The New York herald., 1921-05-26
DURANT HEADS BIG
NEW MOTOR MERGER
Many Former Officers of Gen.
eral Motors Are Associated
With Their Old Chief.
SHERIDAN co. IS BOUGHT
Muncie Plant Is Said to Have
Cost S., 900, ,0O0--New Cars
to Be Marketed.
SHERIDAN co. IS BOUGHT

william c. Durant, who built rp and
put together numerous automobile COM
panies In one organization capitalized
| at more than billion dollars, and who
subsequently resigned from that COM
pany, the General Motors Corporation,
when new financial interests were taken
in, is proceeding with the consolidation
Of a new group Of automobile manu-
featuring concerns likely to be capital
ICED at many millions.
At tho same time the General Motors
Corporation, under the new leadership
of the du Points and the Morgan inter-
ests, Is gradually reshaping itself by
bringing its several units into a more
compact organization. The purpose is
said to be to bring about greater eff
cheney in the manufacture and sale OF
automobiles and for more economy in
operation.
After Mr.. Durant resigned from Cen
eral Motors and his holdings Of General
Motors stock were taken over by pow
erful financial group last fall changes
began to appear In the makeup of the
various divisions. particularly In the cx-
ecurive departments. Old managers went
and new ones came. and many runlors
were current then of reorganization,
which Is now admitted.
Most Of the men who LETT General
Motors drifted Immediately to aIr. Du-
rant. and at once whispers Of new
consolidation began to be heard. Mr.
Durant said nothing until one day he
announced the formation OF Durant
Motors, Inc. to manufacture now
$1,000 car Soon another company,
called the Durant Motor Company, was
formed to handle the sales OF Durant
Motors, Inc.
M. ]. Lahey, for long time sales
manager OF the Chevrolet division OF
General Motors, announced his resigna-
tion from that company and was made
sales manager OF the Durant Motor
Company. for which a plant had been
purchased in Long Island City.
r. H. Collins another General Motors
officer severed his connection and
formed the Collins Motor Company, to
manufacture new car. Tho connection
between Mr.. Durant and Mr.. Collins has
never to date been established, but in
some quarters II Is believed the Collins
company will form unit in the new
Durant organization. Mr.. Collins pur-
chased from General Motors an old
Cadillac plant no longer operating.
Edward Yer Linden, who was execu-
tive head Of the Olds Motor Works, an
other General Motors unit, left that cor
poration. and announcement was made
yesterday Of the formation OF the Durant
Motor Company of Michigan. with an
authorized capital Of 81. 900, 900, OF which
Mr. Yer Linden will be president and
general manager. This company will
have its main plant at Lansing, Mich,
with an annual capacity Of 10000 cars.
II will be controlled by contract by Du-
rant Motors Inc, according to tho official
announcement, and will assemble ana
distribute the new Durant car in the
territory between the Adirondacks and
the Rocky Mountains"
1t was announced yesterday that a
syndicate of automobile men. headed by
MIR. Durant, had purchased the Sheridan
Motor Car Company Of Muncie, Ind.
from the General Motors Corporation.
The latter In an official Statement. said
1t had disposed Of the Sheridan com.
pany to Daniel A. Burke. its general
manager. but from the Durant offlces It
was ascertained that there was a con-
nection between Messrs. Burke and
Durant in the deal. The price paid for
the plant is said TO have been $4,000. 900.
Mr.. Burke AID his associates will take
over tho entire Sheridan property and
will organize q separate organization to
continue the Sheridan line.
The General Motors Corporation an
nounced yesterday that the activities OF
the Frigidaire Corporation. manufactur-
ers of refrigerators, are being extended
through the sales organization OF Deico
Light Company. another General Motors
subsidiary. The Sunnyhome Electric
Company, which makes domestic farm
lighting plants, has also been consoli-
dated with Delco.