AutoPuzzles - The Internet's Museum of Rare Cars!

Quote from: Otto Puzzell on October 26, 2009, 12:01:50 PM
That's very creative, but no.

QuoteAlexander Malcomson played an important role in financing the early automobile industry in Detroit. Born in Scotland, he migrated to Detroit at age 15 and began working in a grocery store. Then started his own grocery firm. Later he realized that there was much more money to be acquired selling coal in an era when all homes and factories were heated by burning coal—a dirty but profitable business. By 1902, six coal yards in Detroit carried his name.

Similar to many Detroit entrepreneurs and financiers, Malcomson saw the opportunity to amass a fortune in the new automobile industry. Eight capitalist met in the offices of Malcomson's coal yard—located where Hart Plaza now graces the waterfront—on June 16, 1903 to incorporate the Ford Motor Company. In financial terms, Malcomson's investment was the most substantial one putting him at risk if this new Ford firm failed as the previous one had.

Malcomson presumed that maximum profit would result from the production of expensive cars for the silk stocking trade. This was the seemingly successful mode of operation of the French vehicle industry. Consistent with Malcomson's directions, Ford designed and produced the large Model K but he had limited enthusiasm for making big, expensive cars. Recognizing how precarious his investment in Ford was, Malcomson wished to hedge. In 1905, he formed the Aerocar Company intending to produce a four-cylinder 24 horsepower car—a large and powerful vehicle for that era. Cooling gasoline engines was a major challenge for the engineers of that era. Several German and French producers strongly advocated air cooling. Malcomson's designer opted for air cooling for the Aerocar.

As Malcomson's devoted his energies and finances to Aerocar, the other shareholders in Ford got upset since his large car would compete with Ford's Model K. In December of 1905, these shareholders insisted that Malcomson dispose of his holdings in Ford. He refused but faced more pressures and, in June, 1906 capitulated and sold his component of the Ford Company to Henry Ford.

Apparently Malcomson raised sufficient funds to build the 80,000 square foot building at Beaufait and Mack that you see. This was completed, I believe, in 1906. Aerocar began assembling their Model D—an air-cooled car—and their Model F—a four-cylinder 45 horsepower water cooled car. Powerful cars were appealing but, before self-starter, had a major draw back. They demanded the arm of a very strong person to crank and, if the crank snapped, arm bones could be broken. Profits were not in the picture for Aerocar and, by the end of 1908, the firm went broke. Malcomson lost a considerable sum and returned to the prosaic but profitable coal business.

Detroit merchant, Joseph L. Hudson, earned his fortune in retail trade but also entered the auto business and served briefly as Vice-president for the failing Detroit Auto Vehicle Company. Despite that lack of success, his niece and her husband, Roscoe Jackson, convinced Hudson to put up the funds for a new auto firm, one that bore his name. More monies were raised and, by later, 1909, the Hudson Motor Car Company acquired the former Aerocar Company factory at Beaufait and Mack for their production facility. By late 1910, Hudson was turning out substantial production from this plant, primarily by assembling parts purchased from many suppliers. Atlas Engine in Indianapolis and the Buda Company of Harvey, Illinois supplied the engines.