Viewing page 76 of 100
This transcription has been completed. Contact us with corrections.
146
[[vertical line in left margin]]
If however I bought 1600 of the shares of R&H which at their price of 500$ [[underline]] would cost me $800000 [[/underline]]
I would be in a very favorable position with my friendly votes in my group of controlling 5 directors, 4 to be appointed by me 1 by my friends as follows:
[[/vertical line in left margin]]
[[left margin]] 650 preferred [[/left margin]]
12000 my shares
1600 purchase from R&H
4000 friendly votes
-----
17600 total votes out of
35658 ^[[common]] or 49.07% of the votes while those who purchase the remaining 6665
\\ 1600
\\ -----
5065 remaining
shares of R&H would count only 1.42% votes, in other words one director with only 0.42 votes to spare while we would have 4 directors + 0.907 votes to
[[end page]]
[[start page]]
147
spare for a 5th Directors overruling their short 0.42.
[[left margin]]
May 1, 1927 = Book value is about 278$
100$ other assets
178$ cash
[[/left margin]]
[[underline]] George Roll's list gives for present book value of common [[/underline]] 268$
This made up of 168$ cash & invested securities
100$ other net assets.
------
268$
so that our [[underline]] net total physical [[/underline]] assets are at present [[underline]] $9,956,344!! [[/underline]] instead of the nominal = $3,565900 (common)
The cash in bank or in securities represents [[strikethrough]] about ^[[over]] [[/strikethrough]] $6,000,000 Dollars
So I came to the conclusion that I have [[underline]] no advantage for the moment in buying all the R&H [[/underline]] stock at their price of $500. That [[underline]] my position shall not be weakened if the party who purchases [[/underline]] theirs purchases all other shares in our group because I shall still have my 3 votes in the counsel. All what they
