Document 2e7KaB48NnYvE48zDLmOR377

A. Jo am - TOROHTO OFFICE < .......... August 8, 1969 C6 R, H. Billings B* J* Chernak R. L. Boots - Waukegan H* E. Blechar - Maaville M* H. Reinhart - Toronto J. G* Frost - Toronto H Bardie Toronto C* Jo DsBiase - Msnvills file COMPRESSED ASBESTOS SHEET Your July 31, 1969 letter I've read your subject letter, sympathise with your problem and wish I could offer imnedlate help and guarantee that similar treatment would not happen again* Unfortunately, I can't Everything Bud Cherank end others told you was done in good faith but unforeseen problems came up that prevented us from doing what was promised. You were treated no different than any other business that came in under these trying times* Cost figures do show tfeukegan to bs lower than Manvliie* However, under the pressure of increased orders, a slowdown in production, etc., ve were forced to balance all orders {including yours) between both plants in order to give the optimam service to all* The pressure still continues but ve expect to eee some relief within s month* How significant this is we are not sure and baaed on pest history outlined in your letter Z know you should have reservations* I would be glad to start working on the possibility of shipping less costly full carloads of produet when our production becomes more normal* This would take lead time, etc* but could offer you some relief I assume. In order to bold your customers and still produce the proper profit for your division I assume you have considered selling the Canadian onbrandsd Garlock sheet? E* A* Schoman /P Division Headquarters, Toronto, July 31> 1969. E A . SCHUKAL -. LEW YORK cc: R.il. killings - Lew York B.J. Chernack - Lev/ York R.L. Foote - V/aukegan H.S. Blechar - Kanville PFK K.L. Reinhart - Toronto J.u. Frost - Toronto N. Hartiie - Toronto File I'.PRESSED ASBESTOS SHEET '' . > You probably know that our Asbestos plant closed down their sheeter early this year. v'e had been making styles 60, 61, 71 & 73 at that location. At one time, we also made our styles 50 & 70 but stopped due to lack of volume. Then we tapered off on 71 & 73 for the same reason and finally closed it completely. Consideration of such a btep was not made before we had assured ourselves of an adequate supply from your division plants. B.J. Chernack will confirm to you that curing 1967 vre had talks and in 1963 considerable correspondence, in which we were assured you had more than ample capacity to handle our needs. In fact. Bud indicated he was anxious to have this extra volume to help lov/er costs. Fore casts were supplied, etc. Our controller's department had obtained representative costs from both Waukegan and Kanville which showed clearly to us that Waukegan costs were substantially lower than those at Kanville. In addition to tiis, because of location, Waukegan is closer to 75fS of our market than is Danville. In fact, it would appear ridiculous to consider shipping from Kanville to points west of the Great Lakes. On a product which sells down to and below 0.50 lb. and on which freight is allowed, transportation costs are very significant. Freight rates from Waukegan to Vancouver are 3 cts. a lb. This can,amount to 20$ of the selling price!!! We had no sooner started placing orders for sheet on Waukegan earlier this year, when we learned (after some delays of course) that our orders were being forwarded to Kanville, Cue to a "slow-down" or something of that nature at V/aukegan. Kanville was overloaded and deliveries were running 3 to 10 weeks on our bread & butter line, most of which is supposed to be stock. -. A couple of months ago, B.J. Chernack told me this problem had been corrected and that V/aukegan could supply us. Again two weeks ago, I was told our orders were again being switched and you said you did not 2- know when this situation would be ironed cut* Had we known we were going to Iget into these problems,* may not have been so anxious to close down our sheeter* V/ithin the past couple of years Garlock has started up a new sheeter right here in Toronto. To give it some volume they are selling as low as 0.32 lb, Canadian prices are normally 25?$ higher than U.S, prices, due to the duty & exchange curtain we hide behind* The only way we can compete, even with our own distributors, is to be able to give service, Vith your present deliveries, we are out of luck on one of our basic product lines. Order K22299 was placed 6/9, promised 3/3. Order K23142 was placed 6/26, promised 3/1, repromised, 3/15. Order K70224was placed 7/9, sent from V'PF to PFM and now promised 3/30* Order K70231 was placed 6/3, promised 3/15, repronised 3/29- Theseare some examples. T,?e a re completely out of stock on- some items. How can we run a business this way? ' A.J. Gunn