The Medina sentinel. [volume] (Medina, Ohio) 1888-1961, 1920-11-19
RECEIVER FOR
nut & bolt CO.
SOURCE OF ANXIETY
TO MEDINA INVESTORS
Former General Manager Of Company
Accuses Officials Of Misrepresent-
alton, and Profligacy With Stock
holders Money-Stormy Meeting.

AtUAuVA6 AsAOAtSy NAS>sh-ees
The Safety Nut & Bolt Co. of Cleve-
land having been recently placed in
the hands Of receiver, Medina coun-
ty investors and those throughout the
northern part of Ohio, of which there
are many, are now possessed of seri-
GUS misgivings as to the safety Of the
good money they exchanged for stock
in the company about year ago.
The anxiety Of the local investors
has been increased since last Saturday
night, when a meeting Of stockholders
was held at the court house, called by
VIM. H. Burke of Cleveland, who un-
til short time ago was general mana
ger Of The Safety Nut & Bolt Co.
About one hundred of those who had
purchased, stock in the company were
at the meeting.
According to statements made by
Burke the company has been misrep-
resenting the actual condition of af-
fairs with respect to the company's
business and prospects, such misrep-
resentation and conduct. Burke de-
CARED, being responsible for his hav-
ing resigned from the company. Burke
submitted letters and other documents
at the Saturday night meeting pur-
porting to substantiate his allegations
against the company.
One of the allegations was that
while the company has sent out let
ters to stockholders from time to time
telling Of the installation of machin-
cry and the near completion of the
factory, etc., the fact is that they
We're issuing statements that would
not stand the test Of truth, as they
knew. Burke contends that enor-
nous sums Of money have been ex-
pended in salaries, publicity, options,
etc, while the glowing statements of
business have been largely unfounded
and for the purpose of keeping invest
ors quiet and to stimulate and further
the sale of stock.
Regardless Of the motive for such
letters, that such were sent out to
some Of the stockholders is certain,
one of which received by a Medina
man who is heavy investor, bearing
date of Oct. 10, 1920, is as follows:
"You will be glad to learn that
the automatic nut machine, also
the automatic growing machine
specially designed by our engi-
neer, Mr.. L. P. Tyler, and his as
sociate consulting engineers, are
on the floor of the factory, at 65-
.28 Carnegie Ave., and same are
now being equippedfor operation.
"Our president, and the Board
of Directors will within the next
few days set date for yon to
come to the plant, and see what
your investment in this company
has accomplished.
"We will need considerable
money now, to push production,
so any sacrifice you can make to
help our treasurer, Mr.. Waldemar
Meckes, meet the incoming obli-
cation, will be appreciated very
much.
"Please send your remittance
in the enclosed envelope, so as to-
avoid delay in our acknowledge
ment of same.
Sincerely Yours,
HSafety Nut & Bolt Co.
"Richard Xavier Giering,
"Fiscal Director
According to Burke no new machin-
cry has ever been installed, and that
all the nut and bolt products thus far
put on the market were manufactur-
ed at another company's plant.
When the sale of stock in Medina
and vicinity was at it's height last
winter, one of the inducements held
out to investors was that the Safety
Nut & Bolt Co. had taken over a
plant at Berea and would at once be-
gin the installation of machinery
there and proceed to turn out the pro-
duct in huge consignments, an outlet
for which was already in sight.
According to Burke the nearest the
company ever came to fulfilling this
promise was in the pay
ment of $2500 cash for an option on
the Berea plant, and then receiving a
cold turn-down by banking institu-
tions from which the company sought
to secure loan for the balance of the
money for the plant, said to be an
amount approximating $4,000. Not
being able to swing the deal, the op-
tion lapsed, and thus $2500 Of the
stockholders money was wasted at
this time. Burke declares that this
is only one Of a number of instances
where large sums of money have been
uselessly and needlessly dissipated.
1 The call for receivership for the
company was made by a group Of
Elyria stockholders, through repre-
Continued on page three)
Il e 7 i I y 1 e.. 4 ~ 4 a x . b
84bs 9s3