Document 7X13MbmgDaYpq9xNvRa6Q0xe

g'^**nta3=^<^wcyw<*~wv.,3w*nsj i*'* NjTjPw >! yji.*w:wi>hj ' .,* ijja-^ LEAD INDUSTRIES ASSOCIATION 420 LEXINGTON AVENUE NEW YORK 17, H. Y, Oototer 11, 1946 To Master* of the toad Icdu*trie* Aasoolatioai SDBJEC*i STATOrarr Of THE AMERICAS AOTO------------------ KkJWB ASSKSnaT--------------------- Mo hava rooeliod a oopy of tho now* rele**e of th Aaerlean AutaaoMle A**ooiatien ad* a few days ago on tho lead *ltuatlaa, a* attaohod* Very truly, your*, A. \ V '}'^l :'J W_ Secretary ( -. 5 ' fcfr.~.ifc. A*. * COPT AMERICAS AUTCMOBUE ASSOCIATICS BESTS SERVICE t (inornate in lead prioe eelling urged by A.A.A* to avert battery shortage) LI A21606 fEKKA. AVS. AT l?th ST., JT.W. Vfaahlngton, D.C. (6) DGEDUTE RELEASE S. S. 1494 Washington, D.C., Sept. --Immediate iaorease is the oeillsg prioe of lead to speed up seoondary recovery and to avert a battery shortage that threatens to cause widespread immobilisation of automobiles during the winter months was urged by the American Automobile Association today. In a telegram to mil A. Porter, Administrator, Offioe of Prioe Administration, H.J. Brunnier, President of the A.A.A., charged that movement of cerap lead through the varioue channels has now virtually ceased because of the reinposition of the oellir.g prioe of 8 l/4 cents a pound, and that battery supplies are be coming critioally soaroe. The A.A.A. executive pointed out that the lead ceiling prioe is substantially below the world prioe of more than 10 eonts a pound and doclared that thla differential is in a large part responsible for current disruption of the oorap 14ad market. "One-half of the lead that goes into a new battery is reclaimed lead," Mr. Brunnier declared. "The replacement stream has no* apparently frosen to a mere trickle moving to refining and end uses, as against the 300,000 ton minimum required for tre year." The A.A.A. message to tho Prioe Administrator declared that the Civilian Production Administration is now in the process of making lead allooations for the fourth quarter of this year. The allocation made for replacement batteries by C.P.A. is nothing more than a "hunting liooase* unless the battery manufacturers can get the load, Mr. Brunnier said. Declaring that failure to produce a substantial number of replacement batteries during the last quarter of 1946 will result in the demobilization of a very large number of vehicles, he stressed the met that we are coming into tbs period of year whon battery oqutpmont is subjected to the greatest strain, and at a time when the majority of motor vehloles in operation are over age and worn out. (Text of telegram attached) itHi p/2S/48 ? ; \ . w* ^ A ' rii^ *"i>-'-^-'-'-,^V:''~'^^^rri'r'*`1Tii,--rY itr -,-':f:'-!-v'^i>-;-MiiViit> n ;^; v.r>?y qgjg.ii.y y;?** ** .C LI A?1607 -2- It is definitely indicated that the preeent prioe oeiling of 8 l/4/ a pound, a against a world price of more then 10/ a pound, it in largo part responsible for this alarming freere.' During the period of O.P.A.'* inter* mission th* prise of domestlo load rose to 9 l/zf * pound. At this prloe a large tonnage of scrap lead cored through the regular ohannels to the shelters. When prloe oeiling* wore restored and fixed at 8 l/d/ a pound the floe stopped* A substantial amount of the tonnage purchased at 9 1/1/ is being held beolc be cause of the prioe differential, while the movement of serep through the various ohannels has now virtually ceased* It is our earnest belief that the domestlo price oeiling is the major factor in this freese and we most strenuously urgo that 0. P. A. take the matter under advisement and make the prioe adjustment neoessary to loosen the jam and obeiate disastrous results of its further contiauanoe. It it unrealistic sad futile to suggest that the mere calling attention to thla situation may en courage the holding of sorap lead from the market* We bog to remind you that as far back as last Jamuaipr we stressed the importance of the load prioe fsotor in oascunioations to O.P.A. and other Government agencies. Wo wore told that prioe was not a factor in the progressive deterioration of our position and yot veiy shortly thereafter O.P.A. reversed itself end made oeiling adjustments, this is precisely what we think should be done now and not later* The Civilian Production Administration is now In the prooost of making its allocations for lead for the fourth quarter for various end uses. Zn the final analysis the allooatlon mode for replacement batteries is nothing more than a "hunting lleenae* unless the tottery manufacturers ean get the lead* ' And there is every reason to anticipate that they will not be able to,-get It unless there is an iometiate change in the reclaln picture* /J tie fully appreciate that the national objective oust be to seeurs/Borc lead for a variety ofr;ent needs of our reconverting industries, including new automobiles, batteries for these, and better gasoline for obsolete vehicles* He are etresslng tho rcplaocaont battory outlook simply beoause this appears to bo the area where the crisis is most imminent* # VwHluIiMM Copies sent to John R. Steelmen, Director, Offioe of Wor 'lobiUsatlon end Reconversion; and J* D. Small, Administrator, Civilian Production Administration* September 28, 1948* 0 Lff m1 JUl.'I'i'.y/l'yJIWPUWJM;Jt*WM.sIJWJ"i' p*1V^!l|1^wwe.1j1