Endorsed on back by D. W. Lake and L. J. Ostasek. On back: Pay to order of Renata Lake by Donald W. Lake. (Signed:) Renata Lake. Union Bank of Commerce, Cleveland, Ohio. JACK & HEINTZ, INC. No. 2895 CLEVELAND, OHIO, September 25, 1941. Pay to the order of Donald W. Lake, $1,500. Union Bank of Commerce, Cleveland, Ohio. E. S. BENEDICT. EXHIBIT No. 37 MEMORANDUM-PROFITS ON NAVY CONTRACTS (Pp. 4 and 5 of Navy auditors report, starting at asterisk on p. 4, ending at "Compensation paid to officers.") The prime costs of JH-5 starters produced under Navy contract 82165 for the quarter October 1 to December 31, 1941, were: The profit on each starter, sold to the Navy for $600, was therefore $328.23, or 54.71 percent of unit price or 120.78 percent of cost. (From exhibit 8 attached, copies of cost summaries kept by contractor) The contractor's own records authenticate the above figure. Average cost analyses prepared by the contractor as of June 30, 1941, are as follows: Contracts awarded to Jack & Heintz, Inc., by the Army and Navy prior to Mar. 1, 1942 Mar. 8, 1940. Sept. 26, 1940. Total.. EXHIBIT No. 40 Investment in Jack & Heintz, Ltd., made by stockholders FOR STOCK OR LOANS FOR WHICH STOCK WAS LATER ISSUED BY LOANS NOT LATER CONVERTED INTO STOCK (FROM CASH ADVANCE ACCOUNT) BALANCE OF CASH ADVANCED APPLIED TO STOCK PURCHASES (FROM LOAN AC GENTLEMEN: Please pardon our delay in replying to your letter of February 13, but the writer had been out of town. In reply to your questions, we wish to advise as follows: 1. We moved our plant from Palo Alto due to a strike being called on us by the machinist union in that territory and we moved our complete plant to Cleveland, Ohio, where we are now operating under a union agreement with the machinist union here in Cleveland, which has been satisfactory, due to the cooperation received. 2. The delay caused us by forcing us to move back to Cleveland, delayed our production approximately 2 months, but by working night and day, we will still meet all schedules as called for in our contracts with the Army and Navy. 3. The union in the Palo Alto territory demanded a closed shop, although only 5 of the men we employed out of 40 that we had working were men from the union headquarters and none of these 5 members of the machinist union had complained in any way, as they all stated that they had the best positions and working conditions they ever had and regretted leaving our employ, although they had to because the union called the strike. None of the other men left our employ and there never has been any complaints whatsoever from any of our men over anything in any way shape or form. We now have over 300 men in our employ. Assuring you of our cooperation, we beg to remain, Very truly yours, |