The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-03-10
BIG DEAL IN AUTOMOBILES
STT DEBGhERS BIT or THE'
g.. w. .. INTERFSTS.
Ris PrwRis IN Ih@ HusIReSs Attract On, go
tors IItiGaI's1 Has R~~U G:slnE on
fsV SOME T,m- >. y. Morgan 4 90.
Nppsar In TraR~srtIon a. the NUru,s.

'he history ~ the automobile industry
this country vas mad. public ye-t~r-
day when J r. Morgan q Co. announced
With the stockholders 81 the studebaker
Brothers Manufacturing Company the
banking hrm had purchased all oT the
-'ock 81 the Everitt- Metzger- Fla nSier.
,"mpaDy OF Detroit that was not already
owned by members % the Studebaker
hrm. II was said that the price raid
for the 81 per cent 10 the Detroit COM
pSny's stock bought for the Studebakers
vas nearly ssOOO.0Oo or practically m
me basis or for I on the capitalization
~ si.OcO.OOo
II was also announced that Waiter T..
Flanders. president and general manager
~ the Everitt- Metzger Flanders Com
RAINY. had agreed 20 remain with the
firm in the same capacities for period
~ three years. The litigation between
the studebaker firm and the big Detroit
company over the cancellation by Presi-
dent Flanders Of the selling agreement
between the two companies is to be ter
minated.
J. p. Morgan 4 Co. It was stated yea
'srday. acted In the matter merely a.
brokers for the Studebaker interests in
putting the deal through
The litigation between the two com
rAnies was rrecipitated by President
Flanders IN December p 1870. when he
wrote letter 20 the Studehaker company
at south Rend. Ind. giving notice that he
had cancelled the agreement between the
two firms by which the Studehakar
company had been acting a. exclusive
telling gent for the ~ horse power mp
and the 70 horsepower Flanders auto
mobiles produced by the Everitt- Metzger-
Flanders Company In his letter. which
was printed as an advertisement in a
great many Newspapers. Mr. Flanders
declared the south Bend company had
violated its contract by refusing To take
ana pay Tor the number Of cars u had
agreed TO take
he studehAkers a. once took legal
steps 10 prevent the EMF company from
'nnulling the selling contract. employing
John 8. Miller Of Chicago. Gen. Henry "
Dua3eld and Otto Kirchner Of Detroit
- aides 20 scott Brown. general counsel
- the company Their fret step was an
'tiempt to secure IN Injunction against
me EMF company IN Detroit court
ana when this failed they tired 90 secure
The injunction from Cnitad States
Judge In Cincinnati but the latter refused
he request and referred the matter hack
H. judge swan At Detroit The latter
rnaliy denied the Injunction and the
stGdebakera then began a suit for heavy
damages against the EMP companv
which sfit will nov be discontinued
after notifying the Ssudehaker firm
mat their contract had heen annulled
Pres dent Flanders announced the E-M-F
oomnany was ppady to make contracts
IN ia own account with agents sli over
80 country and agencies were placed IN
ne cites where the EMF cars had
'r~neriy heeu sold by Studebsker branch
uses After canceiling the selling
agreement th the sStudei aker COMPANY
10 k-M-f company did some very large
49, "rtisine. 80 the great plants ~ the ?
''mrany AZ Detroit and Port Huron have
.susCity o. i5.cOO EMF cars and . UsD I
anders cars annually. and q was 70
'"risd late m January that the company I,
'Eg 'Eken orders Tor all the ,Ir- Il could 7
,'~Iuoe Tor $40
- Everttt- NletzgeT- Fian de-s Com .
RAW was organ ned about two years /
$50 by p . EVeriti william y. Me,zger
md Walter Flanders who made up !
N" original hoard Of directors along with .
J. Palms DIR } b Book and " /
Barbour all of Detroit The company
'"cur-d the plants formerly used by the 3
"svDs automobile Company and North 1
'rr Motor Car Company ~ Dctru,s a. /
vel - plant at Port Huron owned nv
rno president ~ the Detroit Stove
Works. was president NJ th- Northern
'~mpanv ~ which Nr Mstzger had
=" been Interested Mr. Eyeritt had
rs-n president 81 the Wayne firm IN which
~ Palms and Or hook were heavy stock
m 1srs
f"S months after the company was
'-sanizsd William D. Metzger. the sales
manager made an arrangement With the
- d"hAk~r company by which tho latter
I'm vAs to sell 5000 cars. or half ~ the
rrs' years output of E-N-F cars In
Nm ~ last wear Frederick Fish
fAIrrnAn ~ the Studebaker executive
'"nmIt'e~ ard Clement Stldebaker pur-
fA-~d the sock 20 r. , Everitt and
william M~tzger IN the E-M-F cH5n-
r'i" paving about Ca On its par value
To-" buyers ~ we'll a. Hayden lanes
r'r'rai manager ~ the Studebaker firm.
'@-' el~"'ed directors Il the k-M-F
''f any after buying the -tnok which
-. 'hat ~ William Kelly. the EMF
go r0@r which vas also bought. repre-
'''''7 - rcr rent % the total capitaliza-
...
'." 'ari'aI stock was then increased
IN s;oo.fn0 10 SiDO.OO0 and u. - Roy
~'i"- advertising MANAGE ~ the
W '"mpany. a. ~ ell ~ a stock holder
'a- "nRag~d ~ advertising manager Nv
p" ~'gd~hak"T firm new agreement
- on rrsd" between the tao firms by
'''' - a. said that the south Bend firm
Ae '' take q Suo cnr- tr"m the Detroit
any - the ~ elve rroaths after
o. rsr lpop The F-M-F company
''a'"f 80 individuality hut the Stude-
% "f rrW ass - have tho selling rights
d q - - /. se