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612

(608)

(Private)

Aug. 19/98.

Dear Colonel:

Your telegram of last evening was received, stating that you would be in New York to-day and to-morrow forenoon. In this afternoon's mail your letter of the 17th inst. came.

Your estimate of Goltra has proved to be much more correct than mine. He certainly has treated us very unfairly, and if this is to be his future policy, we will hereafter be compelled to figure differently when bidding on cars to be equipped with his material. It is a good thing to know what sort of people one is dealing with, and I must confess to having been very much fooled by Goltra.

The orders for Northern Pacific material were not placed originally to the best advantage, and I doubt very much if we will build many cars at the Michigan Dep't before Sept. 1[[?]]. The result will be some little disappointment probably on the part of both the Northern Pacific and the Union Pacific officials. If we had begun earlier on Northern Pacific work, we would have met the required delivery in their case, and would also have been enabled to begin building the Union Pacific as agreed. By delaying the work as we have, we will however economize somewhat in the cost of doing it. We hope to get through the year without any important increase in rates of pay, but it is sure to be a narrow shave.

I note your further suggestions concerning the payment of an additional dividend of 1¢, and I would surely agree with you were it not for the fact that we have such large outlays to make in repairs. The Forge improvements have not yet been touched, and they are going to be costly. We also will be compelled to rebuild the boiler plant at the Michigan Car Dep't, and this will be a considerable item, and it seems to me that the wiser policy will be to let the sixth fiscal year close with the payment of 6¢ in dividends, carrying forward the remainder, and then strive for 8¢ [[?]] in the seventh