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117 [[circled]] VI. [[/circled]]

Washington, D.C.
Wed., Sept. 9, 1942.

Rehorst, treasurer of H.K. Porter, was in today with an answer to our letter suggesting that some of their first quarter business be cancelled to make room for Army 0-6-0's. He claimed a "goodly share" of the material for these jobs is in their possession and they did not recommend at all that anything be cancelled. He made the statement furthermore that they could handle their old schedule [[underline]] plus [[/underline]] the 30 0-6-0's in the first quarter, or about 30 locomotives per month if we would see that they got the material. It is all a ridiculous situation and one that will have to be cleaned up - and I shrink from any part in it. Rehorst informed me also that he had seen a "letter" stating that G.E. has 150 stock locomotives that must be sold at once - took a dig at me that these stock locomotives are tying up material while other builders can't get any - another ridiculous statement inasmuch as the locomotives weren't scheduled for the most part until well in 1943 and half of them had been sold by the time he made his remarks. I like all the builders except Porter and if I get in a jam here it will be in connection with them. Someone will have to take a heavy hand with them and soon.

George Koch of Davenport was in today - a nice chap in the dark about L-97 - and in a jam with a lot of unreleased export orders which threaten to force him to lay off his force in November - a very serious situation because his big army program starts in December and he can't afford to lose men. I shall do all I can to help him & Walter out of this hole.

All the locomotives for Kaiser's new steel mill