Imperial Valley press., 1912-09-13

NEW YORK. Sept. l3.-It is learned
from inside sources that the United
States Motor company. a $42,00o,000
corporation. will be thrown into bank
ruptcy. The collapse of this project
forms one OF the worst scandals in
Wall street finance. Some of the most
influential banking houses of the
United States were behind the forma-
tion of the combination i'll 1910, and
the public were completely misled con
cerning the stability of the concern.
George w. Perkins was reputed to
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 a share, whereas today it
collapsed to only $6.25. The common
stock last year went to $42 share;
it was quoted at only / bid this after
noon.
Last fall the issue of $4,000 600 bonds
was disposed of at 90. Notwithstanding
that the condition of the company
must have been known to the insiders
Even then, however, many investors
fought shy of the offering and the un-
derwriting syndicate, headed by
I Eugene Myer, Jr, & Co, was left with
a large part of it on their hands.
As late as December last, President
Briscoe, in his annual report to stock
holders, made this statement:
Prospects for the company's bust
ness during the coming year are ex-
! ceedingly bright"
Yet, within six months, financial diff
ficulties were encountered to such a
degree that creditors We're asked TO
grant an extension of 80 days. Inc
embarrassment of the company so soon
after the issue of Sc. .0OO. 900 bonds took
/ the financial community by surprise
IL is limited that certain banking insti-
tutions scurried TO cover the moment
the treasury was put i'm possession of
cash and later refused to supply fur
ther credit.
That the United States Motor COM
pany did not deal With second rate in
stiiutions Is clearly reflected by the
personnel 81 the advisory committee
formed several months aEn = Z cnair-
man ~ this umIttee Is George w.
Dawson Of the Central Trust company
" New York City A H. Wiggin.
president u the Chase National bank \.
Charles il sabin ~ the Guarantee
Trust company. Anthony ~ Brady.
Benjamin Strong. Dr.. first vice presi-
dent of the Bankers Trust company
r. : Williams Of the Rubber Goods
Manufacturing company and Neal Ran
tOul OF F. s MOsley & Co comprise
the rest Of the committee.
Among tile prominent stockholders
are Thomas +. Ryan, Herbert L. Sat
, terlee. Harry Payne Whitney and
Richard Irwin The late John Jacob
Astor was also a shareholder. 1t is
stated that these stockholders own up
wards Of 80 per cent of the total
amount outstanding.
( The United States Motors company
/ was an amalgamation of the Maxwell
1 Brisco Motor company. Colum bia
] Motor company. Alden Sampson Man
( ufacturing company, Dayton Motor
! Car company, Courier Car company
Gray Motor company, Brush Runabout
company. Brisco Manufacturing com
pany and the Providence Engine
/ Works. The company had factories
/ located at Tarrytown, y. Y; New
/ Castle; led.; Providence, r. l.; Hart
/ ford, Conn: Detroit, Newark, n. J.
/ and Dayton, Ohio.
I 1t is declared by automobile authori
ties that the total tangible assets were
only the merest fraction of the mer
gers total apitalization-tha there
\ was gross initiation.
The company seems to have been
bled numerically. The most recent
was tn eunloading upon it of the
f. r. Thomas company, it is declared
at a very high figure This concerr
not long ago went under.
| A comparison of the company's bal
ance sheets for 1910 and 1911 suggests
fragrant manipulation Among the as
sets of 1910 was the modest item OF
| $7S.336 of deferred charges" but By
1911 this was marked up to the huge
sum of S1,706,67S. 1t included dis
count and commission on the pei
cent gold bonds.' Just how large this
commission was cannot be stated
Then the elastic item patents, con
J tracts and trade marks were lifted tc