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[[left margin in red]] Karpen [[/left margin]]
[[red underline]] our investments over a long range of years, Karpen declared it a very favorable record as compared to the much larger losses banks and investment companies had suffered during the hectic times. [[/red underline]]
I showed to [[red underline]] Karpen that he and R&H by insisting the issue of a stock dividend of preferred [[/red underline]] 6 1/2% cumulative, [[red underline]] had obligated our corporation to a compulsory ^[[annual]] dividend [[/red underline]] ^[[nearly]] equal [[red underline]] to 10% on the common [[/red underline]] and [[red underline]] had bound our assets to an extend of 1 1/2 times our common stock capitalisation. [[/red underline]]
[[left margin in red]] Cumulative dividends n.g [[/left margin]]
We had already paid this year 6% on the common; so that in the worst year of our history we [[strikethrough]] had [[/strikethrough]] ^[[were]] already [[strikethrough]] des [[/strikethrough]] committed to 10+6=16% and that this distribution [[strikethrough]] would [[/strikethrough]] depletes to this extend our rapidly dwindling quick assets
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from marketable securities. That he [[red underline]] should bear in mind that the present stock issued is the result of a 3 to 1 share stock dividend [[/red underline]] so that any [[red underline]] stockholder to day [[/red underline]] who get 6 1/2% ^[[on his]] preferred gets in reality [[red underline]] about 28% to 29% on his original investment.  
[[left margin in red]] dividends [[/left margin]]
This at a time when most of our operations are at [[strikethrough]] a l [[/strikethrough]] carried on at a loss and when we soon shall have to write off our loss of $200000 in Italy and probably several bad accounts and when we are already pledged to several additional expenses. [[/red underline]] The result was that my [[red underline]] recommendations were accepted unanimously [[/red underline]]
[[underline]] Sept 18. [[/underline]] [[red underline]] Karpen [[/red underline]] still here. He told to George privately that it would be [[red underline]] desirable to take up negotiations with Dupont for merging our company [[/red underline]] What I [[red underline]] believe is that his firm [[/red underline]] is [[red underline]] short of money and would [[/red underline]]