Viewing page 78 of 100

This transcription has been completed. Contact us with corrections.

150
the [[underline]] Karpen group a larger percentage than at present when they have only about 30 or 33% [[/underline]] of the total stock. So [[underline]] Karpen should not kick. [[/underline]] The question is then what to do with the stock, sell it to present stockholders to the highest bidder, or pro-rata or offer it to our employesͯ
[[vertical annotation in left margin]]
ͯ or distribute it as a stock dividend
[[/vertical annotation]]
[[underline]] I should hesitate to offer it at this high price unless after the affairs [[/underline]]  of the company show without doubt that we have been able to [[underline]] go ahead not withstanding the new competition which has [[/underline]] arisen
[[strikethrough]] [[underline]] March 21 [[/underline]] [[/strikethrough]] I received this afternoon (after my telegram to George asking his advice about [[underline]] my personally buying all [[/underline]]  
[[end page]]
[[start page]]
151
the [[underline]] R&H stock [[/underline]] had gone) a letter from [[underline]] Hays offering R&H stock for sale and giving me very friendly advice. [[/underline]] I wrote him an answer which I sent to George. Also the letter of [[underline]] Geo Roll [[/underline]] giving me financial statements book values average earnings in 5 years since 1922.- [[strikethrough]] 1923 [[/strikethrough]] when the merger took place showing our net earnings, 
for 1922                      $ 1,855 974 net
                   Book values
1923 [[strikethrough]] 108.60 
     [[/strikethrough]]         2 086 084  "
1924 [[strikethrough]] 132.92 
     [[/strikethrough]]         2,850 739  "
1925 [[strikethrough]] 194.71
     [[/strikethrough]]         3,116 441  "
1926                            2 000 000  "
[[strikethrough]] Average
[[/strikethrough]]
^[[Total]] for 5 years        $11,909,240 
[[underline]] 
Average for 5 years.            2400,000 (about)
[[/underline]] 
Book values
1922 - 108.60
1923   132.92
1924   194.71
1925   245.74
1926   [[overwritten]] 224.88 [[/overwritten]]
       274.88 corrected to 268$
[[strikethrough]] 1927 [[/strikethrough]] so as to face contingency reserve for doubtful accounts