Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-08-08
Wind-up of Detroit Concerns
Reveals Story Of Frenzied
Finance
GLIB WORK OF PROMOTER
Charles Berg Forms Big Companies in
Many American cities-Pays Bills
With Stock Subscriptions and There
Are No Profits for Investors-other
Facts Given.

Detroit, Mich, Aug. s.-Capital
comes easily to Promoter Charles
Berg. He, had no difficulty in secur-
ing hackers for his auto bus company
to an extent of more than SS,000000
but the promised dividends have failed
and Mr.. Berg is in London.
The story was told in the windup of
the Citizens Transit company of De-
troit, capitalized at 100000, and
the Imperial Auto company, cap
italized for 100000, and reveals a
tale of financial finance involving many
Detroiters and capitalists elsewhere
Following are some of Berg's concerns:
Imperial Electric Motor Company
Organized under the laws of Maine
to control and manufacture four motor
electrical equipment for commercial
automobiles; capitalized at $1,000 600
License granted to subsidiary compan-
les, but no equipments manufactured.
Cleveland Auto Transit Company
Capitalized at 100000. Organized to
operate thirty sightseeing cars
equipped with Imperial four motor APP
paratus One car delivered
Imperial Transit Company of Penn
ylvania--Organized at Pittsburg to
manufacture cars equipped with I'M
perial motors. Capitalized at s1,000,-
600
Auto Transit Company of Phila-
delphia-0rganized April 81, 1906. Cap
italized al s1,Oo0,OO0. To operate thirty
Imperial coaches. Two cars delivered.
Imperial Transit Company of st.
Capitalized at 100000. To
operate thirty Imperial cars. No cars
delivered.
Citizens Transit Company Of De-
troit-Capitalized at 100000 and sub
sequently increased to 100000. To
operate fifteen Inperials. Three cars
delivered, all failures.
Commercial Truck Company Of
Acknowledgements at Philadelphia on
March H. 1906 and capitalized at ST.
100000 to manufacture Imperial cars
and commercial vehicles.
Imperial Auto Company of Detroit
Capitalized at 100000 and subse-
quently reorganized under the name
of Commercial Motor Vehicle COM
pany, to manufacture Imperial cars.
Turned out three, all failures.
Imperial Electric Motor Company
Reorganized under the laws of New
jersey with capitalization Of 1,000,-
000
ganized in Toronto There are four
lit c,i,,, i1.lr
operations We're started or about to
be launched.
Berg's trail leads thru a dozen Amer
lean cities. including Detroit, Chicago,
Philadelphia st. Louis, Cleveland,
Pittsburs, and others, into Toronto,
Canada; London, England, and ST.
Petersburg, Russia. Berg's plan was to
organize companies to operate the So
called sightseeing auto BUSES in cit
les. manufactured from patents In
which he claims a controlling interest.
Several machines have been built from
his specifications, but so far as known
no dividends have ever reached the
investors.
The total capitalization of Berg's
known companies exceeds ss,0O0,0OO,
with a good proportion of the stock
paid in In Detroit Berg was lavish
with the stock in his concern, giving
some of it. much below par, to settle
expensive tailors' and hotel bills, and
for the rent of his summer home at
Crosse isle
The windup Of Berg's affairs here
brought testimony from Philadelphia,
Pittsburs,, Cleveland, and other cities.
1t is all alike Berg no sooner Sc
cured stock than he began to get rid
of it in this fashion A piano dealer
got nearly $500 worth for a piano. A
tailor got about $4,000 worth. Other
stock he sold at such cut rate prices
that when the directors endeavored to
interest heir friends in the company to
the extent of selling them treasury
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