Document wDdMm5Dnje69gbegxV3yaoVeV

cc: W. T. Anderson . D. Bloomberg, Springfield . W. Bueker, Springfield J. N. Flanagan C. T. MasseyCentral Files MONSANTO CHEMICAL COMPANY TEXAS CITY, TEXAS April 5, 1961 To: At: Subject: Reference: John O. Clay St. Louis King-Size VCM Tank Cars Memo, JOC to LBB, 3-21-61 Memo, JOC to LBB, 3- j-6l The cost study has been revised as you suggested. Column 1 for regular size cars was also amended to the same basis as used for the king-size cars. A complete report for Engineering Planning will be mailed in a few days for the Pre-Project Board's comments. In this report I have a total cost for purchase or finance lease of king-size cars of $1,600, 000- This figure was arrived at as follows: 75 K-S Cars @ $20,6l0/car (1961) Escalation Cost @ 5%/yr For 6 cars purchased in 1962 For 6 cars purchased in 1963 $ 1,545,750 6,183 12,366 Sub-Total Monsanto's Inspection @ 0.5% $ 1,564,299 7,822 Transportation - Penn, to Texas City 1200 miles @ 22.5 /mile/car 20,250 Contingencies $ 1,592,371 7, 629 TOTAL COST FOR CARS $ 1,600,000 RSV0024384 Page Z. I'm not sure if the contingencies are high, enough. If it is decided to purchase cars, we may have to stay within this figure. If you think something more should be included, we will adjust the figure. Please excuse the delay in answering your letter. I was on vacation last week. hi L.. B . Bullock RSV0024385