Document 7w9vaoxmM4bkoLybvykVex9j

June 10, 1946 Bet Southern Alkali Corporation Removal ------- Fragrm Contract - Leka Oiarles. La. Ur. A. Kingsley Ferguson, President H. K. Ferguson Company 16S0 Henna Building Cleveland 15, Ohio Bear Hr. Fergusons Z an forwarding to you herewith for your approval and exeontion the following doonentsi (a) Five copies of Contract between Southern Corporation and your Company as Contractor covering the Initial phase of the Lake Charles Removal Program. This form of Contract end the form and contents of Exhibit A have been tenta tively approved by War Assets Administration; (b) Three copies of an Agrement between Southern Aikwl 1 Corporation end your Company under which Southern Alkali Corporation agrees to pay to your Company upon completion of the removal Contract the etm of $21,000 unless the raaoval Contract, originally Halted by its terns to two cell buildings, shall have be extended to include the specified raaoval work In connection with the third cell building, said sun to be In addition to the price provided in the removal Contract. Four copies of the Contract and two copies of the Agreement have been executed by Southern Alkali Corporation. The unexecuted copies are for your files. I also enclose for your information in connection with the removal Contract two copies of an extract from the Agreement of Lease dated March 22, 1946 containing the lease provisions relating to the "Raaoval Program". You will recall that your bid covering this Raaoval Program was in the amount of $218,000 for the specified work with respect to three j BB 0003201 | ?. A. K. Ferguson <3-- Jicie 10, 1943 call buildings with ai alternative bid cf $171,COO if the ecatract were to be limited to two cell buildings. You will note from the enclosed copies of extract of lease provisions that the Removal Program is initially limited to two cell buildings with an option in Southern to extend it to include additional cell buildings in connection with an agreement by Southern to enlarge its chlorine-caustic production capa city beyond the capacity initially specified. Although Southern con- tsaplates the expansion, it has not yet committed itself to such expan sion by agreement with War Assets Administration such as would permit an initial removal program involving three cell buildings under the terms of the lease. Rather than delay the commencement of the Removal Program pending such agreement, it was decided to limit the Contract initially to two cell buildings, reserving the right to extend it the progress of the work thereunder to a third cell building. You will also note that paragraph TES of the lease places a maximum limit of $150,000 an the amount that War Assets Administration aay be required to pay for a removal program involving two call build ings. It was this limitation which prompted its to specify $150,000 as the contract price in ARTICLE IX of the enclosed Contract and to provide for the payment of the remaining 021,000 of your bid by separate agree ment, in the event the Contract is not extended to cover the third building, shich sum Is not cubj ect to reicbur&saeat from War Assets Administration under the removal Contract or the Agreement of Lease. If these documents meet with your approval, will you kindly sign all four partially executed copies of the removal Contract, have your corporate Secretary or Assistant Secretary sign opposite your signa ture and affix your corporate seal to each copy. Will you then have th performance bond incorporated in the Contract at the end thereof completed by inserting the fall amount of your bid for three buildings ($216,000) in the blank space on page 6, of all executed copies and secure the signature, attestation end seal thereto of the banding company you customarily use in such matters, When the Contract has been fully executed by your Company and your Surety, kindly forward all four executed copies thereof tot Cannon D. Clark, Acting Chief Real Properly Section Hew Orleans Regional Office War Assets Administration 7020 Franklin Avenue Sew Orleans, Louisiana 0003202_ and send a copy of your trmanittal letter to me at Pittsburgh. Upon completion of the execution of the Agreement referred to in (b) above, please return one executed copy to me at Pittsburgh, re taining the other executed copy for your files. Very truly yours, "E. T. Aeplundh" Vice President