Document 5L5xrqE4nBbE3ydRbqqd9qGXJ

Met for Publication.. R E P^O E T OF THE PRESIDENT 'f TO THE EXECUTIVE COMMITTEE April 23, 1953 INTRODUCTION Our future and that of all American industry depends today on a very large IF. IF the war clouds which have been threatening the Far East and Europe for years with an all-cut conflict are new changing their complexion. IF the so-called r:pe.nce tail's" in Korea hold a true prori.se for an armistice. This big IF affects our fu tures ?s individuals as well as cur business. Russia knows our great productive strength and that the end that eliminated the reigns of Hitler's and Mussolini*s political gangsters will surely be Haleaiov' s fate should he force us and our allies into a shooting war. With this, and our un-'toputod superiority in the atonic energy field, Pi-esider.t Eisenhower has potent sup port for his intent to preserve an honorable peace. I an convinced there will be no world conflict this year. One-third of 1953 has passed and I an sure -you feel as I do -- this is another y,,.ar of growth and expansion for business in general and for the paint, varnish and lac quer industry in particular. I am certain by intensified efforts we will establish new sales records again this year. The following resume of Association activities is submitted for your information: . C-iSKAL kfivil-S: Since the last executive Committee nesting, in addition to conferences '"n Mashington, I have attended: Putty and Caulking Compound Steering Committee, Washington, D. C. Officials -- Painting and Decorating Contractors of America, Washington, P. C. Advertising Subcommittee of Industry Promotion Advisory Committee, Washington, D. C. Annual Convention -- New York Council, PDCA, Tew York, N. Y. MPA Chemical Division Officials, Washington, D. C. KAIi Officials, Washington, D. C. Minn.-St. Paul Paint, Varnish Lacquer Association, Minneapolis, Minn. : Minnesota Senate Committee on Agriculture, St. Paul, Minn. Officials -- Minnesota Retail Hardware Dealers Association, Minneapolis, Mi on. Painting and Decorating Contractors of America Convention, Chicago, ill. OPS Officials, Washington, D. C. Detroit Faint, Varnish and Lacquer Association, Detroit, Mich. Balias-!!ouston Paint and Varnish Production Clubs and Southwestern Zone Association, Houston, Texas M" "SIAY SALKS: Sales for 1952 were C'l,35?J,36l,000, the sixth consecutive year they exceeded the billion collar nark. Trade sales were ^3i>6,08)4,000, 2.U percent ever 1951. Industrial Pi-oduct Finishes were 507,U77,000, i/.2 percent 1551. T'e are heeded for a record yc-ar, with January end February 1953 each `xpping C100 million. Total sales for first two months of 1953 were 212,950,000, a dins of 3 percent from the previous Trade cries accounted for ml?6,5?',000, a docii re of 6.9 p-rcent. trial Pro/wet Finishes rales -.are r. 36,0/6,000, an i.ciease of 3 percent ever 1952. 1953 COIfTENTION: Announcement of our 65th annual convention at the Chelxonte-Haddon Hall, Atlantic City, New Jersey, October 26-28, was released to the industry# MEMBERSHIP: For the quarter ending March 31, 1953> twelve new memberships and eight resignations were received -- a net gain of four manufacturing and wholesale members# EMERGENCY SERVICE V.Lnile CO: rols are virtually ended, v;e still maintain close contacts with government aogencies 229 Emergency Service Bulletins covering 6l5 subjects hat o been issued to date. CONTROLLED MATERIALS FLAK: KPA's CMP will be terminated June 30* If Congress au- thorisas the Defense Materials System, effective July 1, only Defense Department and Atomic Energy Commission orders will receive priority ratings. Manufacturers will need no authorisation to purchase steel, copper and aluminum for civilian consumption# RAW MATERIALS: The raw material picture is bright. K?A will continue to help ob -- tain paraphenylphenol resins for food container linings# Revoca tion of 2'-81, April 6, removed restrictions on use of tungsten and molybdenum in' pigments. N?A emphasises cobalt will be scarcer, due to military requirements. FIaxcoed and Linseed Oil -- The Department of Agriculture*s first estimate of the 1953 crop indicates~It,lh2,000 acres will be planted this year. Flaxseed production is estimated at 36,300,000 bushels as compared with 31,002,000 bushels in 1952. This would produce enough linseed oil to meet normal requirements with no severe drain on govcunmc-nt stocks, which remain at approximately $00 million pounds. Soybean Oil An in crease of l.U percent over 1952 acreage of soybe-ans is indicated. No estimate as yet of the acreage to be harvested for beans. However, if previous radios held, production of beans and oil will approximate the highest on record. Castor Oil -- Castor oil is no longer under quota restrictions. The Department of Agriculture's planting program is 125 thousand acres this year, about the same as 1 s st Tung Oil -- The 1952 domestic crop is estimated to yield 1/0 million pounds of oil. Stocks -were less than 9 million pounds, October 31, 1952, and March 1 ware 21 mil lion pounds (about five months1 supply at current rate of consumption). Tung grow ers were successful in limiting available supply by the Department of Agriculture action on April 7 limiting imports through June 30 to two million pounds plus quan tities in transit prior to April 8. I advised the Secretary of Agriculture that o\ir industry strongly opposes any limitations on the importation of tung oil and that there is no statistical basis for any such limitation. However, the order was issued cased upon the Solicitor's opinion that such action is mandatory because tung oil has been placed under CCC purchase and lean agreement. Everything possible will be done to protect our normal supply requirements. STEEL DRUMS AID PAILS: Allotments of steel for drums will meet all needs. Only restriction is 60-cay inventory limitation on new drums. .This ray expire June JO, 1953. NCA Q Q3257 TIN CANS: All' emergency restrictions removed on February 6. FRICS CONTROL: All*"price controls ended March 17* During the period our industry was under OPS control, we were never required to file our prices as the result of a series of extensions of the filing date vhich we secured. Neverthe less, we received all the benefits afforded every industry through operation of the price stabilization law. This was due directly to the untiring efforts of our OPS Industry Advisory Committee and the association staff, together with the careful at tention given our problems by OPS officials. EI.v'n-'. MD SALARY CC .OLS: The President abolished all wage a. d salary controls in F ebruary. GOV NT fPOCUREI'IEIvT: Monthly procurement just under *! billion and has been for last nine months. Deliveries --- 2-2/3 billion p:er month, These fimures will be reduced if peace in Korea, However, the reduction v; ill be gradual as only about $5 billion per year is due to Korea. TECHNICAL sc: IPlC SnCTIC Frincipal activity now is "Water - The Hidden Menace to r es. Home builders in the six Association zones cooperated in experi- mental tests to ellrir.ate excess moisture from hones. Builders in Seattle, South Bend and Knoxville also corrected cause of excess moisture in homes constructed during past few years, One Knoxville builder is now constructing homes v.lth a molded concrete block, the exterior of which locks like wood siding and is painted, instead of southern yellow pins because paint would not adhere. The experimental hom.es in Southport, Indiana, are inspected regularly. No blister ing or pec-ling of the paint noted. Two winters after completion of experimental work, ws can report success. A circular covering these experiments -will be issued shortly. The eight houses having so-called "Breather Faint" on the exterior were also inspected. These paints were applied in the fall of 19ii9. No definite con clusions can yet be drawn. In February, together with, members of the New Orleans Paint, Varnish and La car er As sociation, we conferred with officials of the Southern Pine Association. The effect of green lumber siding upon the durability of exterior paint was discussed. A new SPA publication on this problem was reviewed. .Also considered were several research projects aimed at making southern pine more usable as siding. laboratory work continues on evaluation of moisture permeability of exterior paints. This program includes determination of the contribution of typical raw materials to the moisture permeability of the finished product. Batailed formulations will not he covered but basic information developed will be useful to paint formulators. The work to develop basic information on the contribution of ventilation of the walled interior t-o the removal of excess moisture from that area, to eliminate condensation sn the sheathing or siding, continues. A method for determining adhesion of -exterior paint to various 'woods is in progress. The Condensation Control Committee appointed by the Building Research Advisory Board 1 ~s held ore meeting. Four sub c cm .litres on which our Association is r-: pros muted ;-re appointed. No. 1 Evaluate the prior art; No. 2 Methods of determining moist-'.; a -p".ir.ecbilityj Ho. 3 Meniere present research in this field and determine = dM + v;.::?.l research reqiirodj No, k Publicity Committee, to publicize results of the oth-^r thr'2 committees. NCA 0 03258 We continue to inspect structures 'where unsatisractory paint jobs are evident and offer suggestions fdf the correction of excess moisture conditions. Evidence ob tained is used in the preparation of technical and nor.-technical articles. Fe\Ision of Circular 723, 11 Cons traction Defects" will shortly be ready and will be limited to the effect of water entering the building through defects in the structure. Three circulars were prepared and reviewed by the Scientific Section Cerxittee. One covers painting metal sash glazing materials. Another, the causes of some premature bad interior paint jobs due to excess moisture. The third covers a new method of de termining the percent of titanium dioxide in titanium pigments. Proponed chapters of the Painting Manual of the Structural Steel Painting Council v.ere reviewed. Som.e chapters refer to paint specifications and the Council proposed a separate division of the manual devoted exclusively to the many paint specifications for protection of steel, which was opposed by us. ,, The set of slides on mil dew, including the script explaining each slide, is avail able. The method of determining fire retardant qualities in paints is very important and oncer investigation. Much of this information mas disclosed at a symposium in Los Angeles, arranged and moderated by a member of our staff, STATISTICAL Ai1) GOVERLMSMT REPOETS DIVISION: The schedule of the Bureau of the Cen sus covering 1953 operations of our industry for the 195k Census of Manufactures was .mailed to Class A members on March 17. This will permit manufacturers to adjust their records, if necessary. The data will be mere consistent with the Census Bureau onthly reports of trade and indus trial calcs. More detailed information is reqv' red than the 19hl Census but, when s.u v.arised, will present a truer picture of our operations. The 1952 Supple::ent to the Association's 1950 Statistical Handbook was published in April, including all data available up to March 1, 1953. Monthly summary reports of the Credits and Collections Survey have been simplified. This should add many new contributors. This activity merits your fill cooperation. LEGISLATION , Federal -- Congressional proposals affecting our industry relate to -- bills author s', ring Federal study and research of air pollution and smog; amending the Economic Poisons Act to require more stringent regulations; revising the Food and Drug Act with respect to the chemicals in food and cosmetics and their containers; and creat ing Federal safety standards. All are receiving our attention. We gave special attention to the bills proposing continuation of economic controls, particularly fats and oils import controls, which are omitted from the bill new before the Senate. We continue our efforts so that no mandatory requirements are enacted. Congressional consideration of Section 22 of the Agriculture Adjustment Act, which grants discretionary authority on import controls, should occur in June, since Agriclimre Secretary Benson has requested amendment of this Section 'to protect i .pert C-ntrol programs authorized under the Defense Pioduction Act, -which expires Jure 30* S^.ate -- Ik State Legislatures have convened; 18 have already adjourned. For--.via and -warning labeling bills were killed in Lew York. A labeling bill in Minnesota NCA 0 Q3259 -5- (based on the Model Bill approved by the Executive Committee) has received Senate approval and is pending in the House, A labeling bill in California on our objec tion was removed from the calendar. Restrictions on paint spraying were killed in California and Fevada. Air pollution control bills were killed in Hew York but are pending in California, Connecticut, Hew Jersey, and Wisconsin, Local associations are opposing license bills for painting and decorating contractors in Michigan and Texas, Municipal -- The City of Mew York proposes amending its sanitary code to require warning labels on paints containing lead. The Mew York Association will oppose the a::, errrunt, Virginia Faint and Economic Poisons Laws -- Discussions are continuing vdth Virginia officials regarding mildewcide paints. Mayor Faint Production -- The Secretary of the Favy, after reviewing an industry sur vey committee report recommending discontinuance, is considering stopping all paint manufacture, except fire retardant, shipLotiom anti-fouling and hot plastic paint proiaction. The Association request to the House Committee on Government Operations for investigation of Navy paint production will result in hearings before the. House' Intergovernmental Relations Subcommittee (Mrs, Cecil Harden, Rep, of Indiana, Chair man) about May 15, The Association will appear, Unfair Co:op31ition -- Floor Waxes: Testimony presented at FTC hearing, April'.16, on proposed trade practice rules for the floor wax and polish industry is being studied by the Co..mission. The proposed rules exempt paint, varnishes and lacquers. At the heaiing, we requested revision of the term "Industry Products" to make certain that shellac varnishes are included in the exemption, and restated our position that there is no need for those rules. Labeling -- An up-to-date compendium of all labeling laws and regulations will be . issued about May l5 Tariff -- The U. S, Tariff Commission has scheduled a hearing in Washington, May 7, to determine whether imports of tur.g nuts, tung oil, flaxseed, or linseed oil vdll materially affect any Department of Agriculture program. We will appear at the hear ing in opposition to further limitation on imports of tung oil. The Tariff Coomission refused to impose quotas or raise the duty on imported chalk whiting. We testified against import restrictions at the hearing. Twenty-two bills have been introduced in the House to ban the import of residual fuel oil and other petroleum products. Since ?5 percent of all imported petroleum comes from Venezuela, the enactment of such legislaticn would undoubtedly result in the exclusion of the U. S, products, including paint, varnish and lacquer by that nation. The Association presently takes no position on this matter, as it does not directly affect products of our industry. The views of the Tariff Committee have been requested. The Philippine Government has not yet requested eta* Congress to amend the Tydings Act to ban imports of certain U. S. goods, including paint products. We vdll oppose such action. Due to the dollar shortage in that country, import controls have been imposed. Quotas have teen established for paint, varnish and lacquer. The. State Department advises they have no jurisdiction, but suggest U. S. manufacturers request Philippine customers to urge their government to abolish these quotas. We continue our contacts with the Philippine Embassy end the State and Commerce Departments, NCA 0 03260 DIVISION ACTIVITIES INDUSTRIAL PRODUCT FTi-JISHLS DIVISION; First local seminar 'on March 21; at Cleveland Association. Local seminars held in April in Poston. Lacquer and Steering Committees meet at Atlantic City, Nay 21-29, National seirijiars, Kay 23 -- sane place. . Association staff members will supervise and assist in all seminars, TRADE SALuS pIVISION: Cleveland Association held a local management seminar on Kerch 25. O'er staff members supervised and assisted. Local trade sales seminars are not feasible and will be discontinued. We are developing a program of activities for caulking compound manufacturers. Sales of Faint Power bocks continue at good rate in the sixth year of Faint Fever :s Training - - 26,315 books printed, 25,/;60 distributed. I!TD'CS 1AY RST.-ATI01 'S: We are working closely vdth the building industry, paint ranu' facturers, dealers, painting contractors, savings and loan com panies, lumber companies and others on the moisture condensation educational program. Film In three r.onihs, have filled lUO requests. Films shewn 527 tires to 2$,000 people. Faint ns r.ufacturers have been largest users, but have also received re quests from painting and decorating contractors, hone builders, paint sales;-an and fane agencies. The film is also part of Paint Power Courses. Publicity * -- Special articles prepared for specific industries. Twenty stories v.rittc-n for State home tuil<ers publications, arid for painting contractors end lum ber o'osiers' magazines. Articles rn.ll appear in two publications covering a number s' Ip of 6,000 savings and toon companies. Booklets on moisture sent to each build ing end lorn company. exhibits -- Have been displayed at National Association of Home Builders' convention, and Home Shows and State Fairs in Texas, and Philadelphia, Baltimore, Des Koines, Toledo, Cincinnati, Washington, and Harrisburg. Also Massachusetts PDCA Council meeting and annual convention of painting and Decorating Contractors. Attendance at these affairs more than 3 l/2 million. Booklets -- 1.00,000 copies of "How to Win Yc-or War Against Water" and 110,000 copies of "How to Rescue Your Home From the Menace of Moisture" have been distributed. CKF.AK UP - PAINT UP - FIX UP: In March, winners in eight population groups and the ' National Cleanest Tovai Contest Winner were selected by the judges. The Trigg Memorial Award, the Grand rational prize, was awarded to Houston, Texas. Population winners were: Philadelphia; Houston; San Antonio; Ham mond, Indiana; Highland Park, Illinois; minefield. West Virginia; Hartsville, South Carolina; and Richlands, Virginia. The growing interest in Clean Up Campaigns is proven by the record number of 51i entiles received. Intensified cooperation v.ith the Junior Chambers of Commerce have a.died to the Clean Up - Paint Up - Fix Up roster more than 100 towns and cities 'which had not previ .vu-ly conducted coupaigas. Local Jaycees in one hundred more ecu.menit-ie s have evi- dun cod interest in promoting campaigns. KCA 0 03261 ' ` 7- - Cooperation with American Association of Nurserymen in the "Plant Up" aspects of the program has produced excellent results in increased orders for display materials and newspaper mats, recent additions to the Clean Up - Paint Up - Fix Up roster are: Seattle, Spokane, Pallas, Ilil-.vaukee, Kansas City, Birmingham, and Hew Fork City, TRAFFICs Traffic Committee renters appeared before the ICC Hearing Examiner in Chicago, March 6, opposing continuation of the 1,50 surcharge in Central States Territory. Decision of ICC is expected in June, On March 19, we requested the Railroad Uniform Classification Board to reduce the LCL classification on paint products in small metal cans from Class 60 to Class 55. A similar proposal on several pigments was withdrawn, since all pigments were not on the docket. Decision expected within 60 days. If Rails approve our request* we will ask Trucks for similar action. Have fil ed petition with ICC requesting suspension and investigation of the 15 percent ove r-dl increase in rates adopted by the Southern Motor Carrier Rate Conference S t "1factive April 15, MCft 0 03262