New-York tribune., 1918-06-26
Never FairlyExplained
Chairman of Board Did Not
Account to Him for AIIeo.5
"Hush Money" Sent to Bo.to,

him to o. x. the check for that ar,oun.
which, transformed into cash. num.,.
Gus other witnesses have sworn. we,
hurried over to Boston by the Emer-
son interests in order to head off
rumored investigation into the com.
pany's activities there.
Colonel Emerson, according to Mr.
Campbell, never gave him a really
definite answer to that question. Tbs
man from whom the company that set
out to eclipse Ford derived its name
was, Mr.. Campbell pointed out yester.
day. chairman Of the concerns board
of directors. AS such his was th. an.
preme power in matters If this sort
On this occasion, the witness stated
he had been very insistent as to the
need for this illegal payment" but had
declined 70 60 into details as to the
use to which it was to be put, further
than to say that it was required in
connection with the District Attorneys
office at Boston.
He said that he would be personally
responsible in the matter" Mr.. Camp.
bell recalled. land would return the
money out of his own pocket if every
thing wasn't all right"
After which, as president of the COM
Fany, Mr.. Campbell said. ne signed the
check.
Later in the course of the elder
Campbell's cross-examination il was
brought on; for the first time that
Colonel Emerson had once, early in
the concerns career, withdrawn from
the promoters contract o. April 16,
1915. Inferentially. it was because he
ST this time entertained doubts as to
the feasibility of the project that
Colonel Emerson took this action.
Had Investigated Hupp's Failure
He gave as an explanation" Mr.
Campbell stated, "the fact that his sons
didn't want him to enter the automobile
business. Also, he said he had been
Investigating more deeply into Mr.
Hupp's record, particularly with regard
to the R. c H. car He said Hupp
hadn't told how bad the failure Of the
G. II. company had actually been"
Despite this fact, however, the wit
ress added, Colonel Emerson had finally
decided to go on with the venture.
'Was this prior to .he time you
started to sell the Emerson stock to
the public?" asked Assistant United
States Attorney James ". Osborne, I'd.
II don't know" was the answer.
In the same connection the witness
admitted that the Emerson shares had
been sold 20 brokers for 81 and subse
auently resold to the public at prices
ranging from 81 to So, but he denied
having received letter from the firms
,t% hot nroeood.
ing was dangerous business. Follow
ing which the prosecutor presented
copy of this alleged letter and offered
it in evidence.
Altogether. the cross-examination OF
the president of the bankrupt concern
occupied about four hours, in the
course of which Mr.. Osborne led him
again through all the phases of his d.
rect testimony given on Monday. On
that occasion Mr.. Campbell had been
emphatic in affirming his faith in the
possibilities of the Emerson idea. and
he still stuck to this assertion OF faith
yesterday.
1t was true, he said. that at the time
Mr.. Hupp and he. in drawing up the
cost estimate upon which profit cslcu.-
$40 as the price to be paid for mo-
tor, no company in the United States
was selling a motor as cheap Is that.
But, he declared, it was the intention
of the Emerson company to build It's
own motor.
"Why did you buy Metz motors,
then? 7" asked Mr.. Osborne.
II had to build a factory before
could make my own," was the answer.
"And did build factory" he added
First Cars Sold at = Loss
1t was also true, Mr.. Campbell ad-
mitted, that the first 500 Emerson cars
were produced at a considerable loss'
but he said he had expected that. ar'
f, Osborne read from a Berry g. Co. cir
cular, in which it was stated over Mi.
Hupp's name that a profit was sntici-
pated on this initial lot. The witness
still maintained, however. that all com
panies lost money on their first batee
car to yield $69 profit, he said, haa s
been figured with an output OF 50,ooo
cars a year in mind. and this produc-
ton, ne added, would have been
reached If the company had been al
lowed to continue unmolested. In SUD-
stantiation of which he identified nu.
merous large contracts for parts tnss
had been entered into by the firnis
When you started to sell Emerson
stock to the public through Mr.. VIII
son." Mr.. Osborne wanted to Know
"were you aware that Mr.. Wilson was
under indictment in Californian
At the start Mr.. Campbell confessed
that he was not, and it developed t1s.
Mr.. Hupp and he had made practicsily
no investigation of their broker betoIs
entering into negotiations with MN.
The first they heard of the Callforn's
episode, he said, was on June 50.
"Yet it was after this" said Mr. Us
borne, "that you gave over TO hin :
second 100000 lot Of Emerson snares
to dispose OFT"
"The agreement for that had been
made before" returned the witness.
Brokers Deserved Good Profit
Mr.. Campbell added that he hsd fei.
the company ought to receive % :
share for this stock, but that Coions'
Emerson said the brokers were doIns
such good work in making the ca'
known through their extensive aose.
tisinx campaign that 81 share wss
quite enough. ,.
what was Colonel Emerson hvlns
on all this time 7" aueried Mr.. Oseofae'
| "Was he doing any work?% a.
ITO be really frank" rejoinso ~.
Campbell, ''the colonel wasn't sves
big worker. He said ne was interessse
, in land syndicate in Wyoming isV~
which he got $1,000 nonth. .,.r
The witness swore he had ns.
heard that Colonel Emerson got ~. ~
rake off on Mr.. Wilson's prof,ts, ~
colonel's spare time, he said. oo.sss ~
the floating Of the Emerson scne"s
devoted to writing novel, -.
Colonel Emerson also produced sonAs
Hta~a<orA for thn Emarxon Four.