Viewing page 24 of 103

This transcription has been completed. Contact us with corrections.

42 
stock for every share of Bakelite common, the latter, to be accompanied by 1½ shares Bakelite pfd A 
If not accompanied then each share Bakelite Common to be penalised by a corresponding amount, equal to $150 
(100 + 50) [[strikethrough]] Preferred stock [[/strikethrough]] on assets or book value and 9¾ per share of preferred as earnings. In other words each share of Preferred A presented separately will be credited in exchange to an amount equivalent to 100$ for assets and [[strikethrough]] 9¾$ [[/strikethrough]] 9.75 for net earnings.
10/ [[strikethrough]] No [[/strikethrough]] Exchange to be exclusively on the basis of stock certificates and no money so as to prevent that Bakelite stockholders should have to pay government taxes
11/ Net assets and net earnings as described above by 
A & a and E & e to be established by the same accounting methods or appraisal for both companies with such suitable adjustments 
[[end page]]
[[start page]]
43 
as may be agreed upon 
12/ Provisions for Mr. Hylton Swan
13/ Ditto for Mr. Hays.
After some discussion [[red underline]] Barret thought all these conditions might be met, his only remark to the contrary was that it would be difficult to find a rule for carrying out these provisions. [[/red underline]] I promised him that I would find a suitable stipulation thereof:
I [[red underline]] told him that unless these rules could be accepted I was unwilling to go further as I felt it my duty to protect the interests of my associates. If this could not be done I would sooner cease all negotiations. [[/red underline]] He said he [[red underline]] thought [[strikethough]] [[me a]] [[/strikethrough]] there was no objection to this  principle. [[/red underline]] 
So then I proceeded to give him our earnings, assets, and dividends of the past and [[red underline]] trial Balance [[/red underline]] for end of 1929 as established by Lybrandt. He asked me whether he could have it. I told him I would [[red underline]] leave it to Townsend's discretion [[/red underline]] and [[strikethrough]] give [[/strikethrough]] leave it in the hands of Townsend or a director of Bakelite and not to Barret