

                                                                    EXHIBIT 10Q


                                                     GATX CORPORATION

                                                     500 WEST MONROE STREET
                                                     CHICAGO, IL 60661-3676
                                                     312 - 621- 6204

                                                     WILLIAM L. CHAMBERS
                                                     Vice President
                                                     Human  Resources


May 31, 1995




Mr. David B. Anderson
845 Moseley Road
Highland Park, IL 60035

Dear David:

It's a real  pleasure  to  confirm  our offer to join GATX  Corporation  as Vice
President,  Corporate  Development,  General  Counsel  and  Secretary.  In  this
position  you will report to James J.  Glasser,  Chairman of the Board and Chief
Executive Officer. The key elements of our offer are:

1.       Your salary  will be $275,000  per year.  Your  performance  and  base
         salary  will  be  reviewed  twelve  months  from  your  starting  date.
         Thereafter it will be reviewed at the normal interval for your position
         which currently is eighteen  months.  Any proposed salary revision will
         be reviewed and approved by the Compensation  Committee of the Board of
         Directors.

2.       Your  annual  incentive  bonus  target is 50% of base  salary.  We will
         guarantee a minimum bonus of 50% of full year base salary, or $137,500,
         for 1995.  If corporate  financial  performance  is greater than budget
         your bonus for 1995 may be greater than 50% of a full year base salary.

3.       We will ask the Board of  Directors  to  approve  20,000  non-qualified
         stock option  shares for you in 1995 - 10,000 to be granted at the July
         28, 1995 Board meeting and 10,000 to be granted at the October 27, 1995
         meeting.

         In  subsequent  years it is  expected  that you will be granted  10,000
         stock option shares, or their then program equivalent number, per year.
         Currently,  50% of options  granted vest after one year, 25 % after two
         years and the final 25 % after three years.

4.       You  will  be  eligible  in  1996  to  participate  in  the  Individual
         Performance Unit plan which currently applies to corporate officers and
         subsidiary Presidents. This is a three year program and payouts through
         the plan are  currently  determined  by corporate  return on equity.  A
         sample copy of the plan is attached.


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Mr. David B. Anderson
May 31, 1995
Page Two


5.       In order to  compensate  you for the loss of  benefits  resulting  from
         terminating  your current  employment we will provide a hiring bonus of
         $175,000.

6.       In the event of your death or company initiated termination for reasons
         other than cause prior to  attaining  five years of service,  GATX will
         provide  to you or your  spouse a  payment  approximately  equal to the
         benefit you or your spouse  would have been  eligible to receive  under
         the  terms  of the GATX  Non-Contributory  Pension  Plan  for  Salaried
         Employees  had  you  attained  five  years  of  service  prior  to such
         aforementioned events occurring. This provision will terminate when you
         achieve five years of service.

7.       Although your employment will be at will and terminable by either party
         at any time we agree  that if during a five year  period  beginning  at
         your date of hire neither  James G. Glasser nor Ronald H. Zech is Chief
         Executive Officer should you be terminated for reasons other than cause
         we will provide a  termination  payment equal to one year's base salary
         and target bonus.

8.       You will be covered by our Change of Control Agreement, a sample copy 
         of which is attached.

9.       You will be eligible to participate in our benefit programs,  including
         medical,  dental and life insurance,  pension plan and employee savings
         (401K) plan. Summaries of these programs are attached.

10.      You will have use of a company leased automobile.  A portion of the 
         value of the use of the automobile will be imputed income to you.

11.      GATX will reimburse you for dues and expenses for a downtown luncheon 
         club and for country club dues and expenses which are business related.

12.      You will be eligible to receive financial planning assistance not to 
         exceed $5,000 in value each year.

13.      You will be eligible for four weeks vacation per year.

<PAGE>
Mr. David B. Anderson
May 31, 1995
Page Three



David, all of us are  enthusiastically  looking forward to working with you as a
very key member of our senior  management  team. We expect that your  experience
and style will greatly benefit GATX and its shareholders.

Please  confirm  your  acceptance  of this offer by signing  and  returning  the
attached copy of this letter. Please let me know if you have any questions.

Sincerely,





WLC:ech

Attachments



ACCEPTED:



/s/ David B. Anderson                               June 5, 1995
------------------------                          ---------------------
David B. Anderson                                         Date


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