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Show Report of Stockholders Committee From Colorado on the of Saint Cloud, Minnesota J thii W S. thfkboldS aid Denver & Sl there C p 7, d . UpnbUthS PERSONNEL 0? COMMITTEE. black8mith and farner; Clarence Williams, farmer, and J. G, Miller, agent former mayor of Mon'rose, were selected. oel Presidnt Hoel-Ris- s Business CoUege; C. P. Blackwell of the Grand JuncE- Adamsdltor Grand Juiction Daily News and Montrose Daily Press, were - - MmCr ( 0D December 2Jth 813.43 82,801.98 V 484,603. a DEFERRED Coal $ Experimental Cars Experimental Tractors Experimental Patterns reigbt, Express (Undisturbed) Insurance License Fees Plans, Blue Prints, etc. Plana Blue Prints, etc. Patents 21,244.30 18,514.14 8,694.46 2,457.28 23,113.77 9,389 . 87 45.00 48,736.11 Car Tractor 6,379.71 377.25 208 . 49 Suspense 137.060.38 ' FIXED Furniture and Fixtures Patterns Tools Real Estate Water Works System Tard Equipment Service Cars and Truck Buildings Machinery and Equipment CAPITAL STOCK Hotes and Accounts Receivable (Deferred Payments on Capital Stock Sales in Process of Collection)... (1,674.932. 72 Good Will (Intangible Assets) 2,654,930.31 Total Assets six-to- iy-lnc- $6,073,344.42 LIABILITIES. Accounts Payable War Tax (Autos) Deposits on Cars Suspense (Fire Loss) Capital Stock Subscribed Surplus ( Total Under the new contract agreed upon between Mr. Pandolfo and the Minnesota State Securities Commission last June, when the license to sell stock in Minnesota was continued, the entire compensation received by Mr. Pandolfo for acting as president, general manager, etc., of the company, is five per cent upon all stock sold. - MAGNITUDE OF STRUCTURES. following: Ground Building Experimental Blacksmith Shop Mam Factory Contents House Tower h e PERSONNEL OF PAN MOTOR COMPANY, CAN PRODUCE. ANYTHING. of incorporation of the Company permit it to engage in the manufacture of anything In the machinery line possible to conceive, so broad ar the power conferred, so that the Comnotions. pany can develop other lines than the automobile as pne thing the committee noted with particular satisfaction was the fact that in one comer of the main building a wood working shop has been installed, which la now engaged in manufacturing all the desks, tables and filing cabinets used in the offices. This machinery will be used later In the making of car bodies. ' Power House 4,740 31,400 10,708 048 8.460 Heat Treat Laboratory Large Warehouse I1 MONEY IN THE BANK. 211,902 The committee ascertained from Mr. C. D. Schwab, Treasurer ef the Company, that the deposits of cash In the St. Cloud banks at the time of the visit, December 30, were (90,971.68. 22,080 . . PERMANENCE IN CONSTRUCTION. These buildings are constructed of reinforced concrete, tile, brick, wire glass, etc., most thorough and substantial in character, modern in every respect, affording the greatest amount of light shall form possible. The idea of the present buildings is that they a part or unit of a gigantic structure, which is ultimately to cover acres of land the Company owns. In practically all of the 47 other words, they are the latest type of construction for a great men and engineers to be manufacturing plant, designed by the best the and machinery that is placed found in the automobile world, and being placed in them is said to be the last word in efficiency in machinery production. When we tell you that the main factory area of 105,740 building is 648 feet by 170 feet sad covers a ground of one the magnitude square feet, you will be able to comprehend of the unit of this proposed gret plant COST OF MACHINERY. MilM In regard totte' machinery cost of 57.7247. the some that wet examined many invoices for machines and noted from $11,654.00 to $40,000.00. Machines two upsetting machine, having just beeh placed "rg? which building a few days before the committees riirtt, 49 tons each. Upon order placed tome time ago amounting TWT (115,000.00, machines are now arriving nearly order on records,, cording to the Companys other machinery and tool equipment,,, the company ' f Use sum of (121,261.00. pJfL! t. TESTING FOR lg.19 PAN. examined in detail the new 1919 Pan ear, H For the last six Minneapolis. having Just returned from a trip to months this car baa been driven almost constantly between these, two titles by the designer of the car, Mr, Victor Oanvreau. chief antoraobilr designing engineer. The distance la 75 miles, which he has driven numerous times in 1 hour and 66 minutes. In a statement to the committee. Mr. Oaurrean said that he was trying bis best to break the car or find the weak place in ft, for the purpose of improvement. H. F. on a Sprague dynamomThe 1919 motor develop 49 eter teet and is tighter than aoy motor of equal H. P. yet manu-as factured. The new car has the folding front seat for using it a Pullman bod. It weighs 2300 pounds, fully equipped.carThe spring very eaey on front and rear are semi elliptic and make the riding. It looks all that the Company claims for It. The committee e; 0 -- TRACTOR BEING DESIGNED. The raramtttee also examined the designs for the new tractor It is proposed to put on the market, the first pne to be in operation for experimental purpose early the coming spring. Til tractor l machine, with all parte easUy accessible. The will be a H. F la 12 to 20. The bore pad stroke of the motor are 41 jX6 lnchss. In ordinary ground it is exported to drew three plow. This tractor will be on the market for next faUs plowing. , , four-whee- CONCLUSIONS. that the location of the Pan Motor find This committee The iron mines are Company for a successful enterprise is Ideal. being within 200 at Its door, the largest open pit mine in the world timber is closely accessible. At Duluth. 150 miles dis Ujgg, e e Next in Importance are the men behind the concern upon whose acts and ability depends its. success or failure. After looking into the indorsements and accomplishments of the men working tn and with the Pan Motor Oompany. tb committee la convinced that one of the best nosslble organisations of men of big brains snd rapacity new to be had in tha United States is represented in the personnel of the Pan Motor Company. These men ar those who hay been part and parcel of the largest automobile manufacturing lnstitutiong in America; man who hay been largely instmmertal in the success of these establishments; men who hay taken the beet in brain and equipment from these successful plant and concentrated them within the Pan Motor Company. Mr. ,8. C. Pandolfo. the president and promoter of the Company. bgs thus been able to surround himself with a working organisation second to non, showing his great capacity and foresight and tils ability te recognize that success depends wholly upon to form on great, ylrll stream wherethe ability ipf his in flow the concentrated brains and energies of men who bav demonstrated that they were on hundred per cent efficient. Mr. Pandolfo, m man of dynamic force and power, a man of wonderful capacity fog work himself, a man who presses on with ultimate and undaunted confidence, even in the face ef distressing obstacles, stands at the head of this organization. His ar among tb following: F. Ladner, vice president. Pt. Cloud; president Charles xT. "'Charles Ladner Hardware Co St. Cloud: Retail Hdw. Merchants' Fir Insurance and Hall Hardware Co., Minneapolis: vie president 8t. Cloud Iron Works and Miner Theater Co., St. Cloud; director Se entity State bank and Commercial dub, St. Cloud. John Barritt, secretary, St. Cloud: specialized in higher accounting la England as well as in this country; educated, experienced, clean-cuChaa. D. Schwab, treasurer, Bt. Cloud. President Farmers State bank, 8t. Cloud: president First State bank. Clear Lake; president Farmers Loan A Investment Co., St. Cloud. Hugh Even, director. Bt. Cloud. President of large wholesale firm in central Minnesota. Fred SchllpUn, director, 8t. Cloud. Postmaster of St. Cloud Secretary and treasurer Dally Time of Bt, Cloud. Geo. E. Hacecotn. director, Bt. Cloud. President Merchants National bank, St. Cloud; president First State bank, Stewart-rtllrice president of several banks. Charles Bunnell, director, St. Cloud. Business and atock man. P. R. Thielman, director, Bt. Cloud. Secretary and treasurer Farmers Loam A Investment Co.; scientific and successful stock farmer and land owner. Geo. Heldman, director, Chicago; patent attorney. Norman A, Street, director, Chicago: corporation lawyer. L. R. Brown, St. Cloud, manager of manufacturing. Exhaustive experience ia practicallv every branch of motor industry: special sales manager Seager Engine Work; superintendent leeway Motor Co.; general superintendent and assistant factory manager Duplex Truck Co.; general superintendent and assistant factory manager Republic Truck Co, where production waa tripled in one year; supervisor of production ordnance department for U. S. Government, Detroit district. Victor Oanvreao. St Cloud: chief sutomobil engi neer. Graduate Fortier Technical High School and designing Art et Metiers Technical College, France; member engineering staff Peugeot Mercer, Chevrolet and Weston-Met- t Motor companies; research engineer Bulck; designer Dodge Motor; designer and builder Frou tenae racer. A. Xrteg, Bt Cloud; chief tractor designing Graduate mechanical engineer; chief engineer tractor engineer. work Co. and Fawcns Machine Co. R-- A- - DeVlieg, St Cloud; method engineer. Tool maker Old Motor Company; tool maker and mechanic Burroughs Adding Ma SUBSTANTIAL BUILDINGS. The committee finds that the buildings constructed and under construction ar of the moat permanent and substantial nature, and that the machinery la massive and said to be the last word in construction: that the plant is so arranged as to accomplish the largest results with tb minimum expense in production; that everything la designed to bring about such result. e, stock sales subsequent to or after that date, and by the time the stock is all told it it reasonable to assume that the Company will htvs between (6.000.000.00 and (6,500.000.00 of net assets, with an outstanding capital stock of only (5,000,000.00. - The second (5.00 ia applied to capital stock, which includes material and equipment represented in tangible assets, such as buildings, machinery etc. The number of employees throughout the Pan Motor Comnany plant ia from 319 to 343, and the dally pay roll ia about (1500.00. Tho the organisation of the Pan Motor Oompany is different from many concerns in that it specifies-thexact distribution of all moneys from tale of stock. But 50 per cent can be used for organisation purposes and the other 60 per cent most be held intact for material and equipment. By this method the subscriber knows In advance just what may be don with the money he pays for his stock. by-pro- d Drop Forge Die Shop Oil Storage Forge Office Totals n The articles Power House walls of tho building tomorrow, the completed structure. Tbit is but the natural evolution of a plant that seems destined to lead the world in automobile construction. As Mr. Schwab, the treasThe Pen Motor Company has urer. stated to tha committee: passed beyond the experimental stags It is now a reality. No on can success. All the efforts now being earth power prevent Its mad against it will doubtless slow up ita progress, but It will go ahead. Tb men of St. Cloud, If no other, will put it over. It cannot fall. It la the purpose of the officers of the Pan Motor Company to protect the interests of every stockholder, This expresses the determination of the people of Bt. Cloud, with whom the committee has talked, and it has discussed the Pan Motor Company with many dtlsens during the stay. post-offic- left-ban- 7,692 604 155,740 6.286 3.000 Warehouse (Loading Platform Main Pump Water Forge Ana FACTS REGARDING BTOCK ISSUES. GROWTH VERY RAPID. The committee finds that any statement as to the actual status of the plant today will not represent it ee it appears tomorrow, for the reason that it is in process of development of building. Today there will be a vacant place on the floor tomorrow, a powerful machine sitting there on that spot. Today there will be the side The financial condition of the Pan Motor Company is excelOn Jan. 1, 1919. the committee found that the Company had caah on hand and In the bank, (90,971.68. Money is being received from new subscriptions for stock and as payment on eld at an average ef (7,000.00 dally. On December 24 there had been subscribed 694.716 share of stock, representing a vale or (6,947,160.00. Of this amount (1,600,000.00 on capital atock alone remains yet to be paid by the subscribers. In addition to the above amount being still owed by subscriptions en the capital stock, there also remains a substantial sum to be paid on the (5.00 surplus. In order to explain bow tb (10.00 for each share of stock is applied, the committee finds that the first (5.00 goes for organisation purposes which means commission to agent of 20 per cent, salaries of president and secretary departments, advertising and tales departments, foreign correspondence department and and aU other things not chargeable to manufacture, building material and equipment. The number of employees thus paid is over 100. Under the new contract, which went Into effort Juno 1. 1918, there may be considerable saved in surplus en account of d Calling particular attention to the balance sheet above, it will be noted that the buildings cost $664,974.13. They consist of the chine Company; draftsman Universal Motor Track Co.; designer Cadillac Motor Co.; chassis engineer and chief engineer ordnance division Dodge Brother; chief engineer, machine tool and designing department, Kearney A Trecker Co. A R. Smith, St Cloud; general manager drop forge department general superintendent five forging plants Maxwell Automobile Co.; general superintendent drop forge plants United States Motor Oo.; general superintendent Anderson Forge A Motor Co, where , production was doubled. lent. Emerson-Brantingha- 3,440,670.00 2,605,725.98 la found on of the great steel mills ef the United States Iteel Corporation reached by ample railroad connections. In crier to be able to secure steel and iron at a cheaper price representations are now being made to secure a ml nth basic rating terriupon all shipment from the Duluth mills to -e North tory Instead of the Pittsburg rating that now prevails. When this rating is obtained the Pan Motor Company will have effected a large seeing tn the cost of its raw materials. The location is also most favorable for the marketing of the Pan Motor Oompany products, St. Cloud being on the main line two of transcontinental railroads. Water rout to tb Atlantic ocean is furnished through Lake Superior, only 160 miles distant, at Duluth. To the Gulf ports, the Mississippi river furnishes another water route, ss it flows through St. Cloud and is navigable beyond Minneapolis, 76 mliee distant. l- h (4,229,863.03 g tant, WORKING ON CONTRACTS. At the time of the committees visit to the drop forge plant and the die shop, the workmen were engaged in turning out 10,000 connecting rods for the Buda Motor Company, pounding them out hammers. Seven hammers of steel rods with the immense two-to- n ar now In operation, and it might be well to add here that two hammers had been ordered and will shortly he shipped, which jrill strike a blow of 40,000,000 pounds each, rive other hammers are on the road between Chicago and Saint Cloud, throe having arrived while the committee was in St. Cloud. An order for 200,000 hammock hooks, 6000 galvanised chain plates, 6000 three-incpad foo trail stanchions and 6000 guardllno stanhooks, 6000 chion heads for the U. 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 10,000 quantities, this order coming from tho Schoenor Manufacturing Company. Other contracts upon which Co.. 6000 the Company is now working are: connecting rods; Chevrolet Motor Company, 60,000 dutch forks, 50,000 connecting rod forgings; 40,000 connecting rod forgings and 12,500 cam shaft forgings; Winther Motor Truck Company, 100 model 468 steering arms; Pan Motor Company, 90 service brake cam shaft levers, 30 universal joint flangor a xja ends, 30 lower tire carrier brack eta, 60 transmission gear shifter forks, 60 service brake levers, 30 fan shaft levers, 30 emergency brake cam shaft levers, 30 flywheel nuts, 30 emergency brake cams, 30 accelerator pedals, 60 tie rod yokes, 60 brake tube brackets, 60 compartment tank strap ends, 120 valve tocker arms, 120 rocker arm yokes, 60 rear spring brackets, 30 tail lamp brackets, 60 pedal pads, SO steering knuckles, R. H., 30 steering knuckles, L. H, 30 dutch throwout yokes, 30 dutch pedal arms, 30 brake pedal arms, 30 gear shifter levers, 30 front spring brackets, 60 front spring horns 30 right-hansteering arms, 120 connecting rods, 30 emergency brake levers, 30 crankshaft counterweights, 60 rear spring horns, 30 service brake cam shafts, 60 rear axle shifts, SO transmission universal joint flanges, 30 service brake cam shafts, 30 emergency brake spiders, 30 tire carrier brackets, L. IL, 30 tires carrier bracksteering arms, 30 crankshafts, 30 front ets, R. H., 30 30 emergency brake cams, 30 steering poet bracket axle studs, 5 crankshafts for tractor, 400 tonga. 18,318.65 6,648.26 30,178.86 11,400.00 17,250.61 10,012.89 6,610.00 664,974.13 457,724.07 $1,221,817.57 $ men left for St. Cloud, reaching d e 71,347. Si 6,000.00 .,1,493.87 above-name- CARS NOW ON HAND. In the assembling building, the committee counted forty-fivof the 1918 Pan cats, all completed, ready for the sales department. Machinery is now being received for equipping the assembling plant, which Is in the main building. Everything will be so ar ranged 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. R. Brown, the manager of manufacturing, stated that by June 1 the Company would be producing at least ten cars daily of the 1919 model, and, with the plant finished as ultimately intended, the production will be from 300 to 500 cars dally. The die plant is a Urge building, which is filled with all kinds of the heaviest and beet machinery. Here every part in connection with the making of automobile, tractors, or almost anything else, can be executed with the lateet machinery available. The dies are now being made for the Pan car and consist of the model cat out of heavy steel blocks, from which 10,000 to 20,000 parts can be manufactured without reconstructing the die. The plan is to manufacture every part of the Pan product in its own factory. 42,605.93 I tb o, e FORTY-FIV- E 110,540.80 Materia Work In Process labor-savin- - BALANCE SHEET, NOVEMBER 30th, 1918. ASSETS. Liberty Bonds Aocounta Receivable Advance Deposits with Manufacturers Purchase Suspense id 10 PAN MOTOR COMPANY, SAINT CLOUD, MINNESOTA CURRENT Cash on Hand and In Banks Pan-dolf- - C- f J December Sth011 .Upon the arrival of the two committees, at Colorado Springs they were joined by G. E. Lynch, a retired stockman, and W. T. Kennedy, one of the heaviest stock .olders of the Pan Motor Company in Colorado Arriving at St. Cloud, the oommittee went to the o"fice of the Pan Motor Company and met Mr. S, C. the president. He conducted the committee on a himed tnp of inspection over the entire plant, introducmembers to the the various departmental heads, who were instructed at the same time by Mr. Pandolfo to ing show the committee everything about the plant; to give aiy and aU information requested; to furnish all data desired; give access to all books, papers, invoices and stock books; cash on hand and in bank, and statements showing indebtedness, if any, of the company at the present ti ne. 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, secret' iry of the Pan Motor Company. Mr. Barritt has installed a very simple, accurate, qomprebensive accomting department, giving complete detailed information of the business of the company and plant. The bookkee ling methods are modern, and everything is so arranged This department occupiei that this department is carried on at a minimum expense with tbirty-fjyemployees. the northeast corner of the main building, and the equip nent in desksrtypwriters, etc., is complete and built for permanency. From a certified trial balance sheet of the standinj of the company, November 30th, 1918, the following was disclosed: - I Rio Grande tion Motor 8 named Jw JuKcXSo The'ns S ESS, ' rdr tn ? honesty and reliability of the iDp0lviIlg the C under date of December 2nd, Comm!tW commttee, and repeated and enlarged upon m letters by 0T&do and by 111111 transmitted to various newspapers b cmni,11t thereon, in a manner detrimental to the r further prog'ubsbera 10 J10 in sald company ware of discuss the situation with meetings was MltiU lo proceed to St. Cloud, Minnetota. at the .,rmedl iuto the atfure or the Pan Motor Companr. requeued They Pan Motor Company onWtin 1918; also the letter Congressman Edward T. TavloTnf in Colorado, which published same ress of the said Pan Motor held at Montrose and Grand VISIT TO PLANTCONVINCING, The committee ia convinced that anyone who will visit the plant will be forced to the conclusion that the Pan Motor Company is not a plant of cheap construction or of a temporary character, but that it is well on toward becoming on of the greatest manufacturing concern in the nation. The first building waa erected a little ever on; year ago and today its permanent structures cover almost five acre of ground, or 211,902 square feet of space. The committee asserts that tha progress of tha Pan Motor Company toward a production basis has been tbs most rapid, most phenomenal, in tb history of American manufacturing nnder similar conditions. It has already accomplished wbst required other automobile manufacturers years to bring about. VICTIM OF CONSPIRACY. Thf committee is convinced tbst there is a gigantic conspiracy against ths Psn Motor Oompany. Every possible effort ia being mad to destroy it or defer its progress and success. The committee belisvo tbs opposition comes largely from those who business might be Injured to an extent through possible competition by tb Pan Motor Company. Tb source of this opposition the committee does not know, but that tb influence is being exerted upon newspapers, magaaines, government and state officials and others is patent to anyone who will make even e cursory SATISFIED ' BILLS ALL PAID. that the Pan Motor Company is In most excellent financial condition; It has no bonded indebtedness; no The committee finds mortgages; no preferred stockholders, and has never issued any special or promotion stock to anyone. It has no past due unpaid bills, and, in fact, has no indebtedness of any kind except the current bills that are coming in on account of shipments being received daily, and these bills are paid Just as soon as the auditing department can verify their accuracy. A so that the Company avails Itself as a general rule of all discounts. INVESTIGATE FOR YOURSELF. To all those who doubt, tho members of this committee simply ask that they go to St. Cloud and investigate for themselves. Any member of this committee will cheerfully answer all questions that any subscriber or stockholder may ask, in so far as his ability lies. They have in tbelr possession many documents that could not b covered in this reportrt-bieof which is the report of the J. O. Whit Engineering Corporation of New York, a company renowned ah over the world for Its reliability, which exhaustively examined tb Pan Motor Oompany at the instance of the Government and gave it what this committee considers a ouo hundred per f cent Indorsement. " UNQUALIFIED APPROVAL, . The committee gives the Psn Motor Company the fullest Indorsement, without qualification or reservation, after having exam- ined to It complete satisfaction the books, papers, contracts, buildings and equipment and methods of doing business. These conclusions have been reached only after a careful and conscientious examination, without any bias or prejudice or influence of any kind' whatsoever. St. Cloud, Minnesota, January 2, 1919. MEMBERS OF THE COMMITTEE. Emerson-Brantingha- , STOCKHOLDERS. Each member of this committee is more than satisfied as a stockholder in the Pan Motor Oompany, and is glad to become a part of this wonderful organization. He believes ths Company to be honest and that it is capably managed; that ths development and progress in the construction of ths plant tbns far more than meets expect Uons: he believes that each and every subscriber would be fully Justified in paying tb remaining amounts upon his stock and even subscribe for more stock In the event that he la able to so do without financial distress; that ths Pan Motor Company is Just as it hts been represented by ltd friends; those interested in it not those opposed to it. , . OTTO R. BECKER, Fanner and Blacksmith, Montrose, Colo, CLARENCE WILLIAMS, Farmer, Montrose, Colo, O. E. LYNCH, Stockman, Colorado Springs, Colo. C, E. ADAMS, Editor Montrose Daily Press and Grand Junction Dally News, Residence, Montrose, Colo, 8. C. HOEL, President Hoel-Ros- s Business College, Grand Junction, Colo. C. P. BLAcKWELL, Manager of Grand Junction Motor Sales . Company, Grand Junction, Oolo. (Atjv.) n' t. ' ; . - |