New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-06-06
WiIIys Overland, Chal-
mers, Hudson and Auto
Lite Co.'S in Deal.
FISK RUBBER co.
is NOW SOUGHT
Motor Products Corporation Of
Five Concerns Announces
Syndicate Allotments.

Louis G.. Kaufman. who is taking the
lead in the financing of the new me ger
Of automobile companies, OF which the
Willys-Overland Company will form
the nucleus. announced yesterday that
the CORPORATION would have a capital
ization OF s73,o00,000 preferred stock
and 2.5OO,O00 shares OF common o. no
mar value. Negotiations are still being
conducted for the acquisition OF the
Fisk Rubber Company by the interests
behind the combination.
A syndicate has been formed to un-
derwrite the offering of the common
shares headed by William Solomon q
Co. The other members are jobs ~.
WHY'S and his associates, who have
agreed to take one-fourth of the issue :;
J. S. Bache & Co., W. W. Laird, OF
Wilmington, Del, and Dominica (
Dominick. According to present plans
the Junior issue of stock will be offered
to the public at price in the neigh
borhood of $50 a share.
The preferred stock will all be taken
bv the manufacturers in the combine
and none will be offered for subscrip-
ton. 1t is believed that later the ex-
change Of stock in the Willys-Overland
Company, in addition TO the holdings OF
President WHY'S, will be made for
stock in the new company. When this
is done the ratio of to l between
Willys-Overland preferred and common
will obtain. Beginning January | next
the present $4,000 900 issue Of pre-
ferred is exchangeable into common at
$500 share, and on April | is callable
at 10.
Mr.. WHY'S is understood to own
about $4,000 900 of the S2l 100000
WHY'S Overland common stock in I'D IL
ton to substantial holdings o. the pre-
ferred. He also owns the Auto-Lite
Company, which is also going into the
new combine. The other constituent
concerns are the Chalmers and Hudson
motor companies. The underlying COM
panes. unless present plans arc
changed. will continue to be operated
by the same men as heretofore, with :.
board of directors Of the parent com
pany made up OF representatives II
the operating concerns.
No name has yet been agreed upon
fer the merger, but the one most COM
monty reported in financial circles yes
terday was the American Motors Cor
rCration.
Syndicate allotments Of the Motor
Products Corporation, a consolidation
of five automobile equipment manu-
featuring companies at Detroit and
Ann Arbor. Mich, were announced
yesterday. the underwriters receiving
about 20 per cent of their subscrip-
tons.
Seventy thousand shares Of stock,
no par value, are being issued. J. s.
Bache & Co. are the syndicate man
ayers. Stock allotments are expected
20 be made tomorrow. IL was reported
mat subscriptions for the stock
were about three times the available
supply.
The companies included in the Motor
Products Corporation are the Rands
Manufacturing Company, OF Detroit;
the Diamond Manufacturing Company,
of Detroit and Walkerville, Canada;
the Superior Manufacturing Company,
OF Ann Arbor; the Vanguard Manu-
featuring Company. of Detroit, and the
Universal Metal Company, of Detroit.
The new company has a total CAPT.
tolization of 100000 shares. The stock
is divided into two classes, 5000
shares of class B, having full voting
rover, and the remainder, class A.
with no voting power II is provided
That if the company fails to earn S.
a share a year for two consecutive
years both classes of stock shall have
full voting power.
The subscription price for the stock
was S74 a share. The companies in
the combination OF auto accessories
arc manufacturers OF wind shields,
tops. cowls and hub caps.