The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1922-07-07
Mt.aVernon4 Attorney Pro-
/ duces Letter Written On
\ January rs, 1922 s,
Letter Says Purchaser will
Not Be Inconvenienced In
Acquiring Title To
Real Estate
Editor Banner:

fusal of the Chamber of Commerce to
make deed to the purchasers of The
Knox Tire and Rubber Company plant
to the title held by the Chamber of
Commerce in trust, and copy in the
news item the letter which was ad-
dressed to myself.
Believing that the public should
know the facts leading up to this mat
ter am asking that you give publica-
tion to the following statement:
The Knox Tire and Rubber company
was one of the children of the new in
dustries committee of the Chamber of
Commerce and at the time that the
promoters were considering the or
ganization of the company a commit
tee of citizens of Mt. Vernon circulat-
ed petition asking that donations for
the purpose of buying certain tract
to be donated to industries seeking
location as factory sites; this fund
was subscribed to generously by the
citizens of Mt. Vernon regardless of
their membership in the Chamber of
Commerce, but the fund was taken Ov-
er and administered by the Chamber
on which the buildings of The Knox
Tire and Rubber Company are situate
was purchased with this fund and
soon after contract was made with
the promoters of The Knox Tire and
2 Rubber Company requiring that they
organize O corporation, construct a
plant upon part of this tract and upon
operating the plant for one year with
minimum of fifty employees they
were to be given fee simple title to
the 2O-acre tract upon which the build
ings are now situate.
. Following the execution of this con-
tract The Knox Tire and Rubber COM
pany was organized with an author
lied stock issue of S2,OOO,OOO of pre-
ferred and $1,00O,O00 of common stock,
there were no other assets of the
company other than the money receiv-
ed from the sale Of it's preferred
stock and the company never sold any
common stock; in order to boost the
sale of this preferred stock Mr. Kahrl,
at the time being the chairman of the
new industries committee of the
Chamber of Commerce, prepared and
placed in the hands of the promoters
letter which was mimeOgraphed,
and put in possession of each stock
salesman who had to do with the sale
of this preferred stock; this letter
stating that he, Kahrl, had made an
investigation of the promoters as well
as their plan and organization and
having found the same responsible
gave the project his approval For
many interviews that have had with
purchasers of this stock l find that
this letter eminating from the Cham
ber of Commerce through its chair
man of new industries committee had
much to do with the sale of the stock,
in fact, apparently more effective in
the stock sale than, any other matter
that was considered by the purchaser
As to just how much investigation
Mr.. Kahrl made before issuing this
letter l cannot say, it is however ap-
parent that he did not consult the
statutes of the state of Ohio, at least
Section 1867 of the General Code and
from developments that have arisen
from the organization of this company
it would seem that he did not give
any more careful consideration to any
other fact relative to the safety of
said organization.
There was sold of the preferred
stock of the company approximately
$1,000 100000 of preferred stock, which
was purchased by something over
twenty-eight hundred different per-
sons, who made this investment in
good faith and upon recommendations
that they believed to be truthful. The
money received from the sale of this
preferred stock, after the payment of
commissions for the sale of the same,
was utilized in paying the organiza.
tion expenses and building the factory
and installing the machinery in the
same and this matter progressed SO
long as sales of stock could be made,
but when the time came that stock
could no longer be sold the activities
of the company ceased, with the plant
constructed, but equipment for opera
tion in the plant incomplete. This
situation as 1t developed, created
great deal of CONSERVATION among the
stockholders, who were widely scat
tered and at the last annual meeting