Omaha daily bee., 1921-08-14
Local TireFirn
Started in Barn
Loft in Dakota
3rictson, on Stand, Tells of
His Company's Rise From
Haymow to $l0,OOO,-
900 Corporation.

From the haymow of South Da-
kota barn to commodious offices IN
the Woodmen OF the World build
ing in Omaha and luxuriant suite
in the Blackstone hotel, and from a
one-man tire shop to Sl0O0O,OOO
corporation-such was the story told
yesterday on the witness stand in
federal court by O. A. Brictson,
president of the Bricston Manufac-
turing company. under fire of the
Nebraska stockholders.
Bricston appeared in court on or
order issued Friday by Judge Wood
rough at hearing OF peti-
ton filed by stockholders for re-
straining order against the company.
Broad allegations have been
made" said the judge at the open
ing of the hearing. outlining the
scope Of the investigation, in the
original petition filed by the stock
holders, of highly improper conduct
in the running of this concern, such
Us hiding from the stockholders.
Bricston on Stand.
Bricston himself was the first man
to take the witness stand. he was
accompanied into court by his force
of office help, which includes Mrs:
Bricston, Miss Bertha Traspa and
G.. M. Breed.
For IS years, Brictson lived in
Brooking, S. D., a town OF 4,U0O
souls, he told the court, and he
operated there a tire business which
manufactured the "Brictson tread
under patent
He began the business in hay
NOW Of a barn, starting with one en-
ploye., soon branching out to erect
little frame workshop, 2S by 81
feet, which since has never been
transferred to the corpratlon.
Grew to $4,000. 900.
Then the company grew to be-
come incorporated in South Dakota
for SlO,0O0,000, of which $4,000. 900
was common and $2,000,000 preferred
stock. he testified, and now operates
a three-story plant at Brt oking.
Under this original incorporation,
lie held $4,000,C00 common stock, he
declared, and 100000 preferred
stock. Members of the first board of
directors were G.. ]. Flittie, George
Cobel and H. F. Haroldson of
Brooking and w. L. Montgomery
OF Sioux City.
He secured his own stock by trans
fcrring his assets and business into
the corporation. These directors all
held preferred stock i'll the corpora
ton, and paid for it in cash, he stated
urder cross-eXamination.
Came to Omaha.
Then in the fall OF 1917 Brictson
cape to Omaha. opened Offices at
1915 w. O. w. building, secured a
suite at the Blackstone hotel, where
he. has lived since, and Mrs. Brict-
son remained On the payroll, in
charge of accounting, bookkeeping
and moneys.
: Before coming to Nebraska the
Slolh vi tIlC pl1tSOH Ill III was lC-
duced to $5,0000OO, he related. and
a permit was obtained from the state
railway commission to sell $oO0,000
worth cf stock in the state.
Edwin T. Swobe became fiscal
agent in charge OF stock sales in
Nebraska and sold about $500, 200
worth" he testified.
Paid Per Cent.
"Swobe was paid 5 per cent for his
sales he stated, and Judge Wood
rough interpolated, Il understand
he was paid in stock" but attorneys
passed the judicial remark un-
noticed.
Total charge of 80 per cent was
permissible for sale of stock?" quer-
led Attorney +. A. Mulhnger, for
the stockholders.
Yes" replied Brictson.
Then you charged So7,S06 to sell
$4,000 in stock" declared Mulfin-
ger
Commission Audited Books.
THE blue sky commission audited
the books and allowed so per cent"
said Bricston.
This was not an arbitrary sum,
interjected Attorney Cullhane, coun-
sci for Brictson.
We can account for every dol
lar and every postage stamp used in
tho office in the transaction of busi-
ness ..
How much business did the conf