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568 (566)
July 2/96

Dear Mr. Hecker:
As per my telegram of this morning, I am glad to say we succeeded in closing with Mr. Kenarick by wire for 500 box cars. After making certain deductions for air brakes, etc., we bid $555.00. He wired back an offer of $545.00, which we declined. He then offered $550.00, which we again declined, holding to our price of $555.00, and won out, getting the order at our figures. We will have a profit of about $30.00 per car in this lot of cars. 
Mr Crapo appeared yesterday with his Supt. of Motive Power and we has several interesting interviews, and finally at quarter just seven last evening tied up the order, agreeing to build for him 250 37 ft. box cars at the price you bid, $544.00, from which we deducted something over $100.00 for air brakes, couplers, Gould draft rigging, brake beams, springs, etc. I knocked out the Simplex body and truck bolsters and have the right to use either Fox or Schoen, and the principal increase in the profit you contemplated will be made in the saving in cost of Fox or Schoen bosters over the Simplex. How much will be I do not know, but I think it will equal possibly $10.00. We also got rid of the use of malleable iron castings in the trucks but without any particular profit some 200 per car in the change. We also are to use steel axles instead of wrought iron axles, and we shall make two or three dollars per car by this substitution. So I think it safe to say that we stand to obtain in the neighborhood of $20.00 per car profit -- perhaps we may be able to run it up to $25.00.
Mr. Burt of the Union Pacific is apparently satisfied with our price and delivery, but I fancy has yet to obtain authority to buy the cars, and has asked for more time. We have agreed to protect him in price but told him he would have to run the risk of delivery. I am inclined to think we may round up a couple of thousand cars