The Crittenden Automotive Library

Topic: Lincoln

OFFER $8,000,000 FOR LINCOLN MOTORS

Publication: The New York Times
Date: 1 January 1922

Group Headed by Lelands Makes Bid in Detroit Federal Court.

SALE SET FOR FEBRUARY 4

Representative James Willing to Start Inquiry Into $4,000,000 Overassessment of Company for Taxes.

Special to The New York Times.

DETROIT, Dec. 31.—An offer of $8,000,000 for the property, good-will and franchise of the Lincoln Motor Company was made in the Federal Court here this afternoon by a group of capitalists.

Their representative, Harold P. Emmons at first offered $5,000,000 on condition that the sale should be held not later than Jan. 24. But this caused such a storm among attorneys representing different classes of shareholders and creditors that Judge Tittle decided to fix the upset price at $8,000,000.

Mr. Emmons immediately raised his bid to that amount. The group he represented, he said, was headed by Henry M. Leland and his son, Wilfred C. Leland.

Henry M. Campbell objected to acceptance of the first offer, saying it would pay only half of the debt and wipe out the shareholders of the A and B classes. The Government had claimed about $4,500,000 in taxes, but had largely reduced its claim and, it was said, would now accept $500,000. He protested against the sale without notice or any showing as to the coalition of the company.

Leo M. Bulseel contended that $5,000,000 would pay only about 22 cents on the dollar to the creditors. He estimated liabilities at $9,000,000 and when preferred creditors were paid there would remain only about $2,000,000 to pay the remainder. He also objected to the sale on Jan. 24, on the ground that it would not permit the five weeks' advertising required by law.

Mr. Emmons said the most valuable asset was the sales organization. On account of its difficulties this organization was in danger of breaking up, and many of the members would be bankrupt in a month. Judge Tuttle fixed Feb. 4 as the date for the sale.

Several Michigan Congressmen are said to be bitter against the Internal Revenue Department for the blunder committed by that body in taxing the Lincoln Company $4,500,000 instead of $500,000. Representative W. Frank James of Hancock has written to Mr. Leland, head of the Lincoln Motor Company, expressing his willingness to start an inquiry in Congress into the action of the Internal Revenue Department. Similar mistakes may have occurred in assessing other large corporations, according to Mr. James.