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2/ [[entry in left margin in red]] Quarrels & Blunders of BG in Germany [[/entry in left margin]] making molding powder etc for others and will limit itself to molded articles and laminated, both of phenolplastics and aminoplastics. [[underline]] June 18 [[/underlined]] (Sunday) [[red underline]] Stauss [[/red underline]] made an appointment for 4 P.M at Kaiserhof. Described [[red underline]] his troubles with Sachs and Weger. [[/red underline]] - and their [[red underline]] stubborness [[/red underline]] in sticking to their methods in face of increasing competition since our patents expired. [[black and red underline]] Novack [[/black and red underline]] have brought out a [[red underline]] cheap molding mixture [[/red underline]] made from Cresol with which they are underselling Bakelite and taking customers away. [[red underline]] Weger [[/red underline]] has brought out a similar mixture but of such low grade qualities that customers turn it back. - It sticks and softens and smells badly of cresol.[[red underline]] Weger and Elbel [[/red underline]] try to minimise the defects notwithstanding complaints of customers and are trying to improve the defects without much success. Stauss advises Sachs to sell the good phenol product at reduced price instead of [[strikethough]] jeopardizing [[/ strikethough]] incurring the loss of dissatisfied customers until the cresol product is of sufficient good quality. [[red underline]] Sachs gets excited etc etc. Stauss [[/red underline]] is outspoken in criticising the refractory selling methods of Sachs and his organisation. Repeats me what Sachs told me already, that the [[red underline]] Deutsche Bank which bosses Rutgers [[/red underline]] has sent one of their business experts to examine [[end page]] [[start page]] 3 [[entry in left margin in red]] Dissent at Bakelite Gesellschaft [[/entry in left margin]] the situation of Bakelite Gesellschaft. That altho' they [[red underline]] found books and accounts in good [[/red underline]] order and bookkeeping run conservatively, [[red underline]] Sachs and his brother Robert were much criticised [[/red underline]] for their methods in handling sales [[red underline]] Weger and specially Elbel were also criticised. They recommend dismissal of Robert Sachs and preparation for dismissal of Sachs [[/red underline]] himself, also Weger and his [[red underline]] son in law Elbel [[/red underline]] who dominates the Erkner factory [[strikethrough]] Tho [[/strikethrough]] Stauss urged by Rutgers has prepared new employment contacts for Sachs and Weger reducing their salaries and making it optional of the Aufsechtsrath of dropping Sachs and Weger in 1934, paying them however a compensation in money etc. [[red underline]] Robert Sachs leaves on July 1. [[/red underline]] Stauss has enjoyed a well tried man who is to join Sachs staff and reorganize [[strikethrough]] them [[/strikethrough]] methods there soon to take away the dominance of Sachs in his department. Similar [[red underline]] changes are contemplated in Erkner. [[/red underline]] - The fact is that under the present [[red underline]] Hitler regime, Sachs as a Jew [[/red underline]] at the head of B.G, is a very [[red underline]] serious drawback. [[/red underline]] - Even were he not such a bossy excitable pugnacious man, making many enemies by his ways, he would be a [[red underline]] detriment to Bakelite. [[/red underline]] My opinion is that Sachs & Weger together have had too much of a preponderant power in the organization, and practically did what they wanted and got used
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