Along with the detail mechanical improvements offered from time to time, Franklin adhered to an engineering policy that he had instituted during the days of the Powerplus designs, namely, of making new innovations capable of being fitted to previous models. This not only simplified the maintenance and production of the spare parts stock, but was instrumental in keeping older machines on the road. This is probably the principal reason so many old Indians survived through the years.
Indians continued to enjoy healthy sales both at home and abroad. At the annual company picnic held that Summer, President Weschler was happy to announce to both staff executives and production workers that the once depleted treasury now contained a surplus of over $800,000.00.
Indian add a "Four" to their range - a fateful decision
It was during this Summer that Weschler, with the unanimous concurrence of the Board of Directors, opened negotiations with Michigan Motors Company of Detroit, the new owners of the remaining assets of the now defunct Ace Company. Weschler had reasoned that with the now sound financial condition the company enjoyed, it could well afford the acquisition of the Ace machine. With the single cylinder Prince, the light twin Scout and the heavyweight Chief, the addition of a four would give Indian a complete coverage of the motorcycle market.
Motorcycle sales had recently been steady, at least within the framework of the limited domestic market, although production was now below 25,000 units per year for the whole industry. This decrease was said to be due to the fact that much of the export market had been lost as the result of foreign tariff increases, although Australasia and South Africa continued to favour Indians as the most popular imported make.
Indian directors use company money to play the stock market
In view of the healthy surplus of available capital in Indian's treasury, due mostly to the heroic efforts of President Weschler, a majority of the Board of Directors proposed that a holding company be formed independently of the Indian Motorcycle Company, for the purpose of trading in the shares of outside manufacturing concerns. The Board reasoned that as the production of motorcycles had more or less become static, there was no valid reason to expand manufacturing capacity or to invest any more surplus capital in additional plant facilities.
President Weschler was adamantly against this proposal. He argued that replacement of certain of the now well-worn tooling was in order and this could be accomplished with a part of the surplus funds now on hand. He also advocated the needed strengthening of Indian's outstanding shares of no par common stock, in order to bolster public confidence in company activities. He further suggested that the Board might do well to purchase all or part of the outstanding common shares, and convert them to the preferred type, which would at once enhance the Board's present holdings in the company.
Weschler was overruled, and the Board then laid plans to invest the surplus in speculative holdings outside the company. And so it was on August 27th that President Weschler regretfully tendered his resignation to the Directors and abruptly severed all connection with the company to which he had given his unswerving loyalty for nearly all of his adult life.
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