The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1922-07-07


stockholders elected board Of direc'
tors who were representative men In
the community where the stock was
held in large qdan.ties and men who
stockholders. Efforts were made to
raise sufficient money to complete the
installation of machinery in the plant
and put the same into operation, but
as this could only be done by bond
issue and Mr. Kahrl who holds the
deed for the title of the property in
trust for the Chamber of Commerce
to make deed for the proper.
| ty the matter Of issuing bonds had to
be abandoned and there was no ap-
parent escape from working out the
troubles of the company through
court.
The only property that the purchas-
er of this stock had in view was the
plant and equipment therein, and
these stockholders began to seek ways
and means of trying to save their in
vestment. I was not stockholder in
The Knox Tire and Rubber Company
but was retained by the committee
representing these stockholders to as
sist them in their endeavor to save
their investment so far as it was pos
sible to do, and this service that was
rendered, has been rendered without
compensation. The stockholders re-
alizing that the only asset they had
was the plant as above stated, plans
were agreed upon for the raising of
a fund among the stockholders for
the purpose of buying the plant or
preventing it's sale at sacrifice. This
scheme was legitimate and it would
| seem that it ought to have the sup
port of all fair minded citizens, but
! for some reason unexplainable from
that time to the present it has met
with the fierce and unrelenting Opposi-
ton from a cotere of individuals who
seem bent upon the policy of rule or
ruin and who have used every means
in their power to prevent the stock
holders in their attempt to save their
| investment, or at least part thereof,
in this company.
Attempts were first made to confuse
| the stockholders by misrepresenta-
| ton and other devious ways; when
] the time was reached for the sale of
/ the property and the stockholders
having accumulated a fund to enable
] them to bid at this sale, the Chamber
of Commerce, voluntarily, prepared
! and placed in the hands of the auc-
4 tioneer to have read before he offered
| this property for sale, a letter OF
which the following is copy:
4 Office of The Chamber of Commerce
Mount Vernon, Jan. 26, 1922.
Mr.. Paul M. Ashbaugh, trustee,
The Knox Tire and Rubber Co.,
Mt. Vernon, o.
Dear Sir:
The board of directors of the Mount
| Vernon Chamber of Commerce al
their regular weekly meeting on Tues
4 day evening, Jan. Gath, instructed me
| to address to you this letter on the
| subject of the title to the land (2O
4 acres) on which the buildings of the
Knox Tire and Rubber Company are
located.
1t is conceivable that the fact that
/ title to this land is held for the Cham
ber of Commerce by trustee might
l cause some prospective bidder for the
property to hesitate and we have no
4 desire that this should in any way in
/ terfere with the property's bringing
1 the highest dollar possible for the
| benefit of the creditors and stockhOld-
| ers.
1t is the desire of the board of di-
rectors that the equity of the Cham
ber of Commerce be preserved, how
ever, when the sale is made and l
can assure you that no bonafide pur-
chaser of this plant, who buys with
the intention of operating it. will De
! inconvenienced regarding acquiring
the title to this real estate.
Very truly yours,
Hoy l.. Russell, Secretary.
This letter was read and while 1t
may have been prepared with duplici-
ty in mind, it would at least at the
time, when no opportunity for more
careful inspection could be had, Gre
ate the impression that the Chamber
of Commerce was not only willing to
cooperate with the purchaser, but that
the cooperation would include vest
ing of a perfect title of this real estate
to the purchaser, and with this i'm
preston the sale was had. The stock
holders were the high bidders, and
proceeded to pay into the hands Of
the trustee funds sufficient to pay the