Evening star., 1931-12-04
Stockholder Plea
Ignored by Heads
OF Razor Concern
Letters Show Officials of
Old Gillette Co. Failed to
Supply Information.
Ev the Associated Press.

BOSTON, December A stock
holders plea for information regarding
the company's condition was ignored by
officers Of the old Gillette Safety Razor
Co., letters showed yesterday in the
hearing before master in the s2l 000,-
600 suit brought by the stockholders
against the directors of the old COM
pany
A letter, which protested against the
company's failure to give it's stockhold-
ers an accurate picture of it's condition
in September, 1890, was introduced
after John E. Aldred, New York banker,
had admitted knowledge that the COM
pany had gone In the red" for the first
time in its history in December, 1929,
and again in January, 1880, had been
withheld from the stockholders.
Circular Sent Out.
Aldred, one of the defendant direc-
tors, admitted under questioning the
fact that the company was lin the red"
was not contained in reports to the
stockholders. He also admitted a cir
cular had been sent out Ito reassure"
the stockholders.
Henry L. Stoddard Of New York was
the writer of the letter introduced. He
sent it to Frank j. Fahey, one of the
directors In it Stoddard said, when
the first break came last February we
were assured by your circular letter to
stockholders that all was well. Person.
ally, did not like the famboyant tone
of your circular and felt like selling out.
Since then not word has
come to us from the company"
Stoddard said he and other holders
of the stock remained in the dark while
newspapers and the financial centers
were filed with runlors and the Gillette
stock had been allowed to sink lower
and lower in price. He added, "* !"
1t seems to me and to others who have
confidently relied on those assurances
that We are entitled to some informa-
tion in denial Of the many harmful
rumors in circulation.
"One of those rumors I hope will not
be verifled Is that your company is con-
tent to let the price of stock collapse
in order to buy personally for Mr., Gil
lette, or for the company, enough stock
cheaply to exchange for Autostrop
stock. Z" Under the circumstances
1t seems to me your duty is to send an
other circular to the stockholders.
frankly stating the present condition
and prospects of the company. Surely
they are entitled to something besides
silence" -
The suit grew out of the purchase of
the Autostrop Co by the Gillette, and
stockholders charge certain directors
bought up large quantity of the GIL
iette stock at low prices to use in the
merger.
Testimony showed that Stoddard's
letter was sent by Fahey to Aldred with
letter which asked, will YOU and
Mr.. Fuller give. us some general sue-
gestions as to what we should reply to
thls and similar inquiries we are hav-
ing daiiy?" Aldred replied in a letter,
saying, In my opinion such letters as
this do not call for any answer"
Conscience Clear.
After the reading of the letters
Aldred was asked And you said the
other day that your conscience was
perfectly clear as chairman of the di-
rectors and chairman of the Executive
Committee of the Gillette Coz"
Yes" replied Aldred.
And you still think SOP" counsel for
the stockholders Queried.
Yes" Aldred said.
In answer 20 question Aldred said
the stockholders were not informed
That some OF the insiders" were dis
posing OF their stock, and a telegram
was produced showing that King G.
gillette, founder Of the company, who
a that time was In Europe, was reas-
sured that his information was incor-
rect and that the officials of the COM
pany were buying rather than selling
stock ~ Ae