Four Drive Tractor Company

The Four Drive Tractor Company

On November 29, 1915, John H. Fitch organized and incorporated ‘The Four-Drive Tractor Company’ for $50,000, of which $27,010 was paid in capital. Ludington, Michigan was stated in the articles of incorporation as the principal place of business, but that could be amended if desired.
The officers of the company were as follows:

John H. Fitch - President
Elbert J. Jenkins of Big Rapids -Vice President
[register of deeds and a prominent member of the Big Rapids Chamber of Commerce].
Clay F. Olmstead of Ludington - Secretary
Richard J. Fitch (John's son) - Treasurer

The members of the board of directors were:

George Fitch (John's brother)
Dr. William H. Taylor of Ludington
Carlton E. Logan of Quenemo, KS

Secretary Clay Olmstead stated on the morning of the incorporation, "The board of directors has voted to accept the proposition most favorable to the concern regardless of the city from which it comes. We have pledged ourselves to act without prejudice toward any one place." The company had several good propositions concerning the location of the manufacture of the tractors from four or five men in Ludington, three from Pentwater, one from Big Rapids and one from Quenemo, Kansas.

The Big Rapids, Michigan board of trade decided that the manufacture of the machine would prove of value to Big Rapids. The board gave the company an offer that it could not refuse. In exchange for moving the company to Big Rapids, it would be given a new building, land and free light and power for five years. On December 6, 1915, ground was broken for the factory on Maple Street east of the Grand Rapids & Indiana railroad tracks. The board of trade financed the construction of the 45' x 200' brick building with a 30' x 40' L-shaped addition for the blacksmith department at a cost of $10,000. The company also acquired five acres of land at the junction of the Pere Marquette and Grand Rapids & Indiana railroads. The building was expected to be finished by April 15.
The Big Rapids board of trade also took over all the stock that the company wanted to dispose of at the time. The contract between the Company and Big Rapids allowed the company to start with the employment of 8 men, with an increase to 80 within five years. The salaries of the men were not made mandatory; the only requirement was that those who were employed shall be given full time work.
The machine shop was turned over to the company while the building was being constructed. John moved to Big Rapids to take care of his new company, leaving his family in Riverton to take care of the farm. John spent time scouting for material and already a quantity of machinery has arrived at the plant of the Binney Machine Company in preparation for manufacturing operations in Big Rapids. The Four Drive Tractor Company expected to have a tractor ready for the Grand Rapids Automobile Show which began February 21.

After Motor Age magazine of Chicago published a story on the stump-climbing tractor in March 1916, literally hundreds of letters poured into the Big Rapids post office. Inquiries came from every state in the country and every first-class foreign nation. French, English and even Russian firms wrote for information regarding the new machine. Management mapped out plans for covering a large selling area and as soon as the necessary materials arrived, they would begin distributing the tractors.

In April, the company moved into the building, which consisted of machinery and equipment enough for the manufacture of five or six machines a day. World War I caused a great delay in the arrival of raw materials, but the company did not get discouraged over the impossibility of filling orders. They had taken the best possible measures for making the delay profitable and spent every minute perfecting the machine. New parts received rigorous testing - including having the tractor climb an outside wall of the building - in order to make the endurance qualities of the tractor as permanent as possible. They provided for the installation of Timken roller bearings in the rear axle and it worked without a hitch. The Company also commenced a long relationship with the Cotta Transmission Corporation of Rockford, IL in the implementation of a special three-speed Cotta transmission. The Oliver Plow Company of South Bend, Indiana sent up one of their plows for a work-out with the tractor, and the combination turned over a patch of ground in no time at all.

The Pioneer Herald of Big Rapids ran a large, front-page story of John and his four drive tractor in their Progress Edition in late Summer of 1916. The article opened by stating, "In the Four Drive Tractor Company, Big Rapids has an infant industry of great promise. With an almost limitless market in the comparatively new filed, the prospects of the organization defy prophecy." It continues, "The story of the inventor-president of the Four Drive Tractor Company, Mr. J.H. Fitch, and of his machine which walks over stumps and climbs eighteen inch curbs, reads like a romance." The article goes on to describe John's setbacks and failures and how he persevered to invent his tractor and form the company.

John spent his entire time at the factory in Big Rapids working early and late so that his tractor might be made perfect and placed on the market. Arrangements were made to rush work through the Winter of 1916 and to have the tractors on the market in large numbers by the Spring of 1917.
On September 16, 1916, the directors increased capitalization from $50,000 to $200,000. The company employed 10 men at the plant in Big Rapids.

In an ironic twist of the Pioneer Herald's headline, tragedy struck as John was about to reach the grand climax of his life's work. John became stricken with a bowel obstruction and died on November 18, 1916.

In January 1917, as a result of John sudden passing, the Company elected Elbert Jenkins, Richard Fitch, Dr. William Taylor, George Fitch, John C. Jenkins and Albin Johnson as Directors. The officers elected were Elbert Jenkins as President; Jotham Allen, Vice President; and Albin Johnson as Secretary and Treasurer. The Company planned to manufacture tractors at once. In March, the Company employed 17 men and 1 woman at Big Rapids. The company continued to make improvements on the tractor in order to fill orders that were placed in 1916. The company finally received the materials needed for construction and produced tractors starting in 1917. The first tractor was shipped out on May 24, 1917. By November 1917, 15 tractors had been completed and shipped while another 9 were completed and undergoing testing before shipment to customers. The Company employed 28 people with a monthly payroll of $2,000.

  Jotham Allen was elected President of the Company in January 1918 succeeding Elbert Jenkins, who resigned. John C. Jenkins was elected Vice President and Sales Manager; Albin Johnson, Secretary and Treasurer; and Harley E. Frederick, Director. The Company also planned to erect an $8,000 addition to allow for increased production. Later, $20,000 in additional stock may be issued.
  In order to assist in the sales and delivery of the tractors, the Company contracted with a number of regional tractors sales companies. Distributors at the beginning of 1918 were Kansas City Four Drive Sales Co., Kansas City, Missouri; Cleveland Tractor Sales Co., Denver, Colorado and Farmers Hardware Co., Stuttgart, Arkansas.
  Because of World War I, the Company had to obtain a federal license and was put on a preferred list for material shipments. Security became a concern on the same basis for materials for munitions plans or other direct war activities as no visitors were allowed at the plant except when they are vouched for. By June 1918, the company employed 49 men and 2 women to support the increase in production.
  In September 1918, E.C. Newcombe was made a director of the Company and also the Vice President. Two resignations from the directorate were those of George A. Wright and Harley Frederick, who remained as manager.
  The Company made the Kessler Motor Company of St. Joseph, Missouri distributor in the Kansas City territory covered by the states of North and South Dakota, Nebraska, Kansas, Missouri, Oklahoma and Texas in the Fall of 1918.

The financial report showed that the net loss during 1918 was $53,038. The tractor cost 114.56% of the selling price and the loss per tractor was $252.52. Net assets were reduced to $90,686, patents included. Up to December 1st, the cost of producing and selling had been $2,002 per tractor. After that date the cost was $1,623 leaving a profit of a little more than $100 per tractor.

  Officers of the Four Drive Tractor Company at their annual meeting in January 1919 elected Dr. George H. Lynch, President; A.V. Young, Vice President; and William A. Stillwell, Secretary. John G. Martz, Otto Sanderhoff, F.H. McKay and Dr. William Taylor were elected members of the board of directors. No treasurer was named because all funds were to be handled by the trustees. C.A. Watson, formerly agent for the Studebaker Corporation in Grand Ledge, MI, was selected as the new Sales Manager for the tractor company.
  Distributors for 1919 included Geo. W. Smith, Denver, Colorado; Fred Walsh, Glendale, Arizona; Snyder Motor Car Co., Spokane, Washington; and Wm. P. Nisbett, Moose Jaw, Saskatchewan, Canada. An Export and Foreign Department was established at 15-25 Whitehall Street in New York City (later the Export Department was located at 15 Moore Street in New York City) to arrange for the sale of tractors to individuals and governments in foreign countries. The tractors were manufactured at the factory in Big Rapids and then were shipped from the factory to the purchaser by railroad and then by cargo ship to the largest shipping port in that country.
  The Company posted its first month showing a profit in February 1919 with profit of $652. Seven tractors were made in February with twelve scheduled for March.
  In the Summer of 1919, the Company unanimously voted a resolution at a stockholders meeting to increase the capital stock from $200,000 to $500,000. By another resolution, $200,000 of the $300,000 increase will be common stock and the remaining $100,000 preferred stock drawing 7% to be offered to the stockholders. It was also determined to let any stockholder exchange his common stock for preferred drawing 6%.

The Four Drive Tractor Company secured a solid footing during 1919 because of various improvements that were made to the tractor and the company. These changes lead to the firm selling its entire 1920 output before the year started. A.T. Burch of Alameda County, California purchased the entire output of the Company for several years to come, at least 360 tractors. The output in 1919 was 16 tractors a month. This increase in production also meant that the Hanchett Swage Works of Big Rapids, which made all the castings for the tractors, to increase its number of plants to five.

The changes concerning the company was that it had emerged from trusteeship. The trusteeship was brought about because of the former inability to meet current obligation running up to $30,000 or more. The two men placed in charge inaugurated a policy of paying for everything as it was bought and of selling the output for cash. This way, they had assurance that the business was taking care of itself, and that the stockholders had reason to know that cash was not being lost because there was no cash income except from sales. The company was finally paying its first dividend on preferred stock from earnings with a rate of 7% per year. The proceeds from the sale of this stock went to pay the floating debt and to make possible the discharge of the trustees as well as to purchase additional machinery, which was expected to increase production. The only concern of the company was being able to produce all the tractors that had already been ordered.

A flyer promoting the company was published just before an annual stockholders meeting on Monday, January 12, 1920, probably to entice new financial interest in the firm which was experiencing financial problems at least a year earlier, according to a brief account found in the Pioneer's year-end review of 1919.
That account briefly stated: "Jan. 7. - Trust mortgage filed for creditors of Four Drive Tractor Co. ; accounts payable listed at $29,273.78."
Under the headline "The Four Drive Tractor is Going Strong," the flyer reads:

"Four years have passed since the Four Drive tractor first interested the people of Big Rapids. Since that time a factory has been constructed and a large addition built. The company has passed through the vicissitudes usually incident to the swing of a new industry. Days of experiment and struggle have come and gone."
  "At the beginning of 1920 the Four Drive stands in a favorable position. The experimenting is done. The tractor is standardized. It is giving splendid satisfaction in the field. It is a good machine; many users and dealers regard it as the best on the market. Its motor burns oil. And my, how it pulls!"
  "The judgment of the men in charge is that the Four Drive has gone by the period of trial. Of late it has been making some money. The earnings are not large, but they give promise that, with production on a quantity basis, the earnings can be put up to a gratifying point. A dividend is now being paid to the holders of preferred stock. This stock is preferred for a 7 percent dividend, and the dividend on this stock must be paid when the company is making a net profit. It is estimated that the present net profit is between $2,000 and $3,000 per month on present production."
  "The demand for the Four Drive tractor is way beyond the present power to produce. A contract has been made which absorbs all the probable production for 1920. The problem is one of production and management."
   "The policy of the present management is to build upon accomplishment rather than upon promises and hopes. The accomplishments of the past year lend solidity to the belief in the future of Big Rapids' newest industry."

The flyer closed with a listing of the company's directors and company logo.

The directors at that time were:

G.H. Lynch of Big Rapids, president
A.V. Young of Big Rapids, vice president and treasurer
W.A. Stillwell of Big Rapids, secretary
J.G. Martz of Big Rapids
William Taylor of Ludington
F.H. McKay of Ithaca, MI
Otto Sanderhoff of Alma, MI.

At some point around the latter part of 1921, the Four Drive Tractor Company ceased operations at the Big Rapids plant. On March 7, 1922, the company offered at a public auction of the patent rights, machinery and physical assets. The building was to revert to the Big Rapids board of trade who financed the construction to bring the company to Big Rapids in 1916. There had been many offers to buy the building and go on with manufacture of the tractors however none of the offers had been formally presented and so none had been accepted. As a result of the auction, stockholders were to get nothing on their investment and creditors were to get 10 cents on the dollar. Prior to the auction, a bid of $15,000 had been estimated. The machinery alone was worth $35,000 while debts of the company were about $85,000. Arthur Martz of Big Rapids purchased the Company for $8,850 as he and Vern A. VanHorn of Chicago were the only bidders. Shortly after the auction, Mr. VanHorn became the general manager of the company now known as "Four Drive Tractors, Limited". The company immediately began to producing the tractors and commenced an aggressive advertising campaign.

An article found in the October 23, 1922 edition of the Pioneer, pointed to continued financial difficulties for the them six-year-old business. That article promulgates a denial from Big Rapids Savings Bank of charges brought in circuit court by 11 local businessmen - investors in the Four Drive Tractor Company.
The lengthy article explained that the 11 men charged that they had loaned Four Drive $12,000 with the understanding that the bank would repay them from tractor sales. The bank denied any such agreement and instead used sales of the tractor to help pay off other debts owed by the firm. The 11 men involved in the lawsuit were Dr. Lynch, A.V. Young, W.A. Stillwell, J.G. Martz, George F. Fairman, C.P. Judson, R.C. Stewart, G. Masselick, Fred Hood, George A. Wright and E.G. Hopkins.
Bank officials admitted that "the plaintiffs had recently demanded that the bank repay them $12,000 with full interest but aver such a claim is an afterthought and is stale and that if the plaintiffs had a right to demand the same they would have made their demands in August 1920 and would not have waited until 1922 when the company had become insolvent..."
Attorneys representing the bank asked the court to dismiss the case, but further records of the case have not been uncovered to determine the finality of the issue or the future solvency of the firm.

There is not much known about the company during the 1920's but it appears that the company was having some financial difficulties even though many tractors were sold all over the world.

An article from a Big Rapids newspaper reported that in September 1928, sales representative Evart W. Bogart set sail from New York on a four-month trip to French possessions to set up and instruct operators with the Fitch Four Drive Tractor. He went to Havre, France and then to Paris to meet with the French representative of the Four Drive Tractor Company. The two men planned to go to Morocco, Algeria, Casablanca and other French colonies in Africa. The tractors had been sold to these colonies for many years and Mr. Bogart had several more on the ship with him.

The company continued to produce tractors in 1929 and probably early 1930. The exact date that the Four Drive Tractor Company ceased operations or to whom all assets of the company were sold is unknown at this point in time. In all likelihood, the financially troubled company folded operations after the stock market crashed in October 1929.
The best information as to the dissolvement of the Four Drive Tractor Company comes from a snippet view from google books from "Michigan Manufacturer and Financial Record" Volume 45, Jan-June 1930, page 27:

"TRACTOR RECEIVER NAMED - John P. Shaller, of New York, has been named permanent receiver for the Four-Drive Tractor Company, of Big Rapids. Assets of the company are said to be $27000, while its indebtedness on November 22, last [meaning 1929], was $135,000."