New-York tribune., 1918-06-05
Emerson Stock 'Ad'
Pictured Factory
Shown To Be Myth
Herald" Manager Testihes
Artist on That Newspaper
Furnished Design
Tells Of Deals for Site
Rroker Testihes Negotiations
for Location Fell Through
Two Months Later

In the midst of full-page adver-
,isemert in The New York Herald
along wish much bold-face capitaliza-
ton and he information that "To-D Day
Is Your Opportunity to Buy Emerson
Motors stock at $40 a Share" there ap-
reared the picture Of a large, airy and
Altogether imposing concrete and glass
factory building. The caption for the
p;cture was; This Is Our New S25o.OOO
Factory
That was in August, 1916. Yesterday
stthe continuance of the Emerson trial
before Judge Martin 7. Manton in the
United States District Court here wit
nesses for The government swore that
not only had no dehnite contracts for
any such structure been signed at this
tine, but that there were not even
any special designs for it in exist
ence.
In telling the story of how the ad-
vsrtisement got into the paper, Kendall
B. Cressey, general manager of "The
Herald,' testified ne had gone to the
Offices Of the Emerson Motors Com
pany. in the Marbridge Building, and
held conference on the subject with
: Colonel ". G. Emerson, T. A. Campbell.
president OF the Emerson concern; a
broker named Flaunlacher and Arthur
Z. Sproul the former employe of Dore-
mus Co., who testified the day before
at the trial.
Tells About Factory Picture
Here, Mr.. Cressey said, he was in
formed the Emerson company had Just
completed arrangements for a factory
site at Long Island City Because Of
this, they told him, they were particu-
larry anxious to have a big display ad-
yertisement in the following SUNDAYS
paper.
Mr.. Cressey admitted no contract for
such factory had been shown him. but
said he had seen much cores pondence
bearing on the subject. Later Assist
ant United States Attorney James W.
Osborne, I'd. introduced this corre-
spondence in evidence on behalf of the
government.
The matter of the drawing, "The
Herald's' general manager testified. had
been extensively discussed. Mr.. Flaun-
laeher, he said, had showed him book
Of many factory drawings. assuring
him the "new home Of the Emerson
Four" was to be similar to the exam
PIES contained therein. No specific
drawing of the proposed Emerson
building beng in existence, however.
1t was finally decided to have Her
aid" artist make one. This a Herald.
artist forthwith did, and it was pub
hshed with the caption proclaiming it
, as the new s250,OOO factory"
Why was IT," asked Charles E. Le-
Barber of the defending counsel, "that
your great paper Mr. Cressey, pub
hshed picture of something that was
not IN existence as if it were some
thing that was in existence ?"
, Il don't think it did" returned the
witness. Il don't think it said it was
IN existence" And he added that his
memory was that the advertisement
mad distinctly announced the factory
was still TO be erected.
Negotiations for a Site
Examination proved this to be cor
rect. although this announcement was
not made In the same huge type that
sald the drawing represented the "new
!sctory In the same connection,
!lrhermore, the advertising copy de-
.iared That this pictured editice was but
lne mist of ten similar units" to be
erected ~ the Emerson comapny, each
with capacity Of 100 cars a day
Lxpiaining just what there had been
Dehlnd this representation to the in
'esnng public. Lewis w. Flaunlacher
the broker who acted in the negotia-
aohs between the Emerson people and
me Goodrich-Lockhart Company, from
Wnom the site for this proposed struct-
,ure was to be leased-later said that a
ease had been offered to the Emerson
concern, calling for a rental of $4,000
sr?y year, with an option ultimately to
puy, at price of S250,000.
The Emerson people had at first ex-
pressed themselves as ready to accent
'hese terms. Then. he said, they sup-
Eested organizing what amounted to a
n1rOiding company to be known as the
Myoming Real Estate Company, which
onould execute mortgage for $780,
r puo on the property, and relieve the
emerson firm of the obligation of car
lying the lease debt 'on its books.
ms offer the Lockhart interests re-
Jected
Al first expressing themselves as
s'!Nhg to Weld on this roint, the wit
ness continued, the Emerson people
anaily, when the time for signing
.on'facts arrived, declared the track
rw;.tohlng regulations at Long Island
WY WY made the site unsuitable for their
purposes, and so called the entire
transaction off, before a single dollar
ssd changed hands. That was early
October, 1915.
u, uld you know" asked Mr.. Osborne,
r.na' IN the month of September the
emerson people were already conduct
sss s negotiations IN respect to the prop
Nv tney later acquired at Kingston,
did not said Mr. Flaunlacher.
shown Orders for $4,000 Cars
When, in regard to the ADVERTISE
Isht sS.htt itself. Mr.. Cressey. of "The Her
~; was asked on cross examination
s.,e ne had made no investigation be-
s,e sos accepting the copy Of the Emer-
y;s;,. yHa company, he said he had once
,e,ned .n'ed the Long Island plant they did
ss;,saaiiy nave in operation. Here he
sa.a ne saw some frames Of cars and
s. si., or three workmen doing "some
sh' wora." At the Offices of the
>SMpany in New York, however, he
~ fe that he was shown what pur-
iM ss!Ied to be" orders for between $4,000
saq 10000 cars.
ne portions Of the full-page adver.
bssment which MIR. Cressey admitted
bsssssng added himself after the copy
,sS oeen brought to him by Mr.. Sproul
.s". nu which included Robert c. Hupp's
.ts'ement that "J rar posifiye1v hui1r