Document 3NVYzYpX6yXNqkaKqk25wGRw0

::i:rj:xs VZ-TJTIVS C0:C;I7T3 mz s t ik g National Paint* Varr.ish end lacquer 'Association, Inc. Hotel Sew Yorker, 17cw York, H. Y. -- January 31, 12^6 **'=? ** (( \ J The organization neeting of the Executive Con--.ittee of the National Paint, Vr.i.rlsh end lacquer Association convened at. 10:00 A.n. Thursday, January 31, 1246 in the Hc'tel 'Js'-r Yorker, Hew York, i-T. Y. vdth tho following in attendance: Prank ~y : s T. J. C.--T ' ell V/. K. Cla.k R. 0, Clark ~. A. Poy, Jr. 3. D. Griffin A. Z. Horn "*n. H, Jarden, Jr. If. f. Eel ley J. V.'arran Kinsnan H. A. Uelun Elliot S. Phillips Guests Harold ?vo J. ?"..a.-.r.on Arthur '/. Stcudo: V, C. Stolk Prank L, Sulsbc-rE-v.ast T. Trigg Hey 3. Ar ".arson Jack Daley J. Prcr.k Eurfecs, Jr* -ells llartin Earahard Unutz Ralph I!. I'eur.ann diaries L. Raffi D. Robertson if. n. Zintl Association Staff Reuel . Elton George H. Priest ii. C;, J'acdonald G. C-, Sward Absent li. L. Kavey Harry i: Euhn Tal i/urtole Call To Order The neeting was called to order by President Trigg who explained that thie wae the organisation neeting of the Conriittee and he introduced the new nenbore of the Connittee and the gaests who were in attendance. - Election of Chalroan It was noved by Hr. Toy and seconded by Hr. Phillip a that Hr* Thurlow J. Canpbell be reelected Chalroan of the Executive Countttee for the ensuing year, notion carried. Kr* Ceerobell thereupon took the chair* e '3 Election of Tice-Chat man It <ras noved by Ur* Uelun, seconded by Ir. Phillips, that i!r. 3. D, Griffin be elected Vlce-Chalrnan of the Executive Connlttee for the ensuing year, notion carried. Election of Advisory h'enbars President Trigg ercplained that the by-laws provide for the election annually of advisory nenbers of the Executive Comittee who nay not serve nor* than three consecutive terns of one year each. E* stated that I.*r Charles 'V Eastwood and Ur. H. S. ilargetts are the present advisory nenbers of the Connlttee and pointed out that Hr. Eastwood has served three consecutive one year terns and is therefore not eligible for reelection. President Trigg placed in noninatlon for eloctloa a* advisory nenbers the nones of H. S. Hargetts and Charles J* Eohj the noninatlon NCA 0 03074 -2 is seconded by Kr. I.'elun ar.d !:r. ria g s 11 b and i-*r. F.oh 'ere ur.anir.rusly elected , ivlsoiy members of the Committee. Election of Executive Vice President Vice Fresident as recommended by the Executive Committee at its last meeting, It ves moved by i`r. Tuloterger* seconded by Ur* Valter Clark that Tvael 'f. Elton be elected Executive Vice Fresident of the Association. Motion carried. i.'inv.tes of the Last Keetln^ The Secretary stated that the minutes of the previous meeting had been nailed to all r.e~.bers of the Connittee and that the agendum for thi3 Meeting would take care of any unfinished business carried over fron the last .nesting. The Chairr.au stated that if there were no objections* the Minutes of the last coeting would be ap proved without reading and there being no objections* the CI-.airr.au stated that the ninutes of the Executive Corraittee Meeting held October 6* 19^5 are approved* . Fenort of the President Fresident Trigg stated that as his report* he would cement on several itens ap pearing on the a-endun. Brand Tares Research Foundation. -- Fresident Trigg stated that following approval given by ner.bers of the Executive Committee* he ha3 nccoptod appointnent as a member of the Foard of Directors of the Brand ITar:es Research Foundation and will attend a neeting of that Board next week* Anerlcan Standards Association -- Fresident Trigg stated that this itou is on the agendun as a natter of record only* See attached copy of letter dated January 8* 1946, addressed to Anerican Standards Association* Haw Tork 17* i' T. - which let ter voices the industry's objections to the application of standards to the pro ducts of the paint industry* .(Zbchibit I!o* l) University of Michigan Paint Course -- President Trigg stated that this itea is included on the agendun as a natter of record and he referred to the attached let ter dated January 11* 1946* addressed to ambers of the industry* announcing the establishment of graduate and under graduate paint* varnish and lacquer courses at the University of *>ichigaxv (Exhibit To* 2) Advisory Cft--fftao Heating -- President Trigg stated that the nenbera of the Advisory Connit^ea net ^or a di ecus si on of the oil situation and he referred parti cularly to a letter addressed to aenbere of the industry dated January 11* 1946 reporting *faporte froa Argentine Hold Hey to Gil Situation** (Exhibit Ho* 3) Titanlun -- The subject of titanium will be discussed later by representatives of the titaniun producing concerns but attention was invited to the ninutes of a Meeting held January 2* 1946 with representatives of the Havy, Arny* etc* (Exhibit :io. 4) Cooperative Advertising Carroal/ra -- President Trig-: reported that slightly r.ore than three hundred thousand dollars has now been subscribed to the cooperative advertising carrnaiga end he stated that Laurence Kiefer of the Aosociation Staff is now on a trip which will include all of the principal paint centos of the country and during which he will call on individual prospective subscribers to the campaign. NCA 0 03075 CFA - President Trigg stated that the Association is getting strong pressure from many manufacturers to urge CPA to authorize an increased .-rice ceilirg cn pair.t products and he referred to a letter recently sent to nsr.be rs of the industry ex plaining the CPA position and pointing out-that CPA considers only an entire in dustry- and that industry rust he able to show that it is earning less rn.cr.ay at the present tice than it earned in the "base period 193--1939 in order to get relief, He pointed cut that this consideration is "before taxes" ?-nd stated that the industry has been unable to r.u!-:e a case on that basis and he stated that the Association has --rdeavored to present a convincing case to CPA but had "been firr.ly but politely laughed cut of court". President 'Trig-j stated that he would aupreciate the receipt cf any suggestions frcr rer.bers of the Executive Committee who thought it right be possible to present a successful argument, In answer to a question by Mr, Sul see r- gsr, President Trigg stated that insofar as he had been able to learn the CPA plan did net take into account percentage return cr. capital investment, hr, Kins nan express ed the opinion that the CPA plan should ba based on<'percentage cf return on invest ment and pointed out that while ..vany manufacturers handled more dollars in their trans actions, this p.ast year, their percentage of return on capital ir.vest.nent decreased, Ke expressed the belief that a manufacturer should not be expected to continue to operate at a loss - and that the industry as a whole should .sake application for re lief rather than having individual companies make such application, Mr. iforn suggest ed the possibility of raking an effective appeal on the basis of public less through the discontinuance of production of items on which a profit cannot be .cade, Mr, Xinscan expressed the opinion that unreasonable controls should be discontinued and he expressed the belief that free competition would prevent inflation. President Trigg recommended that a committee of three be appointed to cake a thorough, study of the situation and a motion for the appointment of such a co:x.iittee was cade by lir. Kinsman, seconded by Mr, Lane and after some discussion was unanimously ap proved. During the discussion. Mr, Sterdel expressed the opinion that it might be advisable to delay action on thi3 natter for approximately thirty days during which a pattern in the price situation will undoubtedly be developed. President Trigg expressed the bslief that the committee should be appointed in order that it night have tine to consider a possible appeal for the industry and to be ready to present that appeal when the tine is ripe. Unfair Competition Cooaittee President Trigg pointed out that the by-laws of the Association provide that "The Unfair Competition Committee shall be appointed by the President in collaboration with the Chairman of the Executive Committee, subject to approval by the Executive Committee1** Btrstated that in accordance with thie provision and with the collabora tion of the Chaelnan of the Executive Committee he recommended reappointment of the present membership of the Unfair Competition Committee as follows* Charles <J* Hch, (Chairman) Interchecleal Corporation-Finished Division; W. C. Dabney. Jones---sbnay Company; 0, J. 5, deBrun, Egyptian lacquer Manufacturing Company; Katt Denning, E. I. duFont de Honours & Company, Inc.; E. D, Griffin, Pittsburgh Plate Glass Company, V. I, Longsvorth, Lilly Tarnish Company; T, J, McDowell, Sherwin-Williams Company; Carl J. Shunann, Hilo Tarnish Corp,; H, L, Webster, Pratt 4 Lambert, Inc, It was roved by.Mr. Phillips, seconded *oy Hr, 3owr.es, that the recommendation of the Presi dent be approved. Motion carried. Flax Institute - President Tri.;g stated that for a number of years the Association has been making a subscription to the Flex Institute which i carrying on an educa tional program in an effort to increase the flax production of the country and he . recommended that the subscription bo continued. It was moved by nr* Sulzberger, seconded by Mr. Melum, that a subscription in the amount of $1,GC0 to the Flax In stitute be approved* Motion carried, NCA 0 03076 - 4- /-cc--sr.dation to Mayy ?.e.-ardlng Aluminum Paint -- President Trigg atato-A that in discussions with the iTavy regarding a possible reduction in the amount of titanium to he used in painting ships, the Uavy had requested suggestions and cne suggestion :utnitted by the Association v:9 the possibility of substituting aluminum paint for -:r.e of their requirements. Ee referred to a latter dated January 23rd, addressed ly the Association to Pear Admiral P.oger Paine of the A*ny or.d -avy Munii :r.s Toerd. (Exhibit "o. 5) 19!-.6 C :.-.Teation -- President Trigg stated that the subcommittee appointed by the l/e Committee has not as yet held a"meeting in view of the fact that as yet r.o sui ;-rle acco:u'.:datio"9 have been found. He stated that reports to date imdieate all accommodations in Atlantic City, hew Tori: end Chicago have been sold out bn.t he expressed the opinion that suitable arrangements for the convention will be dc-v elomai. Callfo.r.ia ?air.t labeling Regulations Mr. Macdonald reported on pair.t labeling regulations in California. If similar regulations are adopted in other states they will constitute a burden on the in dustry. Turing the Sumner of 1944 California Industrial Accident Commission, pro posed a safety order regulating labeling of products containing any of a great var iety of ingredients, many of which are used ia this industry. Disclosure of the name of the hazardous material and a vnrning or poison notice would have been re quired. The regulation was vigorously opposed. Tor some time thereafter California manufacturers made use of a general caution label which they hoped would comply with the intent of the proposed order. The natter was reopened and a revision of the original proposal was issued, to be effective January 1, 1346, later postponed to April 1. The situation is disturb ing. Similar commissions or boards in other states nay follow the lead of Calif ornia. Oregon has already done so, but fortunately its reflation, at present at least, applies to chemicals and not to our products. California members have appealed to this Association for assistance.- The proposed labels follow closely recommendation* of the Manufacturing Chemists' Association intended for labeling of chemicals. The regulation, however, appliee to finished products containing any of the listed chemicals "In any percentage*. A hearing will be held February lh, and attended by our California neobere and by Dr. barren H. Vatson of the Manufacturing Chemists' Association which is dis satisfied with the regulation. Dr,. Vat son will support our industry's opposition,, and its proposal that Ohs general caution label be applied to our products oontaining the listed materials,, instead of a special label for each product as pro vided in the suspended regulation. Although a general label in use was rejected by the Coaaissloar it is believed possible to make progress in this direction if the Commission can bs induced to separate our products from "chemicals* as such and consider the two groups separately on the theory that the hazards are quite different,* Activity in the matter of safety regulations is reported also in Ohio where a proposed code on industrial public hoalth hazards is under consideration. They 1 "would apply to every -dace of employment. Fear has been expressed that in ths s P>foro proposed the regulation would apply to painters applying paints in residences under averago conditions. Members in Ohio are in close touch with this situation. President Trigg acknowledged the fine cooperation our Association bae received fron the lead Industry Association and fron the `-enuf acturlng Chemists' Associa tion and he referred to Kr. Macdonald's letter of January 25th, addressed to Mr, H, S,. Hargetts. (Exhibit Mo, 6) NCA 0 0307? Linseed & Other Drying Gila "r. Priest stated that because of the shortage of other drying ells, lir.seed r.ow -^counts ""or SO percent or more of our total c:r.sur.r:tion of drying oils and our I3U5 crop 1 while close to 37,000,000 bushel*' as compared with 23,000,000 bu?V-:1s in 19^1 far short of providing sufficient oil to support the 75 percent cver-all .iota imposed by VFO-h2a. Hence our situation during the next six rrr.th* 'ill be determined by the amount of flaxseed or oil we are able to get from Ar gentina. He stated that at the meeting of the V?3 Ir.lustry Advisory Car.-.ittee lost Sept;-1 ;-r, there '.'as substantial agreement between representatives of the Department of Agri culture and members of the Committee that for the twelve months ending June 30, L}'-6 there 'ould be available for all uses about S35OC^^^ pounds of drying oils, in cluding 120,000,000 pounds of linseed oil from 6,000,000 bushels of Argentine seed, of which 1,000,<">00 bushels was e.vpected to arrive before the end of the year end the other 5,000,000 bushels during the first six months of I9'-6. ilr. Priest said that the Committee went on record at that time with a recommendation for immediate re vocation of the order and this recommendation was formally presented by a subcom mittee to t`r. Jas6pon of the Department of Agriculture on the following day* At that time hr. Jasspon convinced than that revocation of the order would weaken his trading position as a member of the Combined Pood 3card in an effort to obtain a lar-er allocation of Argentine seed, and accordingly they urged that the quota, which was then 45 percent plus exempt uses, be raised to the highest possible level consistent with reasonable expectations and that all exempt uses be eliminated. This was done and the 75 percent quota upon which we are now operating was estab lished on that basis. As previously stated, however, it is based upon the assumption that we will re ceive 5,GnO,000 bushels of Argentine seed which can he converted into oil in tine for use during the first six months of 1946, and this is not a certainty, though there is a possibility Of receiving even core. There is no free trading in Argen tine flaxseed. As the result of an agreement completed between our State Depart ment and the Argentine government last spring we have contracted for the entire exportable surplus from the 194$ end lS4o Argentine crops. In this transaction however we are acting as agents for the United Nations and such purchases are sub ject to allocation by the Combined Food Board, which thus far has sent the greater portion to Europe. Internal transportation in Argentina is said to be in a bad way and right now, after having given priority to movement to the ports of flax during December, wheat for Hurope is receiving first consideration* Nevertheless there are 18,G00,(XX} pounds of linseed oil due to arrive next week; it is contaminated oil containing.perhaps 4 or 5^- fuel oil end until sa/rples are received it will not be '-nown lAether it Is uitable for our use, but otherwise itcan be used in floor coveriiljjgl or in core oil so that the net result will be to make an equivalent amount of dosfiMtlo oil available for our use. * There were also 350,^00 bushels of flax purchased for shipment in January but this has not yet been shipped because of a dock strike. :;r. Priest reported that the political situation in Argentina is much confused and there have been published reports that the Argentine government finds itself unable to meet its commitments because of the low price provided by the^ agreement -*ith our State Depert-ent. The farmer gets ^1.28 at the port and we pay $1.66. la the De partment* of Agriculture they tell us they have received no official confirmation of this report but nevertheless it appears that the Argentine government is not selling and our government is not buying. There is an election due in Argentina within the next thirty days and it has been suggested that the present government does not wish to embarrass its successor but that, if reinstated, it will seek to renegotiate NCA 0 03078 - 6- for a higher price. Ha stated that the people in the Department of Agriculture appear to he fully alive to the seriousness oi' the situation and are doing everything they can to help, Mr. Jasspon has "been dovra there for the past two months end is now on the ray tao>; in :*act conversation with his office "by telephone this morning has revealed that he is in Miami today and will he hack in ..'ashir.gten within the next day or two. In his absence/ his asrociates have teen unable to get ^ovrn to an intelligent analysis of the prospects for the next few months without a d finite '*j.owleige of the amount of flaxseed re are going to gat from Argentina and '.hen re are going to ,e t it, This rill be developed shortly after !."r. Jasspon's return and re shall of c;:.rsa arr.uva to see him and to review the entire situation. It should be pointed out snid Kr. Priest that even though, at the worst, it is not possible to obtain the 100,000,000'pound * of oil from Argentine seed during the first six months of this year upon the c. ..motion of which the 75 percent quota ras based, there has been a materiel improve ent in the dopestie. situation. The estim ate made last Septen' er included only 5,aj C0O,''-O0 pounds of oil from cur domestic crop. This was reached by taking Sy* of the July estimate of 33,0C0,r>00 bushels as the*amount which would probably come to market, based on the ei.-perience of recent years, and figuring 20 pounds per bushel on the resulting 27^ million bushels. The last and final estimate of the crop in Decea*-or wag 36.S r lion bushels, and upon the same basis this would indicate a total of 6l00000<*>0 .ounds of oil in stead of the 5'4S,000,^00 entering into the original estimate, Cn the other hand v:e are told that the farmers appear to be holding back a considerable quantity, pos sibly in anticipation of an increase in the ceiling. It has also been suggested that the Department of Agriculture has been withholding final announcement of its I9U6 crop incentive plan for fear farmers night be holding back sone 19^5 flax in an effort to cash in'on it in I9U6, the preliminary aanouncenent in November having stated that the price would be supported, by acreage paynents or otherwise, at *3,60 per bushel at Minneapolis, which ie 5<V & bushel in excess of the present ceiling. He stated that it is also possible that there nay be lesser quantities of some of the other drying oils available than was contemplated in the September estimate. The California fish oil crop is said to be thort by 20 or 25% Castor oil has been scarce and for a tine recently was withdrawn fron the market. Mhile it is under stood that there have.been internal transportation difficulties in Brazil which are responsible in part at least for the smaller quantities of castor beans avail able for ehipaent, our ceilings for oil are based on beans at .175*00 per ton and the price has gone to 5100,00 or more so that it has been impossible for crushers to buy beans at thie price and to sell oil at our ceiling price without taking a loss, Hecently.in tB^belief that their appeal to OPA for an increase in price would be granted they lMH* been neking sone deliveries tn open billing, not to exceed 2$ a pound above tBo present calling, after OPA has finally acted upon the appeal. Soy bean oil is prohibited for use in protective coatings except as a plasticizer for lacquers and in the manufacture of synthetic resins. After the end of the war the use in resins increased markedly and because there is still insufficient oil to meet edible reoulrecents the Department of Agriculture issued an order Uniting monthly use in`the manufacture of rein to l/b of the. quantity so used during the first six months of 19^5*' Hecent arrivals of snail lots of tung oil from China have given rise to nany con flicting reports concerning the resumption of large shipments, 'fa havs been unable to develop any accurate information concerning the quantities available for export in China and the probable date of shipment. It appears likely that the email lots of Uo to 50 tons which havs been received and are in transit have been held at the NCA 0 03079 -7- pcrts during the v.-ar and are Just crning to light, s.-.d reports of the ir.alysis of the oil which has been received appear to bear out this conclusion. Apparently there is such left to be done in the way of stabilization of currency,' establish ment of bank credits* and restoration of transportation from the interior to the ports before we can look for shipments in oubsts-itial cv.ar.titio. Glycerine Mr, rriost stated that glycerine, used in the manufacture of synthetic resins, is a bv-prciuct of soap manufacture and is currently very tight. Like ourselves, tho soap .--"ufeoturc-rs are operating under a q:cta* and prior to the er.i of the '-nr h-.i exempt nilitar;* uces but with the cancellation of military contracts their cir.sr jtion of oil and production of glycerine was greatly reduced, Sea? r-_-.ufacturor3 have always used considerable quantities of coconut oil from which the yield of glycerine is greater than with other fat3 and oils, including lard and tallcv. luring the war we got sane coconut oil fron copra fron Ceylon but that is now all going to Turopa In the expectation that cur requirements will be net by the Philip pines. Three or four months ago we were told that we mi ht expect 5^1000 tons of Philippine copra in i*ovember and December, but actually received only about 3500 tons." The Japs took away all the trucks used for internal transport on the islands and also the inter-island steamers used for taking copra to the Philippine refin eries or shipping ports. `*e are no*.# getting some of our trucks into "these islands and efforts are being made to improve water transport so that it now appears that '-a nay expect 75,000 to 100,000 tons in the first six months of the year end, pos sibly twice that in the last six months, as coiipared with normal receipts of 500,^00 to 600,000 tons per year* Surolus Paint Materials Mr. Priest stated that up to the present tine at least the surplus paint: materials which * ave Jtnde their appearance have not created the serious problen that was antic*, ated and it is possible that it will not prove to bo a very serious problen at any tine, "e began our discussions with the Treasury Department, which was originally designated as tho disposal agency* more than two years ago. Then the Reconstruction finance Corporation cane into the picture and for a tine it appeared that there night be a division of authority, with the Treasury Department handling consumers goods or trade sales items end RPC taking the specification finishes, many of which t*ould require reprocessing, tfa were successful in our representa tions to both Treasury and RFC that there should be no divisioh of authority end it finally all wound up in the hands of RFC, Of course they have only what is declared to then as surplus and up to the present time most of J# material which has been offered has created little interest. In the beginning** circularised several lists for then among manufacturers but they are now aaklfl& their own distribution and because of the criticism directed at the Army for negotiated sales they have felt that they had to advertise and other* wise offer these materials for sale to the highest bidder. There were several nillion pounds of dry povJer cold water paints that were used to reinforce levees on the Mississippi* There has also been a quantity of resin enulsion camouflage paint, sons of which has been sold in South America* Most of what they have now is in two specifications for which there appears to ba no market* *.fe have urged / its use on lTavy and Mari tins Comnistion, but thus .far without success* As for / specification finishes for automotive transport, etc., it appears that disposition may have been nade in the course of contract termination} at any rate there have been no large declarations and there may be none. Cantonment paints are also noticeable by their absence and are probably being held for maintenance* N C A 0 03080 -3- He said ft is interesting to note that in a recent meeting '-m th renters of cur Asrcciation Committee oa Surplus Materials! the representatives of the goverr.rsnt thenselves expressed the opinion they would obtain best results by Seeking out the original manufacturer and offering it to hlm-and, if not interested, asking his ad vice as to uses to which it might he properly put, <-hich is in effect the original recommendation bf the Comittee. two years a~o. Has in President Trigg etated that he had invited i.'r. "ells i.'ortir., Chief of the Plastics end Protective Coatings "ranch of the Che.vica.ls Division of the Civilian ?roducti:n -dr.-ini strati on to attend this meeting to bring the Co..: uttee up to date cn the sub ject of "H.asin**. Mr. Martin stated that known stocks of all twenty or more grades of gun and wood rosin as of December 3-s^ 13-5 i*'- the -South, according to the De partment of Agriculture, amount to 155,000 drums and that the estimated stocks in consumers* hands amount to 27C,COO drums, or a totnl of (pu q inir.s as of H:cem ber 31st, 19-5 in comparison with 3SS266 as of ikirch 31st, l`3'-5 - 572,839 drums as of December 31st, l^hU and 7>'d,7C6 dr.u:s as of . arch 31st, 1344. He pointed out that in spite of severe restrictions, both 5a dors03tic use and oa exports, the short position on rosin has shewn little or no improvement during the past twelve months - and that r.o worthwhile increase in production has been shewn throughout the past eighteen months despite various price advances from CPA, se cured by the gun producers for the stated purpose of assisting then to increase pro duction. He pointed out that notwithstanding a price advance on E-grade of gua rosin froia ''2.10 per 100 pounds on December 31* ly'-K) to \'>6.C0 on December 21, 19-5* gum rosin production has not improved. Ke expressed the belief that this was pro bably due to labor shortages and advorse v'cather vrhich were both beyond the con trol either of the industry or of the government. Kr. Martin stated that up until lest week no evidence existed of any substantial return of labor to the woods, and ho pointed out that <hwi ITaval Stores work is hard, disagreeable labor and that those who do return to timber areas prefer logging and pulp work to ITaval Stores work. He reported that expert opinion is not en couraging in its estimate of the nunber of nen who will return to Gun ITaval Stores work, provided other work is available and provided also that a certain class of these workers has any noney left* Mr. Martin stated that the heavy production of gua rosin occurs in June ,-nd that the percentages by months froa January through June run as follows, according to the Department of Agriculture* January 2^ - February 2J - liarch 2^5 - April 8$ -- hay ll - June_l60 Kr. Martin pointed out that gun rosin production has already been hampered. HTeone areas because of unusually severe rains in the '.foods during the past several weeks and he expressed the opinion that the production between now and June* plas current wood rosin production, cannot neot current needs by the rosin consuming industry and he expressed the belief that to meet requirements during the next few nonths, use quotas under K~387 should be maintained at present levels and exports should not be increased. He pointed out that it is a physical impossibility for many large individual users to keep a five-months inventory - end that a great many small users either do not or cannot keep a five-months inventory. He stated that past e:n>erience would indicate that there is a large unreported dis appearance of rosin. Mr. Martin stated that the period between now and July 1, 15^6 is a critical period for rosin and other resins and he pointed out hat the removal of all restrictions within that period could result in a chaotic condition - : inco there aro no com plete substitutes for rosin. He pointed out that larger usors could take up practi cally all rosin available and that 4Xport demands alone could take up noet of the NCA 0 03081 -a- * resin within sixty days. Mr. Martin expressed the opinion that the problem' now is how to carry the com paratively snail stocks of rosin in the South. He stated that Uncle Sam had carried the stocks until the government stockpile vas exhausted! having been drained from 1,500,000 barrels down to 6,000 barrels in less then four years tins and he ex pressed the opinion that this condition belied th.9 statement that there ^ as too much production and not enough demand in this country. 'He'stated that the dealers carried the stocks when it vas speculatively advantageous from then to do so tut pointed cut that the speculative angle is not new present. The Commodity Credit Corporation car.rot offer ar, attractive solution based on psssc-nt gen rosin prices and he pointed out that total resin stocks in this country are at about th:-ir low point in almost fifty years. Mr. Martin stated that the heavy increase in anticipated wood rosin production so widely prophesied - depends on the completion of plants, the largest of which is still in the drawing board stage and he pointed out that no heavy increase can cone in either gun or wood rosin production before the period July to September ioh.6. He expressed the opinion that tho highest possible increase for the year in both gum and wood rosin would be Uc0,000 drums and statod that based on past ex perience it is more likely to be around 300,000 drums, from which 200,000 drums will be required for export and 50,000 drums fof rubber and he pointed out that say discussion of large production increases should be considered in the light of experience during the past three years since weather and labor conditions are still factors which have to be taken Into consideration, Mr. Martin stated that the tight situation on rosin is bound to continue throughout this calendar year - and there is not enough rosin in existence to meet the re quirements this year - end that the Civilian Production Administration is deeply concerned about the whole situation. Mr. Martin stated that these facts hod been presented to Congress but that It vas apparently considered as not pilitically expedient to contir.no the ro3in order in effect. He expressed the opinion that within forty-eight hours the order nii.-ht be revoked but stated that CPA will endeavor to hold the line on export against an anticipated demand for increasod expert. He pointed out that the paper industry1* denand for rosin during I9U6 will be from two to three tines as bigji as it was in 1945 and that th* demand from the rubber industry will be increased over their last year:a use. In answer to a question,.Mr. Martin stated that CPA is trying to stay out of the titanium situation and lie expressed the opinion that the titanium industry bad done a swell Job Atari&S the war years and was being asked to continue its method of distributlo&rffr In answer to a question by President Trigg, as to what our industry could do to stem the growing tide of rosin expertc -. Martin stated that he did not know what the industry could to at the present time but would keep the Association advised of any developments. He seated that CPa 2ia an agreement from FZA that they will stay within their quota for the next tv/o months and would continue to work with CPA in handling the situation; he pointed out that 7UA is under tremendous pressure frora foreign* countries for increased export. President TriGg asited if an expression from this Connittee as to how it felt regarding the situation would be of any value and it was moved by Mr. Korn, oeconded by Mr. Sulzberger that the Committee express itself to proper authorities regarding its position on the question of rosin ex~ port. Motion carried. NCA 0 03082 10 - Kr. Kartin stated that a letter has been seat to the 1-e.vy Eema.-tri.nt requesting a reduction in their use of titanium. In answer to a question by *.'r. Kirr-zan, r. Kartin stated that the new production cf titanium is to ha handled by the producers in the sane manner as production during the war years vr.s handled} he pointed out that the demand at the present time for titanium is 200^* of present production, hut he expressed the belief that the manufacturers vri.ll be very fair in their demands and that the producers of titanium will he successful in their handling of the situation. Kr. :reur.ann eo-rpressed the opinion that in view of the veteran preference, titanium man ufacturers ''ould find it very difficult to govern 'he situation. .-.- ericaa Standards Association j - < f, urrtf+f- 4. The Secretary stated that the American Standards Association is a federation of seme eighty national technical societies - trade associations and government departments which has as its rain job the development of national standards through the cooperation of all groups concerned v-ith that particular field. Ee stated that seme members of the Association have expressed the belief that it might be beneficial to the paint industry if the rational Association held membership in the American Standards Association so that our industry could be kept advised re garding all proposals for standards which night affect the paint manufacturing business and so that proper steps could be taken to prevent detrimental action,It was moved by. Kr, Toy, seconded by Ur. Heiuo, that the National Paint, Varnish and Lacquer Association apply for membership in the American Standards Associa tion, Kotion carried. Remort of Treasurer Treasurer Foy . eferred to the Comparative Balance Sheet as of December 31- 1945I9UU and the Report of Income and Expense for the period October 1 to December 31, 1945-1944,' "(Exhibit To,- 7) and pointed out that the Investment Account la up approximately one hundred thousand dollars, that there is an increase of Income over Expense amounting to twenty-eight thousand dollars - that the surplus after an appropriation of one hundred thousand dollars for the T.etirenent Plan la practically the 9one as it was last year - that Incone from Dues for the quarter year are approximately ten thousand dollars in excess of last yoar and that the various expense items are well within the budget.' President Trigg pointed out that the fourth quarter year is normally low in ex pense as coopered to Incone which explains the rather large excess of Income over Expense, .Sulzberger suggested the possibility of adjusting the annual budget 30 that expert!* iteoe would be allocated to those periods in which the expenses occur but Ptjwident Trigg pointed out that the preseat system has been operating satisfactorily for many years and expressed the belief that no change should be made at this tine. Kr. Foy stated that the Budget . Finance Co:mittee had reviewed the financial statements yesterday and recommended acceptance. After a careful review of the various schedules* it was moved by ur Shannon* seconded by hr. ITeunann* that the report of the Treasurer be accepted; Motion carried. Report of Budget t- Finance Committee Annroval of 1946 Budget_____ _ NC A 0 03083 Kr, Foy as Chairman of the Budget l Finance Committee stated that the committee was in session most of yesterday roviewing the proposed budget for 1946. He stated that the estimated receipt# for 1946 amounted to approximately $343,000 - 11 - I'.-.st the proposed budget for 15U6 -;unted to pproxi.v.a.tsly C301,000 - that a-.tual expense in 19^5 vas approximately .2^1,000 and that the increase of approximately 50,000. in the proposed budget ever the expense of I9U5 is nade up of!*.12,COO in crease in salaries to trim; the salary structure Tnto line - ^33r000 increase in C?ean Up and Paint Up budget, as approved by the .Executive Cc.ur.it tee at'its last nesting - '5,000 in building naintenar.ee (painting) - .5,000 Teacher's Manual *1,200 Tear Book publication ~':*1,500 Cooperative Advertising Campaign and s,2,r-00 increase in traveling c-:<pense hr. Toy pointed cut that on the basis of anticipated ir.ccr.e, there vas an apparent excess of Incore over Terrence indicated in the cr-cur.t of approximately !';OtCQO Ur. Toy stated that the budget had been carefully con sidered by the Budget & Finance Ccc.-.ittce at its meeting yesterday " that each it-m had been analyzed and that the Committee reCt-Vchded the budget for approval. It vas moved by Ur. Horn, seconded by hr. Kinsman, that the budget as proecsed for 15^6 be approved, `Motion carried* V. S. ITavy Certificate of Achievement President Trigg stated that on January ibth, 19^6, the Association recoived from the T-avy Tepnrt-.ent a letter reading as follows* "It is my distinct pleasure to advise you that the "avy's Certificate of Achievement has been awarded to your organisation. "This certificate, which is being sent you under separate cover signalises the -avy's recognition of the splendid effort put forth by the nen and vomen of your organisation in support of the var production program. "V.'e hope you will express to these nen and vomen the wavy's sincere apprec iation and thanks." President rigg stated that the Certificate reads as follows: "United States Havy Certificate of Achievement awarded to national Faint, Varnish and Lacquer Association in recognition of exceptional accomplish ment in behalf of th* United States ITavy and of meritorious contribution to the national war effort." Signed - H. ?. Hensel. Assistant Secretary of the ITavy Dated - December 26. I9U5 Retirement Plan Mr, Foy stated. $iat a great deal of tine has been given to the development of a retirement plaasaad that the Budget ' Finance Committee spent much of Its tine yes terday considering thle matter. He pointed out that .'100,000 has been set aside by the Sxecutive Committee at their meetings of last July and October and that the Special Committee appointed to consider the matter had reported progress at the October nesting. He* stated that there ie a difference of opinion both in the Special Committee and in the Budget A Finance Committee as to Whether or not a Trusteed Flan or an Insured Flan la the better clan to adopt and he statod that it vas finelly de cided by a majority to adopt the'Insured Plan with life insurance coverage through a life insurance company^ He stated that the President had been authorised to have the plan drawn up to he referred to the Budget < Finance Committee for final ac ceptance. Mr. Foy expressed the hope that by the tine of the April meeting of thle committee it would be possible to report the plan in action* NCA 0 03084 - 12 - Eemort of Sett.ntific Sect! oa !'r. George G, Sward* Assistant Director of the Scientific Section presented the following report* '.-.3 risible results of-the past quarter are not very imposing, consisting of two circulars# two Abstract reviews, and the annual indexee'for all the circulars and oviews issued during 1S4. However progress has been .made on the Kesin Index# Pre servatives circular, a report on the oil-conservation paints# and a circular designed to call attention to the r.eed for paint after the wartime period of neglect# A circular on testing insecticidal paints is now being reviewed by the Scientific Section 2>.ur.ittoo ' Still in the nill are nur.ercus activities that should have good results. The r est important of them will be mentioned in this report. Pursuant to in:tractiona of the Scientific Section Committee* a plan hue been out lined for obtaining increased GHOTHiG 01* DP.YITG OIL CHOPS* Playing a principal role will be visits to agricultural experiment stations# fc.ro organisations* chambers of commerce# and to others who already are or night become interested in this subject. E.-ery opportunity to direct attention will be seised, .vt the present time exper imental culture by us is not contemplated. It is hoped that our moral sup ort will result in experinsntal work by these nore qualified than we. It is a long range project and has been placed under the direction of <r. Scofield to whoa is due the credit for most of the details. Ur. Scofield is right now planning a trip through the Southeastern states and as far as Texas in the Southwest* A conference has been held with Ur. Donald Tulloch, Jr.* Kanager of the AsbestosCement Products Association to discuss plans for C00?t?.i?IVE PAlTT TESTING. This testing would be on a practical scale in ceveral places where dirt colic ;oa eer ie* isly detracts from good appearance. '..*e are asked to supply the paint ar,d the other.Association will apuly it. This project was first mentioned in ay October report* The attention of cur membership has been directed to regulations of the Corps of Engineers relative to the use of fiberboard in buildings used for certain types of occupancy* where TIES RESISTANCE is demanded. Since the regulations nay bs extended by other authorities to a wider field of construction* a demand for fire resistant paint ony be imminent Considerable time has been used In conference with Krs. Kiefer in the preparation of the text fo*_ "Paint Power -- and Sow to Sell It** A survey of tife'sclentlflc research activities of sone thirty trade associations has been coqpSftted and summarized and is ready for the consideration of the Scienti fic Section Committee at its next meeting. The adjustment of secretarial and stenographic voik necessitated by the retirement of Kr. Sutler has proceeded smoothly. !ir. Butler naturally was faallar with every phase of Scientific Section activity. However, Krs. Edwards is alert and eager to serve and there is every indication that the secretarial work will be properly done. The personnel situation in the laboratory is sontVrhnt improved by the addition of Kr. Alexander Bolton to the staff*. Kr. Bolton is of junior standing in college and was in the Amy for 34 nonths where he was a photographer in a bomber. He was in 19 missions over Europe* NCA 0 03085 - 13 - ?'ijor Van Ecuckcroth vho has been in the Corps of engineers since February 1341 ' ill be placed soon on inactive status and has advised us that he will remain at Fort Belvoir in a. civilian status in charge of the laboratory and will not return as a member of the staff of the Scientific Section. After ten years of effective service, iir Frank Sulzberger has declined reap-c-ir.t-- rent as chairman of the Scientific Section Committee, but will continue to serve as a rcr.ber. Hr. Sulzberger has been succeeded by hr. E. W. Fasi-g, veil kr.ovn to all of you. Hr. Fasig is familiar with the work of the committee, having been a member for three years* and his chairmanship is certain to bear excellent fruit. In ar.o-ver to a question by itr, Lane regarding "Aquella", Hr*. Svard referred to a letter issued by the National Bureau of Standards (Exhibit '.fo. 6) in vhich it vas stated that "Aquella" vas not included in thoir test to the extent referred to in recent magazine articles* Hr. Horn stated that "Aquella" is just another Portland C-;ent base paint - that it vas not used to waterproof the h'aginot Line as indicated in the advertising - and he expressed the opinion th-.t "Aquella" as reground Port land Cement with color added. Hr. Kinsman expressed the opinion thst the entire situation vas hardly worth consideration. In answer to a question by Hr. Sulz berger regarding "fireproof paints", Hr. Svard stated that in certain types of oc cupancy here fire resistant construction is required, fibreboard nay be used pro vided it is covered with asbestos cement or other board of equal resistance --- or if it is painted with a suitable fire resistant paint. The test for fire resistance is rather severe, namely twenty minutes in a flane developing a temperature ot 800C* The material nust be no worse than "slow burning". Only one paint has been found to pess the test. The Scientific Section has not examined this paint and has no information regarding its cot-position. Hr. Sward 6tated that in-sc-far as he knew the requirements of the Corps of Engineers have not been adopted by any other Gov ernmental Agency. Titanium President Trigg stated that three persons are present vho should be able to give the Committee up to the ainute information regarding the titanium situation, Hr. Falph Heumana, Few Jersey Zinc Conpany - Hr. J. 7, Daley, 3. I. duPont de Nemours Conpany - and Hr. D. W. Robertson, Titanium Pigments Corporation. Hr. Robertson expressed the opinion that there is very little new to bring to the members of the Connlttee regarding the titanium situation. He stated that all of the titanium producers are doing everything possible to inc:ease their production and be expressed, the opinion that the total production of all plants nigjht be in creased from l40000 tons to ISO,000 tons by the first of next year. Mr. Hobertson stated that heard some comment regarding the possibility of substantial in creases in prddPOtion by the end of July 1946 but he stated that due to steel and electrical strflbes, it was improbable that there could be any substantial Increase in production before the end of the year and he pointed out that it takes from fifteen to sixteen months to complete any substantial additions to production facili ties barring strikes; In answer to a question regarding the possibility of import ing titanium pigments from Surope, Hr. Robertson stated that these pigoents are more scarce in Europe than they are in this country and that our manufacturers are being urged to make their products available for export. He stated there are two plants - one in England and one in Germany - producing titanium and that there are no idle titanium plants in Europe* Hr. Robertson stated that the titanium producers we're doing everything pcosible to relioye the shortage and ho expressed the opinion that there is nothing the Association can do at the present tine to change the picture, since everything is being done that can be done. stated that approximately 150,000 tons - 300,000,000 pounds - night be a good guess for production by Fall of ' 1946 and he stated that the present demand is for two or three tines the current NCA 0 03036 * eduction In answer to a question by Ur. Sownes, Ur, Kobertsoa stated, that the demand for titanium pigments has doubled every five years and he pointed out that there has teen no increase in equipment during the last five years. He reported that two or three years ago, his conpany with other producers, "endeavored to get '.V3 ap proval for extension of plants but that it was only recently that the request was granted. In anever to a question by Ur. Kurfees, Ur. H.obertscn stated that the 1'avy is planning to purchase r.ore titanium pigments than in any year in the past - that they hope to produce their entire requirements of paints ar.i do not plan any heavy paint purchases. In answer to a question by hr. Steudal, hr. P.ohertson stated that there is no problem in sight for the next two years ir.-ofar as supply of ore is concerned. In answer to a question by Ur. lane, Ur. ?.ob:rtson stated that i:. the distribution of titanium, all industry quotas will be nr intaimed and that no one industry will be penalized in favor of any other industry, He stated that if and when production is increased, the increase will be epread over all industry nc-c-de. Ur* Daly stated thare was very little he could add to vhat Ur. Hebert son had al ready said* He stated that his guess on total production is 13^,000 tone and he stated that the Uavy will take 6 of their production during the first quarter of this year, which .is somewhat less than their estimated needs. Ur. Daley stated that the paint industry will get their full percentage of the total production. He expressed the opinion that his company was not so hopeful regarding the raw material situation and stated that tho State Ruler xU India has expressed 3ob op position to the continued removal of Ilinite frou his country. Ur. Daley stated that the India Ilinite is the best ore anywhere available, having a oOp titanium content in coaparison to Adirondack UfjJj. In answer to a question by Ur. Horn, Mr. Daley stated that the increase of paper pulp dees not reduce the demand for titanium since the paper industry had learned during the war of the value of titanium in their product. Ur. Daley stated tliat his conpany is doing considerable work in an effort to develop new deposits of Xlimite in the United States. In answer to a question by Ur. Daley, President Trigg stated that when the paint industry reaches its billion dollar voluas (estimated to be I9U6) that figure will be 66 2/3# higher than the production in 1941 and he expressed the belief that the requirements for titanium will exceed the percentage increase in paint production and might be as ouch as GOjS. In answer to a> question by President Trigg, Ur. Daley stated that he agreed with the figures started by Ur. Robertson to the effect feat titanium requirements had increased 100yprery five years and that from 19*H to I9U6 there was no appreciable increase in protection facilities. Ha stated that the paint Industry took 70$ of the titanium protection in I9UI and that the paper industry received 12jS. In answer to a question by I.'r. Kinsman, President Trigg stated that the Association's estimate of probable increase in paint production was based on government figures for national income plus a caretel analysis of the amount of our product required on the proposed production of houses, refrigerators, radios, automobiles, etc. Mr. Kinsman stated that he believed most people would agree with the estimated figures for thesxt three years but he expressed son* doubt beyond that point* Kr. Meunann stated that there was very little he could add to what had alrondy been said regarding the titaniun situation, and he expressed some doubt as to where other raw materials were to cons from to make the projected increase in paint NCA 0 03087 - 15 - production possible. Se stated that there are to bottlenecks in enaction with ,iac sulphide, first equips eat and second, zinc raw materials and he o.vnrcs<=ed doubt as to where zinc raw materials in sufficient quantity v-ere to be fovnd In answerto a question by Hr. Sulzberger, Mr, Ibumsnn stated that there has been a everyrebduitctoiofnusinabtlheeEpqruoipdmuecntitonisonfewlithboepinegneusedduriinngtht.e'.e uast t--n y-If~s*i.>`J;tptih^--t ts. 1 IintyaonsfwienrcrteoaasinqguetshteionprobdyuMctri,onKoornf , tiMtar.niuRmobebrytsodnelsivtaetreindgthitattothcc-urotsis-Vnrso uineslsi*Mi EC-mi-; ini seed torn to be flushed, ~ Kc~.bc-r chin The Secretary stated that the following fims had been elected to cenbe.-ship in the Classifications indicated by a sail ballot since the last seating of the Execu tive Comittoe* Class A Art-Tax Adhesive Products, Inc. Brooklyn# IT, Y. Sealed Paint C- Tarnish Corporation, Brooklyn, Y. Standard Enamel and Paint Corporation, Indianapolis, Indiana Stuiebckor Chemical Company, Elyria, Chio Cla-s 3 Filtered Rosin Products, Inc., Brunswick, Georgia The Secretary stated that applications had boen received fre the following con cerns for nanbero-hip in the classifications indicated and he recommended approvals Class A Best Bros. Paint Factory, Clifton, N. J, H. A, Carroll & Company, Memphis, Tenn. Logan-Long Company, The, Cincinnati, Chio ..Pld^Olty Paint Company, Memphis, Tenn, Preserve Surface Company, Inc., Detroit, Michigan Robertson Co,, Inc. Louisville, Kentucky Venatchee Paint Class Co., Wenatchee, Washington Wolverine Finishing Materials Co,, Grand Eapids, Michigan Jp. Class B Pan iONsrlcan Refining Corporation, Texas City, Texas Class B Cadillac Vail Paper Co., Detroit, Michigan It was moved by Mr, Valter Clark, seconded by Mr. Jarden that the applications for membership as presented be approvod. Motion carried. Metal Containers In answer to a question by President Trigg, Mr. Stolk stated that the present situation with regard to metal containers, duo to the steel strike, was not at all NCA 0 03086  16 :eful. He stated that there vas no opportunity to build up any inventory - that tair.er r.snufacturc-rs are in a position to sap ly the needs for f:oa two to I ree weeks at the most cut that they are hopeful the steel strike will la rit i sd a*the very near future. He stated that his corpaay is planning to use their in* -entory down to the last sheet* There leir. no further business to core before the Corrittse* the resting ^'u ei at " * * * * * * ^ **f* NCA 0 03089 0 p Y ?. MAIL h . s. ;:ap.c-z ::s , Secretary V. P. Puller & Company }01 Mission Street S-.-j. Francisco, Calif. January 2*i 13^-6 This is intended to confirm, and perhaps to amplify. Kr. Trigg*s tele phone conversation, with you today. Ke discussed the labeling problem with Dr. Vatson in considerable detail. Priefly. Dr. Vlatscn is of the opinion that perhaps the best approach to a solution would be: (1) To except paints cr.i other coatings from Section $4 and consider the paint labeling problem separately in a new section. It is very difficult to deal v*ith the proposed labels new covered by Section 94.5 as they deal net only with tho chemicals but with cur finished p.cdvcts. Tho hazards cro different. A clear separation, and a sopar..to consideration may render cloar thinking easier.. (2) It nay be advisable to be prepared to except from a proposed to use a ger.oral caution label, products containing benzol or methanol. They are recognized as dangerous. If the Department has in mind our uso of a mere caution label on these products it might resist. If special labels are accepted by our industry for these products,.it is possible that the State authorities mey be inclined to accept the general labels. In view of tho fact that most manufacturers in California use formula labels,.this fact may be used to support tho general label proposal. Hot :ne*<*bttt all ingredients are disclosed. In the event cf an indus trial illness,.all information useful to a physician is disclosed. Of course, it is undesirable to invite formula legislation, but universal voluntary formula labeling night be persuasive. Dr. Vat sen expects to arrive cn February 11th and to confer with our nrubs.-s on the 12th. Very truly ycur3,. ` x, "O cc Mr. C. H. Scr.ihr.ua Tr. v^rrsn '*-itccn /s/ M.. q. MACTGMAhD C:.-.eral Counsel NCA 0 03090