Agency: FBI
Originator: FBI
From: WALTERS, VERNON G.
To: DIRECTOR, FBI
Document date: 02/21/1963
Document type: PAPER, TEXTUAL DOCUMENT

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Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Note).

DATE: 11-14-2017

JFK Assassination System

Date:

4/21/201

Identification Form

Agency Information

AGENCY: FBI

RECORD NUMBER: 124-10278-10469

RECORD SERIES: HQ

AGENCY FILE NUMBER :

29-31889-65

Document Information

ORIGINATOR: FBI

FROM:

WALTERS, VERNON G.

TO :

DIRECTOR, FBI

TITLE:

DATE: 02/21/1963

PAGES:

55

SUBJECTS:

DEB, ASSOC, BUSS, BANKS, LOANS, APPRAISALS,

VERHELLE, JOSEPH F., INTV

DOCUMENT TYPE: PAPER, TEXTUAL DOCUMENT

CLASSIFICATION: Unclassified

RESTRICTIONS : Consulted

CURRENT STATUS : Redact

DATE OF LAST REVIEW: 06/25/1996

OPENING CRITERIA: APPROVAL OF DOJ

COMMENTS: REFERRED TO DOJ, RPT, TABLE OF CONTENTS PAGE2

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Information compiled in 1962 by FDIC Examiner

THOMAS E. LINDSEY at Cleveland, Ohio, and made available at

Detroit by Department Attorney

WILLIAM P. FRENCH, included

the following data from records of the Credit Department,

Central National Bank of Cleveland, concerning an application

dated April 14, 1958 from The Alvin Naiman Corporation to

increase to $375,000.00 (from an existing balance of

$101,750.00) a loan secured by chattel mortgages on

equipment:

"PURPOSE OF LOAN

"The subject has an option to purchase a stone quarry

27 miles directly across Lake Erie from Cleveland, in

Canada.

The purchase price of 180 acres of land plus

equipment appraised by the Air Compressor Rental Co.

at $228,050 will be $410,000.

Of this amount,

$165,000 will be paid as a cash downpayment, and the

balance will be payable by the ton on rock quarried and

shipped.

"This quarry is expected to produce 700,000 tons of

stone the first year and at least 1,000,000 the next

two years with the possible peak of 1,500,000 tons.

The selling price will be at least $1:00 per ton.

and profits are conservatively estimated at 40g per

ton. The present operators produced 300,000 tons last

year working one eight hour shift six days a week and

we are told that the subject contemplates two eight

hour shifts six days a week, with greater efficiency

in production.

"We understand that the subject now has irrevocable

ten year contracts with two users of this type of

stone who will take all available stone up to 1, 500,000

tons. Herron Testing Laboratories has tested this

stone, and it is found to meet specifications for Ohio

roads.

"The stone will be shipped to Cleveland by boat and it

is believed that these cargo boats can make a one trip

turn-around each day

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"We are told that this property has only about one

foot of over burden, which compares favorably with

another quarry which was under consideration, where

the overburden was six feet.

"In addition, the crushing of this volume of stone

will produce about 100,000 tons of flux, which is a

valuable ingredient for steel making.

This, we are

told will produce about $100,000 income in addition

to the aggregates profit of 40f per ton.

"The $275,000 of new money which the company will

receive under this loan application will be used as

follows:

"Cash payment for quarry

Additional equipment

Working capital

$165, 000

73,000

37,000

$275,000

"In addition to the $37,000 working capital shown

above, the purchase will include 50,000 tons of

stone

which is ready for shipping and will provide

$50,000 of additional working capital.

"Mr. Naiman tells us that he intends to purchase

the following equipment in addition to that which is

now being used:

"Jawcrusher

Motors installed in crusher

2 Secondary

crushers

3 Screens

$33,000

10,000

23, 000

7,000

$73,000

"Our loan of $375,000 will be secured by:

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"a)

Equipment now owned by Alvin Naiman

Corp. which was appraised by Marks

Tractor and Equipment Co, on 2-8-56

at $650,900 and which

is

carried at

12-31-57 at cost of $644,200, de-

preciated to 60% of cost

"b) Equipment now on premises of quarry

to be purchased

"c) New Equipement to be purchased

$386,500

228,050

73,000

$687, 550

"GENERAL COMMENTS

"Favorable Factors

It estimates of profits which we have been given

are accurate, it appears that our loan can easily

be repaid from profits. (Contra 1)

"2. Our loan appears to be well secured.

"3.

The subject has no problem in obtaining a market

for the stone since ten year contracts,

for

purchase of as much stone as the guarry is

expected to produce have already been obtained.

"4.

It appears that proper tests have been made to

determine the quality of the stone and we

under-

stand that it meets requirements for Ohio roads.

"Negative Factors

"I.

told that this quarry is presently producing

tons of stone per year. Estimated profits

300120,000 on this production would be juet about

enough to repay our loan, without any allowance

for payment of the

balance

of the cost of the

quarry, except from cash gain on depreciation

(Contra 1)

"2.

The present operation has suffered due to the

steel industry.

Current liabilities exceeded

current assets at 12-31-57.

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4

"3.

The pro-forma balance sheet indicates total

unsubordinated debt of $833,000 against

adjusted net worth of $556,000 and current

assets of only $255,000.

"4.

The subject is contributing no new capital ford

this venture.

It is to be done entirely on

borrowed funds repayable from projected profits."

Also obtained from the above source was information

regarding a revised application dated April 21, 1958,

concerning the above proposed increase to $375,000.00

(present balance $101,750.00)

of a loan secured by:

"a.

all of the equipment of the corporation having

a net book value (pro forma) of $916,000:

"b.

pledge of $100,000 savings account in the name

of Alvin Naiman

"c. Subordination of $200,000 due the parent Janeway

Ventures, Inc. and

"d. subordination of $396,000 due Alvin Naiman.

"ADDITIONAL INFORMATION

"In addition to the basic description of the contemplated

stone quarry purchase, related in the basic writeup of

April 14, 1958, the following has been developed:

"The Niagara Crushed Stone Co. of Port Colborne is

presently in business producing 1,500 tons of crushed

stone per day on an eight hour shift. Sales

limited to local Canadian buyers.

can ran y

are presently

Prices for the stone

range from $1.35 to $1.45 at the quarry mouth and costs

of production are in the neighborhood of 50¢ per ton.

The operation is presently profitable.

"Present

management consists of five brothers who have

paid themselves well out of this operation.

They will

be replaced by a superintendent, hired by Mr. Naiman,

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"having 14 years operating experience with a firm at

Logansport, Indiana.

Mr. Naiman contemplates 16 hour

per day operation and increasing output to 3,000

tons per day with present equipment

"With respect to the company's ability to begin business

with sufficient working capital, the cost of the second-

hand equipment, which is to be purchased, has been

considerably reduced, as follows:

"Crusher - 30 X 42 - conveyor

Cost

Price New

and diesel

$

Conveyor belt

Four - 5 X 14! vibrating screens

with motors and drives

Secondary cone crusher 5}'

standard with motor

4 Ft. shorthead cone crusher

$ 15,000

25,000

3

1, 000

5, 500

16,000

24,000

15, 000

37, 500

10,000

35,000

4, 000

8,200

$ 63,000

$135, 200

"This was

possible because of an advantageous purchase

from American Cyanimid Company at Messina,

New York,

in connection with their hydro-electric plant develop-

ment.

175 Ft. of 30" conveyor

"The company is now operating with one 30 X 42" crusher,

feeder conveyor and diesel, and has a present capacity

of about 3,000 tons per day on two shifts - a total of

16 hours.

Mr. Naiman is sure productivity can be

increased by 25 per cent but, in any event, present

equipment can produce 200 tons per hour and they expect

productivity with the two crushers to be at least 500

tons per hour. .

This would increase production to

8, 000

tons per 16 hour day.

Even allowing for break-

downs, this rate of production should be more than

adequate to service the loan.

"With the 50,000 tons of stone on hand, representing

$50,000 in working capital, plus the loan of $275, 000

in new money over

and above the present loan, the total

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29-1432

"funds available will be $325, 000•

'Against this,

the quarry and plant and extra acreage will cost

$165,000, as previously related,

and the equipment

$63,000, for a total of $228,000

Mr

Naiman will,

therefore, have $97,000 of working capital available

at the beginning of operations.

"His major expense is for labor, which will not

exceed $4,500.00 a week.

As a matter of fact it

a week.

capital to begin operations.

Payment by contract

15 days after shipment, and not 15 days prox. as

has been suggested.

The company purchasing the

stone is adequately backed by important concerns in

this city and we have been assured that over $200,000

in advances are immediately available to it.

There

is every reason to believe the company's invoices

will be paid as agreed within

15 days.

"The company contemplates a six day operation and

conservatively estimates 5,000 tons per day.

Note this

is considerably

under the 8,000

potential

mentioned above).

They will be able to send three

boat loads of 10,000 tons each to Cleveland each week,

or a total of 30,000 tons.

As previously related,

the selling price is $1.00 a ton right at the

property.

The company is not concerned with any

cost except that of quarrying and crüshing.

Trucking, shipping, et cetera are the responsibility

of the purchaser:

"They are estimating a profit of 40 cente a to

however, assuming these

estimates are wrong

wide margin, we need only 17 cents a ton to pay the

required $120,000 annual payment on an estimated

volume of 700,000 tons.

On the other hand, at 40

cents a ton,

It is required that only 300,000 tons

be produced to meet the payments on our loan.

Anywhere between these two extremes of cost or level

of production would assure payment of our loan.

"With respect to cost of production, Mr. Naiman gave

us these figures:

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"Stripping and overburden

Drilling and Blasting

Loading and trucking at quarry

Screening and crushing

Per Ton

$

.06

18

10

•14

$ .48

"Questions have been asked relating to the cost of

labor.

With regard to the stripping operation,

this charge is mainly labor.,

In the drilling and

blasting operation 5 cents is for the fertilizer.

used us an explosive and the balane loading and

may be con-

sidered labor - or 13 cents a ton.

trucking can be considered at 50 per cent labor -

or 5 cents - and screening and crushing is generously

included at approximately 3 cents, mainly for

supervision.

"Stone sells in Cleveland for about $3.25 per ton.

The purchasing company will buy stone at the quarry

mouth for $1.00 per ton.,

Mr. Naimans costs arelimited

strictly to the quarry operation and the 48f cost

broken down above.

The

cost of stone laid down in

Cleveland is

estimated as follows:

"Cost of stone at quarry

Loading into

the vessel

Dut y

Unloading, etc.

Shipping cost

Trucking and delivery to site

Total Cost

$1.00

• 15

• 25

• 30

•60 = 65

•40 - .45

$2.70 =2.80

"Thereis no dockage cost in Cleveland since the dock

belongs to one of the using firms.

There is no real

dockage cost in Canada,.

since the

dock is leased by

the stone purchasing company at $7,500.00, but is

subleased to others for

$22,000 a year.

"The purchasing

company expects to have a 45¢ margin

per ton of stone sold and delivered to the job in

the Cleveland area.

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"COMMENT

"Mr. Naiman sincerely believes in the feasibility

and profit potential of this

venture

This is

evidenced by his pledge of $100,000 of his personal

savings to support this credit.

The company is

presently in operation and making money:

The cost

basis on which Mr. Naiman figures his potential

profits

seems supportable in current experience."

Also included with the above data were balance

sheet comments indicating a total adjusted. net worth

of $556,000.00 for The Alvin Naiman Corporation at

December 31, 1957:

It was indicated that the existing

Toan secured by chattel mortgages on equipment was being

paid as agreed, and no derogatory information was noted

concerning other accounts with Central National Bank in

the

names of The Alvin Naiman Corporation; its predecessor,

The Alvin Naiman Wrecking Company; its parent company,

Janeway Ventures, Inc.; ALVIN NAIMAN; ELIOT JANEWAY;

and

NATE DOLIN®

It is noted that copies of minutes of the Board of

Directors of ANC, as obtained by THOMAS E. LINDSEY, indicate

that on May 2, 1958, the president and secretary of ANC were

authorized to enter into a guarantee agreement with the Central

National Bank of Cleveland, to finance the purchase of the

capital stock of the stockholders of NCS.

The minutes

s also

indicate that on January 2, 1959, ALVIN NAIMAN reported that

National Acceptance Corporation

would loan $200,000 to pay off

a similar amount due Central National Bank of Cleveland, Ohio,

which would permit him to obtain possession of pass books in

the sum of $100,000 which he had deposited as collateral for

the $200,000 loan at the Central National Bank.

He would then

be willing to loan the corporation all or any part of this

sum as funds were needed. ANC was

authorized to execute its

note to National Acceptance Corporation in the sum of $200,000

to be used to pay off the $200,000 loan at Central National

Bank of Cleveland.

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