New-York tribune., 1910-03-10
MAY BE AUTO TRUST
j. p. MORGAN s co. TO
FINANCE 1T, IT'S SAID.
Rumor ReUiUed By Studebak-
ers Taking OTer E. VI. z. Co.
Morgan Firms Denials.

/ for some time in the financial district
of the coming formation by J P. Nor
gan & Co. Of a huge automobii, trust.
with several hundred millions dollars
capital, were revived yesterday. follow
ing the announcement that the Morga II
! firm had purcha sed control of the Ever
itt-Metzger- Flanders Company, of De-
troit, commonly known as the "E. NJ. F.
Company.
A member of the Morgan firm said.
however. that they had acted merely az
brokers for the Studebaker Brothers
Manufacturing Company in the transac-
ton and We're not personally interested
in the purchase. He added that there
was no truth i'll the reports that a
gigantic merger of automobile companies
was being organized by j. P. Morgan &
Co, and that so far aa he knew no such
combination was contemplated.
It was learned that J. P. Morgan & Co.
acting for the Studebaker company. had
purchas scd ca per cent of the "E. NJ. F."
Company's stock for s4,S00,00O. This was
substantially all of the stock not already
held by the Studcbaker company.
! II was SldIeQ III tOIllSCllOI With II!e
purchase that a contract had been en-
| tered into with Walter E. Flanders to
continue as president and general man
/ ager OF the "E. NJ. F." Company for three
| years. It was also announced that the
| litigation resulting from the cancellation
| by President Flanders of the contract
under which the Studebaker company
| had acted as selling agent for the "E.
| VI. F." Company had been brought to an
/ end.
! \ report from Detroit that the capital
of the "E. NJ. F." Company ultimately
would be increased to between 100000, 600
and $50. .000, 900 was said in we'll informed
quarters here to be without foundation.
Autos Exempt as Yet.
The manufacture of automobiles has
grown within a few years to be one Of
! the most important of the country's in
dustries, and is one of the very few of
its class in which combination on a large
scale has not been effected. With the
trend so strongly toward combination in
the industrial world, it is widely believed
that it is only a question of time before
field will be brought about, a consolida
ton of such magnitude as to suggest the
Morgan house as the agency through
which it will be eventually arranged.
Already there have been several minor
mergers, embracing two or three COM
panies each, and 1t is thought that this
tendency may foreshadow the vast COM
binatlon which shall take in most of the
chief automobile manufacturing concerns
of the country through the merging of
these several groups or units.
This was the history of the evolution
of the United States Steel Corporation,
in only one of the constituents of which,
the Federal Steel Company, J. r Nor
gan &. Co were. interested at the out
set, and which they put together with
the National Steel Company. another
consolidation Of comparatively small
plants and various other concerns to
form the Steel Trust.
Morgan in Other Mergers.
As illustrating the steps that have
been taken toward the formation Of
minor automobile companies into units,
Z
country, the cases were cited Of the
United States Motor Company, which
vas formed in 1908 and took in practi-
cally all the big manufacturing COM
panics in the East. among them being
the MAXWELL BriscOe Motor Company, of
Tarrytown. and the Pope-Toledo Com
pany, of Hartford.
There vas also the General Motors
/ Company. formed in 1905 which took in
all the big plants in the Middle West,
including The Odds and Buick motor COM
Ianies and the Rainier Automobile
COMPANY and number of smaller con-
Germs
Members of the banking staff of J. ?.
Morgan & Co. were interested in the
/ formation OF the United States Com
pany, and the law firm of Ward Hay
den & Satterlec. of which Herbert L.
Satterlea a son-iu-law of J. Pierpont
Morgan, is a member are attorneys for
.he company. The Morgan firm is also
said to be interested in the Genera. Mo-
tors Company. Yesterdays transa ction
is believed to be another link in the
chain.
A man closely identified with the au
tomoble industry said yesterday that
while under present conditions a COM
bination of the automobile companies OF
the country was not necessary, he pre-
dicted the formation OF one purchasing
agency and one selling agency for the
entire country, even II the combination
of tho various automobile manufacturing
companies should fail of fuifilment
In connection with the taking over
of the IF VI. f." Company by the Stude-
bakers. attention was attracted 10 q dis
patch from Albany yesterday announc-
ing that the Studebaker Vehicle Com
pany had been Incorporated under the
laws of the state, with a capital Of
IS 100000 of which $3, 100000 is to be
first preferred { per cent cumulative
! 81 100000 Z per cent second preferred
stock. and So, 100000 common stock The
directors Of the company are Frederick
Z. DelafieId and Frederick Longfellow,
Of New York: Clement Studebaker, ir,
Frederick S. Fish and Scott Brown, of
South Bend, Ind
Hartford, Conn, March e.-Henry =.
Nuckols, president Of the Columbia Motor
car Company OF this CITY. said tonight
the reuort that an automobile merger was
being effected was rather belated news and