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Ford Refused Board of Commerce Offer to Arbitrate Sapiro Suit

May 13, 1927
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(Jewish Daily Bulletin)

Stewart Hanley, of counsel for Henry Ford, rejected a suggestion that Aaron Sapiro’s $1,000,000 libel suit against Ford and the “Dearborn Independent”, which was declared a mistrial April 21 by Judge Fred A. Raymond of the Federal Court, be submitted to the Arbitration Committee of the Detroit Board of Commerce, it was disclosed yesterday by William Henry Gallagher, counsel for Mr. Sapiro.

Mr. Gallagher said that H. A. Harrington. Secretary of the Arbitration Committee, which is made up of prominent Detroit bankers, business and professional men, wrote him April 20, the day before the mistrial, suggesting the case be taken out of court and submitted to the committee. A similar suggestion was sent by Mr. Harrington at the same time to counsel for Mr. Ford, Mr. Gallagher said he was informed.

Mr. Gallagher said that because of being busy in court and in conference with Mr. Sapiro, he did not receive the letter until after the mistrial was declared. He conferred with Mr. Sapiro April 30 with respect to the suggestion and May 2 notified Mr. Harrington that he and his client were willing to submit the case to the committee. Mr. Gallagher asked that the committee’s rule that the arbitration proceedings be secret unless both sides agreed to make them public be waived.

The only stipulation placed upon the proposal by Sapiro’s attorney was that the arbitration hearing be open to the public. William H. Gallagher, chief of the plaintiff’s counsel, wrote “you doubtless understand that our action is based upon false publications concerning Mr. Sapiro. One effect of bringing the suit is the opportunity to give the world the facts. That opportunity my client cannot afford to sacrifice.”

He pointed out that because of the nature of Mr. Sapiro’s charges, the arbitration proceedings should be public.

Mr. Gallagher said Mr. Harrington notified him May 3 that Mr. Hanley had been informed of Mr. Sapiro’s willingness to submit the case to arbitration. Yesterday, however. Mr. Gallagher said he was notified by Mr. Harrington that Mr. Hanley had “definitely decided to decline our request that the entire matter be referred to arbitration.”

Among the members of the Arbitration Committee, Mr. Gallagher pointed out, is Edsel B. Ford, son of Henry Ford.

“So confident were we in the fairness of the committee.” he added, “that we were willing to abide by the decision of associates of Henry Ford’s son.” Gallagher said.

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