I'm not going to spend a lot of time or space on this (that's what I usually write, then 20 posts later..........).
Oily wrote: "I am of the belief that A.Y. Malcomsen was cheated out of his share of the Ford Motor Co.
He seems to have been the financial man who had the reputation to support the efforts of Henry Ford, and Ford should have certainly rewarded him more generously."
A few points to consider, and then some context:
First, Malcomson wasn't "cheated." He chose to sell his stock, which Henry Ford and James Couzens bought (this gets to a Couzens pont later). Why did Malcomson sell? For those reading above, the stated reason to the press were two fold. One, because he thought it was a good price (Detroit Free Press, 1906), and second, because he wished to devote all his efforts (i.e. money) to Aerocar. At the same time he sold his shares of FMC, Aerocar had another $100,000 (or $150, I'll have to look it up again) added to it's capitalization.
A 1903 to 1906 return on cash investment of $5,000 actual cash (or $7,000 according to some sources) by Malcomson, with a return of $175,000 plus cash dividends of about 200% of initial investment, is not, in my book, being "cheated."
Secondly, let's put this in context. Malcomson could not have chosen a more difficult time to expect maximum value of shares for his FMC shares. It was the summer of 1906. Sales were significantly down from 1905. Why? Because two new models had replaced 1905 models B and C (we'll get to that in a moment), and the Model N was terribly behind in production. In fact, by the time of the stock sale by Malcomson, no Model N had reached the public. Only the Model K and a few remaining Model F (plus a few leftover Model B) were sold up to that time. No dividends were issued, and cash flow to the company was limited. Not an easy time for Ford or Couzens to borrow money to fund the purchase of Malcomson (plus a few other shareholders stock, and we'll get to that in a bit too) shares.
But Malcomson chose, decided, went with, the sale. No one forced the sale. And I doubt any lender thought this was a great bargain considering FMC prospects in the summer of 1906, with a model that was highly anticipated and expected to carry the company not even on the market. And car sales then occurred in the late winter and early spring, because buyers bought cars primarily for summer use.
Now, fast forward several years. James Couzens bought some of the liquidated stock in 1906, adding to his shares. He continued as essentially CFO for the next decade and a half, overseeing the immense advances made by Ford Motor Company. No one, including Ford, Malcomson, Couzens, Dodge or anyone else could have foreseen what would happen in the future in 1906. Henry Ford became the wealthiest man the world had ever known. Couzens, the Dodge brothers and the other investors realized millions, instead of hundreds of thousands of dollars. They also risked their initial investments, staying with the company in 1906, through the financial recession of 1907, and through the development and again, delayed production of the Model T in late 1908. They stuck with Ford. And they were greatly rewarded, for both their sweat equity and initial investment.
I bought a farm several years ago. I had farmed it for several years, and the landowners told me they were going to sell the farm. I asked them how much, and they said they would have it appraised, and I could purchase it at that price. Otherwise, they were going to hire a realtor and get the best price available on the market, minus commission. I agreed to the appraised price. I was a relatively new farmer, and had virtually no equity to use, so securing a loan to buy a farm was tough (and interest rate high). But, I knew if I didn't buy it, I would no longer be able to farm it, and lose the sweat equity I had put into it, making it a better piece of property from improvements, as well as the annual income the farm provided me and my family.
Several years later, land prices began to rise dramatically. I was reaching an age, and had developed another business, to the point where I knew my farming days were mostly in the rear view mirror. A friend and neighbor offered me twice what I had paid for the farm. It was a little below fair market price, but he also let me have a five year contract to pay him rent to continue farming it. Like Malcomson, I could have chose to make, or not make the sale. However, like Malcomson, I had other places to put the money (including old cars...... 
), so I made the sale.
Fast forward to now. The farm I sold has more than doubled again in value, but I had sold it. Unlike A. Y. Malcomson, I do not regret my sale. I was not cheated. In fact, coming from a dirt poor farming background (pun intended), I am still thrilled that over a few years, I doubled my investment, and was able to continue farming a piece of ground I really liked for a few more years.
Do some of my neighbors think I sold too soon? Probably. Do they think I was "forced" by the bank or lenders to make the sale? Maybe. Regardless, I made the choice, and knew at the moment I put my signature on the contract, that I would never look back. And I had money in the bank.
Now to "Alexander," the mis-named Model B. First, there were no 1904 Model B. Model B, and C and F, were 1905 Models. Model B and C were the first on the market, beginning in late October, 1904. By January 1, 1905 about 50 Model B had been delivered as well as several Model C. That doesn't make them "1904" models, any differently than there are no 1908 Ford Ts, although a little over 300 were delivered before January 1, 1909. Ford, like all automakers of the time (and to this day) announced models during the previous year, and often deliver them in the late summer, fall and early winter of the preceding model year. At the time, Ford model changes roughly coincided with the Fiscal Year, October 1 through September 30th of the following year.
Ford produced 500 Model B. The board of directors originally contracted for 250 B, then a month later (Ford BOD minutes) upped the number to 500. The B sold well, and most were sold by the end of 1905. A few were sold in FY 1906 and 1 or 2 (memory..) in FY 1907. I believe about 900 Model C were sold too. Interestingly, during 1905, FMC reduced the cost to dealers of two models due to agent/dealer complaints of poor sales (Board of Directors minutes). The two models that weren't selling? Models C and F. Not Model B. This speaks volumes to me, but that's just me.........
Probably last (one never knows, on these rants), credibility. I'll give Henry Ford credibility over any one reminiscence, particularly during the early years of FMC, every time. When I read (and reread) Oliver Barthel's reminiscence, it reminded me of Sorenson's book. They both seemed to write (or record, in the case of the reminiscences) that they were the primary driving force behind Ford Motor Company, and Henry Ford's success. In both cases, I'm not buying it. In Barthel's case, he wasn't"in the room" during most of the events he describes. Much of his reminiscence is a history of early Detroit automotive history, available in many versions from many authors. What his reminiscence, when combined with Sorenson's book, other period books and articles do, is begin to weave the many layers of fabric that make the story of Henry Ford, A. Y. Malcomson, John and Horace Dodge, James Couzens and the many many people who made Detroit the automotive capitol of the world, and Ford Motor Company the greatest auto producer of the first part of the 20th century.
There is one other "sleazy" aspect to Malcomson's stock sale I'll get to later, I need to re-research it first.
These are my opinions, based on what I know, and think I know, from information gleaned from this site, Early Ford Registry forum, period publications and published materials. I reserve the right to be completely wrong.
Respectively,
Rob
I've almost never said something I thought, or knew to be wrong. However, over time, I've learned that I often say things that turned out to be wrong................ 
