New-York tribune., 1918-06-29
Emerson Motors
Conspiracy Case
Goes to the Jury
Prosecuting Attorney, in
Summing Up, Declares
Fraud Proven

/
the hands Of the jury.
After four hours of sledge hammer
oratory, Assistant United States At
torney James w. Osborne, I'd, yester-
day concluded his summing up of the
governments charges against the de-
fendants.
Shortly after o'clock Judge Martin
7. Manton, in whose branch Of the
United States District Court the case
has been heard, finished his charge to
the jury. The defending attorneys
filed forward with their final ire
quests" The court officers started
transporting the great mass of ex-
hibits into the jury room. and by
$3.50 the jurors who have been
sitting since May % had begun their
deliberations.
In his resume of the evidence, which
has extended over nearly six weeks
In the taking, Mr.. Osborne traced the
, career of the company side by side
with the advertisements that accom-
panied its various stages.
"1s that a full, fair statement Of
the condition of the company in which
these men were offering stock for
sale?" Again and again he concluded
his readings Of the advertisements with
that challenge.
Says Facts Were Suppressed
"Look at the facts that are sup
pressed!" he cried. "That is the test.
1t is the duty of people selling stock to
state every single fact pertaining to
hof str hot tc
the purchasing of merchandise does
not apply to stock. Merchandise you
can see, feel, examine. You can prove
for yourself whether you're getting
what the salesman says you are get
ting. With stock you cannot do that.
With stock you are obliged to take the
salesman's word. And the obligation
of the salesman of stock is stricter in
proportion.
"In not single case here has full,
fair, honest statement of the facts been
made for the guidance of the purchaser.
Not promise out of all this glittering
list has been kept. Just look at the
record.
"a long list of advisory directors is
drawn up, recruited from men who
have no knowledge of this company,
solely in order that their names may
be used to induce the public to invest
its money. A picture of a factory is put
out when there is no factory. An in
spired article is published in news
paper and then circulated as if it rep
resented the independent judgment of
that newspaper. In the formation of
the company every recognized rule is
fouted solely in order that the pro-
moters may benefit. And then these
defendants have the colossal effrontery
to come here and tell you that theirs
was bona fide business failure"
A dozen times Mr.. Osborne reverted
to the charge that no one of the pro-
moters of the Emerson scheme ever put
up dollar of his own money. Back
dated letters and minutes of meetings,
estimates that existed only on paper,
bribes handed through back doors
of the "good faith" with which the de-
fendants maintain they acted through
out their ill-fated venture.
Ridicules Hupp's Idea
Taking up the defence's picture Of
Robert Craig Hupp as an inspired
dreamer" the prosecutor traced the
history of Mr.. Hupp's failures and ridi
culed his every pretention to eminence
in the automobile world. Scathingly
he referred to him as "this genius with
an idea worth $6,999, ,OOO.
"But there isn't an original thing in
the whole ideal" he concluded.
The schedule to which the Campbell
defence has consistently pointed as
proof of the concerns sincerity, Mr..
Osborne declared, was "to all intents
and purposes thrown out of the window
except for stock selling purposes" The
"voting trust" tieing up control of the
Emerson company for term of three
years, and cited by the defence as su-
preme proof that the originators of the
project intended to proceed with le-
gitimate business, Mr.. Osborne stig-
matized as the scheme whereby alone
they were enabled to sell stock, chiefly
Zone hundred and two hundred per
cent was the amount the defendant
Wilson made on this stock" he said.
And how much Of this money ever
found its way into the Emerson treas
ury? The records in this case show"
The Wilson notes to the company.
Mr.. Osborne held, were mot worth
the paper they were written on" and
the arrangement whereby that broker
paid the company for the stock he took.
only. after that stock had been resold
to the public at largely increased
figure, the District Attorney pointed
w 90 SASoA-NU pIOO1 LNlS was 'nOthlnO
more nor less than a stock-selline
scheme" 'e
IN the same connection he elaborated
the details of his case against each of
the individual defendants, waxing mar
ticularly bitter in his denunciation of
Matches, the salesman from Boston
where $20,500 was sent, it is said IN
avert investigation. "
Much time was devoted, too, by Mr.
osborne to the letter Of resignation
from James Warren Hill, the first at-
torney for the Emerson firm, in which
II was stated that the concerns nrac-
tlce OF stock selling was "obtainino
money under false pretences n ;ts
simplest FORM" This letter NJ car,rs
pen deciares he personally never re-
rsivea; put that contention, too, the
Takes Up Attorneys Case
AS to the other reply of the defen..
20 the charge embodied in this ietterS
enat amos II. Stephens, the succeed;no
attorney, was present at the meat;nss
where 1t was spread on the record onSS
approved all the methods Of tha .o. orsu
Pany-Mr. Osborne said that IL ~.
were actually the case Mr.. Stanbanss
should be sitting in court ptuns on ts,aa
along with the other defendants '''"1
AT the beginning of yesterdav,s CO..
SION Jud X. Rush, CONCLUDING - ss,s Ses-
ming up for the defence. statad su'n thn.
the promoters hopes for success sa @ unas
eenttlrely enty Justified; that at that period