In order that a clear picture will exist as to the factual and legal questions which exist, a detailed historical statement is required.
Prior to 1935 there were two daily newspapers published in the City of Sharon, one known as 'The Sharon Herald Publishing Company' (Herald), and the other known as 'The News Telegraph Company' (Telegraph). In 1935, Herald was owned by four stockholders. For twelve years McDowell, one of the stockholders, had been the president of that company. In 1935, Telegraph was owned by three stockholders. Lartz was the general manager of Telegraph, and had been with that company for approximately ten (10) years. Prior to that time he had been with Herald. It is thus apparent that Lartz, having had a connection with both newspapers, could easily visualize the advantage of there being a single newspaper, rather than two competing papers, in the City of Sharon and vicinity. Lartz obtained a power of attorney from his associates and McDowell obtained a power of attorney from his associates, authorizing these two men to work out a program for consolidating the two papers.
Some of the seven owners were getting along in years and desired financial security. Lartz and McDowell were now interested in possible future profits. Accordingly, the financial structure and its division among the seven owners was fixed as follows:
7% Debenture 7% Preferred
Name Bonds Stock Common Stock
Dickinson $ 65,000.00 250 Shares 150 Shares
Aiken 200 Shares 450 Shares
Lartz 700 Shares
Buchholz 32,500.00 325 Shares
Ramsey 15,000.00 150 Shares 350 Shares
Pharmer 5,000.00 50 Shares 100 Shares
McDowell 750 Shares
Total Original Issue $ 117,500.00 975 Shares 2500 Shares
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