They should also consider the increase in the value of the land in the past 10 years, equal in the opinion 

 of the trustees to between 15 and 20 per cent., and the further increase in value of the property as a 

 whole because it is a fixed site for a well established and very successful business, which it would be diffi- 

 cult, if not impossible, to duplicate today. 



On the other hand it can not, in the opinion of the trustees, fairly be said that the buildings and machinery 

 have increased in value. Increased cost of construction has, however, undoubtedly offset the depreciation. 



The trustees believe that the proposition placed before the stockholders by Burroughs and DeBlois 

 has great merit in the fact that it brings lessor interest and lessee interest together in the development of 

 a business which ought properly to be a single interest, and thereby the difficulties in making improve- 

 ments toward the expiration of the leases are avoided, but its terms do not appear to the trustees to 

 have given sufficient consideration to the increased value of the property, the present earning power and 

 the accumulated surplus of 5 per cent. 



EDMUND D. CODMAN 

 JOSEPH B. RUSSELL 



j. Trustees 



