New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-14


the arithmetic S applied , ,
Advertisements of the CLANCY company IN The world OF
October Il and IS and The Herald OF October OH peha "
Iaoun Motors include picture OF factory building smoke
pouring from its chnncys Three the roof proclaim TO
be the plant Of the aroun Motors Corporation Inc caPuo" "
the picture is IIarroun Factory at Wayne
This factory did not the time the National Vigilance
Committee made report here building on the property
optoncd by Hsrroun Motors Corporation somewhat similar TO
the cut run in this advertising said the report but it IS not the
the Haoun because they have no factory ana ey 90
not expect any manufacturing according to the statements Oh
their officers after the first of the and they then expect
to occupy another building -,
Undoubtedly there going be factory On January
The Tribune received from its Detroit correspondent the following
More than 200 men arc at work rushing construction OF
the IIauoun Motors Corporations factory here All OF the
concrete foundations for the first unit oil the plant are IN WIN
all the building material on the ground he 1rst building wh
be 900 feet long and will have working Hoor space OF
500 feet AS soon as the first completed the other
sections will be taken at time 1t is estimated tina!
will require time to complete the enre plant ""
will have floor space of 100000 square feet with an an
nual capacity of approximately 10000 cars per year
The factory buildings Of the Prouty & Glass Carriage
have been purchased by the arroun Corporation
and will be used assemble and uphoster bodies Inc
machinery these buildings which have hoor space oil
$4,000 feet has already been ordered and VIII be IN
stalled immediately upon arrival
According to the advertisements of the stock vende the
Harroun plant is be completed by March Waving the dis
of time it has be admitted that the physical side
there considerable evidence of good faith factory building
the company has $253 81 cash with which construc
bills and buy equipment
Moreover there in least Harroun sent
TO New York exhibition but according to Secretary
Rogers Of the company manufactured at Z64 Last Jefferson
AY.nre Detroit and he would not state that all parts
made there President Monhan claims that Mr. Ray Harroun
made the motor this aroun and that he acquired from
the Maxwell Motor Company the patents used the manufacture
Of their racing car which longer made that be true the
Harroun Motors Corporation to have good chance OF
avoiding lawsuits claiming patent arrangements
Prna face evidence of good faith there ends Now the
financial aspect
Two things are to be assumed of the financial statement
issued by the Harroun Motors Corporation of December ~
namely:
(a) That all the assets reported
(b) That they not'undervaued
The officers Of the company have refused reveal to the
public and those who have already invested its stock Just how
much of its 900 Of stock outstanding liability against
the sum of $425 TO- which all that disclosc OF assets Not
until that of information innocent investors
ko the book value shares for which they have paid at the
rate of IS or per share If all of the stock outstanding
as company liability, here is the manifest result
There arc $425 10 worth of according to the official
valuation
There are 900 900 shares of stock
you divide the shares into the assets get ava cents
share and that would the book value of the Harroun
stock that being sold to the public at So share
AS long President Monhan persists his refusal to make
statement concerning the OF stock outstand
investors know whether the entire amount what part
Of the 900 900 capital stock outstanding liability against
S4255 of If half of the capital stock outstanding that
would make the value of the shares the hands of the
investors 85c each obvious that the promoters OF this
pany do not wish adopt the words of the syndicate member
Paul A. Newman Co., and tell its whole story to the public
The National Vigilance Committee reported that the under
writers took 900 of Harroun Motors stock value
$IO at 50 per share payable 3 January l. 1917 3 April J.
1917; 9 July l. 1917 The Harroun Motors Corporation has
not that Slender the Haoun stock
holders equities are he removed from them curious
ay The vendors advertise sell stock but the buyer receives
instead ad interim certificate Statements OF this
fact have and far between the advertisements OF the
aroun Motors Corporation and its Underwriters though Looms
& Riess recently have said Stock will be delivered when
and as issued The Equitable Trust Company Of New York will
issue in your name your order nonnegotiabe interim
certificate exchanged later for stock of the arroun Motors
Corporation. Par Value $1,000.
There is an obvious for this gives
assurance the underwriters that outside their exclusive
circle can trade Haoun Motors stock 1t would naturally be
them find the stock had been issued selling
on the less than per share They would be forced to
dispose Of their holdings figure insufficient to meet the terms
If beir TO their overhead