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198/ [[vertical note in left margin in red]] Bell of Cyanamid discussion as to Merger [[/vertical note in left margin]] son [[red underline]] and I had discussed all [[/red underline]] this and some other phases and I would prefer he would discuss them further with any of his representatives he taught best. That [[red underline]] George and I were a unit, [[/red underline]] and we always agreed after we discussed matters together. That there was also the question of the value of the amount of stock they offered as being too inadequate for the value they received [[strikethrough]] and. bu [[/strikethrough]] So I left him in a very friendly [[strikethrough]] no [[/strikethrough]] way. I have no doubt they all desire to see us enter and Mr. Bell in particular. - So I asked George to [[strikethrough]] attend to my [[/strikethrough]] take the matter in hand alone, while I would advise Rossi about the interview. We [[red underline]] have every reason to believe [[/red underline]] that our [[red underline]] net earning for 1935, [[/red underline]] including Bakelite & Halowax, but not including Germany, England, Autopoint, Luxene and [[strikethrough]] who [[/strikethrough]] dividends on our stocks and bonds [[red underline]] will be about one million net [[/red underline]] after deducting taxes, amortization, and all usual expenses. At this rate our [[red underline]] Bakelite Corporation [[/red underline]] shows about [[red underline]] 1/4 of the total earnings of all the fine companies operated now jointly under Cyanamid, [[/red underline]] which [[strikethrough]] and [[/strikethrough]] has a long list of fine companies under its management. [[red underline]] We ought to receive at least 1/4 of their [[/red underline]] total issued stock to make it acceptable. - They are willing to pay us with [[red underline]] bonds. But I am opposed to bonds, [[/red underline]] [[strikethrough]] how [[/strikethrough]] specially since under the Franklin Roovelt regime, the Dollar value may be further reduced. Furthermore [[end page]] [[start page]] 199/ I am not sure that if we accept bonds we shall not have to pay large income taxes for this transaction. Have paid $4400 to Iselin & Co for some preferred Bakelite Stock I bought. Reported to Rossi about our interview so as to keep him posted. He agrees with my objections [[vertical note in left margin in red]] Redman [[/vertical note in left margin]] At 3 P.M. Redman came to visit me. He has spent several days in Bloomfield laboratories. - Told him about possible [[red underline]] Catalin [[/red underline]] suit and my interview with Thiele. Gave him my views on the situation and my plans to face it. Spoke in detail about patent situation and gave him copy of the Court procedure of the recent suit, to study and take it home with him. Told him this is the trend of work where he can be of great usefulness, without unduly fatiguing himself. Can do this at home, in Canada as well as here, without feeling compelled that he must be present at meeting or in the lab. - [[strikethrough]] Reper [[/strikethrough]] Told him that at next meeting of board of directors he would be reelected as Vice President but that in order to avoid misunderstanding it was necessary to make Wieth Director of Research so as to give him full power and the responsibilities of managing the Research Laboratories. - I suggested to R that he should find another name for himself instead of Director of Research. To think it over then let me know. All this said and done in a friendly way [[underline]] Nov 7 [[/underline]] At 10 A.M had visit of Mr. Lawrence [[red underline]] Arnstein, [[/red underline]] son in law of Jake Jacobi of San Francisco, who came to ask my signature for reducing the pfd dividends of some stock I got
