Studebaker experienced unsurmountable financial problems in the early 30's which led to the death of Albert Erskin by suicide. The fact was that neither he nor his Chairman, Fred Fish,
had kept a proper eye on the money problems that Studebaker was faced with year after year. The practise of giving out high dividends to the stock holders and not holding back funds for
a company's lean times was a hugh error on the part of both of those Studebaker executives. The company went bankrupt and entered receivership in March, 1933. Erskine shot himself just
three months later.
The two were replaced by Paul Hoffman as President and Harold Vance as Chairman. They sold off the assets the company had with Pierce-Arrow and the White Trucking Company
so the funds they gained in the deals could go to helping Studebaker get back on its feet. A new company called the Studebaker Corporation was formed in early 1935.
One feature that made the 1935 Studebaker Dictator stand out was the long slanting narrow grille with a "bird-in-flight" hood ornament. They removed the vee in the bumper and gave it a bow
in the center. The car came with a radio speaker placed over the center of the windshield. Studebaker also added hydraulic brakes on all their cars in 1935.