The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-06-15
$25O,OO0,000 AUTO
MERGER ABANDONED
"ComplicatiOns" Given as the
Cause, Although Bankers
Were Opposed to Plan.
HINT OF A NEW COMBINE

announcement was made yesterday
that the plans for the organization OF a
new $3.50 900. 900 motor car company. In ,,
which would be merged the willys-Over-
land Company. Chalmers Motor Com
pany, Hudson Motor Company and
Auto-Lite Company, have fallen through
and that the project has been abandoned.
In conservative circles In the financial
district the news was received as an
agreeable surprise. as there has been
considerable criticism Of the proposed
merger In that an underwriting syndi-
cate had been formed and that the price
at which the stock was to be issued TO
the public had been tentatively decided
and subscriptions solicited before an
authoritative statement about the con-
Germ had been made. While the most
satisfactory reason for the abandonmeh
OF the plan advanced by the interests
considering IT was complications" II
was generally accepted In Wall street
that banking opposition proved the real
stumbling block.
In some circles men who were In the
financial district many years ago DIRE"
attention to the fact that 10 a certain cx-
tent the proposed company recalled the
famous blind poor Of the early sos.
Men subscribed to that pool without
knowing what they were buying
John n. WHY'S. who had been a
prime mover In the negotiations along
with the Durant-Kaufman interests. is
eued the following statement yesterday {:
because OF complications the pro-
posed motor consolidation has been
abandoned. Therefore the Willys-oyer-
land Company. the Hudson Motor Car
Company. the Chalmers Motor Car Conn
pany and the Auto-Lite Company will
continue to operate independently"
The following statement was added
later:
THE application fer participation in
the underwriting was very largely In
excess of the amount of stock which II
was proposed 10 syndicate. which
amount was fully covered by advance
subscriptions after allowing for stock
Withdrawn for sale"
Mr.. WHY'S said also that he was
ready TO go into the new company, bu;
only on a cash basis. and that he did
not want stock In exchange for his hold.
ings in the WHY'S Overland.
In wei Informed quarters II was said
that the announcement OF the proposed
4, merger was entirely too premature. while
In others Il was said that the tim,
chosen was not propit.ous. II is un'
ders,ood that the decision to abandon
the Notation OF the new company, WhiCi
In conservative circles was CONSIDERED
as too heavily capitalized. WAS reache,
on Tuesday evening at a meeting OF th'
Interests promoting IL. Those who wer,
In a position 10 know said that lega
difficulties IN addition to financial din
culties We're discussed and that amoni
these the clayton law was predominant,
a member Of the syndicate said YES
terday: THE legal difficulties wer,
not insurmountable. hut it was decide
that the formation OF the new Compan,
should not continue" He added tina
the plan was abandoned more becaus
of IN excess of caution on the par
Of those concerned than for any othe
reason.
When the WHY'S announcement wa
made public there was a severe brea'
in Willys-oNcrland stock on the Stoc
Exchange at the opening. The stoc
closed the preceding day at sos, opene
yesterday at 279 and later sold AS 10,
as .11, closing at 2SSi.. the high 10
. the day, on the curb Chevrolet opene
ot 239, went as low as $50 and close
at go.
The merger. IL concluded. would hay
brought together John y. Willys an
w. {. DIrant. two dominant figures
the automobile world, and those intel
ests would have controlled the outp,
or approximately 10000 automobiles
year. which is more than one-third
the number turned out in this countr
II was intimated by interests in clio,
touch with those who took part In u
abandoned plan that before long 9th,
automobile interests may combine.