| Show I. I Report of Stockholders Stockholders' Committee From Co r do on the I IP f f c i I P i f. f 1 fb itI 4 7 4 I II t I OF SAINT MINNESOTA A J the various charges of a. a most serious nature involving the integrity honesty and Pan Motor Company originating with the report of the Capital Issues Co Committee to tress ress under date of December 2nd 1918 also the letter of Henry C. C Flower of said commit- commit i repeated and enlarged upon in letters by Congressman Edward T. T Taylor of the Fourth of Colorado and by him transmitted to various newspapers in Colorado which published Raether with comments thereon in a manner detrimental tal to the further progress of the said for tor r Company meetings of the stockholders and subscribers to stock in said Company were Montrose and Grand Junction Colorado The purpose of these meetings was to discuss the with the view to selecting representative men from each district to proceed to St. St Cloud Clo d ita ta t at the earliest possible date and ma matte mate e a th thorough rough examination into the affairs of the thenor nor tor tor Company They were requested by the stockholders to make report of their findings ri air return to a meeting of the stockholders and subscribers and in addition cause the same J PERSONNEL OF COMMITTEE i im In m Montrose Otto OUo R. R Becker blacksmith and farmer Clarence Williams farm farmer and J. J G. G I gent t Denver Rio Grande Railroad and nd former mayor of Montrose were were selected m Grand Junction S. S C. C Hoel Ross Hoel-Ross Business of m president College C C. C P. P Blackwell id fa Junction Motor Sales Company and C. C E. E Adams editor Grand Junction Daily News and ande e e. e Daily Press were named th the exception of J. J G. G Miller on December the named above-named men left for Saint J caching there December E r p rp COMPANY SAINT CLOUD L MINNESOTA SE SHEET NOVEMBER 1918 I ASSETS ENT- ENT I arid j d and in in Banks is 5 COO C CO It e osis si s with Manufacturers b Ss Suspense pense y 0 g.- g. v- v VH Pi ess fe f ED- ED t JED Cars i I Ia J r a G k Cars tal al I Tractors 4 ta ta Patterns pr ess SS U Undisturbed e siL Prints rl E Etc tc C Car ar 48 35 Y f r iJ prints Etc Tractor Tractor 0 g s. s v i A jt o 4 J t J f t J 8 and Fixtures 1 8 r K H i e J V d 5 System J Jl Tent rand t nd Truck W fend and Equipment R o oAL AI AL AL- ALSTOCK STOCK STOCK- 1 Accounts Receivable De- De Payments on Capital Stock process process of collection Intangible Assets I LIABILITIES Payable 1 f Autos Autos Cars n Cars sire Lire Loss ack JCk ck Subscribed t ta new contract agreed upon between Mr State Securities Commission last June when Lio to sell stock in in Minnesota was continued the entire on received by Mr for acting as president eager nager etc of the company is five per cent upon all Ii OF STRUCTURES f particular attention to the balance sheet above it tE that the buildings cost They hey consist awing owing C Ground round Area Contents t 9 g Square Feet Cubic Feet talo Shop Shop pry 52 6 j- j r House ass se 0 2520 ver Ner Nei 1024 Gal House House t e e. e e 1650 Ice ti 2048 2043 t 1168 e e buse ouse t IN CONSTRUCTION Idin's are constructed of reinforced concrete tile e glass etc most thorough and substantial in in every respect affording the greatest possible The idea of f the present buildings i is is sall s all form a part or unit of a gigantic structure Ir irately to cover practically all of the 47 acres of owns In other words they are the latest for a great manufacturing plant designed men en and engineers to be found in the automobile I the he machinery that is placed and being placed in inU U 11 j to be the last word in efficiency In machinery When we tell you that the main factory building is is' 70 feet and covers a ground area of square v I be able to comprehend the magnitude of one of this his proposed great plant I f COST COST OF MACHINERY to J the machinery cost of the committee committee- any lany invoices for machines and noted some that cost to Machines are arriving constantly rig ng ing machi machines es having just been placed in the drop i ing ig g a few days before the committees committee's visit which 1 1 t tons each Upon orders placed place some some time ago agop agoto agoto to p machines are now arriving nearly every cording to the Company's records on on orders recently then ither machinery and tool equipment the company has hasie hasie ie ie sum of a t. r-t. E FORTY FIVE FIVE CARS CARS' NOW ON HAND In the assembling building the committee counted forty-five forty of the 1913 Pan cars all completed ready for the sales department Machinery is now being rec received ived for the assembling plant which is is in in the main building Everything will be so arranged that the chassis of the car will be mounted on a traveling conveyor and run from end to end of the factory and each part assembled until the car is driven off completed Mr L. L R. R Brown the manager of manufacturing stated that by June 1st the Company would be producing at least ten cars cars daily of the 1919 model and with the plant finished as ultimately intended the production will bl be from to cars daily The die plant is is a large building which is filled with all kinds of the heaviest arid and best machinery Here every part in connection with the making of automobiles tractors or almost anything else can be executed with the latest machinery available The dies are now being made for the Pan car and consist of the model cut out of heavy steel blocks from which to ta parts can be manufactured without reconstructing the tho die The plan is is to manufacture every part of the Pan product in in its own factory WORKING ON CONTRACTS I At the time of the committees committee's visit to the drop forge plant and the die shop the workmen were engaged in turning out connecting rods for the Buda Motor Company pounding out of steel rods with the immense two two ton ton hammers Seven hammers are now in operation and it might be well to add here that two six ton six ton hammers had been ordered and will v shortly be shipped which will strike a blow of of pounds pound t each Five other hammers are on the road between Chicago and Saint Cloud three having arrived while the committee was in in St. St Cloud An order for hammock hooks galvanized chain plates three-inch three pad hocks inch I foot rail stanchions and guard line stanchion heads for the U U. U S. S Navy Department was being executed and large piles of the hooks were on the floor A newly patented combination hoe rake and cultivator three tools in one was being manufactured in quantities this order coming from the thel Manufacturing Company Other contracts upon which the Company is now working are Emerson Emerson-Brantingham Co rods Chevrolet Motor Company clutch forks connecting rod forgings connecting rod forgings and cam shaft forgings Winther Motor Truck Company model steering arms arms Pan Motor Company 90 service vice brake cam shaft levers 30 universal joint flanger axle ends 30 lower tire carrier brackets 60 transmission gear shifter forks 60 service brake levers 30 fan shaft levers 30 emergency brake cam shaft levers 30 fly wheel nuts 30 emergency brake cams cams- 30 20 pedals 60 tie rod yokes 60 brake tube brackets 60 compartment tank strap ends valve rocker arms rocker arm yokes 60 rear spring brackets 30 tail lamp brackets 60 pedal pads 30 steering knuckles R. R H. H 30 steering knuckles L L. L H. H 30 clutch throw-out throw yokes 30 clutch pedal arms 30 brake pedal arms 30 gear shifter levers 30 front spring brackets 60 front spring horns 30 right hand steering arms connecting rods 30 emergency brake levers 30 crank shaft counter weights eights 60 rear spring horns 30 service brake cam shafts 60 rear rear axle shafts 30 transmission universal joint flanges 30 service brake cam shafts 30 emergency brake spiders 30 tire carrier brackets L L. H. H 30 tire carrier brackets R. R H. H 30 left hand steering arms 30 crank hafts shafts 30 front axle I beams 30 emergency brake cams 30 steering post bracket studs 5 crank shafts for tractor tongs CAN PRODUCE ANYTHING The articles of incorporation of the Company permit it to engage in the manufacture of anything in the machinery line possible to conceive so broad are the powers conferred so h t the Company can develop other lines than the automobile as asby by- by by productions One thing the committee noted with particular satisfaction i was the fact that in in one corner of the main building a wood woodworking woodworking woodworking working shop has been installed which is now engaged in in manufacturing all the desks tables and filing cabinets used in inthe I Ithe the offices This This machinery machinery will be used later in the making of car car bodies MONEY IN THE BANK The committee ascertained from Mr C. C D. D Schwab Treasurer of the Company that the deposits of cash in the Saint Cloud banks at the time of the visit December were yvere TESTING THE 1919 PAN Th The committee examined in in detail the new 1919 Pan car it having just returned from a trip to Minneapolis For the last six months this car has been driven almost constantly between these two cities by the designer of the car Mr Victor Gauvreau chief automobile designing engineer The distance is 75 miles which he has driven numerous times in 1 hour and 55 minutes In a statement to the committee Mr Gauvreau said that he was trying his best to break the car or find the find the weak places in it for the purpose of improvement The 1919 motor develops 49 7 10 H. H P. P on a Sprague dynamometer test and is lighter than any motor of equal H H. H P. P yet manufactured The new car has the folding front seat for using it as a Pullman bed It weighs 2300 Ibs lbs fully equipped The springs on front and rear are semi semi elliptic elliptic and make the car very easy riding It looks all that the Company claims claims' for it TRACTOR BEING DESIGNED The committee also examined the designs for the new tractor it is proposed to put on the market the first one to be in operation for experimental pur purposes oses early the coming spring This tractor will be a wheel four-wheel machine with all parts easily accessible The H. H P. P is is 12 to 20 The bore and stroke of the motor are 4 inches In ordinary ground it is expected ed to draw three plows This tractor will be on the market for next falls fall's plowing CONCLUSIONS This committee finds that the location of the Pan Motor Company for a successful enterprise is ideal The iron mines are at its door the largest open pit mine in the tho world being within miles The timber is closely accessible At Duluth miles distant is found one of the great steel mills of the United States Steel Corporation reached by ample railroad connections In order to be able to secure secure steel and iron at a cheaper price representations are now being made to secure secure a Duluth basic rating upon all shipments from the Duluth mills to the Northwest territory instead of the Pittsburg basic rating that now prevails When this rating is obtained the Pan Motor tt Upon the arrival of the two committees at at ai Colorado Springs they were joined by G. G E. E Lynch a retired stockman and W. W T. T Kennedy one of the heaviest stockholders of the Pan Motor Company Comp Company Com Com- p pany pany ny in Colorado Arriving at Saint Clo Cloud d the committee went vent to the office of the Pan Motor Company and met Mr S. S C. C the president He conducted the Committee ommittee on a hurried trip of inspection over ih the entire plant introducing the members to o the various departmental heads who were instructed at atthe atthe atthe the same time by Mr to show the committee everything about the plant to give any and andall andall andall all information requested to furnish all data desired data desired g give ve access to all books papers invoices and stock books cash on hand and in bank and statements showing indebtedness if any of the com- com pan pant at the present time ACCOUNTING DEPARTMENT The following morning the committee went immediately to the plant and took up matters in connection with the accounting department with Mr John Barritt secretary of the Pan Motor Com Com- pany Mr Barritt has installed a very simple accurate te comprehensive saving labor-saving accounting department department department de de- giving complete detailed information of the business of the company and plant The bookkeeping bookkeeping bookkeeping book book- keeping meth methods ds are modern and everything is so arranged that this department is carried on at a minimum expense with thirty five This department occupies the northeast corner comer of the main building and the equipment in desks desk typewriters writ rs etc is complete and built for permanency From a certified trial balance sheet of the standing of the company November 1918 the following was disclosed 0 Company will have have- effected a large saving in the cost of its raw materials The lo location is also most favorable for the m marketing of the Pan Motor Company products Saint Cloud being eing on th the main lin line lino of two trans continental railroads Water route to the Atlantic ocean is furnished through Lake Superior Only miles distant at Duluth To 10 the Gulf Ports the Mississippi river furnishes another water route routes as it flows through paint Saint Cloud and is navigable beyond Minneapolis 75 miles distant t. t FACTS REGARDING STOCK ISSUES ISSUES' The financial condition of the Pan Motor Company is excellent On January 1 1919 the committee found that the Company had cash on hand and in in the bank Money is being received from new subscriptions for stock and as payments on old subscriptions at t an average of daily On December there had lied been subscribed shares of stock representing a value of Of this amount on capital stock alone remains yet to be paid by the subscribers In addition t to tp l the above amount being still owed by subscriptions on the capital stock there also remains a substantial sum to be he paid on the surplus In order to explain h how w the 1000 for each share of stock is applied which means commissions to agents of 20 per cent salaries of president and secretary departments advertising and sales departments foreign correspondence department and postoffice and all other things not chargeable to manufacture building material an and l equipment The number of thus paid is over TOO fOO Under the new contract which wen went into effect June 1 1918 there ther may b by be considerable saved in in surplus on en account of tock stock to or 01 after that date and by the time th the stock lock stockis is is' all sold it is reasonable to assume Company will havo between and of net assets with an outstanding capital stock of only The second is applied to capital sto stock k which includes material and 2nd equipment represented in tangible assets such as buildings machinery etc The number of throughout the Pan Motor Company plant is from to and the daily payroll is is about I Thus Thus the the organization of the Pan Motor Company is different from many concerns in that it specifies the exact distribution of all moneys from sale of stock But 50 per cent can be used for organization purposes and the other 50 per cent must be beheld beheld beheld held intact for material and equipment By Oy this method the subscriber knows in advance just what may be done with the money h he P pays lYS for his stock PERSONNEL OF PAN MOTOR COMPANY Next in importance is the men behind the thc concern upon whose acts and ability depends its success or failure After looking into the indorsements and accomplishments of the men working in Und and with the Pan Motor Company the committee is convinced that one of the best possible organizations of men of big brains and capacity now to be had in the tile United States is represented in in- inthe the personnel of the Pan Motor Company These men are those who have ben been part and |
