New-York tribune., 1918-06-13
Lure of Emerson
Stock Ads Shown
BY Prosecution
Glowing Promises Made
When Plant Occupied One
Floor With 2 Worknen
Fiscal Fertility Aired
Boston Agent Took Back II, 900
Shares Before Receiving
"His Alibi"

The Emerson model, completed, ia
beng daily driven on the streets OF
New York"
The Emerson Motors Company is q
success-~a tremendous success
The new Emerson Four is the SEN
sation of the automobile world"
AN unsurpassed car"
he talk Of the automobile world u
hese are few of the e{fervescent
quotations which Assistant United
States Attorney James w. Osborne. I'd
cited yesterday in tho Federal District
oouS here to show the Emerson inter
ests were striving to stimulate rur-
chascs of the Emerson Motors stock at
the same time that the manufacturing
equipment Of the corporation consisted
OF single i1oor plant" at Long Island
CITY and Il complement Of seven work
men.
Later in the day Mr.. Osborne brought
lor'h 1resh revelations as TO the firms
l1saal fertility. particularly as it ap-
| pilea TO the taking over of $4,000 00O
Worth Of the stock of the "Emcrso on
Truck d Tractor Company" 4 con
Germ that suddenly mushroomcd into
existence to take advantage of the
vast held open to cheap farm motors. ;
MI. Osborne also sharply revived
memory of the $4,000 which it has
been shown travelled to Boston in the
Emerson company's behalf when he
produced a letter written by Robert P.
Matches, chief Boston agent for the
! emerson stock, the day after this
money money arrived in Boston, in which
| Matches, explaining the return of H.
600 shares from a disgruntled investor
stated he had to accept this return be,
| 'alibi.'" ''0 NY
FOR the. most part, though, yester-
days session of the Emerson trial he.
fore Judge Martin T. Manton was a
strictly advertising affair. In the last
analysis, the prosecution is free in ad-
mlt'ing, 1T is the character of this ad-
vertlsing which is relied upon to clinch
the governments case against the sew
eral defendants, and during both norm.
ing and afternoon periods Mr.. Oshorn a
read voluminously from specimens Of it,
Referring to both common and pre-
1erred stock. the appeals to investors
Whlch were placed on the record yester-
oay were sent out, not only by the En-
erson company itself, it was shown. but
by Matches, in Boston, and by Wilson
or Z; Il. Berry & Co., in this city. AS
the long session, which ran into the
| evening, was drawing to a close, Wal
ter II. cunningham, an advertising man
formerly employed by Wilson, told how
ne had prepared many of the originals
IN the office of c. R. Berry & Co.. re-
ferring them to Wilson and some other
ohclai OF the company for revision be-
lore they were signed, either by Willis
George.Emers or T. A. Campbell and
SO sent forth to the public.
Hait-statements were almost never
permitted in these pleas, whether they
TOOK the form of newspaper advertise
ments, circulars or market letters
1 Mhen upon one occasion Henry B
Humphrey tried in his preparation OF
copy to bring things little more down
to earth he received telegram Of re.
proof from Mr.. Emerson.
"A Peoples Car To Be Made bv 8
Peoples Company" Mr.. Humphree
had headed his advertisement M
Emerson's wire ordered deletion of the
Ito be-" making the caption read "A
feople's Car Made by Peoples Com.
pany." Mr.. Emerson added the com.
ment that Mr.. Humphreys more quiet.
week had been dismal failure"
Some Of the most lurid of all the
quotations read by Mr.. Osborne were
CONTAINED in matter mailed from the
offices of Robert P. Matches. at 6f
Devonshire Street, Boston. and duly
Identified yesterday by Howard F. SAT-
1ord, former bookkeeper and cashier TO,
1--WE stake our reputation on thi.
stock,' was one of Matches's favorit,
PHRASES, Again and again he assured
left" and "unhesitatingly advised
them to purchase before the golde,
opportunity passed altogether. Refer
ences to the "successful autom obil,
men" sponsoring the Emerson schem,
and to an output of 400 cars day
were frequent in his literature. H
declared the company is manage,
very carefully and along extremel,
economical lines," and added that "w
were very careful to 60 into all tn
details Of this company before Wi
underwrote all the stock"
According to his ex-cashier, tn
shares Mr.. Matches was disposing O
as a result of these advertisement
at IS, $6 and 81 he obtained from c
X. Berry & Co. at $3.50 to 81 q share
respectively. On his entire transac
tions in Emerson stock during tn
summer of 1915, the witness said, MI
Matches, who was not member o
any stock exchange. made 20 per cen
net.
Another Boston witness was Georg
R. Simpson. who testified to having
bought sixteen shares Of Emerson pre-
ferred at $40, besides a considerabl
quantity of the common stock. whicl
. he got chiefly from Matches. MI
Simpson was an old friend of Georg
B. Clifford, one of the Emerson direc
tors now under indictment, and h
identified many letters that had passe
between himself and Clifford.
The session ended with Georg
Kuntzman, an accountant for tn
Emerson concern, listed also as a di
rector in the Emerson Truck an
Tractor Company, protesting tha
he really knew nothing of the affair
of the latter corporation, whose STOCK
apparently, the Emerson interest
were making ready to float via Wilson
The trial will continue to-day, be
ginning at 9:45.
VIZ NE