New-York tribune., 1918-06-04
Six Testify at Trial Their
Advice Never Was
Sought
c. A. Towne on Stand
His Name Used Before He Ac-
cepted Place, He
Declares

A. Towne and of former Governor Fen
nlmore Chattcrton of Wyoming feat
ured the seventh day of the Emerson
Motors case trial before Judge Martin
I. Manton in The United States District
Court yesterday.
Both these witnesses, together with
numerous others who were summoned
from far points, served on the so
called advisory board Of directors" of
the Emerson company during the palmi-
est days of that concern.
Without exception, though, according
to the testimony of all of them ycster-
day, their incumbcncy entailed no ac-
tive work Their "advice" was never
sought by the promoters of the Emer-
son scheme. Their names had been
used for advertising purposes. Their
boards never assembled in even a semi
official capacity.
my name was used as an advisory
director, understand" declared ex-
Senator Towne, "beforc was aware Of
my election to such an Office"
Never Questioned Good Faith
L.
Towne was asked if it was not a fact
that he had never questioned the good
faith Of the Emerson interests.
NO. he responded, II never ques-
toned their good faith, but did ques-
tion their judgment in certain partic-
ulars."
Assistant United States Attorney
James w. Osborne, I'd. then brought
cut the fact that when Mr.. Towne had
permitted his name to be used in con-
nection with the Emerson Four prof ject
he had been ignorant of the pre-organ-
lzatlon stock arrangements of the pro-
moters, and had supposed that the COM
pany's payment of 5000 900 worth of
shares to r. c. Hupp had been for
patents, instead Of, as has been fire.
quently sworn to, merely for "plans,
drawings and Designs"
Mr.. Townc also stated, in common
with the six other "advisory directors1
who testified yesterday, that he had al
lowed the use OF his name only at the
earnest solicitation of Colonel Willis
George Emerson, who is now in the
Southwest, victim of paralysis.
Colonel Emerson in the past has
done lot for the development of the
State of Wyoming,' testified ex-Gov-
ernor Chatterton, particularly in
lHdhlllS hHo"li ltS great resources TO
the people of the East" He added,
as did the other six, that he still has
the highest regard for Colonel Emer-
son personally, but, with all the others,
was forced to admit that he knew
practically nothing of the specific pro-
ject to which Colonel Emerson in this
case induced him to lend his name.
Rebuked by Court
The one "advisory director" who at
tempted any defence of the Emerson
motor car itself, JAMES M. Rumsey, Of
Wyoming, drew a sharp rebuke from
the court after series Of questions
from Judge Manton had disclosed the
about the motor he was willing to
recommend to prospective buyers.
After the parade of "advisory di-
rectors," Mr. Osborne read into the
record the glowing letter through
which Colonel Emerson had persuaded
them to appear as sponsors for the
Emerson scheme, showing at the same
time that each had been promised in
return a block of 200 shares of Emer-
son stock, although it developed that
the latter had never been delivered.
the defendant brokers, O.. E. CLANCY &.
Co. and C. r. Berry & Co., both of
whom dealt extensively in Emerson
stock, were introduced into the case
yesterday after having been duly iden-
titled by former employees of these
houses. A good deal of stress was laid
by the government upon the extensive
advertising campaign the Emerson
Motors Company was waging at this
time.
In this connection, Arthur E. Sproul,
a former employe Of Doremus & Co.,
identified full page Emerson adver-
tisement which he said he understood
was prepared by a former advertising
manager of "The New York Herald"
This Frank C. Gouldng, secretary Of
Doremus & Co., later testified had been
run within sixteen-day period in a
list of between 60 and 100 papers, the
names of which he read.
For placing this advertisement for
the Emerson Motors Company, Mr..
Goulding added, his firm had charged
6,162.27.