Letterhead
Dec. 10 '08
Dear Father
I have just read John's letter to you and have only a few words to add to it. John Palmers and I had a protracted meeting here in the office last night after supper and decided on a definite course. In understanding the situation this must be realized, that we must face and take care of a monthly deficit provided our sales merely keep up with the average for the past 12 months, namely 5 per month. At the rate of our expenses for the [---] period this deficit has been about $3000.00, so the [---] last night was for the purpose of cutting down our [---] so as to reduce this deficit we decided on a [---] of about $1800.00 by laying off one draftsman, the [---] of the shop and half the men in the shop, one [?grapher], the inspector and the rock drill man we [?] made a big cut in advertising and the amount of [---] ordered to complete machines. The idea of all [---] was that the deficit might be reduced to such an [---] that our resources - namely one more call on the [---] might carry us to a point where we have raised [---] average of sales to a point where it will carry us. All this cutting does not effect our ability to solicit orders - because the cut hasn't been made in that direction - or our ability to execute orders - because we have 20 machines practically completed which will carry us for 4 months at our average rate of 5 per month. This cutting is entirely my idea, as I doubt if John would have given it a thought tell the next call was used up. In fact the meeting last night was at my instigation and at the meeting I succeeded in so thoroughly scaring John & Palmers that before it was finished they were almost willing to cut their own salaries. We are doing this pruning without in any way jeopradising our organization as we are not letting any men go who have proved indispensable to us, [---] who we could not get back if we wanted them.
Of course we are in hopes, and believe, that this policy is only temporary. It will be easier for us, [---] better business conditions come along, to slowly resume our normal state, than to cut down after all our resources have been spent. The only cut down [---] would be a shut down, and we can't have that.
Don't worry, we'll come out all right, and that all there is to it. The machine proves itself more of [---] wonder every day - except as a seller - and the [---] isn't far off when that exceptioin will be recurred. [---] we are after now is to keep that day from being [---] far off.
Love to Isabel we are all very well. I am [---] down Tuesday night and will return Thursday
Devotedly John