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172 future, [[underlined in red]] on which may depend the success on the downfall of our enterprise Karpen [[/underlined in red]] when I asked him a couple of weeks ago whether he would be willing [[left margin red vertical]] Trick of Karpen! [[/left margin red vertical]] to go me half or one third in the purchase of [[underlined in red]] two million Dollar block of stock. [[/underlined in red]] told me that [[underlined in red]] neither he nor Karpen Brothers had any available money to spare and needed it all: [[/underlined in red]] The only thing [[underlined in red]] he suggested was to let the Bakelite Corporation [[left margin in red]] !! [[/left margin]] buy the stock and declare [[/underlined in red]] a stock dividend of it and then [[underlined in red]] distribute it amongst our stockholders. [[/underlined in red]] This of course is an [[underlined in red]] easy and [[strikethrough]] exp [[/strikethrough]] inexpensive way for Karpen to get a large amount of stock without risking himself [[/underlined in red]] [[end page]] [[start page]] 173 [[underlined in red]] a Dollar [[/underlined in red]] [[red]] !! [[/red]] But [[underlined in red]] 400$ a share [[/underlined in red]] is [[underlined in red]] 50$ too much [[/underlined in red]] even as a speculative investment and will impoverish the Company by that amount. furthermore it [[underlined in red]] will deplete suddenly its reserve fund by $2000000 [/underlined in red]] at the time when we must be prepared to use all our reserves for pending developments in the Research division. [[underlined in red]] What's the use of spending every year 400000$ in research if finally we have brought out something good we cannot do it justice by lack of money [[/underlined in red]] Furthermore the [[underlined in red]] tax commission [[/underlined in red]] would [[underlined in red]] find it very strange [[/underlined in red]] that after we have declared every year [[underlined in red]] that we must build up reserves for the coming needs we suddenly allow a large group of stockholders to withdraw 1/3 of our reserves