The Medina sentinel. [volume] (Medina, Ohio) 1888-1961, 1920-03-19
RUBBER COMPANY
SEEMS ASSURED
HERE IN MEDINA
Going Concern Of Tire Sellers to
Join Medina Investors and
Make Own Tires in a Medina
Plant. @8.
WILL MAKE TIRES HERE
ERE SNOW FLIES AGAIN

ERE SNOW FLIES AGAIN
The auto tire company figHring
with Medina merchants over the prop
0sition of locating in this city came
to Medina Monday afternoon and met
with the committee of five-Messrs.
Longacre, Hoover, Codding, Hyde, Mr..
Pelton being absent and discussed a
tentative proposition from the auto
tire manufacturers. A few other
business men, not understanding that
it was to be gathering of the COM
mittee, were also present and took
part in the deliberations.
The proposition was received, look
ed good to the committee, was en-
dorsed as a committee, and it was
then determined to hold meeting of
those who had subscribed to the Eaton
proposition in the evening. The call
was sent out to these subscribers and
at 7:30 such a gathering was held.
Nearly all the subscribers-total-
ling about 40 with an aggregate sub
scription of $38,000-were present
at the evening meeting. The propo-
sition presented was about on this
wise:
The tire company has some $4,000
in the bank at present There are
$1,000 IN good bills receivable, about
$4,000 in stock, tire mnlds, patterns,
patents, etc. There is a business Of
about 1000 tires a month worked up
and going with no debts whatever.
There are SO stockholders in the pres
ent company, $4,000 preferred stock
( in force and $4,000 common; &vi-
, dends are due and the cash is in the
treasury ito meet it. The company
is largely selling organization and
as such has made good.
The Medina propositionTis to organ
j ize a company with $SOgDO0 capital
and take over the old company, reof-.
ganizing. Preferred stock in the Old
company will be taken up with new
stock, share for share. an the old
company the preferred h6lders re-
ceived half as much common as they
purchased preferred. In the transfer
it is planned to give them The same
common as they receive preferred,
lettering their condition in Ithe new
as to holdings ,hut relinquishing some
thing they know for something as yet
: an experiment. .#.I -
For this the did company trafns over
all it's holdings--cash an bank and
! bills receivable sas weD as it's more
tangible assets. The president of
the old company lis given similar pO-
sition in the new with 7an assurance
of continued tenure in office. The
,other officers will hold as per the
terms in The bylaws. President to
receive a salary of $5y0h0 and one
per cent. on sales, "a much less cast to
the, company than is usually paid. and
the president proftang in that hisssys-
tenn and organization is more com
plete. Twenty thousand cash is to
he paid the president in liquidatioD, of
obligations Of the old company not las
yet takan up in the arganizStion and
conduct of the business. The = FIVE
old directors to hold sower for "a year
and the four new ones to come from
Medina ,inNestorY. The offices of the
company lis to be removed to Medina
and the whole business, practically, TO-
ibe conducted at this home office. y
The board of directors in the SUR
gender of thesr present stock Will re-
Geive $4,000 of the new stock, same
ration as the smaller stockholders will
receive. The board of directors are
mot to receive any bonus and the com
pany is to receive just what has been
outlined above. The Medina COM
pany. after absorbing the old, will
take over everything good will, pa
tents, rights. equipment, sa&esforces
furniture, stock on hand, bills receiv-
able-no bills payable cash in bank
and the whole working force and SELL
ing force of the company. In other
words Medina is to get a going con-
cern, with bright prospects for un-
precedented expansion and with bias
mess meeting all expenses and ac-
cumulating moneys for dividend pur-l
poses, according to the committee. By
the time that the Medina plant cs.
be built and set to manufacturing per-
feet tires the business. should, easily,
be double and perhaps treble what it
is now.
The past few months operation of
the present company has earned it.
dividends equivalent to IA per cent on
its stock in force, 1t is stated. In
the great expansion contemplated this
condition will naturally be disturbed.
A vote of those present was taken
ON the proposition of raising the nec-
essary money in Medina and taking
over the old company and going
ahead. This was carried unanimous
ly; those voting were from among
those who have subscribed on the
Eaton proposition.
A tentative agreement was drawn
up and the committee of five were
authorized to enter into an agreement
with the old company to make the
combination. The old company will
now take the necessary steps to trans
fer its business and holdings which
will likely take 80 days for it's con-
summation. There is but one chance
in a hundred that anything will arise
TO stop the transfer, and the officers
of the old company and Medina's COM
lnittee Of five are going ahead on the
supposition that the whole matter is