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[[underline]] Sept. 7. [[/underline]] Sunday. [[red underline]] George came [[/red underline]] here at 2:30 P.M so as to discuss C&C matters and I to explain my findings. He agrees with me that present proposal [[red underline]] not acceptable [[/red underline]]. Cornelia came back from Adirondacks with Nina
[[left margin in red]] Carbide [[\left margin]]
[[underline]] Sept 8. [[/underline]] Meeting with [[red underline]] Townsend [[/red underline]] and [[red underline]] Barret [[/red underline]] again at latters office George B with me, at 10:30 A.M. Analysed proposal No:2 after telling that No:1 was [[red underline]] hopelessly out of consideration. [[/red underline]] [[strikethrough]] Showed [[/strikethrough]] Told him total figures of [[red underline]] 20 million insufficient cash value, furthermore [[/red underline]] if it were objected to increased preferred stock issue. He says preferred stock guaranteed by C&C would be worth $120 a share and [[red underline]] as good as a government bond. [[/red underline]] Told him I wanted no government bonds and was [[red underline]] willing to take my chances [[/red underline]] with C&C [[red underline]] common rated at 80 [[/red underline]] 
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[[left margin in red]] Reasons why of [[underline]] Carbide [[/underline]] [[/left margin]]
That [[red underline]] last year [[/red underline]] I [[strikethrough]] start [[/strikethrough]]  [[red underline]] sold my government bonds [[/red underline]] and had been investing in [[red underline]] industrial securities. [[/red underline]]
[[strikethrough]]He says he [[/strikethrough]] Asked him why not issue amount of new C&C. common ^[[shares]] equivalent to ratio of B.C. [[red underline]] Says he does not want to dilute their stock and [[/red underline]] they do not want [[red underline]] "to use the printing press," [[/red underline]] because directorate is against it, and furthermore they [[red underline]] would have to publish earnings [[/red underline]] and balance sheet of Bakelite to satisfy the exchange and this [[red underline]] might induce others to go in plastics.[[/red underline]] I answered that issuing shares for good assets and earnings is [[red underline]]no "dilution" [[/red underline]] of stock [[red underline]] but merely issuing certificates for good solid equivalent [[/red underline]] assets and value. - But that on the contrary his proposal is "concentrating" present stock in view of the fact that they would purchase the stock at 80 or less.