New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-02
Six Indicted for Fraud
In Two Tractor Concerns
All but One Awaiting Trial on Previous In
dictments That One Has Served Sentence;
Ford Name Used to Lure Investors

pany Of South Dakota, the Ford
Tractor Company, Inc, Robert P
Matches & Co., Inc, and the Emerson
Truck and Tractor Company, Inc.
All tho defendants, individual and
corporate, are charged with using the
mails in the execution of scheme to
defraud and with conspiracy so 70 do
The counts in the two blanket indict.
ments total seventeen against the Ford
Tractor Company and the individual
named and thirteen against the Elmer
son Truck and Tractor Company AND
its officers. Each count carries severe
maximum Tenalty Of fine and imprison-
ment upon conviction.
Wilson Released on Bail
Wilson was arraigned yesterday in the
Federal Building before Judge Harlanc
B. Howe. He pleaded not guilty to
each indictment and was released un'
der $4,000 bail on each. The other de
PENDANTS are expected 10 appear in
court to-day.
James W. Osborne, I'd, Assistant Unit
ed States District Attorney, who has
handled many of the difficult mail fraud
cases and who directed the investiga'
ton of the two Emerson companies and
the Ford Tractor Company, represented
the government.
The first Ford Tractor Company, in
corporated in South Dakota, made it'
initial bow in March, 1915. Just prior
to that time wide publicity had beer
given TO an announcement that Henry
Ford, of Detroit, was working on plans
for a low-priced farm tractor. Ewine
had been selling stock for the company
manufacturing the Lion tractor. HI
turned from that, according 70 the gov
eminent, TO selling stock on his owl
behalf His first step was to employ Z
man named Kinkaid to design a tractor
Incorporated New Company
They put together a tractor which
Kinkaid said he was ashamed OF, bu
Ewing nevertheless incorporated tn,
South Dakota company. Its authorized
capital was s750,000. A receiver wa!
appointed for this company in October
1916.
Meanwhile Ewing, Matches and vii
son had been corresponding, and as &
result the second Ford Tractor Com
pany was incorporated in Delaware, ir
November, 1916. Its 100000 author
ICED capital was increased soon afts
ward TO Sl0,000,000, consisting Of 900,
900 shares of common and 100000
shares of preferred stock, of n par val.
ue of $40 each. One of the rst steps
was to vote 10 Ewing the common stock
and 1000 shares Of preferred and to
promise him $4,000 in cash. In con.
sideration he gave the old company's
patents, 10 which, at best, he had a
questionable title, in that its property
was in the receivers hands.
$4,000 Shares Sold
On false representations about 80. 00t
shares were sold to more than 3.0OC
persons at prices ranging from 50 t
s.. The company had received abou
100000, of which more than $4,000
went TO pay debts of the old Soutl
Dakota corporation, the government de
clares. Up TO April I, it is cited, Will
son and Matches had divided equal,
between them about $4,000.
The Emerson Truck and Tractor
Company is an offshoot of the Emerson
Motors Company. Il has no assets, tn,
government alleges, but a stock bool
and a minute book In September, 1916
it issued its 100000 shares of common
stock, of q par value Of $40 each. L
the Emerson Motors Company. the con
sideration being permission to use tn,
motor company's plans and to purchas,
materials through il. The motors com
pany then made contract with vii
son, under which he was 10 sell 237, O0C
shares Of the truck and tractor stool
to net the company S208,000. Wilson
the government declares, sold abou
share to about $500 persons. He paic
the company $4,000, Of which 10000
was given back to him under the term.
Of the contract.