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60/ [[left margin in red]] British Bank conditions bad [[/left margin in red]] [[underline]] July 1 [[/underline]] Went to Bank with Cooper. Drew 50$ in Am. money + 25$ in pounds = $75 in all. This in addition to money drawn from Bakelite Ltd = 20 + 15 + 30 = 65£ [[strikethrough]] The d [[/strikethrough]] Had a chat with Director of the Bank & he says [[red underline]] Banking condition about as bad as in U.S. [[/red underline]] on account of frozen credit, and unwillingness of lending money at long terms and or anything but liquid collateral. Conference with Potter & Kingsbury. [[note in left margin in red]] Imperial Chemicals want join [[red underline]] Bakelite [[/red underline]] [[/note in left margin in red]] Potter says has had visit of Mr Wadsworth, vice Chairman of Imperial Chemicals Ltd, the great British Chemical Trust of which my friend [[red underline]] Lord Melchett [[/red underline]] was the head until his recent death. [[strikethrough]] He w [[/strikethrough]] Wadsworth was very friendly but outspoken. [[left margin]] Imperial Chemicals wanted to go in synthetic resins but would prefer acquiring an interest in Bakelite Ltd. Not a controlling interest but one which would insure them at least one director etc. - [[red underline]] Potter had told them we needed no money [[/red underline]] but matter would be submitted. My opinion was asked. I told them that I was not averse provided it could be done without detriment to the present position of Bakelite Ltd This might be done by an Exchange of stock (to this [[red underline]] Kingsbury & Potter both strongly objected [[/red underline]] because they are not much impressed by stock value of Imperial Chemicals,) or by a further emission of stock to be purchased by Imperial Chemicals. But before doing so, it would be necessary to carefully inquire into the finances and still more the present personel. (I was [[end page]] [[start page]] 61/ [[left margin]] Imperial Chemicals weakness [[/left margin]] told by [[red underline] Kingsbury and Potter [[/red underline]] that the successor of [[red underline]] Lord Melchett, [[/red underline]] (Mr. Cowan?) does not begin to compare with Melchett, altho' the papers announced differently) It would be necessary also to find out the prospects of [[red underline]] Imperial Chem. [[/red underline]] A few days before, Potter had told me how absurdedly the pompous and ignorant salesmen of Imperial Chemicals [[strikethrough]] went around offering [[/strikethrough]] who are [[red underline]] mostly retired army or naval officers, [[/red underline]] went around to our customers offering them their goods, and unable to give any technical directions saying: [[red underline]] "These are the goods, this is the price, try them and let us know." [[/red underline]] - The men go [[red underline]] out in pairs [[/red underline]] instead of alone. One knowing [[strikethrough]] kn [[/strikethrough]] nothing, the other very little more. A letter had been received by Potter from [[red underline]] Kasanubu [[/red underline]] telling that [[red underline]] Brunner Mond & Co were offering phenol plastics [[/red underline]] at a much reduced price in Japan. [[left margin in red]] British Bakelite invested capital [[/left margin in red]] I submitted that if we found any advantages in taking in Imperial as stockholders it might be done in [[strikethrough]] selling them [[/strikethrough]] increasing [[strikethrough]] the [[/strikethrough]] ^[[our]] companys capital by the amount it had [[strikethrough]] loaned [[/strikethrough]] borrowed for the erection of the new plant, and then we might take a part of the loan as stock. But our proposition not to exceed the presently existing proportion of stock we now hold. - That I had formulated this attitude when in 1926 I reorganised the company. Mr. Perkins at [[red underline]] that time told me that if we had 75% of the total stock we would be in full control [[/red underline]] of the Company. - I [[red underline]] told him at the time that this was exactly [[/red underline]]
