Document revekDV6K6VbzQ9exOwqEKEov

Et i i y l Ga s o l i n e Co r p o r a t i o n N TER-O FFICE C O R R ESP O N D EN C E M a n u p a c t u r in o D e p a h t m e n t (PERSONAL & CONFIDENTIAL) MAIL ADDRESS: BOX 6 8 8 . WILM1NGTON, DEL. . FREIGHT ADDRESS- - CARNEYS POINT. N.J. . TELEPHONE: PENNS GROVE. N. J 280 EXTENSION 213. Ju ly 1, 1936 Dr . R. A. Kehoe Dear Bob: I sh ou ld l i k e t o know, a t you r con ven ien ce, how you made out r e c e n t ly when you w ere in New York r e l a t i v e t o d isc u ssin g th e p r p ay ai situ ation . In r eview in g our co n v e r sat io n on t h i s su b je c t , I th in k I gave yo ab ou t a l l o f th e an gle s t h a t I cou ld t h in k o f e xce p t in g one w h ich , w h ile you p r o b ab ly know abou t i t , m igh t b e ar r e p e a t in g in l i n e w ith p o s s i b i l i t i e s on p r p ay ai. ^ As you know, we a r e now o p e r at in g th e le a d p la n t s "w ide open " on a seven -day b a sis. I have w r itten to you b e fo r e r e fle c t in g our opin ion s h ere t h a t su ch a sch ed u le sh ou ld on ly be co n sid e r e d in l i g h t o f an em ergen cy m easure and t h a t t o con tin u e o p e r at io n a t t h is h igh p it c h in d e fin it e ly , i s c e r t a in ly en cou ragin g h igh er r i sk s fo r a l l con cern ed; con tin uan ce i s c e r t a in ly n ot con ' du cive to e ffe c t in g th e sa fe t y m easures which e it h e r o u r se lv e s o r th e duPont Company w ish t o m ain t ain . Hence, we m ust co n sid e r an a d d it io n a l p la n t e it h e r h ere or elsew h ere i f our b u sin e ss i s t o rem ain a t th e cu r r en t volume o r in cr e ase in t o 1937. Erom th e p r e se n t t r e n d o f o p in io n s, I am in c lin e d t o b e lie v e t h a t th e lo c a t io n o f a d d it io n a l f a c i l i t i e s w il l be e lse w h e r e . T h is, t h en , means t h a t we w ould h ave su ch an u n equ al econ om ical si t u a t i o n fo r fr e i g h t t h a t we a r e alm ost fo r c e d ;t o p r p a y a i. Fo r exam ple, su p p osin g we b u ild e it h e r one o r two u n it s elsew h er e, th en , ou r d ist r ib u t io n would be e it h e r 80$ or 66$ from Deepw ater an d th e b alan c fr om th e new lo c a t io n . I f new f a c i l i t i e s were sit u a t e d a t a fav o r ab le p o in t , such a s E a st S t . Lo u is, e t c ., i t so h appen s t h a t over 50$ o f our b u sin e ss i s in th e surrou n din g t e r r it o r y so to su pply t h a t m arket some sh ipm en ts would s t i l l h ave t o con t in u e t o come from Deepw ater. Then, u n le ss we a d ju st e d th e fr e ig h t si t u a t i o n by p r p ay a i an d ab so r b ed th e c o st o u r se lv e s, some cu st om er s would b e fo r c e d t o pay more f o r th e d e liv e r y o f t h e pr od u ct th an o t h e r s in t h e same ge n e r a l l o c a l i t y , f o r r e a so n s over which th ey have no co n t r o l. The th ough t th en o c c u r s t o me t h a t sin c e i t i s alm ost for egon e t h at w ith ad d it io n al f a c i l i t i e s in th e n ear fu t u r e r e q u ir ed p r p ay ai would be n e c e ssa r y , why n ot e f f e c t th e p r o p o sit io n a t on ce, when a p r ic e ch an ge o f f e r s a con ven ien t an d econom ical opportu n ity? 00008! Yo u r s tru ly,