Document 15GMnN0Ykj0LdORvDdJ0x3ZOj

tyj. MINUTES * EXECUTIVE COMMITTEE MEETING NATIONAL PAINT, VARNISH AND LACQUER ASSOCIATION, Waldorf-Astoria Hotel New York-New York Inly 1936 INC. t A regular meeting of t! e Executive Cc: .r.iti-ne of the N itional ? Vc-.rn5.yh end Lacquer Association, Inc., convened at 10:00 A. hi., (E.S.T.) day, July 23, 1936 in the 7'aldorf -Astoria Hotel, New York City, with ?.'r. Phillips presiding and the fcOlov ing in attendance: 7\ F. Eer.no tt F. H. Carter 0. J. S. >-;c?run s. c. Lunnhig D. V:. Figgis F. D. Griffin S. R. ib flack L. ?. Moore E. S. Phillips R. A. Plumb Vim. Richter C. J. Roh F. L. Gulzberger Ernest T. Trigg H. E. Yobster ;ts C. V.r. Eastwood George Jenkins DeLnneoy Yeuntz Benjamin J. Patterson Janes S. tolf V?il] ian Zintl- Association Gtai'f Dr. H, A. Gardner U. C. Dobney M. L. Envoy Rouel W. El ton J V nt H. Ti. Pice M. Q. Macdonald t J. B. Lord Wells Martin CALL TO ORDER The meeting was called to order by the Chairman Mr. E. 5. Phillips with an introduction of the guests. MINUTES OF LA. ST NESTING The Secretary stated that there was no unfinished business from the last meeting not cared for in the agenda for the present meeting. The Chairman stated that in view of the fact that copies of the minutes had been mailed to each member of the Committee, the minutes would be approved without rending if there were no objections; there being no objections, the.minutes were approved. REPORT OF BUDGET AND FINANCE COMMITTEE C. J. P.oh, Chairman of the Pud get and Finance Com.mittco reported -.Let the Budget and Finance Committee held a meeting this morning at which time a NCA 0 02772 N 4174 rc-partyof the AAs ssociation incone end expense Tor the nine months from October 1, 1935 to June 30, 1936 was thoroughly reviewed as well as was the balance sheet as of June 30, 1936. He reported that arrangements had been completed with the Aetna Life Insurance Company for Group.Life Insurance covering the em ployees of the Association at an approximate cost of $600.00 per year. Mr. Ech reported that the bill which had been presented in Congress providing for the construetion of a new Fur Department Du: lding in Washington, which if passed would necessitate the moving of Association Headquarter'?, had failed to -pass, thus ending for the time being the necessity for considering the possible sale ox' Association property to the United States Government. Hr. F.oh reported that the Committee hod discussed the possibility of'increasing the amount of insurance earriv.d in the name of ccrtain employees and stated that additional considera tion 'would be given to this subject. EFFORT OF TREAbURLR As Treasurer Mr. C. J. Poll presented a statement of income end expense for the period from October 1, 1935 to June 30, 1936 (copy attached) and advised that the statement shows approximately $3,000.00 more in cash then at this time last year, that the Accounts Receivable are about the acme, excepting that there is approximately $2,500.00 more receivable from Class A members anc approximately $___2_,_5_0_0--.00--l-e--s--s- ---r--ece-i--va-b-l-e- ---f-r-o--m-----l-o--c--a--l- -nrociat'ons, that the assets of the As sociation are less by approximately 110,000.00 due to depreciation on building and cauip.rn.nt, that, all schedules arc well within the budget and that the income analysed shows an increase- of approximately 515,000.00 over the came period for last year. .if. Fob stated that the market value of marketable securities i better than the book value. On motion by President Trigg c-uly seconded, the reports of the Chairman of the budget and Finance Committee and of the Treasurer were received and filed. REPORT OF SCIENTIFIC SECTION COLiMITTEE Mr. Sulzbei-ger, Chairman of the Scientific Section Committee, stated that the Committee held a special mooting in New York approximately five weeks ago to consider the subject matter covered in circulars Nos. 507 and 503. He stated that as a departure from the Committee1s usual custom a number of repre sentatives of industry and of.the government were present at the meeting on' invitation.- Ur. Sulzberger stated that he would request Dr. Gardner to report in somq. detail on what happened at the meeting. REPORT OF SCIENTIFIC SECTION Dr. H. A. Gardner stated that at the mooting in Mew Fork all members of the Committee with the exception of Mr. Neal wore present and that in ad dition Mr. llallett of the National Load Company, Mr. Nelson of the New Jersey Zinc Company, Dr. Brown of the Forest Products Laboratory and Mr. Hickson of the Bureau of Standards were in attendance on invitation. Dr. Gardner stated that the Committee hod very carefully reviewed the material for circular No. 507 "A Preliminary Study of the Physical Properties of High.Grade Prepared Paints for Exterior and Interior Surfaces" (copy attached) and circular No. 505, "A Study of the 7'ushability of Interior Y'all Paints", (copyattached), and had made numerous suggestions for modification of the details as presented in the proposed circulars; ho stftod that the circulars had been Page Two NCA 0 02775 revised Jen keeping with the suggestions made by members of the Committee and that copies of the circulars wore mailed to all members of the Association last week. Dr. Gardner stated that 3t was the opinion of those in attendance at the meeting that it was possible at the present time to write specifications, based on physical properties, for interior paints but that it was not feasible at the present time-4o write specifications, based on physical-properties, for ex terior paints. Dr. Gardner stated that the pamphlet on "Yfashability of Interior hall paints" had carried some conclusions regarding casein paints which the Com mittee recommended be emitted from the circulars, being mailed to the entire membership; he stated that the portion of the circular pertaining to casein paints v.v.s omitted from the circular as mailed to the entire membership and that that section of the circular was mailed to all members of the Association who mr.faeturod casein products. Dr. Gardner reported that the perilla planting experiment vas coming along rati sfnctorily and stated that approximately sixty-eight plantings in-tr.ir ty different states had been made. Dr. Gardner expressed the opinion that the pro motion of oil growing projects all over the world would be one of the best prejeets the Scientific Section could develop in the future. Dr. Gardner stated that the Scientific Section had been giving some thought to the methods used by paint manufacturers in handling complaints de veloped in connection vdth the use of their products and he distributed forms developed by the Scientific Section for use by salesmen'or dealers in reporting on complaints on exterior paints (copy attached); he expressed the belief that the use of these charts would eliminate many replacements and that the subject merited study on the part of members of this Committee. Dr. Gardner also reported on the following Scientific Section Circulars which have boon sent in proof form to the members of the Scientific Section Committee for approval. Those will bo issued when finally approved: Tung Oil in Tropical Isles i Molybdenum Oxide Priming and Painting Brick Structures Quality of Bituminous Paints Used for Roof Coating and Y'ater- ' proofing An Improved Hardness Rocker The Rocker Value and Drying Time of Soft Films Painting Mineral Siding Miscellaneous Notes on Some New Lacquer Materials: Organic Silicon Compounds in Lacquer Oiticica Products in Lacquers Exterior Exposure Tests on Some Pla'sticizers Mr, Richter expressed the opinion that the development of the "complaint forms" was very timely. Mr. Sulzberger stated that the meeting of the Committee referred to above was the firot meeting to which outside consultants had been invited; he stated that the visitors referred to brought much of value to the Committee and he raised a question as to whether or not a small Scientific Section Committee as now organ-' ized is the best plan or whether it.might bo advisable to increase the size of the Committee to make it more representative. Mr. Sulzberger stated that if it is determined that tho present Committee is sufficient in size he believes it will be advisable to hold more meetings with consultants from other sources. Page Three NCA 0 02774 PRODUCT LIABILITY INS'J.~.4iJCE President Trigg stated that in reply to a letter of inquiry on the subject of product liability insurance authorized by the Executive Committee at its meeting in January many letters have been received from members of the As sociation indicating a real interest in the subject. He stated that as a result of these letters a plan had boon worked cut- with Lloyd's of London for a product liability insurance policy for exclusive use by members of the .As sociation at a cost of $0% of conference rate? or 50% of what it would cost if written through other companies. President Trigg stated that the foi :.i of co'icy is mors favorable from the standpoint of the insured then policies written by other companies covering this form of insurance; he stated that while the policy had not as yet been officially approved by Lloyd's there res every reason for believing that the policy would be approved. President Trigg reform'd to a copy of the policy and of the application (copy attached) and discussed wri'.us provisions of the policy in nemo detail. In answer to a question by Mr. Bennett, President Trigg stated that there v.'U; no minimum limit of applications required in order to make the in surance effective. In answer to a question by Mr. Richter, President Trigg stated that the policy covered house paints as well as industrial products. Jn answer to a question by Mr. de Brian, as to whut constitutes property damage. President Trigg stated that damages caused by fire or explosion would be covered by the policy but that the ordinary run of "complaints'1 due to failure of paint products or for other ressons would not be covered. ! Mr. Sulzberger referred to a case in which the fumes from the painting of a building caused rayon dresses to lose their color. President Trigg and Miu Macdonald expressed the opinion that this damage would be covered by tha proposed policy. Mr. Fhillipa stated that- he had been advised Lloyd's of London has no license tc write business in the State of Now York tut President Trigg stated that he had boon assured business under' this policy would be written in* New York. Dr. Plumb cited a case involving his company in which stolen drums of material were later involved in a fire which caused personal injury; the company found it advisable to make a cash settlement on the case. He expressed the belief that ever;.' manufacturer in the industry should carry product liability insurance, , President Trigg pointed out that general publicity on the subject might invite claims and suggested that no other publicity than a notice to the members of the Association be given; he expressed the opinion that it would probably be a mistake for manufacturers to notify their dealers about this coverage. Mr. de Brun pointed out that if it became generally known what con^ prn.ies carried product liability insurance this information might invite claims against those companies. Mr. '.'core expressed the opinion that his company's liability along the line referred to was not at all serious and he stated that they were not parti cularly interested in product liability insurance. President Trigg referred to a'case in Indiana in which a'painter was killed when a eon of floor coating exploded or caught fire. Fhilo the manu- Pago Four- NCA 0 Q2775 factur<& successfully contested the case in court he was put to considerable ex pense which could' have been avoided had he boon covered by proper Insurance. It was moved by Mr. Bennett, seconded by Mr. Matlack that the matter of "product liability insurance" as presented by President Trigg be submitted to -em bers of the National Association. Motion carried. REVISION OP NON-EXCHANGE AGREEMENT Chairman Phillips requested the members of the Committee to take with them copies of the proposed revision to the Non-Exchange Agreement with the- fur ther request that they study those proposed revisions, advise President Trigg regarding any suggestions they might have for changes in the proposals; he stated that at the next meeting of the committee these proposals (copy attached) together with suggestions submitted by members of the committee would be con sidered for final adoption. robimso; PAThlAN SILL Chairman Phillips stated that President Trigg had sent a letter to a selected list of members of the Association requesting opinions on certain questions lining to the Robinson-Patman Bill, and that he had also asked Mr. Thomas J. McFadder) formerly General Manager of this Association, and now a member of the law firm of Donovan, Bond and Leisure to prepare an opinion based on this list of questions; Mr. Phillips expressed the opinion that the F.obinson- Patman Act might give the answer to seme of the problems which have bothered the members of our industry for a long time. President Trigg stated that Mr. McFadden had given more attention t: the Robinson-Patman Act, through its various stages, than anyone with whom he is acquainted and he said he felt particularly fortunate in being able to secure at this early date as able an opinion on the effect of the Robinoon-Patman Act on the paint industry as Mr. MoFadden had prepared. President Trigg read the letter which it is proposed to mail to members of the Association setting forth the questions presented to Mr. McFadderi and his opinions thereon, (copy attached) President Trigg stated that these same questions had been presented to a few members of the Association with the request that they be referred to their corporation Counsel for an-expression of their opinion. Phen the replies to these letters have boon received they will be reviewed for additional information of value to the membership of this Association. Mr. Phillips expressed the opinion that the Association should keep mem bers advised with regard to opinions received, on the effect of the Robinscn-Patman Act on cur industry, and suggested the possibility of presenting to the Federal Trade Commission a list of interpretations by representatives of our industry with a request for an opinion from the Commission. Mr. Carter stated that he believed the request for an opinion from the Federal Trade Commission was a bit optimistic and Mr. Macdonald c:ncurred in this opinion; Mr. Macdonald stated that he believed it would be very difficult for the Commission to express any opinion prior to the establishment of some facts through definite cases. Mr. Carter stated he believed it was a very good idea tc send to members of the Association the pro posed letter a3 presented by President Trigg. .N. C- A. nU nUnZn//nC Page Five Mr. Sulzberger stated he believed it should be kept clearly in rind that this presentation is not an Association ruling on which to base action but is merely'an expression of opinion on certain questions affecting the industry. President Trigg stated that Association Headquarters would continue to review other opinions as received and might deem it advisable to send out addi tional statements to members of the Association. Mr. Phillips stated that since this is a very live subject and that 1,' . future opinions night disclose acts on the part of members of our industiy which I are or arc not permissible it might be advisable to appoint a sub-committee of the Executive Committee to further study the matter. Mr. Carter stated that he believed Mr. Macdonald could function as satisfactorily as a sub-committee and he expressed the opinion that it might be advisable in sending out information to members of the Association to confine suggestions to what can not be done rather than to what can be done; he stated that he believed this would be an excellent service to the membership. Mr. Macdonald expressed the opinion that there would be very few changes based on adjudicated cases for quite some time to come. Mr. Dunning expressed the opinion that in view of the fact that opinion received from counsel to other companies might differ materially from the opinions submitted by Mr. UcFadden it might bo advisable to withhold the railing of the proposed letter until an opportunity has been had to review it `n connection with ad ditional opinions to bo received. President Trigg stated that he had looked ever all questions that have been received from members of the Association with regard to the Robinson-Patman Act up tc- date and that he believes practically all questions asked so far could be answered from the opinions as given by Mr. McFadden; he expressed the belief that it would be advisable to mail these opinions to members of the Association at the earliest possible date. Mr. Piggis expressed the opinion that the mailing of this report at the present time might get action on the part of manufacturers at a time when in- action might be more desirable; Mr. Trigg, Mr. Carter and Mr. Phillips all ex pressed the opinion that any action which might develop new as a result of the Robinson-Patman Act would be constructive rather than otherwise. Mr. Sulzberger expressed the opinion that action at this time might be decidedly destructive instead of constructive; he stated that he had already heard of certain manufacturers, who had very few small accounts, who were talk ing of reducing prices made to small buyers to the same price extended tc large buyers. Mr. Mutlack stated that he believed there should be a small sub committee to keep closely in touch with this subject and President Trigg stated that he believed there should be such a committee with which headquarters could keep in close contact. He suggested however, that this committed while it might wall be representative of the Executive Coarattce could prob.ibly be strengthened by adding to it certain representatives.of this Executive Committee. Paco Six y NCA 0 02777 . Mr. Moore stated that he believed the appointment of a sub-committee was a good idea but that he felt the Association should go slowly in sending out material on the Robinson-Patman Act and that he believed it would be better for this sub-committee to report back to the executive Committee. Mr. Sulzberger stated that in his opinion the sub-committee should be in the nature of a study committee rather than an action committee and that it should report back to the Executive Committee before releasing information. Mr. Y.'abster expressed approval of the appointment of a su but stated this committee should study what other industries are do ing going to do with regard to the Rcbinscn-Patmon Act and that it shou Id r. back to the Executive Committee before any action is taken. 'ire ;rt Mr. Griffin stated that he agreed vlth Mr. 'Webster's opinion in that he dees not believe the committee should, rush out with opinions prior to approval by the Executive Committee; he stated that he agreed with Mr. Sulzberger in the opinion that we should make it clear, and keep in mind, that the opinions prepared by Mr. McFadden are in the nature of opinions only and are net to be considered "a book of rules". Dr. Plumb stated that he thought it would be a fine thing to clear opinions and information regarding the Robinccn-Fatman Act through a study com mittee. President Trigg stated that the letter of transmittal accompanying the McFadden opinions would be clarified to indicate that the opinions were submitted for information only and not for guidance in the handling of specific cases. There was distributed for the information of the members of the Com mittee a copy of "The Federal Trade Commission decision in the Goodyear Case with supplementary comments on its relation to the Robinson-Patman Act", (copy attached) CONVENTION ASSESSMENT Article IX of the By-Laws of the National Association provides that "the assessment at the Annual Convention shall not exceed twenty dollars ($20.00) for each person attending the convention; the amount to be determined by the Executive Committee prior to opening of convention." It'was moved by Mr. Trigg, seconded by Mr. Webster, that the question of establishment of assessment for the. 1936 annual convention be referred to the Entertainment Committee with power to'act within the limits defined by Article IX of the By-Laws of the National Association. Motion carried. SUGGESTIONS FOR CONVENTION PROGRAM ProsiGcmt Trigg stated that he believed it might be advisable this year to limit the annual convention to three sessions, the first session to open at 2:00 P. T.f. on Wednesday, November 18/ the 3econd session at 2:00 P. M. on Thursday, the 19th, and the final session to open at 10:00 A. M. on Friday the 20th. He stated that this would require the boiling down of many reports Page Seven MCA Q 02778' J and thaflrne thought this would probably be a beneficial action. He stated that there was under consideration the preparation of a talking motion picture which -would endeavor to show, to the members of the Association the entire National Headquarters , set up raid to present reports in such a way as to carry to the representatives a more definite picture of the organisation.made possible through their membership. President Trigg -expressed the-opinion that this picture after being shown at the National convention would be a fine vehicle for carrying to local Associations a graphic presentation of their National Association Chairman Phillips asked the members of the Committee to give some thought to the program for the 1936 convention and to send any suggestions which they might U have for the development of the program to President Trigg. Proxies for Convention Opening 'Meeting President Trigg stated that on June 9th the official announcement of the dates for the 1936 convention was mailed to all members of the Association'and stated that this announcement (copy attached) in order to be in strict accord with the By-Laws provided for an opening session of the convention on November 4, 1936, although the business sessions of the convention would bo held or; November 18, 19, and 20, 1936. President Trigg stated that again to be in strict accord with the ByLaws and so that the opening session on November 4th could be official, he would request fifty representatives of the Association to furnish proxies in order that a quorum might be present for this session. A copy of the proxy (copy attached) was presented to the members of this committee for signature. Appointment of Nominating Committee President Trigg stated that in compliance with Section 13 of Article IV of the By-Laws of the National Association he recommended for appointment as mem bers of the Nominating Committee the following individuals: J. Vincent Reardon, The Reardon Company, St, Louis - Chairman A. V. Crary, Continental Can Co., New York' J. E. Ingram, Pittsburgh Plate Glass Co., Pittsburgh 7Jillard E. Hasten, The Eagle Picher Sales Co., New York R.,H. Oakley,_Oakley Paint Mfg. Co., Los Angeles John . Thomas, Hooker Glass & Paint Mfg. Co., Chicago \/^ It was.moved by Mr. Richter, seconded by Mr. Figgis that the recommenda tions submitted by President Trigg for appointment as members of the Nominating Committee be approved. Motion carried. - ... Membership President Trigg reported that Mr. Phillips had been successful in secur ing an application for Class B membership from the Archer-Daniels-Midlroid Company effective as of January 1, 1936. . The Secretary presented the following list of firms together with the 'Membership Committee's recommendation that the memberships be cancelled: PagetEight . - NC A 0 02779 /!American Varnish Co., Chicago, 111. L. F. Bidwell Finish Co., Peabody, Mass. Capitol Paint Mfg. Co., Oklahoma City, Okla. H. A. Carroll & Co., Memphis, Tenn., Certain-teed Products Corp., New York, N.Y. Consolidated Paint Co., Los Angeles, Calif., Crewes & Ernst, Philadelphia, Pa.' Dry Color Paint Co., Lcs Angeles, Calif. Fro-Lac Products Co., Glendale, Calif., C-lobe Faint Co., Los Angeles, Calif. Gold Seal Paint Products, Inc,, Klamath Falls, Ore. F. H. Greenwood, North Kills, Pa.H. Kahn & Co., Philadelphia, Pa. Master Su.ildc-rs Co., Cleveland, Ohio Miaco Paint & Color Co., Oklahoma City, Okla. Mineral-Lac Faint Co., Philadelphia, Pa. James L. Parsons, Portland, Ore. The Periseel Company, New York, N.Y. Pysol, Inc., Hawthorne, N.J. The Rausin Paint Co., Oklahoma City, Okla. Rutland Fire Clay Co., Inc., Rutland, Vt. Albert K. Sheldon Co,, Cambridge Mass. Walter L, Trainer Co., Philadelphia, Pa. VThitley-Kice-Montgomery, Fort Worth, Texas It was moved ty Mr. Trigg, seconded by Mr. Matlack that the recojnmendc tion of the Membership Committee for the cancellation of the memberships listed be approved. Motion carried. There being no further business to come before the Committee at this session the meeting adjourned at 3:00 P.M. $j* Page Nine NCA 0 02780