Evening star., 1924-02-15

Louis II. Brush, one of the men
who bought the Marion Star from,
President Harding. testified about de-
tails Of the sale today before the oil
committee.
The Associated Press account Of
Mr.. Vanderlip's speech. which was
sent to its members throughout the
country and the world. was verified
as correct by Mr.. yanderlip," Brush
said. in beginning his testimony.
The Marion publisher. testified that
he and Roy u. Moore had been the
sole purchasers OF the Star and that
the funds were their own, except
such us they borrowed from Ohio
banks.
Against these Ordinary Ioans," he
added. stock of the Star has been
hypothecated as collateral.
Il can tell you n little about the
Vanderlip speech in the Associated
Press report" Mr.. Bush said. THE
story was sent out by the Associate ed
Press and then there WAS an order
fication could be obtained from Mr..
'VanderHp himself. That was obtained
and then second order was sent out
to Kill the kill"
Would Answer Runors.
THE developments that have
brought the sale of the Marion Star
into this investigation have resulted
in the publication of many unfounded
and distinctly unfair stories that are
very harmful to our business as
a wSpaper publishers-reports for
example, that the price was excessive
and. In particular. the statement In
Il New York newspaper yesterday that
investment for ua. For these rea-
sons / ask that you permit me to
give you this complete and detailed
explanation of the negotiations and
the contamination of the entire deal.
II am authorized to speak for my
associate. Mr. Roy D. Moore Of Ma
rion. Ohio. in the ownership Of the
Marion Star.
Our negotiations with President
Harding for the purchase OF the Star
were made possible by my very tnti-
mate personal acquaintance with Mr..
Harding over a period of twenty-five
years. During this time We were prac-
tically constant advisers with each
other in connection with our news
paper plans and problems. At our
first conference with him he told US
Of having declined an OFFER through a
newspaper broker reS<nting an
other Ohio publisher of a price higher
than he asked Of US. emphatically
stating that he would not sell his
newspaper to any one II we di not
buy 1t.
He also expressed his confidence in
our newspaper methods. with which
he was thoroughly acquainted and his
desire to retain a minority stock In
terest and editorial campaign after
leaving the White House.
Owns Other Papers.
'In addition to my half interest In
the Star. own practically all of the
stock in three other Ohio newspapers
and small interest in another In
New York state. which is controlled
by my brother All of this stock Is
entirely clear except a part of It.,
which Is deposited as collateral in ad-
dition to Mr.. Moore's own collateral
on our joint notes In two Ohio banks.
TN financing the purchase Of the
Star neither Mr.. Moore nor myself
borrowed any money whatsoever from
any Individual or corporation except
these two ordinary bank loans.
Under the contract of sale Mr..
Harding was to receive for his sos
shares Of stock a total of $263,o00.
capital issue of the company were
purchased by Ms from the minority
stockholders, either present or former
employees Of the Star. for total of
$4,000. making ssS0,000 the total
purchase price.
"Mr. Moore and I have paid in cash
total Of $4,000. s65.0o0 each. of
which Mr.. Harding received $50.00o
upon the signing of the contract. The
remaining $4,000 was paid to the
minority stockholders. The Harding
Publishing Company was reorganiz-
ed about January /. 1924. with a
capital OF s250.000 preferred stock
and 5000 shares Of common without
par value. OF the preferred stock.
the Harding estate owns 100000.
The present and former employees. in
GLIDING Mrs Harding, own approx
mately $4,000, and Mr.. Moore and
myself hold the remainder of the
total preferred issue. or the author
ICED common stock. $500 shares have
been issued, OF which Mr.. Moore and
I own 1850 shares each.
Agreed to Write Editorials.
"Mr. Harding agreed in the con-
tract of sale to sign a secondary con-
tract of employment and we, on the
other hand, agreed to guarantee rthe
payment of the salary of $13.300 per
year for ten years. This employment
arrangement was in a sense a COM
promise on the purchase price. hav-
ing two distinct objects: First, to
provide q concrete editorial connec-
ton between the President and the
Marion Star which was especially de-
sirable to him and to us, and, second,
to reduce our personal liability which
would assist US in the financing, aside
from the prospective revenue from