The Detroit times., 1910-01-11
BUSINESS RIVALS
BACK EMF CO.
File Afddavits Stating That Meagel
Discounts Allowed By studebakers
Were Ruinous To Business.

AesS" III SihciEuau, mOuudys IN re-
ferring the Studebaker-E-M-F litigation
back to Judge Swan for hearing and
trial, the EMF Co. has filed its an
swer' to the bill of complaint fled IA
tehalf OF the Studebaker Automobile
Co. some time ago.
What is particularly striking about
this answer and the accompanying az.
fidavits, Is that the EMF management
has secured the cooperation OF the
heads OF other and competing auton,o-
bile companies insofar as the making
OF affidavtts Is concerned. II IL to he
expected, therefore. that these heads
OF rival companies will be EMF wit
nesses In the hnal trial.
w. G. Durant. general manager Of
the General Motors Co., has signed an
affidavit In which he states that he
discount II 20 per cent to dealers of
the Buick car. He criticises a dis.
count OF 10 per cent as entirely too
low. This Is In support OF the con.
tention Of the EMF Co. that the
Studebakers, in fixing the low rate of
discount, were making II almost i'm.
possible for dealers to handle the
Emf car at advantage and thereby
destroying the trade.
Other affidavits OF similar tenor are
made by M. L. Pulcher, Of the. oak
land" company; Robt. c. Hupp, maker
Of the "Hubmobile;;" w. c. Leland. of
the Cadillac" ]. Is. Bartholomew OF
the Glide" ]. r. Palmer, Of the Car
tercar;" Benjamin Briscoe, OF tho
MAXWELL" Fred w. Haines, of the
Regal" and Frank Briscoe, OF the
Brush" All OF these swear that they
know OF no instance Of a manufacturer
marketing car successfully at q dis
count as low as 10 per cent.
In the answer filed, the EMF Co.
takes the position that the marketing
contract entered into with the Stude-
bakers was modified by the schedule
OF deliveries agreed upon, as the EMF
people thought, with all due form, and
That the subsequent reputation of
the schedule by the Studebakers was
10 Itself q violation of the contract.
They also contend that this contract
never properly applied to the Flanders
go car and that no price was ever
agreed upon for that car.
A naive confession Is made In ona
OF the affidavits to the effect that the
management of the EMF Co. did not
realize the full import Of the contract
entered into. and that, when the time
came that adherence to the terms Of
lthot oouketek would have meant ruin,
AZ they saw Il, for their company. they
believed II their duty to violate and
repudiate II. r..,,....s :. y. ~. (.
bakers ever had IN exclusive right OF
sale; 1t Is asserted that the contract
lacked mutually, and that the EMF
Co. was not bound to continue the re-
lations brought about by this selling
agreement The history Of the EMF
Co. Is reviewed In the answer, It's
quick rise and the number OF agents
1t attracted. The charge that the
Studebakers spent .$6O0.O00 In advcr-
Using the EMF car and secured many
agents IL denied. the answer stating
that the Studebakers really took over
the EMF agents, or as many of them
as would accept the new selling con.
ditions and the other Studebaker
lines, and then planned to force the
EMF Co. into merger with a CAPT
tai stock Of $80.0O0.000. Walter E.
Flanders makes affidavit that he did
not suggest the formation Of such
combination. and says that he rejected
the offer. when IL was made by Fred
erick c. Fish As being unfair to the
Emf stockholders In that the EMF
would have TO earn most of the divi-
dends on the whole $S0.000.000.
This feature of tho attempt to form
o new combination Is greatly dwelt
upon In the new answer In addition,
the charge il made that tho Stude-
bakers injured the reputation Of the
EMF by putting that name in small
letters on the cars and their own
name In large letters.
A peculiar incident is related In one
affidavit by Walter K. Flanders. He
states that he contemplated putting
out q closed model Of car for winter
use but was dissuaded by one Of the
representatives. Later,
the New York agency of the Stude-
bakers returned a number Of bodies.
and Flanders shows that the reason
was so that heavy bodies. purchased
could be put upon the
chassis and the hybrid car sold for
81 $50.
A showing Is made that the schedule
of deliveries Of cars from the EMF
Co. was continued In report to the dr.
rectors OF the EMF Co.. Oct. IL. that
this was assented to by the Studebaker
and that. In further
ance of the expected orders. Soc 900
was spent in enlarging the factory ca
pacity. BY reason Of the failure Of
the Studebakers to take cars as
ordered, the plea ~ made that the
fContsuueA m, Pane Ten.l