Statement from David Mahmood, Chairman of Allegiance Capital Corp., responding to news of columnist and former 60 Minutes commentator James J. Kilpatrick’s death this week:

KILPATRICK INSPIRED ENTREPRENEUR’S LETTER TO SON

Dallas – August 19, 2010 – I didn’t agree with James J. Kilpatrick on some of his ultra-conservative views, but I

was so inspired by his defense of capitalism in the July 1975 issue of Nation’s Business that I wrote a letter to

my son who was attending college. I re-read it this week and was amazed at how accurate it is today. It began,

"I have found that the words 'businessman' and 'capitalist' are held in low esteem today by many young people.”

As scores of American students head back to college they'll soon be debating the value of capitalism with

professors who enjoy private industry-funded endowments. Negligent corporate giants like BP and Goldman

Sachs have in fact caused incredible harm to the nation, but the economic recovery still depends on the jobs

that successful businesses – especially small businesses – create. We can’t take them for granted.

In 1975 I wrote: “Businessmen who go out and either run or build a business are really making an investment

that benefits many people – and they're going to great risk and expense to do it…The businessman who works

hard to run his business successfully is investing in many cases all of his money, time and energy. And he is by

no means guaranteed success. Eighty percent of all new businesses fail within the first five years. If a

businessman is able to overcome these odds, it usually takes him many, many years before he accumulates

any wealth for himself. These businessmen, from the corner hardware store and bakery, to larger

manufacturing plants, are the people who create to a large degree the standard of living we all enjoy in this

country."

I sent a copy of my letter to Kilpatrick who responded by writing me and complimenting the fact that my

relationship with my son allowed for candid discussion. I have Kilpatrick’s response framed and hanging in my

office.

As we enter an era where entrepreneurs face capital gains tax increases, other tax increases and horrible credit

markets, I hope businesspeople today are writing their sons and daughters like I did in 1975.

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Kilpatrick Inspired Entrepreneur’s Letter to Son August 18, 2010

Note: Copies of David Mahmood’s entire letter and Kilpatrick’s response are available.

Media Contact:Katherine KirkpatrickVice PresidentAllegiance Capital Corporation214-217-7745; 214-929-0205 (c)kkirkpatrick@allcapcorp.com

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