The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1910-03-09
CO. PASSES
TO CONTROL Of J.P.
MORGAN & co.
Practically the Entire Stock Pur.
chased on Basis of About Six for
One; Local Plant Will Be De-
veloped on Immense Scale.
Deal Probably First Step in Giant
Merger of Which Detroit Will
Be the Headquarters.

For a consideration of So 900 600.
which is on basis OF about six for
one, practically the entire capital
stock and the plants OF the EMF.
Co, manufacturers of automobiles.
both In Detroit and Port Huron. have
been sold 10 j. +. Morgan & Co, OF
New York The deal was closed in
New York Tuesday. and is believed a
step toward a monster automobile
combine. Certainly the deal is one or
the biggest in the history OF the motor.
car. and will add greatly TO Detroit's
importance rs the center OF the in
dustry
The company was represented in the
negotiations by President Walter L.
Flanders, Secretary Robert NJ Brown
son and Attorney Elliott G. Steven
son
OF he old stockholders. Mr.. Elan
ders alone retains his holdings. and
he will continue 10 act as president
and general manager of the company
and member OF the board of direc-
tors. The other officers, 1t is under
stood, Will retire. The deal means
the development OF the EMF. on a
tremendous scale. The concern viii
ultimately be capitalized at from $780,
900 600 to $50 600, 900, ii is said. There
is a possibility that because OF the
present pressure OF business. the ex-
tensions planned by the company Will
not be undertaken until fall.
Confirmation of the deal came tn
Vice-Presdent j. B. Book from Presi.
dent Flanders Tuesday night Or.
Book was one OF the founders OF the
company, but his entire holdings have
been disposed of along with those of
the other shareholders. big and little.
DR. Book says the deal means much
for the future development OF Detroit,
and that the industry will expand here
on a scale never before dreamed OF.
II, as suspected. this is the first step
toward great merger with the
: United States Motor Co. and other
big interests. Detroit is likely 10 be-
come the headquarters of the syndi'
cate
4 Representatives of ]. T. Morgan
Co are expected TO visit Detroit soon
and look over the plants that nave
been purchased. II is understood that
Mr. Flanders will have associated with
him in the administration OF the al
fairs of the recognized concern M
least two or three men now prominent
in the local motor field.
EMF depart heads have become in
dppendently rich as result or the
sale Blocks of stock mad been set
aside. as a part OF Mr. Flanders CO.
operative plan, to be- earned by the
employees in question i'm addition or
their salaries Even though 1t had not
been fully earned Mr. Flanders insist
ed that this stock be 50 treated AM
that The employees he paid for IT In
full In consequence, a sum approx
mating $4,000 will be distributed
among the following men. according
10 their holdings Thomas Walburn.
factory manager OF plant No. J.; Max
Wollering. OF factory No. ,. +. Leroy
Pelle tier advertising manager. Frank
T.. Fisher. assistant to the president;
Robert Brownson. general counsel and
secretary +. \. Wade, purchasing
agent. and Louis Logic. head OF the
order and parts department
! II Is rumored I'm local trade circles
that the Studebakers, who have been
fighting for control OF the EMF. for
some time, had a hand in the New
York deal If this was the case, their
connection with the transaction prob
ably will become apparent in the very
near future The Studebaker and
Morgan interests are said 10 be rather
CLOSELY allied, aud IL the current
rumors are true. the deal lust an
nounced is In the nature OF a final and
successful coup on the part OF the
Studebaker interests.