Viewing page 118 of 185

This transcription has been completed. Contact us with corrections.

Written at Hadley Field
New Brunswick N.J
April 5, 1934

Dear Billy:

Acknowledging your letter of the 1st; thank you as usual.

I've forgotten what our setup was in regard to valuation for purposes of any new corporation tax they slip on at Washington these days. Would the .1% apply on the stock certificates or any nominal value or did you give me to understand it would be on appraised going worth at time of making the statement some time ago? In our case of conservation for orderly liquidation would the powers that be try to stick us on the basis of non-distribution?

Which brings to mind another question --where are we, and when are we, going to draw the line on simple liquidation as such and the income from rents interest etc which latter could be taxable on the basis of income alone? In other words, in your bookkeeping do you segregate so that in any final windup we are not running the risk of being nicked?

Is there any possibility of discounting Galvin McCann et al? Do banks these days even want mortgages? Of course, don't get the idea that I want to milk the Trust and jeopardize Mothers' position, and PAYING mortgaes are OK for income, naturally. But I would rather get out from under on the whole kaboodle if there is any remote possibility of losing more capital through mortgae default. Get my point?

The PHillips' method isn't bad. I wonder if he actually got in on the low point of the market and is now sitting as pretty as he hoped? He had the dope right if he got money enought to follow through I guess.

Henry ought to come through. By the way the Evans stock is doing very well right now but a comment I saw on it recently was that it wasn't a stock to hold because the type of business was of an article once sold and no repeat business except for repairs to equipment(freight loading device sold mostly to RRs) We've really got to see some way of getting back a return on taxes upkeep insurance etc on the OO House and Henry ought to cooperate to figure out a fair basis!

I don't know why I buy an Elks' Card every year but I suppose I might as well. I'm going to Detroit for a few weeks starting Monday and if you do not have chance to send the new card return mail send it the first of the week to me at Dearborn Inn, Dearborn Michigan--Oh! send it to N.J. just as well --it will be forwarded. Thanks. I'll send check what is it $12.00?

Best to all.

Your brother