Viewing page 71 of 84

This transcription has been completed. Contact us with corrections.

136
annual earning capacity. The only objection would be that altho Condensite went thru the same number of bad and preliminary years as we, the Redmanol Co on the contrary had the immense advantage of profitting from all our educational campaign our industrial and commercial experiments as to the best markets and best methods and started furthermore at the very best selling period profitting of all what we had done, but that an adjustment could be made to equalize our handicap.
For instance years 1911, 1912, 1913, 1914 were [[underlined]] bad [[/underlined]] years; 1915-16-17-18-19-20 [[underlined]] good [[/underlined]] years; 1921 was another bad year.  Thus making for Bakelite and Condensite 5 bad years out of 11 years or 5/11. Redmanol on the contrary
[[vertical annotation in red in left margin]] consolidation [/left margin]]
[[end page]]
[[start page]]
137
started in 1914 and adding to this 1921 had only 2 [[underlined]] bad [[/underlined]] years out of 8 or 2/8. that the logical way would be to divide total earnings of Redmanol calculated by our formula and divide equally by [[underlined]] 11 [[/underlined]]. Even then this would not make allowance for the fact that all what they had to do was to receive the full benefit of all what we had prepared at great expense and effort before they entered the field.
Bakelite has another handicap in its history.  When I started the Bakelite Co. [[/strikethrough]] the [[/strikethrough]] only a fraction of the total capital subscribed was called in. the rest was not needed and would never have been called in but for the fact that when we were ready to pay the first earned dividends we could not do so according to N.Y Corporation law, until all the full subscribed
[[[[vertical annotation in red in left margin]] Consolidation [[/left margin]]