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during one of our early interviews and which I presented as of such importance that if they were not accepted [[red underline]] there was no use of going further. [[/red underline]] This particular stipulation stated clearly that in all comparisons as to assets and ratio of earnings we [[strikethrough]] mus [[/strikethrough]] shall [[strikethrough]] consider as [[/strikethrough]] do as if there were no preferred stock and only calculate on Bakelite common with the understanding that [[strikethrough]] every [[/strikethrough]] [[red underline]] one share of Bakelite [[/red underline]] Common carries with it [[red underline]] 1 1/2 shares[[/red underline]] of [[red underline]] Preferred A. [[/red underline]] - I insisted furthermore that I did not want to be penalised for [[red underline]] an act of accommodation towards some of my [[/red underline]] stockholders by issuing this preferred stock. - That furthermore [[red underline]] this pfd could be retired at my own volition any time I decided to do so. Hays agrees with me fully. [[/red underline]]  Also hinted to him that if U.C&C do not accept my proposition we 
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might try [[red underline]] Dupont, [[/red underline]] which besides being a large corporation had a much longer existence and the men at the head, well and long known had always kept up the best Dupont family traditions [[red underline]] instead of being merely a few lawyers and financiers who controled the destinies of U-. C&C. [[/red underline]] Other points are in favor of [[red underline]] Dupont [[/red underline]] namely that they have already an [[red underlined]] immense varnish [[/underlined]] and [[red underline]] paint trade [[/red underline]] which would be an enormous [[red underline]] simplification [[/red underline]] for [[red underline]] our newly created varnish department. [[/red underline]] Besides [[red underline]] their control of General Motors [[/red underline]] would insure us a most important market. I asked him how [[red underline]] R&H [[/red underline]] were getting along with [[red underline]] Dupont. [[/red underline]] He says they were well satisfied and that the exchange of stock of the two companies had been made soley on the rate of earnings. 
Short directors meeting, Karpen's absent, all others there. [[red underline]] Sales are still dropping as compared to last year [[/red underline]]