The Washington times., 1910-03-23
Romance of Young Men
Who Built Autos Told
in Detroit.
PIERPONT MORGAN
SEES OPPORTUNITY
With Means at His Control to Ad-
Vertise Cars, Success Is
Assured.


troit manufacturers, and a few OF their
faithful employees, there has come a
story of one Of tie rare instances Of
the ningling Of sentiment and business
a gigantic financial deals
'@Weu, I see Pierpont Morgan has
gone into the automobile business -
was about all the public knew or said
when It was recently announced that
the New York money king had pur-
chased the EMF. Automobile Com
pany at Detroit Newspaper items that
Morgan had purchased sOmethinE-frOm
an old painting 10 q railrOad-Were he
coming common and 1t created no furry
when he tried his hand at automobiles:
the amount involved, according TO re-
port, varying from s45Q0.O00 to SS.000.G63,
the latter figure perhaps being nearer
correct
Business Romance Ends.
To the few on the inside, however. the
transaction meant more than the mere
transfer Of Morgan money for so much
machinery and stock. There has been
enacted out In Detroit within the past
eighteen months a little business ro-
nance. The Morgan syndicate rang
down the final curtain and left the en-
tire cast contented and unexpectedly
rich.
Here is the story as IL has now leaked
out. With a little dialogue thrown in.
It would remind one Of the offerings Of
the popular fiction magazines, for it has
the dominant moneyed man. two struE-
Cling manufacturers, associates who
stuck through thick and thin. and a
large element Of pluck and foresight
81 10 arrf ha
financial drama.
Several years ago there were estab-
ushed in Detroit two automobile plants.
each turning out cars in moderate num-
bers and each paying a fair share of
profit The cars themselves were Of
the good, reliable sort, not gotten I'D
particularly for show but always to be
depended upon when the real test came.
Advertising Neglected
That the cars were not as well known
as others was due to the lack or spec
tacular advertising. Their makers had
not fallen in with the more modern and
progressive way. Consequently. with
their old school ways they fen behind
IN the procession Of motor makers. IN
other words they marked time and
this. In business, means that one is go
ing backward
In Detroit at the time. minus the
Morgan millions they now possess. were
Walter F. Flanders and Z. Leroy Pei
letter. The former was a business man
who knew things about motors: the
latter was an advertising specialist
whose absorbing passion centered I'm
automobiles Pelletier was an old bicycle
man who had gotten the better Of com
and when every town saw half it's EoDu-
lation astride the then latest invention.
As the automobile came into ascenda lcy
he had been drawn into that business
as offering a wider field. for autos sold
for thousands while bicycles sold for
hundreds and less
Opportunity Recognized.
These two men, one with his business
sense and the other with his bent for
obtaining publicity, saw the opportunity
that lay before them in these two prac-
tically unproEressive factories. y cur
sorry examination showed them IN I
nothing save old-fashiOned methods were
retarding the progress.
With much difficulty they raised $3.50.
600 cash. Just eighteen months ago tsey
bought the two plants and consolidated
them. Many never heard Of the auto
mobile they manufactured until veal
ago last fall Then IT spranE into public
notice in most amazing fashion News
papers and magazines became interested
in the manner I'm which the EMF car
focused attention. The CXuedienr OF
using letters instead OF q name for the
new car excited curiosity. which in turn
begOt interest
And now comes the story Of the mer
Dehlnd the engine, those who stood I'm
the factory at lathe machine; mOldeI
and drill and wrought the parts that
went into perfect whole Flanders
who furnished the brains OF the COM
pany back in Detroit, while PelleueI
flooded the country with tales of EMF
prOWeSs, was doing his best 10 make
the machine represent an the adver-
tisements said about It, The company
was forced to increase it's capital "a
one million dollars and open new shops.
Trained Men At Work.
At the beginning. when the affair was
q venture and not the success Il then
had demonstrated ii was 10 be, Walter
i. Flanders had surrounded himself
with trained me-, young men with ideas
and ideals. He had given them more
or less free rein out in the factory
rooms He had made il worth while
10 work with mind and hands by giving
them a personal interest in the handI-
work they wrought-that is, Flanders
had distributed among them small
blocks of stock, TO be earned in the
three years of hard work to follow.
True, Flanders and the two men whl
had furnished the most money held tn
larger prOtion of the stock, but there
was much OF it distributed among tn,
heads OF departments, and those wh'
tCiled between factory whistles.
Enter here the money kings and TIT
groundwork for the sentiment in busi
ness that soon was TO demonstrate tina
there is such a thing,
There came preliminary steps tOwar
the formation Of a big automobile com
bine, and the genius OF PeIetier wa
given full sway. Pelletier'S praise o
the cars first attracted the notice o
fnanciers who were looking about 70
such an opening. and Pellvtier conduct
ed the prelimiEaries incident to the sale
Millions Promised In Profits.
When the opportune moment arrived
FLANDERS went into the sanctums Of tn
money kings He carried with hin
papers demonstrating the work an
vsorth of the company that had cost hir
and his associates just $4,000 eightee
months ago. he came out with a cheC
for about thirty-two times that amount
When the plans for the sale of IN
stock were first laid the men who hel
the largest blocks met in secret session
Flanders announced the details Of n
pending sale. il meant millions Of an
expected profits, Everybody realized il