The sun., 1919-05-27
PLAN TO MERGE Big
MOTOR COMPANIES
Project to Combine Wright
Martin and International
Is Under Way.
NEW CONCERN PROPOSED
Consolidated Companies Stock
Would Be Traded for That
Of New Corporation.

Negotiations are under way for CON-
solidation OF the Wright artin Aircraft
Corporation with the International
Motor Truck Corporation OF Phila-
delphia. As the plan. under which
the merger is to be effected has not
been worked out, no ofiicial state
ment on the transaction could be OBJ
tained yesterday. but It was admitted
by directors of the two companies that
negotiations were pending and that
there was every indication that the deal
would be completed satisfactorily.
The tentative plan, as reported in I'M
official quarters. contemplates formation
Of a new company, the stock of which
would be exchanged for shares of the
wright-Martin Aircraft Corporation and
Of the International Motor Truck Cor
poration. The basis of exchange had
not been decided, 1t was declared, that
phase of the deal depending entirely on
final details of capitalization, etc II
was emphatically declared that the plan
would not include liquidation of the pre-
ferred stock Of the Wright-Martin Cor
poration, as reported. The deferred
dividends which amount to about IS
per cent, In all likelihood, 1t was said,
would be paid in cash. The story that
the accumulated dividends would be
capitalized in the new consolidation was
said to be without foundation.
1t was learned also that there have
been extensive negotiations between d.
rsctors OF the Wright-Martin Aircraft
Corporation and the United States Gov
eminent with reference to placing a con-
tract for 1900 Hispano-Suixa motors for
500 airplanes to be placed in service by
the Aircraft Division OF the War Depart
ment II that contract be made It is
tad ha m urnnld ha n "
cess of $10.000.000. The wright-Martin
corporation Is ready. to begin work on
the motors Immediately in the Long ISL
and City or the New Brunswick. n. j.,
plant. all machinery and equipment be-
ing ready for immediate use.
Negotiations for the merger have not
reached the point at which definite state
ment as to details, plans, &c. can be
given out. according to director OF the
Wright Martin corporation. He said
yesterday that the matter had not been
considered formally by the directors Of
the companies, but that in all probable
ity some action would be taken by the
directors of Wright Martin at their next
meeting within a week or two.
The International Motor Truck Cor
poration is a holding company. owning
the notes payable and ss per cent. Of
Company. 1t was incorporated in Mo-
vember. 1916. under reorganization
plan for the International Motor Com
pany, which, in turn, owns the capital
stock of the Saurer Motor Company.
with a plant at Plainfield, N. j.. The
Sauer company has the exclusive license
70 make and sell in the United States
the Sauer motor truck. In addition. the
International Motor Company owns all
OF the capital stock OF the Mack Broth
ers Motor Car Company, which has a
plant at Allentown, and all Of the capt.
tai stock OF the Hewitt Motor Company,
which has a plant in this city,
The International Motor Truck Cor
roration has a total authorized issue OF
b362S shares of common stock OF no
par value. of which 52.733 shares are
outstanding: s4,3s1.600 OF per cent
cumulative finst preferred. of which s4.-
a43,771 is outstanding. and $2.723,00O Of
per cent. cumulative second preferred,
OF which $2,656,449 Is outstanding.
The Wright Martin Aircraft Corpora
ton, which was incorporated in 1916.
representing a consolidation OF the
Wright company and the Glenn L. Mar
Tin company. has 100000 shares of
common stock of no par value and $5.-
200, 900 of per cent cumulative pre-
ferred. on which dividends aggregatlng
about IS per cent. are unpaid. Besides
being an operating company. manufac-
turing automobile and airplane motors,
tire company owns all of the stock of the
Simplex Automobile Company, the Gen
eral Aeronautic Company. Inc, of Amer
lea. the Wright Martin Aircraft Corpora
ton of California and the Wright Flying
Field, Inc. The corporation has the ex-
elusive rights for manufacture in the
United States of the Hispano-Suiza mo-
tor, which Is used extensively in air
planes built for the Federal Govern
mAnt.