o m th e
flo or— th is o ne a g o od d eal m ore f u ll- th ro ate d th an M ond ay’s , b ecause th e d ay’s g ain o f 2 7.0 3 p oin ts
in th e D ow -J o nes a v era ge m eant th at a lm ost th re e-q uarte rs o f M ond ay’s l o sse s h ad b een r e co up ed ; o f
th e $ 20,8 00,0 00,0 00 th at h ad s u m marily v anis h ed o n M ond ay, $ 13,5 00,0 00,0 00 h ad n o w r e ap peare d .
(T hese h eart- w arm in g f ig ure s w ere n’t a v aila b le u nti l h o urs a fte r th e c lo se , b ut e xp erie nced s e curiti e s
men a re v ouchsa fe d v is c era l in tu iti o ns o f s u rp ris in g s ta ti s ti c al a ccura cy; s o m e o f th em c la im th at a t
Tuesd ay’s c lo sin g th ey c o uld f e el i n th eir g uts a D ow -J o nes g ain o f o ver tw enty -fiv e p oin ts , a nd th ere
is n o r e aso n to d is p ute th eir c la im .) T he m ood w as c heerfu l, th en, b ut th e h o urs w ere l o ng. B ecause o f
th e g re ate r tr a d in g v olu m e, ti c kers ti c ked a nd l ig hts b urn ed e v en f a rth er i n to th e n ig ht th an th ey h ad o n
Mond ay; th e E xchange ta p e d id n o t p rin t th e d ay’s l a st tr a nsa cti o n u nti l 8 :1 5— fo ur a nd th re e-q uarte rs
ho urs a fte r i t h ad a ctu ally o ccurre d . N or d id th e n ext d ay, M em oria l D ay, tu rn o ut to b e a d ay o ff f o r
th e s e curiti e s b usin ess. W is e o ld W all S tr e ete rs h ad e xp re sse d th e o pin io n th at th e h o lid ay, f a llin g b y
hap py chance in th e m id dle of th e cris is and th us pro vid in g an opportu nity fo r th e co olin g of
overh eate d e m oti o ns, m ay h av e b een th e b ig gest fa cto r in p re v enti n g th e c ris is fr o m b eco m in g a
dis a ste r. W hat it in d ub ita b ly d id p ro vid e w as a chance fo r th e S to ck E xchange and its m em ber
org aniz a ti o ns— all o f w ho m h ad b een d ir e cte d to r e m ain a t th eir b attl e s ta ti o ns o ver th e h o lid ay— to
begin p ic kin g u p th e p ie ces.
The in sid io us e ffe cts o f a la te ta p e h ad to b e e xp la in ed to th o usa nd s o f n aïv e c usto m ers w ho
th o ught th ey h ad b ought U .S . S te el a t, s a y, 5 0, o nly to fin d la te r th at th ey h ad p aid 5 4 o r 5 5. T he
co m pla in ts o f th o usa nd s o f o th er c usto m ers c o uld n o t b e s o e asily a nsw ere d . O ne b ro kera ge h o use
dis c o vere d th at tw o o rd ers i t h ad s e nt to th e f lo or a t p re cis e ly th e s a m e ti m e— one to b uy T ele p ho ne
at th e p re v ailin g p ric e, th e o th er to s e ll th e s a m e q uanti ty a t th e p re v ailin g p ric e— had r e su lte d i n th e
se lle r’s g etti n g 1 02 p er s h are fo r h is s to ck a nd th e b uyer’s p ayin g 1 08 fo r h is . B ad ly s h aken b y a
situ ati o n th at s e em ed to c ast d oub t o n th e v alid ity o f th e la w o f s u p ply a nd d em and , th e b ro kera ge
ho use m ad e in q uir ie s a nd fo und th at th e b uyin g o rd er h ad g o t te m pora rily lo st in th e c ru sh a nd h ad
fa ile d to re ach P ost 1 5 u nti l th e p ric e h ad g o ne u p s ix p oin ts . S in ce th e m is ta ke h ad n o t b een th e
custo m er’s , th e b ro kera ge fir m p aid h im th e d iffe re nce. A s fo r th e S to ck E xchange its e lf, it h ad a
varie ty o f p ro ble m s to d eal w ith o n W ed nesd ay, am ong th em th at o f keep in g hap py a te am o f
te le v is io n m en fr o m th e C anad ia n B ro ad casti n g C orp ora ti o n w ho , hav in g fo rg o tte n all ab out th e
Unite d S ta te s c usto m o f o bse rv in g a h o lid ay o n M ay 3 0th , h ad flo w n d ow n fr o m M ontr e al to ta ke
pic tu re s of W ed nesd ay’s acti o n on th e E xchange. A t th e sa m e ti m e, E xchange offic ia ls w ere
necessa rily p ond erin g th e p ro ble m o f M ond ay’s a nd T uesd ay’s s c and alo usly la ggard ti c ker, w hic h
ev ery o ne agre ed had been at th e very heart of— if no t, in d eed , th e cause of— th e m ost nearly
cata str o phic te chnic al sn arl in h is to ry . T he E xchange’s d efe nse o f its e lf, la te r se t d ow n in d eta il,
am ounts , in e ffe ct, to a c o m pla in t th at th e c ris is c am e tw o y ears to o s o on. “ It w ould b e in accura te to su ggest th at a ll in v esto rs w ere s e rv ed w ith n o rm al s p eed a nd e ffic ie ncy b y e xis ti n g fa ciliti e s,” th e
Exchange c o nced ed , w ith c hara cte ris ti c c o nse rv ati s m , a nd w ent o n to s a y th at a ti c ker w ith a lm ost
tw ic e th e s p eed o f th e p re se nt o ne w as e xp ecte d to b e r e ad y f o r i n sta lla ti o n i n 1 964. ( In f a ct, th e n ew
ti c ker a nd v ario us o th er a uto m ati o n d ev ic es, d uly in sta lle d m ore o r le ss o n ti m e, p ro ved to b e s o
hero ic ally e ffe cti v e th at th e fa nta sti c tr a d in g p ace o f A pril, 1 968 w as h and le d w ith o nly n eglig ib le
ta p e d ela ys.) T he fa ct th at th e 1 962 hurric ane hit w hile th e sh elte r w as und er co nstr u cti o n w as
chara cte riz e d b y th e E xchange a s “ p erh ap s i r o nic .”
There w as s ti ll p le nty o f c ause fo r c o ncern o n T hurs d ay m orn in g
. A fte r a p erio d o f p anic s e llin g,
th e m ark et h as a h ab it o f b ouncin g b ack d ra m ati c ally a nd th en re su m in g its slid e. M ore th an o ne
bro ker re calle d th at o n O cto ber 3 0, 1 929— im med ia te ly a fte r th e a ll- ti m e-re co rd tw o-d ay d eclin e,
and im med ia te ly b efo re th e sta rt o f th e tr u ly d is a str o us slid e th at w as to c o nti n ue fo r y ears a nd
pre cip ita te th e gre at dep re ssio n— th e D ow -J o nes gain had been 28.4 0, re p re se nti n g a re b ound
om in o usly c o m para b le to th is o ne. In o th er w ord s, th e m ark et s ti ll s u ffe rs a t ti m es fr o m w hat d e la
Vega c lin ic ally c alle d “ anti p eris ta sis ” — th e te nd ency to r e v ers e its e lf, th en r e v ers e th e r e v ers a l, a nd
so o n. A fo llo w er o f th e a nti p eris ta sis sy ste m o f se curity a naly sis m ig ht h av e c o nclu d ed th at th e
mark et w as n o w p ois e d fo r a no th er d iv e. A s th in gs tu rn ed o ut, o f c o urs e , it w asn ’t. T hurs d ay w as a
day o f s te ad y, o rd erly ris e s in s to ck p ric es. M in ute s a fte r th e te n-o ’c lo ck o penin g, th e b ro ad ta p e
sp re ad th e n ew s th at b ro kers e v ery w here w ere b ein g d elu ged w ith b uyin g o rd ers , m any o f th em
co m in g f r o m S outh A meric a, A sia , a nd th e W este rn E uro pean c o untr ie s th at a re n o rm ally a cti v e i n th e
New Y ork sto ck m ark et. “ O rd ers sti ll p ourin g in fr o m a ll d ir e cti o ns,” th e b ro ad ta p e a nno unced
exulta ntl y ju st b efo re e le v en. L ost m oney w as m agic ally re ap pearin g, a nd m ore w as o n th e w ay.
Sho rtl y b efo re tw o o ’c lo ck, th e D ow -J o nes ta p e, h av in g p ro ceed ed fr o m e up ho ria to in so ucia nce,
to ok ti m e o ff fr o m m ark et re p orts to in clu d e a n o te o n p la ns fo r a b oxin g m atc h b etw een F lo yd
Patte rs o n a nd S onny L is to n. M ark ets in E uro pe, r e acti n g to N ew Y ork o n th e u p tu rn ju st a s th ey h ad
on th e d ow ntu rn , h ad r is e n s h arp ly . N ew Y ork c o pper fu tu re s h ad r e co vere d o ver e ig hty p er c ent o f
th eir M ond ay a nd T uesd ay-m orn in g lo sse s, so C hile ’s tr e asu ry w as m ostl y b aile d o ut. A s fo r th e
Dow -J o nes i n d ustr ia l a v era ge a t c lo sin g, i t f ig ure d o ut to 6 13.3 6, m eanin g th at th e w eek’s l o sse s h ad
been w ip ed o ut
in t o to
, w ith a littl e b it to s p are . T he c ris is w as o ver. In M org an’s te rm s, th e m ark et
had f lu ctu ate d ; i n d e l a V ega’s te rm s, a nti p eris ta sis h ad b een d em onstr a te d .
ALL
th at s u m mer, a nd e v en in to th e fo llo w in g y ear, s e curity a naly sts a nd o th er e xp erts c ra nked o ut
th eir e xp la nati o ns o f w hat h ad h ap pened , a nd s o g re at w ere th e lo gic , s o le m nity , a nd d eta il
o f th ese
dia gno se s th at th ey lo st o nly a littl e o f th eir fo rc e th ro ugh th e fa ct th at h ard ly a ny o f th e a uth o rs h ad
had th e slig hte st id ea w hat w as
goin g
to hap pen b efo re th e cris is o ccurre d . P ro bab ly th e m ost
sc ho la rly a nd d eta ile d r e p ort o n w ho d id th e s e llin g th at c ause d th e c ris is w as f u rn is h ed b y th e N ew
York S to ck E xchange its e lf, w hic h b egan se nd in g ela b ora te q uesti o nnair e s to its in d iv id ual and
co rp ora te m em bers im med ia te ly a fte r th e c o m moti o n w as o ver. T he E xchange c alc ula te d th at d urin g
th e th re e d ays o f th e cris is ru ra l are as o f th e co untr y w ere m ore acti v e in th e m ark et th an th ey
custo m arily a re ; th at w om en i n v esto rs h ad s o ld tw o a nd a h alf ti m es a s m uch s to ck a s m en i n v esto rs ;
th at f o re ig n i n v esto rs w ere f a r m ore a cti v e th an u su al, a cco unti n g f o r 5 .5 p er c ent o f th e to ta l v olu m e,
and , o n b ala nce, w ere su b sta nti a l se lle rs ; a nd , m ost str ik in g o f a ll, th at w hat th e E xchange c alls
“p ub lic in d iv id uals ” — in d iv id ual in v esto rs , a s o ppose d to in sti tu ti o nal o nes, w hic h is to s a y p eo ple
who w ould be desc rib ed anyw here but on W all Str e et as
priv a te
in d iv id uals — pla yed an
asto nis h in gly l a rg e r o le i n th e w ho le a ffa ir, a cco unti n g f o r a n u np re ced ente d 5 6.8 p er c ent o f th e to ta l
volu m e. B re akin g d ow n th e p ub lic in d iv id uals in to in co m e c ate go rie s, th e E xchange c alc ula te d th at th o se w ith fa m ily in co m es o f o ver tw enty -fiv e th o usa nd d olla rs a y ear w ere th e h eav ie st a nd m ost
in sis te nt s e lle rs , w hile th o se w ith in co m es u nd er te n th o usa nd d olla rs , a fte r s e llin g o n M ond ay a nd
early o n T uesd ay, b ought s o m any s h are s o n T hurs d ay th at th ey a ctu ally b ecam e n et b uyers o ver th e
th re e-d ay p erio d. F urth erm ore , a cco rd in g to th e E xchange’s c alc ula ti o ns, a b out a m illio n s h are s— or
3.5 p er c ent o f th e to ta l v olu m e d urin g th e th re e d ays— were s o ld a s a r e su lt o f m arg in c alls . I n s u m , i f
th ere w as a v illa in , it a p peare d to h av e b een th e re la ti v ely ric h in v esto r n o t c o nnecte d w ith th e
se curiti e s b usin ess— and , m ore o fte n th an m ig ht h av e b een e xp ecte d , th e f e m ale , r u ra l, o r f o re ig n o ne,
in m any c ase s p la yin g th e m ark et p artl y o n b orro w ed m oney.
The r o le o f th e h ero w as f ille d , s u rp ris in gly , b y th e m ost f r ig hte nin g o f u nte ste d f o rc es i n th e m ark et
—th e m utu al fu nd s. T he E xchange’s s ta ti s ti c s s h o w ed th at o n M ond ay, w hen p ric es w ere p lu ngin g,
th e fu nd s b ought 5 30,0 00 m ore s h are s th an th ey s o ld , w hile o n T hurs d ay, w hen in v esto rs in g enera l
were s tu m blin g
o ver e ach o th er tr y in g to b uy s to ck, th e fu nd s, o n b ala nce,
so ld
3 75,0 00 s h are s; in
oth er w ord s, fa r fr o m in cre asin g th e m ark et’ s flu ctu ati o n, th e fu nd s a ctu ally s e rv ed a s a s ta b iliz in g
fo rc e. E xactl y h o w th is u nexp ecte d ly b enig n e ffe ct c am e a b out r e m ain s a m atte r o f d eb ate . S in ce n o
one h as b een h eard to s u ggest th at th e f u nd s a cte d o ut o f s h eer p ub lic -s p ir ite d ness d urin g th e c ris is , i t
se em s s a fe to a ssu m e th at th ey w ere b uyin g o n M ond ay b ecause th eir m anagers h ad s p otte d b arg ain s,
and w ere se llin g o n T hurs d ay b ecause o f chances to cash in o n p ro fits . A s fo r th e p ro ble m o f
re d em pti o ns, th ere w ere , as had b een fe are d , a la rg e num ber o f m utu al- fu nd sh are ho ld ers w ho
dem and ed m illio ns o f d olla rs o f th eir m oney in c ash w hen th e m ark et c ra sh ed , b ut a p pare ntl y th e
mutu al fu nd s h ad so m uch c ash o n h and th at in m ost c ase s th ey c o uld p ay o ff th eir sh are ho ld ers
with o ut s e llin g s u b sta nti a l a m ounts o f s to ck. T aken a s a g ro up , th e f u nd s p ro ved to b e s o r ic h a nd s o
co nse rv ati v ely m anaged th at th ey n o t o nly c o uld w eath er th e s to rm b ut, b y h ap py i n ad verte nce, c o uld
do s o m eth in g to d ecre ase i ts v io le nce. W heth er th e s a m e c o nd iti o ns w ould e xis t i n s o m e f u tu re s to rm
was a nd i s a no th er m atte r.
In th e la st a naly sis , th e c ause o f th e 1 962 c ris is re m ain s u nfa th o m ab le ; w hat is k no w n is th at it
occurre d , a nd th at s o m eth in g l ik e i t c o uld o ccur a gain . A s o ne o f W all S tr e et’ s a ged , e v er-a no nym ous
se ers p ut it r e centl y , “ I w as c o ncern ed , b ut a t n o ti m e d id I th in k it w ould b e a no th er 1 929. I n ev er
sa id th e D ow -J o nes w ould g o d ow n to fo ur h und re d . I s a id
fiv e
h und re d . T he p oin t is th at n o w , in
co ntr a st to 1 929, th e g o vern m ent, R ep ub lic an o r D em ocra ti c , r e aliz e s th at it m ust b e a tte nti v e to th e
need s o f b usin ess. T here w ill nev er b e ap ple -s e lle rs o n W all S tr e et again . A s to w heth er w hat
hap pened th at M ay c an h ap pen a gain — of c o urs e i t c an. I th in k th at p eo ple m ay b e m ore c are fu l f o r a
year o r tw o, a nd th en w e m ay s e e a no th er s p ecula ti v e b uild up fo llo w ed b y a no th er c ra sh , a nd s o o n
unti l G od m akes p eo ple l e ss g re ed y.”
Or, a s d e la V ega s a id , “ It is fo olis h to th in k th at y o u c an w ith d ra w fr o m th e E xchange a fte r y o u
hav e ta ste d th e s w eetn ess o f th e h o ney.” 2
The F ate o f t h e E dse l
RIS E A ND F L O W ER IN G
IN
th e cale nd ar of A meric an eco no m ic life , 1955 w as th e Y ear of th e A uto m obile . T hat year,
Americ an a uto m obile m akers s o ld o ver s e v en m illio n p asse nger c ars , o r o ver a m illio n m ore th an
th ey h ad s o ld in a ny p re v io us y ear. T hat y ear, G enera l M oto rs e asily s o ld th e p ub lic $ 325 m illio n
worth o f n ew c o m mon s to ck, a nd th e s to ck m ark et a s a w ho le , le d b y th e m oto rs , g yra te d u p w ard s o
fr a nti c ally
th at C ongre ss in v esti g ate d it. A nd th at y ear, to o, th e F ord M oto r C om pany d ecid ed to
pro duce a new auto m obile in w hat w as q uain tl y calle d th e m ed iu m -p ric e ra nge— ro ughly , fr o m
$2,4 00 to $ 4,0 00— and w ent a head a nd d esig ned i t m ore o r l e ss i n c o nfo rm ity w ith th e f a sh io n o f th e
day, w hic h w as fo r cars th at w ere lo ng, w id e, lo w , la v is h ly d eco ra te d w ith chro m e, lib era lly
su p plie d w ith g ad gets , a nd e q uip ped w ith e ngin es o f a p ow er j u st b are ly i n su ffic ie nt to s e nd th em i n to
orb it. T w o y ears la te r, in S ep te m ber, 1 957, th e F ord C om pany p ut its n ew c ar, th e E dse l, o n th e
mark et, to th e a cco m panim ent o f m ore f a nfa re th an h ad a tte nd ed th e a rriv al o f a ny o th er n ew c ar s in ce
th e s a m e c o m pany’s M odel A , b ro ught o ut th ir ty y ears e arlie r. T he to ta l a m ount s p ent o n th e E dse l
befo re th e fir s t s p ecim en w ent o n s a le w as a nno unced a s a q uarte r o f a b illio n d olla rs ; its la unchin g
—as
Busin ess W eek
d ecla re d a nd n o body c are d to d eny— was m ore c o stl y th an th at o f a ny o th er
co nsu m er p ro duct i n h is to ry . A s a s ta rte r to w ard g etti n g i ts i n v estm ent b ack, F ord c o unte d o n s e llin g
at l e ast 2 00,0 00 E dse ls th e f ir s t y ear.
There m ay b e a n a b orig in e s o m ew here in a re m ote ra in fo re st w ho h asn ’t y et h eard th at th in gs
fa ile d to tu rn o ut th at w ay. T o b e p re cis e , tw o y ears tw o m onth s a nd f ifte en d ays l a te r F ord h ad s o ld
only 1 09,4 66 E dse ls , a nd , b eyo nd a d oub t, m any h und re d s, if n o t s e v era l th o usa nd s, o f th o se w ere
bought b y F ord e xecuti v es, d eale rs , s a le sm en, a d verti s in g m en, a sse m bly -lin e w ork ers , a nd o th ers
who h ad a p ers o nal in te re st in s e ein g th e c ar s u cceed . T he 1 09,4 66 a m ounte d to c o nsid era b ly le ss
th an o ne p er c ent o f th e p asse nger c ars s o ld i n th e U nite d S ta te s d urin g th at p erio d, a nd o n N ovem ber
19, 1 959, h av in g lo st, a cco rd in g to s o m e o uts id e e sti m ate s, a ro und $ 350 m illio n o n th e E dse l, th e
Ford C om pany p erm anentl y d is c o nti n ued i ts p ro ducti o n.
How co uld th is hav e hap pened ? H ow co uld a co m pany so m ig hti ly end ow ed w ith m oney,
exp erie nce, a nd , p re su m ab ly , b ra in s h av e b een g uilty o f s u ch a m onum enta l m is ta ke? E ven b efo re th e
Edse l w as d ro pped , s o m e o f th e m ore a rti c ula te m em bers o f th e c ar-m in d ed p ub lic h ad c o m e f o rw ard
with a n a nsw er— an a nsw er s o s im ple a nd s o s e em in gly r e aso nab le th at, th o ugh it w as n o t th e o nly
one a d vanced , i t b ecam e w id ely a ccep te d a s th e
tr u th . T he E dse l, th ese p eo ple a rg ued , w as d esig ned ,
nam ed , a d verti s e d , a nd p ro m ote d w ith a s la v is h a d here nce to th e r e su lts o f p ub lic -o pin io n p olls a nd
of th eir y o unger c o usin , m oti v ati o nal r e se arc h, a nd th ey c o nclu d ed th at w hen th e p ub lic is w ooed in
an excessiv ely calc ula te d m anner, it te nd s to tu rn aw ay in fa v or of so m e gru ffe r but m ore sp onta neo usly a tte nti v e s u ito r. S ev era l y ears a go , in th e fa ce o f a n u nd ers ta nd ab le re ti c ence o n th e
part o f th e F ord M oto r C om pany, w hic h e njo ys d ocum enti n g i ts b oners n o m ore th an a nyo ne e ls e , I s e t
out to le arn w hat I c o uld a b out th e E dse l d eb acle , a nd m y in v esti g ati o ns h av e le d m e to b elie v e th at
what w e h av e h ere i s l e ss th an th e w ho le tr u th .
For, a lth o ugh th e E dse l w as
su ppose d
to b e a d verti s e d , a nd o th erw is e p ro m ote d , s tr ic tl y o n th e
basis o f p re fe re nces exp re sse d in p olls , so m e o ld -fa sh io ned sn ake-o il- s e llin g m eth o ds, in tu iti v e
ra th er th an s c ie nti fic , c re p t in . A lth o ugh it w as
su ppose d
to h av e b een n am ed in m uch th e s a m e w ay,
sc ie nce w as curtl y d is c ard ed at th e la st m in ute and th e E dse l w as nam ed fo r th e fa th er o f th e
co m pany’s p re sid ent, lik e a nin ete enth -c entu ry b ra nd o f co ugh d ro ps o r sa d dle so ap . A s fo r th e
desig n, it w as a rriv ed a t w ith o ut e v en a p re te nse o f c o nsu lti n g th e p olls , a nd b y th e m eth o d th at h as
been s ta nd ard f o r y ears i n th e d esig nin g o f a uto m obile s— th at o f s im ply p oolin g th e h unches o f s u nd ry
co m pany c o m mitte es. T he c o m mon e xp la nati o n o f th e E dse l’s d ow nfa ll, th en, u nd er s c ru ti n y, tu rn s o ut
to b e l a rg ely a m yth , i n th e c o llo quia l s e nse o f th at te rm . B ut th e f a cts o f th e c ase m ay l iv e to b eco m e
a m yth o f a s y m bolic s o rt— a m odern A meric an a nti s u ccess s to ry .
TH E
o rig in s o f th e E dse l g o b ack to th e fa ll o f 1 948, s e v en y ears b efo re th e y ear o f d ecis io n, w hen
Henry F ord II, w ho h ad b een p re sid ent a nd u nd is p ute d b oss o f th e c o m pany s in ce th e d eath o f h is
gra nd fa th er, th e o rig in al H enry , a year earlie r, p ro pose d to th e co m pany’s executi v e co m mitte e,
whic h i n clu d ed E rn est R . B re ech, th e e xecuti v e v ic e-p re sid ent, th at s tu d ie s b e u nd erta ken c o ncern in g
th e w is d om o f p utti n g o n th e m ark et a n ew a nd w ho lly d iffe re nt m ed iu m -p ric ed c ar. T he s tu d ie s w ere
und erta ken. T here a p peare d to b e g o od r e aso n f o r th em . I t w as a w ell- k no w n p ra cti c e a t th e ti m e f o r
lo w -in co m e o w ners o f F ord s, P ly m outh s, a nd
C hev ro le ts to tu rn in th eir s y m bols o f in fe rio r c aste a s
so on a s th eir e arn in gs ro se a b ove fiv e th o usa nd d olla rs a y ear, a nd “ tr a d e u p ” to a m ed iu m -p ric ed
car. F ro m F ord ’s p oin t o f v ie w , th is w ould h av e b een a ll w ell a nd g o od e xcep t th at, f o r s o m e r e aso n,
Ford o w ners u su ally tr a d ed u p n o t to M erc ury , th e c o m pany’s o nly m ed iu m -p ric ed c ar, b ut to o ne o r
ano th er o f th e m ed iu m -p ric ed c ars p ut o ut b y its b ig r iv als — Old sm obile , B uic k, a nd P onti a c, a m ong
th e G enera l M oto rs p ro ducts , a nd , to a le sse r e xte nt, D odge a nd D e S oto , th e C hry sle r c and id ate s.
Lew is D . C ru so e, th en a v ic e-p re sid ent o f th e F ord M oto r C om pany, w as n o t o vers ta ti n g th e c ase
when h e s a id , “ W e h av e b een g ro w in g c usto m ers f o r G enera l M oto rs .”
The o utb re ak o f th e K ore an W ar, in 1 950, m eant th at F ord h ad n o c ho ic e b ut to g o o n g ro w in g
custo m ers f o r i ts c o m peti to rs , s in ce i n tr o ducin g a n ew c ar a t s u ch a ti m e w as o ut o f th e q uesti o n. T he
co m pany’s e xecuti v e c o m mitte e p ut a sid e th e s tu d ie s p ro pose d b y P re sid ent F ord , a nd th ere m atte rs
re ste d f o r tw o y ears . L ate i n 1 952, h o w ev er, th e e nd o f th e w ar a p peare d s u ffic ie ntl y i m min ent f o r th e
co m pany to p ic k u p w here it h ad le ft o ff, a nd th e stu d ie s w ere e nerg eti c ally re su m ed b y a g ro up
calle d th e F orw ard P ro duct P la nnin g C om mitte e, w hic h tu rn ed o ver m uch o f th e d eta ile d w ork to th e
Lin co ln -M erc ury D iv is io n, u nd er th e d ir e cti o n o f R ic hard K ra fv e ( p ro no unced K ra ffy ), th e d iv is io n’s
assis ta nt g enera l m anager. K ra fv e, a fo rc efu l, ra th er s a tu rn in e m an w ith a h ab itu ally p uzzle d lo ok,
was th en i n h is m id dle f o rti e s. T he s o n o f a p rin te r o n a s m all f a rm j o urn al i n M in neso ta , h e h ad b een
a s a le s e ngin eer a nd m anagem ent c o nsu lta nt b efo re jo in in g F ord , in 1 947, a nd a lth o ugh h e c o uld n o t
hav e k no w n i t i n 1 952, h e w as to h av e r e aso n to l o ok p uzzle d . A s th e m an d ir e ctl y r e sp onsib le f o r th e
Edse l and its fo rtu nes, enjo yin g its b rie f glo ry and atte nd in g it in its m orta l ago nie s, he had a
re nd ezv ous w ith d esti n y.
IN
D ecem ber, 1 954, a fte r tw o y ears ’ w ork , th e F orw ard P ro duct P la nnin g C om mitte e s u b m itte d to th e
executi v e c o m mitte e a six -v olu m e b lo ckb uste r o f a re p ort su m mariz in g its fin d in gs. S up porte d b y co pio us s ta ti s ti c s, th e r e p ort p re d ic te d th e a rriv al o f th e A meric an m ille nniu m , o r s o m eth in g a l o t l ik e
it, in 1 965. B y th at
ti m e, th e F orw ard P ro duct P la nnin g C om mitte e e sti m ate d , th e g ro ss n ati o nal
pro duct w ould b e $ 535 b illio n a y ear— up m ore th an $ 135 b illio n in a d ecad e. ( A s a m atte r o f fa ct,
th is p art o f th e m ille nniu m a rriv ed m uch s o oner th an th e F orw ard P la nners e sti m ate d . T he G . N . P .
passe d $ 535 b illio n i n 1 962, a nd f o r 1 965 w as $ 681 b illio n.) T he n um ber o f c ars i n o pera ti o n w ould
be s e v enty m illio n— up tw enty m illio n. M ore th an h alf th e f a m ilie s i n th e n ati o n w ould h av e i n co m es
of o ver fiv e th o usa nd d olla rs a y ear, a nd m ore th an 4 0 p erc ent o f a ll th e c ars s o ld w ould b e in th e
med iu m -p ric e r a nge o r b ette r. T he r e p ort’ s p ic tu re o f A meric a in 1 965, p re se nte d in c ru sh in g d eta il,
was o f a c o untr y a fte r D etr o it’ s o w n h eart— its b anks o ozin g m oney, i ts s tr e ets a nd h ig hw ays c ho ked
with h uge, d azzlin g m ed iu m -p ric ed c ars , its n ew ly ric h, “ up w ard ly m obile ” c iti z e ns ra cked w ith
lo ngin gs f o r m ore o f th em . T he m ora l w as c le ar. I f b y th at ti m e F ord h ad n o t c o m e o ut w ith a s e co nd
med iu m -p ric ed c ar— no t ju st a n ew m odel, b ut a n ew m ake— and m ad e it a fa v orite in its fie ld , th e
co m pany w ould m is s o ut o n i ts s h are o f th e n ati o nal b oodle .
On th e o th er h and , th e F ord b osse s w ere w ell a w are o f th e e no rm ous r is k s c o nnecte d w ith p utti n g a
new c ar o n th e m ark et. T hey k new , fo r e xam ple , th at o f th e 2 ,9 00 A meric an m akes th at h ad b een
in tr o duced s in ce th e b egin nin g o f th e A uto m obile A ge— th e B la ck C ro w (1 905), th e A vera gem an’s
Car ( 1 906), th e B ug-m obile ( 1 907), th e D an P atc h ( 1 911 ), a nd th e L one S ta r ( 1 920) a m ong th em —
only a b out tw enty w ere s ti ll a ro und . T hey k new a ll a b out th e a uto m oti v e c asu alti e s th at h ad f o llo w ed
th e S eco nd W orld W ar— am ong th em C ro sle y, w hic h h ad g iv en u p a lto geth er, a nd K ais e r M oto rs ,
whic h, th o ugh sti ll a liv e in 1 954, w as b re ath in g its la st. (T he m em bers o f th e F orw ard P ro duct
Pla nnin g C om mitte e m ust h av e g la nced a t e ach o th er u neasily w hen, a y ear la te r, H enry J . K ais e r
wro te , in a v ale d ic ti o n to his car b usin ess, “W e exp ecte d to to ss fifty m illio n d olla rs in to th e
auto m obile p ond , b ut w e d id n’t e xp ect it to d is a p pear w ith o ut a r ip ple .” ) T he F ord m en a ls o k new
th at n eith er o f th e o th er m em bers o f th e in d ustr y ’s p ow erfu l a nd w ell- h eele d B ig T hre e— Genera l
Moto rs a nd C hry sle r— had v entu re d to b rin g o ut a n ew sta nd ard -s iz e m ake sin ce th e fo rm er’s L a
Salle in 1 927, a nd th e
la tte r’s P ly m outh , in 1 928, a nd th at F ord its e lf h ad n o t a tte m pte d to tu rn th e
tr ic k s in ce 1 938, w hen i t l a unched th e M erc ury .
Nev erth ele ss, th e F ord m en fe lt b ullis h — so r e m ark ab ly b ullis h th at th ey r e so lv ed to to ss in to th e
auto m obile p ond fiv e ti m es th e s u m th at K ais e r h ad . In A pril, 1 955, H enry F ord II, B re ech, a nd th e
oth er m em bers of th e executi v e co m mitte e offic ia lly ap pro ved th e Forw ard Pro duct Pla nnin g
Com mitte e’s fin d in gs, a nd , to im ple m ent th em , se t u p a no th er a gency, c alle d th e S pecia l P ro ducts
Div is io n, w ith th e s ta r-c ro sse d K ra fv e a s its h ead . T hus th e c o m pany g av e its fo rm al s a ncti o n to th e
effo rts o f its d esig ners , w ho , hav in g d iv in ed th e tr e nd o f ev ents , had alr e ad y b een d oodlin g fo r
se v era l m onth s o n p la ns f o r a n ew c ar. S in ce n eith er th ey n o r th e n ew ly o rg aniz e d K ra fv e o utf it, w hen
it to ok o ver, h ad a n in klin g o f w hat th e th in g o n th eir d ra w in g b oard s m ig ht b e c alle d , it b ecam e
kno w n to e v ery b ody a t F ord , a nd e v en i n th e c o m pany’s p re ss r e le ase s, a s th e E -C ar— th e “ E ,” i t w as
exp la in ed , s ta nd in g f o r “ E xp erim enta l.”
The m an d ir e ctl y i n c harg e o f th e E -C ar’s d esig n— or, to u se th e g ru eso m e tr a d e w ord , “ sty lin g”—
was a C anad ia n, th en n o t y et f o rty , n am ed R oy A . B ro w n, w ho , b efo re ta kin g o n th e E -C ar ( a nd a fte r
stu d yin g in d ustr ia l d esig n a t th e D etr o it A rt A cad em y), h ad h ad a h and in th e d esig nin g o f ra d io s,
moto r cru is e rs , co lo re d -g la ss pro ducts , C ad illa cs, O ld sm obile s, and L in co ln s.
* B ro w n re centl y
re calle d h is a sp ir a ti o ns a s h e w ent to w ork o n th e n ew p ro je ct. “ O ur g o al w as to c re ate a v ehic le
whic h w ould b e u niq ue in th e s e nse th at it w ould b e r e ad ily r e co gniz a b le in s ty lin g th em e fr o m th e
nin ete en o th er m akes o f c ars o n th e r o ad a t th at ti m e,” h e w ro te f r o m E ngla nd , w here a t th e ti m e o f h is
writi n g h e w as e m plo yed a s c hie f s ty lis t fo r th e F ord M oto r C om pany, L td ., m anufa ctu re rs o f tr u cks, tr a cto rs , a nd s m all c ars . “ W e w ent to th e e xte nt o f m akin g p ho to gra p hic s tu d ie s f r o m s o m e d is ta nce o f
all n in ete en o f th ese c ars , a nd i t b ecam e o bvio us th at a t a d is ta nce o f a f e w h und re d f e et th e s im ila rity
was s o g re at th at i t w as p ra cti c ally i m possib le to d is ti n guis h o ne m ake f r o m th e o th ers .… T hey w ere
all ‘ p eas i n a p od.’ W e d ecid ed to s e le ct [ a s ty le th at] w ould b e ‘ n ew ’ i n th e s e nse th at i t w as u niq ue,
and y et a t th e s a m e ti m e b e f a m ilia r.”
While th e E-C ar w as on th e dra w in g board s in Ford ’s sty lin g stu d io — situ ate d , lik e its
ad m in is tr a ti v e offic es, in th e co m pany’s baro ny of D earb orn , ju st outs id e D etr o it— work on it
pro gre sse d u nd er th e c o nd iti o ns o f m elo dra m ati c , if in effe ctu al, s e cre cy th at in v aria b ly a tte nd s u ch
opera ti o ns in th e a uto m obile b usin ess: lo cks o n th e stu d io d oors th at c o uld b e c hanged in fifte en
min ute s i f a k ey s h o uld f a ll i n to e nem y h and s; a s e curity f o rc e s ta nd in g r o und -th e-c lo ck g uard o ver th e
esta b lis h m ent; a nd a te le sc o pe to b e tr a in ed a t in te rv als o n n earb y h ig h p oin ts o f th e te rra in w here
peekers m ig ht b e r o osti n g. ( A ll s u ch p re cauti o ns, h o w ev er i n sp ir e d , a re d oom ed to f a il, b ecause n o ne
of th em p ro vid e a d efe nse a gain st D etr o it’ s v ers io n o f th e T ro ja n h o rs e — th e jo b-ju m pin g sty lis t,
who se c heerfu l tr e achery m akes it re la ti v ely e asy fo r th e riv al c o m panie s to k eep ta b s o n w hat th e
co m peti ti o n is u p to . N o o ne, o f c o urs e , is b ette r a w are o f th is th an th e riv als th em se lv es, b ut th e
clo ak-a nd -d agger s tu ff is th o ught to p ay fo r its e lf in p ub lic ity v alu e.) T w ic e a w eek o r s o , K ra fv e—
head d ow n, a nd sti c kin g to lo w g ro und — mad e th e jo urn ey to th e sty lin g stu d io , w here h e w ould
co nfe r w ith B ro w n, c heck u p o n th e w ork a s it p ro ceed ed , a nd o ffe r a d vic e a nd e nco ura gem ent.
Kra fv e w as n o t th e k in d o f m an to e nv is io n h is o bje cti v e in a s in gle re v ela to ry fla sh ; in ste ad , h e
anato m iz e d th e s ty lin g o f th e E -C ar in to a s e rie s o f la b orio usly m in ute d ecis io ns— ho w to s h ap e th e
fe nd ers , w hat p atte rn to u se w ith th e c hro m e, w hat k in d o f d oor h and le s to p ut o n, a nd s o o n a nd o n. I f
Mic hela ngelo e v er a d ded th e n um ber o f d ecis io ns th at w ent i n to th e e xecuti o n o f, s a y, h is “ D av id ,” h e
kep t i t to h im se lf, b ut K ra fv e, a n o rd erly -m in d ed m an i n a n e ra o f o rd erly -fu ncti o nin g c o m pute rs , l a te r
calc ula te d th at i n s ty lin g th e E -C ar h e a nd h is a sso cia te s h ad to m ake u p th eir m in d s o n n o f e w er th an
fo ur th o usa nd o ccasio ns. H e r e aso ned a t th e ti m e th at if th ey a rriv ed a t th e r ig ht y es-o r-n o c ho ic e o n
ev ery o ne o f th o se
o ccasio ns, th ey o ught, i n th e e nd , to c o m e u p w ith a s ty lis ti c ally p erfe ct c ar— or a t
le ast a c ar th at w ould b e u niq ue a nd a t th e s a m e ti m e fa m ilia r. B ut K ra fv e c o nced es to day th at h e
fo und i t d iffic ult th us to b end th e c re ati v e p ro cess to th e y o ke o f s y ste m , p rin cip ally b ecause m any o f
th e fo ur th o usa nd d ecis io ns h e m ad e w ould n’t s ta y p ut. “ O nce y o u g et a g enera l th em e, y o u b egin
narro w in g d ow n,” h e s a ys. “ Y ou k eep m odify in g, a nd th en m odify in g y o ur m odific ati o ns. F in ally , y o u
have
to s e ttl e o n s o m eth in g, b ecause th ere is n ’t a ny m ore ti m e. If it w ere n’t fo r th e d ead lin e y o u’d
pro bab ly g o o n m odify in g i n d efin ite ly .”
Excep t fo r la te r, m in o r m odific ati o ns o f th e m odifie d m odific ati o ns, th e E -C ar h ad b een fu lly
sty le d b y m id su m mer o f 1 955. A s th e w orld w as to l e arn tw o y ears l a te r, i ts m ost s tr ik in g a sp ect w as
a n o vel, h o rs e -c o lla r-s h ap ed r a d ia to r g rille , s e t v erti c ally i n th e c ente r o f a c o nv enti o nally l o w , w id e
fr o nt e nd — a b le nd o f th e u niq ue a nd th e f a m ilia r th at w as th ere f o r a ll to s e e, th o ugh c erta in ly n o t f o r
all to a d m ir e . I n tw o p ro m in ent r e sp ects , h o w ev er, B ro w n o r K ra fv e, o r b oth , l o st s ig ht e nti r e ly o f th e
fa m ilia r, sp ecify in g a u niq ue re ar e nd , m ark ed b y w id esp re ad h o riz o nta l w in gs th at w ere in b old
co ntr a st to th e huge lo ngitu d in al ta il fin s th en cap ti v ati n g th e m ark et, and a uniq ue clu ste r of
auto m ati c -tr a nsm is sio n p ush b utto ns o n th e hub o f th e ste erin g w heel. In a sp eech to th e p ub lic
deliv ere d a w hile b efo re th e p ub lic h ad i ts f ir s t l o ok a t th e c ar, K ra fv e l e t f a ll a h in t o r tw o a b out i ts
sty lin g, w hic h, h e s a id , m ad e it s o “ d is ti n cti v e” th at, e xte rn ally , it w as “ im med ia te ly re co gniz a b le
fr o m fr o nt, s id e, a nd r e ar,” a nd , in te rn ally , it w as “ th e e p ito m e o f th e p ush -b utto n e ra w ith o ut w ild -
blu e-y o nd er B uck R ogers c o ncep ts .” A t la st c am e th e d ay w hen th e m en in th e h ig hest s tr a tu m o f th e
Ford H ie ra rc hy w ere g iv en th eir f ir s t g lim pse o f th e c ar. I t p ro duced a n e ffe ct th at w as l ittl e s h o rt o f ap ocaly p ti c . O n A ugust 1 5, 1 955, in th e c ere m onia l se cre cy o f th e sty lin g c ente r, w hile K ra fv e,
Bro w n, a nd th eir a id es s to od b y s m ilin g n erv ously a nd w ash in g th eir h and s i n a ir, th e m em bers o f th e
Forw ard P ro duct P la nnin g C om mitte e, in clu d in g H enry F ord II a nd B re ech, w atc hed c riti c ally a s a
curta in w as l ifte d to r e v eal th e f ir s t f u ll- s iz e m odel o f th e E -C ar— a c la y o ne, w ith ti n fo il s im ula ti n g
alu m in um a nd c hro m e. A cco rd in g to e yew itn esse s, th e a ud ie nce s a t in u tte r s ile nce fo r w hat s e em ed
lik e a fu ll m in ute , a nd th en, a s o ne m an, b urs t in to a r o und o f a p pla use . N oth in g o f th e k in d h ad e v er
hap pened a t a n in tr a co m pany fir s t s h o w in g a t F ord s in ce 1 896, w hen o ld H enry h ad b olte d to geth er
his f ir s t h o rs e le ss c arria ge.
ONE
o f th e m ost p ers u asiv e a nd m ost f r e q uentl y c ite d e xp la nati o ns o f th e E dse l’s f a ilu re i s th at i t w as
a v ic ti m o f th e ti m e la g b etw een th e d ecis io n to p ro duce it a nd th e a ct o f p utti n g it o n th e m ark et. It
was e asy to se e a fe w y ears la te r, w hen sm alle r a nd le ss p ow erfu l c ars , e up hem is ti c ally c alle d
“co m pacts ,” h ad b eco m e s o p opula r a s to tu rn th e o ld a uto m obile s ta tu s-la d der u p sid e d ow n, th at th e
Edse l w as a g ia nt s te p in th e w ro ng d ir e cti o n, b ut it w as fa r fr o m e asy to s e e th at in fa t, ta il- fin ny
1955. A meric an in genuity — whic h h as p ro duced th e e le ctr ic lig ht, th e fly in g m achin e, th e ti n L iz zie ,
th e a to m ic b om b, a nd e v en a ta x s y ste m th at p erm its a m an, u nd er c erta in c ir c um sta nces, to c le ar a
pro fit b y m akin g a c harita b le d onati o n
* —has n o t y et fo und a w ay o f g etti n g a n a uto m obile o n th e
mark et w ith in a re aso nab le ti m e a fte r it c o m es o ff th e d ra w in g b oard ; th e m akin g o f s te el d ie s, th e
ale rti n g o f re ta il d eale rs , th e p re p ara ti o n o f a d verti s in g a nd p ro m oti o n c am paig ns, th e g ain in g o f
executi v e a p pro val fo r e ach su ccessiv e m ove, a nd th e v ario us o th er g av otte -lik e ro uti n es th at a re
co nsid ere d as vita l as bre ath in g in D etr o it and its env ir o ns usu ally co nsu m e ab out tw o years .
Guessin g f u tu re ta ste s i s h ard e no ugh f o r th o se c harg ed w ith p la nnin g th e c usto m ary a nnual c hanges i n
models o f e sta b lis h ed m akes; it is fa r h ard er to b rin g o ut a n a lto geth er n ew c re ati o n, lik e th e E -C ar,
fo r w hic h s e v era l in tr ic ate n ew s te p s m ust b e w ork ed in to th e d ance p atte rn , s u ch a s e nd ow in g th e
pro duct w ith a p ers o nality a nd s e le cti n g a s u ita b le n am e fo r it, to s a y n o th in g o f c o nsu lti n g v ario us
ora cle s in an effo rt to d ete rm in e w heth er, b y th e ti m e o f th e unv eilin g, th e sta te o f th e nati o nal
eco no m y w ill m ake b rin gin g o ut
any
n ew c ar s e em l ik e a g o od i d ea.
Faith fu lly e xecuti n g th e p re sc rib ed r o uti n e, th e S pecia l P ro ducts D iv is io n c alle d u p on its d ir e cto r
of pla nnin g fo r m ark et re se arc h,
Dav id W alla ce, to se e w hat he co uld do ab out im parti n g a
pers o nality to th e E -C ar a nd g iv in g i t a n am e. W alla ce, a l e an, c ra ggy-ja w ed p ip e p uffe r w ith a s o ft,
slo w , th o ughtf u l w ay o f sp eakin g, g av e th e im pre ssio n o f b ein g th e P la to nic id ea o f th e c o lle ge
pro fe sso r— th e v ery s te el d ie f r o m w hic h th e b re ed i s c ut— alth o ugh, i n p oin t o f f a ct, h is b ackgro und
was no t str o ngly acad em ic . B efo re go in g to Ford , in 1955, he had w ork ed his w ay th ro ugh
Westm in ste r C olle ge, in P ennsy lv ania , rid den o ut th e d ep re ssio n a s a c o nstr u cti o n la b ore r in N ew
York C ity , a nd th en s p ent te n y ears i n m ark et r e se arc h a t
Tim e
. S ti ll, i m pre ssio ns a re w hat c o unt, a nd
Walla ce h as a d m itte d th at d urin g h is te nure w ith F ord h e c o nsc io usly s tr e sse d h is p ro fe sso ria l a ir f o r
th e sa ke o f th e a d vanta ge it g av e h im in d ealin g w ith th e b lu ff, p ra cti c al m en o f D earb orn . “ O ur
dep artm ent c am e to b e re gard ed a s a se m i- B ra in T ru st,” h e sa ys, w ith a c erta in sa ti s fa cti o n. H e
in sis te d , ty p ic ally , o n l iv in g i n A nn A rb or, w here h e c o uld b ask i n th e s c ho la rly a ura o f th e U niv ers ity
of M ic hig an, ra th er th an in D earb orn o r D etr o it, b oth o f w hic h h e d ecla re d w ere in to le ra b le a fte r
busin ess h o urs . W hate v er th e d egre e o f h is s u ccess i n p ro je cti n g th e i m age o f th e E -C ar, h e s e em s, b y
his s m all e ccentr ic iti e s, to h av e d one s p le nd id ly a t p ro je cti n g th e im age o f W alla ce. “ I d on’t th in k
Dav e’s m oti v ati o n fo r b ein g a t F ord w as b asic ally e co no m ic ,” h is o ld b oss, K ra fv e, s a ys. “ D av e is
th e s c ho la rly ty p e, a nd I th in k h e c o nsid ere d th e j o b a n i n te re sti n g c halle nge.” O ne c o uld s c arc ely a sk
fo r b ette r e v id ence o f i m age p ro je cti o n th an th at. Walla ce c le arly r e calls th e r e aso nin g— cand id e no ugh— th at g uid ed h im a nd h is a ssis ta nts a s th ey
so ught j u st th e r ig ht p ers o nality f o r th e E -C ar. “ W e s a id to o urs e lv es, ‘ L et’ s f a ce i t— th ere i s n o g re at
diffe re nce in b asic m echanis m b etw een a tw o-th o usa nd -d olla r C hev ro le t a nd a s ix -th o usa nd -d olla r
Cad illa c,’ ” h e s a ys. “ ‘F org et a b out a ll th e b ally ho o,’ w e s a id , ‘a nd y o u’ll s e e th at th ey a re re ally
pre tty m uch th e sa m e th in g. N ev erth ele ss, th ere ’s so m eth in g— th ere ’s
got
to b e so m eth in g— in th e
makeup o f a c erta in n um ber o f p eo ple th at g iv es th em a y en fo r a C ad illa c, in s p ite o f its h ig h p ric e,
or m ayb e b ecause o f i t.’ W e c o nclu d ed th at c ars a re th e m eans to a s o rt o f d re am f u lfillm ent. T here ’s
so m e i r ra ti o nal f a cto r i n p eo ple th at m akes th em w ant o ne k in d o f c ar
r a th er th an a no th er— so m eth in g
th at h as n o th in g to d o w ith th e m echanis m a t a ll b ut w ith th e c ar’s p ers o nality , a s th e c usto m er
im agin es i t. W hat w e w ante d to d o, n atu ra lly , w as to g iv e th e E -C ar th e p ers o nality th at w ould m ake
th e gre ate st num ber of peo ple w ant it. W e fig ure d w e had a big ad vanta ge over th e oth er
manufa ctu re rs o f m ed iu m -p ric ed c ars , b ecause w e d id n’t h av e to w orry a b out c hangin g a p re -e xis te nt,
perh ap s s o m ew hat o bno xio us p ers o nality . A ll w e h ad to d o w as c re ate th e e xact o ne w e w ante d —
fr o m s c ra tc h.”
As th e fir s t s te p in d ete rm in in g w hat th e E -C ar’s e xact p ers o nality s h o uld b e, W alla ce d ecid ed to
asse ss th e p ers o naliti e s o f th e m ed iu m -p ric ed c ars a lr e ad y o n th e m ark et, a nd th o se o f th e s o -c alle d
lo w -p ric ed c ars a s w ell, s in ce th e c o st o f s o m e o f th e c heap c ars ’ 1 955 m odels h ad r is e n w ell u p i n to
th e m ed iu m -p ric e r a nge. T o th is e nd , h e e ngaged th e C olu m bia U niv ers ity B ure au o f A pplie d S ocia l
Rese arc h to i n te rv ie w e ig ht h und re d r e cent c ar b uyers i n P eo ria , I llin o is , a nd a no th er e ig ht h und re d i n
San B ern ard in o , C alifo rn ia , on th e m enta l im ages th ey had of th e vario us auto m obile m akes
co ncern ed . (In und erta kin g th is co m merc ia l ente rp ris e , Colu m bia main ta in ed its acad em ic
in d ep end ence b y re se rv in g th e rig ht to p ub lis h its fin d in gs.) “ O ur id ea w as to g et th e re acti o n in
citi e s, a m ong c lu ste rs o f p eo ple ,” W alla ce s a ys. “ W e d id n’t w ant a c ro ss s e cti o n. W hat w e w ante d
was so m eth in g th at w ould sh o w in te rp ers o nal fa cto rs . W e pic ked Peo ria as a pla ce th at is
Mid w este rn , s te re o ty p ed , a nd n o t l o ad ed w ith e xtr a neo us f a cto rs — lik e a G enera l M oto rs g la ss p la nt,
sa y. W e p ic ked S an B ern ard in o b ecause th e W est C oast i s v ery i m porta nt i n th e a uto m obile b usin ess,
and b ecause th e m ark et th ere i s q uite d iffe re nt— peo ple te nd to b uy f la sh ie r c ars .”
The q uesti o ns th at th e C olu m bia r e se arc hers f a re d f o rth to a sk i n P eo ria a nd S an B ern ard in o d ealt
exhausti v ely w ith p ra cti c ally e v ery th in g h av in g to d o w ith a uto m obile s e xcep t s u ch m atte rs a s h o w
much th ey c o st, h o w s a fe th ey w ere , a nd w heth er th ey r a n. I n p arti c ula r, W alla ce w ante d to k no w th e
re sp ond ents ’ i m pre ssio ns o f e ach o f th e e xis ti n g m akes. W ho , i n th eir o pin io n, w ould n atu ra lly o w n a
Chev ro le t o r a B uic k o r w hate v er? P eo ple o f w hat a ge? O f w hic h s e x? O f w hat s o cia l s ta tu s? F ro m
th e a nsw ers , W alla ce fo und it e asy to p ut to geth er a p ers o nality p ortr a it o f e ach m ake. T he im age o f
th e F ord cam e in to fo cus as th at o f a v ery fa st, str o ngly m asc ulin e car, o f no p arti c ula r so cia l
pre te nsio ns, th at m ig ht chara cte ris ti c ally b e d riv en b y a ra ncher o r an auto m obile m echanic . In
co ntr a st, C hev ro le t e m erg ed a s o ld er, w is e r, slo w er, a b it le ss ra m pantl y m asc ulin e, a nd slig htl y
more d is ti n gué— a c le rg ym an’s c ar. B uic k j e lle d i n to a m id dle -a ged l a d y— or, a t l e ast, m ore o f a l a d y
th an F ord , s e x in c ars h av in g p ro ved to b e r e la ti v e— with a b it o f th e d ev il s ti ll in h er, w ho se m ost
fe lic ito us m ate w ould b e a l a w yer, a d octo r, o r a d ance-b and l e ad er. A s f o r th e M erc ury , i t c am e o ut
as v ir tu ally a h o t r o d, b est s u ite d to a y o ung-b uck r a cin g d riv er; th us, d esp ite its h ig her p ric e ta g, it
was a sso cia te d w ith p ers o ns h av in g i n co m es n o h ig her th an th e a v era ge F ord o w ner’s , s o n o w ond er
Ford o w ners h ad n o t b een tr a d in g u p to it. T his o dd d is c re p ancy b etw een im age a nd fa ct, c o up le d
with th e c ir c um sta nce th at, in s o ber tr u th a ll fo ur m akes lo oked v ery m uch a lik e a nd h ad a lm ost th e
sa m e h o rs e p ow er u nd er th eir h o ods, o nly s e rv ed to b ear o ut W alla ce’s p re m is e th at th e a uto m obile
fa ncie r, lik e a y o ung m an in lo ve, is in cap ab le o f s iz in g u p th e o bje ct o f h is a ffe cti o ns in a nyth in g re se m blin g a r a ti o nal m anner.
By th e ti m e th e re se arc hers c lo se d th e b ooks o n P eo ria a nd S an B ern ard in o , th ey h ad e lic ite d
re p lie s n o t o nly to th ese q uesti o ns b ut to o th ers , s e v era l o f w hic h, it w ould a p pear, o nly th e m ost
ab str u se s o cio lo gic al th in ker c o uld re la te to m ed iu m -p ric ed c ars . “ F ra nkly , w e d ab ble d ,” W alla ce
sa ys. “ It w as a d ra gnet o pera ti o n.” A mong th e o dds a nd e nd s th at th e d ra gnet d re d ged u p w ere s o m e
th at, w hen p ie ced to geth er, l e d th e r e se arc hers to r e p ort:
By lo okin g a t th ose r e sp ondents w hose a nnual in com es r a nge f ro m $ 4,0 00 to $ 11 ,0 00, w e c an m ake a n … o bse rv atio n. A c onsid era ble
perc enta ge o f th ese re sp ondents [to a q uestio n a bout th eir a bilit y to m ix c ockta ils ] a re in th e “ so m ew hat” c ate gory o n a bilit y to m ix
cockta ils .… E vid ently , th ey d o n ot h ave m uch c onfid ence in th eir c ockta il- m ix in g a bilit y . W e m ay in fe r th at th ese r e sp ondents a re a w are
of th e f a ct th at th ey a re in th e le arn in g p ro cess. T hey m ay b e a ble to m ix M artin is o r M anhatta ns, b ut b eyond th ese p opula r d rin ks th ey
don’t h ave m uch o f a r e perto ir e .
Walla ce, d re am in g o f a n id eally lo vab le E -C ar, w as d elig hte d a s r e tu rn s lik e th ese c am e p ourin g
in to h is D earb orn o ffic e. B ut w hen th e ti m e f o r a f in al d ecis io n d re w n ear, i t b ecam e c le ar to h im th at
he m ust p ut a sid e p erip hera l is su es lik e c o ckta il- m ix in g p ro w ess a nd a d dre ss h im se lf o nce m ore to
th e o ld p ro ble m o f th e im age. A nd h ere , it s e em ed to h im , th e g re ate st p itf a ll w as th e te m pta ti o n to
aim , in a cco rd ance w ith w hat h e to ok to b e th e tr e nd o f th e ti m es, fo r e xtr e m es o f m asc ulin ity ,
yo uth fu ln ess, a nd sp eed ; in d eed , th e fo llo w in g p assa ge fr o m o ne o f th e C olu m bia re p orts , a s h e
in te rp re te d i t, c o nta in ed a s p ecific w arn in g a gain st s u ch f o lly .
Offh and w e m ig ht c onje ctu re th at w om en w ho d riv e c ars p ro bably w ork , a nd a re m ore m obile th an n on-o w ners , a nd g et g ra tif ic atio ns
out o f m aste rin g a tr a dit io nally m ale r o le . B ut … th ere is n o d oubt th at w hate ver g ra tif ic atio ns w om en g et o ut o f th eir c ars , a nd w hate ver
so cia l im agery th ey a tta ch to th eir a uto m obile s, th ey d o w ant to a ppear a s w om en. P erh aps m ore w orld ly w om en, b ut w om en.
Early in 1 956, W alla ce s e t a b out s u m min g u p a ll o f h is d ep artm ent’ s fin d in gs in a re p ort to h is
su p erio rs i n th e S pecia l P ro ducts D iv is io n. E nti tl e d “ T he M ark et a nd P ers o nality O bje cti v es o f th e E -
Car” a nd w eig hty w ith fa cts a nd sta ti s ti c s— th o ugh g enero usly in te rs p ers e d w ith te rs e se cti o ns in
ita lic s o r c ap ita ls fr o m w hic h a h ard -p re sse d e xecuti v e c o uld g et th e g is t o f th e th in g in a m atte r o f
se co nd s— th e re p ort fir s t in d ulg ed in so m e air y , sk ip pab le p hilo so phiz in g and th en go t d ow n to
co nclu sio ns:
What happens w hen an ow ner se es his m ake as a car w hic h a
wom an
m ig ht buy, but is him se lf a
man?
D oes th is appare nt
in consis te ncy o f c ar im age a nd th e b uyer’s o w n c hara cte ris tic s a ffe ct h is tr a din g p la ns? T he a nsw er q uit e d efin it e ly is
Yes
. W hen th ere
is a c onflic t b etw een o w ner c hara cte ris tic s a nd m ake im age, th ere is g re ate r p la nnin g to s w it c h to a noth er m ake. I n o th er w ord s, w hen
th e b uyer is a d if fe re nt k in d o f p ers o n fro m th e p ers o n h e th in ks w ould o w n h is m ake, h e w ants to c hange to a m ake in w hic h h e,
in w ard ly , w ill b e m ore c om fo rta ble .
It s h ould b e n ote d th at “ c onflic t,” a s u se d h ere , c an b e o f tw o k in ds. S hould a m ake h ave a s tr o ng a nd w ell- d efin ed im age, it is
obvio us th at a n o w ner w it h s tr o ng o pposin g c hara cte ris tic s w ould b e in c onflic t. B ut c onflic t a ls o c an o ccur w hen th e m ake im age is
dif fu se o r w eakly d efin ed. I n th is c ase , th e o w ner is in a n e qually f ru str a tin g p osit io n o f n ot b ein g a ble to g et a s a tis fa cto ry id entif ic atio n
fro m h is m ake.
The q uesti o n, th en, w as h o w to s te er b etw een th e S cylla o f a to o d efin ite c ar p ers o nality a nd th e
Chary b dis o f a to o w eak p ers o nality . T o th is th e r e p ort r e p lie d , “ C ap ita liz e o n im agery w eakness o f
co m peti ti o n,” a nd w ent o n to u rg e th at i n th e m atte r o f a ge th e E -C ar s h o uld ta ke a n i m agery p ositi o n
neith er to o y o ung n o r to o o ld b ut r ig ht a lo ngsid e th at o f th e m id dlin g O ld s-m obile ; th at i n th e m atte r o f
so cia l c la ss, n o t to m in ce m atte rs , “ th e E -C ar m ig ht w ell ta ke a s ta tu s p ositi o n ju st b elo w B uic k a nd
Old sm obile ”; a nd th at i n th e d elic ate m atte r o f s e x i t s h o uld tr y to s tr a d dle th e f e nce, a gain a lo ng w ith
th e p ro te an O ld s. I n s u m ( a nd i n W alla ce ty p ogra p hy): The m ost advanta geous pers o nalit y fo r th e E -C ar m ig ht w ell be
TH E S M ART C A R F O R T H E Y OUNGER E X EC U TIV E O R
PR O FE SSIO NAL F A M IL Y O N I T S W AY U P
.
Sm art c ar: r e cognit io n b y o th ers o f th e o w ner’s g ood s ty le a nd ta ste .
Younger: a ppealin g to s p ir it e d b ut r e sp onsib le a dventu re rs .
Executiv e o r p ro fe ssio nal: m illio ns p re te nd to th is s ta tu s, w heth er th ey c an a tta in it o r n ot.
Fam ily : n ot e xclu siv ely m asc ulin e; a w hole so m e “ g ood” r o le .
On I ts W ay U p: “ T he E -C ar h as f a it h in y ou, s o n; w e’ll h elp y ou m ake it ! ”
Befo re s p ir ite d b ut r e sp onsib le a d ventu re rs c o uld h av e f a ith i n th e E -C ar, h o w ev er, i t h ad to h av e
a n am e. V ery e arly i n i ts h is to ry , K ra fv e h ad s u ggeste d to m em bers o f th e F ord f a m ily th at th e n ew c ar
be n am ed fo r E dse l F ord , w ho w as th e o nly so n o f o ld H enry ; th e p re sid ent o f th e F ord M oto r
Com pany f r o m 1 918 u nti l h is d eath , i n 1 943; a nd th e f a th er o f th e n ew g enera ti o n o f F ord s— Henry I I,
Benso n, a nd W illia m C la y. T he th re e b ro th ers h ad le t K ra fv e k no w th at th eir fa th er m ig ht n o t h av e
care d to h av e h is n am e s p in nin g o n a m illio n h ub cap s, a nd th ey h ad c o nse q uentl y s u ggeste d th at th e
Specia l P ro ducts D iv is io n sta rt lo okin g aro und fo r a su b sti tu te . T his it d id , w ith a ze al no le ss
em phati c th an it d is p la yed in th e p ers o nality c ru sa d e. In th e la te su m mer a nd e arly fa ll o f 1 955,
Walla ce h ir e d th e s e rv ic es o f s e v era l r e se arc h o utf its , w hic h s e nt in te rv ie w ers , a rm ed w ith a lis t
o f
tw o th o usa nd p ossib le n am es, to c anv ass s id ew alk c ro w ds i n N ew Y ork , C hic ago , W illo w R un, a nd
Ann A rb or. T he in te rv ie w ers d id n o t a sk s im ply w hat th e r e sp ond ent th o ught o f s o m e s u ch n am e a s
Mars , J u p ite r, R over, A rie l, A rro w , D art, o r O vati o n. T hey a sk ed w hat fr e e a sso cia ti o ns e ach n am e
bro ught to m in d , and hav in g go t an answ er to th is one, th ey ask ed w hat w ord or w ord s w as
co nsid ere d th e o pposite o f e ach n am e, o n th e th eo ry th at, s u b lim in ally s p eakin g, th e o pposite is a s
much a p art o f a n am e a s th e ta il is o f a p enny. T he r e su lts o f a ll th is , th e S pecia l P ro ducts D iv is io n
ev entu ally d ecid ed , w ere in co nclu siv e. M eanw hile , K ra fv e a nd h is m en h eld r e p eate d s e ssio ns in a
dark ened ro om , s ta rin g, w ith th e a id o f a s p otl ig ht, a t a s e rie s o f c ard board s ig ns, e ach b earin g a
nam e, a s, o ne a fte r a no th er, th ey w ere flip ped o ver fo r th eir c o nsid era ti o n. O ne o f th e m en th us
engaged sp oke u p fo r th e n am e P ho enix , b ecause o f its c o nno ta ti o ns o f a sc end ancy, a nd a no th er
fa v ore d A lta ir, o n th e g ro und th at it w ould le ad p ra cti c ally a ll a lp hab eti c al lis ts o f c ars a nd th us
enjo y a n a d vanta ge a nalo go us to th at e njo yed in th e a nim al k in gd om b y th e a ard vark . A t a c erta in
dro w sy p oin t in o ne s e ssio n, s o m eb ody s u d denly c alle d a h alt to th e c ard -flip pin g a nd a sk ed , in a n
in cre d ulo us to ne, “D id n’t I se e ‘B uic k’ go b y tw o o r th re e card s b ack?” E very b ody lo oked at
Walla ce, th e im pre sa rio o f th e se ssio ns. H e p uffe d o n his p ip e, sm ile d an acad em ic sm ile , and
no dded .
TH E
c ard -flip pin g s e ssio ns p ro ved to b e a s fr u itl e ss a s th e s id ew alk in te rv ie w s, a nd it w as a t th is
sta ge o f th e g am e th at W alla ce, re so lv in g to tr y a nd w rin g fr o m g eniu s w hat th e c o m mon m in d h ad
fa ile d to y ie ld , e nte re d i n to th e c ele b ra te d c ar-n am in g c o rre sp ond ence w ith th e p oet M aria nne M oore ,
whic h w as la te r p ub lis h ed in
The N ew Y o rk er
a nd s ti ll la te r, in b ook fo rm , b y th e M org an L ib ra ry .
“W e sh o uld lik e th is n am e … to c o nv ey, th ro ugh a sso cia ti o n o r o th er c o nju ra ti o n, so m e v is c era l
fe elin g of ele gance, fle etn ess, ad vanced fe atu re s and desig n,” W alla ce w ro te to M is s M oore ,
achie v in g a c erta in f e elin g o f e le gance h im se lf. I f i t i s a sk ed w ho a m ong th e g o ds o f D earb orn h ad th e
in sp ir e d a nd in sp ir iti n g id ea o f e nlis ti n g M is s M oore ’s s e rv ic es in th is c ause , th e
a nsw er, a cco rd in g
to W alla ce, is th at it w as n o g o d b ut th e w ife o f o ne o f h is ju nio r a ssis ta nts — a y o ung la d y w ho h ad
re centl y gra d uate d fr o m M ount H oly o ke, w here sh e had heard M is s M oore le ctu re . H ad her
husb and ’s s u p erio rs g o ne a s te p fu rth er a nd a ctu ally a d opte d o ne o f M is s M oore ’s m any s u ggesti o ns
—In te llig ent B ulle t, fo r in sta nce, o r U to pia n T urtl e to p, o r B ulle t C lo is o nné, o r P aste lo gra m , o r
Mongo ose C iv iq ue, o r A nd ante c o n M oto ( “ D esc rip ti o n o f a g o od m oto r? ” M is s M oore q uerie d in re gard to th is l a st) — th ere i s n o te llin g to w hat h eig hts th e E -C ar m ig ht h av e r is e n, b ut th e f a ct i s th at
th ey d id n’t. D is sa ti s fie d w ith b oth th e p oet’ s id eas a nd th eir o w n, th e e xecuti v es in th e S pecia l
Pro ducts D iv is io n n ext c alle d in F oote , C one & B eld in g, th e a d verti s in g a gency th at h ad la te ly b een
sig ned u p to h and le th e E -C ar a cco unt. W ith c hara cte ris ti c M ad is o n A venue v ig o r, F oote , C one &
Beld in g o rg aniz e d a c o m peti ti o n a m ong th e e m plo yees o f i ts N ew Y ork , L ond on, a nd C hic ago o ffic es,
offe rin g n o th in g le ss th an o ne o f th e b ra nd -n ew c ars a s a p riz e to w ho ev er th o ught u p a n a ccep ta b le
nam e. I n n o ti m e a t a ll, F oote , C one & B eld in g h ad e ig hte en th o usa nd n am es i n h and , i n clu d in g Z oom ,
Zip , B enso n, H enry , a nd D ro f (if in d oub t, sp ell it b ackw ard ). S usp ecti n g th at th e b osse s o f th e
Specia l P ro ducts D iv is io n m ig ht r e gard th is l is t a s a tr ifle u nw ie ld y, th e a gency g o t to w ork a nd c ut i t
dow n to s ix th o usa nd n am es, w hic h it p re se nte d to th em in e xecuti v e s e ssio n. “ T here y o u a re ,” a
Foote , C one m an s a id tr iu m phantl y , f lo ppin g a s h eaf o f p ap ers o n th e ta b le . “ S ix th o usa nd n am es, a ll
alp hab eti z e d a nd c ro ss-re fe re nced .”
A g asp e sc ap ed K ra fv e. “ B ut w e d on’t w ant s ix th o usa nd n am es,” h e s a id . “ W e o nly w ant o ne.”
The s itu ati o n w as c riti c al, b ecause th e m akin g o f d ie s f o r th e n ew c ar w as a b out to b egin a nd s o m e
of th em w ould h av e to b ear i ts n am e. O n a T hurs d ay, F oote , C one & B eld in g c ancele d a ll l e av es a nd
in sti tu te d w hat is c alle d a c ra sh p ro gra m , in str u cti n g its N ew Y ork a nd C hic ago o ffic es to s e t a b out
in d ep end entl y c utti n g d ow n th e l is t o f s ix th o usa nd n am es to te n a nd to h av e th e j o b d one b y th e e nd o f
th e w eekend . B efo re th e w eekend w as o ver, th e tw o F oote , C one o ffic es p re se nte d th eir s e p ara te l is ts
of te n to th e S pecia l P ro ducts D iv is io n, a nd b y a n a lm ost in cre d ib le
c o in cid ence, w hic h a ll h and s
in sis t
was
a c o in cid ence, fo ur o f th e n am es o n th e tw o lis ts w ere th e s a m e; C ors a ir, C ita ti o n, P acer,
and R anger h ad m ir a culo usly s u rv iv ed th e d ual s c ru ti n y. “ C ors a ir s e em ed to b e h ead a nd s h o uld ers
ab ove e v ery th in g e ls e ,” W alla ce s a ys. “ A lo ng w ith o th er f a cto rs i n i ts f a v or, i t h ad d one s p le nd id ly i n
th e sid ew alk in te rv ie w s. The fr e e asso cia ti o ns w ith C ors a ir w ere ra th er ro m anti c — ‘p ir a te ,’
‘s w ash b uckle r,’ th in gs lik e th at. F or its o pposite , w e g o t ‘ p rin cess,’ o r s o m eth in g e ls e a ttr a cti v e o n
th at o rd er. J u st w hat w e w ante d .”
Cors a ir o r n o C ors a ir, th e E -C ar w as n am ed th e E dse l in th e e arly sp rin g o f 1 956, th o ugh th e
pub lic w as n o t in fo rm ed u nti l th e fo llo w in g a utu m n. T he e p ochal d ecis io n w as r e ached a t a m eeti n g
of th e F ord e xecuti v e c o m mitte e h eld a t a ti m e w hen, a s it h ap pened , a ll th re e F ord b ro th ers w ere
aw ay. I n P re sid ent F ord ’s a b se nce, th e m eeti n g w as c o nd ucte d b y B re ech, w ho h ad b eco m e c hair m an
of th e board in 1955, and his m ood th at day w as bru sq ue, and no t one to lin ger lo ng over
sw ash b uckle rs a nd p rin cesse s. A fte r h earin g th e f in al c ho ic es, h e s a id , “ I d on’t l ik e a ny o f th em . L et’ s
ta ke a no th er l o ok a t s o m e o f th e o th ers .” S o th ey to ok a no th er l o ok a t th e f a v ore d r e je cts , a m ong th em
th e n am e E dse l, w hic h, in s p ite o f th e th re e F ord b ro th ers ’ e xp re sse d in te rp re ta ti o n o f th eir fa th er’s
pro bab le w is h es, h ad b een r e ta in ed a s a s o rt o f a ncho r to w in d w ard . B re ech le d h is a sso cia te s in a
pati e nt sc ru ti n y o f th e lis t u nti l th ey c am e to “ E dse l.” “ L et’ s c all it th at,” B re ech sa id w ith c alm
fin ality . T here w ere to b e fo ur m ain m odels o f th e E -C ar, w ith v aria ti o ns o n e ach o ne, a nd B re ech
so oth ed s o m e o f h is c o lle agues b y a d din g th at th e m agic fo ur— Cors a ir, C ita ti o n, P acer, a nd R anger
—mig ht b e u se d , if a nyb ody fe lt s o in clin ed , a s th e s u b nam es fo r th e m odels . A te le p ho ne c all w as
put th ro ugh to H enry II, w ho w as v acati o nin g in N assa u. H e s a id th at if E dse l w as th e c ho ic e o f th e
executi v e c o m mitte e, h e w ould a b id e b y i ts d ecis io n, p ro vid ed h e c o uld g et th e a p pro val o f th e r e st o f
his f a m ily . W ith in a f e w d ays, h e g o t i t.
As W alla ce w ro te to M is s M oore a w hile la te r: “ W e h av e c ho se n a n am e.… It fa ils s o m ew hat o f
th e r e so nance, g aie ty , a nd z e st w e w ere s e ekin g. B ut i t h as a p ers o nal d ig nity a nd m eanin g
to m any o f
us h ere . O ur n am e, d ear M is s M oore , i s — Edse l. I h o pe y o u w ill u nd ers ta nd .” IT
m ay b e a ssu m ed th at w ord o f th e n am in g o f th e E -C ar s p re ad a c erta in a m ount o f d esp air a m ong th e
Foote , C one & B eld in g b ackers o f m ore m eta p ho ric al n am es, n o ne o f w ho m w on a fr e e c ar— a
desp air h eig hte ned b y th e fa ct th at th e n am e “ E dse l” h ad b een r u le d o ut o f th e c o m peti ti o n fr o m th e
fir s t. B ut th eir s e nse o f d is a p poin tm ent w as a s n o th in g c o m pare d to th e g lo om th at e nv elo ped m any
em plo yees o f th e S pecia l P ro ducts D iv is io n. S om e fe lt th at th e n am e o f a fo rm er p re sid ent o f th e
co m pany, w ho had sir e d its curre nt p re sid ent, b ore d ynasti c co nno ta ti o ns th at w ere alie n to th e
Americ an te m per; o th ers , w ho , w ith W alla ce, h ad p ut th eir tr u st i n th e q uir k s o f th e m ass u nco nsc io us,
belie v ed th at “ E dse l” w as a d is a str o usly u nfo rtu nate c o m bin ati o n o f s y lla b le s. W hat w ere its fr e e
asso cia ti o ns? P re tz e l, d ie se l, h ard s e ll. W hat w as its o pposite ? It d id n’t s e em to h av e a ny. S ti ll, th e
matte r w as se ttl e d , a nd th ere w as n o th in g to d o b ut p ut th e b est p ossib le fa ce o n it. B esid es, th e
anguis h i n th e S pecia l P ro ducts D iv is io n w as b y n o m eans u nanim ous, a nd K ra fv e h im se lf, o f c o urs e ,
was a m ong th o se w ho h ad n o o bje cti o n to th e n am e. H e s ti ll h as n o ne, d eclin in g to g o a lo ng w ith
th o se w ho co nte nd th at th e d eclin e and fa ll o f th e E dse l m ay b e d ate d fr o m th e m om ent o f its
chris te nin g.
Kra fv e, in fa ct, w as so w ell p le ase d w ith th e w ay m atte rs h ad tu rn ed o ut th at w hen, a t e le v en
o’c lo ck o n th e m orn in g o f N ovem ber 1 9, 1 956, a fte r a lo ng s u m mer o f th o ughtf u l s ile nce, th e F ord
Com pany re le ase d to th e w orld th e gla d ti d in gs th at th e E -C ar had been nam ed th e E dse l, he
acco m panie d th e a nno uncem ent w ith a f e w d ra m ati c f lo uris h es o f h is o w n. O n th e v ery s tr o ke o f th at
ho ur o n th at d ay, th e te le p ho ne o pera to rs in K ra fv e’s d om ain b egan g re eti n g c alle rs w ith “ E dse l
Div is io n” i n ste ad o f “ S pecia l P ro ducts D iv is io n”; a ll s ta ti o nery b earin g th e o bso le te l e tte rh ead o f th e
div is io n v anis h ed a nd w as r e p la ced b y s h eav es o f p ap er h ead ed “ E dse l D iv is io n”; a nd o uts id e th e
build in g a huge sta in le ss-s te el sig n re ad in g
“E D SE L D IV IS IO N”
ro se cere m onio usly to th e ro ofto p.
Kra fv e h im se lf m anaged to r e m ain e arth b ound , th o ugh h e h ad h is o w n r e aso ns f o r f e elin g b uo yant;
in
re co gniti o n o f h is le ad ers h ip o f th e E -C ar p ro je ct u p to th at p oin t, h e w as g iv en th e a ugust ti tl e o f
Vic e-P re sid ent o f th e F ord M oto r C om pany a nd G enera l M anager, E dse l D iv is io n.
Fro m th e a d m in is tr a ti v e p oin t o f v ie w , th is o ff- w ith -th e-o ld -o n-w ith -th e-n ew e ffe ct w as m ere ly
harm le ss w in d ow d re ssin g. In th e str ic t se cre cy o f th e D earb orn te st tr a ck, v ib ra nt, alm ost fu ll-
fle d ged E dse ls , w ith th eir n am e g ra v en o n th eir su p ers tr u ctu re s, w ere a lr e ad y b ein g ro ad -te ste d ;
Bro w n a nd h is fe llo w s ty lis ts w ere a lr e ad y w ell a lo ng w ith th eir d esig ns fo r th e
next
y ear’s E dse l;
re cru its w ere a lr e ad y b ein g s ig ned u p fo r a n e nti r e ly n ew o rg aniz a ti o n o f re ta il d eale rs to s e ll th e
Edse l to th e p ub lic ; a nd F oote , C one & B eld in g, h av in g b een r e lie v ed o f th e b urd en o f s ta gin g c ra sh
pro gra m s to c o lle ct n am es a nd c ra sh p ro gra m s to g et r id o f th em a gain , w as a lr e ad y d eep i n s c hem es
fo r a d verti s in g th e E dse l, u nd er th e p ers o nal d ir e cti o n o f a n o l e ss s u b sta nti a l p illa r o f h is tr a d e th an
Fair fa x M . C one, th e a gency’s h ead m an. In p la nnin g h is c am paig n, C one r e lie d h eav ily o n w hat h ad
co m e to b e c alle d th e “ W alla ce p re sc rip ti o n”; th at is , th e fo rm ula fo r th e E dse l’s p ers o nality a s s e t
fo rth b y W alla ce b ack in th e d ays b efo re th e b ig nam in g b ee— “T he sm art car fo r th e yo unger
executi v e o r p ro fe ssio nal f a m ily o n i ts w ay u p .” S o e nth usia sti c w as C one a b out th e p re sc rip ti o n th at
he accep te d it w ith o nly o ne re v is io n— th e su b sti tu ti o n o f “m id dle -in co m e” fa m ily fo r “yo unger
executi v e,” his hunch bein g th at th ere w ere m ore m id dle -in co m e fa m ilie s aro und th an yo ung
executi v es, o r e v en p eo ple w ho
th ought
th ey w ere y o ung e xecuti v es. I n a n e xp ansiv e m ood, p ossib ly
in d uced b y h is h av in g la nd ed a n a cco unt th at w as e xp ecte d to b rin g b illin gs o f w ell o ver te n m illio n
dolla rs a y ear, C one d esc rib ed to r e p orte rs o n s e v era l o ccasio ns th e k in d o f c am paig n h e w as p lo tti n g
fo r th e E dse l— quie t, s e lf- a ssu re d , a nd a v oid in g a s m uch a s p ossib le th e u se o f th e a d je cti v e “ new ,”
whic h, th o ugh it h ad a n o bvio us a p plic ati o n to th e p ro duct, h e c o nsid ere d ra th er la ckin g in c achet.
Above a ll, th e c am paig n w as to b e c la ssic in its c alm ness. “ W e th in k it w ould b e a w fu l fo r th e ad verti s in g to c o m pete w ith th e c ar,” C one to ld th e p re ss. “ W e h o pe th at n o o ne w ill e v er a sk , ‘ S ay,
did y o u s e e th at E dse l a d ?’ i n a ny n ew sp ap er o r m agazin e o r o n te le v is io n, b ut, i n ste ad , th at h und re d s
of th o usa nd s
o f p eo ple w ill s a y, a nd s a y a gain , ‘ M an, d id y o u r e ad a b out th at E dse l? ’ o r ‘ D id y o u s e e
th at car? ’ T his is th e diffe re nce betw een ad verti s in g and se llin g.” E vid entl y eno ugh, C one fe lt
co nfid ent a b out th e c am paig n a nd th e E dse l. L ik e a c hess m aste r w ho h as n o d oub t th at h e w ill w in ,
he c o uld a ffo rd to e xp lic ate th e b rillia nce o f h is m oves e v en a s h e m ad e th em .
Auto m obile m en s ti ll ta lk , w ith a d m ir a ti o n f o r th e v ir tu o sity d is p la yed a nd a s h ud der a t th e u lti m ate
outc o m e, of th e E dse l D iv is io n’s driv e to ro und up re ta il deale rs . O rd in arily , an esta b lis h ed
manufa ctu re r l a unches a n ew c ar th ro ugh d eale rs w ho a re a lr e ad y h and lin g h is o th er m akes a nd w ho ,
to b egin w ith , ta ke o n th e u p sta rt a s a s o rt o f s id elin e. N ot s o i n th e c ase o f th e E dse l; K ra fv e r e ceiv ed
auth o riz a ti o n fr o m o n h ig h to g o a ll o ut a nd b uild u p a r e ta il- d eale r o rg aniz a ti o n b y m akin g r a id s o n
deale rs w ho h ad c o ntr a cts w ith o th er m anufa ctu re rs , o r e v en w ith th e o th er F ord C om pany d iv is io ns
—Ford a nd L in co ln -M erc ury . ( A lth o ugh th e F ord d eale rs th us c o rra lle d w ere n o t o blig ed to c ancel
th eir o ld c o ntr a cts , a ll th e e m phasis w as o n sig nin g u p re ta il o utl e ts e xclu siv ely d ed ic ate d to th e
se llin g o f E dse ls .) T he g o al s e t fo r In tr o ducti o n D ay— whic h, a fte r a g re at d eal o f s o ul- s e arc hin g,
was fin ally e sta b lis h ed a s S ep te m ber 4 , 1 957— was tw elv e h und re d E dse l d eale rs fr o m c o ast to
co ast. T hey w ere n o t to b e j u st a ny d eale rs , e ith er; K ra fv e m ad e i t c le ar th at E dse l w as i n te re ste d i n
sig nin g u p o nly d eale rs w ho se re co rd s s h o w ed th at th ey h ad a m ark ed a b ility to s e ll c ars w ith o ut
re so rti n g to th e h ig h-p re ssu re tr ic ks o f b ord erlin e le gality th at h ad la te ly b een g iv in g th e a uto m obile
busin ess a b ad n am e. “ W e s im ply h av e to h av e q uality d eale rs w ith q uality s e rv ic e f a ciliti e s,” K ra fv e
sa id . “ A c usto m er w ho g ets p oor s e rv ic e o n a n e sta b lis h ed b ra nd b la m es th e d eale r. O n a n E dse l, h e
will b la m e th e c ar.” T he g o al o f tw elv e h und re d w as a h ig h o ne, fo r n o d eale r, q uality o r n o t, c an
affo rd to s w itc h m akes lig htl y . T he a v era ge d eale r h as a t le ast a h und re d th o usa nd d olla rs ti e d u p in
his a gency, a nd in la rg e c iti e s th e in v estm ent is m uch h ig her. H e m ust h ir e s a le sm en, m echanic s, a nd
offic e h elp ; b uy h is o w n to ols , te chnic al lite ra tu re , a nd sig ns, th e la tte r c o sti n g a s m uch a s fiv e
th o usa nd d olla rs a s e t; a nd p ay th e f a cto ry s p ot c ash f o r th e c ars h e r e ceiv es f r o m i t.
The m an c harg ed w ith m obiliz in g a n E dse l s a le s f o rc e a lo ng th ese e xacti n g l in es w as J . C . ( L arry )
Doyle , w ho , as genera l sa le s-a nd -m ark eti n g m anager of th e div is io n, ra nked se co nd to K ra fv e
him se lf. A v ete ra n o f f o rty y ears w ith th e F ord C om pany, w ho h ad s ta rte d w ith i t a s a n o ffic e b oy i n
Kansa s C ity a nd h ad s p ent th e i n te rv enin g ti m e m ain ly s e llin g, D oyle w as a m av eric k i n h is f ie ld . O n
th e o ne h and , h e h ad a n a ir o f k in d ness a nd c o nsid era ti o n th at m ad e h im th e v ery a nti th esis o f th e g lib ,
bra sh d eniz e ns o f a th o usa nd a uto m obile ro w s a cro ss th e c o nti n ent, a nd , o n th e o th er, h e d id n o t
tr o ub le to c o nceal a n o ld -ti m e s a le sm an’s s k ep ti c is m a b out s u ch th in gs a s a naly zin g th e s e x a nd s ta tu s
of a uto m obile s, a p urs u it h e c hara cte riz e d b y s a yin g, “ W hen I p la y p ool, I l ik e to k eep o ne f o ot o n th e
flo or.” S ti ll, h e k new h o w to s e ll c ars , a nd th at w as w hat th e E dse l D iv is io n n eed ed . R ecallin g h o w
he a nd h is s a le s s ta ff b ro ught o ff th e u nlik ely tr ic k o f p ers u ad in g s u b sta nti a l a nd r e p uta b le m en w ho
had a lr e ad y a chie v ed s u ccess in o ne o f th e to ughest o f a ll b usin esse s to te ar u p p ro fita b le fr a nchis e s
in fa v or o f a ris k y n ew o ne, D oyle s a id n o t lo ng a go , “ A s s o on a s th e fir s t fe w n ew E dse ls c am e
th ro ugh, e arly i n 1 957, w e p ut a c o up le o f th em i n e ach o f o ur f iv e r e gio nal s a le s o ffic es. N eed le ss to
sa y, w e k ep t th o se o ffic es lo cked a nd th e b lin d s d ra w n. D eale rs in e v ery m ake fo r m ile s a ro und
wante d to s e e th e c ar, if o nly o ut o f c urio sity , a nd th at g av e u s th e le v era ge w e n eed ed . W e le t it b e
kno w n th at w e w ould s h o w th e c ar o nly to d eale rs w ho w ere r e ally i n te re ste d i n c o m in g w ith u s, a nd
th en w e s e nt o ur r e gio nal f ie ld m anagers o ut to s u rro und in g to w ns to tr y to l in e u p th e N o. 1 d eale r i n
each to s e e th e c ars . I f w e c o uld n’t g et N o. 1 , w e’d tr y f o r N o. 2 . A nyw ay, w e s e t th in gs u p s o th at n o
one g o t i n to s e e th e E dse l w ith o ut l is te nin g to a c o m ple te o ne-h o ur p itc h o n th e w ho le s itu ati o n b y a mem ber o f o ur s a le s f o rc e. I t w ork ed v ery w ell.” I t w ork ed s o w ell th at b y m id su m mer, 1 957, i t w as
cle ar th at E dse l w as g o in g to h av e a l o t o f q uality d eale rs o n I n tr o ducti o n D ay. ( In f a ct, i t m is se d th e
go al o f tw elv e h und re d b y a c o up le o f d oze n.) In d eed , s o m e d eale rs in o th er m akes w ere a p pare ntl y
so c o nfid ent o f th e E dse l’s s u ccess, o r s o b em use d b y th e D oyle s ta ff ’s p itc h, th at th ey w ere e nti r e ly
willin g to s ig n u p a fte r h ard ly m ore th an a g la nce a t th e E dse l its e lf. D oyle ’s p eo ple
u rg ed th em to
stu d y th e c ar c lo se ly , a nd k ep t re citi n g th e lita ny o f its v ir tu es, b ut th e p ro sp ecti v e E dse l d eale rs
would w av e su ch p ro te sta ti o ns a sid e a nd d em and a c o ntr a ct w ith o ut fu rth er a d o. In re tr o sp ect, it
would s e em th at D oyle c o uld h av e g iv en l e sso ns to th e P ie d P ip er.
Now th at th e E dse l w as n o lo nger th e e xclu siv e c o ncern o f D earb orn , th e F ord C om pany w as
ir re v ocab ly c o m mitte d to g o in g a head . “ U nti l D oyle w ent in to a cti o n, th e w ho le p ro gra m c o uld h av e
been q uie tl y d ro pped a t a ny ti m e a t a w ord fr o m to p m anagem ent, b ut o nce th e d eale rs h ad b een
sig ned u p , th ere w as th e m atte r o f h o no rin g y o ur c o ntr a ct to p ut o ut a c ar,” K ra fv e h as e xp la in ed . T he
matte r w as a tte nd ed to w ith d is p atc h. E arly in J u ne, 1 957, th e c o m pany a nno unced th at o f th e $ 250
millio n it h ad s e t a sid e to d efr a y th e a d vance c o sts o f th e E dse l, $ 150 m illio n w as b ein g s p ent o n
basic fa ciliti e s, in clu d in g th e co nv ers io n of vario us F ord and M erc ury pla nts to th e need s of
pro ducin g th e n ew c ars ; $ 50 m illio n o n s p ecia l E dse l to olin g; a nd $ 50 m illio n o n in iti a l a d verti s in g
and p ro m oti o n. In J u ne, to o, a n E dse l d esti n ed to b e th e s ta r o f a te le v is io n c o m merc ia l fo r fu tu re
re le ase w as s te alth ily tr a nsp orte d in a c lo se d v an to H olly w ood, w here , o n a lo cked s o und s ta ge
patr o lle d b y se curity guard s, it w as exp ose d to th e cam era s in th e ad m ir in g p re se nce o f a fe w
care fu lly c ho se n a cto rs w ho h ad s w orn th at th eir lip s w ould b e s e ale d fr o m th en u nti l In tr o ducti o n
Day. F or th is d elic ate p ho to gra p hic o pera ti o n th e E dse l D iv is io n c annily e nlis te d th e se rv ic es o f
Casc ad e P ic tu re s, w hic h a ls o w ork ed fo r th e A to m ic E nerg y C om mis sio n, a nd , a s fa r a s is k no w n,
th ere w ere n o u nin te nti o nal l e aks. “ W e to ok a ll th e s a m e p re cauti o ns w e ta ke f o r o ur A .E .C . f ilm s,” a
grim C asc ad e o ffic ia l h as s in ce s a id .
With in a f e w w eeks, th e E dse l D iv is io n h ad e ig hte en h und re d s a la rie d e m plo yees a nd w as r a p id ly
fillin g s o m e fifte en th o usa nd fa cto ry jo bs in th e n ew ly c o nv erte d p la nts . O n J u ly 1 5th , E dse ls b egan
ro llin g o ff a sse m bly l in es a t S om erv ille , M assa chuse tts ; M ahw ah, N ew J e rs e y; L ouis v ille , K entu cky;
and S an Jo se , C alifo rn ia . T he sa m e d ay, D oyle sc o re d a n im porta nt c o up b y sig nin g u p C harle s
Kre is le r, a M anhatta n d eale r r e gard ed a s o ne o f th e c o untr y ’s f o re m ost p ra cti ti o ners i n h is f ie ld , w ho
had re p re se nte d
O ld sm obile — one o f E dse l’s s e lf- d esig nate d riv als — befo re h eed in g th e s ir e n s o ng
fr o m D earb orn . O n J u ly 2 2nd , th e fir s t a d verti s e m ent fo r th e E dse l a p peare d — in
Life
. A tw o-p age
sp re ad i n p la in b la ck-a nd -w hite , i t w as i m peccab ly c la ssic a nd c alm , s h o w in g a c ar w ho osh in g d ow n
a c o untr y h ig hw ay a t s u ch h ig h s p eed th at it w as a n in d is ti n guis h ab le b lu r. “ L ate ly , s o m e m yste rio us
auto m obile s h av e b een s e en o n th e r o ad s,” th e a cco m panyin g te xt w as h ead ed . It w ent o n to s a y th at
th e b lu r w as a n E dse l b ein g r o ad -te ste d , a nd c o nclu d ed w ith th e a ssu ra nce “ T he E dse l i s o n i ts w ay.”
Tw o w eeks l a te r, a s e co nd a d a p peare d i n
Life
, th is o ne s h o w in g a g ho stl y -lo okin g c ar, c o vere d w ith
a w hite s h eet, s ta nd in g a t th e e ntr a nce to th e F ord s ty lin g c ente r. T his ti m e th e h ead lin e r e ad , “ A m an
in y o ur to w n r e centl y m ad e a d ecis io n th at w ill c hange h is l ife .” T he d ecis io n, i t w as e xp la in ed , w as
to b eco m e a n E dse l d eale r. W ho ev er w ro te th e a d c anno t h av e k no w n h o w tr u ly h e s p oke.
DURIN G
th e te nse s u m mer o f 1 957, th e m an o f th e h o ur a t E dse l w as C . G ayle W arn o ck, d ir e cto r o f
pub lic r e la ti o ns, w ho se d uty w as n o t s o m uch to g enera te p ub lic in te re st in th e fo rth co m in g p ro duct,
th ere b ein g a n a b und ance o f th at, a s to k eep th e in te re st a t w hite h eat, a nd r e ad ily c o nv erti b le in to a
desir e to b uy o ne o f th e n ew c ars o n o r a fte r In tr o ducti o n D ay— or, a s th e c o m pany c am e to c all it,
Edse l D ay. W arn o ck, a d ap per, a ffa b le m an w ith a ti n y m usta che, is a n ati v e o f C onv ers e , In d ia na, who , l o ng b efo re K ra fv e d ra fte d h im f r o m th e F ord o ffic e i n C hic ago , d id a s p ot o f p ub lic ity w ork f o r
co unty fa ir s — a b ackgro und th at h as e nab le d h im to sp ic e th e h o neyed sm ooth ness o f th e m odern
pub lic -re la ti o ns m an w ith a to uch o f th e o ld c arn iv al p itc hm an’s u nin hib ite d sp ir it. R ecallin g h is
su m mons to D earb orn , W arn o ck s a ys, “ W hen D ic k K ra fv e h ir e d m e, b ack i n th e f a ll o f 1 955, h e to ld
me, ‘ I w ant y o u to p ro gra m th e E -C ar p ub lic ity f r o m n o w to I n tr o ducti o n D ay.’ I s a id , ‘ F ra nkly , D ic k,
what d o y o u m ean b y “ p ro gra m ”?’ H e s a id h e m eant to s o rt o f s p ace it o ut, s ta rti n g a t th e e nd a nd
work in g b ackw ard . T his w as s o m eth in g n ew to m e— I w as u se d to ta kin g w hat b re aks I c o uld g et
when I c o uld g et th em — but I so on fo und o ut h o w rig ht D ic k w as. It w as a lm ost
to o e asy to g et
pub lic ity fo r th e E dse l. E arly in 1 956, w hen it w as s ti ll c alle d th e E -C ar, K ra fv e g av e a littl e ta lk
ab out i t o ut i n P ortl a nd , O re go n. W e d id n’t tr y f o r a nyth in g m ore th an a p la y i n th e l o cal p re ss, b ut th e
wir e se rv ic es p ic ked th e sto ry u p a nd it w ent o ut a ll o ver th e c o untr y . C lip pin gs c am e in b y th e
bush el. R ig ht th en I re aliz e d th e tr o ub le w e m ig ht b e head ed fo r. T he p ub lic w as getti n g to b e
hyste ric al to s e e o ur c ar, f ig urin g i t w as g o in g to b e s o m e k in d o f d re am c ar— lik e n o th in g th ey’d e v er
se en. I s a id to K ra fv e, ‘ W hen th ey f in d o ut i t’ s g o t f o ur w heels a nd o ne e ngin e, j u st l ik e th e n ext c ar,
th ey’re l ia b le to b e d is a p poin te d .’ ”
It w as a gre ed th at th e s a fe st w ay to tr e ad th e ti g htr o pe b etw een o verp la yin g a nd u nd erp la yin g th e
Edse l w ould b e to s a y n o th in g a b out th e c ar a s a w ho le b ut to r e v eal i ts i n d iv id ual c harm s a l ittl e a t a
ti m e— a so rt o f auto m oti v e str ip te ase (a p hra se th at W arn o ck co uld n’t w ith p ro per d ig nity use
him se lf b ut w as h ap py to s e e th e
New Y o rk T im es
u se fo r h im ). T he p olic y w as la te r v io la te d n o w
and th en, p urp ose ly o r i n ad verte ntl y . F or o ne th in g, a s th e p re -E dse l D ay s u m mer w ore o n, r e p orte rs
pre v aile d u p on K ra fv e to a uth o riz e W arn o ck to sh o w th e E dse l to th em , o ne a t a ti m e, o n w hat
Warn o ck c alle d a “ p eekab oo,” o r “ yo u’v e-s e en-it- n o w -fo rg et- it,” b asis . A nd , fo r a no th er, E dse ls
lo ad ed o n v ans fo r d eliv ery to d eale rs w ere a p pearin g o n th e h ig hw ays in e v er-in cre asin g n um bers ,
co vere d fo re a nd a ft w ith c anv as fla p s th at, a s if to w het th e d esir e o f th e m oto rin g p ub lic , w ere
fo re v er blo w in g lo ose . T hat su m mer, to o, w as a ti m e of sp eechm akin g by an E dse l fo urs o m e
co nsis ti n g o f K ra fv e, D oyle , J . E m met J u d ge, w ho w as E dse l’s d ir e cto r o f m erc hand is e a nd p ro duct
pla nnin g, and R obert F. G . C opela nd , its assis ta nt genera l sa le s m anager fo r ad verti s in g, sa le s
pro m oti o n, a nd tr a in in g. R angin g se p ara te ly u p a nd d ow n a nd a cro ss th e n ati o n, th e fo ur o ra to rs
moved a ro und s o fa st a nd s o ti r e le ssly th at W arn o ck, le st h e lo se tr a ck o f th em , to ok to in d ic ati n g
th eir w here ab outs w ith c o lo re d p in s o n a m ap in h is o ffic e. “ L et’ s s e e, K ra fv e g o es fr o m A tl a nta to
New O rle ans, D oyle fr o m C ouncil B lu ffs to S alt L ake C ity ,” W arn o ck w ould m use o f a m orn in g in
Dearb orn , s ip pin g h is s e co nd c up o f c o ffe e a nd th en g etti n g u p to y ank th e p in s o ut a nd ja b th em in
again .
Alth o ugh m ost of K ra fv e’s aud ie nces co nsis te d of bankers and re p re se nta ti v es of fin ance
co m panie s w ho i t w as h o ped w ould l e nd m oney to E dse l d eale rs , h is s p eeches th at s u m mer, f a r f r o m
echo in g th e g enera l h o opla , w ere a lm ost s ta te sm anlik e i n th eir c auti o us— ev en s o m ber— re fe re nces to
th e n ew c ar’s p ro sp ects . A nd w ell th ey m ig ht h av e b een, fo r d ev elo pm ents in th e g enera l e co no m ic
outl o ok o f th e n ati o n w ere m akin g m ore s a nguin e m en th an K ra fv e lo ok p uzzle d . In J u ly , 1 957, th e
sto ck m ark et w ent in to a n o se d iv e, m ark in g th e b egin nin g o f w hat is re calle d a s th e re cessio n o f
1958. T hen, e arly in A ugust, a d eclin e in th e s a le s o f m ed iu m -p ric ed 1 957 c ars o f a ll m akes s e t in ,
and th e genera l situ ati o n w ors e ned so ra p id ly th at, b efo re th e m onth w as o ut,
Auto m otiv e N ew s
re p orte d th at d eale rs i n a ll m akes w ere e nd in g th eir s e aso n w ith th e s e co nd -la rg est n um ber o f u nso ld
new c ars in h is to ry . If K ra fv e, o n h is lo nely ro und s, e v er c o nsid ere d re tr e ati n g to D earb orn fo r
co nso la ti o n, h e w as fo rc ed to p ut th at n o ti o n o ut o f h is m in d w hen, a ls o in A ugust, M erc ury , E dse l’s
ow n s ta b le m ate , s e rv ed n o ti c e th at i t w as g o in g to m ake th in gs a s to ugh a s p ossib le f o r th e n ew co m er by u nd erta kin g a m illio n-d olla r, th ir ty -d ay a d verti s in g d riv e a im ed e sp ecia lly a t “ p ric e-c o nsc io us
buyers ” — a c le ar r e fe re nce to th e f a ct th at th e 1 957 M erc ury , w hic h w as th en b ein g s o ld a t a d is c o unt
by m ost d eale rs , c o st le ss th an th e n ew E dse l w as e xp ecte d to . M eanw hile , s a le s o f th e R am ble r,
whic h w as th e o nly A meric an-m ad e s m all c ar th en in p ro ducti o n, w ere b egin nin g to r is e o m in o usly .
In th e fa ce o f a ll th ese e v il p orte nts , K ra fv e fe ll in to th e h ab it o f e nd in g h is s p eeches w ith a r a th er
dow nb eat a necd ote a b out th e b oard c hair m an o f a n u nsu ccessfu l d og-fo od c o m pany w ho s a id to h is
fe llo w d ir e cto rs , “G entl e m en, le t’ s fa ce fa cts — dogs d on’t lik e o ur p ro duct.” “A s fa r as w e’re
co ncern ed ,” K ra fv e a d ded o n a t l e ast o ne o ccasio n, d riv in g h o m e th e m ora l w ith a d m ir a b le c la rity , “ a
lo t w ill d ep end o n w heth er p eo ple l ik e o ur c ar o r n o t.”
But m ost o f th e o th er E dse l m en w ere u nim pre sse d b y K ra fv e’s m is g iv in gs. P erh ap s th e le ast
im pre sse d of all w as Ju d ge, w ho , w hile doin g his bit as an iti n era nt sp eaker, sp ecia liz e d in
co m munity and civ ic gro up s. U nd is m ayed by th e lim ita ti o ns of th e str ip -te ase polic y, Ju d ge
brig hte ned u p h is l e ctu re s b y s h o w in g
s u ch a b ew ild erin g a rra y o f a nim ate d g ra p hs, c arto ons, c harts ,
and p ic tu re s o f p arts o f th e c ar— all f la sh ed o n a C in em aS co pe s c re en— th at h is l is te ners u su ally g o t
halfw ay h o m e b efo re th ey re aliz e d th at h e h ad n’t sh o w n th em a n E dse l. H e w and ere d re stl e ssly
aro und th e a ud ito riu m a s h e s p oke, s h ifti n g th e k ale id osc o pic i m ages o n th e s c re en a t w ill w ith th e a id
of a n a uto m ati c s lid e c hanger— a tr ic k m ad e p ossib le b y a c re w o f e le ctr ic ia ns w ho l a ced th e p la ce i n
ad vance w ith a m aze o f w ir e s lin kin g th e d ev ic e to d oze ns o f flo or s w itc hes, w hic h, s c atte re d a b out
th e h all, re sp ond ed w hen h e k ic ked th em . E ach o f th e “ Ju d ge s p ecta cula rs ,” a s th ese p erfo rm ances
cam e to b e k no w n, c o st th e E dse l D iv is io n fiv e th o usa nd d olla rs — a s u m th at in clu d ed th e p ay a nd
exp ense s o f th e te chnic al c re w , w ho w ould a rriv e o n th e s c ene a d ay o r s o a head o f ti m e to s e t u p th e
ele ctr ic al rig . A t th e la st m om ent, Ju d ge w ould d esc end m elo dra m ati c ally o n th e to w n b y p la ne,
haste n to th e h all, a nd g o i n to h is a ct. “ O ne o f th e g re ate st a sp ects o f th is w ho le E dse l p ro gra m i s th e
philo so phy o f p ro duct a nd m erc hand is in g b ehin d it,” J u d ge m ig ht s ta rt o ff, w ith a d esu lto ry k ic k a t a
sw itc h h ere , a s w itc h th ere . “ A ll o f u s w ho h av e b een a p art o f it a re r e al p ro ud o f th is b ackgro und
and w e a re a nxio usly a w aiti n g i ts s u ccess w hen th e c ar i s i n tr o duced th is f a ll.… N ev er a gain w ill w e
be a sso cia te d w ith a nyth in g a s g ig anti c a nd fu ll o f m eanin g a s th is p arti c ula r p ro gra m .… H ere is a
glim pse o f th e c ar w hic h w ill b e b efo re th e A meric an p ub lic o n S ep te m ber 4 , 1 957 [a t th is p oin t,
Ju d ge w ould s h o w a p ro vocati v e s lid e o f a h ub cap o r s e cti o n o f fe nd er].… It is a d iffe re nt c ar in
ev ery re sp ect, y et it h as a n e le m ent o f c o nse rv ati s m w hic h w ill g iv e it m axim um a p peal.… T he
dis ti n cti v eness o f th e fr o nta l s ty lin g in te gra te s w ith th e s c ulp tu re d p atte rn s o f th e s id e tr e atm ent.… ”
And o n a nd o n Ju d ge w ould rh ap so diz e , ro llin g o ut su ch a w eso m e p hra se s a s “ sc ulp tu re d sh eet
meta l,” “hig hlig ht chara cte r,” and “gra cefu l, flo w in g lin es.” A t la st w ould co m e th e rin gin g
pero ra ti o n. “ W e a re p ro ud o f th e E dse l!” h e w ould c ry , k ic kin g s w itc hes r ig ht a nd le ft. “ W hen it is
in tr o duced th is fa ll, it w ill ta ke its p la ce o n th e str e ets a nd h ig hw ays o f A meric a, b rin gin g n ew
gre atn ess to th e F ord M oto r C om pany. T his i s th e E dse l s to ry .”
TH E
d ru m -ro ll c lim ax o f th e s tr ip te ase w as a th re e-d ay p re ss p re v ie w o f th e E dse l, u nd ra p ed fr o m
pin ched -in s n o ut to f la rin g r e ar, th at w as h eld i n D etr o it a nd D earb orn o n A ugust 2 6th , 2 7th , a nd 2 8th ,
with 2 50 re p orte rs fr o m a ll o ver th e c o untr y in a tte nd ance. It d iffe re d fr o m p re v io us a uto m oti v e
ja m bore es o f its k in d in th at th e jo urn alis ts w ere in v ite d to b rin g th eir w iv es a lo ng— and m any o f
th em d id . B efo re i t w as o ver, i t h ad c o st th e F ord C om pany n in ety th o usa nd d olla rs . G ra nd a s i t w as,
th e c o nv enti o nality o f its se tti n g w as a d is a p poin tm ent to W arn o ck, w ho h ad p ro pose d , a nd se en
re je cte d , th re e lo cale s th at h e th o ught w ould p ro vid e a m ore o ffb eat
am bia nce
—a ste am er o n th e
Detr o it R iv er (“ w ro ng sy m bolis m ”); E dse l, K entu cky (“ in accessib le b y ro ad ”); and H aiti (“ ju st tu rn ed d ow n f la t” ). T hus h o bble d , W arn o ck c o uld d o n o b ette r f o r th e r e p orte rs a nd th eir w iv es w hen
th ey c o nv erg ed o n th e D etr o it sc ene o n S und ay e v enin g, A ugust 2 5th , th an to p ut th em u p a t th e
dis c o ura gin gly n am ed S hera to n-C ad illa c H ote l a nd to a rra nge fo r th em to s p end M ond ay a fte rn o on
hearin g a nd re ad in g a b out th e lo ng-a w aite d d eta ils o f th e e nti r e c ro p o f E dse ls — eig hte en v arie ti e s
av aila b le , in fo ur m ain lin es (C ors a ir, C ita ti o n, P acer, a nd R anger), d iffe rin g m ain ly in th eir s iz e ,
pow er, and tr im . T he next m orn in g, sp ecim ens o f th e m odels th em se lv es w ere re v eale d to th e
re p orte rs in th e s ty lin g c ente r’s ro tu nd a, a nd H enry II o ffe re d a fe w w ord s o f tr ib ute to h is fa th er.
“T he w iv es w ere n o t a sk ed to th e u nv eilin g,” a F oote , C one m an w ho h elp ed p la n th e a ffa ir r e calls .
“It w as to o s o le m n a nd b usin esslik e a n e v ent fo r th at. It w ent o ver fin e. T here w as e xcite m ent e v en
am ong th e hard ened new sp ap erm en.” (T he im port of th e sto rie s th at most of th e excite d
new sp ap erm en file d w as th at th e E dse l s e em ed to b e a g o od c ar, th o ugh n o t s o r a d ic al a s its b illin g
had s u ggeste d .)
In th e a fte rn o on, th e r e p orte rs w ere w his k ed o ut to th e te st tr a ck to s e e a te am o f s tu nt d riv ers p ut
th e E dse l th ro ugh its p aces. T his e v ent, c alc ula te d to b e th rillin g, tu rn ed o ut to b e h air -ra is in g, a nd
ev en, f o r s o m e, a l ittl e u nstr in gin g. E njo in ed n o t to ta lk to o m uch a b out s p eed a nd h o rs e p ow er, s in ce
only a fe w m onth s p re v io usly th e w ho le a uto m obile in d ustr y h ad n o bly re so lv ed to c o ncentr a te o n
makin g cars in ste ad of dela yed -a cti o n
bom bs, W arn o ck had decid ed to em phasiz e th e E dse l’s
liv elin ess th ro ugh d eed s ra th er th an w ord s, a nd to a cco m plis h th is h e h ad h ir e d a te am o f stu nt
driv ers . E dse ls ra n o ver tw o-fo ot ra m ps o n tw o w heels , b ounced fr o m h ig her ra m ps o n a ll fo ur
wheels , w ere d riv en i n c ris sc ro ss p atte rn s, g ra zin g e ach o th er, a t s ix ty o r s e v enty m ile s p er h o ur, a nd
sk id ded in to co m ple te tu rn s at fifty . F or co m ic re lie f, th ere w as a clo w n d riv er p aro dyin g th e
dare d ev il s tu ff. A ll th e w hile , th e v oic e o f N eil L . B lu m e, E dse l’s e ngin eerin g c hie f, c o uld b e h eard
on a l o ud sp eaker, p urrin g a b out “ th e c ap ab iliti e s, th e s a fe ty , th e r u gged ness, th e m aneuv era b ility a nd
perfo rm ance o f th ese n ew c ars ,” a nd s k ir ti n g th e w ord s “ sp eed ” a nd “ ho rs e p ow er” a s d elic ate ly a s a
sa nd pip er s k ir ts a w av e. A t o ne p oin t, w hen a n E dse l le ap in g a h ig h r a m p ju st m is se d tu rn in g o ver,
Kra fv e’s fa ce to ok o n a g hastl y p allo r; h e la te r r e p orte d th at h e h ad n o t k no w n th e d are d ev il s tu nts
were g o in g to b e s o e xtr e m e, a nd w as c o ncern ed b oth f o r th e g o od n am e o f th e E dse l a nd th e l iv es o f
th e d riv ers . W arn o ck, n o ti c in g h is b oss’s d is tr e ss, w ent o ver a nd a sk ed K ra fv e i f h e w as e njo yin g th e
sh o w . K ra fv e r e p lie d te rs e ly th at h e w ould a nsw er w hen i t w as o ver a nd a ll h and s s a fe . B ut e v ery o ne
els e se em ed to b e h av in g a g ra nd ti m e. T he F oote , C one m an sa id , “ Y ou lo oked o ver th is g re en
Mic hig an h ill, a nd th ere w ere th o se g lo rio us E dse ls , p erfo rm in g g lo rio usly i n u nis o n. I t w as b eauti fu l.
It w as l ik e th e R ockette s. I t w as e xciti n g. M ora le w as h ig h.”
Warn o ck’s h ig h s p ir its h ad c arrie d h im to e v en w ild er e xtr e m es o f f a ncy. T he s tu nt d riv in g, l ik e th e
unv eilin g, w as c o nsid ere d to o r ic h f o r th e b lo od o f th e w iv es, b ut th e r e so urc efu l W arn o ck w as r e ad y
fo r th em w ith a fa sh io n s h o w th at h e h o ped th ey w ould fin d a t le ast e q ually d iv erti n g. H e n eed n o t
hav e w orrie d . T he sta r o f th e sh o w , w ho w as in tr o duced b y B ro w n, th e E dse l sty lis t, a s a P aris
co utu riè re
, b oth b eauti fu l a nd ta le nte d , tu rn ed o ut a t th e f in al c urta in to b e a f e m ale i m pers o nato r— a
fa ct o f w hic h W arn o ck, to heig hte n th e v eris im ilitu d e o f th e act, had giv en B ro w n no ad vance
warn in g. T hin gs w ere n ev er a gain q uite th e s a m e s in ce b etw een B ro w n a nd W arn o ck, b ut th e w iv es
were a b le to g iv e th eir h usb and s a n e xtr a p ara gra p h o r tw o f o r th eir s to rie s.
That e v enin g, th ere w as a b ig g ala f o r o ne a nd a ll a t th e s ty lin g
c ente r, w hic h w as i ts e lf s ty le d a s a
nig ht c lu b fo r th e o ccasio n, c o m ple te w ith a fo unta in th at d anced in ti m e w ith th e m usic o f R ay
McK in le y’s b and , w ho se e m ble m , th e l e tte rs “ G M ”— a h o ld over f r o m th e d ays o f i ts f o und er, th e l a te
Gle nn M ille r— was e m bla zo ned , a s u su al, o n th e m usic s ta nd o f e ach m usic ia n, v ery n early r u in in g
th e e v enin g fo r W arn o ck. T he n ext m orn in g, a t a w in d up p re ss c o nfe re nce h eld b y F ord o ffic ia ls . Bre ech d ecla re d o f th e E dse l, “ It’ s a h usk y y o ungste r, a nd , l ik e m ost o th er n ew p are nts , w e’re p ro ud
eno ugh to p op o ur b utto ns.” T hen s e v enty -o ne o f th e r e p orte rs to ok th e w heels o f a s m any E dse ls a nd
se t o ut f o r h o m e— no t to d riv e th e c ars i n to th eir g ara ges b ut to d eliv er th em to th e s h o w ro om s o f th eir
lo cal E dse l d eale rs . L et W arn o ck d esc rib e th e h ig hlig hts o f th is fin al flo uris h : “ T here w ere s e v era l
unfo rtu nate o ccurre nces. O ne g uy s im ply m is c alc ula te d a nd c ra cked u p h is c ar r u nnin g i n to s o m eth in g.
No f a ult o f th e E dse l
th ere
. O ne c ar l o st i ts o il p an, s o n atu ra lly th e m oto r f r o ze . I t c an h ap pen to th e
best o f c ars . F ortu nate ly , a t th e ti m e o f th is m alfu ncti o n th e d riv er w as g o in g th ro ugh a b eauti fu l-
so und in g to w n— Para d is e , K ansa s, I th in k i t w as— and th at g av e th e n ew s r e p orts a b out i t a n ic e l ittl e
positi v e to uch. T he n eare st d eale r g av e th e re p orte r a n ew E dse l, a nd h e d ro ve o n h o m e, c lim bin g
Pik es P eak o n th e w ay. T hen o ne c ar c ra sh ed th ro ugh a to llg ate w hen th e b ra kes f a ile d . T hat w as b ad .
It’ s f u nny, b ut th e th in g w e w ere m ost w orrie d a b out— oth er d riv ers b ein g s o e ager to g et a l o ok a t th e
Edse ls th at th ey’d c ro w d o ur c ars o ff th e r o ad — hap pened o nly o nce. T hat w as o n th e P ennsy lv ania
Turn p ik e. O ne o f o ur r e p orte rs w as to olin g a lo ng— no p ro ble m s— when a P ly m outh d riv er p ulle d u p
alo ngsid e to r u b bern eck, a nd e d ged s o c lo se th at th e E dse l g o t s id esw ip ed . M in o r d am age.”
LA TE
in 1 959, im med ia te ly a fte r th e d em is e o f th e E dse l,
Busin ess W eek
s ta te d th at a t th e b ig p re ss
pre v ie w a F ord e xecuti v e h ad s a id to a r e p orte r, “ If th e c o m pany w ere n’t i n s o d eep , w e n ev er w ould
hav e bro ught it out no w .” H ow ev er, sin ce
Busin ess W eek
negle cte d to pub lis h th is pate ntl y
se nsa ti o nal s ta te m ent f o r o ver tw o y ears , a nd s in ce to th is d ay a ll th e f o rm er r a nkin g E dse l e xecuti v es
(K ra fv e in clu d ed , no tw ith sta nd in g his p re o ccup ati o n w ith
th e lu ckle ss d og-fo od co m pany) fir m ly
main ta in ed th at r ig ht u p to E dse l D ay a nd e v en fo r a s h o rt ti m e th ere afte r th ey e xp ecte d th e E dse l to
su cceed , i t w ould s e em th at th e q uo ta ti o n s h o uld b e r e gard ed a s a h ig hly s u sp ect a rc haeo lo gic al f in d .
In d eed , durin g th e perio d betw een th e pre ss pre v ie w and E dse l D ay th e sp ir it of ev ery b ody
asso cia te d w ith th e v entu re s e em s to h av e b een o ne o f w ild o pti m is m . “ O ld sm obile , G oodbye!” r a n
th e h ead lin e o n a n a d , i n th e D etr o it
Fre e P re ss
, f o r a n a gency th at w as s w itc hin g f r o m O ld s to E dse l.
A d eale r in P ortl a nd , O re go n, r e p orte d th at h e h ad a lr e ad y s o ld tw o E dse ls , s ig ht u nse en. W arn o ck
dug u p a fir e w ork s c o m pany in Ja p an w illin g to m ake h im , a t n in e d olla rs a p ie ce, fiv e th o usa nd
ro ckets th at, e xp lo din g in m id -a ir, w ould re le ase n in e-fo ot s c ale -m odel E dse ls m ad e o f ric e p ap er
th at w ould in fla te a nd d esc end lik e p ara chute s; h is h ead re elin g w ith v is io ns o f fillin g A meric a’s
sk ie s a s w ell a s its h ig hw ays w ith E dse ls o n E dse l D ay, W arn o ck w as a b out to d ash o ff a n o rd er
when K ra fv e, l o okin g s o m eth in g m ore th an p uzzle d , s h o ok h is h ead .
On S ep te m ber 3 rd — E D ay-m in us-o ne— th e p ric es o f th e v ario us E dse l m odels w ere a nno unced ;
fo r c ars d eliv ere d to N ew Y ork th ey r a n fr o m ju st u nd er $ 2,8 00 to ju st o ver $ 4,1 00. O n E D ay, th e
Edse l a rriv ed . In C am brid ge, a b and le d a g le am in g m oto rc ad e o f th e n ew c ars u p M assa chuse tts
Avenue; fly in g o ut o f R ic hm ond , C alifo rn ia , a h elic o pte r h ir e d b y o ne o f th e m ost ju b ila nt o f th e
deale rs l a sso ed b y D oyle s p re ad a g ia nt E dse l s ig n a b ove S an F ra ncis c o B ay; a nd a ll o ver th e n ati o n,
fr o m th e L ouis ia na b ayo us to th e p eak o f M ount R ain ie r to th e M ain e w oods, o ne n eed ed o nly a r a d io
or a te le v is io n s e t to k no w th at th e v ery a ir, d esp ite W arn o ck’s s e tb ack o n th e r o ckets , w as q uiv erin g
with th e p re se nce o f th e E dse l. T he to ne fo r E dse l D ay’s b liz za rd o f p ub lic ity w as s e t b y a n a d ,
pub lis h ed in n ew sp ap ers a ll o ver th e c o untr y , in w hic h th e E dse l s h are d th e s p otl ig ht w ith th e F ord
Com pany’s P re sid ent F ord a nd C hair m an B re ech. I n th e a d , F ord l o oked l ik e a d ig nifie d y o ung f a th er,
Bre ech lik e a d ig nifie d g entl e m an h o ld in g a fu ll h o use a gain st a p ossib le str a ig ht, th e E dse l ju st
lo oked lik e a n E dse l. T he a cco m panyin g te xt d ecla re d th at th e d ecis io n to p ro duce th e c ar h ad b een
“b ase d o n w hat w e k new , g uesse d , fe lt, b elie v ed , s u sp ecte d — ab out y o u,” a nd a d ded , “ Y OU a re th e
re aso n b ehin d th e E dse l.” T he to ne w as c alm a nd c o nfid ent. T here d id n o t s e em to b e m uch r o om f o r doub t a b out th e r e ality o f th at f u ll h o use .
Befo re s u nd ow n, i t w as e sti m ate d , 2 ,8 50,0 00 p eo ple h ad s e en th e n ew c ar i n d eale rs ’ s h o w ro om s.
Thre e d ays la te r, in N orth P hila d elp hia , a n E dse l w as s to le n. It c an re aso nab ly b e a rg ued th at th e
crim e m ark ed th e h ig h-w ate r m ark o f p ub lic a ccep ta nce o f th e E dse l; o nly a f e w m onth s l a te r, a ny b ut
th e l e ast f a sti d io us o f c ar th ie v es m ig ht n o t h av e b oth ere d .
DEC LIN E A ND F A LL
TH E
m ost str ik in g p hysic al c hara cte ris ti c o f th e E dse l w as, o f c o urs e , its ra d ia to r g rille . T his , in
co ntr a st to th e w id e a nd h o riz o nta l g rille s o f a ll n in ete en o th er A meric an m akes o f th e ti m e, w as
sle nd er a nd v erti c al. O f c hro m iu m -p la te d s te el, a nd s h ap ed s o m eth in g l ik e a n e gg, i t s a t i n th e m id dle
of th e c ar’s f r o nt e nd , a nd w as e m bellis h ed b y th e w ord
“E D SE L”
i n a lu m in um l e tte rs r u nnin g d ow n i ts
le ngth . I t w as i n te nd ed to s u ggest th e f r o nt e nd o f p ra cti c ally a ny c ar o f tw enty o r th ir ty y ears a go a nd
of m ost co nte m pora ry E uro pean cars , and th us to lo ok at o nce se aso ned and so phis ti c ate d . T he
tr o ub le w as th at w here as th e fr o nt e nd s o f th e a nti q ues a nd th e E uro pean c ars w ere th em se lv es h ig h
and n arro w — co nsis ti n g, in d eed , o f littl e m ore th an th e ra d ia to r g rille s— th e fr o nt e nd o f th e E dse l
was b ro ad a nd l o w , j u st l ik e th e f r o nt e nd s o f a ll i ts A meric an c o m peti to rs . C onse q uentl y , th ere w ere
wid e a re as o n e ith er s id e o f th e g rille th at h ad to b e f ille d i n w ith s o m eth in g, a nd f ille d i n th ey w ere
—with tw in p anels o f e nti r e ly c o nv enti o nal h o riz o nta l c hro m e g rillw ork . T he e ffe ct w as th at o f a n
Old sm obile w ith th e p ro w o f a P ie rc e-A rro w im pla nte d in its fr o nt e nd , o r, m ore m eta p ho ric ally , o f
th e c harw om an tr y in g o n th e d uchess’ n eckla ce. T he a tte m pt a t s o phis ti c ati o n w as s o tr a nsp are nt a s to
be e nd earin g.
But i f th e g rille o f th e E dse l a p peale d th ro ugh g uile le ssn ess, th e r e ar e nd w as a no th er m atte r. H ere ,
to o, th ere w as a m ark ed d ep artu re
fr o m th e c o nv enti o nal d esig n o f th e d ay. In ste ad o f th e n o to rio us
ta il fin , th e c ar h ad w hat lo oked to its fa ncie rs lik e w in gs a nd to o th ers , le ss e th ere al- m in d ed , lik e
eyeb ro w s. T he lin es o f th e tr u nk lid and th e re ar fe nd ers , sw oopin g up w ard and o utw ard , d id
so m ew hat r e se m ble th e w in gs o f a g ull i n f lig ht, b ut th e r e se m bla nce w as m arre d b y tw o l o ng, n arro w
ta il l ig hts , s e t p artl y i n th e tr u nk l id a nd p artl y i n th e f e nd ers , w hic h f o llo w ed th o se l in es a nd c re ate d
th e s ta rtl in g i llu sio n, e sp ecia lly a t n ig ht, o f a s la nt- e yed g rin . F ro m th e f r o nt, th e E dse l s e em ed , a b ove
all, a nxio us to p le ase , e v en a t th e c o st o f b ein g c lo w nis h ; fr o m th e re ar it lo oked c ra fty , O rie nta l,
sm ug, o ne-u p — mayb e a littl e c ynic al a nd c o nte m ptu o us, to o. It w as a s if, s o m ew here b etw een g rille
and r e ar f e nd ers , a s in is te r p ers o nality c hange h ad ta ken p la ce.
In o th er r e sp ects , th e e xte rio r s ty lin g o f th e E dse l w as n o t fa r o ut o f th e o rd in ary . Its s id es w ere
fe sto oned w ith a b it l e ss th an th e a v era ge a m ount o f c hro m e, a nd d is ti n guis h ed b y a g o uged -o ut b ulle t-
sh ap ed g ro ove e xte nd in g fo rw ard fr o m th e r e ar fe nd er fo r a b out h alf th e le ngth o f th e c ar. M id w ay
alo ng th is g ro ove, th e w ord
“E D SE L”
w as d is p la yed i n c hro m e l e tte rs , a nd j u st b elo w th e r e ar w in d ow
was a sm all g rille -lik e d eco ra ti o n, o n w hic h w as sp elle d o ut— of a ll th in gs—
“E D SE L.”
(A fte r a ll,
had n’t S ty lis t B ro w n d ecla re d h is i n te nti o n to c re ate a v ehic le th at w ould b e “ re ad ily r e co gniz a b le ”?)
In its in te rio r, th e E dse l s tr o ve m ig hti ly to liv e u p to th e p re d ic ti o n o f G enera l M anager K ra fv e th at
th e c ar w ould b e “ th e e p ito m e o f th e p ush -b utto n e ra .” T he p ush -b utto n e ra in m ed iu m -p ric ed c ars
bein g w hat i t w as, K ra fv e’s h ad b een a r a sh p ro phecy i n d eed , b ut th e E dse l r o se to i t w ith a d ev ilis h
asse m bla ge o f gad gets su ch as had se ld om , if ev er, b een se en b efo re . O n o r near th e E dse l’s
dash b oard w ere a p ush b utto n th at p opped th e tr u nk lid o pen; a le v er th at p opped th e h o od o pen; a le v er th at r e le ase d th e p ark in g b ra ke; a s p eed om ete r th at g lo w ed r e d w hen th e d riv er e xceed ed h is
cho se n m axim um s p eed ; a s in gle -d ia l c o ntr o l fo r b oth h eati n g a nd c o olin g; a ta cho m ete r, in th e b est
ra cin g-c ar s ty le ; b utto ns to o pera te o r r e gula te th e lig hts , th e h eig ht o f th e r a d io a nte nna, th e h eate r-
blo w er, th e w in d sh ie ld w ip er, a nd th e c ig are tte l ig hte r; a nd a r o w o f e ig ht r e d l ig hts to
w in k w arn in gs
th at th e e ngin e w as to o h o t, th at it w asn ’t h o t e no ugh, th at th e g enera to r w as o n th e b lin k, th at th e
park in g b ra ke w as o n, th at a d oor w as o pen, th at th e o il p re ssu re w as l o w , th at th e o il l e v el w as l o w ,
and th at th e g aso lin e l e v el w as l o w , th e l a st o f w hic h th e s k ep ti c al d riv er c o uld c o nfir m b y c o nsu lti n g
th e g as g auge, m ounte d a fe w in ches a w ay. E pito m iz in g th is e p ito m e, th e a uto m ati c -tr a nsm is sio n
co ntr o l b ox— arre sti n gly s itu ate d o n to p o f th e s te erin g p ost, in th e c ente r o f th e w heel— sp ro ute d a
gala xy o f fiv e p ush b utto ns s o lig ht to th e to uch th at, a s E dse l m en c o uld h ard ly b e r e str a in ed fr o m
dem onstr a ti n g, th ey c o uld b e d ep re sse d w ith a to oth p ic k.
Of th e fo ur lin es o f E dse ls , b oth o f th e tw o la rg er a nd m ore e xp ensiv e o nes— th e C ors a ir a nd th e
Cita ti o n— were 2 19 i n ches l o ng, o r tw o i n ches l o nger th an th e b ig gest o f th e O ld sm obile s; b oth w ere
eig hty i n ches w id e, o r a b out a s w id e a s p asse nger c ars e v er g et; a nd th e h eig ht o f b oth w as o nly f ifty -
se v en i n ches, a s l o w a s a ny o th er m ed iu m -p ric ed c ar. T he R anger a nd th e P acer, th e s m alle r E dse ls ,
were s ix in ches s h o rte r, a n in ch n arro w er, a nd a n in ch lo w er th an th e C ors a ir a nd th e C ita ti o n. T he
Cors a ir a nd th e C ita ti o n w ere e q uip ped w ith 3 45-h o rs e p ow er e ngin es, m akin g th em m ore p ow erfu l
th an a ny o th er A meric an c ar a t th e ti m e o f th eir d eb ut, a nd th e R anger a nd th e P acer w ere g o od fo r
303 h o rs e p ow er, n ear th e to p i n th eir c la ss. A t th e to uch o f a to oth p ic k to th e “ D riv e” b utto n, a n i d lin g
Cors a ir o r C ita ti o n s e d an ( m ore th an tw o to ns o f c ar, i n e ith er c ase ) c o uld , i f p ro perly s k ip pere d , ta ke
off w ith s u ch a b ru p tn ess th at i n te n a nd th re e-te nth s s e co nd s i t w ould b e d oin g a m ile a m in ute , a nd i n
se v ente en a nd a h alf s e co nd s it w ould b e a q uarte r o f a m ile d ow n th e r o ad . If a nyth in g o r a nyb ody
hap pened to b e i n th e w ay w hen th e to oth p ic k to uched th e p ush b utto n, s o m uch th e w ors e .
WHEN
th e w ra p s w ere ta ken o ff th e E dse l, it r e ceiv ed w hat is k no w n in th e th eatr ic al b usin ess a s a
mix ed p re ss. T he a uto m oti v e e d ito rs o f th e d aily n ew sp ap ers s tu ck m ostl y to s tr a ig ht d esc rip ti o ns o f
th e c ar, w ith o nly h ere a nd th ere a p hra se o r tw o o f a p pra is a l, s o m e o f i t a m big uo us ( “ T he d iffe re nce
in sty le is sp ecta cula r,” n o te d Jo se p h C . In gra ham in th e
New Y o rk T im es
) a nd
so m e o f it o penly
fa v ora b le (“ A h and so m e a nd h ard -p unchin g n ew co m er,” sa id F re d O lm ste ad , in th e D etr o it
Fre e
Pre ss
). M agazin e criti c is m w as genera lly m ore exhausti v e and o ccasio nally m ore se v ere .
Moto r
Tre n d
, th e la rg est m onth ly d ev ote d to o rd in ary a uto m obile s, a s d is ti n ct fr o m h o t r o ds, d ev ote d e ig ht
pages o f i ts O cto ber, 1 957, i s su e to a n a naly sis a nd c riti q ue o f th e E dse l b y J o e H . W herry , i ts D etr o it
ed ito r. W herry lik ed th e c ar’s a p peara nce, its in te rio r c o m fo rt, a nd its g ad gets , a lth o ugh h e d id n o t
alw ays m ake i t c le ar j u st w hy; i n p ayin g h is r e sp ects to th e tr a nsm is sio n b utto ns o n th e s te erin g p ost,
he w ro te , “ Y ou n eed n o t ta ke y o ur e yes o ff th e ro ad fo r a n in sta nt.” H e c o nced ed th at th ere w ere
“unto ld o pportu niti e s fo r m ore … u niq ue a p pro aches,” b ut h e s u m med u p h is o pin io n in a s e nte nce
th at fa ir ly p ep pere d th e E dse l w ith h o no rific a d verb s: “ T he E dse l p erfo rm s fin e, rid es w ell, a nd
hand le s go od.” T om M cC ahill, o f
Mech anix Illu str a te d
, g enera lly a d m ir e d th e “ b olt b ag,” a s h e
affe cti o nate ly calle d th e E dse l, but he had so m e re se rv ati o ns, w hic h, in cid enta lly , th ro w so m e
in te re sti n g lig ht o n an auto m obile criti c ’s eq uiv ale nt o f an ais le se at. “O n rib bed co ncre te ,” he
re p orte d , “ ev ery ti m e I s h o t th e th ro ttl e to th e f lo or q uic kly , th e w heels s p un l ik e a g o ne-w ild W arin g
Ble nd or.… A t hig h sp eed s, esp ecia lly th ro ugh ro ugh co rn ers , I fo und th e su sp ensio n a littl e to o
ho rs e b acky.… I c o uld n’t h elp b ut w ond er w hat th is s a la m i w ould re ally d o if it h ad e no ugh ro ad
ad hesio n.”
By fa r th e m ost d ow nrig ht— and v ery lik ely th e m ost d am agin g— pannin g th at th e E dse l g o t d urin g its fir s t m onth s a p peare d in th e Ja nuary , 1 958, is su e o f th e C onsu m ers U nio n m onth ly ,
Consu m er
Rep orts
, w ho se 8 00,0 00 s u b sc rib ers p ro bab ly in clu d ed m ore p ote nti a l E dse l b uyers th an h av e e v er
tu rn ed th e p ages o f
Moto r T re n d
o r
Mech anix I llu str a te d
. A fte r h av in g p ut a C ors a ir th ro ugh a s e rie s
of r o ad te sts ,
Consu m er R ep orts
d ecla re d :
The E dse l h as n o im porta nt b asic a dvanta ges o ver o th er b ra nds. T he c ar is a lm ost e ntir e ly c onventio nal in c onstr u ctio n.… T he a m ount o f
sh ake p re se nt in th is C ors a ir b ody o n r o ugh r o ads— whic h w asn ’t lo ng in m akin g it s e lf h eard a s s q ueaks a nd r a ttle s— went w ell b eyond
any a ccepta ble lim it .… T he C ors a ir ’s h andlin g q ualit ie s— slu ggis h , o ver-s lo w s te erin g, s w ay a nd le an o n tu rn s, a nd a g enera l d eta ched-
fro m -th e-ro ad
f e el— are , to p ut it m ild ly , w it h out d is tin ctio n. A s a m atte r o f, s im ple f a ct, c om bin ed w it h th e c ar’s te ndency to s h ake lik e
je lly , E dse l h andlin g r e pre se nts r e tr o gre ssio n r a th er th an p ro gre ss.… S te ppin g o n th e g as in tr a ffic , o r in p assin g c ars , o r ju st to f e el th e
ple asu ra ble s u rg e o f p ow er, w ill c ause th ose b ig c ylin ders r e ally to la p u p f u el. … T he c ente r o f th e s te erin g w heel is n ot, in C U ’s o pin io n,
a g ood p ush butto n lo catio n.… T o lo ok a t th e E dse l b utto ns p ulls th e d riv er’s e yes c le ar d ow n o ff th e ro ad. [
Pace
M r. W herry .] T he
“lu xury -lo aded” E dse l— as o ne m agazin e c over d esc rib ed it — will c erta in ly p le ase a nyone w ho c onfu se s g adgetr y w it h tr u e lu xury .
Thre e m onth s l a te r, i n a r o und up o f a ll th e 1 958-m odel c ars ,
Consu m er R ep orts
w ent a t th e E dse l
again , c allin g it “ m ore u se le ssly o verp ow ere d … m ore g ad get b ed ecked , m ore h ung w ith e xp ensiv e
accesso rie s th an any car in its p ric e cla ss,” and giv in g th e C ors a ir and th e C ita ti o n th e b otto m
positi o n i n i ts c o m peti ti v e r a ti n gs. L ik e K ra fv e,
Consu m er R ep orts
c o nsid ere d th e E dse l a n e p ito m e;
unlik e K ra fv e, th e m agazin e c o nclu d ed th at th e c ar s e em ed to “ ep ito m iz e th e m any e xcesse s” w ith
whic h D etr o it m anufa ctu re rs w ere “ re p uls in g m ore a nd m ore p ote nti a l c ar b uyers .”
AND
y et, i n a w ay, th e E dse l w asn ’t s o b ad . I t e m bodie d m uch o f th e s p ir it o f i ts ti m e— or a t l e ast o f
th e ti m e w hen i t w as d esig ned , e arly i n 1 955. I t w as c lu m sy, p ow erfu l, d ow dy, g auche, w ell- m eanin g
—a d e K oonin g w om an. F ew p eo ple , a p art fr o m e m plo yees o f F oote , C one & B eld in g, w ho w ere
paid to d o s o , h av e a d eq uate ly h ym ned i ts a b ility , a t i ts b est, to c o ax a nd j o lly th e h arrie d o w ner i n to
a s e nse o f w ell- b ein g. F urth erm ore , th e d esig ners o f s e v era l r iv al m akes, i n clu d in g C hev ro le t, B uic k,
and F ord , E dse l’s o w n s ta b le m ate , l a te r f la tte re d B ro w n’s s ty lin g b y i m ita ti n g a t l e ast o ne f e atu re o f
th e c ar’s m uch r e v ile d lin es— th e r e ar-e nd w in g th em e. T he E dse l w as o bvio usly jin xed , b ut to s a y
th at i t w as j in xed b y i ts d esig n a lo ne w ould b e a n o vers im plific ati o n, a s i t w ould b e to s a y th at i t w as
jin xed b y a n e xcess o f m oti v ati o nal r e se arc h. T he f a ct i s th at i n th e s h o rt, u nhap py l ife o f th e E dse l a
num ber o f o th er fa cto rs co ntr ib ute d to its co m merc ia l d ow nfa ll. O ne o f th ese w as th e sc arc ely
belie v ab le c ir c um sta nce
th at m any o f th e v ery fir s t E dse ls — th o se o bvio usly d esti n ed fo r th e m ost
gla rin g p ub lic l im elig ht— were d ra m ati c ally i m perfe ct. B y i ts p re lim in ary p ro gra m o f p ro m oti o n a nd
ad verti s in g, th e F ord C om pany h ad b uilt u p a n o verw helm in g h ead o f p ub lic in te re st in th e E dse l,
causin g its a rriv al to b e a nti c ip ate d a nd th e c ar its e lf to b e g aw ked a t w ith m ore e agern ess th an h ad
ev er g re ete d a ny a uto m obile b efo re it. A fte r a ll th at, it s e em ed , th e c ar d id n’t q uite w ork . W ith in a
fe w w eeks afte r th e E dse l w as in tr o duced , its p ra tf a lls w ere th e ta lk o f th e la nd . E dse ls w ere
deliv ere d w ith o il le aks, s ti c kin g h o ods, tr u nks th at w ould n’t o pen, a nd p ush b utto ns th at, fa r fr o m
yie ld in g to a to oth p ic k, c o uld n’t b e b ud ged w ith a h am mer. A n o bvio usly d is tr a ught m an s ta ggere d
in to a b ar u p th e H ud so n R iv er, d em and in g a d oub le sh o t w ith o ut d ela y a nd e xcla im in g th at th e
dash b oard o f h is n ew E dse l h ad ju st b urs t in to fla m e.
Auto m otiv e N ew s
r e p orte d th at in g enera l th e
earlie st E dse ls s u ffe re d fr o m p oor p ain t, in fe rio r s h eet m eta l, a nd fa ulty a ccesso rie s, a nd q uo te d th e
la m ent o f a d eale r a b out o ne o f th e fir s t E dse l c o nv erti b le s h e re ceiv ed : “ T he to p w as b ad ly s e t,
doors c o ckeyed , th e h ead er b ar tr im med a t th e w ro ng a ngle , a nd th e fr o nt s p rin gs s a gged .” T he F ord
Com pany h ad th e p arti c ula r b ad l u ck to s e ll to C onsu m ers U nio n— whic h b uys i ts te st c ars i n th e o pen
mark et, a s a p re cauti o n a gain st b ein g fa v ore d w ith s p ecia lly d octo re d s a m ple s— an E dse l in w hic h
th e a xle r a ti o w as w ro ng, a n e xp ansio n p lu g i n th e c o olin g s y ste m b le w o ut, th e p ow er-s te erin g p um p le aked , th e r e ar-a xle g ears w ere n o is y, a nd th e h eate r e m itte d b la sts o f h o t a ir w hen i t w as tu rn ed o ff.
A fo rm er e xecuti v e o f th e E dse l D iv is io n h as e sti m ate d th at o nly a b out h alf o f th e fir s t E dse ls r e ally
perfo rm ed p ro perly .
A la ym an c anno t h elp w ond erin g h o w th e F ord C om pany, in a ll its p ow er a nd g lo ry , c o uld h av e
been g uilty o f s u ch a M ack S ennett r o uti n e o f b uild up a nd a nti c lim ax. T he w an, h ard -w ork in g K ra fv e
exp la in s g am ely th at w hen a c o m pany b rin gs o ut a n ew m odel o f a ny m ake— ev en a n o ld a nd te ste d
one— th e fir s t c ars o fte n h av e b ugs in th em . A m ore s ta rtl in g th eo ry — th o ugh o nly a th eo ry — is th at
th ere m ay h av e b een s a b ota ge in s o m e o f th e fo ur p la nts th at a sse m ble d th e E dse l, a ll b ut o ne o f
whic h h ad p re v io usly b een, a nd c urre ntl y a ls o w ere , a sse m blin g F ord s o r
M erc ury s. I n m ark eti n g th e
Edse l, th e F ord C om pany to ok a le af o ut o f th e b ook o f G enera l M oto rs , w hic h fo r years had
su ccessfu lly b een p erm itti n g, and ev en enco ura gin g, th e m akers and se lle rs o f its O ld sm obile s,
Buic ks, P onti a cs, a nd th e h ig her-p ric ed m odels o f i ts C hev ro le t to f ig ht f o r c usto m ers w ith n o q uarte r
giv en; fa ced w ith th e s a m e s o rt o f in tr a m ura l c o m peti ti o n, s o m e m em bers o f th e F ord a nd L in co ln -
Merc ury D iv is io ns o f th e F ord C om pany o penly ho ped fr o m th e sta rt fo r th e E dse l’s d ow nfa ll.
(K ra fv e, r e aliz in g w hat m ig ht h ap pen, h ad a sk ed th at th e E dse l b e a sse m ble d i n p la nts o f i ts o w n, b ut
his su p erio rs tu rn ed h im d ow n.) H ow ev er, D oyle , sp eakin g w ith th e a uth o rity o f a v ete ra n o f th e
auto m obile b usin ess a s w ell a s w ith th at o f K ra fv e’s s e co nd -in -c o m mand , p ooh-p oohs th e n o ti o n th at
th e E dse l w as th e v ic ti m o f d ir ty w ork a t th e p la nts . “ O f c o urs e th e F ord a nd L in co ln -M erc ury
Div is io ns d id n’t w ant to s e e a no th er F ord C om pany c ar in th e fie ld ,” h e s a ys, “ b ut a s fa r a s I k no w ,
anyth in g th ey d id a t th e e xecuti v e a nd p la nt l e v els w as i n c o m peti ti v e g o od ta ste . O n th e o th er h and , a t
th e dis tr ib uti o n and deale r le v el, yo u go t so m e ro ugh in fig hti n g in te rm s of w his p erin g and
pro pagand a. If I’ d b een in o ne o f th e o th er d iv is io ns, I’ d h av e d one th e sa m e th in g.” N o p ro ud
defe ate d g enera l o f th e o ld s c ho ol e v er s p oke m ore n o bly .
It is a tr ib ute o f s o rts to th e m en w ho g av e th e E dse l its b ig b uild up th at a lth o ugh c ars te nd in g to
ra ttl e , b alk , a nd f a ll a p art i n to s h in y h eap s o f j u nk k ep t c o m in g o ff th e a sse m bly l in es, th in gs d id n’t g o
bad ly a t fir s t. D oyle sa ys th at o n E dse l D ay m ore th an 6 ,5 00 E dse ls w ere e ith er o rd ere d b y o r
actu ally deliv ere d to custo m ers . T hat w as a go od sh o w in g, but th ere w ere is o la te d sig ns of
re sis ta nce. F or in sta nce, a N ew E ngla nd d eale r se llin g E dse ls in o ne sh o w ro om and B uic ks in
ano th er r e p orte d th at tw o p ro sp ects w alk ed in to th e E dse l s h o w ro om , to ok a lo ok a t th e E dse l, a nd
pla ced o rd ers f o r B uic ks o n th e s p ot.
In th e n ext fe w d ays, s a le s d ro pped s h arp ly , b ut th at w as to b e e xp ecte d o nce th e b lo om w as o ff.
Auto m obile d eliv erie s to d eale rs — one o f th e im porta nt in d ic ato rs in th e tr a d e— are custo m arily
measu re d in te n-d ay p erio ds, a nd d urin g th e fir s t te n d ays o f S ep te m ber, o n o nly s ix o f w hic h th e
Edse l w as o n s a le , it r a cked
u p 4 ,0 95; th is w as lo w er th an D oyle ’s fir s t- d ay fig ure b ecause m any o f
th e in iti a l p urc hase s w ere o f m odels a nd c o lo r c o m bin ati o ns n o t in s to ck, w hic h h ad to b e fa cto ry -
asse m ble d to o rd er. T he d eliv ery to ta l f o r th e s e co nd te n-d ay p erio d w as o ff s lig htl y , a nd th at f o r th e
th ir d w as d ow n to ju st u nd er 3 ,6 00. F or th e fir s t te n d ays o f O cto ber, n in e o f w hic h w ere b usin ess
days, th ere w ere o nly 2 ,7 51 d eliv erie s— an a v era ge o f j u st o ver th re e h und re d c ars a d ay. I n o rd er to
se ll th e 2 00,0 00 c ars p er y ear th at w ould m ake th e E dse l o pera ti o n p ro fita b le th e F ord C om pany
would h av e to m ove a n a v era ge o f b etw een s ix a nd s e v en h und re d e ach b usin ess d ay— a g o od m any
more th an th re e hund re d a d ay. O n th e nig ht o f S und ay, O cto ber 1 3th , F ord p ut o n a m am moth
te le v is io n s p ecta cula r f o r E dse l, p re -e m pti n g th e ti m e o rd in arily a llo tte d to th e E d S ulliv an s h o w , b ut
th o ugh th e p ro gra m c o st $ 400,0 00 a nd s ta rre d B in g C ro sb y a nd F ra nk S in atr a , it fa ile d to c ause a ny
sh arp s p urt i n s a le s. N ow i t w as o bvio us th at th in gs w ere n o t g o in g a t a ll w ell.
Among th e fo rm er e xecuti v es o f th e E dse l D iv is io n, o pin io ns d iffe r a s to th e e xact m om ent w hen th e p orte nts o f d oom b ecam e u nm is ta kab le . K ra fv e f e els th at th e m om ent d id n o t a rriv e u nti l s o m eti m e
la te in O cto ber. W alla ce, in h is c ap acity a s E dse l’s p ip e-s m okin g s e m i- B ra in T ru ste r, g o es a s te p
fu rth er b y p in nin g th e s ta rt o f th e d is a ste r to a s p ecific d ate — Octo ber 4 th , th e d ay th e fir s t S ovie t
sp utn ik w ent in to o rb it, s h atte rin g th e m yth o f A meric an te chnic al p re -e m in ence a nd p re cip ita ti n g a
pub lic r e v uls io n a gain st D etr o it’ s f a ncie r b aub le s. P ub lic R ela ti o ns D ir e cto r W arn o ck m ain ta in s th at
his b aro m etr ic s e nsiti v ity to th e p ub lic te m per e nab le d h im to c all th e tu rn a s e arly a s m id -S ep te m ber;
co ntr a riw is e , D oyle sa ys h e m ain ta in ed h is o pti m is m u nti l m id -N ovem ber, b y w hic h ti m e h e w as
ab out th e o nly m an in th e d iv is io n w ho h ad n o t c o nclu d ed it w ould ta ke a m ir a cle to s a v e th e E dse l.
“In N ovem ber,” s a ys W alla ce, s o cio lo gic ally , “ th ere w as p anic , a nd its c o nco m ita nt— mob a cti o n.”
The m ob a cti o n to ok th e fo rm o f a c o ncerte d te nd ency to b la m e th e d esig n o f th e c ar fo r th e w ho le
deb acle ; E dse l m en w ho h ad p re v io usly h ad n o th in g b ut l a v is h p ra is e f o r th e r a d ia to r g rille a nd r e ar
end n o w w ent a ro und m utte rin g th at a ny fo ol c o uld s e e th ey w ere lu d ic ro us. T he
o bvio us s a crific ia l
vic ti m w as B ro w n, w ho se s to ck h ad g o ne th ro ugh th e r o of a t th e ti m e o f th e r e gally a cco la d ed d eb ut
of h is d esig n, i n A ugust, 1 955. N ow , w ith o ut h av in g d one a nyth in g f u rth er, f o r e ith er b ette r o r w ors e ,
th e p oor fe llo w b ecam e th e c o m pany s c ap ego at. “ B egin nin g in N ovem ber, n o body ta lk ed to R oy,”
Walla ce s a ys. O n N ovem ber 2 7th , a s i f th in gs w ere n’t b ad e no ugh, C harle s K re is le r, w ho a s th e o nly
Edse l deale r in M anhatta n pro vid ed its priz e sh o w case , anno unced th at he w as tu rn in g in his
fr a nchis e b ecause o f p oor s a le s, a nd it w as r u m ore d th at h e a d ded , “ T he F ord M oto r C om pany h as
la id a n e gg.” H e th ere up on s ig ned u p w ith A meric an M oto rs to s e ll its R am ble r, w hic h, a s th e o nly
dom esti c s m all c ar th en o n th e m ark et, w as a lr e ad y th e p osse sso r o f a z o om in g s a le s c urv e. D oyle
grim ly c o m mente d th at th e E dse l D iv is io n w as “ no t c o ncern ed ” a b out K re is le r’s d efe cti o n.
By D ecem ber, th e p anic a t E dse l h ad a b ate d to th e p oin t w here i ts s p onso rs c o uld p ull th em se lv es
to geth er a nd b egin c asti n g a b out fo r w ays to g et sa le s m ovin g a gain . H enry F ord II, m anife sti n g
him se lf to E dse l d eale rs o n c lo se d -c ir c uit te le v is io n, u rg ed th em to r e m ain c alm , p ro m is e d th at th e
co m pany w ould b ack th em to th e lim it, a nd s a id fla tl y , “ T he E dse l is h ere to s ta y.” A m illio n a nd a
half le tte rs w ent o ut o ver K ra fv e’s s ig natu re to o w ners o f m ed iu m -p ric ed c ars , a sk in g th em to d ro p
aro und a t th eir lo cal d eale rs a nd te st- rid e th e E dse l; e v ery o ne d oin g s o , K ra fv e p ro m is e d , w ould b e
giv en a n e ig ht- in ch p la sti c s c ale m odel o f th e c ar, w heth er h e b ought a f u ll- s iz e o ne o r n o t. T he E dse l
Div is io n p ic ked u p th e c heck fo r th e sc ale m odels — a sy m pto m o f d esp era ti o n in d eed , fo r u nd er
no rm al c ir c um sta nces n o a uto m obile m anufa ctu re r w ould m ake e v en a m ove to o utf u m ble its d eale rs
fo r s u ch a ta b . ( U p to th at ti m e, th e d eale rs h ad p aid fo r e v ery th in g, a s is c usto m ary .) T he d iv is io n
als o b egan o ffe rin g its d eale rs w hat it c alle d “ sa le s b onuse s,” w hic h m eant th at th e d eale rs c o uld
kno ck a nyth in g fr o m o ne h und re d to th re e h und re d d olla rs o ff th e p ric e o f e ach c ar w ith o ut r e d ucin g
th eir p ro fit m arg in . K ra fv e to ld a r e p orte r th at s a le s u p to th en w ere a b out w hat h e h ad e xp ecte d th em
to b e, a lth o ugh n o t w hat h e h ad h o ped th ey w ould b e; in h is z e al n o t to s e em u np le asa ntl y s u rp ris e d ,
he
a p peare d to b e s a yin g th at h e h ad e xp ecte d th e E dse l to fa il. T he E dse l’s a d verti s in g c am paig n,
whic h h ad s ta rte d w ith s tu d ie d d ig nity , b egan to s o und a n o te o f s tr id ency. “ E very o ne w ho h as s e en i t
kno w s— with u s— th at th e E dse l is a s u ccess,” a m agazin e a d d ecla re d , a nd in a la te r a d th is p hra se
was tw ic e r e p eate d , lik e a n in canta ti o n: “ T he E dse l is a s u ccess. It is a n ew id ea— a
YOU
id ea— on
th e A meric an R oad .… T he E dse l is a s u ccess.” S oon th e e v en le ss h ig h-to ned b ut m ore d ep end ab le
ad verti s in g th em es o f p ric e a nd s o cia l s ta tu s b egan to in tr u d e, in s u ch s e nte nces a s “ T hey’ll k no w
yo u’v e
arriv ed
w hen y o u d riv e u p in a n E dse l” a nd “ T he o ne th at’ s r e ally n ew is th e lo w est- p ric ed ,
to o!” I n th e m ore r a re fie d s e cto rs o f M ad is o n A venue, a r e so rt to r h ym ed s lo gans i s u su ally r e gard ed
as a n i n d ic ati o n o f a rti s ti c d ep ra v ity i n d uced b y c o m merc ia l n ecessity .
Fro m th e fr a nti c a nd c o stl y m easu re s th e E dse l D iv is io n to ok in D ecem ber, it g arn ere d o ne ti n y cru m b: fo r th e fir s t te n-d ay p erio d o f 1 958, it w as a b le to re p ort, s a le s w ere u p 1 8.6 p erc ent o ver
th o se o f th e la st te n d ays o f 1 957. T he c atc h, a s th e
Wall S tr e et J o urn al
a le rtl y n o te d , w as th at th e
la tte r p erio d e m bra ced o ne m ore s e llin g d ay th an th e e arlie r o ne, s o , f o r p ra cti c al p urp ose s, th ere h ad
sc arc ely b een a g ain a t a ll. I n a ny c ase , th at e arly -J a nuary w ord o f m ere tr ic io us c heer tu rn ed o ut to b e
th e E dse l D iv is io n’s la st g estu re . O n J a nuary 1 4, 1 958, th e F ord M oto r C om pany a nno unced th at it
was c o nso lid ati n g th e E dse l D iv is io n w ith th e L in co ln -M erc ury D iv is io n to fo rm a M erc ury -E dse l-
Lin co ln D iv is io n, u nd er th e m anagem ent o f J a m es J . N ance, w ho h ad b een r u nnin g L in co ln -M erc ury .
It w as th e fir s t ti m e th at o ne o f th e m ajo r a uto m obile c o m panie s h ad lu m ped th re e d iv is io ns in to o ne
sin ce G enera l M oto rs ’ m erg er o f B uic k, O ld sm obile , a nd P onti a c b ack in th e d ep re ssio n, a nd to th e
peo ple o f th e e xp unged E dse l D iv is io n th e m eanin g o f th e a d m in is tr a ti v e m ove w as a ll to o c le ar.
“W ith th at m uch c o m peti ti o n i n a d iv is io n, th e E dse l w asn ’t g o in g a nyw here ,” D oyle s a ys. “ It b ecam e
a s te p child .”
FO R
th e la st y ear a nd te n m onth s o f its e xis te nce, th e E dse l w as v ery m uch a s te p child — genera lly
negle cte d , l ittl e a d verti s e d , a nd k ep t a liv e o nly to a v oid p ub lic iz in g a b oner a ny m ore th an n ecessa ry
and in th e fo rlo rn ho pe th at it
mig ht
g o so m ew here a fte r a ll. W hat a d verti s in g it d id g et str o ve
quix o ti c ally to a ssu re th e a uto m obile tr a d e th at e v ery th in g w as d and y; in m id -F eb ru ary a n a d in
Auto m otiv e N ew s
h ad N ance s a yin g,
Sin ce th e f o rm atio n o f th e n ew M -E -L D iv is io n a t F ord M oto r C om pany, w e h ave a naly ze d w it h k een in te re st th e s a le s p ro gre ss o f th e
Edse l. W e th in k it is q uit e s ig nif ic ant th at d urin g th e f iv e m onth s s in ce th e E dse l w as in tr o duced, E dse l s a le s h ave b een g re ate r th an th e
fir s t fiv e m onth s’ s a le s fo r a ny o th er n ew m ake o f c ar e ver in tr o duced o n th e A meric an R oad.… E dse l’ s s te ady p ro gre ss c an b e a
so urc e o f s a tis fa ctio n a nd a g re at in centiv e to a ll o f u s.
Nance’s c o m paris o n, h o w ev er, w as a lm ost m eanin gle ss, n o n ew m ake e v er h av in g b een in tr o duced
anyth in g l ik e s o g ra nd io se ly , a nd th e n o te o f c o nfid ence c o uld n o t h elp r in gin g h o llo w .
It is q uite p ossib le th at N ance’s a tte nti o n w as n ev er c alle d to a n a rti c le b y S . I. H ayakaw a, th e
se m anti c is t, th at w as p ub lis h ed in th e sp rin g o f 1 958 in
ETC : A R evie w o f G en era l S em antic s
, a
quarte rly m agazin e, u nd er th e ti tl e , “ W hy th e E dse l L aid a n E gg.” H ayakaw a, w ho w as b oth th e
fo und er a nd th e e d ito r o f
ETC
, e xp la in ed i n a n i n tr o ducto ry n o te th at h e c o nsid ere d th e s u b je ct w ith in
th e p urv ie w o f g enera l se m anti c s b ecause a uto m obile s, lik e w ord s, a re “ im porta nt … sy m bols in
Americ an c ultu re ,” a nd w ent o n to a rg ue th at th e E dse l’s flo p c o uld b e a ttr ib ute d to F ord C om pany
executi v es w ho h ad b een “ lis te nin g to o lo ng to th e m oti v ati o n-re se arc h p eo ple ” a nd w ho , in th eir
effo rts to tu rn o ut a c ar th at w ould sa ti s fy c usto m ers ’ se xual fa nta sie s a nd th e lik e, h ad fa ile d to
su p ply r e aso nab le a nd p ra cti c al tr a nsp orta ti o n, th ere b y n egle cti n g “ th e r e ality p rin cip le .” “ W hat th e
moti v ati o n r e se arc hers f a ile d to te ll th eir c lie nts … i s th at
only
th e p sy cho ti c a nd th e g ra v ely n euro ti c
act o ut
th eir i r ra ti o naliti e s a nd th eir c o m pensa to ry f a nta sie s,” H ayakaw a a d m onis h ed D etr o it b ris k ly ,
and a d ded , “ T he tr o ub le w ith s e llin g s y m bolic g ra ti fic ati o n v ia s u ch e xp ensiv e i te m s a s … th e E dse l
Herm ap hro dite … is th e c o m peti ti o n o ffe re d b y m uch c heap er fo rm s o f s y m bolic g ra ti fic ati o n, s u ch
as
Pla yb oy
( fifty c ents a c o py),
Asto undin g S cie n ce F ic tio n
( th ir ty -fiv e c ents a c o py), a nd te le v is io n
(fr e e).”
Notw ith sta nd in g th e c o m peti ti o n fr o m
Pla yb oy
, o r p ossib ly b ecause th e s y m bol- m oti v ate d p ub lic
in clu d ed p eo ple w ho c o uld a ffo rd b oth , th e E dse l k ep t ro llin g— but ju st b are ly . T he c ar m oved , a s
sa le sm en s a y, th o ugh h ard ly a t th e to uch o f a to oth p ic k. I n f a ct, a s a s te p child i t s o ld a b out a s w ell a s
it h ad s o ld a s a fa v orite s o n, s u ggesti n g th at a ll th e h o opla , w heth er a b out s y m bolic g ra ti fic ati o n o r
mere h o rs e p ow er, h ad h ad littl e e ffe ct o ne w ay o r th e o th er. T he n ew E dse ls th at w ere re gis te re d with th e m oto r-v ehic le b ure aus o f th e v ario us s ta te s d urin g 1 958 n um bere d 3 4,4 81— co nsid era b ly
fe w er th an n ew c ars o f a ny c o m peti n g m ake, a nd l e ss th an o ne-fifth o f th e 2 00,0 00 a y ear n ecessa ry i f
th e E dse l w as to s h o w a p ro fit, b ut s ti ll r e p re se nti n g a n in v estm ent b y m oto ris ts o f o ver a h und re d
millio n d olla rs . T he p ic tu re a ctu ally b rig hte ned in N ovem ber, 1 958, w ith th e a d vent o f th e E dse l’s
se co nd -y ear m odels . S ho rte r b y u p to e ig ht in ches, lig hte r b y u p to fiv e h und re d p ound s, a nd w ith
engin es l e ss p ote nt b y a s m uch a s 1 58 h o rs e p ow er, th ey h ad a p ric e r a nge r u nnin g f r o m f iv e h und re d
to e ig ht h und re d d olla rs l e ss th an th at o f th eir p re d ecesso rs . T he v erti c al g rille a nd th e s la nt- e yed r e ar
end w ere s ti ll th ere , b ut th e m odest p ow er a nd p ro porti o ns p ers u ad ed
Consu m er R ep orts
to re le nt
and s a y, “ T he F ord M oto r C om pany, a fte r g iv in g la st y ear’s in iti a l E dse l m odel a b la ck e ye, h as
mad e a r e sp ecta b le a nd e v en l ik ab le a uto m obile o f i t.” Q uite a n um ber o f m oto ris ts s e em ed to a gre e;
ab out tw o th o usa nd m ore E dse ls w ere s o ld i n th e f ir s t h alf o f 1 959 th an h ad b een s o ld i n th e f ir s t h alf
of 1 958, a nd b y th e e arly s u m mer o f 1 959 th e c ar w as m ovin g a t th e r a te o f a ro und fo ur th o usa nd a
month . H ere , a t la st, w as p ro gre ss; s a le s w ere a t a lm ost a q uarte r o f th e m in im um p ro fita b le ra te ,
in ste ad o f a m ere f ifth .
On J u ly 1 , 1 959, th ere w ere 8 3,8 49 E dse ls o n th e c o untr y ’s ro ad s. T he la rg est n um ber (8 ,3 44)
were in C alifo rn ia , w hic h is p ere nnia lly b ese t w ith fa r and aw ay th e la rg est num ber o f cars o f
pra cti c ally a ll m akes, a nd th e s m alle st n um ber w ere in A la sk a, V erm ont, a nd H aw aii ( 1 22, 1 1 9, a nd
11 0, re sp ecti v ely ). A ll in a ll, th e E dse l se em ed to h av e fo und a n ic he fo r its e lf a s a n a m usin gly
eccentr ic curio sity . A lth o ugh th e F ord C om pany, w ith its sto ckho ld ers ’ m oney sti ll d is a p pearin g
week a fte r w eek i n to th e E dse l, a nd
w ith s m all c ars n o w c le arly th e o rd er o f th e d ay, c o uld s c arc ely
affe ct a s e nti m enta l a p pro ach to th e s u b je ct, i t n o neth ele ss to ok a n o uts id e c hance a nd , i n m id -O cto ber
of 1 959, b ro ught o ut a th ir d s e rie s o f a nnual m odels . T he 1 960 E dse l a p peare d a littl e m ore th an a
month a fte r th e F alc o n, F ord ’s fir s t— and in sta ntl y s u ccessfu l— ventu re in to th e s m all- c ar fie ld , a nd
was s c arc ely a n E dse l a t a ll; g o ne w ere b oth th e v erti c al g rille a nd th e h o riz o nta l r e ar e nd , a nd w hat
re m ain ed lo oked lik e a c ro ss b etw een a F ord F air la ne a nd a P onti a c. Its in iti a l s a le s w ere a b ysm al;
by th e m id dle o f N ovem ber o nly o ne p la nt— in L ouis v ille , K entu cky— was s ti ll tu rn in g o ut E dse ls ,
and it w as tu rn in g o ut o nly a b out tw enty a d ay. O n N ovem ber 1 9th , th e F ord F ound ati o n, w hic h w as
pla nnin g to se ll a blo ck of its vast ho ld in gs of sto ck in th e F ord M oto r C om pany, is su ed th e
pro sp ectu s th at is re q uir e d b y la w u nd er s u ch c ir c um sta nces, a nd s ta te d th ere in , in a fo otn o te to a
se cti o n d esc rib in g th e c o m pany’s p ro ducts , th at th e E dse l h ad b een “ in tr o duced in S ep te m ber 1 957
and d is c o nti n ued in N ovem ber 1 959.” T he s a m e d ay, th is m um ble d a d m is sio n w as c o nfir m ed a nd
am plifie d b y a F ord C om pany sp okesm an, w ho d id so m e m um blin g o f h is o w n. “ If w e k new th e
re aso n p eo ple a re n’t b uyin g th e E dse l, w e’d p ro bab ly h av e d one s o m eth in g a b out i t,” h e s a id .
The f in al q uanti ta ti v e b ox s c o re s h o w s th at f r o m th e b egin nin g r ig ht u p to N ovem ber 1 9th , 1 1 0,8 10
Edse ls w ere p ro duced and 1 09,4 66 w ere so ld . (T he re m ain in g 1 ,3 44, alm ost all o f th em 1 960
models , w ere d is p ose d o f in s h o rt o rd er w ith th e h elp o f d ra sti c p ric e c uts .) A ll to ld , o nly 2 ,8 46 o f
th e 1 960 E dse ls w ere e v er p ro duced , m akin g m odels o f th at y ear a p ote nti a l c o lle cto r’s ite m . T o b e
su re , it w ill b e g enera ti o ns b efo re 1 960 E dse ls a re a s s c arc e a s th e T yp e 4 1 B ugatti , o f w hic h n o
more th an e le v en s p ecim ens w ere m ad e, b ack i n th e l a te tw enti e s, to b e s o ld o nly to b ona-fid e k in gs,
and th e 1960 Edse l’s re aso ns fo r bein g a ra rity are no t exactl y as accep ta b le , so cia lly or
co m merc ia lly , a s th e T yp e 4 1 B ugatti ’ s . S ti ll, a 1 960-E dse l O w ners ’ C lu b m ay y et a p pear.
The fin al fis c al b ox s c o re o n th e E dse l fia sc o w ill p ro bab ly n ev er b e k no w n, b ecause th e F ord
Moto r C om pany’s p ub lic r e p orts d o n o t i n clu d e b re akd ow ns o f g ain s a nd l o sse s w ith in th e i n d iv id ual
div is io ns. F in ancia l b uffs e sti m ate , h o w ev er, th at th e c o m pany l o st s o m eth in g l ik e $ 200 m illio n o n th e
Edse l a fte r it a p peare d ; a d d to th is th e o ffic ia lly a nno unced e xp end itu re o f $ 250 m illio n b efo re it ap peare d , s u b tr a ct a b out a h und re d m illio n i n v este d i n p la nt a nd e q uip m ent th at w ere s a lv ageab le f o r
oth er u se s, a nd th e n et lo ss is $ 350 m illio n. If th ese e sti m ate s a re rig ht, e v ery E dse l th e c o m pany
manufa ctu re d c o st it in lo st m oney a b out $ 3,2 00, o r a b out th e p ric e o f a no th er o ne. In o th er, h ars h er
word s, th e c o m pany w ould h av e s a v ed its e lf m oney if, b ack in 1 955, it h ad d ecid ed n o t to p ro duce
th e E dse l at all b ut sim ply to giv e aw ay 11 0,8 10 sp ecim ens o f its co m para b ly p ric ed car, th e
Merc ury .
TH E
e nd o f th e E dse l se t o ff a n o rg y o f h in d sig ht in th e p re ss.
Tim e
d ecla re d , “ T he E dse l w as a
cla ssic c ase o f th e w ro ng c ar f o r th e w ro ng m ark et a t th e w ro ng ti m e. I t w as a ls o a p rim e e xam ple o f
th e lim ita ti o ns o f m ark et re se arc h, w ith its ‘d ep th in te rv ie w s’ a nd ‘m oti v ati o nal’ m um bo-ju m bo.”
Busin ess W eek
, w hic h s h o rtl y b efo re th e E dse l m ad e its b ow h ad d esc rib ed it w ith p ate nt s o le m nity
and a p pare nt a p pro val, n o w p ro no unced it “ a n ig htm are ” a nd a p pend ed a fe w p oin te d ly c riti c al
re m ark s a b out W alla ce’s re se arc h, w hic h w as ra p id ly a chie v in g a s c ap ego at s ta tu s e q ual to th at o f
Bro w n’s d esig n. ( J u m pin g u p a nd d ow n o n m oti v ati o nal r e se arc h w as, a nd i s , s p le nd id s p ort, b ut, o f
co urs e , th e im plic ati o n th at it d ic ta te d , o r e v en in flu enced , th e E dse l’s d esig n is e nti r e ly fa ls e , s in ce
th e re se arc h, bein g in te nd ed only to pro vid e a th em e fo r ad verti s in g and pro m oti o n, w as no t
und erta ken u nti l a fte r B ro w n h ad c o m ple te d h is d esig n.) T he
Wall S tr e et J o urn al’s
o bitu ary o f th e
Edse l m ad e a p oin t th at w as p ro bab ly s o und er, a nd c erta in ly m ore o rig in al.
Larg e c orp ora tio ns a re o fte n a ccuse d o f rig gin g m ark ets , a dm in is te rin g p ric es, a nd o th erw is e d ic ta tin g to th e c onsu m er [it o bse rv ed].
And y este rd ay F ord M oto r C om pany a nnounced it s tw o-y ear e xperim ent w it h th e m ediu m -p ric ed E dse l h as c om e to a n e nd … f o r w ant
of b uyers . A ll th is is q uit e a w ays f ro m a uto m akers b ein g a ble to r ig m ark ets o r f o rc e c onsu m ers to ta ke w hat th ey w ant th em to ta ke.
… A nd th e r e aso n, s im ply , is th at th ere is n o a ccountin g f o r ta ste s.… W hen it c om es to d ic ta tin g, th e c onsu m er is th e d ic ta to r w it h out
peer.
The to ne o f th e p ie ce w as f r ie nd ly a nd s y m path eti c ; th e F ord C om pany, i t s e em ed , h ad e nd eare d i ts e lf
to th e
Jo urn al
b y p la yin g th e g re at A meric an s itu ati o n-c o m ed y r o le o f D ad dy th e B ungle r.
As fo r th e post- m orte m exp la nati o ns of th e deb acle th at hav e been offe re d by fo rm er E dse l
executi v es, th ey a re n o ta b le fo r th eir re fle cti v e to ne— so m eth in g lik e th at o f a k no cked -o ut p riz e
fig hte r o penin g h is e yes to f in d a n a nno uncer’s m ic ro pho ne p ush ed i n to h is f a ce. I n f a ct, K ra fv e, l ik e
many a fla tte ned p ugilis t, b la m es h is o w n b ad ti m in g; h e c o nte nd s th at if h e h ad b een a b le to th w art
th e a p pare ntl y im muta b le m echanic s a nd e co no m ic s o f D etr o it, a nd h ad s o m eho w b een a b le to b rin g
out th e E dse l in 1 955, o r e v en 1 956, w hen th e s to ck m ark et a nd th e m ed iu m -p ric ed -c ar m ark et w ere
rid in g h ig h, th e c ar w ould h av e d one w ell a nd w ould s ti ll b e d oin g w ell. T hat i s to s a y, i f h e h ad s e en
th e p unch c o m in g, h e w ould h av e d ucked . K ra fv e r e fu se s to g o a lo ng w ith a s iz a b le g ro up o f l a ym en
who te nd to a ttr ib ute th e c o lla p se to th e c o m pany’s d ecis io n to c all th e c ar th e E dse l i n ste ad o f g iv in g
it a b ris k er, m ore sin gab le nam e, re d ucib le to a nic knam e o th er th an “E d” o r “E ddie ,” and no t
fr e ig hte d w ith d ynasti c c o nno ta ti o ns. A s f a r a s h e c an s e e, K ra fv e s ti ll s a ys, th e E dse l’s n am e d id n o t
affe ct i ts f o rtu nes o ne w ay o r th e o th er.
Bro w n a gre es w ith K ra fv e th at b ad ti m in g w as th e c hie f m is ta ke. “ I fr a nkly fe el th at th e s ty lin g o f
th e a uto m obile h ad v ery l ittl e , i f a nyth in g, to d o w ith i ts f a ilu re ,” h e s a id l a te r, a nd h is f r a nkness m ay
pre tty sa fe ly b e le ft u nchalle nged . “ T he E dse l p ro gra m , lik e a ny o th er p ro je ct p la nned fo r fu tu re
mark ets , w as b ase d o n th e b est i n fo rm ati o n a v aila b le a t th e ti m e i n w hic h d ecis io ns w ere m ad e. T he
ro ad to H ell i s p av ed w ith g o od i n te nti o ns!”
Doyle , w ith th e b orn s a le sm an’s in te nse ly p ers o nal fe elin g a b out h is c usto m ers , ta lk s lik e a m an
betr a yed b y a f r ie nd — th e A meric an p ub lic . “ It w as a b uyers ’ s tr ik e,” h e s a ys. “ P eo ple w ere n’t i n th e mood fo r th e E dse l. W hy no t is a m yste ry to m e. W hat th ey’d been buyin g fo r se v era l years
enco ura ged th e i n d ustr y to b uild e xactl y th is k in d o f c ar. W e g av e i t to th em , a nd th ey w ould n’t ta ke i t.
Well, th ey s h o uld n’t h av e a cte d l ik e th at. Y ou c an’t j u st w ake u p s o m eb ody o ne d ay a nd s a y, ‘ T hat’ s
eno ugh, y o u’v e b een ru nnin g in th e w ro ng d ir e cti o n.’ A nyw ay,
why
d id th ey d o it? G olly , h o w th e
in d ustr y w ork ed a nd w ork ed o ver th e y ears — getti n g r id o f g ear-s h ifti n g, p ro vid in g in te rio r c o m fo rt,
pro vid in g p lu s p erfo rm ance fo r u se in e m erg encie s! A nd n o w th e p ub lic w ants th ese littl e b eetl e s. I
don’t g et i t! ”
Walla ce’s s p utn ik th eo ry p ro vid es a n a nsw er to D oyle ’s q uesti o n a b out w hy p eo ple w ere n’t i n th e
mood, a nd , f u rth erm ore , i t i s s u ffic ie ntl y c o sm ic to b efit a s e m i- B ra in T ru ste r. I t a ls o l e av es W alla ce
fr e e to d efe nd th e v alid ity o f his m oti v ati o nal- re se arc h stu d ie s as o f th e ti m e w hen th ey w ere
co nd ucte d . “ I d on’t th in k w e y et k no w th e d ep th s o f th e p sy cho lo gic al e ffe ct th at th at f ir s t o rb iti n g h ad
on u s a ll,” h e s a ys. “ S om eb ody h ad b eate n u s to a n im porta nt g ain in te chno lo gy, a nd im med ia te ly
peo ple sta rte d w riti n g a rti c le s a b out h o w c ru m my D etr o it p ro ducts w ere , p arti c ula rly th e h eav ily
orn am ente d a nd s ta tu s-s y m bolic m ed iu m -p ric ed c ars . In 1 958, w hen n o ne o f th e s m all c ars w ere o ut
excep t th e R am ble r, C hev y a lm ost ra n a w ay w ith th e m ark et, b ecause it h ad th e s im ple st c ar. T he
Americ an p eo ple h ad p ut th em se lv es o n a s e lf- im pose d a uste rity p ro gra m . N ot b uyin g E dse ls w as
th eir h air s h ir t.”
TO
a ny r e lic s o f th e s in k-o r-s w im n in ete enth -c entu ry d ays o f A meric an i n d ustr y , i t m ust s e em s tr a nge
th at W alla ce c an a ffo rd to p uff o n h is p ip e a nd a naly ze th e h o lo caust s o a m ia b ly . T he o bvio us p oin t o f
th e E dse l’s s to ry i s th e d efe at o f a g ia nt m oto r c o m pany, b ut w hat i s j u st a s s u rp ris in g i s th at th e g ia nt
did n o t c o m e a p art, o r e v en g et s e rio usly h urt in th e fa ll, a nd n eith er d id th e m ajo rity o f th e p eo ple
who w ent d ow n w ith h im . O w in g la rg ely to th e su ccess o f fo ur o f its o th er c ars — th e F ord , th e
Thund erb ir d , a nd , l a te r o n th e s m all F alc o n a nd C om et a nd th en th e M usta ng— th e F ord C om pany, a s
an i n v estm ent, s u rv iv ed g lo rio usly . T ru e, i t h ad a b ad ti m e o f i t i n 1 958, w hen, p artl y b ecause o f th e
Edse l, n et in co m e p er s h are o f its s to ck fe ll fr o m $ 5.4 0 to $ 2.1 2, d iv id end s p er s h are fr o m $ 2.4 0 to
$2.0 0, a nd th e m ark et p ric e o f its s to ck fr o m a 1 957 h ig h o f a b out $ 60 to a 1 958 lo w o f u nd er $ 40.
But all th ese lo sse s w ere m ore th an re co up ed in 1 959, w hen net in co m e p er sh are w as $ 8.2 4,
div id end s p er s h are
w ere $ 2.8 0, a nd th e p ric e o f th e s to ck r e ached a h ig h o f a ro und $ 90. I n 1 960 a nd
1961, th in gs w ent e v en b ette r. S o th e 2 80,0 00 F ord s to ckho ld ers l is te d o n th e b ooks i n 1 957 h ad h ad
littl e to c o m pla in a b out u nle ss th ey h ad s o ld a t th e h eig ht o f th e p anic . O n th e o th er h and , s ix th o usa nd
white -c o lla r w ork ers w ere sq ueeze d o ut o f th eir jo bs as a re su lt o f th e M erc ury -E dse l- L in co ln
co nso lid ati o n, a nd th e a v era ge n um ber o f F ord e m plo yees fe ll fr o m 1 91,7 59 in 1 957 to 1 42,0 76 th e
fo llo w in g year, clim bin g b ack to o nly 1 59,5 41 in 1 959. A nd , o f co urs e , d eale rs w ho gav e up
pro fita b le fr a nchis e s in o th er m akes a nd th en w ent b ro ke tr y in g to s e ll E dse ls w ere n’t lik ely to b e
very c heerfu l a b out th e e xp erie nce. U nd er th e te rm s o f th e c o nso lid ati o n o f th e L in co ln -M erc ury a nd
Edse l D iv is io ns, m ost of th e agencie s fo r th e th re e m akes w ere co nso lid ate d , to o. In th e
co nso lid ati o n, s o m e E dse l d eale rs w ere s q ueeze d o ut, a nd i t c an h av e b een s m all c o m fo rt to th o se o f
th em w ho w ent b ankru p t to le arn la te r th at w hen th e F ord C om pany fin ally d is c o nti n ued m akin g th e
car, it a gre ed to p ay th o se o f th eir fo rm er c o lle agues w ho h ad w eath ere d th e c ris is o ne-h alf o f th e
orig in al c o st o f th eir E dse l s ig ns, a nd w as g ra nti n g th em s u b sta nti a l r e b ate s o n a ll E dse ls in s to ck a t
th e ti m e o f d is c o nti n uance. S ti ll, a uto m obile d eale rs , s o m e o f w ho m w ork o n c re d it m arg in s a s s lim
as th o se o f M ia m i h o te l o pera to rs , o ccasio nally g o b ro ke w ith e v en th e m ost p opula r c ars . A nd
am ong th o se w ho e arn th eir liv in g in th e r o ugh-a n