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An exchange of [[strikethrough]] both kind [[/strikethrough]] C&C shares for B.C shares based on ratios of book values & earnings (see above Aug. 25). That as matters now stood I was awaiting a better proposal from him. So we withdrew. [[red underline]] Townsend [[/red underline]] called my attention [[red underlined]] that they might purchase [[strikethrough]] Durez [[/strikethrough]] General Plastics Co. [[/red underline]] to which I answered that we had faced competition and would face competition in the future and that furthermore [[red underlined]] we might unite with DuPont [[/red underline]] if they were willing to an agreement similar to that of R&H. That [[red underline]] Dupont [[/red underline]] were a [[red underlined]] very well established concern, [[/red underline]] were [[strikethrough]] now in [[/strikethrough]] [[red underlined]] manufacturing [[/red underline]] all the [[red underlined]] same raw materials as C&C, [[/red underline]] furthermore had already a well organised paint & varnish business which would enormously simplify our labors of introduction in the branch, furthermore their control of [[red underlined]] General Motors [[/red underline]] might secure
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Us our [[red underlined]] largest customer [[/red underline]] for bakelite or varnish
[[left margin]] Sept. 9. Told George to get our balance sheet back to morrow. [[/left margin]]
[[underline]] Sept. 10. [[/underline]] Told to Swan, Sanford Brown, Rossi & Redman that offer of C&C was [[red underline]] unacceptable [[/red underline]] as it stood now and probably the whole thing was off. But later got telephone call of Townsend who wanted to see me urgently. He came to urge me to [[red underline]] meet Barret again [[/red underline]] because the latter thus far had not been able to explain me the good reasons for his proposal. Told him I had heard his reasons at our latest interview. He says, "No, you have not heard them all". So I told him [[red underline]] was perfectly willing [[/red underline]] to meet [[red underline]] Barret [[/red underline]] tomorrow morning to hear further.  Townsend says our ratio of cash assets per share are out of proportion of those of C&C, and tries to show me that this disparity should be changed in our ratio calculations. I calculated before him that even if we did this [[red underline]] the total cash value [[/red underline]] would then become over [[red underline]] 35 million Dollars [[/red underline]] instead of [[red underline]] 20 million [[/red underline]] as bid. But if I calculated an exchange with Dupont shares at $120 and