Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-05-20
DETROIT PAPER
FORECASTS BIG
AUTO COMBINE
Proposed Merger Of S222,'
100000 Worth of Prop
critics Reported

/
DETROIT, Mich. April 5.-Forecast
of a combination of automobile inter
| ests is made in a complete and detail
ed article which will appear in the
Michigan Manufacturer and Financial
, Record. .....- -.
In capital and number Of plants in
volYed the merger, If carried out as
described, will be the largest organl-
cation in the motor industry. In ad-
ditiou a forecast is made of the entry
into Detroit Of the Pennsylvania Rail-
road with complete lines to care for
the freight. ~.
Story Forecasts Merger.
The story of the merger, as related
by the financial newspaper is: Il
Conferences in New York last week
and the first part of this week COM
pleted all but minor details of mer-
ger of the interests OF these compa-
MES: =.. =-.* -. 49,
Motor Company, Maxwell Motor Com
Motto Company, Maxwell Motor Com
pany, Inc, Studebaker Corporation,
Continental Motor Company, CheVro-
let Motor Company of Michigan.
w. c. Durant will be the dominant
and commanding force in this COM
bine, which will rank him in the lead
of the men In the motor world. The
Du Pont millions and such names as
A. Barton Hepburn of the Chase Ma
ton Bank, Frederick Deiafield, l.. y.
Kaufman, Louis Wortheim, j. ]. Stor-
row and Charles Sabin will be con-
nected with the enterprise. These
names are associated with Standard
Oil, Morgan, Guggenheim and Lee
Higginson & Co. s.~. ~ I'll.
Capitalized For 22,ooo, 900. ...
Capitalization of the automobile
manufacturing companies alone totals
| S222, 000, 900 authorized, Of which $139,-
543, 222 Is outstanding.
Vehement denial Of the facts In this
forecast are expected, but the 1nfor-
nation has come from unimpeachable
sources and has been easily dedueable
from incidents which have occtfred
/ recently. H.. .....*..
The same denials prefaced the pur-
chase of control in the General Mo-
tors, which controls or is interested
! in Cadillac, Olds, Buick, Oakland,
| Champion Ignition, General Motors
truck and a dozen nonactive concerns,
! by the Chevrolet Company, of which
Durant is active leader. But President
| Nash of the General Motors Is expect
ed to retire at the next meeting.
Walter z. Flanders, controller and
president of Maxwell, Is a construc-
ZIONIST; whose interest in proposition
/ ii waning when IL has arrived.
( Hence Ii was not difficult for Durant's
associates to gather in control Of this
/ concern
Seek studebaker Stock,
The Studebaker concern has a large
j prestige and Is second only to General
i Motors in earning capacity But the
drive on its stock showed Du Pont
! money seeking it, and If the price
basis for purchase of this gold mine
of manufacture hasn't been reached,
| it will be soon.
The Continental Motors Company
! is the dominant factor in the manu-
facture of automobile engines. No
lone. therefore, noticed the Chevrolet
Motor Company of Michigan when it
appeared recently. -. -.
It's purpose was seen when ii was
allowed to become known that the
new combine was back of 1t, and the
Continental crowd saw better fortunes
with than in fighting the syndicate.
| Its recent uncalled for bond issue OF
100000 was the signal for small
holders to get out of the way for the
new owners. President Tobin and
Vice President Judson were in New
York last week. :+1 :. =. =..as.. i.
Railway Exercises Option.
The Pennsylvania Railroad obtained
chance to buy fourth interest in
the outer railroad belt of Detroit, and
now has exercised an option on the
Peninsular Stove Works plant
Behind the Pennsylvania is lined UP
number of industries which are ex-
pected to bring to Detroit opportuni-
ties for $4,000 workmel. -. ..: