The Michigan Buggy Company, took a loss on every car, and only stayed in business from it's financial support from the horse carriages department. An odd contrast to the typical automobile wiping out the horse carriage industry

unusual business practices that were uncovered, and one of the more sensational discoveries was dubbed “the velvet payroll.”

As the financial situation of Michigan Buggy became dim, the officers proceeded to pad their compensation at the expense of the creditors. This included additional cash payments as well as cars. Frank Lay Jr., for example, had four Mighty Michigans. Owning four cars in 1913 was an inconceivable extravagance.

However, for the most part Victor Palmer was found evasive, he responded with vague answers or claims not to remember details. This behavior ultimately did not help his case, nor did his attempt to flee Kalamazoo in the midst of the proceedings. 

The escape was foiled thanks to Palmer having sent his baggage to the Michigan Central Station early. Court officials were thus alerted of his planned flight and were waiting for him at the station.

https://www.kpl.gov/local-history/kalamazoo-history/business/michigan-buggy-company/