The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-09-12
Corporation Capitalized al
Millions Will Go Under
With a Smash
WEALTHY BANKS ARE
INVOLVED IN DEAL
Investigation Shows Affairs
of Mammoth Company
Were Juggled and
StockManipulated

that The United States Motors cOKn-$8
pany, s42. $780, 900 corporation, Will
be thrown into bankrup tcy The COL
lapse Of this project forms one Of the
worst scandals in Wall Street ffnance.
Some of the most influential banking
houses of the United States were be-S
hind the formation Of tine combinA-
ton in 1910. and the public was CONS
pfetefy misfed concerning the stability
Of the concern
George w. Perkins was reputed 80
be one of the inspirers OF the amalga.
nation, while Morgan institutions have
figured prominently in its financing
Last year the preferred stock sold
above $50 per share. whereas today nj
collapsed to only ss,25. The common
stock last year went to SAP per shares
1t was quoted at only 81 bid this e.
ternoon.
Last year the issue of 5000. Doe
bonds WAS disposed Of at a.. notMtth-
standing that the condition OF the
company must have been known TO-
the insiders. Even then, however,.
many investors fought shy of the OF.
NAAA6 NiA LAC AtAaCI WAattuB ~ nQtGAt0e4
headed by Eugene Meyer, Jr., and
company was left with large part o.
sheir hands.
AS tate as Decent Der last President
Benjamin Briscoe. in his annual res
port to stockholders, made this state
ment: ~
Prospects for the companyas bupt-
Eness during the coming year are exc
i'ceedingly bright
Embarrassment q Surprise.
Yet Within six months financial dif-
ficuities were encountered to such ~
degree that creditors were asked ~
grant an extension OF ninety days
The embarrassment OF the company
so soon after the issue Of $4,000, coo
bonds took the financial community
by surprise. 1t Is hInIed that cerfaIn
l'banktng institutions seurried to cover
the moment the treasury was put IN.
possession of cash, and later refused.
to supply fresh credit. That tire
United States Motors company did NOS
deal with second rate institutions NJ
isclearly reflected by the personnel a.
the advisory COMMITTEES. formed Sev@a
rerai months ago. The chairman UE
!this committee Is George w. DAWSON
of the Central Trust company or New
York city. A. II. Wiggin, president 20
the Chase National bank; Charles Hs
s5abin of the Guaranty Trust company:s
Anthony n. Brady. Benjamin Sirens
Jr., first vice-president of the Banker1es
Trust company; Z. $. Williams OF tl1n
| Rubber Goods Manufacturing com
pany. and Neal Rantour of r. s. MOeG
/ ley & Company comprise the rest ok
rhe committee. 81
Ryan n StockIAolalcr. III
1 Among the prominent stockholdSfS
are Thomas F. Ryan, Herbert L n
sterlee, Harry Payne Whitney, MI
Richard irwin. The late John JaGuf
Actor was also a shareholder. III II
stated that these stockholders oQ
upwards of so per cent Of the tul,Il
amount eutsta nding, ssA
I The United States Motors cOmpxMfl
swas an amalga nation of the MaxWG3E%
fBrfScoe Motor company, Cofumbfa ~
tor company, Courier Car compoG$
Siray Motor company. Brush MN3
iabout company, Briscoe ManufaU4Y82
Ling company, and the Providence ~
fgineering works. The company nS
factories located at Tarrytown,
New Castle. Ind, Providence, RI
Id1artford, Conn.,, Detroit. Mich. NeS
ark, N. J.. and Dayton. O.
! 1t is declared by automobile auth&
ties that the total tangible assets yU11z
only the merest fraction Of the AAG163
gers total OBSERVATION-DISCLOSURES fkSx
WAS gFess imitation - -ASs
| The company seems to have 6S&
IOled numerically. The most re-
(ancident was the unloading Hpo
LOT the r. r. Thomas company aas
lis declared. very high figure
4Geneern- net Long age went Hn<l6 s3l!
A comparison of the compAny ET
tance sheets for 1910 and 1e1l
Egest fragrant manipulation. A.
THE assets Of 1910 was the mod0a8 I'M
Eof $7S,ss6 OF deferred charFeaL
by 1911 this was marked Ap MI
huge sum OF sl.706.s7S. It inc1g1
z discount and commission on IT.
lper cent gold bonds" just how
this commission was cannot be xtn&&
Assets Are Manipulascd
Then the elastic item patents ~
tracts and trade marks were Hfko
1.-THE enormous sum OF $12.3z1, zxSs
,,withstanding that In 1910 this
4 had already been provided for foE
amount Of sl0,s10.775.
Land. buildings and equipments
up more than @2.000.000 durttl1
igear-from 37.12o.16s to $s.37As
BY such means the total
Iyear were marked up 10 80 eu
~ compared with less than e41
900 twelve months earlier.
Unnecessary. too. to boost the TT
border TO have them square thAS
l0t liabilities. ssssy
The unfortunate stockAoa1
mot likely to get : cent. TAsEG
Ietanding ti1.le3,oee Of prefse
II e12.lS3.ooo common stock
k1erstood that tentative pr0p0G
made that creditors Arcepk
Iment on : basis of pAIt cash
securities IN thu reOr9n3roA
lbuf cArtatn hanxss e n lQ641
fuse to become st0ckh0l6~F91