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Canada on sick leave and A. [[red underline]] Karpen [[\red underline]] who has [[red underline]] his hands [[\red underline]] full in Chicago, as [[red underline]] Director [[\red underline]] of [[red underline]] Kaspar [[\red underline]] bank which has closed.
[[left margin in red]] Karpen [[red underline]] took [[\red underline]] 29000$ [[/left margin in red]]
[[red underline]] Karpen [[\red underline]] had put $38000 cash of Autopoint in that bank. - Which was reckless to put it mildly and contrary to our instructions. - Knowing that the bank was going to fail he withdrew [[red underline]] 29000$ [[\red underline]] from it. But he [[red underline]] owed the bank 29000$ for a personal loan. [[\red underline]] So he called immediately a meeting of the directors of Autopoint ([[red underline]] only Jacobs [[\red underline]] and [[red underline]] Dehli [[\red underline]] being notified. [[red underline]] So without our knowledge [[\red underline]] he obtained consent to borrow [[red underline]] privately 29000$ [[\red underline]] from [[red underline]] Autopoint [[\red underline]] funds with which he paid back his [[underline]] personal [[\underline]] loan, and gave to Autopoint his note and as [[red underline]] collateral "dogs & cat securities", [[\red underline]] namely, Continental Diamond fibre, Stock and his Autopoint stock! [[red underline]] All without consulting us. [[\red underline]] This is the second bank in which he placed Autopoint cash and which failed.  
[[left margin]] Karpen! [[\left margin]]
This is another tactless and objectionable exercise of his powers as [[red underline]] vice-president of Bakelite. [[\red underline]] In the same way he has bought before for Autopoint [[red underline]] without consulting us Foreign Bonds which now have little or no value, [[\red underline]] and which he purchased without even consulting a single director of Bakelite Corporation. Before taking action I shall send [[red underline]] Sanford Brown to find out [[\red underline]] details. [[red underline]] Karpen Brothers [[\red underline]] seem to be in rather risky [[red underline]] financial [[\red underline]]
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conditions, and [[red underline]] A.J seems [[\red underline]] becoming [[red underline]] dangerous [[\red underline]] for the best interests of Bakelite Corporation. Unfortunately, [[red underline]] Jacobs [[\red underline]] who is very clever, does not have the confidence of the directors of Bakelite and the technical manager of Autopoint, [[red underline]] Dehli is [[strikethough]] very [[\strikethrough]] incompetent [[\red underline]] in [[red underline]] business [[\red underline]] matters, and we can spare no suitable man here for assuming the presidency and leadership of Autopoint.
We discussed the Karpen matter after the official meeting reserving action until we know more.
[[strikethrough]] Our operating losses [[/strikethrough]] Our [[red underline]] operating losses [[\red underline]] for first 6 months of 1932 [[red underline]] are 71000$, [[\red underline]] after deducting losses due to sale [[strikethrough]] of depreciation [[\strikethrough]] and reinvestment of depreciated bonds and also deducting a reserve fund of 20000$ monthly assumed for bonus or extra compensation which we used to carry. In as far as we have [[red underline]] $250,000 of liquid cash and equivalent securities, [[\red underline]] outside of any and all obligations, [[red underline]] we can [[\red underline]] at this rate [[red underline]] keep on losing money for about 17 years, provided our losses do not increase above the rate of $142000 a year. [[\red underline]] - At present [[red underline]] we are in a more solid position than most banks and many companies. [[\red underline]]
Provided matters do not get worse and we do not commit mistakes George estimates that [[red underline]] Pantone [[\red underline]] will not spend over [[red underline]] $25000 this year. [[\red underline]]
Long discussion about merits of [[red underline]] Dupont [[\red underline]] or [[red underline]] Union Carbide. [[\red underline]] - Hays tells that Dupont's organisation is much more stable at present since [[red underline]] Fisher interests [[\red underline]] have been eliminated from [[red underline]] General Motors Co. [[\red underline]]  That formerly