New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-11
Maxwell Motor
Company Put in
Hands of Board
Management Committee Is
Named When Plan of Con-
solidation With Chalmers
CorporationFallsTh
Various Rumors Denied
Prominent Men Appointed
to Place Concern on
Sounder Financial Basis

the MaXWell and Chalmers motor COM
panies to agree on plan of consol-
dation, which would provide for the
financial requirements of both con-
Germs, has led to the appointment of a
management committee for the Max
we'll corporation, the chief purpose of
which will be to place the company's
affairs on sounder financial footing.
The management committee consists
Of Walter P. Chrysler, formerly vice
president of the General Motors Cor
poratlon and general manager of the
various motor enterprises of John N.
WHY'S; j. r. Harbeck, vice president
of the American Can Company George
w. Dawson, president of the Central
Union Trust Company; E. R. Tinker.
vice president of the Chase National
Bank; Ralph Van Vechtcn. of the Con-
tinental and Commercial National
Bank, Of Chicago; James C. Brady,
representing the Brady interests; Leo
Butzell, representing the First Old De-
troit National Bank; Hugh Chalmers,
B. f. Evertt and other Detroit inter-
csts.
Two Rumors Denied
The presence of Mr.. Harbeck on the
committee gave rise to a report that
the Maxwell company would be taken
over by the American Can Company.
This was denied emphatically by mem
bers of the committee, as we'll as an
other rumor that the Maxwell company
would enter the WHY'S group of motor
enterprises.
While the committee is endeavoring
to work out permanent financial plan,
it is understood that New York banks
will advance sufficient funds to tide the
company over its pressing require
ments. The exact amount of tho adj
vances, it is expected, will be deter
mined this week: The failure of the
merger negotiations with the Chal-
have been due to the present unusual
financial conditions which prevented
the carrying out of the consolidation
program first proposed a year ago.
Under this plan new company, to
be known as the MAXWELL Chalmers
Motor Corporation. was to be organ
lied to acquire directly or through
ownership of stock the properties of
the Maxwell and Chalmers companies.
Holders of the $3,133,336 Maxwell first
preferred stock were to receive accrued
dividends to September /, 1919, and 1870
per cent in common stock of the new
company. Holders of the S1O,127,46s
second preferred stock were to receive
661a per cent in new common, while
Holders of the S13,133,336 Maxwell first
were to receive 10 per cent in new
common.
Holders of s3,150o00 Chalmers Motor
G per cent notes were to get $3.50 900
in new preferred stock. The S4.40O, 900
preferred stock was to be exchanged
for 105 per cent of new common Of
the consolidated company, while hold
crs Of $399,364 Of Chalmers common
were to get 5 per cent in new COM
mon. In addition the new company
7 per cent sinking fund convertible
notes.
Bank Agreed to Take Issue
The Central Union Trust Company and
the Chase Securities Company under
the plan agreed to purchase the new
note issue by December 3, 1919, but
as the bankers refused an extension of
the time for the purchase the agree
ment was allowed to lapse Under the
original stipulation the bankers agreed
to offer the notes to the holders of
stock deposited under the plan, pro-
vlded 1t was made operative by De-
cember Is, 1919, on the basis of So 100
of notes for 100 shares of Maxwell de-
posted stock.
Negotiations looking toward financial
advances to the Maxwell company have
been in progress in this city and De-
trolt for the last three weeks with
representatives OF the Chase National
Bank, the Central Union Trust Com
pany, stockholders in the Maxwell and
ested parties participating.
The exact amount Of the initial ad-
vance to the Maxwell company, it was
said yesterday, has not yet been de-
termned but it is expected to total
about $4,000 900. A conference of the
interested bankers will take place
shortly, when the method of making
the loan, the amount and other details
will be decided upon.
AS a result of rumors ahoat from
time to time concerning the financial
difficulties of the Maxwell company it's
common stock has declined from 351s,
the high of the ye;v, to a recent low
of 1919. The first preferred stock has
declined from GO ~ to 171a.
Under an agreement dated Septem-
Der /, 1917, the company leased for
period Of five years the property and
assets of the Chalmers Motor Car Com
pany at a rental of one-half the net
profits derived from the operation Of
the leased property.