The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1913-10-11
FOUNDER KEPT (
| IN IGNORANCE
OF CONDITION
rganizer. Of Michigan Buggy
Company Tells How He Was
Deposed by Manipulators
AVS HE COULD NOT
OPEN COMPANIES MAIL
declares That He Knew Nothing
Of Finances Until Too Late
to Avert Crash

KALAMAZOO. Mich. Oct. TO-
Ppecial-Moses Henry Lane, depos
president Of the defunct Michigan
lggy company. on the witness stand
fore Referee In Bankruptcy Ban
fn. yesterday. told how. although he
ID founded the company, had been
active head for z8 years. ana own
more than onethird Of the stock
the company. he had been deposed
pm his command over its finances
ID had been kept In ignorance III
b true state Of affairs until repeated
hilking" by its manipulators had
hde 1t necessary to raise more
pney to keep the concern alive.
questioned by Attorney Sanford
Edd. Mr.. Lane told how. In 1919. he
d been voted out Of the presidency
d succeeded, by hts brother-in-law
rank b. Lay. A short time later. he
Id, Victor l. Palmer, then secretary
the company. was made IT. imam.
head and given the title OF sec.
AIy-treasurer.4 From that time on,
:. Lane said. he was kept In ign0'
nee Of the financial condition Of the
mpany and was not even permitted
open the business letters OF the
% which he himself had organised.
erAted and kept on q perfectly
und financial basis for many yeArs.
The Awakening.
He stated that he was unable to
( satisfaction when be attempted
question Palmer about the COM
ny's condition. being dismissed with
assurance that Everything was
right" and that they were doing
big business" He declared that he
a implicit faith In Palmer's ability.
d did not feel alarmed until In July,
ben he was. told that II would be
cassary to raise 100000 In order
keep the business going through
summer. He stated that he was
sured that the business depression
10 only temporary, and that the
bney would not be needed long.
hen this demand was made, he said,
wanted to learn more about condi-
ms before mortsaging his property,
L could get no satisfaction from
inner. He then went to some Of the
Ter bookkeepers for the Arm, but
10 told that they had been instructed
Mr.. Palmer to give out no infor.
ltion TO him or anyone else.
Further. Investigation showed him.
said. that the concern was indebted
arly three million dollars. To en-.
10 the company to raise money, Pal
br and the sons Of Frank b. Law
gotiated with q Mr.. Gerber, repre-
hitting the Pennsylvania Sales corpo-
hon, for the sale Of all cars owned
the company. He said that he and
senior Lay opposed this move be-
use Gerber was already Indebted to
company When the directors
betting was called, and the two old
en opposed the sale, the younger
bmbers of the board walked out OF
room and negotiated the sale at
other place.
Monroe on stand.
Btephen B. Monroe, former presi.
ht OF the Kalamazoo City Savings
nix. stated that he had attempted to
10 the concern after he learned def
tely that II was insolvent. He stat
that, q short time before learning
1t the company's Affairs were In .
4 way, he had told Victor Palmer
1t he must cut down the company's
ebtedness to the bank. Palmer ro-
ed that he would take up $4,000
nth Of the firms notes at once, and
bnroe selected paper about to ma
70. II has been learned since that
Inner negotiated loan with New
rk bank and took up the paper
h money obtained in this way.
Monroe testified that when Henry
me came to him and told him OF