The Detroit times., 1910-01-26
ARE
FIG HTIN C HARD
FOR INJUNCTION
Fourth Attempt To Tie Up EMF
Co. Made Before Judge Swan
Stacks of Afidavits Figure
III Case.
Feature of Arguments Is Lively
Squsbbles Between Atty John
S. Miller and Elliott @. Stevenson.

Judge Swan heard arguments all
day Tuesday in the federal circuit
court. on the application OF the Stude.
baker Co. OF South Bend. Ind. for an
injunction against the EMF Co, OF
Detroit. restraining the latter from
abrogating the selling contract be.
tween the two firms. which the EMF
20, repudiated Dec. last, and pro-
hibiting sales OF cars manufactured by
the EMF TO anyone except the StudG.
bakers
This is the fourth attempt OF the
Studebakers 10 secure a temporary re-
straining order, Judges Severens, War
rington and Swan having previously
refused TO take summary action. This
application is made in connection with
the second suit started by the Studa.
bakers, and the arguments are based
upon volumes OF affidavits submitted
by each side. These AfldaYlts already
run into thousands OF pages OF type.
writing, and q new sheaf was died
by the EMF Co. counsel during the
arguments. this lot weighing q tribe
more than two pounds.
In the pleadlngs before Judge Swan.
each side maintains that an adverse
decision would result In ruinous loss.
the EMF orators declaring that an In.
junction would cause the closing OF
the plant. while the StudebakeTs' rep.
Tesentatives insist that their selling
force and organization will be de-
stroyed II the EMF cars are sold IN.
dependency to dealers. The force OF
this argument Is impaired somewhat
by the fact that the EMF cars are
now. and have been for some weeks
sold In just this way.
John s. Miller, the famous STANDARD
Oil Co. attorney, took up all the morn
| ing in his presentation OF the Stude
baker side OF the case. He engaged
il spirited rallies with Elliott @. Ste
venson. chief attorney of the opposing
legal forces.
Miller began by detailing the his
tory OF the EMF Co and the debut
OF the Studebakers in the automobile
industry. He described the negotis
tons by which The stude bakers first
secured the selling agency for a por
ton OF the country. and later sole sell
| ing rights. purchasing a minority In
terest in the EMF Co. at the same
time. He pictured the advantages OF
the Studebaker alliance, with the organ
ICED Studebaker selling forces. to the
young Detroit concern. quoting letters
OF Walter E. Flanders. president VI
the EMF. in support Of his conten
ton.
Reading the contract. Miller dweit
longest on the section which provided
that in case the number OF advance
orders for any four months fell below
]. 500 cars. the board OF directors OF
the EMF Co. might meet In special
session and either retrench on ex-
penses decide to sell cars independently
Ct the Studebakcrs. or give the latter
opportunity to relieve the situation.
This last clause Miller construed into
an option comforting a prior right 20
the Studebakers, and he declared that
the course Of procedure OF the EMF
Co. directors had been irregular in re-
pudiating the contract.
With regard to the schedule which
was the basis OF tho differences, NIL.
Ter denied that II formed a contract.
denied the right Of any Studebaker rep
representative to make II without ap'
prevail of the directors OF the Stuae-
taker Automobile Co, and denied
that It would give ground for repudlat.
ing the contract even II II we're a valid
agreement.
More than 100000 had been ex-
pended by the Studebakers In advcr.
Using and selling EMF cars, Miller
said. a thousand agents had been sc.
cured. and contracts for 10000 cars
made at the time the contract was
annulled.
What. we are after Is an injunc-
ton" he Numbered toward the close OF
his argument We want them forbid
den TO take away our organisation,
our agents, our dealers"
At one point Miller quoted a de-
cision in support OF his contention.
Then we are to hold our cars un-
sold II You do not take them, are WEI"
inquired Stevenson, sarcastically. Are
you in a position to hold US up?"
Read the decision" retorted Miller.
1T may make your clients honest"
II would read 1t II It would make
! ours honest" replied Stevenson with
equal asperity.
I'VE are ready 10 take their cars"
argued Miller at aLother stage. We
are ready and willing right now"
The afternoon was taken up mainly
by Elliott @. Stevenson, who detailed
he causes which led the EMF direc-
tors 10 annul the contract In the belief
that a scheme was on. by Withholding
orders. 10 get tho EMF into financial
tiflcuitias and force II into contem-
plated $50, 1000, 900 merger Of automo-
bile. concerns.
The new stack OF affdavits Is from
dealers. largely. and the trend OF all
.hese is that they did not purchase
EMF cars because NJ the prestige of
he Studebakers. but because OF the
merit Of the cars themselves.
-----~
-.t-It-I o., ntd R.-.a