Session 10 - part 03

Incidentally, there was a point where he got into his mass production tool up, particularly in this on-going, in his own iron mines. He got where he needed money, he needed it very badly, and J.P. Morgan had loaned him money, and he got up to where there were $70 million which was a very large amount of money in those days, I assure you, and then J.P. Morgan was going to foreclose. I told you about the contract where the the contract where the distributor was required that they take so many cars. And Henry simply forced cars on all his distributors, so they had to get the cash. Therefore the distributor went to the bank, so the local banks practically, the J.P. Morgan banks had to come up with the money to pay for these cars that the distributors had agreed to take, and he got $70 million, which was collectible on his contracts, and they did awful publicity about this cruel man doing really the poor distributors, and everything.

But at any rate, he got clear of J.P. Morgan. And the only reason that we really have very great progress on what I would consider the very pro-human side of technology was that he would continually was frustrating the money makers and coming up with the new.

He said then, "If I can't have my materials in a warehouse, then I'm going to have to get up an entirely new system. I've got to know how fast things are going to get to me, I'm going to have to keep track of things, so he got up a very extraordinary checking system, and I'll tell you a little bit about that. As for instance, he had, if you bought a car of limestone I was in, when I was making those fibrous blocks in the Chicago area I was making them down in Joliet, Illinois, and I made them Magnesium Oxychloride cement came from a grinding mill down in Joliet, so I set up my factory right along side of them, but this man who owned that, Shindler, sold a great deal to Henry Ford in the way of ground limestone things that he needed in his steel making. And when Henry Ford bought a car he would telephone his purchasing agent they'd buy a car, it had to be rolling that day, and there was a Ford checker with the car went out with it. He had checkers on all of these shipments and they were continually reporting to Ford on where everything was, all of the time. Henry Ford paid cash for it this day, absolute cash for it that day, and went away that day. You had to give him very fast service, you had to be able to keep track of when he needed things, he must get them in a hurry, must know his sources where he could get things started in a hurry.

So he set up a game, and this was the nothing could have been more "world," because his operation was really did have ships coming with nitrates out of Nikiki. They were all over the world. And what he did then was he developed a world game strategy very much the same way the Chief of Naval Operations of where all our ships are. And had to know where every train and every car load was, and the rate at which they were flowing towards Detroit, or towards his other assembly plants that graduated as time went on. And this was the first really time coordination and he stopped forever having anything in warehouses. He could slow down the car a little, so all of his his complete inventory was in motion. It was the largest moving picture that has ever been conceived of, the biggest scenario ever conceived of, and to make that really work was to me it is incredible that a little human being could get up a world operation of that size, particularly in the years when he did this we didn't have, the radio wasn't going and all kinds of things you and I would like to have going yesterday was the Morse Code that's where you do S.O.S., so there was a tapping out of that, but there was no voice, like that, and we didn't have the telephone lines extended as they are, and much was done by telegraph.

At any rate, he set up this and this brought about incredible change in the world pattern, because I have given you cities, and how cities began, and how the land owner the great baron said you must come inside the walls here, and they stored things in there. So when I was young, warehouses were a part of the scene, everywhere were warehouses in big cities in New York, or Boston, or Philadelphia enormous sums in the warehouses just full of stuff. And warehouses are gone altogether now. They are only for furniture and things like that, but big corporations no corporations every corporation that followed him found that they lost enormous amounts of money through warehousing they must not do it. So they all took on his time control study. Now, this changed cities very much when you gave up the warehouses. Now Henry, I want you to realize then, the extraordinary way this man is working, and how it is changing economics, and this is all part of what I would call, then, DESIGN SCIENCE.

And when you play world game, you are playing DESIGN SCIENCE. And you are seeing whether you can make a better bearing, you got to understand your production tools. And Henry was incredible in the sense of production tools, and he became enamored of interchangeability of parts. Which, again, the art had not developed. He said if we get down to fine enough tolerances, we'll be able to have interchangeable parts. This brought him into, he fostered, there were some Swedish tool gauge makers very extraordinary gauges, and they, these men had learned how you making very special lathes, how they could control things to ten thousandths of an inch to one hundred thousandth of an inch and so forth where gauge blocks and so forth Henry fostered that whole development of those Swedish men, so he could really then, setting up his tools, with calipers with incredibly fine dimensions. These are not things that you and I can do with our eye I don't know if you have ever tried this out on drafting but you have in your engineer's scale fiftieth of an inch usually, there are some with a hundredth of an inch but, the human eye could not really differentiate, beyond there it just gets blurred it gets into the gray.

So when we get into offset when you get into printing you can then have little points of color printing with just these tiny little points and getting to Benday screens and so forth, down to 200 and so forth, looks like absolutely complete beautiful continuous color. Or you don't see any of these separate gradations. So that there is a limit as to how far the human eye can differentiate intervals, and that is just about one hundredth of an inch, so when you begin to get into ten thousandths of an inch, and hundred thousandths of an inch incidentally, in the controls today, I mentioned to you the other day, we had gotten up to one ten millionth of an inch in some of the modern aerospace technology. Now this makes, as I gave you also the other day, the difference in strengths you can get by competent alignment. So Henry got into saying you can't have individual borings and things like that you have to have jig boring you've got to have all the bearings of this machine all in beautiful, absolute rigid alignment, so all the holes are going to line up. You don't do them independently and so forth. He got into incredible developments. And all of this he was the precedent for all of this, and as fast as he could do it, General Motors and the others would have to copy, but, now, this is all part again and I want you to understand, WHEN I TALK WORLD GAME I DO NOT MEAN, THEN, LOOKING AT THE MAP AND LOOKING AT RESOURCES AND PEOPLE AND JUST SORT OF MAKING CHESS MOVES AT ALL. MY WORLD GAME IS PLAYED ENTIRELY BY DESIGN SCIENCE AND WHAT I THEN CALL COMPREHENSIVE ANTICIPATORY DESIGN SCIENCE. And, comprehensive, because you've got to think about the world you've got to think everything that is involved it has to do with the atmosphere, exhausting the biosphere you can't do that, obviously. You've got to think about the side effects, and you've got to be responsible for disturbing the earth participating in Nature's own transforming in every kind of way. You must be a responsible participant in Nature's own evolution.

And it is just exactly the opposite of the money making! All your control, and I was able to luckily, I committed myself to the precession and assumed if I did what Nature wants to do, or was trying to do, then I will find myself getting on, and that part did work. But, if I had ever, said I was going to carry on just by money making, I would really have been licked.

I am taking you back then, now, to other things I have been talking about. I wanted to get you to understand what I meant by WORLD GAME and I find a great many people very excited when I first discussed or disclosed my World Game which I have been doing since 1927 because I took my Navy experience of World because Navy is World inherently, and Army is local. And so that Navy had War games, and there was the War College, and the game was suddenly war was declared, the politicians do that, that's not the Navy, but now you've got the job of "How do you get all of the world's resources under control to control that line of supply?" That was it. Who's going to control the line of supply? That's who's going to control the world.

So there was a grand strategy, and I was very used to then, thinking in resources and so I made up my mind in 1927, I started my big game, I was going to peel off and I was going to take my Navy World War games and I'm going to play it now on a basis of where are the resources and how do I use all of the technologies and so forth in making man a success and applying it to the livingry instead of the weaponry. Trying to find out what do we need for environment controls.

Now, when I was explaining, this to the first group, Meddy Gabel was a part of, I went through many scenarios, I went through, then, various things that I did, and through working assumptions, if you can make this design, then what are the side effects and so forth, and then you can get some scoring. And because I was dealing with things I was very familiar with and many times I had run through and knew all my answers as I gave them because I then could give them something immediately really quite convincing how powerful that was. Those who participated, and a number of individuals who participated in that game were very, very excited in New York, and some of them really rushed off in a hurry, because they found it was so dramatic, that it was really pretty easy to play a game of scenario, and what they did then you get some maps, and really were reciting and doing what I was doing up there. And this could be very exciting and impressive to people, because they could see the results in a hurry In other words, they were really play-actors going thru some acts that I had gone through, and this, then, brought about various other side results where, because they didn't really know anything about the design science side. So they were simply talking about already tested cases, and not getting at what was really fundamental to me. So I found there was such a misunderstanding in the WORLD GAMEing end of it, I asked all the people that had participated to stop using the word WORLD GAME, and go into world game studies, but please not to call it WORLD GAMES, and to get to understand and really feel the DESIGN SCIENCE side.

And so, everybody who was participating with me was very responsible and they did just that. Gale's group and so forth you call it "World Game Studies Group, scenarios". But they now have gotten so good and gotten so familiar with this being design science, that I think, I felt it was absolutely, last June, the seminar that was held here in Pennsylvania, should really from now on I have no apprehension about their using the words WORLD GAME. But I don't want it to be lost the significance of this WORLD GAME capability for humanity, and it really is completely dependent on really feeling the DESIGN SCIENCE side of things. So that when I'm showing you pictures of cars, which is just fun, and I've had a lot of excitement with it, I want you to continually think with me about all the other parts of the responsibility I said, are you going to buy the tools or are you going to rent them? And so forth.

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