The investment Fred Maytag made in Mason's automobile factory turned out to be one of his worst financial decisions. Ed Mason targeted Maytag because he had capital, many wealthy friends, and had difficulty saying "no" to people in need. Fred Maytag lost $300,000 in the auto business. One reason the automobile plant lost money was due to the fact that Mason-Maytag automobiles were so well built, and car prices were extremely high. Because of this, the average American could not afford one and sales reflected this. 

    As a result of the suffering business, many of Maytag's friends who had bought stock in the company now owned worthless pieces of paper. In one instance, Maytag was so bothered by a loss suffered by his close friends from Newton, Iowa, that on Christmas morning 1923, each of his friends found a check covering their losses from the stock. The checks totaled more than $20,000.