The 'second' C compiler was a PDP-10 and Honeywell (36-bit) target Alan Synder did for his MIT Thesis.
It was originally targeted to ITS for the PDP-10, but it ran on Tops-20 also.
My >>memory<< is he used a 7-bit Character, ala SAIL, with 5 chars stored in a word with a bit leftover.
I believe that C compiler Nelson is talking about I believe is actually Synder's that Jay either ported from ITS or WAITS.
We had some form of the Synder compiler on the PDP-10's at CMU in the late 1970s.
It was either Mike Accetta or Fil Aleva that wrote a program to read PDP-10 backup tapes, that I updated to deal with TOPS-20/TENEX 'dumper' format which was similar/only different.