New-York tribune., 1918-05-24

] will have to do any more of this
that is, buy back any more stock-but
this came in before had my alibi.'
"Mr. Matches also on that day in
formed Mr.. Mahoney that he had dis
covered a new way or new method of
stopping the prosecution, and that was
to find personal friend of the District
Attorney and hold before him $4,000
on string, and at the proper moment
cut the string.
"There was no prosecution in Bos-
ton; that money never returned to the
treasury of the Emerson Motors Com
pany, and on October 6 the District
Attorney announced that there would
be no prosecution of the Emerson Mo-
tors Company in Boston"
CLANCY and Loomis were attached to
the Wilson system, the prosecution al
leges, in the same capacity as was
Matches, and Mr.. Osborne told of their
financial arrangements. He asserted
that Wilson was at no time really
liable for the stock. but simply took
it as it was subscribed for. giving,
when the price to the public was So,
81 to the Emerson Motors Company,
permitting the stock broker to retain
sale of each share into his own pocket
Stock Prices Jumped
Backed by tireless and extravagant
publcity-in respect to- which several
subordinates formerly in Wilson's en-
ploy testified yesterday--this stock
jumped to $3.50, to So, to 81, finally to
the company rented small place on
Thirty eighth Street and turned out a
sample car by the simple process of
injecting bodily a Ford engine, with
Identification marks removed, into a
new body.
Meanwhile, the prosecutor said, for
publicity purposes, cuts were being
sent broadcast of "our thoroughly mod
ern plant at Long Island City" Like
wise for publicity purposes, an artist
named Stacy H. WOODS, who also testi-
fed yesterday, made drawing of the
Emerson car" with no other aid than
ardent advice from Mr.. Campbell.
On April 20 the company was finally
incorporated in Delaware. On May
Theodore Campbell was elected presi-
dent and Robert c. Hupp ,vice-presi-
dent, at salaries of $500 each-whicr
amount, it was agreed, was to be in
creased to $4,000 after January /.
On July 5 the sale Of 100000 more
shares of the stock was authorized, ane
it was this issue that touched the $s
price. Altogether, Mr.. Osborne de-
clared more than 100000 shares of the
common stock were disposed Of, fol
which the public paid more thar
$1,2OO,00O. Of this it is alleged that
! S850,000 went to pay for advertising
and the various stock selling activities
while $352,000 went directly to those
engaged in making the sales.
Meanwhile the Comnanv did turn
out nine more automobiles-again,
disguised Fords, is the charge-and
$4,000 shares of the preferred stock
were put on the market at $40, carry
ing per cent dividend. But, Mr..
Osborne added, although an engineer
named Hamilton had at length been
brought on from the West to design a
car (Hupp, despite his reputation, not
being qualified engineer), altogether
up to June, 1917, less than 800 cars
were turned out at the Emerson Com
pany's Kingston factory, although all
profit estimates used in the advertis-
ing matter were avowedly based on a
calculation of 100000 cars a year out
put.
Mr.. Osborne spent the better part
of the afternoon session in reading tc
the jury specimens of the literature o.
the Emerson Company and of c. r
Berry & Co., Mr.. Wilson's concern.
Tomorrow Mr.. Mahoney, of Boston
is to be called by the government.