Show Maxwell Co Leases Chalmers Plant Of Official fici l News Reaches Salt 3 ah L Lake ak e I The lease of the Chalmers' Chalmers 3 Motor co company pany for a term of five years by byS bythe bythe S the Maxwell Motor company Inc was consummated last week and Walter Valter E. E Flanders president preside t of the Maxwell b became became be be- came head of the joint enterprise RatIfication Ratification Ratification Rat Rat- of the the proposed arrangement which has been under discussion for a number of weeks was finally secured through approval of the Chalmers stockholders at their meeting September Septem Septem- ber her 10 whiLe the actual transfer took I place at a meeting of the Maxwell como company com corn o pany on the following day days Both meetings meetings meetings meet meet- ings were held fn rn New York York President Flanders himself being present to su supervise supervise supervise su- su the perfecting of the the unique project This Information is contained in a letter received by Sales Manager J J. O. O Gates of the Sun Motor Sales company distributors of Maxwell cars Under the plan Chalmers stockholders ers era will have an opportunity to subscribe subscribe sub sub- scribe to the Issue of C G sUb sUb-I per percent percent percent cent five year gold notes receiving one share of 8 per cent preferred stock for every share of present stock to the ex extent extent ex- ex tent of one-half one their present holdings I Under the new plan there will be outstanding outstanding outstanding out out- standing shares of stock of no par value and shares of the 8 per cent preferred of par value Instead of the present capitalization of shares of no par value The new note issue is secured by a first mortgage mortgage mortgage mort mort- gage on the plant and assets of the company The stockholders are to be offered of the notes includIng including including ing the syndicate stock subscribers paying an amount equivalent to 10 for each share of present stock owned by th them m and receiving an additional quarter one-quarter of the the- par no-par stock for each 10 cash subscription At the same time an arrangement with t the e creditors of the Chalmers Chalmers- company has been made which it ls believed will be satisfactory to them While details of the operating plan ha have ve not yet been completely discussed it is indicated that they will be substantially substantially substantially sub sub- I along the lines already in in- in This means mE-ans that the Chalmers property property will be operated by the Maxwell Maxwell Maxwell Max Max- well as lessee under a revised form of management Both Chalmers and Maxwell Maxwell Max Max- well lines are to be continued full protection protection protection pro pro- of the dealers with respect to parts and other business details being fully assured In many ways the arrangement is one of the most original yet accomplished by this most original of of industries Leasing of Industrial properties while not unknown has been rare being confined confined confined con con- fined principally to traction and railroad railroad railroad rail rail- road activities In this case however pitfalls encountered in the past where i such moves have been undertaken have been avoided by the guaranteeing to the Chalmers stockholders of ofa a percentage percentage percentage per per- of the profits rather than a stated dividend allowance By this means the lessee has opportunity to earn extra rewards for highly successful success success- ful and forceful activity in conducting the joint enterprise while should the undertaking be handicapped by business business business busi busi- ness depression protraction of the war or other unforeseen contingencies it will not be loaded down with overheads likely to form fonn a profit absorbing burden burden bur bur- den Both concerns being long established I independent of trade affiliations and with splendid reputations for enterprise enterprise enterprise enter enter- prise and productive ability it naturally naturally naturally ally follows that the combination has its advantages also from the marketing standpoint That Maxwell and Chalmers Chalmers Chalmers Chal Chal- mers lines are and actually actually actually act act- work together very nicely Is of course one of the most favorable ele elements elements ele- ele I elc-I ments of the new arrangement I |