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A L L C OM M U N I C A T IO N S T O B E TELEPHONE 1640 A D D R E S S E D T O T H E C O M P A N Y A N 0 T 4 0 T T O I N D I V I D U A L S BASIC MAGNESIUM I N C . O R P O R A T E D P. O. B O X 1 1 5 0 ? H E N D E R S O N , N E V A D A May 7> 194-5 Mr. Walter R. Bracken Spec4-ihiaal Representative of Union Pacific Railroad Company 401 So. Second Street Las Vegas, Nevada Dear Mr. Bracken: Yours of May 5th concerning Mr. Strong*s request for further information about EMI has been received. This question of Stauffer Chemical Company and J. M. Montgomery & Company taking over is a rather difficult one to explain to people outside of our organization, but I shall be glad to give you the latest information in the hope that it will answer Mr. Strong's question. Neither Stauffer Chemical nor J. M. Montgdmery have taken over as yet. For some time members of their organizations have been here studying the situation and preparing to take over, and it is now hoped that the detailed settlement with DPC can be made in time so that they actually can make a formal transfer May 15th. It is further . hoped that this transfer can be made in such a way as to alJ°* to be reversed and have the books show that both companies have been in position of responsibility in regard to these operations as of May 1 st. Whether this retroactive arrangement can be worked °r jot is “ i1 question that has not been decided by Washington and the New York office of Anaconda. The whole difficulty revolves around*h® of DPC to hold BMI for matters that were beyond our control and which we inherited from previous management and from the McNeil Construction Company. The Western Electrochemical Company is not producing here at the present time and do not expect to produce anything until late July or early August. Bechtel-McCone, the contractors for Western Electro­chemical. are actively engaged at the present time in installing and teor ecptriondugc ee qpuoitpamesnsti u^mm acchhlionreatrey atnhda t pwoitlals s?inuamb ^p®e r*ch!l?o*r"a?t.e.a *Tihher eenndd° pprroo-duet is ootassium perchlorate which is a violent oxidizer that will be usSd in let provision rockets• There is some connection between this operation and the Arrow-Jet Company of Los Angeles. You may also have noted that Arrow-Jet was recently brought under the corporate control of the General Tire and Rubber Company of Akron, Ohio. Very^ trulyvj^urs, F.O.Case:vh General Manager MAY fB.JL 1:2 1945