New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-05
Corporation Exposed by The
Tribune Included with ;
Others in Indictment
$1,620,0O0 Paid
In by Investors
Bankruptcy Petition Filed by
Stockholders and a Re
ceiver Is Appointed

The long arm of the United States
criminal law moved yesterday TO end
for all time the stock jobbing schemes
of the Emerson Motors Company pro-
motors, exposed by The Tribune on
November IL, 1916.
The Federal Grand Jury returned in
dictments against the Emerson Com
pany and fourteen individuals alleged
to have made easy the way by which
investor" parted with their savings
for Emerson stock. Three other cor
porations, which have had business con-
nections with the Emerson Company,
also were indicted.
A few hours earlier an involuntary
petition in bankruptcy was filed against
the Emerson Company by three of its
stockholders. John B. Johnston, of No.
81 Nassau Street, was appointed re
ceiver for the company by Judge Man
ton.
The defendants in the criminal
case arc charged with using the mails
in the execution of a scheme to de-
fraud and with conspiracy to so use
the mails. The blanket indictment con-
tains thirteen counts, on twelve OF
which the maximum penalty, upon con-
viction, is five years imprisonment and
a 81 900 fine on each count. Convic-
ton on the other count carries a maxi
mum penalty of two years, with a fine
of $4,000.
James w. Osborne, I'd, Assistant
United States District Attorney, who
has directed the two months investga-
ton of Emerson offairs by Post Office
Inspectors Noille and Williamson, sp-
peared for the government yesterday,
when four OF the defendants pleaded
not guilty before Federal Judge Mayer.
Aided by Tribune Inquiry
At the close of the court proceedings
Mr.. Osborne declared that The Trib-
une's exposure of Emerson Motors had
been of immense value TO the Federal
authorities in their work on the case
One of the governments many allega-
tons of misrepresentation is that the
defendants declared The Tribune's
article of November 12 to be "malici-
Gus, unjust, misleading and untrue.
These adjectiyes were contained in a
published answer to The Tribune. en-
titled: "The Truth" "The defendants
declared further the indictment CON
tinues, "that large interests had been
at work trying to prevent the defendant
corporation from making success and
had inspired newspaper criticism, and
that it amounted 20 a gigantic con-
spiracy, backed by the financial in
terests, TO destroy public confidence in
a meritorious. legitimate and honestly
conducted enterprise"
The individuals indicted are:
Nichols T. Wilson, who, operating
under the name Of {. r. Berry 4 Co.,
Inc. engineered the sale of Emerson
stock to the public. He was once en-
ployed. the government alleges. by the
got-rich quick, stockseling firm of
Burr Brothers, Inc, broken up by the
Federal authorities IN 1910, when its
leading members were sent TO prison
on charges of using the mails TO de-
fraud. In December, 1913, Wilson was
indicted BY a Federal grand jury in Los
Angeles for alleged use of the mails TO
defraud in selling stock of an oil com
pany. The trial Of this indictment has
| been set for June Ii.
". e.. Emerson Among Those Indicted
Willis George Emerson. chairman
i Of the board of directors of the Emer-
son Motors Company. Emerson has been
selling stock OF various companies for
/ fifteen years in New York and the
West.
3.-Theodore A. Campbell. president
Of the Emerson Motors Company and
formerly an officer Of the Imperial Au-
tomobile Company, which once did
business at Jackson, Miss. The affairs
of the latter company wound up in the
hands Of committee of creditors.
Robert c. HLpp, who sold out to
Wilson and Emerson last September
receiving s32, 500 for the $4,000 shares
of Emerson common stock he held. This
price. put upon y G stock by the pro
. motcrs in their inner councils, was less
than one-twelfth the price at which the
same stock was being offered 10 the
nublic AT the time. by what The Trib-
une called in it's exposure "self-styled
investment brokers"
Hupp was president and chief
engineer" of the Emerson company
tbouph evidence shows that Hupp has
never qualified as an engineer in any
sense Of the word. He was formerly
connected with the r. {. II. Company
which once did automobile manufactur-
ING in Detroit The company went into
bankruptcy, stockholders losing their
cntire investment Hupp was connected
, consequently with the Monarch Motor
CAV Company, which also did business
IL Detroit. This company filed volun-
tary netition in bankruptcy in April
1916.
5.-George n. Campbell. son OF Theo,
dore A. Campbell and secretary and
treasurer Of the Emerson company.
George B. Clifford. an "advisory
di,ector" of the Emerson company and
fo.mer general manager OF the Bag
onne works OF the Standard oil Com
-, Tbc Government alleges that