Document rR8Ed5kbnJ2yDmNbkJvQqNK7

PLAINTIFF'S EXHIBIT vrdmore Jeoenoer 17, 1?63 General -ales r# . . j ,ilNb*T/*winiH, ... liy ' .jT^j .. . .bbey - -cad ;C< easra. . ... 'eyer - rdnore Jmith - *rdnore Legal .:. Powers - Ardmore -. I. ..llson - Paoii let Through liovamoer 30 with Cosaents _n oreparatlon Tor discussions \'ou nave had with ina Johns-"vonville people lu the iaat, 1 analysed the snipments and outlined some ox' the proDlems in a aemorcndum to vou ;ated July 15 covering the first a lx .Tenths of '63 and then again on osot.moer ir 5 covering snioments tnrounn /uigust jl . review of the first eleven .-sonthe of J-;-: shipments indicates :^arcn was ths only onth in wnich they did not ship contract minimus for the total company. Jy month, J*- shlopea the following percentages on their contract liniraim in soars on 3/3"casis in which the total monthly contract figures of 25,160,000 so. ft. .laximura, H,c50,G00 sq. ft. .oinimum arc the fixed figures. These totals are for the nine plants: January 163a .'bbruary 110/-, larcn 391, *pril 125#, -*ay 125,j, June 165#, July 176#, August 155#, September 1U2#, October 173#, and November 1391. 1 would anticipate they ship over their contract minimum for the month of December, but not by much. owever, there axe saveraj. plants wnere J-:-i has rot shipped the contract rlniiaum -rirou :n tne first eleven months and very procablr .rill not lake the contract i.iincmur. .or tne year, -`he sc i..ciuae /-xx'.s wnere the total xnipmente -tircuin ovemoer -.mount to oc of '.he contract -dnltum and probscly . ith a poor month in seceroer : .e shipments for T.ne >,T>ar out of this slant will -o op or loss, ..earning a oen\lty under tne contract. .hiie they had tnroe fair months at *.krcn tne ^otal ship* pnts to date reoreoent 73.* icr tne first eleven .months, -.gain, considering ecemoar as a poor month, it >culd aopear that J*--. sninrr.t3 out of this plant ouid not exceed 77% of tie contract minimum for the year, .meaning a penalty pay* cent 'ey J-A on akron shipiasnts for the year 1963. wrunewick ie the third plant where J-tf haa not ahioped their contract minimum for the year, ttfhils there were two or three very good months, several months in the year found shipments to J*tf accounts very poor, fheir figures indicate aoout 93f of the contract nlnlmum for the year. The total for twelve months will procebly be does to 90> based on a trend in their sales from this plant for the last few months and considering Dec* omoar as a slow month. n the other side of the lodger J--1 has sniooea greatly in excess of the contract naxlmun out of the t'ilriington slant every month exeeot two (fehruary and .arch), .'h3ir total shipments for the first eleven months are 52,775,600 against a contract -axi-nura for tnis period of approximately 33,000,000. ^niomerrts out ot the -igurd . lent have oeen excellent cut there neve oeen two or three months that have dropped cneir average down sotnat while hey nave snipped beyond xie contract minimum they ..-ill not reach the contract naxinum of the .Agurd Plant for -.he year of *63. ohioents out uf fort soage were Gown in one first :.nroe Tooths cut since tnon have i3en cuite well, fort **ooge will ship way neyono the contract minimum for the ear cut will not reacn tne contract ixiaus. If onioraents cut of fort ~odge concicue to improve, the performance of this plant will exceed >iet of uL,urd. ~ncid* .ntally, cue to location of canoetitlve plants ana toe freight absorption .attar. SGP 0002428 2* 0 . CoaOKili 2 - caitoV-4 v nna--anvills`r nroflts .jy plants ~;ould be /-cut out .vf -ort ood.^e end j ;nt to eelo m co.uocnsatin .or oome ox proilt orooxoa* eloewnare. 'he ocher mante, . ncluain^ Jlue >csuids >rand .^soias and av irlsana wUI Ohio -ore then ~a contract ninu* to J-rf accounts lor tie year 1?63 out tnare is still .'oora I'or ixsjroveraent in - < salsa efforts if tiey are to ;ivc oeetwall .r.e cauls* :anee anticLpatod vfian ,.e contract was tae. s i.; tne ^ast, . ~aiu latn oy J-t* is ooor ana tne oreoortion of tneir lath o eoard waits is i'ar oexcw that of oestwall or ox cixa industry* -- i planter sales aro oo woor .ver all viat .nere seen* no justification -or con- .Ir.uinr to we o- ..o oxattax' wusiness. oeetoall lias e xarge otocK of bar,a -X various plante. ho ca^ analysis Made uy tne <anufteturuti ueoartcoot ell snow :j.ants ;iia en eice^siva e_v>unt ox witti little or no overoant, for j-i olas- irs. /hilt representatives :?.*y make a plea tnet tnere are aoeounts to uham :hey -hast stxio u rlxea care of board, lath, end master, x would say, cased on e tody of heir orders, ~;iat this is juat not so. There are a very Hsiteo nunoer 'i recounts ;.\xere is a proolem out outside -f /.tout two accounts, me of wnom .> fevstone, In rhe ^hio tree, it enould oe no proalea cnx 1 feel that J--`i without plaster could ^et es nun board besioees as with piseter from suoh aoeounts* J*4 salsa ox* joint system uroducte, while better inconoarison to their lath and >1cater sales are dicaooointiry cs an overall fifrure, co/roer*d to the tale ci Joint - rstera versus o-tro ,ro .net:. ^.nerlenced. uy ^oatwall. ."hare ire to-.e indentions, owever, .oat : is . cr.-- uic? sir joint system salts in ^one locations .-jc ..:o overoant out cj .ere, ow ricanx-, ..na .-igura is very poor. urxn llm oast severe! mars i ..tve iioa littls cowxient fro^ *> ueople roxative si - ricinu, i xjust^ent^, etc. fter toe onen^o in ne xrlcin,; setup .naae list . abruerv t.-.a nu justea ..u -uet oi *03 to railect the increase ia uill esse orice or oeverax coard proouctx .rden went into effect j'a.-ust 1, ^estwall has ruuie rnly nree concessions r.r . A 1.15 cwt. allowance v.'as ~ireo on ooard ehipoents out ex' t!xe nkron flout into .aw fork City and Lonn Island in a desire to oncrura^uthoir xwjcing snlpnents iron HKTon to relieve sots ox iiis pressure on wUoington. This is still in effect. The orices out of tne <crae > lant on oosrd uhlooenta rnaoe from *'Cmo into the ~tate :f foxas uxilcn r.aa been raiuea wli-.^xtly uy tne cnanje ox <iufust 1, 1963 ..ere drooped ,,a_K to the j&a xrice -or x.iese ;taros as buown in vie eoruary 1, 1963 javlse.:, >rice list. The tnird orico concession ./as i juim on 1" Coreooard into fhiladelp.tia .nere n dis count of C5.00 nar thoua&xic was xaoe for a specific job. a /Iso had oporoved sdtirx4 the rit* for the joc enu snipring in carlo/ a usntitles out ex the fort oodxre lint into . hilc.iei.-nla ona noet ^estvall's cose orice plus frei^-ht out ox t ie .ikron i^ant to tne sarie uMtination. SGP 0002429 ar. ... . .. .*CasjdLli 3 The -ilxington situation is still difficult with J-i's great demand ana the oeatwall success on coera saxes. it naa ueeo necessary to supplement the quantity available 07 shipping from ~kron to wUxiogton for resnipmsnt to accounts. J-f* ;as steadily refused to ir^ee any payment to compensate bestwail for the extra freight ?rd warehousing caarges. iou are aware oi the two methods wuich were oropoeed, one oi which resulted in deductions x'rom v-<< invoices during June, July .nd August end lator ran to >-e tuxen oi'f the cooks uy a .policy adjustment wuich totaled lor the three . ontns nearly vlO,CCO. In this regard, -he -lestwail sales poooxe coog>iuin chat oestuall sales efforts are psaaxizea uecauss inm ,-xant runs _ut ox' nan items frequently, iwia so much oi' the cusinsss is on & "loea ana ,;o'' oasis, or an early Torniug delivery on tae uay following -he oroer. It snoulvi be realizea that tne net cost to J-.1 from ~mstwr.ll. lor he various cyp* aun products they nave for sola ere close to or s little less than wnat they were tr.e ~tart of tne co-.tract. The various iicraases in tne selling price to the customer in -ho field i.ave .'.cant tetter profits xor -j-..., Z am confident that oae of the difficulties in the peat still may be a factor. This wee from slight differences in the way the profita are arrived at, parfclealariy insofar as the percentages are concerned when toe two companies discuss this oerticular point. Iy . OTsi>er L awno to you covered tr.e large monetary complaints ..anarally rex'erred to. The soeoific complaints wnich rem-in open on which there it .ny alar css ion re relatively small, .o .ever, J~1 still loses 'nickels ana dimesM by not following through on many ox' tha "man anjustmaats woich 'hey must make. be nave put J-M on notice that their rlretard (destwall's firestopj will be changed to oe the same a* uestvall's after the first ox the year ana tn&t when me change has oaen accomplished tha par cent discount on this product will be dropped 30 that the oeet to Wl will go up approximately *.50 a thousand at that time. In conclusion x would recommend that J--'i ba required to pay their penalties oa failure to take the oontract minimum out of the tnree daswall plants notad above and that destwall object to any furthar iocreaaa in discounts to J'i without strong proof that J-^ is losing money on the arrangement. As has bean stated aaqy times in the oast, the profit J-K gets on tills gypsum easiness is b&ooa on no investment other taso far uoam literature, locals end containers. -ou eased a <. uestion relative to freight ersorotion. .mnamoer that destwall iias nothing to do with J--*! freight Charges and hence is not in a position to say west the J-rf freight aosorptlon would be. ..ttacned to your copy of this msoorsodum is a copy ox' a .woo from the Cost Department dated October 3 miefa show* tne freight absorption by plants for destwall for tne first eiynt months. In blue pen along side 01 then are the freight eusorptlons ror the sane liens and locations as reported (iaren 15 for the year 1962. I have nut a red nark woere tne freight absorotion has inersaaeo to bestvall. This may ba a guide out you replies, of course, f&at destwall distribution can be and is generally ruoh different t:.an u-< distribution. (io lice, ^owever, that tha aosorptlon in all three categories is down out of riil- Ingtoc cv -ostwall. .-s analyzed many times in the past, with tne 1st;-a percentages J--. sniprwots to via accounts (to the xarge ones; on iong icland, ttieir freignt ~ -- . -oir ore on t trox'it on snioments out of 11- SGP 0002430