I have heard the story about the suit before. It is bogus but they did sue Ford about other company policies.
On Sun, Aug 13, 2006 at 09:35:54AM -0700, Jim Devine wrote: > I agree that Diamonds factlet is likely bogus. But his point was that > a corporation that didn't actively seek profits could be sued by the > stockholders (who could win). I think that's right, though I'm no > lawyer. > > On 8/12/06, Shane Mage <[EMAIL PROTECTED]> wrote: > > Jim Devine wrote: > > > > > >3. According to Jared Diamond (in his COLLAPSE), stockholders sued > > >Henry Ford for paying his workers $5 per day -- and won. Is this true? > > >if so, why do historians make such a big thing about the $5 day? > > >(Diamond refers to this payscale as charity, but that's crap. It > > >lowered turnover.) > > > > If I recall correctly, old Ford had bought out his minority stockholders > > lomg before he introduced the $5 day. In any case Diamond's claim is > > scarcely believable, because if that had been the case it would have > > created a legal precedent that minority stockholders could interfere > > with a corporation's ordinary business decisions--which is anything > > but the case. > > > > Shane Mage > > > > "Thunderbolt steers all things...It consents and does not > > consent to be called > > Zeus." > > > > Herakleitos of Ephesos > > > > > -- > Jim Devine / "It is however always important to remember that the > ability to see things in their correct perspective may be, and often > is, divorced from the ability to reason correctly and vice versa. That > is why an economist may be a very good theorist and yet talk absolute > nonsense...." -- Joseph Schumpeter [edited] -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu michaelperelman.wordpress.com
