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Erie, Pa.,
Tuesday, Nov. 19, 1940.

Each day seem busier than the last. I used to think I was busy but I never knew before what it meant:

1.) Marsh had told Jake he could get Baldwin to build his 20 & 30 ton mechanical drive locos for $25,000 for the 30 ton. Jake called him last night and told him we would be interested at $35000. That seemed to calm Marsh and let us out, thank the lord. Some shyster in Phila. gave Jake a price of $12000 for two transmissions (per 30 ton loco) and we used that! We wouldn't touch it.

2.) Suggested to Whitey, who is to meet Harmon tomorrow, that it would be a good chance to suggest some standardization of small diesels. Then I got the inside story of Whitey's price policy on them. About a year and a half ago. Harmon took Whitey to see Brinley, Pres. of Baldwin. Brinley almost insulted him, told him that we thought we were going in the small loco business & we [[underlined]] weren't [[underlined]]! The upshot was that when Whitey left Brinley he informed him we not only were going into the small loco business but we were going to [[underlined]] stay [[underlined]] in it! That was when prices fell and the heat went on from Erie. Now Harmon at least is coming to us. I learned also that while we are selling at near cost, we will have about $400,000 IME over liquidation in Bldg. 10 this year, which makes one feel better about things.

3.) Today we got the order for the target car and I gave it to Shap to handle and to go to Washington with Cain Friday. In a way, I would have liked to give it to Eddie, to whom I want to give a break, but I feel Shap is the man to handle it - I think he'll do a good job and I think it will show him also that I'm not going to try to hog the show.