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Portland, Me.
Wednesday, July 5, 1939.
As the train didn't get into Boston until 11 AM, I had considerable time to myself after breakfast and I thought about the Transportation Dept. situation.  What is wrong?  What should be done?  It's a big subject and one that requires plenty of time to think out effectively but some of my very preliminary ideas are these:

Direct switchers; Class I Roads:
1.) Broaden our sales efforts with Alco. What's wrong?
2.) Intensively study cost reduction and improvement of product.
3.) Consider Ford or Chrysler tieup.
4.) Study intensively reasons for loss of business to E-M.  Is it all reciprocity?  If not, correct other conditions.
5.) Study intensively means for combatting reciprocity buying.
6.) Study switcher market and see what future demand is for.  Is there field for something smaller than 600HP, 100 ton on Class I Roads but not "Industrial Type"?
7.) Study means for opening up the 16 and 8 hour job field.
8.) Study question of standardization of parts for various sizes.
9.) Get a policy for "other than Alco" business (Ford, Moncon etc) and see what this field is and what can be done to exploit it.

Self-propelled road engines:
1.) What is the field - passenger? freight?
2.) What can be done to break in against E-M? Has Alco got what it takes? What is the best approach & policy?
3.) What must be done to make the steam-electric a success? Price. Efficiency. Maintenance cost, etc.
4.) See 1-2-3-4-5 above.
5.) Here is a tremendous field.  How are we best to get into it and stay in?
6.) What do the railroads want? Oil? Coal?
7.) What are the prospects for the coal fired steam-electric? Should we do it as we did the U.P. - whole hog?

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