Locomobile and auto racing
Part two - Locomobile fights for its life
In 1911 Locomobile introduced its model 48 which was
manufactured through 1926 with few changes. Model 48 series numbers were used
to differentiate the developments through the years. The '48' designation was
used by the Locomobile Company to signify that the 475 cubic inch six-cylinder
engine was rated by the NACC (National Automobile Chamber of Commerce) with 48
taxable horsepower. Through the years the Locomobile Model 48 built a solid
reputation as a powerful, luxurious, reliable automobile for America’s upper
class.
A postcard of the Locomobile factory
Locomobile fortunes changed radically in the summer of 1915.
In July the company declared that its profits would be shared with the
factory’s 3000 workers, then on September 1, company president Samuel T. Davis
died unexpectedly from ptomaine poisoning.
The death of Davis, the son in-law of founder Amzi Barber left a vacuum in Locomobile’s leadership. Company treasurer Raymond Albright the son of one of Barber’s former business partners, took over but during the next few years while Locomobile built Liberty aircraft engines for the war effort Albright built up a stockpile of materials in anticipation of a huge post-World War One boom in automobile sales.
The death of Davis, the son in-law of founder Amzi Barber left a vacuum in Locomobile’s leadership. Company treasurer Raymond Albright the son of one of Barber’s former business partners, took over but during the next few years while Locomobile built Liberty aircraft engines for the war effort Albright built up a stockpile of materials in anticipation of a huge post-World War One boom in automobile sales.
The post-war nationwide economic recession and subsequent
depression left Locomobile overextended and vulnerable. A month before the
company entered the new decade, shareholders forced the Locomobile directors to
sell out to the newly-formed Hare’s Motors Inc. a mysterious New Jersey
“operating company” led by former Packard sales vice-president Emlen Spencer
Hare.
The photo of Emlen Hare published
with his 1918 Horseless Age article
Emlen Hare formerly of the Commercial Truck Company of
Philadelphia joined Packard Motor Car Company on January 1 1916 as a ‘Special Representative’
for commercial trucks in New York and headed the truck department after just
six months. In August 1916 he became the
general manager for Packard in New York and before the year was out he was
named the president of Packard’s New York branch.
In 1917 Emlen Hare wrote and published a booklet entitled Packard
Salesmanship that pointed out good address, tact and thorough knowledge of
the product and hard work were key, and his final tip was “never let him
suspect that anything is too much trouble. He may be a bore but his order is
not less valuable. Bores usually buy again once they are satisfied as few
establishments satisfy them.”
In that role in February 1918 Hare had penned a very strange
article published in The Horseless Age, an automotive trade journal that
claimed it was “a patriotic act to sell automobiles.” In his one-page opinion
piece Hares drew a comparison between a “too-elaborate $6 dinner” to an
automobile; he claimed the dinner “left one drained of energy with reduced
efficiency for several days” whereas the
automobile “brings health and energy and thereby keeps judgement sound and is
an insurance policy for what we have.”
Hare’s article also railed at the use of the term “pleasure
car” to describe passenger cars which he said "are among our foremost
time-savers.” Most curious was Hare’s use of President Woodrow Wilson as the proof
for his argument in favor of automobiles. Hare wrote that “to insure (sic) his judgement
being normal, Wilson uses an automobile for mental and physical relaxation.” Wilson
who in 1906 branded automobiles as “a picture of arrogance wealth” did not
drive a automobile, rather he rode in a Pierce-Arrow limousine.
In September 1918 Hare was elevated to the role of
vice-president of Packard in Detroit but he left Packard in August 1919 with a
new company Hare’s Motors Inc. created on October 6 1919 “backed by New York
bankers” according to Motor Age. Hare
was named the company president with two other former Packard executives and
his brother Alfred as vice-presidents.
In
October 1919, Hare’s Motors took over the operation of Mercer Motor Cars of
Trenton New Jersey, a company which had suffered a sudden loss of its family leadership.
In December as Mercer’s new president Hare revealed plans to immediately
increase production to 3000 cars annually per the Automotive Trade Journal.
In early 1920 after Hare’s Motors took control of Locomobile
in a December 1919 deal that was leveraged with the issuance of 100,000 new
shares of Mercer stock, former Locomobile treasurer Frank Hickman replaced
Albright as the Locomobile company president.
Three former Packard executives – H.D. Church, Ormond E Hunt and Henry Lansdale, who had all resigned from Packard on November 1 1919 moved into respective management roles of engineering, production, and distribution at Locomobile. Hare’s Motors ceased Riker Trucks production in Bridgeport with the plan to build a new factory and in the meantime took over the operation of the Kelly-Springfield Motor Truck Company in Ohio.
Three former Packard executives – H.D. Church, Ormond E Hunt and Henry Lansdale, who had all resigned from Packard on November 1 1919 moved into respective management roles of engineering, production, and distribution at Locomobile. Hare’s Motors ceased Riker Trucks production in Bridgeport with the plan to build a new factory and in the meantime took over the operation of the Kelly-Springfield Motor Truck Company in Ohio.
Author's photos of a Wright built Hispano-Suiza V8 aircraft engine
at the Western Antique Aeroplane and Automobile Museum
In January 1920 Hare’s Motors issued additional Locomobile
and Mercer stock to finance the purchase of automobile manufacturer Crane-Simplex
from aircraft manufacturer Wright-Martin Aircraft Corporation. Wright bought
the company in 1916 to obtain Henry Crane’s license to build the Hispano-Suiza
aircraft engines for the allied war effort. Wright did not build any of the
luxurious Simplex six-cylinder cars after the stock of parts was used up and
the Simplex automobile factory had sat idle for two years.
Hare’s Motors then controlled the manufacturing and sales
operations for automobiles from Locomobile, Crane-Simplex and Mercer as well as
Kelly-Springfield and Riker trucks (built by Locomobile) A full-page announcement
published in the March 10 1920 edition of the Bridgeport Telegram
newspaper under the unusual company motto of “We shall keep faith” which Emlen Hare
explained meant “quality is the keystone.” stated that Hare’s Motors “assumes
the directing power…to effect a big increase in output” and that “there shall
be no waste in plant space or effort in any respect” as “management intends the
Company shall succeed most by serving most.”
Later in March 1920, Hare gave an interview to the Automotive
Trade Journal in which he anticipated “annual business of $250 million
within five years” as Hare’s would produce a ”complete line including trucks.”
Hare clarified that Locomobile Simplex and Mercer will retain their corporate
identities with the plants operating purely as manufacturing establishment,
with engineering, distribution maintenance and advertising removed and operated
as divisions of Hare’s Motors Inc.” Almost without exception, the leaders of these
departments announced by Hare were former Packard employees.
Hare first planned to introduce a car smaller than the Locomobile
‘48’ and intended to increase production at Mercer up to 50,000 cars per
year. Hare’s plans quickly went awry
however, as the country went for a recession into a short intense depression. In
October 1920 Hare announced a $1000 price cut for Mercer and $1350 for
Locomobile.
In a convoluted statement Hare traced his company’s problems
to “suppressed demand due to the insufficient purchasing power of the country
due to the deflated value of the dollar.”
He claimed the price reduction was “part of a collaboration among
manufacturers to restore the morale of business for temporary sacrifice,” and
“that the ultimate profit is to be earned by taking a present loss.”
Many lower-cost cars such as Ford and mid-ranged priced car
manufacturers that included Jordan and Maxwell cut their prices in the fall of
1920 but that the manufacturers of higher-priced cars such as DuPont, Nordyke
& Marmon, Peerless, Packard and McFarlan stood pat while Pierce-Arrow
actually raised prices. Automotive Industries noted in their October 7
1920 issue that “Hare has taken a stand in variance with most manufacturers of
high-priced cars.”
In February 1921 The Magazine of Wall Street provided
an advisory on Hare’s Motors which noted that “as result of the absorption of
Locomobile, Simplex, and Kelly-Springfield, no statements of earnings have been
made. Some time ago it was said of exchange of Hare’s Motors stock would be
made but no announcements has been forthcoming. Probably the condition of the
auto industry has caused a temporary delay in the consummation of that
plan.” Quite simply, Emlen S. Hare had
grown his empire too fast, built up massive debt (over $6 million in new stock
and bonds were issued to take over Locomobile) and now was overextended.
In July 1921 The Commercial and Financial Chronicle
reported that Hare’s Motors Inc. had sent stockholders a letter that stated in
part “as a preliminary step to settle the difficulties of Hare’s Motors bank
and creditors committees have worked out a plan for cancellation of all Mercer
contracts and options with Hare’s Motors. In other words Mercer will be
divorced from the Hares organization.” Shortly
thereafter, Henry Crane repurchased the assets of Crane-Simplex from Hare for
pennies on the dollar. It is unclear whether any Simplex cars were built under
Hare, but under Crane Simplex never resumed production. .
Hare’s Motors continued as the selling agent for
Kelly-Springfield trucks as Locomobile’s future hung in the balance since Hare
had used Mercer stock to finance the Locomobile purchase. The Commercial and
Financial Chronicle reported that “bank and merchandise creditors of
Locomobile are being asked for an extension of perhaps six months in the hope
that some plan can be evolved for the reorganization of the company.”
The creditor’s extension did last long as in September 1921,
in a manner similar to Mercer Locomobile was “split off” from Hare’s Motors
with attorney Elmer H. Havens named as the new Locomobile Company of America
president. Following close behind was the entry of Kelly-Springfield Trucks
into receivership. Although Locomobile
was free of Hare, the damage was done and In February 1922 Havens under
pressure from creditors and stockholders allowed Locomobile to enter voluntary
receivership despite the fact the company had $500,000 cash on hand.
The same day as the Locomobile receivership announcement,
Hare’s Motors Inc. was reorganized as E.S. Hare Incorporated which would
function “to assist auto manufacturers by straightening out their sales
policies and taking over their distribution.”
In March 1922, Emlen Hare wrote a newspaper article entitled “Plans
working out” in which he described his plans “in the not very distant future
for the production of cars designed by a group of the ablest engineers ever
assembled,” for which Hare claimed he “has experience and resources aplenty for
the success of these plans.”
Hare’s grand plans never worked out and soon after E.S. Hare
Inc. publicly announced it had “retired from manufacturing to devote all its
energies to merchandising.” E.S.Hare Inc. apparently failed soon after as in
1924 Emlen Hares was a vice-president with the Philadelphia investment firm of
Hare & Chase Inc. a partnership controlled by his brother Alfred.
Over the next few years, under Emlen’s guidance Hare &
Chase became a minor player in the relatively new field of new-car
financing. In 1936 Hare one of the new members
of the Hupp Motor Car Company board of directors was named in federal lawsuits
that were filed in connection with stock fraud and sales kick-back accusations
against the notorious Hupp chairman and stock promoter Archie M. Andrews. The door for Andrews opened because before he took over Hupp, the company lost over $4 million each year in 1931 and 1932.
While Emlen S. Hare who noted automotive historian and
author Beverley Rae Kimes called “one of automotive history’s more renowned
scoundrels” can be blamed for contributing to the death three car companies-
Locomobile, Mercer, and Simplex-Crane, his notoriety pales beside that of his
associate Archie Andrews who killed four car companies – Hupp, Kissell, Ruxton,
and Moon Motors. While Andrews died in 1938 while under indictment for
bankruptcy fraud, Hare worked as an executive in the investment industry before
passed away in 1962 at age 79.
Locomobile had barely
survived Emlen Hare’s failed empire building but sadly another empire-builder
waited in the wings.
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