HUPP MOTOR GETS CHANDLER CONTROL Publication: The New York Times Dateline: Cleveland, Ohio Date: 24 November 1928 Topics: Hupmobile, Chandler

CLEVELAND, OHIO, Nov. 23.—The Hupp Motor Car Corporation of Detroit has acquired stock control of the Chandler-Cleveland Motors Corporation. A consolidation of the two automobile companies, which will result in a $130,000,000 concern, will be announced in the near future, it is understood.

William C. Durant, founder and twice president of the General Motors Corporation, has been named in persistent rumors as the man who stands behind the proposed consolidation. Identity of the interests which have purchased Chandler control, however, could not be learned tonight, except that they are “closely affiliated with the Hupp Motor.”

It had been reported that Durant, attempting to form another large motor combine, had obtained control of Hupmobile. He also is said to have sought to purchase the Peerless and Jordan plants, which he visited here several months ago. There was no definite information tonight, however, that Chandler had passed into control of Durant.

The Chandler-Regar interests have remained large holders of Chandler-Cleveland stock, but it has been reported recently that a price had been placed on their holdings. A. B. Rinehart of Akron, another large holder, has been reported willing to sell.

Fred C. Chandler is away from Cleveland at present on a tour of Europe, and Samuel Regar, treasurer of the company, is out of the city. Sid Black, vice president in charge of sales, also was said to be out of town. In their absence no other official of the company tonight would comment on the purchase by Hupp.

Control of the Chandler-Cleveland Motors Corporation has been purchased by the Van Swearingen interests, it was reported in Wall Street yesterday. Conversations toward a merger with the Hupp Motor Corporation have been in progress for some time. More than 60 per cent of Chander-Cleveland stock is understood to have been purchased in the open market over a period of several months.

At the present time there are outstanding 350,000 shares of Chandler-Cleveland preference stock and 280,000 shares of common. Both issues carry voting privileges. It is reported that negotiations with large minority interests for their holdings are pending. Such a merger would result in distinct benefits, particularly from consolidation of dealer distribution, in which Chandler-Cleveland is understood to be strong while Hupp is not so well equipped.

The company operates two plants in Cleveland, turning out a complete line of eight and six-cylinder cars, while the Hupp factories are located at Detroit and Jackson, Mich., and Windsor, Ont.