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R-C-H AUTO SMASH DUE TO UNSOUND FINANCING *.' AND MISMANAGEMENT Hlitory of Company That Want { §4 to Bt Giant From Start Fnrnlahca Pointed Com mercial Lessons PLANS 30,000 CARS FIRST YEAR; SELLS 6,000 Industry Sound, bat Suicidal Policy Leada to Bankruptcy —Aaaeta Under Hammer The plant and aqulpmant of tha ' R*C*H corporation, on Lyoaete-at. and tha Detroit Tarmlnal railway, offered at auction under order of ,the bankruptcy court, Tueeday morning, brought a bid of only 91*400. The aooota of the Arm, Includ ing land and buildings, a forge, -foundry and complete machine chop, aa well ae acme etook, had been appraleed by the receiver at *OO4OO. The total liabllltlea of tha ooneern, exeluelve of 000 stook, are almeet *,000,000. It waa announced by the Secur ity Truet Cos., which hae been re ceiver for the concern el nee last July, that Ita recommendation to the federal court would be that the aale be net confirmed. The bid of sl*4* waa made by H. F. Grant, of the Orant Iron A Metal Co* Detrlt. In view of the fact that It waa eo low and en tirely unaatlefactory to the re ceiver the aale wee adjourned till Monday morning In the office of Referee In Bankruptcy Joelyn. Waye and meano of dlepcaing of the property will be dlocueoed further by the cred itore at that time. The auotlon waa conducted by Charlee N. Qray of the Se curity Truet Cos. The history of the R-C-H corpora tion, whose plant and assets were put up for sale, Tuesday, as the result of bankruptcy proceedings. Illustrates the disastrous consequences of the brand of financing to which It owed tts eslstence. There Is In Its career both a warning to automobile men and a sign of hopeful significance which promises well for them In the future. Organised a little more than two year* ago, with a capitalisation of 91.000,000, the R-C-H concern was In hot water financially a year ago last September. A creditors* committee of nine took charge of lta affaire then, and ap pointed J. P. Harts, president and gen oral manager. Strenuous efforts were made to get the tottering concern on a aound foundation, lu July last, an other change was made by the com mon content of the committee and creditors in the selection of the Se curity Trust Cos., as receiver for the business. More recently, a few of the creditors voiced fears that others were being favored In the payment of current bills, and their complaints carried the question of the firm’s i financial condition Into the federal court and Its adjudication of bank ruptcy followed, Nov. 6. That le the "how” of the failure. The "why” te sot far to seek. Inspired by the idea of a 91.000.000 concern. Its promoters conceived It M a large scale —too large as it moved. They made contracts: bought naterials and supplies; advertised sad organised their selling plans all M the basis of an outnut of 30,000 cart the first year. Selling agencies with renalr shops, storerooms and sther adjuncts were established in all Ae large cities, from Boston to San Frandtoo. They all proved very ex tensive. Everything about the organisation, tom top to bottom. In addition to telng on a large scale was to have Ae polish of the finished product. Ken taken from other connections were put on high salaries with the ntpectatlon that they. too. would fit Btc the mechanism Immediately, sl owing It to run without friction from he very start. Aa a matter of actual statistics, the mtput of the first year of oDeration iras 9.000 c -s, instead of 30.000. And ret the expenses of the 30,000 car went on. Another mistake made by the pro noters was In trying to put on the narket in large numbers a car which lad not yet been fully perfected. It lad too many special parts and cost Aa company too much to make good . ■ wjv The lowest-priced, most economical closed car on the market SU-puaengqr—4-cylln der —10 horsepower. Price includes two 6- lnch gas lamps, generator, three oil lamps, horn and tools, lncliSdlng Jack —f. o. b. De troit Qet particulars from Ford Motor der—lo-horsepower, rice includes two 6- Company, 1650 Woodward-are., Detroit, or direct from Ford Factory. # Ford Model T Town Car—s76o. lta guarantee. During the regime of the creditors’ committee the car waa perfected. Standard parte were in troduced wherever ooeelble, and the falling company might yet have been saved If the handicap of lavish ex penditure due to inexperience and lack of foresight had not been too great. This' sort of financing Is not con fined to the automobile Industry. A. I. Mason, one of the moet successful of apple growers in the famous Hood River valley, of Oregon, said of that Industry-* few years ago: ”A large percentage of the men who go In for raising apples fall because they put the bulk of their capital Into clearing and setting out an orchard. In anxiety to get as large a one as pos sible, they minimise the fact that they must care for It through six long unprofitable years. But their failure does not argue the unsoundness of the apple Industry.” Neither does the failure of the R-C- H or other concerns which like It are compelled to ufidergo reorganisa tion. mean that the automobile busi ness Is In Itself unsound. The failure Is not the result of reople not having the money or desire to buy cars. Among the assets of the R-C-H nut up for sale were 6.000 un filled orders and others are coming In every day. Its car still Is in demand. The disaster which overtook It was due solely to mismanagement and bad business policy. This mismanagement Is not excep tional in this case or without excuse. The founding of the automobile In dustry a few ye*rs ago opened up a new Industrial field to be exploited. With characteristic American daring, business men proceeded to exploit it In the same wav in which every other resource of the country has been, even to the soli Itself. But even as the farmer of today cannot make a living by the methods followed by hts forefathers, so the automobile man must change his methods. The difference is that the course of development, which in agri culture has taken a centurv to work Itself nut. Is coming about In the au tomobile business In a decade. In other words, the lndu«trv already is moving from l»s •peculative stage Into one of commercially sound and scien tific management. That Is the sign of hope to be seen in the reorganisa tion of firms which, the R-C-H. have plaved for big stakes and lost because they have gone In beyond their death. The thing which more than any thing else In Detroit Is hastening the day when the risks of automobile manufacturing will be eliminated. Is the operation of one concern which hag set a standard of serviceability to be achieved and has bent every ef fort bv e roadmen ting, organisation and standardisation to achieve the result desired at the lowest possible cost. A low-ortced car cannot drive out of the market a higher priced one. There must always AS a sale for a varietv in styi«*s and nrlces *s long aa Income* differ In alse. but the high-priced machine must be worth the money as compared with the chean one. Putting 93.060 Into brass fixtures, nlckel-niatlng. labor, salaries, interest on bonds and other expenses incident to the manufacture of a car will not ma v e it worth 9*1.000. The etrlvtng after a chean car may result In placing the msnufacture of nil on a sound hasls. If automobile men read the lesson that should be nlainlv seen by them, there will be no repetition of the RrC-H’s history. HEAPING IN JACOB CASE ON THIS AFTERNOON Dr. Bernhardt Jacob, superinten dent of the Detroit House of Correc tion, who is to be tried on a charge of obstructing a state food Inspector, to test the powers of the Inspectors, appeared before Justice Gainey, Tues day morning, ready for trial, but as many other matters were pending, the case was put over until 3 o'clock, Tuesday afternoon. Corporation Counsel Lawson, Dairy and Pood Commissioner Helrae, and Inspectors Burr B. Lincoln and Heft ry Collins, were all In court, ready to proceed with the case. Justice Gainey told them to come back at 9 o’clock, when he would have a clear elate for them. Piles Cured* in • to 14 Days Druggists refund money If PAZO OINTMENT falls to cure Itching, Blind, Bleeding or Protruding Piles. First application gives relief. 60c. — Adv. THS DBTSOIT TIMES, WEDNESDAY, NOVEMBER 12. 1913. JURYTO TRY AID. GLINNAN AGAMIN SIGHT Just One Place to be Filled— Neither Side to Make Per emptory Challenges JUROR STEWART IS EXCUSED FOR ILLNESS Examination of Probable Suc cessor Unfinished When Court Adjourns Judge Phelan sprang a surprise in the Gllnnan case. Tuesday afternoon, when, after a man had been found to take the place made vacant by the excusing of Albert Kern, manager of the Ford building, who discovered, over Sunday, that he has an opinion the court ordered both sides to make their peremptory challenges. “We are satisfied with the Jury aa It stand*” said Chief Assistant Pros ecutor Jasnowski. “We have no challenges to make,’’ said Attorney Jamps McNamara, for the defense. ’’Then 1 shall excuse Juror Stew art on account of sickness, and you will examine talesmen to fill his place,” said the court. Though it was past the usual time of adjournment, the name of Lewis H. Snyder was called, and hit exami nation waa begun. Judge Phelan or dered that Eddy T. Bird, excused ear lier in the day, be sent for, so that the jury could be a worn In If Mr. Snyder proved acceptable. Court was finally adjourned until Wednesday morning before Mr. Snyder’s examination was completed. Thirteen men were examined, Tuee day, In an endeavor to fill Mr. Kern’s seat. Ten of them were excused be cause they had opinions; one was a j friend of Aid. Gllnnan, and one was (excused because of his age. The thir teenth, Herbert Mickel, retired gro cer, was accepted by both sides. "Chudlelgh. It’s a good thing you weren't with me, Sunday afternoon,” said Judge Phelan, Tueeday morn ing. ’Thank you,” replied William H. \ WESTERN UNION ~-| , waw3r— 1 -j TELWRAM TMia N. VAU, MtMOUT vifa/Vl AA yoirffc *£ , 4A)o*vt~ aXT j -^VVthte/wi lovt Acmmu.. THE WESTERN UNION TELEGRAPH CONPUT •Use* laSlvtdaal Tailerla# at the ffftee ts Nea-ladlvlteal leadrauMe” Balmacaan s£r Overcoats % ) ■ ' l , y \ . V "Th* Thirty-third Book of Men’sClothc*’’—with handy quick-reference correet-drea* chart —free. All eletkes mnda by Mjiwt wed kept la repair free es char pa far aa •■tier year. Dry Clreatap (Salta aad Overrents) fi ®o* senses aaa weaiaa aaeaaaarf 220 aad 222 Woodward Avenue MAIL ORDERS— We make quickly and St perfectly. Write for aelf> measurement blank and sample* All rights reserved. Reproduction of this advertisement In whole or In pert forbidden. Chudlelgh, Juror in the Gllnnan case, who In his examination said that he spent his Sundays at the Flats, as a rule. \ N V Judge Phelan spent the time from 3:10, Sunday afternoon, till 4:30 r Monday morning, In an open launch, aground in the St Clair river. He spent Saturday night and Sunday morning in a Flats cottage. Trying to reach the Btar Island bouse, the carburetor' froxe and the launch, driv en by- a high wind, drifted hard aground. Judge Phelan and hla two companions tried to keep warm by protecting tbemaelvea with life pre servers and oilakius. They succeeded in making the engine work, and warmed themselves slightly over the exhaust “For five minutes I thought of swimming the channel, ratner than freexe to death,” said the judge. The revolving wheel finally kicked a hole In the sand, floating the.stern; and the weight of the three men in the stern brought off- the bow. They headed the launch toward the cottage they had left, and, after arriving there, slept, utterly exhausted, till I o’clock Monday afternoon. Then Judge Phelan went to Pearl Beach and came by trolh to Detroit When the Gllnnan trial was resum ed, Judge Phelan officially announced that David Stewart la 111 with tonsil- Itia. It was decided to take no ac tion, but to leave him on the jury and await developments. Albert Kern, accepted for service by both sides, told the court that hie memory has been so refreshed that he now hae an opinion. He was ex cused. T. J. Schmidt, No. 571 Baker-et., was called. Attorney Kennary found that he has aa opinion. He waa excused. Thomas 8. McGraw, No. 81 Alfred ■t; George Wldman, No. 162 Avery* ave., and Peter M. Ditxler, No. 3079 West Grand-blvd., followed the same course. So did Edward T. Blrdeell, No. 196 Pal Utter-eve., and William Jewett, flo. 170 Antletam-et George McLaughlin, No. 299 Four teenth-ave., had no opinion. He said that he la a relative by marriage of Detective Fenton. After considera ble questioning, Mr. McLaughlin ad mitted that he believes Aid. Gllnnan took money for hla vote. He waa challenged and excused. Charles Fellrath, No. 50 Maybury Grand-ave., and Robert F. Suckert, No. 497 Kercheval-ave., were excused because they have opinions. John W. Cotney, No. 326 St. Aubln ave., didn’t think he had an opinion. He was accepted by the defense. Chief Assistant Prosecutor Jasnowski questioned him. He said he has known Aid. Gllnnan since 1884, when they worked together for the Wabash. He was surprised to hear of Aid. *2O These loose easy -on coats that are the latest English “agony”—we make them to order for S2O up. You probably know how much more they get for them in the ready-to-wear shops. We’ve just the right coatings— tweedy blanket cloths, heavy chev iots with bright color specks, heavy homespuns, Scotchy goods that one can scarcely find a fit name for— gay patterns and on thru a long range to quite sober and puiet. We make to order only—and as quickly as you say. Business suits to order sls to $28.50 Gltnnftn’s arrest and hesitated to be llave the things or which he was ac cused. Ha would betleva Gllnnan't story In preference to that of anyone else. He was challenged and ex cused. Blius C. Dell, whose son, Wade, waa sentenced to 90 days in the House ot Correction, last week, by Judge Phe lan, for striking his father, was call ed. He is without au opinion. Judge Phelan interrupted the ques tioning, suggesting that Mr. Bell 1* too 01d—73. “I won’t take any chances with this case,” said the court. “You’re a pen sioner, are you not, for disability?” “Yes, sir,” Mr. Dell replied. He was excused, Charles D. Sullivan. No. 343 Flf* teenth-st., has an opinion and was excused. I Dr. Gilbert J. Anderson, summoned j by the court, said that David Stewart, ! Juror who 1« 111 -with tonsllitis, Is In no very serious condition, and would be able to leave his house as soon as the weather improves. Mr. McNamara questioned him closely, but Dr. An derson would not admit that there was anything very wrong with Mr. Stewart's health. Herbert Mickel. No. 808 Champlain st. said that once said to At torney Edward Devine that he would like to alt on a jury, because he need ed the money, but he did not know whether his name went into the Jury box on that account. Mr. Michel waa once In the grocery business, but has retired and Is living on the income of some property which he owns. He was accepted by both sides. An attempt was then made to 1111 David Btewart’s seat. Charles Perry, No. 63 Tillman-ave., said that he has an opinion. Lewis H. Snyder, car penter. living at No. 434 Scotten-ave., was then examined. DETROITER RESCUES CREW OF STEAMER BUFFALO, N. Y., Nov. 11.—The toll of the atorm which swept the Buffalo district for 24 hours, ending today, was the heaviest along the water front, where a number of boats were smashed on the rocks. Five members of the crew of the drill boat Explorer were rescued from death during the 70-mile blow by Capt. Henry Cook, of Detroit, in the tug Smith. The is now moving out to ward the ocean through the St Law rence valley. It is in velocity, but snow la following In its wake. One railroad wreck is reported near here. It occurred on the Erie, two miles east of Lefoy, and caused the death of Rev. James A. Anderson, of Nichols, and the injury of eight other passengers. A Friend of Crooks by Peter Clark Macfarlane ' * A gripping portrayal of an amazing personality—a tiger who turned back from chase and quarry, a man-hunter who . turned man-helper. A continent marveled at the transfor mation. Now comes Mr. Macfarlane not alone with the ex planation, but with a fascinating story of humanity sal vaged* Over-the-Counter Sales by William Maxwell To the editors of Collier’s last spring came a manuscript, /^Salesmanship—-Rule-of -Thumb Science,” by William Max well, The editors didn't know Mr. Maxwell, but they knew right away that they had a crackajack business article. And when it was published business men the country over said the same thing. Now he has written a series of four articles of which "Over-the-Counter Sales” is the first. The others—" Anything Else Today?” "Just Looking,” and "Buying”—will appear in early numbers. Wire, Wings, and Wires by John Guy Gilpatric Here’s a birdman who writes real fiction. Mr. Gilpatric flew his machine in the recent Aeroplane Derby over the roofs of New York skyscrapers. Now he invites the reader t 6 consider a romance of the air. * Two Other Good Stories Tuck Young’s Princerples by Rose Eilerbe Tuck is a stubborn struggler who simply won’t let go. McGlew Shows Ann by Thomas G. Connolly Mr. Connolly is Irish and Atmris Lrish and McGlew »Irish— and the answer is wit. Unconquered Perils of the Sea by Waiter Hiatt Neither the unsinkable nor the unbumable ship has yet been byilt, nor have the problems of rescue from a doomed vessel been solved—so reads the record of sea disasters. Pickups and Punts Grantland Rice’s page of football verse and comment. 4 Pages of Photographs 2 Pages of Rousing Editorials Mark Sullivan’s Comment on Congress In the November 15th Issue of Sc-Collier’s-Sc THE NATIONAL WEEKLY On All News Stands Today! am jffip s3L aTVIV. ■Lfam/ v 1 wPia if 1| “Follow the simple direc tions on the label” That is all you need do to produce a perfect bisque from C&mpbelFs Tomato Soup. Use only a small pinch of baking-soda. Use fresh sweet milk with only a Bttto cream in it, if any. After you mix the soup and the milk let them come to boiling-pointi but do not let diem boil This is all done easily in three minutes* And you have a bisque, or cream-of-tomato soup which any chef might be proud o L . Isn't that just what you want for dinner today? 21 kinds 10c a can Look for tb. rotUnd-white kUI Ifcmft&ffiL Soups Page Three