New-York tribune., 1918-06-06
I1upp I ellis Story
Of the Genesis Of
Emerson Motors
Cost Estimates for $685. Car
Adapted Overnight From
$595 Model

V0VO AVQOGCx
Robert c. Hupp, principal witness
for the government, took the stand
yesterday at the Emerson motors trial
| before Judge Martin T. Manton, in the
United States District Court here.
In short, direct answers to the ques-
tions from Assistant United States At
torncy James w. Osborne, I'd, Mr.. Hupp
gave the court and jury his version
Of the genesis of the now bankrupt
corporation, which in 1916 announced
itself as rival to the Fovd company
and collected from the public on stock
sales an amount which the proaecu-
tion charges totalled between $780,
I 600 and S1,500,0O0.
That the notion of producing a car
to- sell at 1895 in competition with the
Ford car did not originate with him,
Mir. Hupp was unequivocal in stating
This plan, he twice declared, was
brought forward by Nichols f. Wilson,
the broker who operated under the
name of c. R. Berry & Co., and who
present action.
influence of Wilson and of Colonel
Willis George Emerson, whom Wilson
procured as backer for the project
dominated the affairs of the company
throughout the period Of its inception
S1,000,000 Stock for Promoters
The cost estimates upon which all
future advertising Of the car were
based, the witness asserted, were pre-
pared overnight in the Hotel Marlbor-
ough, being adapted from estimates of
a $685. car which he previously had
drawn up with 7. A. Campbell, the man
who later became president of the
Emerson Motors Company
The amount at which the company
decided upon, Mr.. Hupp said, by cal
culating how much capital stock would
be needed to raise the $3,00OO00 cash
which the promoters felt was neces-
sary to the consummation of their plan.
In this connection, the witness ad-
mitted that block of the stock valued
at 81 100000 was reserved for the pro-
moters.
"Was it proposed this was to be
given away?" asked Mr.. Osborne.
"For services, yes, SIR" returned the
| witness.
Mr.. Hupp also admitted the forma-
ton, at the suggestion of Willis George
Emerson, of "voting trust" to contro,
the affairs of the corporation.
The defendant Wilson, he testified.
said he would come into the scheme if
ne could have an equal interest with
the other principals" 10 per cent
each The sale of the stock to the in
vestlng public. the witness further
swore, was also intrusted to Mr.. VIII
son.
Hupp's Appearance Causes Stir
Not even the story of the $20,50O,
which early in the trial numerous Wit,
nesses declared was taken to Boston
from the Emerson Company's treasury
N N order to avert prosecution by the
Boston District Attorney, has created
such interest as did the appearance in
court yesterday Of the man around
whose reputation in the automobile
world so much Of the advertising an
peal or the Emerson stock selling cam
palgn was centred.
frank curiosity as his name was called
The defendant Wilson, who heretofore
has set at the extreme rear of the
court, moved into front seat. A little
later George Gordon Battle, chief at
! torney Tor wilson, arrived in court and
took up place in the foreground be-
side his client.
The original germ Of the Emerson
company, Mr.. Hupp said, was desire
OF ms own to build and market q S595
car At the New York Automobile
Show in 1916 he met T. A. Campbell
and talked over this matter with him.
IN seeking capital for the venture, the
witness stated, their attention was at
tracted to an advertisement of C. r.
Berry & Co. They called there and on
April a, 1915. they both talked with
Nicholas F. Wilson.
He asked US II we'd consider a s3o5
car" said Hupp, "and wanted to know
II we'd get up some estimates as to
costs-lf such car could be built for
such a price"
Hupp and Campbell said they would,
and returned to the Hotel Mariborouoh
and got the estimates ready that night.
Mr.. Campbell" explained the Wit
ness in telling how this was done.
had the costs on the Monarch car
Also he had gotten together figures on
this St96 can and these were rear
ranged for this car"
Estimated SIS Motor at $40
The following day, armed with these
estimates. which formed the basis Of
all future calculations of the company.
Campbell and Hupp went again to viii
sons ofiice and were introduced to
Colonel Emerson.
we quickly got to the point of writ
ing an agreement" Hupp testified
Mr. Emerson took charge of matters
from that time on. He dictated the
agreement, and ne was very particular
about all the details"
It was at this point that the witness
told how Mr.. Wilson interpolated his
suggestions, and how the arrangements
as to the disposnl IF stocL ,vAra .ln,ort
simultaneously effected.
:, In the estimate rs to sfhe cost of
the car which you furnished TO these