THE MEASURINGSTICK OF THE TRACTOR INDUSTRY©
Part VI
The Merger Years
1946-1953

Dan Whalen 2165 Berry Road, Amelia, OH 45102
As printed in the Wild Harvest 2000 #2


If you have been following this series of articles, you will have noticed I have approached the history of the Massey-Harris tractor in a totally different manner compared to everything else done on the subject to this date. We start with the ideas of two self-made engineers, one president of a steel company, promoter and president of the J.I. Case Plow Works, which became the Wallis tractor. These men, Wallis, Massey-Harris USA and the men and women who manufactured the products are having their accomplishments eclipsed by those writing the history books, causing history to be distorted.

We have watched these ideas evolve into the Massey-Harris Company USA, which plays a significant part in positioning Massey-Harris LTD, the parent company, into becoming a global corporation. Now enters the ideas, hopes, dreams, and motivations of another group of people - the merger of the Ferguson tractor. You are most likely, like many other people attracted to the Massey line of tractors who have many questions as to why this, why that, from 1953-1958. This is an attempt to answer tough questions filling in the background events that were happening as out tractors were being produced. As the year of 1953 developed, Massey-Harris was faced with some challenges of which had to be dealt with. Tractor sales in all markets were becoming weak. The technological gap was widening with breakthroughs on the horizon in tractors or combines where Massey-Harris enjoyed somewhat a monopoly.

What it comes down to, a company has to have a great product, which is in tune to giving what the customer ultimately wants. What the customer wanted ultimately was Harry Ferguson's system. This was the business environment in 1953. Merger discussions had been occurring since 1947. A merger with Harry Ferguson became not only desirable now but down right made sense. Ferguson had a higher share of the two-plow market in the US and high market penetration in Europe and Harry Ferguson's name was identified with technological development. A throwback in history to when H.M. Wallis of J.I. Case Plow Works approached R.O. Hendrickson to develop the Wallis tractor approximately 40 years earlier.

A small boring book could be written about the transpiring of the merger negotiations of which we will not attempt. There is one situation of which you'll find of interest. When it came down to the value of stock shares being the last roadblock to an agreement, the two parties were 1 million shares apart. Harry Ferguson and negotiators were driving to a demonstration when Harry Ferguson produced a half-crown coin and suggested they should toss the coin for the million dollars. They stopped the car, made the toss, and Massey-Harris won.

Later W.A. McDougald had the "Million Dollar" coin mounted on a silver humidor with the signatures of those who participated in the negotiations engraved on the box and presented it to Harry Ferguson. Newspapers announced the merger on August 17, 1953.

Seldom does a manufacturing concern have such an opportunity to get an infusion of talents, technology, product, and customer acceptance. The merger was looked upon with great promise for the future. It created a balanced mix of product and permanently increased the importance and sales outside the North American Market. It was apparent very soon it was going to be a difficult matter this merger work.

There was no detailed plan to structure a new organization. As a result, a polarization occurred creating an invisible line between the "red" and the "gray". Ferguson distributors were independent, Massey-Harris branches and dealers were not. Overnight they found themselves operating in competition with each other as before, but needed to further the interests of the same company, quite a tall order. Ferguson distributors and dealers stopped ordering tractors and implements. Everyone was uncertain of their future. There were dual dealerships. Ferguson dealers were complaining about the lack of wholesale and retail financing. Ferguson dealers were faced with now selling the Pony tractor and components. A tractor that for years had been ridiculed, this would mean taking sales away from many Massey-Harris dealers who depended on it for their sales volume. Generated were rumors, suspicions, and fears, which caused the morale for the dealers to drop.

This was a time of momentous change in tractor manufacturing unlike the time tractors went from the biggest monster machines to small to survive, the time Row-Crop was the hot ticket to now the 1950's engineering departments in all companies were moving away from the lugging type tractor, trying to develop a Ferguson type system. The Massey-Harris dealers wanted new tractors that could compete with Ferguson dealers. The fact was there was not the time or money to create a new line of tractors. The Massey people reminded the Ferguson people who bought out whom.

In the spring of 1954, Ferguson dealers were expecting the TO-60 mid-mounted and corn picking tractor, one that would be accepted in the west. The TO-60 was deemed unsuitable and cancelled; its durability was questionable. This was a great disappointment to the Ferguson people.

Harry Ferguson recommended Massey-Harris tractors be declared obsolete as soon as possible. He opposed mid-mounted implements and considered any three-wheel tractor a mechanical monstrosity. He hinted that if his views were not accepted he and his top engineers would resign. A growing feeling of unrest being created just couldn't be ignored. An agreement terminating Harry Ferguson from Massey-Harris-Ferguson went into effect July 6, 1954.

To provide the Ferguson dealers with a more competitive tractor, the TO-35 was introduced January 55, one year earlier than planned, of which Harry Ferguson had opposed.

To keep the Massey-Harris dealers happy, the MH-50 was developed and introduced in April 1955. It differed from the TO-35 in sheet metal, color, engine specs, longer wheelbase, and the use of mid-mounted implements. This tractor caused a crisis between the dealers for this tractor could Row-Crop work.

Months before the introduction, rumor had it the Ferguson line of tractors and implements would be withdrawn. The effects were devastating on the Ferguson morale. The MH-50 had been on the market two months when the crisis reached meltdown. 15 of the 19 independent Ferguson dealerships demanded the withdrawal of the competing Massey-Harris Equipment, read MH-50. Massey-Harris-Ferguson could not comply with the demands. To remedy this hotbed of unrest, the Ferguson dealers were given the F-40 in Row Crop and Tricycles models.

A policy of superficially engineering two tractor lines was implemented along the line of the automobile manufacturers. No thought was given to the difference of appeal in a consumer product compared to capital goods market.

A meeting was held early 1956 concerning developing a tractor larger than the MF-35 and lesser horsepower than the MF-86. From this one meeting of suggestions the MF-65 came to be. The design of the MF-35 was so good the transmission could be speeded up to carry more horsepower and torque without redesign with an outboard final reduction to the wheels. Field demonstrations took place May 1956. A diesel engine was still needed. Monty Prichard Co-Managing Director od Perkins dropped in. The problem of an engine was considered. Perkins became a part of the MF-65 project.

By February 1956 it was decided there needed a change in top management which was postponed because Deere and Company was interested in a merger. Meetings were held, but nothing became of it.

July 6, 1956, James S. Duncan resigned as Chairman, President, and Director after forty-six and a half years of service. He had made many contributions to Massey-Harris.


	- Kept the company in the United States.

	- Supported the development and production of the self-propelled combine,

	- Encouraged export.

	- Enlarged facilities to catch Post War demand.



He hit it off with Harry Ferguson, which lead to merger. Within months H.H. Bloom, President of the U.S. Company and many more members of management left.

In my opinion, this was the end of the old Wallis Massey-Harris Ferguson United States Company and a beginning of a truly global corporation.

This situation did post a problem. The U.S. Market was three times as large as Canada, while the corporate presence in the U.S. was greatly reduced by th

He closing of the Batavia, NY and Racine, WI production plants moving most of the production to Canada. In the future, there would be uneasiness and movement to address the problem. To this day, Massey-Harris collectors are faced with remarks such as "O yes, Massey-Harris. Your tractor was made in Canada," No doubt an idea put there by the rival tractor manufacturers.

Cash flow had to be improved. There were 5,000 Massey-Harris #33, #44 and #55 tractors unsold. There were fire sales. Price reductions, incentives schemes introduced.


	- New employment was forbidden.

	- Staff reduction policy underway.

	- Overtime banned.

	- Racine and Batavia plants permanently closed.



It was decided in early 1956 to clear the Detroit production lines to begin production of the MH-50. The result was the unbelievable number of 5000 Ferguson tractors being stored in a field either not passing inspection or incomplete and deteriorating.

This was the result of another early 1956 decision to implement the concept of interchangeability of parts. The concept was to have the parts - gears, bearings, component, etc., manufactured elsewhere in the world all come together at the assembly plant in Detroit. As time has proven, it was a good idea just for the flexibility of manufacture point of view. The problem was the proper system and standards of quality control was not in place, leading to difficulties of noisy gears, knocking hydraulic pumps, and bad bearings were just some of the issues. As a result, the factory had much confusion with parts from here and there; what was food, and what was bad.

A MF-85 Prototype was tested in 1957. It was too light for wide level implements. The old MH-555 was considered to fill the bill, but sales didn't think it attractive. So the MF-88 was developed; a Western version of the MF-85 with extra weight.

A Utah Ferguson distributor was losing money. It was impossible to extend assistance to all distributors to the extent asked for. This was the straw that broke the proverbial cane's back. It was decided to stop production on Massey-Harris tractors and begin negotiating the termination of independent Ferguson distributors. By the fall of 1957, all but one distributor was terminated.

To speed the introduction of a larger tractor, a model would be purchased from another manufacturer. In 1958 a large tractor was obtained from Minneapolis-Moline sold as the MF-95.

In 1958, the #333, #444, and #555, F-40 and MH-50 were out of production. IT was believed that a new corporation had been created. In March 1958, the company name was changed to Massey-Ferguson and a new corporation symbol, the triple triangle, was introduced.

Many hours of research has gone into this ongoing series. If you have any information to add, please relate this and documentation to Dan Whalen. There are too many books, articles and VCR tapes on this subject that are in whole or in part inaccurate and misleading which has damaged and eclipsed the reputation of Massey-Harris Company U.S.A. and the fine tractors and equipment it engineered for the rst of the world. As the facts show, at one point in time these tractors were "The Measuring Stick of the Tractor Industry" and all others were considered "freak machines".

In conclusion remember this: tractor manufacturers claim and quality were so poor the state of Nebraska started testing and publishing theiur findings. Before there ever was the Nebraska tests, Wallis ran the one thousand-mile durability test to prove Wallis is the best tractor ever placed on the market while the enthusiastic wave of tractors at the time proved unsatisfactory.

In every industry one manufacturer becomes the leader. Wallis and later Massey-Harris became abd still is "America's Foremost Tractor". You will find Wallis' early tractor featuresm, designs, and firsts in a modern built tractor of today despite what the modern history revisionists say.

Notice - "We want the public to know that the Wallis tracor is made by the J.I. Case Plow works, Inc. of Racine, Wisconsin and is not the product of any other company with "J.I. Case" as part of its corporate name."

Henry M. Wallis

  • Part 7