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[[vertical annotation in left margin in red]] Pantone [[/left margin in red]]
during [[red underlined] which time she bore a daughter [[/red underlined]] After the meeting George B and Rossi suggest that [[red underlined] Alan Brown [[/red underlined]] be put in charge of [[red underlined] sales department and Swan be put in charge of Pantone [[/red underlined]]. - I am against it. First Pantone cannot stand a [[red underlined] 15000$ [[/red underlined]] a year man, and needs a man of energy. - I am not sure that Alan Brown will prove fit, before we have tried him on the new job. I do not want to humiliate or offend or demote Swan who is the oldest in service and who has given his best endeavors and loyalty to our company. - I shall however try to stimulate [[red underlined]] Swan by calling a meeting [[/red underlined]] [[strikethrough]] wh [[/strikethrough]] of [[red underlined]] Rossi, George, Gordon Brown, Blount, Alan Brown, Swan [[/red underlined]] Sanford Brown [[red underlined]] Low [[/red underlined]] and one or two others of the [[red underlined]] sales committee, [[/red underlined]] and discuss the whole sales situation where [[red underlined] Alan Brown can submit his written [[/red underlined]] memorandum and then [[strikethrough]] decide [[/strikethrough]]
I shall decide whether Alan Brown shall devote [[underlined]] part [[/underlined]] of his time in Swans office and cooperate with the latter without offending him. They all seem to agree gradually [[strikethrough]] that [[/strikethrough]] to my opinion expressed long ago that our budget for advertising [[strikethrough]] is at present [[/strikethrough]] and our efforts have been disproportionate to actual conditions
[[overwritten]] These [[/overwritten]] Our [[red underlined]] "book" losses [[/red underlined]] for the month of August are larger than any preceding month, amounting to a total of $105,300, and Halowax division shows $1000. loss, although it was considered a good (!) month The total losses for the past 8 months closing Aug 31. amount now to $847,823, but in all these book losses we include the recorded loss on market value by conversion of our bonds into Government securities. It also included a charge of [[red underlined]] $20000 [[/red underlined]] a month for "possible additional compensation". This charge was introduced during
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our prosperous period, and is now merely carried so as to make it easier to compare our results on the books. The [[red underlined]] losses also include all depreciation [[/red underlined]] amortisation and cancelling of our patent value account. Making these deductions the [[strikethrough]] losses [[/strikethrough]] real losses for operation amount for Aug. 1932 =
$105,300
- 52,200 (20000 bonus
32000 loss on market
value of securities
---------
53,300
- 20,000 written off for
depreciation
---------
Actual money loss $33,300 [[strikethrough]]
written off for de
[[/strikethrough]]
In the same way the loss for 8 preceding months can be calculated as follows =
"Book Loss = 847,826
[[start bracket for 195,000]]
Deduct 160,000 for [strikethrough]]
bonus reserve [[/strikethrough]]
^[[depreciation]]
[[Deduct]] 35,000 for writing off
patents [[/bracket]]
[[above bracket points to:]] deduct 195,000
---------
652,823
[[start bracket for 627,971]]
Deduct for bonus reserve 160,000
[[Deduct for]] losses on
securities 467,971
[[/bracket]]
[[above bracket points to:]] 627,971 627,971
---------
Net [[underlined]] cash [[/underlined]]
loss for the 8 last months = 24,482
Our [[underlined]] liquid [[/underlined]]
assets at present, Aug 31-1932 stands as follows:
589,000 = Notes receivable
450,000 = Doubtful notes including 200,000
^[[doubtful]] loans, etc.
[[strikethrough]] doubtful accounts
[[/strikethrough]]
----------
139,000 [[underlined]] Good [[/underlined]]
[[strikethrough]] accounts
receivable [[/strikethrough]]
^[[notes]] collectable
200,000 [[underlined]] Good accounts
[[/underlined]] receivable during
current year
----------
339,000 =
2,880,000 Value in bonds and securities
present market (mostly Government
bonds)
700,000 cash in banks
----------
3,919,000 = equivalent to cash
- 500,000 Deduct this for Government bonds
place as guarantee for Bakelite
limited
----------
3,419,000$ X [[strikethrough]] Cash
[[/strikethrough]]
1,300,000 Inventory of raw & mfd goods, after
depreciation
----------
4,719,000
These are our [[underlined]] net [[/underlined]] liquid assets, and do not include buildings, land, equipment, nor any value for British company, German company, Autopoint, our new 2,750,000 Bound Brook plant, Halowax equipment.
At this rate if our [[underlined]] net cash [[/underlined]] losses of Aug. 1932 continue at this rate or about 400,000 yearly (33,300 x 12) we can hold out over [[red underlined]] 11½ years, [[underlined]] provided [/underlined]] we commit no blunders [[/red underline]] and undergo no further liquid capital losses.
The stock market has again been lower during several days and this together
