New-York tribune., 1918-05-24
Says Emerson
Cash WasSpent
In Bribe Effort
Osborne Outlines Case
Against Motors Co. Before
Federal Jury

Use of $20,5o0 of the funds of the
Emerson Motors Company, Inc. for the
purpose of bribing Joseph c. Pelletier,
District Attorney of Suffolk County
tBoston), Mass.-this was the opening
accusation yesterday of Assistant
United States Attorney James w. Os-
borne, I'd, at the trial of the fourteen
men indicted in connection with the
activities of this defunct organization
in the United States District Court.
Judge Martin 7. Manton presided.
AS the prosecutor made his accusa-
tion a perceptible start communicated
itself to the group of intently listening
defendants, clustered with their attor-
neys within the rail.
The charge upon which these men
who are alleged to have dangled before
the public one Of the most enticing
get-rich-quick schemes in the modern
decalogue have been brought to trial
is that of having conspired to use the
mails with intent to defraud, and 50
they were prepared for the production
Of the long list of flamboyant circulars
heralding the scheme which Mr.. Os-
borne later spread before the jury.
They were prepared fer annotated list
ings of stock transactions and transfers
and values he brought FORTH. for rshe
statistics on factories which he de-
clared had existed chiefly in the con
versation and prospectuses of the pro-
moters Of the Emerson Motors Com
pany, Inc. But here was something
sudden. unexpected, startling.
When the trial began the courtroom
was already fairly we'll filled with pro-
spective witnesses and interested-pe
cullarly interested. many of them
spectators. The proceedings, which
had been put over from the day pre-
ceding on account OF the non-abpear-
ance of Osborne E. CLANCY, a stock
broker, who is one of the defendants,
started promptly at 10 O'Clock.
Mr.. Osborne Opens His Case
This time CLANCY was on hand
promptly. The jury had been tenta-
lively selected the day before. Its ac-
ceptance by the various counsel was a
mere matter of routine, and, with scant
delay. for formalities, Mr.. Osborne
launched at once into his opening
against the men who, he declared, be-
ginning in April, 1916, and continuine
until the time of their Indictment by
the Federal authorities in June of the
year following, had, by newspaper ad
vertising, pamphlet and personal let
ters, stormed the country with appeals
to buy stock in motor company whose
product was billed to "rival Ford'-
and who in the process, the prosecu-
tion asserted, had collected from credu-
ious investors sums in the neighbor-
hood of $1,500,000.
In outlining the governments case
Mr.. Osborne followed, almost word for
word, figure for figure. the original ex-
pose of the Emerson Motors Company
transactions and tactics, which was
published by The Tribune on October
II, 1916, when the Emerson stock SELL
ing campaign was tight-roping to its
dizziest heights.
"We shall PROVE" declared Mr.. Os
borne, chat some of these defendants
offered stock for sale in, the Emerson
had even been incorporated. We Shall
prove that while they were represent
ing to the public that hundreds OF
thousands Of orders for cars were
pouring in upon them, their onl,
equipment for producing cars con
sisted of part of a building that hac
been leased at Long Island City and
a small factory at Kingston, NJ Y, al
which not more than 800 cars alto
gether had been produced up to the
time of the indictment of these de-
fendants-a although, in their appeals
to the public. all their estimates OF
profits were based upon an estimated
quantity production of 100000 cars fol
the year 1917
Tells of Stock Prices
Sand we shall prove that while they
were selling stock to the public al
prices that ranged all the way from 81
to So per share, that stock was ir
fact intrinsically worth exactly 12H
cents per share.''
Forthwith Mr.. Osborne launched
into detailed catalogue of the alleged
connection of each of the various de.
| PENDANTS with the operations of the
company's campaign.
| Here is t.ae complete roster of these
defendants:
! Nichols f. Wilson, dealer in auto
mobile securities and, according to the
| governments charges, the prime mover
in the circuitous Emerson stock sellins
deals; Willis George Emerson. who i:
said to be suffering from paralysis ant
Continued on last page, Column 4