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Of course [[red underline]] this is due to our disproportionate general expenses of which Research with its yearly outlay of about half million Dollars [[/red underline]] is the biggest item. [[red underline]] U.S. Steel recent report show that for [[red underline]] quite some time it has not earned its dividends [[/red underline]] and many [[red underline]] other hitherto prosperous [[/red underline]] companies are [[red underline]] operating at a loss. Yet I have every difficulty in trying to persuade any of our departments to reduce expenses. [[/red underline]] [[underline]] All [[/underline]] show it cannot be done. Pretty soon they will be [[red and black underline]] forced [[/red and black and underline]] to have it done. The only man who has began to make some cuts is [[red underline]] Allan Brown in his advertisement expenses. George B, Rossi Swan and Sanford Brown [[/red underline]] all point to [[red underline]] Research, but do not entertain reductions in office, factories, or sales dept expenses. [[/red underline]] Lucky thing that during all the past years I hammered into our
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directors the [[red underline]] absolute necessity for building up our liquid reserves. At that time they were all against me, even Hays called it "Dangerously large liquid reserves." [[/red underline]] They do not look [[underline]] dangerous [[/underline]] now since they are melting away rapidly by all the outlays and additional expenses we have to face
[[underline]] July 31. [[/underline]] Somewhat cooler.
[[underline]] Aug 1. [[/underline]] Beautiful bright weather Remained at Snug Rock. ^[[Bad]] [[red underline]] Financial [[/red underline]] situation in [[red underline]] England [[/red underline]] coupled with those of [[red underline]] Germany make [[strikethrough]] things [[/strikethrough]] general financial depression ^[[still]] more marked [[/red underline]] here.
[[underline]] Aug 2 [[/underline]] (Sunday) At Snug Rock all day.
[[underline]] Aug 3. [[/underline]] [[red underline]] Redman [[/red underline]] has come [[red underline]] back from Canada [[/red underline]] and reports himself in excellent health. So I shall be able to hold a meeting with him and Weith where we can calmly discuss how to cut expenses at Bloomfield