The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1910-01-01
CO. REFUSES
ALL OFFERS OF
COMPROMISE
Studebaker Men ON Board Of Local
Concern Make Desperate At
tempt in Directors Meeting
To Settle Squabble.
Turned Down Hard by Detroiters,
Who Sustain President Flanders
Action in Annulling Contract.


EMF Co. Friday afternoon the Offers
1f the Stakeholder Automobile Co. To
compromise the differences between
the two concerns was absolutely and
finally rejected.
II was because OF this pending meet.
ing that the bill OF complaint OF tho
Studebaker Automobile Co. was NOT
filed Thursday afternoon nor Friday.
Instead. the efforts OF the Studebakers
were bent TO prevent the meeting uf
the EMF. directors, this even going
TO the length Of attempts 10 secure
an injunction.
BY a majority vote the EMF. d.
rectors sustained the action OF Presi-
the selling contract with the Studio
bakers. and all the subsequent actions
OF the officers OF the company in thu
legal fight that has followed the void
ing OF the selling contract were like
wise sustained. Directors Hayden
Eames, Frederick s. Fish and Clement
Studebaker, the representatives Of the
Studebaker interests In the director
ate OF the Everitt- Metzger-Flanders
Co. argued and voted against this
ratification.
Could the Studebakers, by injunc-
ton or otherwise, have prevented the
holding OF this meeting. the abroga-
ton OF the contract. by which the
Studebaker Automobile Co. was TO
have the sole right 10 dispose OF the
EMF $50" and Flanders 80" cars
TO agents and dealers throughout the
country. would have remained the act
OF President Walter f. Flanders and
not OF the EMF. directors.
The position OF the Studebakers has,
therefore. been materially weakened
| by the holding of this meeting Notices
for II were sent out Tuesday, follow
| ing the action OF Judge Swan Monday
| in refusing to dismiss the first suit
OF the Studebaker Automobile Co.
without prejudice and unconditionally-
Failing 10 stop the meeting. the
Studebaker representatives In the E.
M.-F. directorate attended and again
tried to effect compromise. Other
attempts have been made ever since
President Walter r. Flanders first
manifested his disposition to declare
| the contract void on account OF the
failure OF the Studebakers 10 take as
many cars as we're contemplated In
the schedule OF deliveries fixed for
the companies.
The point at issue has been as to
whether the schedule arranged by cor
respondence and conversations or the
minimum figure of $500 cars as named
| In the contract, was the proper
amount for the EMF. concern to In
sist upon the delivery of. This was
again the issue Friday Messrs. Eames
and Fish refusing to admit that their
company was bound to accept 1920
cars, as called for in the schedule.
Finally the Studebaker representa-
| tives wanted to know what compro
mise the other EMF. directors would
accept.
I'VE will not compromise. the con-
| tract has been violated by the failure
OF the Studebaker Automobile Co. to
| live MP 10 its promises and we. will 60
ahead on the lines we have laid down"
was the reply, in substance, OF DR.. j.
b. Book.
The vote sustaining President Elan
ders' action was then taken.
| II was shown in the meeting that,
since the annulment of the contract.
Dec. 9, the EMF. has received or
ders for 10000 cars and that 1000
have been delivered.
| In one respect at least the Studc-
baker Automobile Co. appears to have
surrendered. Dealers who have
handled the Studebaker and EMF.
cars have received notice that they
may sign up with the EMF. COM
pany directly, for their own protec-
ton. They will receive the deposits
which they have, as agents, with the
Studebaker Automobile Co.
Most OF the dealers who have re-
ceived this notice have made haste to
get under cover. George w. Hanson,
OF Atlanta, Ga. Is In Detroit as tho
result OF notice from the Stude-
bakers, telling him he could sign up
with the EMF. Co. for his own pro-
lection, and that II ar change took
place the matter could De talked over
later. He confirmed the telegraphIc
notice by personal talk with Messrs.
Fish and Eames, directors In both the
Studebaker and EMF. companies.
Other dealers have been coming 10
town since receiving their advices and
the prospect is that the EMF. out.
put for the year will be quickly sold
Now that the last hope of negotja.
lions for peace between the two com.
panies has failed II Is possible
the bill of complaint OF the Stude,.sx.
er Automobile Co. may be materially
altered and a suit for damage. due 10
the abrogation OF the contract
brought
In reply to the plea OF the Stude-
bakers that the EMF. Is now Turing
away the agents, the EMF. company
will reply that these dealers were
EMF. agents before the Studebaker
marketing contract was made. and
that the business OF the EMF. he's
really suffered through the attempts
OF the Studebakers to compel these
dealers TO carry cars OF Studebaker
manufacture along with the EMF.
line, thus causing the dealers to drop
the EMF, In some cases, and take
up competing lines.
II will also be alleged that the
money expended by the Studebakers
in advertising and organizing agcn-
cies has been spent largely in the at
tempt TO make a market for their