 His downfall lay in his failure to cut production and costs quickly in response to the slump of 1929 and 1930, which led to an insurmountable cashflow crisis.In 1930, he had declared a dividend of $7,800,000 which was five times the actual net profits of that year.In 1931, he paid a dividend of $3,500,000—also out of capital—a ruinous procedure which he unsuccessfully sought to correct through a merger with White Motor Company.