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In February 1947, a group of underwriters made a public offering of 150,000 shares of the capital stock of the Corporation. Among the underwriters and one of the heads of the group was Shields & Company, of which Eugene P. Barry, a director of the Corporation, is a partner. The Corporation is advised that the net proceeds realized by Shields & Company in the underwriting transaction, including underwriting commissions on the 22,000 shares underwritten by it and its share of management fees, amounted to $31, 636.29, after deducting expenses and allowances to dealers. As an incentive to arrange for the financing, the Corporation sold, at a price of ten cents per share covered, to the underwriters who managed the underwriting, including Shields & Company, transferable warrants entitling the holders to purchase, within three years from February 26, 1947, an aggregate of 30,000 shares of capital stock of the Corporation at $12.25 per share. On the date these warrants were sold, the market value of the Corporation's capital stock ranged from $10.25 to $10.37 per share. The Corporation is advised that Mr. Barry received from Shields & Company warrants entitling him to purchase an aggregate of 1,000 shares of the capital stock of the Corporation.

During the year ended December 31, 1947, the Corporation paid $28,400 to Kadel, Hoffmann & Gillis for legal services rendered to the Corporation. Mr. Carl O. Hoffmann was a director of the Corporation during part of 1947 and a member of that firm. The legal fees so paid are not included in the amount of remuneration reported above as paid or set aside for the benefit of all directors and officers as a group.

ANNUAL REPORT
The Annual Report enclosed herewith contains the Balance Sheet of the Corporation as at December 31, 1947 and a Statement of Income and Earned surplus for the year ended December 31, 1947 as certified by Arthur Young & Company, independent public accounts.

OTHER MATTERS
The management does not know of any matter other than those referred to in the accompanying Notice of Meeting that may come before the meeting. if any other matter shall properly come before the meeting, the persons named in the accompanying form of proxy intend to vote thereon in their discretion. An account of the proceedings of the meeting will be sent to any stockholder upon request. 

EXPENSE OF SOLICITATION
The Corporation will pay the cost of soliciting proxies in the accompanying form. In addition to solicitation by use of the mails, certain officers and regular employees of the Corporation may solicit the return of proxies by telephone, telegram or personal interview.

Dated: April 1, 1948.
By Order of the board of Directors, 
SIGMUND JANAS, President
WARREN C. COOPER, JR., Secretary