Evening star., 1924-02-14
PURCHASER DEFENDS
MARION STAR PRICE
Brush Says Newspaper Was Yield
ing 10 Per Cent on Agreed
: Amount.
SCORES . VANDERBILT STORY
Gives Details of Negotiations With
Harding. i
Dy tie Associated Press.

by tie Associated Press. =
CLEVELAND. Ohio, February IL
The implications of irregularities in
the sale Of the Marion Star by Presi-
dent Harding to Louis II. Brush and
Roy d. Moore. made by Frank A. VAN
derlip, New York fnancier, In q speech
at Ossining. N. Y, brought q sharp
denial from Mr.. Brush last night.
Brush is president Of the Harding
Publishing Company. In addition to
owning several other newspapers in
Ohio. and has been q lifelong per-
sonal friend Of tho late President.
His statement follows:
"Mr. Vanderlip's attempt to impli-
cate the late President Harding and
the new owners OF the Marion Star
through the ,aa.e sale OF that sIt nteWspaper paper
cusably false. His statements, were
SO venomouS that 1t is impossible for
him TO soften their effect by claiming
a desire to protect Mr.. Harding's
When he appears before the Senate
committee tomorrow. which ! pre-
sumo is a result of my request that
he be called. Mr.. Nanderlip will ex-
tirely on rumors and admit that he
had made no effort to confirm them
before shooting them broadcast
through the press Of the country
without regard to the harm he might
be doing to the late Presidents repu..
tation and to Mr.. Moore and myself
in our business careers.
Source Of Money.
"NIr. vanderlip asks: Where did the
money come from? Where did it go?'
Every dollar Of 1t came from our own
pockets some Of it borrowed. it is
true, but with the customary securi-
ties back Of it. The money went to
Mr.. Harding and the minority stock
holders, and Mr.. Harding's share Is
now d part of his estate. Practically
all of the facts have been and are
now available in the Marion county
probate court through the executor
Of the Marion Star. for the benefit
of Mr.. Vanderlip. the Senate COM
mtttee or any one else.
NO authorized statement has ever
been made by US as to the actual
purchase price of the Star. although
heea repeatedly published. But since
a man Of Mr.. Vanderlip's standing
comes out boldly and tells the world
that we have no financial standing,
hitting US In an apparent effort to
throw mud at the Harding admins
tration in general. we are willing to
Earade our private business affairs
on the ground that there is a public
interest and official demand for the
details.
Purchase Price s3sO.OOO.
"The actual purchase price of the
Marion Star. including every share
of stock, was s3S0,000. The con-
tract with, President Harding was
signed at the White House two days
before he left for Alaska upon the
payment by US of $4,000 in cash. The
contract provided that other pay
ments and details of the transaction
from Alaska. for which purpose he
had planned to stop at Marion.
"Of the s3S0,o00 Mr.. Harding was
to receive S263.000, the remainder Of
stock then being held by Star puen, en-
dent 100000 in cash: INCLUDING the
$4,000 paid to him in Washington.
and to turn over to him preferred
stock In the reorganized Harding
100000. In addition the President
was to sign a contract of employment
with the Star as associate editor at
q salary of $4,000 per year. This
arrangement constituted compro =
mise on the price and as a result of
profit from the syndication OF his
writing.
Earnings Of Star.
THE earnings of the Star over a
period of several years averaged re-
turn of 10 per cent on the full pur-
chase price. These facts are given to
show that Mr.. Tanderlip does not
know any more about the value Of
the Marion Star than he does about
the men whose financial standing he
has assailed or the price paid for the
Star.
"The important position Mr.. Wander
lin occupies in the financial world. his
former connection with the biggest
banking interests and the fiat, un-
qualified and unjustified charges ne
made constitute the worst and most
damaging kind of slander. Mr.. Moore
and / have notified Senator Lenroot.
chairman of the Investigating COM
mittee, that we will be in Washing
ton tomorrow ready to give his com
mittee any Information 1t may want
Unless Mr.. Vanderlip falls absolutely
fiat before the committee. l should
like the privilege of appearing before
it. l predict. however, that the whole
thing will be thrown out In disgust.
nEEENnS SALE ACCOUNTS.