New-York tribune., 1918-02-01

Total. $2,264. 4.841.39.
.lnsurance on merchandise, buildings
In addition. under date Of November 10,
1917, to the above Mr.. Hafner and George
S; Patterson. secretary and treasurer. ad-
vised verbally as follows: 81 900 900 of the
capital stock represents I per cent cumu-
lative preferred which must be retired be-
fore the 81 900, 900 of common participates
IN any common dividends; that $l,O0o,0oo
OF tho common stock has been issued for
goodwill, organization etc. that the other
million dollars of common stock has been
issued outright to II. d. Baker, president,
with the understanding that one share of
common stock is to be given free with each
share of preferred stock sold; in other
words. the preferred stock representing the
cash capital put into the business that the
company has purchased the real estate.
plant and equipment of the Niles Car and
Manufacturing Company for $225,000 and
that the stockholders in turn have agreed
to take In like amount stool, in the above
concern. the arrangements being that the
deed for the property is to be turned
as soon as S225,000 of the preferred stock
is subscribed.
"Of the ST ,oOO. 900 preferred stock they
advised that approximately S600,000 has
been subscribed to date the first issue of
the preferred stock representing S50000O
to be paid in ten equal payments and sub
iect to call that the second issue of $500
900 of preferred stock is to be in five equal
payments. 20 per cent down and 20 per
cent payable each month thereafter; that
SoS,6l0 principal Of the first issue has been
paid in in cash. Further advised that they
have a large contract with the government
for the manufacture of airplancs and are
now starting TO operate.
GENERAL INFORMATION
The plant which they take over is quite
large one, we'll equipped, and with some
little changes can be made adaptable and
suitable for their purchases. H. d. Baker
is a resident of Cleveland and for several
years was head of the purchasing depart
ment for the City of Cleveland under the
administration of Mayor Johnson. and
later represented Johnsons interests at
Lorain, Ohio.
''Mr. Engel was for q number of years
in the employ Of the Curtiss Airplane Com
pany and has a great deal of experience in
this line. Mr.. Patterson is resident of
Cleveland, and for several years has been
identified with automobile business. prn~
cipally in organization work. The active
parties connected arc men in good personal
standing and regarded capable.
THE real estate, buildings machinery
and plant. as mentioned in assets. with
the exception of approximately $4,000.
constitute the plant, real estate etc. taken
over from the Niles Car and Manufacture
ing Company.
New York 11-21-17 NIB"
Senator Frelnghuysen: "Was this
concern organized to take over this
contract 2"
Colonel Deeds: "No; it was organ
Senator Frelinghuyscn: Did you
have any conversation with the presi-
dent of the company or any one con-
nected with it before they purchased
this property regarding a contract %
Colonel Deeds: "Mr. Baker I had one
conference with, but l do not recall
the details of it. 1t was back early in
the year when told him we had not
anything for anybody who did not have
plant and equipment"
Senator Frelinghuysen: "Thcn did
you not tell him at that time that if
he would get d plant you would give
him some busnessW
Colonel Deeds: "No, he was not told
that. got this from Major Sheppler;
do not know the details, because I
have not seen the plans, and have
not had anything to do with the ne
got!ation Of this, but I have known in
a general way Of that being carried 90
that they went into this in very
thorough way, cquipping the plant"
9, Senator Weeks: "Who is Major
Sheppler?"
Colonel Deeds: "Major Shepplcr is
head of the production section of the
equipment division"
Senator Frel nghuysen: "Is he a
regular army officer?"
Colonel Deeds: mo, he was the
former production manager for the
Willys-Overland Company, and they
did equip q plant and start to make
given contract when they were able
to show that they were in a position
to do the work"
The Chairman: "Was that adycr-
tised, or was there any competition on
that contract?''
Colonel Deeds: ut is cost plus
contract"
Senator Hitchcock: "What was the
date Of your first conversation with
Mr.. H. D. Baker,"
Colonel Deeds: II cannot give the
date, but it was some time in June, |
presume"
Senator suthcrland: "Was there a
contract preceded by general under
standing that they would get it, so
that they then went ahead to buy all
those plants. make this incorporation
and issue this stock?"
Colonel Deeds: "They were given no
such assurance at ALL"
Senator Sutherland: "Thcy just went
ahead on their own account?"
Colonel Deeds: "They went ahead
on their owp responsibility entirely"
Lieutenant A.. d. Farwel (signal
corps?: They were hatly turned
down."
Colonel Deeds: "They were fatty
turned down."
Lieutenant Fsrwcll: "Yes, sir; and
they went ahead or their OWL RESPONSE
bility and equipped. entirely"
Senator Hitchoock: Did Mr.. Baker
want a contract without having any
plant?"
Colonel Deeds: Il think he was ono
of hundreds of others who came down
to find out what the policy was and
whaf Tho sitna tion n.aa md La ,,,aa