The Detroit times., 1909-12-25
sTUDEBAKER PLANS
Barred BY ". {.
FLANDERS
South Bend Concern Wanted Control
Of EMF Co. To Turn It Over To
$S0,000,000 Syndicate It
Was Promoting.
Judge Severens Refuses Restraining
Order Against Detroit Company
Local Case Comes Up Monday.

About a peck OF affidavits bearing
upon the -Studebaker litiga-
ton were filed In the United States
district courts, Friday morning, by at
torneys for the EMF. side.
The most striking Is one from Wa.
ter +. Flanders. president of the
observation-disclosures Co., in which
he tells OF conference with Frederick
s. Fish. one OF the officers of the
Studebaker Automobile Co. Flanders
says he was urged to unite forces with
the Studebaker interests and thus con.
troll the EMF. Co. for the purpose
OF turning II over To new $4,000, 900
automobile corporation to be formed
by the Studebakers.
In this combination the Everitt-
Metzger-Flanders Co. was to he
turned in for 100000 to $7,000.O00
Flanders says that he was cautioned
not to talk to other stockholders and
directors, but declared that he would
detail the whole plan In open meet
ing and that this broke off the negotia.
tons.
The other affidavit may be divided
into two principal classes, those from
firms contracting to furnish materials
TO the EMF. concern and those
from automobile dealers. The docu-
ments from material concerns include
the Morgan & Wright Co, the Alum
mum Castings CO.. the McCord Man
ufacturing Co, The Detroit Stoker &
Foundry Co, the Edmonds a. Jones
Manufacturing Co.. the &. X. Wilson
Body Co. and the b. F. Everitt Co.
All of these show that they have con-
tracts to furnish large amo nts OF ma
terial to the EMF. factory that the
granting OF an injunction against the
EMF. by Judge Swan would cause
them great loss and compel them to
discharge a large part Of their EN-
ployes.
without exception the affidavits
from automobile dealers In all por-
tions of the country purport to show
that the policy OF the Studebaker
Automobile Co, since II assumed the
selling agency for the EMF. and
Flanders cars last September has been
such as TO injure the trade standing
of those cars. The dealers say that
they were compelled to a .cept other
cars. which they did not want. to get
the e M-F. agency, and that they were
allowed such very small discounts that
thew could not conduct their business
proftably.
c. Arthur Benjamin. of Syracuse. y.
Y. makes the strongest OF these al
6dayits He alleges that he was told
ne would have 10 purcr' &c % Garford
A. fnr In
and r lnders cars. He declares That
the discounts allowed were such that
Il was next to impossible to secure
parts TO replace broken ones In cars
sent in for repair. He would nave
taken up another competing me OF
cars. he SAYS. had not the EMF
contract with the Studebakers been
annuled
All the dealers say that the Stude-
baker Automobile Co, advertised In
such a way as TO give the impression
that It had purchased the EMF. Co.
and that this injured the standing OF
the latter everywhere.
In several large folios are shown
the kilograms and letters received
from dealers all over the country VINO
hurried to ask for selling rights as
aeon az they heard that the selling
contract had been repudiated and that
tho EMF. and Flanders cars were
IN be sold directly by the makers.
r. Wickliffe Twyman. who says that
he was employed by the Studebaker
Automobile Co. and resigned because
OF the business methods employed
gives a strong affidavit in which he
describes the circuitous route
taken by orders for parts to be sup
nlied In repair work, an order having
to go through half dozen Offices He
declares that the treatment OF agents
and retailers was illiberal and unfair
on the part Of the Studebaker GO.
There will be hearing on the in
junction matter before Judge swan
next Monday.
KALAMAZOO, Mich. Dec. 24.-Re-
fusal of Judge H. F. Severens OF the
sixth federal circuit court to grant
restraining order against the Everitt-
Metzger-Flanders company. leaves the
Detroit concern free to abrogate sell
ing agreements with the Studebaker
Automobile company. of South Bend
Ind. which claimed the right under
the original contract of August. 1908
to handle the entire output OF the FAC