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Correspondence of Nancy Belle Johns, Widow of Graham F. Johns, Sr. Letter from Nancy Belle to Evelyn Johns Salisbury Winchester, Kentucky Dear Winnie, Evelyn and Herbert: My, what royal hospitality you dispense! Father and I so thoroughly enjoyed being with you. It was so sweet of you to have us stay for supper and I have been telling all the family what a good one it was. Fried apples and pork chops have always been my favorite menu. It surely is nice to get to see all of you ever so often and Winnie was so thoughtful to make arrangements for us to see the hospital. It really is something to be very proud of. After leaving Winnie, we went to the farm and I had a long tramp over the timber with the State Forrester and also talked with the Soil Conservation Agent, a Mr. Johnson who also met us there. A great deal could be done to improve the farm but I wonder just how much we can do being so far away. Returning to Prestonsburg, I called on Joe Harkins at his office and incidentally, met Scott. After exchanging cordial pleasantries I maneuvered the conversation to the Graham Coal & Mining Company. This I learned: Joe has a certificate book in his private vault in his office which contains stubs (where certificates have been taken out) and also some remaining certificates – whose, I don’t know – of the stock holders of the Graham Coal & Mining Company. He not only verified what we already knew about the ownership but he gave me additional information. This I copied as he talked. Your grandfather Johns had 100 shares.
He gave to Lindsey 3
shares
He gave to Emma
3 shares Also at Mr. Johns’ (John Graham Johns) death, there remained 80 undivided shares for his 5 children or their heirs or 16 shares each. From the above, this gives 21 ½ shares to Graham and 21 ½ to Lindsey with 19 shares to each of the three first children, Tom, Elizabeth and Emma. Joe admitted that checks came regularly from the KY. West Virginia Gas Company for the above stock dividends but insisted that it all practically went for various and sundry taxes. Then, I asked point blank for an accounting or audit (in a very friendly way, I asked it, so that he did not take offense) but he kept insisting the stock was practically worthless, to which, I asked then if he would sell his part. He said no, that he was only keeping it for a possible nest egg. Finally, I said that as I was the legal guardian for my two children and as they were already past twenty one, I felt that I should be able to give an accounting to them. Then, Joe offered to compromise by saying that I could copy the books. I told him I was no accountant but would pay someone to do this for me. He said positively he would permit no one to see his books, that his business was private – or Evelyn, that was the gist of his words. I may not be quoting exactly. Then he said finally, that after April fifteenth when all taxes had been completed for Federal income, State, etc., that he would let Bill May in Bank Josephine copy his record, that he trusted him but no one else. I realized that I had pushed the issue as far as possible on this visit, so only remarked, that as long as 25 years had already gone by without an accounting, we could go along another three months, then bid him goodbye and invited him to come see us in Winchester. However, I have no intention of waiting three months if this information is available from someone else, so have already written to the Kentucky West Virginia Gas Company for full details. I do not mean by the tone of this letter to infer that the books are not alright, but as stock holders, all heirs have a legal and moral right to be kept acquainted with the operations of the joint company. As soon as I hear from the Gas Company, will advise you. Again, thanking you for your hospitality to Father and me and assuring you it was so much pleasure seeing all of you again, I am…
Most
Sincerely, Letter from Nancy Belle to Mr. Joseph D. Harkins, AttorneyWinchester, Kentucky Mr. Joseph D. Harkins Dear Joe: It is always a pleasure to see you and chat over family affairs. I appreciate the information that you gave me which was recorded in the Certificate book of the Graham Coal & Mining Company which shows the shares held by each member, the total being 300 shares, 21 ½ shares as Graham Sr.’s holding in this corporation. As you said, this might prove a very nice nest egg sometime. I also appreciate your expressed willingness to cooperate in having an audit made of the corporation as this has never been done, so that we who participate in the dividends will have a tangible record of disbursements made to each holder of shares. The only thing, I would like to have this done immediately and not wait until after April 15th. I will probably be away at that date, perhaps for several months, and I want to get this matter cleared and have a record on file in my office for my two children to whom I am responsible as their legal guardian. Both have been of age for some time and it is my desire to clarify to them their holdings. As you advised me Mr. William May, your Bank Josephine auditor, will be busy until after April 15th. I feel certain that another auditor can do this work at once. Any certified public accountant that you suggest will be agreeable with me. I would appreciate advice as to his charges before starting the audit. I am sure that you will approve this as good business as all heirs have a legal and moral right to be kept acquainted with the operation of a jointly owned company or corporation. Do stop and see us when you are passing through Winchester and with my very kindest regards, I am,
Most
sincerely Copies Letter from Joe Harkins to Nancy Belle JohnsHarkins Law Offices Dear Nancy Belle: I was delighted to see you when you were in the office a few days ago and was pleased to have your letter of January 26th. The information I gave you was that there were 322 shares of stock of the Graham Coal & Mining Company outstanding, and not 300. Of this amount, 100 shares was owned by my Father in his lifetime, 100 shares owned by H.D. Johns, and 10 shares was owned by Alice Begley. During my brother’s lifetime, the H.D. Johns Estate sold us their shares at the price of $5.00 per share. At another time, I do not recall at the moment, whether through negotiations with my brother or myself, the 10 shares of stock of Mary Begley was purchased at $5.00 per share. Frankly, I very seriously doubt whether the amount we will ever get out of the 210 shares of the property we own will even return to us the $5.00 per share we paid the H.D. Johns Estate or Mary Begley for their interest. The 100 shares issued in the name of Grandpa Johns was partly divided by him, three share to Uncle Tom, three shares to Aunt Emma, three shares to Lindsey, five shares to Miss Fannie, three shares to Graham, Sr., and three shares to one other, making a total of 20 shares transferred by him, and there was certificate for 80 shares issued in his name. Practically of the persons to whom these small certificates of stock were issued are not dead, but none of the certificates have been transferred to any person. For instance, the 5 shares of stock still stands in the name of Mrs. Fannie Johns, the stock issued to Aunt Emma stands in her name, and the stock issued in the names of the other heirs stands in their respective names, and the 80 shares of Grandpa Johns stands in his name. Consequently, neither of your children own, nor have title to 21 ½ shares of the stock. However, this might be the correct calculation if the shares of stock were all divided and transferred between them so as to pass the legal title to the respective owners. I did not say that this might prove to be a very nice nest egg sometime, but I did say that the stock is practically worthless and I would not give $5.00 per share for any of it outstanding. I did say that I would willingly cooperate in having an audit made of the corporation, and I do know that every dollar which has ever come into the hands of the Treasurer of the corporation has been paid the respective stock holders in proportion to their holdings, less such items as property tax, income tax, corporate license tax, and the other necessary expenses incurred in looking after the reports which have to be made in regard to the corporation. I also said I would cooperate in getting together all the records ever made as to corporation, but I further said I would not do so, for I knew how busy we are here at the office, until after the 15th of April; and I reiterate that I would be willing to assist in going into this matter after the 15th of April. Frankly, I do not know which way to turn relative to some auditor whom I would be willing to turn over the papers and records to, other than Bill May, and knowing how busy he will be until after the 15th of April, I could not ask him to do anything in this matter until he could find it convenient to do so. Neither would I say we would be willing to pay 210-3 22ths of the cost of making such an audit. I know this property and at different times have tried to convert it into an income producing property and proposition, I have made the oil and gas leases, and have received a small amount of royalty from it that being the same amount I get from the thousands of acres which we own ourselves, I have attempted to lease it for coal proposition on different occasions, but have found no one, as I now recall, who was willing to do anything or who could find any mineable or merchantable coal on the tract; and knowing the property as I do, I fear you have a much exaggerated opinion of the value of this property. I do not question in any way your right to have an audit made which you might desire, and from time to time when portions of my own business which would be worth to me much more than what little there could be in this company for us, I will be glad to help out and corral all the papers and records I can locate and let an auditor see them here. However, any auditor selected would have to pass my approval in the sense as to whether I would surrender the papers to him to work over, or furnish him room even in my own office to do this work, neither is the Harkins estate as said supra, willing to pay any expenses of such an audit, but you want to send an auditor here, why then I shall give him such time during different days when possible without neglecting my own business, and be of such help as I can. Further, I not you did not send copy of your letter to Aunt Lizzy nor Uncle George, however, I shall send copy of this reply to them. All good wishes.
Yours
very truly Cc: Mr. George Archer Mrs. Elizabeth Robinson Note clipped to below letterEvelyn, An important thing acurs to me as a way of establishing a value to this stock. WHAT did Nadia sell or mortgage to get the money a couple of years ago for her house payment? I have never been able to learn where she got this money. Was it from Joe Harkins – the Graham Coal & Mining Stock – or Mr. Archer, from Lease 291 Fannie C. Johns et al, to the KY. West Va. Gas Co., gas well royalty. Nadia does not know apparently just where the money came from. N.B. Letter from Nancy Belle to Evelyn Johns SalisburyWinchester, Kentucky Dear Evelyn, Winnie and Herbert: Am still up against a tree as far as getting any information regarding royalties due or paid from leases made on mineral rights. I have written to the following: 1. Ralph Archer for a breakdown of money paid by Mr. Archer to heirs while he was trustee. This would include royalty from the Sandy Valley Coal Company from 1944 for five year period. Also, money paid by Kentucky West Virginia Gas Company until July 1, 1951 when he resigned as trustee. 2. Kentucky West Virginia Gas Company, asking what royalties they have paid to the Graham Coal & Mining Company for period of lease. If Ralph would send a financial sheet showing what is asked, it would clarify what could then be credited to the Graham Coal & Mining account. I feel quite certain that Mr. Archer kept accurate accounting on this, paying each heir what was due, but at the same time, I feel that each heir would like to know what the Gas lease paid and what The coal lease paid per year. As you are “on the ground” perhaps you could get an accounting in some form from Ralph – then, as mentioned above, a breakdown of the royalties paid, would show what has been paid to the heirs by Joe Harkins for the Graham Coal & Mining Company. As you saw by his letter, Joe shows no disposition to make a voluntary accounting himself. Which brings me to something I feel that I should tell you in strict confidence. Yesterday I was told by an attorney in Lexington that Joe has been adjudged a “mentally incompetent” by the Court, and been removed as attorney in a case that he has hopelessly messed up and which involved a very large amount – and that they are afraid he is now insolvent. Further, that title for over 2.000 acres of land had been stolen from a land grant company, which had cost him $70,000 to come clear. I think it is high time for all of us to get a clear certificate of title to the shares owned in the Graham Coal & Mining Company, get an accounting and know exactly where we stand. Ralph Archer should fully cooperate in the above, so as to help in this. Evelyn, please burn this letter. It is written only because I feel that you as well as my children should have what is theirs legally – little or much. Pleas write me the information asked in my last letter to your regarding where Nadia got the money from at Prestonsburg. Also, please give your suggestions for clearing the above muddle. Sincerely, Nancy Belle PS: We read with much interest about the rich Germanium Deposit found near Prestonsburg. What about a test on our property.
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