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174
[[red underline]] our losses in Italy [[/red underline]] and our expenses in [[red underline]] Pantone [[/red underline]] as well as other deductions for [[instant?]] drop in market value below book value of our [[strikethrough]] reserves [[/strikethrough]] bonds and stocks carried as liquid reserves. - [[red underline]] Prospects in business look gloomy everywhere. But I fail to see any [[/red underline]] evidence that any of our [[red underline]] departments has [[strikethrough]] toud [[/strikethrough]] made any reduction in its expenses. [[/red underline]] Our [[red underline]] net earnings [[/red underline]] thus far in 1931 are decidedly [[red underline]] below those of 1930 [[/red underline]] for same period and every succeeding month has been less than preceding. A [[red underline]] serious situation which does not seem to be appreciated sufficiently by all. Each head of department ready to criticise the other and [[/red underline]] [[black and red underline]] all [[/black and red underline]] [[red underline]] criticising the Research Department. [[/red underline]]
I have sold all my stocks purchased since 1929 and of which the market value has dropt lower since the further depression; so as to know the benefit of establishing my losses and their deduction from my income Taxes 1931.

Transcription Notes:
Dr. Baekeland should have numbered this page "184"