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THE OSHAWA DAILY TIMES, WEDNESDAY, SEPTEMBER 18, 1929 WOTOR ACCESSORY MERGER EXPLAINED § (Qontinued from Page 3) or €ignt years ago. Ever since then I got seven or eight years ago. Ever since then 1 have thought of the day when the plan could be put into ex- ecution, In other words, develop- ments of recent months have been the carrying to a conclusion of plans which have been developed over a long. period. "Mergers represent one of the mo- derni 'and logical trends in the auto- motive industry," Mr, Barnes said. "They are the vehicle by which dif- ferent companies join hands to strengthen their position both. from the "production and merchandising standpoint, and at the same time io put themselves in a position to rend- er more valuable service to their cus- tomers. : "Let us look at the situation in still another light, This is the day of the specialist. The day has arrived when the specialist is highly neces- sary to any line of more commanding position in thc automotive industry cach year. Need of Specialists "Not so many years ago many motor car manulacturcrs were sold on the idea that c¢ventually they shoyld jnanufacture every item that goes into a motor car. From actual working conditions, car makers came to realize that such ideas might sound good in theory, but were not soutd trom the practical point of view. . "While there are fewer car manu- facturcrs today than there were in the earlier days oi the industry, com- petition between the present-day gompanics is intenscly keen, 'they are bidding tor public favor, and the pub- lic today knows its automobiles bet- ter, and appears just as fickle as cv- er about stl¢ changes "What does this bri the car maker face to 1ace necessity for quick model and here is where the comes itl. "By snccialist 1 accessories maker grasp the car makers blems and in turn can develop, short notice, devices that the maker can embody in new models, The Modern Situation "These modern-day situations in the automotive industry simply mean that the manutacturer must be on his toes ail the time. He must be able not only to create mer- chandise that the car maker wants, but also he must be in a position to tool his shops on short notice. The accessories maker must also be able to manufacture devices at a price which would not make it worth while for the car manufacturer to tool up and above all, the accessories comp- any must be recognized for its ab- ility to deliver goods if and where wanted, "To anyone who has been close to the situation over a period of years itis very apparent that the motor car manufacturer has rcached the point where he desires to rely more and more on the specialist for certain of his requirements, He likes to be relicved of the responsibility and expense of engineering and tool- ing up for many of the items neces sary to his car equipment, "This brings us back again to the topic of mergers. It has becn my contention that the grouping of var- ious accessories companies under one management is the ideal way to pro- It brings with the changes, specialist mean the reliable who is quick to individual pro- on car accessories gress, and the increase in business and resultant increase in. earning power of the eight companies con- tained in the Houdaille-Hershey Corp. has convinced me that such reasoning has sound foundation." r. . "Is it your intention to centralize manufacturing of all these divisions in a single factory, and do you con- template purchasing all materials through onc office, and likewise do you propose to merchandise all the lines through a single selling office?" Mr. Barnes was asked. "No, that, it not. my idea. The, Hou- daille-HersBey Corp. functions as the parent company for its various divi- sions. Each company functions as a distinctly separate unit, however, and through the co-ordination and co-op- cration that exists between the vari- ous divisions much common good is accomplished for the benefit of all concerned. "In many respects our set-up is very similar to that of General Mo- tors Corp. whose success is alrealy well-known, both from the stand- point of gain in business and increase in net profit, Diversified Products "We are now selling one or more of our products to every automobile manufacturer in the United States, By having a diversified group of pro- ducts, the potential market ahead of us is bound to be greater than if we were only offering but one or two lines? Why? Because through the sale of some of our products to companies we haye already establish- ed friendly relations. We strive to have harmonious relations with our customers and try to treat the cus tomer fairly and squarely. Once such relations exist it is certain that the introduction of our other products to that manufacturer can be accom- plished more easily than if the custo- mer did not have personal know- ledge of our abilities to deliver on products he is already using from our shops." No Change in Operations Asked if the companies plan to change their merchandising methods, Mr. Barnes stated that they will con- tinue to operate as heretofore, with, of course, full co-operation existing between the various divisions. Mr. Barnes was also queried on the number of dealers there are in the United States who sell products of the corporation direct to the con- sumer, and he replied that there are approximately 70 dealérs and distri- butors who handle the Houdaille shock absorbers. In this connection he stated the corporation is working out aplan of national sales and ser- vice to cover the entire line in the ficld, Details of this plan will be an- nounced later, Commenting on business, he de- clared that during the first six months of the year the sales of the Houdaille-Hershey Corp. ran 45 per cent, ahead of the corresponding pe- iod of last year. He also asserted that the bumper division also enjoyed a very large increase. Indications point to a large incraese being en- joyed during the last half of the year over last year. The corporation has in force all of the contracts it had at the beginning of the year, some of which have been increased, due to greater car-production sched- ules by some of the customers. Be- sides a continuation of all this busi- ness, the corporation has recently clo- sed several imposing contracts with various car makers and has other agreements pending. Steps of Past As related before, the present mer- gers which Mr, Barnes has effected are the cumulation of an idea he had seven or cight years ago. Let us con- Your Own? Hou: - MADE mustard pick- . how proudly you show them to him . . . and with what satisfaction you serve them les!" to your guests! There is a taste and a tang to the home-made kind that you can never buy. Put in just the in- gredients that everybody likes add a touch of KEEN'S fine old English Mustard . . . and you have something dis- tinctively your own, something 'to give added individuality and enjoyment to meals throughout the year. FREE -- Send for a copy of £ it is | } it | } i i i i 1 " - " eo e LL] - - ° | J = If i i ig hist 2 [ - - » " ® Ba TH > {Ls i pill i i 3 » Li i 3% our book listing many recipes for really wonderful pickles and relishes. KEEN'S MUSTARD Aids Digestion , Colman-Keen (Canada) Limited, 1033 Amherst St., Montreal | sulted sider the steps he already has taken and place him up in the front ranks as a s 'maker. ; . In May, 1928, Mr. Barnes took the intiial steps in his plan. He purchas- ed The Oakes Co. Through this pur- chase he acquired valuable basic pa- tent rights, The Oakes Co., which Mr. Barnes previously managed as vice-president of the Martin-Parry Corp., had been organized in 1912 with a capital. of $10,000 and had enjoyed a remark- able growth. ' Friends of Mr, Barnes were still congratulating him upon his pur- chase of The Oakes Co. when he cx- cucuted his sccond surprise by pur- chasing the Mershey Manufacturing Co., makers of the Hershey coinci- dental lock, which locks with one op- eration both the ignition and steer- ing wheel on automobiles. Simultan- eously, Mr, Barnes announced that he and his banking associates had purchased the inventory and physical properties of the Tire Carrier Divi- sion of the Kelvinator Corp. This Tire Carrier Division had formerly been known as the Detroit Carrier & Manufacturing Co, At that time this Tire Carrier Division became a part of the Hershey Corp., which was formed as a holding corporation, but later became a part of the Oakes Di- vision of the Houdaille-Hershey Corp., thus consolidating the tire car- rier business of the Oakes Co. and of the Tire Carrier Division. G Was Remarkable This transaction also involved pat- ent rights of both thesc companies. inthis instance also the companies had started with a modest capital and had grown to be formidable factors in the automobile industry. The Her- shey Manufacturing Co. began busi- ness with $60,000 of invested capital and the Detroit Carrier & Manufac- turing Co. started with $25,000. News of the formation of the Her- shey Corporation was still fresh in the minds of the public when it was an- neunced by Mr. Barnes, on Nov. 16 last year, to be exact, .that he had organized the Houdaille Corp. for the purpose of acquiring the capital stock of the Houde Engincering Co., manufacturers of the Houdaille Double Acting Shock Absorber, which is at the present time install- ed at standard equipment by many of the most important motor car manufacturers in the industry, The Houte Engineering Corporation had been "started with an initial invest- ment of $60,000 and has been built up to its present size and command- ing position in the industry almost entirely from carnings. Purel of Butters Lock This move was soon followed by the purchase by Mr. Barnes of the Lock Division of the Butters Manu- facturing Co. of Atlanta, Ga., manu- facturers of the Butters Automobile Corp., which was originally formed as the holding corporation of The Oak- es Co. Up to this time Mr. Barnes had served and directed as president and under separate corporate identi tics the Oakes Products Corp, the Hershey Corp. and the Houdaille Corp. In January, 1929, Mr. Barnes sub- mitted to stockholders of each of the three separately operated companics a plan to consolidate these compan- ies into the Houdaille-Hershey Corp. This plan was approved by the stock- holders of all companies by an over- whelming vote. Bumper Merger Mr. Barnes appeared to be thriv- ing on action, because in February of 1929 he formed the General Spring Bumper Corp. to acquire. the asscts and business of the C. G. Spring & Bumper. Co. This was folled in turn by the General Spring Bumper Corp. acquiring practically all of thc common stock of the Biflex Prod- ucts Company. This move accomp- lished two things. For a long time the C. G. Spring & Bumper Co. had been engaged in costly patent litiga- tion with the American Chain Co. This litigation indirectly involved cv- ery company in the automobile bum- per industry. It had been the thorn in the side of the industry that re- in upsetting conditions throughout the automobile world. Through Mr: Barnes' efforts this litigation was amicably scttled, and the General Spring Bumper Corp. vas formed with him as president. C. G. Spring & Bumper Corp, which was recognized as the largest producer of automobile bumpers in the world, was organized in 1920 by Christian Girl with an initial capital of $40,000. Biflex Products Co. was recognied as the next largest manu- facturer of bumpers, and the joining of the two companics made the new- ly formed General Spring Bumper Corp. the outstanding factor in its 1g The latest move by Mr. Barnes was the acquisition, through ex- change of stock, of General Spring Bumper as a subsidiary of the Hou- daille-Hershey Corp. Some, idea of the wonderful' show- ing Houdaille-Hershey Corp, has made during its first year in indi- cated in the earnings statement: Net carnings of Houdaille-Hershey Corp. and subsidiaries for the first half of 1929, after all charges, in- cluding provision for Federal taxes, were $2,177,857.27. These do not in- clude net profits for the same period of one subsidiary" which, if added, would increase earnings by approxi- mately $100,000. Based on the exchange of all out- standing class A and class B shares of the General Spring Bumper Corp. for class A and class B shares of the Houdaille-Hershey Corp, net carnings are equivalent, after class A dividends for the period, to $4.05 a share on 469,533 shares of class' B stock. With the addition of the carnings of the subsidiary mentioned above, net earnings would be equi- valent to $4.27 a share. Houdaille-Hershey Corp. has ac- quired the General Spring Bumper Corp. as a. subsidiary through ex- change of stock on a share-for-sharc basis. Stockholders were recently notified that the plan, under which the exchange was made, has been declared operative, . Since Mr. Barnes' rise in the auto- motive industry many people have asked the question, who is he and where did he come trom? Here-again is another absorbing chapter which shows that Mr. Barnes is a man of experience and thoroughly qualified to take his place along with the other leaders of the industry. Claire L. Barnes grew up as a small-town boy in Comstock, Mich, graduated from high school, and went through Kalamazoo College by attending evening classes after hold- ing a man's size job all day. Supersilk Thread Silk Hosiery In a Heavy Ser- vice Weight. Regular $1.48 on sale for $1.00 pr. A beautifully constructed circular knit stocking that will give remarkable wear. A number now discontinued by the makers, Comes in a big range of colors in all sizes, SILK LINGERIE Nightgowns, Step-ins and Bloomers. Regular $1.50 and $1.95 val- Women's Silk and Artsilk Hose "Seconds" from the Puri- tan Maid Mills, Regular 79¢ value. On Sale 3 $1.00 pairs for A real bargain in an excel- lent wearing quality, Buy a few pairs for wear around the house to save your bet- ter hose. Good range of col- ors in all sizes. A new Fall Range of PRINTED SILK SCARFS In the popular 3 corn- er as well as the straight style. Regular $1.50 to $2.00 values, On Sale for $1.00. each. 5... '21 inch Irish Linen Tea Towelling In plain white, and also in red or blue check. On Sale 4 yards fOr LL hin September Dolla Thursday $1.00 Quilted Silk CARRIAGE COVERS Ivory printed centre with border and back in plain pink $1.00 40-inch All-Wool Santoy in a good range of colors. On Sale for $1.00 yard ........n 31-Inch All-Wool Dress Flannels "Reg. 79c¢ on Sale $1.00 2 yards for .. 40 INCH FINE BOT- ANY SERGE. Colors are sand, green, cop- en, navy, black, rose- wood and brown, Reg. $1.50. On $1.00 sale for yd 34 INCH. NATURAL PON- GEE SILK. Pure silk qual- ity. On Sale $1.00 21% yds for .... Bleached Damask BREAK- FAST CLOTH, 52 x 52 in- ches. On Sale $1.00 Trimmed Friday Saturday Its a story crammed full of saving news. That borders on" the sensa- tional. Silknit Petti- Knickers ported Lace at $1.00 There are two styles. One with the skirt all around, the other with skirt in apron style at front and back. Colors are peach, or- chid, mais, nile, sun and coral. Sizes, small, medium, and large Regular $1.49. On Sale. for ith 'Fine Iin- Cream' len 63 GIRLS WHITE "} DRILL MIDDIES Navy collar and cuffs. Sizes 10 to 20 years. On Sale For Plush Auto Cushions Wedge shape. On $1.00 : Sale 2 for 32-In. Check Ginghams | Neat check patterns in a | full range of colors. On | Slere yards $1.0 OF sorieedens a WOMEN'S MERCER- 1ZED BROADCLOTH SMOCKS, blue, rose, green sand and mauve, Sizes 34 to 42. $1 cu . On Sale for. HEMMED PILLOW CASES. In 40 or 42 inch. On Sale 4 36 Inch. Kern MADRAS MUSLIN. 4 Pe : with igolored 36 'inch. Pure Bengal 2 FACTORY .COTTON, = Absolutely "pure. 'On Sale, 6 Yards $1.00 "27 'inch fine WHITE FLAN- NELETTE, On u $1.00 sale 7 yds for 70h asians . CHILDREN'S FLEEG- ED LINED SLEEP- ERS, ip natural color." Sizes 1 to 8 'years. On Sale .. White Cotton Sheets 70 x 90 inches. hemmed ready for use. $1.00 Each 'ieee, +. Fancy Bordered TOWELS in a good ' $1.00 White BATH generous size. FANCY GIFT TOWELS, w-- with colored jacquard ends. kb $1.00 I ONLY LADIES' Knitted Suits Black and white. Size Reg. $8.95. $1. On Sale For .. 2.501. viv 36. Organized Detroit Steel It was in the office of the treasurer of the American Radiator Co., a con- scrvative and efficient corporation, that he lcarned the financial end of the business. Later he assisted in organizing the Detroit Stecl Pro- ducts Co., acting as secretary and sales 'manager for thrce years and lcarned how to build up sales. The company earned 50 per cent on its capital the first vear. During his association with the American Radiator Co. he voluntar- ily shifted from the office to a job assistant to the plant superin- tendent, and there acquired a know- ledge of the practical side of manu- facture. He gained further contact with production through experience as assistant to John N. Willys, of Willys-Overland. Mr, Barnes start- ed the Barnes Foundry & Manufac- turing Co. in 1916, raising its $2,000,- 000 capital entirely through his per- sonal friends. The company never began operations because of the war, but the net profit on the rcal estate enabled it to liquidate at a substan- tial profit to its backers. With this practical background it has been possible for Mr. Barnes, in slightly more than a. year, to accom- piish far more thas he had set out to do seven ycars ago. It is one of the most romantic and interesting stories in the kaleidoscopic automo- bile industry. COMPLEX PROBLEM FOR NAVAL PARLEY Will Have to be Settled Be- fore British-U.S. Pact Be- comes Operative Washington, D.C, Sept. 18.--With British and United States viewpoints on the naval limitation negotiations laid before the world, administration officials seem content to await the forthcoming visit of Premier MacDo- nald before discussing further the Anglo-American agreement in princi- ple on equality of cruiser strength. Whether President Hoover and the British premier will undertake to ad- just the only remaining difference is unknown, but there has been a sugu- gestion that this probably would be left to the five-power conference which will be called for early in Jan- uary. Dispatches from Tokio and conti- nental Europe indicated there would be a series of complex problems to be: settled before the Anglo-American agreement on parity in all categorics of ships could be made operative. The reaction in Paris as represent- cd in newspaper comment to the Bri- tish suggestion that the United Sta- tes and Great Britain were agreed that they could forgo submarines as instruments of war, was given espe- as cial attention here. Since the days of the Washington arms conference, eight years ago, the French have op- posed any limitation on submarine tonnage. This type of ship is regard- ed by France as its chief sea de- fence weapon. The concensus here is that an agreement to abolish this craft is a very remote possibility. Japan May Ask More The suggestion from Tokio that the Japanese would ask for a ratio of 70 per cent. of cruiser strength, instead of the 60 per cent. ratio it accepted at the Washington conference on capital ships and airplane carriers, is a reiteration of the proposition the | Japanese put forward at the 1927 Ge- neva conference. At that time it was the understanding of the United Sta- tes delegation that when it came time to revise the Washington treaty, Ja- pan would ask for an increased ratio in battleships and plane carriers. Unofficial opinions have been ex- pressed that so far as cruisers arc concerned there probably would. be little resistance to an increase in the ratio for Japan, but an agreement on the division between 8-inch gun and 6-inch gun cruisers might present a rather complex problem. GHOSTLY VISITOR SCARES FAMILIES Front Door Burst Open in, the Night--Mysterious Noises London. -- Little Irchester, near here, has developed a ghost complex. The occupants of one house in Mil- ton street have been'so alarmed by mysterious noises in the night that they want to find fresh accommoda- tion. ¢ One family, Mr. and Mrs. E. Rog- ers, who with their baby, lodge at the house have decided to leave. They are going to Felixstowe to be far away. " ; Mr. and Mrs. Townsend and their three 'children, the other occupants of the house, would leave if there was anywhere clse for them to go. They complain of hearing footsteps on the stairs when they are all in bed, and locked doors rattling, of locked doors bursting open, wet foot- marks where nobody has walked, grease 'spots in fresh 'paint, 'and su- per-natural' cties 'and: rushing foot- steps from a passage: Sod The ghostly visits started a' 'fort- night "ago; and ' continued' mearly every night since then. While these hoises coritifiue noth- ing unusual is seen. The people: of the house are terrified. They arc afraid to go to bed. During one terrible night the un- known presence did all it could to disturb the two families. Finally: the front door was burst open. The whole village is alarmed. Mr. Rogers thinks the invasion is cannection with making to cstablish iderable {fortunc, ites back to Hugue- not refugees who fled from Fra to England to escape rdigious perse- cutions in the 160th eentury probably in thot h right to. a cor origin of which. nce Two Shot = After Bolting Mile Down Main Road London.-~Four horses' degwing: an Army general, serviee wagon bolted at Bordon. All four crashed car and injufcd "three wémen 'in They were then shot. The horses took fright while graz- ing on the common and dashed down the main road for a mile. The wa- gon was broken up on the way. The horses first crashed into a motorcycle combination 'helonging to Mr. Henry George: Smith, a Post into a motor cycle it a claim | ARMY HORSES LEAP APPROACHING AUTO Office tclegraph inspector, 'of Shal-| ord, Surrey, who was repairing it. Mr. Smith jumped clear, but his machine was smashed. Two of the horses stopped, but the other two raced on, and meeting a motor car, jumped over it, The driver. of the car, Miss Violet Charlesworth, of Woodend Cottage, Pine Ridge, Farnham, and two wo- men passengers cscaped with slight injuries but the wind screen 'and steering wheel of the cars were smashed. ~The horses were eventually stopped further along the road. They were badly injured and had to be shot. CONVENTIONS ARE BEING PLANNED (Continued from page:1) week, it is expected. A. complete campaign itinerary for the Liberal leader, W. E. N, Sinclair, of this city, is also being prepared and will be issued within a few 'days. Mr. Sinclair is already booked to speak in. Elmvale, in Simcoe county, to- night; in Orono, in Durham county, pid Rt. Hon. Winston Churchill, Chancellor of the Exchequer in the Baldwin administration, caught by the photographer in a moment of relaxation at the Banff Springs Statesman Relaxes WMI EADY Hotel in the Canadian Rockies dur. . ing his recent tour of the Domin- ion. He was accompanied on his tour by his son, Randolph; his nephew, John, and his brother, Major Churchill. on Monday, Sept. 23, at 2:30 o'- clock; at the South Ontario Liberal convention on Tuesday, Sept.:2%; in Peterboro on Sept. 26; and at the Northumberland county con- vention in Warkworth, at a date not yet definitely arranged. Conservative Peossibilities No indications could be securea from Conservatives with any of the prominent Conservatives of this riding today, as to the men whose names would be placed before the riding conventian, to be selected as a candidate to eppose Mr. Sinclair in this riding. Speculation hag been rife, .and several names have heen mentioned, prominent among them being the name of R. D. Preston, for three years mayor of Oshawa and this vear an Alderman. When questioned by 'The Times this morning as to whether he would al- low his name to go before the con- vention, Mr. Preston declined' to make any comment, whatever. The name of Frank L., Mason has also been mentioned, But he was out of the city today and could not he reached. Children nowadays are said to grow taller than their parents. They probably get a good start in early years trying to reach their mother's skirts.--Montreal Star. For Your Health With the health of yourself, or of some member of your family, dependant upon a physician's prescription 'thére is comfort in the as-"' surance that the prescrip- tion has been prepared by a skilled pharmacist, thor- oughly conscientious in his professional duty. ; That assurance is a recog nized part of our service, We regard the work of fill. ing a prescription as a com- | I panion professional service * with that of the physician who writes it. Let us serve you. Karn's Drug Store The Family Drug Store with - the Lowest Prices, Phone 378 -- Next the I". O. HAWA, ONT.