The Detroit times., 1910-01-03
|UUAEFUsE!
ALL OFFERS OF (
COMPROMISE
studebaker Men ON DoaFd q Local
Concern Make Dsspesate A.
tempt in Dreotpz3' Meeting
To Settle squabbls.
Turned Down Hard by Detroiters,
Who Sustain President Flanders
Action in Annulling Contract.

In meeting of the directors of the
EMF. Co. Friday afternoon the offers
OF the Studebaker Automobile Co. to
compromise the differences between
the two concerns was absolutely and
finally rejected.
II was because of this pending meet.
ing that the bill OF complaint of the
Studebaker Automobile Co. was not
nsed Thursday afternoon nor Friday.
INSTEAD, the efforts Of the Studebakers
We're bent to prevent the meeting of
the EMF. directors, this even going
10 the length OF attempts to secure
IN Injunction.
BY majority vote the EMF. d.
rectors sustained the action or Presi-
sent Walter r. Flanders In annuling
she selling contract with the Stude-
bakers, and all the subsequent actions
OF the officers OF the company In the
legal fight that has followed the void
ing OF the selling contract were like
wise sustained. Directors Hayden
bEames. Frederick s. Fish and Clement
6tudebaker. the representatives of the
6tudebaker interests In the director
ate of the Everitt- Metzger- Flanders
Co.. argued and voted against this
ratification.
Could the Studebakers, by injunc-
Mon or otherwise. have prevented the
holding OF this meeting. the abroga-
tion Of the contract, by which the
9tudebaker Automobile Co. was to
have the sole right to dispose OF the
EMF. go" and Flanders 80" cars
TO agents and dealers throughout the
country, would have remained the act
OF President Walter E.. Flanders and
not OF the EMF. directors.
The position OF the Studebakers has,
therefore. been materially weakened
by the holding OF this meeting. Notices
for II were sent out Tuesday, follow
ing the action of Judge Swan Monday
in refusing TO dismiss the first suit
of the Studebaker Automobile Co.
without prejudice and Internationally.
Failing TO stop the meeting. the
Studebaker representatives In the E.
M.-F. directorate attended and again
tried to effect a compromise. Other
attempts have been made ever since
President Walter r. Flanders first
manifested his disposition to declare
the contract void on account Of the
failure of the Studebakers to take as
many cars as were contemplated In
the schedule OF deliveries fixed for
the companies.
The point at issue has been as to
whether the schedule arranged by cor
respondence and conversations or the
minimum figure ORD 500 cars as named
in the contract, was the proper
amount for the EMF. concern to In
aist upon the delivery of. This was
again the issue Friday. Messrs. Eames
and Fish refusing TO admit that their
company was bound TO accept 1920
cars. as called for in the schedule.
Finally the Studebaker representa-
tiyes wanted to know what. compro-
mise the other EMF. directors would
accept.
I'VE will not compromise. the con-
tract has been violated by the failure
of the Studebaker Automobile Co. to
live up to its promises and we will go
ahead on the lines we have laid down.
was the reply. In substance, OF DIR. J.
3. Book.
The vote sustaining President Flan-
ders' action was then taken.
II was shown In the meeting that,
since the annulment Of the contract.
Dec. 9. the EMF. has received or
ders for 10000 cars and that 1000
have been delivered.
In one respect at least the Stude-
baker Automobile Co. appears to have
surrendered. Dealers who have
handled the Studebaker and EMF.
cars have received notice that they
NAV sign up with the EMF. COM
many directly, for their own protec-
ton. They will receive the deposits
which they have. as agents. with the
Studebaker Automobile Co.
Most of the dealers who have re-
ceived this notice have made haste to
get under cover. George w. Hanson,
of Atlanta. Ga, is In Detroit as the
result of az notice from the Stude-
bakers. telling him he could sign up
With the EMF Co. for his own pro-
lection. and that II any change took
nlace the matter could be talked over
later. He confirmed the telegraphic
notice by a personal talk with Messrs.
Fisb and Eames, directors in both the
Studebaker and EMF. companies.
other dealers have been coming to
town since receiving their advices and
Tho prospect is that the Emit out
mt for the year will be quickly sold.
Now that the last hope of negotia-
t,ons for peace between the two COM
nanies has failed 1t is possible that
the bin of complaint of the Studebak-
er Automobile Co. may be materially
o,tered and a suit for damages due to
the abrogation of the contract
brought. &c.,. a..a,t -
haters that the EMF Is now Turing
away the agents, the EMF. company
w,lI reply that these dealers were
EMF. agents before the Studebaker
marketing contract was made. and
,hat the business of tte-'E-M-F. has