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We feel that we ought to have $8,000 to start with, and $10,000 if we can get it, altho we are incorporating as soon as we can now, regardless of the amount pledged.

We had a little talk with Luby yesterday and we are to meet him with your brother Bill, tonight or the next night, and confer on the incorporation proceedings. What do you think about making the classes of stock? Luby suggested that we make it all common stock, whereas we had in mind, making part preferred and part common. Those who are not interested in it to the extent of making money out of the project but who are buying stock to help aviation we thought they would rather have preferred, which would guarantee a percentage of interest on their money, and whose shares would be redeemable whenever we elected to call them in. On the other hand those having common stock would share with us, when dividends were declared, to whatever extent they owned shares. Of course, in any event, we would hold 75% of the business and profits. Of course if it were decided that all common would be a better way to handle the proposition, in view of most subscribers are in it for the investment value, we could make it all common, with a stipulation that if it is subsequently offered for sale, it must first be offered back to us, the directors of the company. What is your idea on the subject?

Hope this finds you well,
Cheerio,
C. Oren Smith
H.F. Banks

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