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OAL:R

3 East 51st Street
New York, New York
July 1st, 1937

Dear Mr. Seligmann:

I thank you for your longhand letter of June 21st, enclosing two checks in the total sum of $5,782.46 which I deposited with J. P. Morgan & Co.

Mr. Robbins and I talked over the matter of the suggested exchange of the quarter interest in the three Degas against the sale of the three paintings from the stock of Modern Paintings, Inc. To be quite frank with you, neither of us seems to fully grasp the situation. As I understand it and also related to it Mr. Robbins, it appears to be as follows:-

1. You sold three paintings from the stock of MPI for Ffrs. 175.000 (of which Ffrs. 45.000 is still outstanding).

2. You bought (for New York) a quarter interest in three paintings by Degas for Ffrs. 192.500 (difference over selling price Ffrs. 17.500).

3. You suggest including the quarter share in the three Degas in the stock of MPI; in other words, making it appear as an exchange by using the funds received from the sale of the three paintings against the sum to be paid out for the purchase of the quarter interest in the Degas.

We really have the two distinct operations made on a cash basis and it is not an even exchange of the three paintings against the quarter interest in the Degas.= MPI has been legally dissolved and its stock (inventory) turned over to Jacques Seligmann & Co. in full payment of their claim as well as yours (formerly Tessa Corp.).=

Mr. Robbins is under the impression that we cannot, from a legal point of view, acquire such new assets for MPI, and he also opines that such a transaction might get us into difficulties with the Internal Revenue Dept. Nevertheless he is studying this matter from all angels, and I should be greatly obliged to you for informing me whether my conception of the whole transaction is correct.

I should also like to have a credit note for the sale of the three paintings as well as full details regarding the purchase of the quarter interest in the Degas (especially from whom purchased and date of payment).

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