~ 5 = Mr. Ekstrand is always unpredictable. Mr. Clark has been unusually cooperative with me recently in my endeavor to expedite action by the Unit. We have a rather definite feeling, however, that Mr. Clark would oppose making any concession in respect to sales made during the suit period from the original inventory stock. It is, of course, up to Mr. Zimmerman finally to make the decision in that matter. As soon as Mr. Ekstrand has completed his tax computations, Il am going to try to secure a copy and send it to you for examination and approval. I then am hopeful that I can get together with Mr. Zimmerman, both on a settlement of the suit and his’approval of these proposed computations for the post suit period. While Mr. Zimmerman will probably not pass judgment on the settlement of the post suit period, he will at least be called upon to state whether he has any objections to the proposed settlement. I do not think that he will have any objections since the determination of a tax basis on taxable sales was the procedure we long Since agreed upon. The Zimmerman, main guestion of course, in the basis of transfer in the of the suit and bona fide sale. Under the ther view than all that to which I will is whether have he will to make take any up with Mr. reduction sales made out of the original inventory suit period, as a concession to a settlement our claim that the inventory transfer was a the if circumstances, however, I am Zimmerman adamant and Mr. approve of is adjustments in the inclined will suit go period to no (1) fur- to eliminate the separate sale of gun barrels and (2) to reduce the tax basis on after imported gun sales to a jobbers basis, that we should yield and compromise on those terms. We must remember that interest is still running on the dficiency in the post suit period and under the present conten- tion of fund covering it is the Unit, unlikely we sales that are made we not entitled between can arrive 1932 at to interest and 1935. a settlement on any re- Furthermore, with the Unit, despite what Mr. Hoyt said, unless we can reach some amicable agreement with Mr. Zimmerman as to the suit. If we were dealing solely with the suit and no question of liability thereafter existed, I would be inclined to hold out for a reduction of tax basis to the jobbers price on all sales made during the suit period, but under may not be advisable. and the will ask proposed Mr. tax the circumstances just outlined that I do, however, intend to make the effort Zimmerman for computation. some reasonable compromise beyond