Postby dognose » Mon Mar 07, 2016 12:09 pm
Former Philadelphia Jeweler Involved in Crash of the Stability Motors Co.
Philadelphia, Feb. 21.—The Stability Motors Co. is in the United States Bankruptcy Court, and E. J. Berlet, formerly well known in the jewelry trade, the president of the concern, who forsook the jewelry business in this city about two years ago to enter a, to him, newer and more lucrative field, is nominally under arrest on a charge of "fraudulent conversion of property."
The news that the Stability Motors Co., whose prospects had found so firm an advocate in Mr. Berlet, had managed to become insolvent to the tune of anywhere from $60,000 to $100,000, came with stunning surprise to hundreds of jewelers in the city who were acquainted with the president of the concern and had listened to his repeated assertions that he had found in the motor truck business something which far exceeded the fondest hopes of a retail jeweler's profit.
Counsel for all three of the named creditors united today in declaring that "Mr. Berlet has not profited a penny in the transaction."
One of the attorneys said:
"Mr. Berlet, in every move, has been acting for the interests of the creditors. He is striving to refund the money his company owes and every one is helping him. This was a forced action against the company, but Mr. Berlet has agreed to every move and we are hopeful that the situation will not be as bad as it now appears."
The collapse was caused by "shoestring financing," according to Harris J. Latta. one of the creditors and a stockholder of the company, who also absolved Mr. Berlet from dishonest motives in the crash.
"While I stand to lose every cent I put into the company, I am convinced that Mr. Berlet did not benefit from any of the transactions."
The warrant against Mr. Berlet was sworn out before Magistrate Grelis and Mr. Berlet agreed to accept service upon agreement of counsel for the creditors that there should be no hearing until the investigation had been conducted further.
However, the question of how or why the company failed is not what interests Philadelphia jewelers so much as it is the mere fact that it did fail. Mr. Berlet, who was for 10 years president of the Walnut St. Business Men's Association and during that period a member of a firm of retail jewelers at 16th and Walnut Sts., confided to all his acquaintances in the old line that they were wasting their time in jewelry and should branch out and take up the automotive industry.
None of his friends profited by his suggestion. When he severed his connection with the firm of Maxwell & Berlet, it continued under the other partner. In the meanwhile the Stability Motors Co. took over luxurious and palatial quarters at 1740 North Croskey St., and seemed from the start to be a thriving business. Mr. Berlet told all of his jewelry friends how well he was doing and pointed out their error in not taking up a more lucrative line.
Then came the unprecedented year of 1919 when jewelers in Philadelphia reaped a harvest in business, and to top it off, Stability Motors has gone into the bankruptcy court and the jewelers here are mingling regrets for Berlet with emphatic "I told you so's."
Source: The Jewelers' Circular - 25th February 1920
Trev.