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[[red underline]] Asked George [[/red underline]] B here this afternoon so as to have a quiet [[red underline]] talk about present problems [[/red underline]] of Bakelite. Molinari and [[strikethrough]] why [[/strikethrough]] my reason against filing his Canadian patent for tar distillation altho' I do not object to American application. - Necessity of settling our status in Italy and Pantone and Canadian Bakelite so as to enable us to establish these losses from our ^[[net]] earnings this year instead of taking chances that next year if we make no profit or have losses we shall have paid this year too much revenue Taxes. 
[[left margin in red]] Gold Standard threat [[/left margin]]
Also told George that [[red underline]] if U.S accepts bimetallum or drops Gold Standard as England has done [[/red underline]] our ^[[liquid]] reserve [[red underline]] bonds etc will depreciate much [[/red underline]]
[[underline]] Nov 4. [[/underline]] Horne report of [[red underline]] first 6 months [[/red underline]] of 1931 which [[strikethrough]] show [[/strikethrough]] is far better than the following months
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[[left margin in red]] Loss! [[/left margin]]
show that [[strikethrough]] most of [[/strikethrough]] [[red underline]] even then we lost much money in molding mixtures department [[/red underline]] also much in the [[red underline]] air drying resins [[/red underline]] (due to considerable research and general expenses) The [[red underline]] only department were resins for grindstones, [[strikethrough]] and [/strikethrough]] [[red underline]] cement and varnish for laminated. [[/red underline]]
On m. m. we lost an average of 2 cent per lab. altho gross profit at factory was 4.1 cent per lb. [[red underline]] Total loss of this dept is about $90000 for first 6 months [[/red underline]] Paper plant [[red underline]] loss - $55000. [[/red underline]] Enamel 111000 or $1.14 per lab! Air drying $29000
The later months will show much worse.
                           Profit
The last 10 months show   4305.764
October 1931              $  2.700
notwithstanding $18000 income from securities and $6500 profit from Halowax. This looks so much the worse because every year before there was an upward swing of sales in September and October while this year the