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[[underline]] March 25. Splendid letter from George reporting further talks with Hamman [[/underline]] and acknowledging my [[strikethrough]] letter [[/strikethrough]] & telegram consenting to his Arctic trip.
Excellent letter also from [[underline]] Redman [[/underline]] giving his views about [[underline]] laminated [[/underline]] patent suit, showing its strong points.
[[underline]] March 26. [[/underline]] Another cool night.
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Last night I reasoned that if I buy [[underline]] 3000. shares of R&H at 400$ [[/underline]] this would cost me [[underline]] $1200,000 [[/underline]] but as each share carries $160 cash behind it invested in [[strikethrough]] good [[/strikethrough]] ^[[best]] securities it means that the cash outlay is in reality only [[underline]] 702000$. [[/underline]]
The present [[underline]] lowest book value is $270 per share [[/underline]] so that on total book value this
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stock is worth, $810000. From this point of view I risk only about $400000, cash. With the prospect of possessing
12000 + 3000 = 15000 shares outright
Other Friendly voting
shares 4000
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common share 19000 votes
out of 35658. common which [[underline]] means decidedly over 50% of the votes. [[/underline]]
If [[strikethrough]] this year [[/strikethrough]]
[[underline]] our profits dwindle to one half of 1922, i.e. 900000$ [[/underline]] and we have 4% on our invested securities = $240000, that would
give us $ 900,000
240 000
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1140 000. Enough for $1000000 dividends or about 30% per share. So that [[underline]] in 3 years the dividends would repay the investment or in 4 years if I deduct 5% interest on capital [[/underline]] We need only [[underline]] $213950 [[/underline]] for paying 6% on the common.
Besides I would still hold $800000 reserve capital
