The Detroit times., 1910-03-09
EMF CO. PASSES
To CONTROL OF J.P.
MORGAN & CO.
Practically the Entire Stock Pur-
chased on Basis of About Six for
One. Local Plant Will Be De-
veloped on Immense Scale.
Deal Probably First Step in Giant
Merger OF Which Detroit Will
Be the Headquarters.

NE w IOHN, mdfCf 0s-lH N'S
offices of j. p. Morgan & CO. the
report that that firm had obtained
control Of the EMF automobile
plant in Detroit was confirmed. u
was also stated that behind the
purchase is plan 20 end the hit
cation with the SJudebaker Broth
ers Mar dfacturing Co, which has
been before the courts for some
time.
In connection with the purchase
contract has been entered into
with w. e. Flanders to continue as
president and general manager OF
the EMF Co. The Studebaker
company had minority interest
in the EMF Co., and Il is stated
that they will retoin that interest.
at least Tor the present
For a consideration OF S6.0O0,OO0,
which is on basis OF about six Tor
one, practically the entire capital
stock and the plants of the +. r.
Co. manufacturers of automobiles.
both in Detroit and Port Huron, have
been sold TO J. r. Morgan & Co. OF
New York. The deal was closed In
New York Tuesday. and is believed a
stet toward monster automobile
combine Certainly the deal is one OF
The biggest in the history OF the motor
ear. and will add greatly TO Detroit 3
.mpoI tance AS the center OF the IN
lustry.
The company was represented in the
negotiations by President Walter +.
Flanders, Secretary Robert NJ. Brown.
son and Attorney Elliott q. Steven
son
OF ;he old stockholders. Mr.. Flan-
ders alone retains his holdings, and
ne will continue to act as president
and general manager Of the company
and a member OF the board OF direc-
tors. The other o2icers. II is under
stood. will retire. The deal means
the development OF the EMF. on a
tremendous scale The concern Will
ultimately be capitalized at from $780,
600 900 TO $50. 900 900. II Is said. There
Is possibility that because OF the
present pressure OF business, the eX'
tensions planned by the company VIII
not be undertaken until fall.
Confirmation of the deal came TO
Vice President j. b. Book from Priest
dent Flanders Tuesday night Dr.
Book was one OF the founders OF the
company. but his entire holdings have
been disposed OF along with those OF
the other shareholders. big and little.
Or. Book says the deal means much
ior the future development OF Detroit,
and that the industry will expand here
on scale never before dreamed OF
IT. as suspected. this Is the first step
United States Motor Co and other
big interests. Detroit is likely TO be
come the headquarters OF the syndl'
cate.
Representatives OF J. 7. Morgan &
co are expected to visit Detroit soon
and look over the plants that nave
been purchased II is understood that
Mr.. Flanders will have associated with
him in the administration OF the al
Yairs of the re-organiZed concern AT
least two or three men now prominent
IN the local motor field
EMF department heads have be
come independently rich as result O..
lie sale. Blocks OF stock had been set
aside as part OF Mr. Flanders CO
opcrative plan. 10 be earned by the
cmpioyes in question In addition 10
ibefr salaries. Even though 1t had not
been fully earned. Mr. Flanders insist
~ that this stock be SO treated AM
nat The employees he paid for 1t in
rI!l. In consequence. sum approx
laline S500,00 will be distributed
among the following men, according
10 their holdings: Thomas Walhurn
factory manager of plant No. /. Max
Wollering. OF factory No =; l.. Leroy
pellttier. advertising manager; Frank
= Fisher. assistant to the president;
Robert Brownson general counsel and
.ecretary: +. A. Wade, purchasing
agent. and Louis Logic, head of the
order and parts department
II is rumored in local trade circles
that the Studebakers. who have been
lighting for control Of the EMF. for
some time. had hand I'm the New
York deal. II this was the case, their
connection with the transaction prob.
ably will become apparent in the very
near future. The Studebaker and
Morgan interests are said 10 be rather
closely allied. and If the current
rumors are true. the deal just ar.
nounced is In the nature OF final and
successful coup on the part OF the
Studebaker interests.
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