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Messrs. Price, Waterhouse & Company

- Page II -

June 17th, 1941

4. The above notes and accounts resulted from bonafide transactions, and do not include charges to customers for works of art shipped either on consignment or on approval.

5. The notes and accounts receivable included in the foregoing summary are not subject to reduction on account of allowances, guarantees, returns or other credits, except as mentioned below.

6. All advances to directors, officers and employees of the company as at December 31st, 1940 are included in the respective total shown on the foregoing summary.

7. The above notes receivable of $8,461.55 and one customer account of $3,625.00 are considered to be of no value at December 31st, 1940; in addition, one account of $1,050.00 is in the hands of our attorneys for litigation; this, however, is believed to be collectible. Included in accounts receivable from stockholders and employees is an amount of $20,855.70 owing by the Estate of René Seligmann which is subject to adjustment. The balance of the accounts are considered good and collectible. In accordance with previous practice, we have not provided a reserve for bad debts, nor has any other provision been made on the books at December 31st, 1940 for the above losses.

As instructed by us, no confirmations of the outstanding notes and accounts were obtained by you from the respective debtors in connection with your present examination.

Very truly yours,

Jacques Seligmann & Co., Inc.

Germain Séligmann
President