Document KGb00Q9E8ZGwJjobvRwLNwLaK

"*5rg/7/&*r DEPOsmqN EXHian-^ MBAME M.*MUCHnST0N EVANS REPOOTNC. SERVICE Statler Miirvrzs o 'j t i vs c o mmit t e e me e t in g ,, - ticr.nl Pair.t, Varnish and lacquer Association, Inc* * 'no ' otel Washington, D.C. April l6, I9U5 A regular meeting of the Executive Committee of the Natl cr.al Paint, 7arnish and Ic-cqcor Association convened at 10:00 A.M., Tuesday, April l6, 13-6, in the Statlar Hotel, Washington, D. C., ith the following in atter.dsr. ce: rFA_*K S t :-.v j . c a i-c p p e l l K. CLAPS 0. CLAPS 2. A. TOY, JR. 3. D. GRIFFIN M. L. KAVEY A. S. HORN WM. H. JARDEN, JR. N. V. EI113Y J. WARREN KINSMAN HARRY M. KUHN ........ E. A. KELUM FAPC1D P.GWE S. J. SHANNON PRANK L. S-JLIPERGER ERNEST T. TP.IC-G VAL XRCELS Guests P.0Y 3. ANDERSON S. W. 3LAIR, JR. E. A. GARDNER J. F. KUPIEES, JR. BERNHARD MAUTZ CHARLES L. RAFFI Association Staff PPTJSL V. ELION G-CP.OE H. PRIEST, JR. M. q. MACDONALD G. G. SWARD Absent ELLIOT S. PHILLIPS ARTHUR V. STEUDEL W. C. STOLE Call to Order The nesting was called to order at 10:00 A.M. by the Chairman, Kr. Thurlow J. Camp bell. Minutes of Last Meeting The Secretary stated that the minutes of the previous meeting had been nailed to all members of the Committee and that the agendum for this nesting would take care of unfinished business carried over fron the last meeting. The Chairman stated that if there were no objections* the minutes of the last meeting would be approved without reading. There being no objections, the Chairman stated that the minutes of the Exc-cutive Commit**# meeting held January 31 * 19^6 aro approved. 'S' Report of President President Trigg etated that following usual procedure, he would report on several items appearing on the agendum. Sales Figures - President Trigg stated that sales figures for the industry -.* released yesterday - indicate February sales rose 6.1$ over February 19^5 and sales for the v. first two months of the year rcso 57?S over the first two months of I9I+5. Trade Sales increased 252Jr for the first two nedths and Industrial Sales decreased 18.6 for the first two months. President Trigg pointed out that it is entirely possible the industry nay have manufactured fewer gallons of paint during the first two months of 19^6 as compared with the first two months of 19^5i but due to an ending of war business, say have sold those fewer gallons for a larger dollar return. rz -a- - / /* .`~erlcar. Standards Associatisr. - President Trigg stated that ia co-pliar.ee with iastractions given by the Executive Committee'', the Association has now become a reenter of the American Standards Association and has appointed A. B. 3lr.ghan of the Pittsturgh Plate Glass Company as our representative and it is hoped that Mr. S. V. Pasig, Love Brothers Company, nay accept appointnont as alternate representative. Presi dent "rise pointed out that Secretary of Commcrca Wallace had appointed a committee to study the standards situation and that this committee had reported hack to the Department with the recommendation that standards whore needed should he ievelotsod by industry and not by government and that following this recommendation, Secretary "allace had dcsicnatcl the American Standards Association as the agency with which his Department would cooperate in the development of standards. President Trigg read the following memorandum, on the subject of "Grade Labeling Minimum Standards - Certifioaticn of Qaality":- "Dmring the war members of this industry have been so absorbed ir. immediate problems involving materials, containers, selective service, pricing, sur plus property, taxation and the like, that of necessity some important trends may not have received the consideration which they deserved, and which in other times they would have received. "I wish to discuss only one of these, - the steady movement toward classi fication, standardisation, certification or grade labeling of merchandise intended for over-the-counter buyers who depend on the manufacturers and dealers for reasonably accurate guidance in the selection of consumer goods, or, lacking that guidance, turn to government for assistance. ........ "The growth of this movement has been noted in activities of the Department of Comnerco consumer groups, private organisations, and semi-private or ganizations assisting in the development of commercial and industrial stan dards as aids to expansion of commerce, and single industries that are dadeavoring to assist and protect purchasers and stimulate confidence in their particular products. "All will agree, I believe, that the public should look primarily to indus try for guidance. "Whether the tendency to look to the government can be arrested would seen to dopend very largely on the attitudo of industry itself, and its ability to view the probloa so far as this reasonably can be done, through the eyes of the buyers. In line with that attitude, the grocery manufacturing indus try has recently issued to housewives a 'Market Basket Quit1 intended to develop infstation of value in determining ite labeling problems. The Society of tfe* Plastics Industry recognized the fact that the great vari ety of plaetfe materials presented a confusing picture to tho buying public; that the housewife who buys the great bulk of consumer goods is not inter ested in bcconing a plastics expert, but vents to know how to select and use and care for the things she buys. Aftor extended consideration the Society, with the cooperation of the Plastic Material Manufacturers Asso ciation, made a number of broad recommendations along tho lino of informa tive labeling. "The Tanners' Council of America has given careful consideration to the prob lem end has taken certain stops intcr.dod to protoct purchasers of leather luggage, give then confidence in theso products, and promote the sale of better merchandise. NC A 0 Q3092 '* 1 Itr.tuch t.ie pressure for grade labeling and the like '.;as - rc'catiy csen rsater on food industries than others, it is without doubt extending into ther fields. Our industry, I believe, cannot veil afford tc ignore this rend, and be unprepared to face the problem if it is presented. Its presnt judgment, which I believe is wholly sound, is that grade labeling of =.lr.t products would be harmful to the crr.sur.er and manufacturer alike, ur industry has gone far in the direction of informative labeling, not nly dealing with the uses and characteristics cf its products, but giving areful directions for use and for avoiding 'unsatisfactory results. I have o suggestions for any improvement in present practice, encopt to urge the embers of the industry to do their part in making the resolution of' the invention of 13}5 calli.ig for voluntary and 'universal adept ion cf f:irula abeli.no of trade sales paints fully effective. The problems of the .ar ears may have halted progress in this direction. 111 have, however, one recommendation bearing directly on the problem va have been discussing. I believe that in view of the steady growth of the demand for .grade labeling, minimum standards, certification of quality and the like prudence new requires this traditionally forward looking industry to appoint a committee which will keep abreast of all developments in this field, con sider the problem from the standpoint of the industry and its consumer cus tomers, and from time to tine make such reports and recommendations to the executive Committee as it deems advisable. "There is, and doubtless will continue to be, a considerable amount of mate rial concerning the activities of the government and industrial or consumer groups received at Association Headquarters that cannot receive all the con sideration it may deserve, The appointment of a conmittee for this purpose would, I believe, serve the interests of the industry, and give the member ship and this committee confidence that the movement, which in some respects carries a threat of injury, is under constant observation." It was moved by Mr. Horn, seconded by Mr. Shannon, that the President be authorized to appoint a special committee on "Grade Labeling - Minimum Standards and Certifi cation of Quality". Motion carried, Navy Use of Titanium - President Trigg stated that the use of titanium by the tfavy had been the matter of a great deal of discussion and that some progress has been made in the Association's effort to have the Havy reduce the amount of this critical material being used and he referred to the following letter received from Admiral E. L. Cochrane of the Bureau of Ships cf the Havy Department: "The critical:nature of the civilian supply problem in regard tc meeting the requirement of the Industrial Reconversion Program for Titanium Dioxide is appreciated, and the su-yresticn that Aluminum paint be substituted for Titanium Dioxide bearing paint will be folly considered insofar as ie com patible with preservation requirements of Naval vessels. It is anticipated that the six months estimate, as noted in your letter, o:f 12,000,000 pounds of Titanium Dioxide to be used by the Navy will be reduced," President Trig,? stated that subsequent to the receipt of Admiral Cochrane's letter, copies have been received of orders issued by the Bureau of Ships, namely, order number 46-590 "Conservation of Paint Materials" and number 46-?91 "Inside Painting, Bilges - Omission of.White Paint, etc," and he stated that he had been informally but reliably advised that instructions have teen issued to use one coat of aluminum and one coat of haze gray instead of two coats of haze gray on lay-up ships. MCA 0 03095- Election of Secretary - President Trigg stated that at the October IS'-1-? njatir.g of the Executive Committee, when the present Secretary of the Association was elected Executive Vice President, it was with the understanding that he would serve as Sec retary until the election of his successor. Mr. Trigg stated that Mr. T. S. Moulton, who had haen the Association's Accountant for ten or twelve years, has now returned to the Association with the rank of Captain after having served three years in the United States Army, and he reconnended the election of Mr. Moulton as Secretary. It was r.oved by Mr. Foy, seconded hy Mr. Melun, that T. S. Moulton he elected Sec retary of the Association, Motion carried. -rr. i r. e o: Checks - President Trigg pointed out that the by-laws provide ir. S:-ctioon 5. Article IV, that "Disbursement shall he made hy voucher signed hy the Secretary", or, in his ahser.ee, by a representative, authorized hy the Executive Ccm.-.ittee, as coring within the budget, and countersigned hy the Treasurer", ar.d Section 7, Article IV, provides that - "In the case of the dc-ath, illness, disability or ab sence from his office of the Treasurer, ar.y one of the following officers of the Association is hereby authorized to countersign checks and otherwise to perforn ad interim the necessary duties of the Treasurer; the President, Vice President or Chairman of the Executive Committee". Mr. Trigg stated that the Executive Conr.ittee at its meeting on April l4, 1942, in view of the fact that Mr. Moulton, the Associa tion's Accountant and who was an alternate for the Secretary in the handling of dis bursements, was entering the Armed Forces of the united States, designated M. Macdonald, Attorney, as alternate to the Secretary. It was recommended by Presi dent Tri*:g that now that Mr. Moulton has returned fron the service and has been elected Secretary, the Executive Committee authorize the signature of the Executive Vice President as an additional alternate to the Secretary. It was uovoft by Kr. Horn, seconded by Kr. b'urtele, that the Executive Vice President bo authorized to sign checks ns an additional alternate to the Secretary. Motion carried. Budget and Finance Committee - Kr. Trigg announced the appointment of Mr. J. Vr.rron Kinsman as a member of the 3udget and Finance Committee to take the placo of Mr. Franklin J. Lane, whose terra as a member of tho Executive Committee has expired. All other nc-nbc-rs of this Committee were reappointed. Employees Report - The President stated that a copy of the serai-annual Enployces Report is attached for infornation of the nenbers of the Connittee. (Copy attached) 19^6 Convention - President Trigg stated that reservations are piling in for the 146 Convention to be held in the Trayaore Hotel* Atlantic City, November 6th, 7*h and 8th. He stated that the "1946 Paint Show", conducted by the Federation of Point and Varnish Production Clubs, will be held in the Claridge Hotel, November 4th 9th and 6th, and he stated that indications point to tho largest convention we have ever held. Progzaa plans are in the making but are not sufficiently developed to announce. . OPA Price Appeal - President Trigg read the following letter addressed to the Office of Price Administration in connection with an appeal for industry price reliefi- "OFFICE OF PRICE ADMINISTRATION Vashir-gton 25* -0. C. ' "Gentlemen! _ "In the attacht statement, we.are requesting price relief for this indus try and we are summarizing the details covered on the attacht sheets and our request is as follows! NCA 0 Q3Q94 !;'-v2 ?2i?zorr.'iiY r zj t zs t in v :o? "(1) The vital importance of the products of this i: ustry in the reccastruction prcgraa of the Nation; (2) The fact that a sub star, making less money, i in the base period; ers are currently ore taxes, than (3) The critical shortages i (4) The indicated decrease s and containers; (5) The increase ir. cost of (6) The increase in cost of (7) The increased costs due sivo peacetime bash esses on an rggres- (S) And finally to create p: ani production; rge maxinun effort "that our industry be permitted to increase its selling prices by an amount equal to the actual increase in costs today as cerrpared to the coste on which the March 1942 prices were based. By costs we nean raw materials plus containers, plus labor, and plus other factory expense, including z' superintendence, overhead, etc. In other words, the cost of the product, packaged, labeled and in a case, ready for shipoent, but not to include any costs after factory. "In order to cake perfectly clear what wo conn, let us use the example of a product priced in March 19^2at $2.00 per gallon, the cost of which when that price was established was $1.50 per gallon. If the cost on that pro duct under today's conditions has increased to $1.65 per gallon, then under our request we would be permitted to increase our selling price by the difference of 15(f in the cost, caking the selling price $2.15. Note we do not request an advance to include any profit on the increase in cost, or anything to cover increased expense beyond factory cost. "While the granting of this request would be a substantial relief to and an incentive for the individual manufacturers in this industry, its effect upon the public purchasing power and the cost of living would bo neglible. The total volume of business for the industry for the year 19^5 re ported by the Departnent of Concerco, was $643,425,141. Figuring a popu lation of 140000,000 this represents a total per capital of $U.6o annu ally based on the prices which were in effect in 1945* . Respectfully submitted, / President * President Trigg expressed the hope that ncubera of the Connittee had had an oppor tunity to read the appeal document and he stated that the Association has received sone information which would indicate that the appeal night get a sympathetic hear ing. Ho pointed out that a bill'in Congress, requesting this samo type of relief MCA 0 03096 for all industry was lest in cormoittee by a tie vote and is now again under consid eration- He stated that the special connittee authorized'by the Executive Committee to consider this question had held two meetings - had given the natter very serious consideration in all of its ramifications and had unanimously approved the apneal ,-.s now presented. President Trigg pointed out that the Bureau of the Census figures for 1939* *4e available, show that 92 1/2;* of the firms in the paint industry did a business of less^than $1,000,000 a year and that 51 1/2^ numerically did a business of less than $100,000 per year. He outlined briefly'what the appeal cov ered and pointed cut that the appeal had been very carefully prepared, based on all available inform-ion and he expressed the hope that it night be approved in its present fora due to the need for getting earliest possible action. President Trigg stated that some interesting ctr.ferc-r.ces had been held with CPA - on their initia tive - and that he had advised then that an appeal would be nado on an industry wide basis, and he stated that sous r.ar.ufacturers have advised bin within the -cast few days that CPA had suggested that they wait for action on an industry wide aposal which they understood would be na.de rather than to press individual ccrpany anneals. After a thorough discussion of the entire subject, Mr. Campbell pointed out that no two nen would write a letter in exactly the sane words, and he expressed the opin ion that this letter has been carefully ar.d well prepared. Ke pointed out that the appeal as written had been unanimously approved by the subcommittee - that tine is essential - that the request crust go in to CPA promptly in order to indicate to many manufacture re who need relief that sone action is being taken and he expressed the hope that the Connittee would approve the letter as r o w prepared. In answer to a question by Mr. Kurfees, President Trigg explained that the letter to OPA states clearly that no effort is being nade to nake a case on the ground# of CPA philosophy that an industry must hava made less money in 19^+5 than in a base period to be entitled to consideration. Mr. Korn stated that ho had read the appeal carefully and expressed the belief that it was an excellent job and that it successfully straddled debatable points and he moved that the appeal as written be sent promptly to OPA. The notion was seconded by Mr. Sulzberger and was unaninously approved. (Copy attached) After the unaninous approval to the request to OPA for price relief, a notion was nade and unaninously adopted, authorizing (l) that a conplete copy of the appeal be sent to the Chairaan of the Senate Connittee on. Banking and Currency and the Chairnan of the House Cosuaittee on Banking and Currency, and to Senator Murray as Chairaan of the Special Connittee to Study and Survey Problens of Snail Business Enterprises; (2) that a copy be sent to all aenbers of Congress, both Senate and House; (3) that a copy be vat to all paint nanufacturers; (4) that paint nanufacturers be requMfad to innodiatoly write, wire or otherwise connunicate with their Senators and Coag^ressaon requesting their support of our appeal* ' Hotwithstanding the favorable action on this notion, the President requested and urged reconsideration of the instructions to send copies to the Connittee Chairaon referred to, to the neabers of Congress, and tho instructions to request canufacturers to connunicate directly with their Senators and Congressmen regarding it on the ground that he did not believe it vas advisable to bring this pressure $0 bear . on OPA, already probably overburdened with sinllar situations in other industries, and on the ground that he, the President, felt very confident that our application would be - given every possible consideration at as early a date as possible and that Congressional pressure night irritate noro than help and would certainly put a lot of additional work on already overburdened OPA officials. He stated that should it develop later on that such pressure night seen necessary or advisable it could be better done then than concurrently with the submission of our appeal. After lengthy NGA 0 03096 -7_ d; scission, participated in by nrc.y members of the Cor.mittee, it was r.cved, sec-r-*ed ar.d unar. incus ly resolved that the ir.stncticns in the resolution just aicoted be * rescinded with respect to sending copies to Chairmen of Congressional ccr-nittecs, to r.aubcrs of Congress, and the instructions vith respect to" request" g nar.ufact-ire-s to c:.-mini cate directly with t:oir representatives in' Congress, and funt the natter' of . ib.-.ittir.g our request for relief to any ether 0:varcnent agencies or officials uni the natter of^asking industry neuters to tales it up with their representatives ir. Congress be left to the discretion of the President. Femort of Treasurer ;-f:rrei to the comparative balance sheet as of March , 15hg e-g_ 13--5 and the re port of ir.ror.a and expense for the period October 1 to March *!, :6 ared 1345 (espy attached) and pointed cut that excess income ever exner.se for*"the ' period amounted to $}2,537*00 and that the surplus notwithstanding the fact that S100,000 reserv to $'-57,202 at up, amounting t the budget for the period amounted to $l4l,845 and expenses $129,033, indicating that the Associ ation has been operated well within tho budget. The various schedules were carai'ully reviewed and Mr. Toy stated that the report had been approved by the Budget and Fir.anee Coraittee with a recotnendation for reference to the Executive Connittee. It was moved by Mr. Wurtele, seccniei by Hr. W. K. Clark, that the roport of tha Ore- nsurer be coproved. Motion carried. Feoort of Budget and Finance Conr.ittea / ' >. Mr. Foy stated that the Budget and Finance Connittoo not yesterday and authorized him to report to the Executive Cons:ittce that the Betirenent Plan, previously au thorized by the Conr.ittee, had been worked out in detail and had been adopted. He stated that tho plan covers oil employees of the Association between the ages of twenty-five and sixty-fivo - that it was developed by Mr. tf. K. 'ferbor of Washing ton - that it was reviewed and approved by Towers, Perrin, Forster and Crosby of Philadelphia - that it provides retirement benefits (including Social Security) in an anount equal to 27^ to 775* of base pay for enploycce, the highest percentage applying only to a basic salary amounting to $1,200 annually. Mr. Foy stated that because of some salary increases and some changes in insurance ages since the plan was originally authorized, it is now necessary to request an additional appropria tion of $15,411.87 to cover the cost of paet service benefits.- Mr. Foy pointed out that some subsequent appropriation will be nocessary to provide for T. S. Moulton and John White, two eaployoee roturned fron the servico, in the retirement plan. It was moved by Mr. Horn, seconded by Mr. Kelley, that the additional appropriation to cover past service benofite in the amount of $15,411.87 be approved. Motion carried. . * Mr. ?oy stated that future aervico benefits under tho retirement plan will be paid for as a current operating expense and he stated that the Budget and Finance Connittoe recommended an addition to tho current budget in the amount of $12,402.14 to cover the first annual preniun of the retirement plan. It was moved by Mr. V.M. Clark, seconded by Mr. Meluc, that tho rc consendation of the Budget and Finance Con- f ' Dittos be approved. Motion carried. ' Mr. Foy stated that the Budget and Finance Coral tteo rocoanended an addition to the current budget cn the basis of $4,500 annually to cover the salary of T. S. Mo'll ton, recently elected Secretary of the Association, the salary to apply fron April 1, 1546. It was noYod by Mr. 3ovr.es, seconded by Mr. Horn, that tho recommendation of tha Budget and Finance Conmitteo be approved. Motion carried* NCA 0 Q3Q97 r.-ysort of Scientific Section Mr. Svard stated that in the ten weeks since presenting his last report, the activi ties of the Scientific Section hare teen at a rather low level. The resignation of Mr. Bolton and the decision of Major Van Keuckcroth to stay with the Engineer Board left the Scientific Section, with only two nan in the laboratory. Mrs. Edvards, Secretary to the Scientific Section, was confined to the hospital for one month and Dr. Ycstgate, cr. account of illness in his family, and at his cwn request, has been granted an indefinite leave of absence. Mr. Sward stated that he had interviewed r.r-s.y candidates o'or ava: '.able positions on the staff of the Sciontific Section and he -repressed the hope that in the r.ot too distant future the activities of the Sec tion ri.;ht 're nccelo-rat oi. Mr. Sward reported that in accordance with the Conceit toe'6 plan to encourage actively the growing of drying oil crops, Mr. Scofield :.:ado a four weeks' trip through the South and Southwest as far as Texas visiting State Experiment Stations - United States Department of Agriculture Stations - College Experiment Stations - Chambers of Commerce - Bail road Agricultural Agents - Cil Producers - and members of our c v ,t . industry. His discussions included soybean, castor, tung, Garcia nutar.s, perilla, linseed, stillingia retd safflower, and he reported that though there is considerable interest ir. the growing of drying oil crops this interest is somewhat lessened by a shortage of warpever- In spite of the shortage of manpower, Mr. Scofield consid ers his trip a success and Mr. Svard reported that the Scientific Section will do ovi rything that it can do to increase the interest of drying oil crops with the hope that an adequate supply of oils for our industry will eventually be a reality. Mr. Swr.rd reported that the Scientific Section Committee, at a meeting on March 13th, devoted considerable time to a discussion of the scope of the Scientific Section and had appointed a smaller working committee to develop the details. Ke stated ' that as soon as a bread policy has been agreed upon, it'will be reported to the Executive Committee for consideration. Ho stated that the members of the Scientific Section Committee are new .Messrs . E. Vf. Pasig - A. 3. Bir.ghan - John J. Bradley, Jr.R. H. Everett - A. E. Horn - J. J. Mattiello - Charles H. Heed - Frank L. Sulzberger Harry S. Stone - and Val Vurtele. Mr. Sward stated that preliminary plans for remodeling the space occupied by the Scientific Section at Association headquarters are tinder discussion, but have not as yet been crystallised sufficiently to prasont the completed plan. Mr. Sward stated that the proposal by the Asbcstos-Cenent Products Association for a cooperative study with our Association of painting Asbestos-Cement products and which he reported to this Committee at an earlier meeting has been withdrawn by the Asbestos-Cement. Products Association. Under tho original proposal tho Asbestos Association was toe furnish test buildings and painters and our Association'was to furnish tho necsMlury paint materials. In addition to the proposed study of paint ing theso Asbestos products there was an agreement between the Association repre sentatives to refrain fron using derogatory statements in advertising regarding our respective products and Mr. Donald B. Tulloch, Jr. Manager of the AsbestosCement Products Association, expressed the desire that no change be made with respect to that understanding. ( Mr. Sward stated that the following circulars have been issued since the last report: 712 - Oil-Rich vs. Oil-R.cstricted Paints - II 713 - Deferred Painting 714 - Yartimo Aircraft Finishes Used by tho Army Air Forces NC A 0 03Q98 He stated that this latter circular was written by Louis Peror.y, Lt. Cclrr.el, AAF, in response to our request to Lcvcrrr.er.t agencies for circulars about war tires uair.ts. Circular 713 "3sferred, Painting" was printed for general distribution - 20,000 ccuic-s vsre ordered and orders are being received which indicate that the bulk of this lot will be v.sei. A circular titled 'Testing Insecticidal Films" written by Or snisr Bolt1 is new on ;hc press for early distribution. st.-ate Ale ti the Perm Ch;: Crstor Cil". that in connection with his south: trip, hr. Scofield 4 4 ssci c C:r.v:r.tion in St. Louis on the $ ject 'The Future of rr.toi In ar.swc-r to a question, by Mr. ~oy, Mr. Sward described in some ieta.il, used for imp: ovinp the drying ; iropertics of soybean, oil end expressed t that the pat r.t ::vcrr.ir.i- this process will be a public patent. thod ior. Mr. Campbell expro ssed the opinion that even though the Asbestos-"er;cnt ?r:ducts Association is not interested in continuing the painting tests on their products, our Association sh ould not drop the project. Ho expressed the belief that the paintir.g of asbcstos-co.v.cr.t shingles and siding will havo a definite bearing on our business generally and that a careful study should be undo of the subject. Mr. Svo.rd expressed the cpin ion that while glazed surfaces are being developed by the AsbestcsCc-Uent manufacture rs, their costs are high:r and asbcstos-ccncnt shingles will un doubtcdly be used in lew cost housinc and should present a real field for tha uso of paint products. In answer to a question by Mr. Griffin, Mr. Sward stated that there was some inter est in the Southwest in tKo development of flax, but that the amount grown was negligible. Mr. Blair reported in some detail on the experimental farm devolopncnt being handled near Dallas by Southern Methodist University and stated that tho University is oper ating the experimental station for thn devolopncnt of crops which night be adopted for the replacement of the cotton crop in the state of Texas. Ho stated that the Experiment Station is particularly intorestod in tho development of drying oil crops and believed that in safflower they have found a plant which will be of real value to the state and to industry as a whole. In answer to a question by Hr. Trigg, Mr. Blair stated that safflowor belongs to the thistle family, grows three to four feet high and can be harvested by machinery. Mr. Blair stated that the seed is high in oil content and that the cake resulting fron tho pressing is valuable as cattle feed. In answer to a question, Kr. Blair stated that he did not knew whether or not any use had hoon found for tho stalk of the safflower plant. President Trigg reported that small quantities of Garcia nutans oil are now boing received from Mexico. In answer to a question by Kr. Kinsman, President Trigg stated that a rep resentative of the French Government together with Dr. Horace Hopkins of the DuPont Company came to Washington to discuss the possibility of trading Ions of lir.socd oil for some edible oil. Arrangements waro made for a conference with rep resentatives of the Department of Agriculture with the result that there is a pos sibility of our receiving 10,000 tons of linseed oil for a future delivery of edible oil. In answer to a question by Mr. Sulzberger, Mr. Trigg stated that the Association had had some part in promoting interest in increased production of soybeans through NC;A 0 03099 -10- publication cf reading articl the opinion that if through p te developed, then, the soybe; and the paint industry would rop-r.red to build additional the opinion that- the soybear Sulzberger suggested that tV creased oil crops because g; cr.oigh to supply all der.ands. 3 la the soya growing district. Mr. Oriffin expressed oper promotion a large enough crop of soybeans could industry would be lashing for additional r.arkets 'me in for its share. He stated that his company is ants, if necessary, to crush the oil and he expressed a good crop for faruers and is easily handled. Mr. is need for state-.r.or.ship in. the pronotion of ir.;-rs fear a reduction in price, if the crop is large President Trifg expressed the opinion that there should be a long tdue prrgrau for raising acre flax in this country and ho referred to so.r.e conversations* he"hai had with representatives of the linoleum manufacturing industry who are inro-osTrd ir. developing a cooperative plan for the promotion of hore flax growth ir. the United States. Ir. answer to a question by Mr. Shannon, Mr. Sulzberger stated that f.nx in the Argentine produces approximately eleven bushels to the acre. Mr. Toy stated that considerable sunflower seed is being grown in South America and that a high excise tax prevents its greater importation into this country. ~ Trying Oils Situation Mr. Priest stated that while there had beer, considerable discussion regarding the drying oils situation there seemed to be a few gaps to be filled in. Kc said that linseed continues to be the controlling factor in the drying oils situation and that statistically there should be enough to support tho present 7? quota for-all fats and oils in the aggregate. This quota was established last fall upon the as sumption that we would receive ^,000,000 bushels of Argentine flaxseed, or its equivalent in oil, during the first six months of 1946. Up to the present time, we have only about 1,250,000 bushels (seed and oil equivalent) from Argentina'but on. the other hand our 19% domestic crop was actually about **,000,000 bushels larger than the estimate upon which the quota figures were based. He stated that there has been, some delay in getting deliveries of our domestic crop because of -uncertainty surrounding the price with the general agitation for the in crease of ceilings in agricultural products and the promise of a crop incentive payment for the 1946 crop, which some have felt night possibly be applied to 19% crop seed withheld from the market at this tine. The Department of Agriculture has announced its program now, however, to apply only to 1946 crop seed and has urged prompt movement of the 19% crop seed. Of even greater concern has been the delay in shipments of Argentine seed. Mr. Jasspon of the Department of Agriculture is now down there for the socand time but apparently is nesting with a great deal of difficulty in his negotiations. The Ar gentine govemnaafc while not repudiating the agreement concluded with our State Department a yeasrogo, has nevertheless expressed dissatisfaction and has declined to sell seed at the low price of*$1.67 provided in this agreement. This was of course the' condition with which wo were faced at the tine of our last meeting three months ago. Since then there has been a national election and the Peron government, against which our State Department sought to turn the electorate, has been con- . tinued in office, and they are quite evidently going to make Mr.. Jasspon squirm before they conclude a renegotiated agreement. In the meantime, tho presence of a Hussion Purchasing Commission is adding to the confusion and irritation. The Hessians are not parties to the agreement calling for world vide distribution of surpluses by the Combined Pood 3card and succeeded in buying about half a million bushels of flax in Uruguay at about $2.25 "before Mr. Jasspon appeared upon the scene and arranged for the purchase of about 4,OCX),000 bushels at $2.27^* The difference NCA 0 03100 is that Uruguay was under r.s obligation to sell only to ;rur C-r.v.oiity Credit Corporation, as Argentina is under terns of the agreement r.ade a year ago. But off;: s being -a-de by the Hussians have had the effect of complicating Mr. Jp.sspcn's r.ego- tiations with Argentina and there are indications that they will not he satisfied with the price paid in Uruguay. /^ \ This can't go on indefinitely but already it has gone cn so long that it is doubt ful if we will benefit fron further importations of Argentine seed ir. the second quarter. However, we understand that fron 1,000,000 to 1,300,000 bushels of the Uruguayan purchase are destined for immediate shipment to this country and this quantity, together with that already rocc-ivei from. Argentina, plus further deliv eries from, our own crop, should be sufficient to support the 75'- qu:ta. r.r.y deliveries of Argentine seed will help cut in the early part of the thiri v.r.r- ter before our 19-6 domestic cron starts tc move. Mr. Pi-iest stated that the forecast of our 13^6 crop is disappointing, indicating only 25,000,000 bushels based on farmers' intentions to plant as of March 1st, as compared with 37,000,000 bushels harvested ir. 19-5 There is of course a a r_-.ee for improvement and there is usually some increment in the acreage planted but much depends upen weather conditions unsatisfactory to earlier crops and ir. the meantime all emphasis of the administration appears to bo on food crops because of threat ened famine in Europe, though of course this situation must be met as well as can be with surpluses fron our 19-5 crop ar.l these countries new relying on us fer aid should have crcps of their own next year which, even if insufficient to provide for nil their requirements, should make then much less dependent upon imports. Three months ago, in spite of the fact that there was not then enough soybean oil for edible uses, the Department of Agriculture feared a surplus from the next crop and deliberately set the goal at about 10$ less than last year. Vo and others protested this and the acreage was restored, on paper, by increasing the goal but again emphasis upon wheat and corn have apparently influenced the farmers in their appraisal of the economics of the situation and the report of intentions to plant as of March 1st indicates the 19^6 crop will be about 12$ less than the 19^5 crop. The soybean oil order ha6 recentlybeen amended and all inedible industrial uses are now limited to the monthly consumption of one-ninth of consumption during the first nine months of I9U5. The order no longer specifically prohibits the use of soybean as a drying oil but it has the same effect as such use was prohibited dur ing the first nine months of 19^5* The imports of copra or coconut oil which were expected to relieve the pressure on soybean oil have not yet materialized but when they do it should be possible to relax the restrictions on inedible industrial uses of soybean oil* There has been considerable criticism of the Navy's use of soybean alkyds at a time when thers Increasing demand for finishes from the reconversion industries. Neither the Kavygjpor the Department of Agriculture havo felt that the Navy's use of 6cybean alky&r-has been excessive but nevertheless they have shown the sane fine spirit of cooperation as already noted in the case of titanium and havo not only eliminated the use of alkyds from interior painting but have also agreed to change the specifications now calling for the use of soybean and to make thon more flexible. They will not specify linseed instead of soybean as they have con . siderei the possibility that soybean say be more readily available than linseed ' in another year or less, but they will eliminate the requirement for the use of soybean at this tine. The castor oil situation has improved as compared with three to six months ago but is still very unsatisfactory as compared to a year to eighteen months ago and there NCA 0 03101 interior transportation facilities. Three norths ago cur crushers hd withdrawn frca the market for beans because the price in Brazil rale it impossible to irroort ar.d crush then, and. offer oil for sale at our domestic ceiling prices. Since then the price has been stabilized in Brazil and CPA has authorized an increase of per pound cn dehydrated castor to compensate for the increased cost. There appears to be a gradual increase in the amount of tung oil coming into this country from China with arrival of the first bulk shipment reported two or three weeks ago. S:ne oil is still being sold to Great Britain at prices in excess of our ceilings but as larger quantities become available for shipment our imports should continue to increase and it hn3 been suggested that they may be at the rate of about 1,020 teas per month during the last six months of the year. The fishing season on the Pacific Coast has been very unsatisfactory and total rrc- duction is estimated to be cnly about of normal while the proportion available f<--r industrial uses other than the vitamin trade will probably be still less. Glycerine Mr. Priest stated that glycerine is a by-proiuct of soap mar.ufacture and is impor tant to us as a raw material for use in the manufacture of synthetic resins. Scan manufacturers are operating upon reduced oil quotas based upon civilian consumption only in 19^0 and 194-1 and they are al90 operating under the handicap of very small quantities of coconut oil, which is superior tc any of the other oils used in it* yield of glycerine. We had expected that by this time we would be receiving fairly large quantities of coconut oil or copra from the Philippines but these have not-yet materialized. Under allocations of the Combined Food Board we received copra from Ceylon during the war but with the end of the war shipments from Ceylon were diverted to Surepe with the expectation that we would be able to resume imports from the Philippines. However, up to the present time our imports from tho Philip pines have been less than they wero from Ceylon a year ago. The* situation is im proving fren month to month, however; F.2.A. hp.s put trucks into the islands and the !'avy has turned ever LSTs for inter-island transport, thus replacing facilities destroyed or taken away for their cwn use by the Japanese. Bosin - Mr. Friest reported that at the October meeting, Mr. Wells Martin had discussed the rosin situation with members of this Conr.ittee who recommended that restrictions be kept in effect until supply is in better balance with requirements and that ex ports be severely restricted. Since then quota restrictions have been renoved and there is now a soTeoent upon the part of the southern producer# to obtain approval for the exportari^Ss of 650,000 drums during the current crop year beginning April 1st. ThwEole situation, with CPA estimates of production and requirements for domestic confezption. Is discussed in detail in Kr. Martin's letter of April 12th to Mr. Trigg (copy attached). White Pigments Mr. Priest reported that though drying oils presently appear to be the limiting fac tor in production, it is a question whether we would have enough white pigpenti to permit tho use of much more oil than we new have. The titanium producers are pro ceeding with their plant expansions which r.re expected to increase the rat* of pro duction from 1^0,000 tcr.s per year to lfiO,OCO tens in 19^7 but delays due to the steel strike have set tho program back by three or four months at least so that we ore not likely to get tho increase we had hoped for in the las't six months of I9U6. NC A 0 03102 Thera is no probability of significant expansion of lithcpoae production as cany plants were dismantled before the var and those still in production have teen oneratins at capacity. All other tine sulfide pigments are short and so is leaded zinc, though lead-free zinc oxide is in better supply. The white lead manufacturers have' just received another cut in their quotas of lead metal which they are permitted to process and farther cuts appear in prospect because of the world-wide lead -hartage; it is a fact, however, that even under these reduced quotas we continue to have very much aore white lead available than a year ago. In answer to a question by Kr. 3ovr.es, Mr. Priest stated that the linoleum anufactuners took most of the shipment of contaminated oil which was received. Frcsidont Trigg stated that the gun producers in the South had rallied to their support Southern Senators who have cade a great issue with CPA regarding the resin situation. The price situation is such that gun rosin brines a higher price in export than is permitted under ceilings in this country and therefore the producers are making a special effort to have an increase in the amount permitted for oxnort. Ke stated that Veils Martin estimated that buyers in this country will not receive more than 75$ of their need if exporters get permission to ship the 650,000 drums they have requested. President Trigg suggested that this Committee night wish to go on record as opposing any increase in rosin export above the 250,000 drums already agreed upon. It was moved by Kr. Carden, seconded by Kr. Foy, that this Committee go on record a3 opposing any additional quota for rosin export above the 250,000 drums already agreed upon. Motion carried. " In answer to a question by Mr. Shannon, Mr. Kinsman stated that there is a 10$ premium on export price of rosin over domestic price. .. California Regulations Covering the Use . of Precautionary or Poison Labels Mr. Macdonald referred to the fact that at the last meeting of the Executive Com mittee a report was presentod regarding the California Labeling Regulations which were then under consideration and he stated that the regulation was put into effect but as a result of protestation the regulation was suspended pending further review. Mr. Macdonald stated that Dr* Warren H. Watson, Secretary of the Manufacturing Chemists Association of the United States, represented our Industry at the hearings on the Pacific Coast and he then read the following letter from Mr. C. H. Sondhaus of the Kational Lead Company in San Francisco: "In answer Aa t o u t letter of March 26, at the present time there Is no 'LabellnggHt Injurious Substances Safety Order1 as the proposed order was suspi^B#'prior to two hearings at Los Angeles and San Francisco, which Drp&tson attended. "I assume that since Dr. Watson's return East, he has reported to Mr. Trigg and perhaps yourself concerning developments during his visit to the Coast. "At the moment the Department of Industrial Safety of the Industrial Ac cident Commission is engaged In rewriting the order end when that task has been completed, another hearing will be held. This hearing hat not yet been announced. We are hoping of courso that the Department will authorize the uso of the uniform caution labol which our attorneys sub mitted to the Department. As soon as we can secure an advance copy of the order as rewritten we will send it to you* NCA 0 03105 ".'fibers of the industry here have expressed themselves to me as being greatly appreciative of the assistance given by Mr. Trigg and his as sociates in having Dr. Vatson attend the hearings in February and in other directions, and we hope for a continuance of that assistance in case the rewritten order still contains impracticable or unreasonable restrictions." Mr. Macdonald stated that the paint manufacturers on the coast r*co:\ner.ied the adop tion of a single caution label as follows! CAUTION Protective coatings and related products nay contain substances that are injurious to health ar.i create fire hazards if proper precau tionary censures are not used. VAEMING - FLAI TABLE - KEEP AVAY FP.OM M AT AND OPEN FLAILS. US3 VITR ATIofJATS 73N-ILATICN. AVOID PROLONGED EPZATKING CF VAPOP. AND ?3CLONC-ID CONTACT V.TTH SKIN. DO NOT TAKE INT3?r."LLY. AJTIH USING, CLEANS3 HANDS TKCHCUGKLY. Hr. Macdonald stated that Dr. Vatson had ropoi-ted on his return from the Coast that he net with our industry group and their attorneys and that the group seemed to be adamant on their proposal of one label for all products. Dr. Vatson was of the opinion that the California Commission v:as not too happy about the situation, but night agree to it as a temporary measure. He stated that the Labor Union Group in Los Angeles was critical of the proposed labol and wanted the r.aaas of all hazard ous ingredients shown on the label. Dr. Vatson was of the opinion that there cay be difficulty in covering our great variety of products with a single label if cau-' tior.ary labeling is to be adopted and he felt that prodxicts containing aethanol and benzol justify specific caution. Dr. Vatson stated there will probably be another shorter hearing on the subject and ho expressed the opinion that while they cay agree on a label as a temporary solution to the problem he felt that the use of the single label would be a temporary nensuro. Approval of Auditors for the Current Year . Mr. Foy stated that the Budget and Finance Committee recommended the employment of Ernst and Ernst as auditors for 1946. It was moved by Mr. Wurtcle, seconded by Mr. V. M. Clark, that Ernst and Ernst be employed as auditors for 1946. Motion carried. Membership The Secretary stated that since the last meeting of the Executive Committee the fol lowing concerna have been elected to membership in the classifications indicated, by a mail ballot: Class A IDDIHGS PAINT COMPANY, INC. Ug-lS 33d Street Long Island City 1, N. T. Carl ladings. President C. ELWOOD MACKEY & CO. 911-913 Fifth Ave., North Birmingham, Alabama C. Elwood Mackey NCA 0 03104 mid -c o n t in e n t p a in t & lAcquE?. m?g . c o . 1521 Central Street Kansas City 8, Ko. J. 3. Nichols, President p e er l es s c emen t c c h p g h at ic s llUU Free Press 3ullding Detroit 26, Kich. ? N. Steadnan, Mgr., Paint Dept. VZ2ER & SMITH, INC. 15 Fierce Street Heading, Mass. P. A. Scith, Treasurer Class 3 CALIFORNIA FLAXSEED PRODUCTS CO. 3135 -sst 2oth Street Los Angeles 23, Calif. Otto M. Behr, Vice-Pres. SURERICH OIL CO. INC. 3b0 Torr.an Street Indianapolis, Indiana R. P. Johnson, Secretary The Secretary presented applications for dealership received fren the following cor. corns in the classifications indicated: " " ** Class A CONTINENTAL PAINT CO. l4 South Park St. San Francisco 7, Calif. J. P.. Tad6on, Partner mid w e s t p a in t mf g . c o . , t e n 19 Main Street, N. 3. Minneapolis, Minn, A. F. Swar.son, President C2LADP.I CORPORATION 652 Willis Avenue Villiston Park, L. I., N.Y. V. S. De Lan, President PENINSULAR CHEMICAL PRODUCTS CO. 6795 E. Nine Kile Scad . Van Dyke, Michigan ` 3. H. Ploe, Treasurer DeVlART PAINT & VARNISH COMPANY 906 S. Main Street Louisville 6, Ey. Mr. C. A. DeHart, President STERLING CHEMICAL COMPANY 3101 W. Lisbon Avenue....... Milwaukee 8, Wise. Roland E. Loeffler, Pres. DUNN-RAIN3Y COMPANY, THE 1HU7I Livernois Avenue Detroit 21, Michigan 0. W. Dunn, President STILES PAINT COMPANY U39 Portage Street Kalamazoo, Michigan L. W. Schaefer EVEPARD PAINT MFC. CO* 153O Carro$: Avenue San FranclMfe 24, Calif. Vm. J. Sverard, Owner TECHNICAL COLOR & CHEMICAL WORKS U39 Third Avenue Brooklyn, N. Y. Donald Greene, President TRI-STATE PAINT COMPANY 1203 South 4th Street Minneapolis, Minn. Mr. E. P. Kennedy, Treasurer Class B McGEAN CHEMICAL CO., THE 1106 Republic Building Cleveland, Chio W. A. Ritchie NCA 0 031 OS It vas moved by Mr. Toy, seconded by Mr. V. M. Clark, that the aprlicr.tlcr.s as -ors- ser.ted be approved. Motion carried. " **" The Secretary presented the recommendation of the Membership Committee for the can cellation of the following Class A memberships: C K. NEASZET CO. INC. -- Dallas, Texas MCNON EESINS & CHEMICALS, INC. - Peoria, 111. (poor financial conditions) rV?.2 OIL CCJCPANT - Chicago, 111. (out of paint business) Hj DD LACyjZZ C?Z?C.-,VT1CN - Zahvay. N. J. (out of business) It -.as moved by Mr. Foy, seccr.ioi :y Mr. V. M. Clark, that the memberships as pre sented he cancelled. Motion carried. New England Association 3;.--lavs The Secretary reported that ir. accordance with a provision in the 3y-Lavs, the New England Paint, Tarnish and Lacquer Association had submitted to the Executive Com mittee for consideration, recommendations for anondr. an t of Sections 3 and 4 of .Ar ticle III of their By-Lavs and Section 5 of Article IV of their By-Laws changing the date of the fiscal year of the local association in order to simplify local ad ministration. It was r.cved by Mr. Trigg, seconded by Mr. Jarderi, that the amendment proposed by the New England Paint, Varnish and Lacquer Association be approved. Mo tion carried. Simplification Mr. Kurfees expressed the opinion that it night be advisable to consider the possi bility of eliminating the five-gallon can fron approved packages for the paint in dustry. The Chairman suggested that the natter be referred to the Simplification Committee by Mr. Kurfees. Cooperative Advertising Campaign In answer to a question by Mr. Kinsman, President Trigg stated that tho Advertising Campaign is noving along a bit slower at tho present tine because most of the larger contracts are in, but he stated that contracts are being received regularly and that approximately $325*000 has now been subscribed by about 50# of the number of firms required* Adj ouraaent There being no father business to cone before the Committee, the meeting adjourned at 2:25 P.M. NC A 0 03106