Indianapolis Times, Volume 40, Number 39, Indianapolis, Marion County, 26 June 1928 — Page 3

JUNE 26, 1928

COURT ORDER HALTS DODGE MERGER DEAL Minority Stockholders Get Injunction to Block Chrysler Control. B,v Unit ed Pregt NEW YORK, June 26.—The $250,000,000 merger of Dodge Brothers, Inc., and the Chrysler Corporation, which was to have become effective today, has been halted, temporarily as least, by a minority stockholder's injunction. Supreme Court Justice Richard P. Lydon late Monday granted a temporary injunction staying the merger pending a hearing in Supreme Court today before Justice George V. Mullan. The action was brought in the name of Col. Calvin Hocker Goddard of Richmond, Va., and is directed against Dillon, Read & Cos., bankers who acquired control of the Dodge Company in 1925, and hold all of its voting stock. Colonel Goddard is said to represent about 5,000 shares, of preferred stock out of a total of 850,000 shares outstanding. Share for Share Exchange House, Holthusen & McCloskey, counsel for Colonel Goddard, in a statement, said the action was based on the contention of Dillon, Read & Cos. that the Dodge assets can be transferred “without regard to the right of the preference stockholders to receive $lO5 a share for their stock on a dissolution of the company or the liquidation of its assets.” Terms of the proposed merger, as agreed upon by the directorates of both companies, call for the exchange on a share for share basis of the Dodge preferred stock for Chrysler common stock, five shares of Dodge Class A common for one share of Chrysler common, and ten shares of Dodge Class B common for one share of Chrysler common stock. One-Third of Stock Based on the value of Chrysler stock, at close of the market Monday, the Dodge preferred shareholders would receive shares worth $69.50 for their stock. Dodge preferred, however, closed at $66.25. “If all the Dodge stock is exchanged,’’ the statement read, “the Dodge shareholders will hold 1,287,004 shares of Chrysler common, or scarcely more than 29 per cent of the total of 4,425,000 shares. In other words, they will have contributed half or more of the assets of the recapitalized Chrysler corporation- and will receive less than one-third of the stock representing the combined assets of Dodge Brothers, Inc., and the present Chrysler corporation.” Above Chrysler Assets The balance sheet of the Dodge Company as of Dec. 31, 1927, lists total assets of $131,569,968, while Chrysler’s assets as of the same date were listed as $103,894,681. “The preference stockholders,” said the statement, “if they make the exchange, share for share, will hold aboutt 850,000 shares of Chrysler common out of the total 4,423,484 shares, or a minority interest of less than 20 per cent on a parity with common stockholders.”

FRANK E. M’CARTHY, EX-COUNCILMAN, DIES Lifelong Resident of City Will Be Buried Thursday. Funeral services for Frank E. McCarthy, 52, former city councilman and prominent Democrat, will ( be held at 9 a. m. Thursday at ’ SS. Peter and Paul Cathedral and burial will be at Holy Cross cemetery. Mr. McCarthy died Monday at St. Vincent Hospital, following an operation ten days ago. He was a native of this city and lifelong resident here. For eighteen years Mr. McCarthy had been employed in the Big Four shops at Beech Grove. He served in the city council during the first administration of Mayor Samuel Lejvis Shank. He was a member of the Knights of Columbus. Surviving are the widow, Mrs. Margaret McCarthy; two daughters, Miss Margaret McCarthy and Mrs. John M. Kelly, and a son, Francis McCarthy, all of Indianapolis; three brothers, William McCarthy of Bakersfield, Cal.; Joseph McCarthy of Hammond, Ind., and Raymond McCarthy of Chicago; three sisters, Mrs. Anna Edmonds and Mrs. Julia Fowler, Indianapolis, and Mrs. Nell Gleason, Hammond, and Jiis mother, Catherine McCarty, Indianapolis. BUTLER OUT OF RACE V,y T'nitrd Press BOSTON, June 26.— William M. Butler, former chairman of the Republican national committee, definitely is out of the race for the Republican nomination for United States Senator. s In a letter to Chairman Francis Prescott, of the Republican State committee, Butler reiterated his previous stand that he would not be a ;andidate and that he did not wish his name to be submitted in a Republican conference here Saturday. Butler's withdrawal leaves the Senate race open to a dozen candidates, with B. Loring Young, former speaker of the House, favored by many. Publish Historical Papers The Oepartment of State is preparing to publish papers and documents relating to the territorial history of Indiana which it has in its archives in Washington, C. B. Coleman. historical bureau director, has learned.

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Insurance Head

Frank L. Jones, twenty-two years Indiana manager of the Equitable Life Assurance Society, one of the largest insurance companies in the country, has been elected vice president. He will take up his duties as head of the sales forces in September. His office will be in New York.

EDUCATORS TO i PROBEUTILITIES Prepare to Sift Propaganda in Schools. B<i Vnilrd Press WASHINGTON, June 26.—Organized education, aroused by dis- | closures of widespread utilities propaganda in public schools of the ; Nation, is preparing to investigate i the whole subject. A resolution for such an inquiry will be introduced at the National ■ Education Association convention in Minneapolis next week, it was learned today. The meeting is expected also to take a strong stand against introduction of any form of propaganda in school curriculums. Especial attention will be paid to the part educators may have played in the power interests’ effort to invade the classrooms, as. revealed by the Federal Trade Commission’s inquiry. Numerous educators have been named in the power investi--gation as friendly to the utilities campaign. The educators’ investigation, however, will not confine itself to utilities propaganda, but will seek to discover to what extent other interests have made similar attempts to influence youthful minds.

JUDGE REJECTS BID ON DEFUNCT FIRM’S ASSETS Rules $550,000 Too Low for Indiana Investment Company. A $550,000 bid for all assets of the Indiana Investment and Securities Company, submitted by the Marion Finance Company, was rejected by Probate Judge Mahlon E. Bash Monday on the grounds it is too low. The assets were appraised at $593,000. Receiver Le Roy Lewis recommended that the bid of the Commercial Credit Company of $314,000 for the automobile contracts, valued at $296,000, be accepted. The finance company bid was submitted by Alex Metzger, president, who also was president of the defunct firm. It was raised by Metzger arbitrarily from $425,000 to $550,000 when it was indicated it was too low. Preferred stockholders would be cut off with little should the $550,000 bid be accepted.

DRAW NAMES FOR JURY Eighteen Selected for Prospective Service in Marion County. Names of six prospective Marion County grand jurors, to serve six months starting July 1, were drawr. Monday by the County jury commissioners. /"■ The final report of the retiring grand jury will be submitted late this week to Criminal Judge James A. Collins. The six names drawn were Eli J. Rodibaugh, New Augusta, R. R. A., farmer; Joseph C. Karie, 2625 Ashland Ave.; Abraham Kammeen, 1058 W. Thirty-Third St., carpenter; John Rush, New Augusta, R. R. A.; Dr. John A. McDonald, 8227 N. Pennsylvania St.; Charles A. Marshall, 2818 N. Capitol Ave. Twelve names also were drawn for service in the regular panel of criminal petit jury. ARTHUR JORDAN IS HOST Entertains 84 Instructors of Two Music Institutions. Eighty-four instructors of the Metropolitan School of Music and the Indiana College of Music and Fine Arts attended a dinner at the Spink-Arms Monday night given by Arthur Jordan, local capitalist, who recently purchased and plans to merge the two institutions. Jordan is a member of the board of directors of Butler University and has donated SI,OOO 000 for construction of Jordan Hall on the new Butler site. The faculty members of both institutions represented highly praised their host for his interest in music and his plan to make the schools among the leaders in musical education in the middle west. Fined for Shooting Squirrels Four squirrels cost Ray Lane, Greenfield farmer, s97.so,'Fred Ehlers, southern division game warden chief, announced today. Lane was fined for shooting squirrels in the closed season with a rifle equipped with a silencer. S j

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THE INDIANAPOLIS TIMES

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