The Detroit times., 1910-01-12
BUSINESS RIVALS
BACK EMF CO.
File Afidavits Stating That Mesger
Discounts Allowed By studebAkers
Were Ruinous To Business.

Following the action Of Judge Wal
rington In Cincinnati. Monday, In ee-
fcrring the Studebaher-Ir-M-F litigation
back TO Judge Swan for hearing and
trial, the EMF Co. has fled its an
swer to the bill OF complaint nied liza
tehalf OF the StudeJaker Automobile
Co. some time ago.
What Is particularly striking about
this answer and the accompanying at
| fi6avtts, IL that the EMF management
has secured the cooperation OF the
heads OF other and competing automo-
hile companies insofar as the making
OF afidavits II concerned. II IL tn be
expected. therefore. that these heads
OF rival companies will be EMF wit
nesses In the fnal trial.
w. c. Curant. general manager Ut
the General Motors Co., has signed Al
afndayit In which he states that he
discount 10 20 per cent to dealers OF
the Buick car. He criticises q dis
count Of 10 per cent as entirely too
low. This IL In support OF the con.
tention Of the EMF Co. that the
Studebakers. In fixing the low rate OF
discount. were making IL almost in,.
possible for dealers 10 handle the
EMF car at advantage. and thereby
destroying the trade.
Other xfidavits OF similar tenor are
made by NJ. l.. Pulcher. OF the Oak
land" company; Robt. c. Hupp. maker
Of the "Hubmobile:: w. c. Leland. CT
the Cadillac" J. 4. Bartholomew. OF
the Glide" I. r Palmer, OF the Car
tercar:" Benjamin Briscoe. OF the
MAXWELL Fred W. Haines. OF the
Regal" and Frank Briscoe. OF the
Brush" All OF these swear that they
know Of no instance II a manufacturer
narketin- car successfully at a dis
count as low as 10 per cent.
In the answer hled, the EMF Co.
takes the position that the marketing
contract entered into with the Stude-
bakers was modified by TN, schedule
CT deliveries agreed upon. as the E-M F
people thought. With all due form. ard
that the subsequent reputation OF
the schedule by the Studebakers was
In itself violation Of the contract.
They also contend that this contra.
never properly applied to the Flanders
"20' car and that no price was ever
agreed upon for that car.
A naive confession is made I'm one
of the a1idavits to the effect that the
management OF the EMF Co. did nor
realize the full import OF the contract
entered into. and that, when the time
came that adherence TO the terms OF
that contract would have meant ruin,
as they saw II. for their company, they
believed Ii their duty to violate ard
repudiate il.
II Is also deried that the Studio
l..l In Ct.... xtsr -
sale; II Is asserted that the contract
lacked mutually, and that the EyM-El
Co. was not bouad to continue. the re,i
lations brought about by this selling
agreement. The history OF the EMF
Co. II reviewed In the answer, It's
quick rise and the number OF agents
III attracted. The charge that the
Studebakers spent 100000 In advcr-
Using the EMF cai and secured man.
agents IL denied. the answer stating
that the Studebakers really took over
the EMF agents, or as many OF them
as would accept the new selling con-
ditions and the other Studebaker
lines. ana then planned to force the
F-M-F CO. into merger with a capt.
tai stock OF $s0.o00.000. Walter +.
Flanders makes affidavit that he did
rot suggest the formation OF such a
combination. and says that he rejected
the Offer when II was made by Fred.
erick G. Fish as being unfair to the
EMF stockholders in that the EMF
would have to earn most Of the diyi-
dends on the whole $S0,000,000.
This feature Of the attempt to form
o new combination is greatly dweit
upon in the new answer. In addition
the charge IL made that the Stude-
bakers injured the reputation OF the
EMF by putting that name In small
letters on the cars and their own
name in large letters.
A peculiar incident Is related In one
AFFIDAVIT BY Walter z. Flanders. he
states that he contemplated putting
oct q closed moSel of car for winter
use but was dissuaded by one Of the
Studebaker representatives. Later.
the New York agency of the Stude-
bakers returned q number OF bodies,
end Flanders shows that the reason
was SO that heavy bodies, purchased
elsewhere, could be put upon the
chassis and the hybrid car sold for
$3.50.
A showing IL made that the schedule
Of deliveries OF cars from the EMF
Co. was continued In a report TO the Ill.
rectors OF the EMF Co.. Oct. IL, thar
this was assented to by the Studebaker,
representatives, and that. in further
ance Of the expected orders. t40G.o00
was spent In enlargiDg the factory ca
racity. By reason OF the failure oi
the Studebakers to take cars ay
ordered. the plea u made that the
EMF Co. sustained . loss OF $4,000
through the storage.
Frederick 8. Fish 10 quoted In one
AFFIDAVIT Us ss-ins that the schedule
had been prepared with care and would
lie adhered to; that the Studebake.s
ould sell more cars than the EMF
could make. and that the cars would
be taken and paid for just as agreed.
II was shown thai l2,460 men arr
employed In the EMF factories and
those under contract TO supply parts.
For this and the other reasons given.
the EMF Co. asks that the suit Of the
Studebakers be dismissed and no In
junction granted. The failure OF tae
EMF Co. Is predicted IL an injunc-
ton were allowed.
Finally. IL was stated that the suit.
/ IL any should lie, Is for violation OF an
ordinary commercial contract: In
other words, q plain suit for damages.
A big roll of copies Of letters from
dealers complaining OF their treat