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Marah *4, IN* Mr. J. K. EoMiu, Praaldan'l Au*ti Cajper lUtil nimr tSt In Tor* 4, Ian Tor* .Dear Mr. Bobble#: dttaahad la a rapart prepared 6; Mr. I. K. HBrlaa* firing the highlights of the Mating of tha Load PUawt.fcai^fn kdrlsery Copal,taa_ Alab wa ballad hy_Jha_ f.F.3- kw* jjjliT'lk, SaahlngtaaTop fiaroh 15tlu. . Hapraeantatlra* of tha 5,?,a. praaaatad flgaroi ahoolag that tha oonsuaptlaa of laad wowld axaaad prodoollaa throaghaat tkla year and hasty Inroads would ha aada 1**0 tha atoaM pil*. Tha irmj and lory auegastad tba production of dry *klt* l#** ha. dlaaoatlaaod January l.>t, 1943 la order to oaw* tha 3.000 or 4,000 toma at laad uaad aaeh quarter for that purpose, under tha grataat Ordar SI-384. Bowawar, tha laad onaalttaa of tha i.?.8. *xpJata*d that whit* laad aaa aaaaatlal to tha war effort, aad Halted produellaa aaa permitted for tha flrat qaarter. It aaa lad1satad that T-day la Turop# would hot rallar* the pressure oh produoara of dry Alta laad haaaaaa any laad aot aaadad for war would ho diverted lato tha aaaufaotur* of hattarloa for eivlllin uaa. .- - ' Producers of dry Alt* load war* aAad to giro thalr atoo* positions oa both aid dry lead. Ihia lnToraatloa la suaaarlned la tha f olionlag table: . ' Proditaar"- -toe* Ir*ia-C 5 took Dry Laad dry Laad la Froeass tuaooada 3egle PI Aar Boston Tailor McGregor Batloaal oharwln-tfllliaae 110 Toaa 170 73 0 70 1,200 0 1,623 Taa* 800 Toaa SIS 230 0 0 900 -122 3,23# Toaa 0 1,000 Ton* 0 1,900 0 9,000 173 10,973 Tons This table Aowa that aaaa 13,000 toaa of dry Alt* load is held by aaoufaeturara la finished atooha and la proaoaa. Then tha question aroaa aa to Aathar thla toonago Aould b* aawad aa * backlog or uaad up, National Laad (Aloh raportad a boat 2/3 at tha total) too* tha laad la arguing that Aa* aathoda of prodaotloa required large In N11565 v ,,, --- PNTC00009337 Ir. I. S. Mllu 2 hnk 2d, 1949 proaasa tu*u< It *aa dsoldod to loavo this aattar aloaa, and It vas also dooidod to kaop tbo atooko hold by ooaauaara froson, aloea tbo w.r.B. raproooatatlTos fait that U* aay agitation so* aado to roloaao thaao teaks, the loot aoaaittoo ni*bt roJLa that tbo prodaatlaa of try obits load ootid not bo nocassnry,, Apparently Order H-J84 will bo revised bafore April 1st, bat this revision will have lit :1a or no offset oa dry obito lood. Second qaartar prodaatlon will undoubtedly bo aa tba sane boat a aa for tho first quarter but ao official ajsncnuMaaant baa jot baaa Mda. lo hope that hr. Eiurleoa' rport jrlll bo of lataroat to you. Tory traly yooraV xX r v%/s6n/- GZf/t* eo: ar.g.2vQoyor Ur,?,uttr^' Sac. PNYC0000938S In t e r n a t io n a l Sme l t in g a n d Re f in in g Co mp a n y East Chicago, Indiana Pigment Division mmi 23, 1949 Mr. 0. 1. 3aba*o b, Flant Jfeaager, - last Chicago OfTie*. Dmr Mr. Johaa001 da Marcb 15th I ittad*d a neeting of tbe Utd flyt Naqufaeturer* Industry Advisory Canltteo dllA ni MlItd by VI*. Tbe neating vac hcI<rih roon t3t6, Soeiel Security Building, Washington,- D. C. The presiding officer wee Charles I. Love ef tha Protective Coating Section, Cheniesl Bu p mu , vn. la vaa assisted hr Mr. Bcajanln N. Belcher, bad of tha Protective Coating Section of VFB. Acting In an advisory capacity vaa Mr. A1 Moats of tha Sagla Piebcr Lead Coapany who la a doll*r-pcr-year aaa and vbc divided hia tine between Eagle Plcbcr and V7B. There vaa also oaa other representative of VPB present. belovt Those present and the 0(aspenlas they represent are Hated Cooledge Beyt larleaa Xhlgtot MsCarthy NaOregor Sprague viiteer viike Shervln-VllllMa Eagle-PlSber ZnterMtloaal Sustoa Lead let tonal Lead NoMreger Lead Button Lead >attonal Buancnd Lead Mr. Fells Vornacr, Secretary of the Lead Industries Assoclntloo vaa endeavoring to register when I arrived, la vaa not peraltted to register since he vaa not a naadftsr of the eenalttee. The natter vaa taken up vltb Mr. Jbalab 0. Fort, bead of the VFM Industry Advisory CosMlttees vbo ruled that Mr. Vomser would net be pensltted to attend tbe nesting. The wanned representative of VT indicated that daring the first quarter tbe overall eeasuagtlon of pig lead would be 297,000 tana. It would be about tbe sane In tbe second quarter. At tbe end of the first quarter total stocks la this country Mould be down to about 66,000 tons. They were endeavoring to get production to balance conaunptlon but It vac Indicated that It would be neeeesary to go into tbe stock plla in Marsh and April to tbe extant of about 29,000 tana. Total stocks In this country nay go don to 29,000 tons by tbs and of April. It was requested N11565.01 PNYC00009389 Mr. 0. B. Jobas 2 *5, 1*5 that tuts Infamt lee be kept strictly oeafldeetlal. the nyNtwutlni af the iny u any M UkM the ytsltiM that all productlee of dry ifelt* lead should be discsatin*d. A* n> yvlMBtiti sonuittse of VP* m Laelined ta ge alas*. Iwiwy, the lead ttaaittM of VP* explained that vblte lead pradaatlca wi essential ta the ver sffert to a eeneldsreble decree, tbe lead ssanlttse ad VP* agreed te alia* production la the first dearies' to the esteat ad 155 of the pig lead eonsmed la tbe first half of 1** or roughly a 305 evor air quota. It *aa aetlaated that 29*000 tea* vaald sever the total re* qatrsnouts under order M-38t for all types of lead pipieata hat this oas cut te 26,000 teas. Penelttad prodaetloa of dry Alta load for the second quarter had not bees discussed at the tine the aeetlag aa held bat it hoped tbet the inda* try vaald be elleoed te p elcag oa the present best*. It vea plainly ladlaated that there voald be ae tnersesa is prodaetloa permitted. Mr. Lore then eekod the representative# "mt all prodeeere ta dieeloee their stoek position oa bet* lead* la-ell aad dry lead. A WMary for ell prodaeers in given la the relieving tablei Prodaeer Aaeoonda Bogle Pleber Suatan Puller MeOregar. Setlocal Share in-Vi 11ises Stoek Lead-la-011 110 Tons 170 75 0 70 1*200 ____ 2 Steak tejtffii 600 Toos 215 250 0 0 800 .m la Proves* te 0 Toes 1,000 0 1,800 0 8,000 ....its 1,625 Tone 2,235 Tons 10.975 Tons Mr. Beleher ashed that tbe representative of each producer iadlcete tbe aaouat of tbe pig lead quota that vaald be used la masfaoturiag dry vblte lead la tbe aeooad quarter if tbe preaeat arreage eat Mi dlaecatiaoed. Iwrytae preaeat ohjested te having his figures dlaeloaed. Mr. Lore said that this voald be dlaeaseed individually aad that ell had furnished the lafenatlon except latenettonal. Ve bed aet furnished this Informtloa heeeueo the request bad beea a verbal sate fron Mr. Ooets vtio le ta the enploy of the Cagle Pleber Lead Canpeay aad it vea aot a foraal request fron VP*, it ass daalded that tbe flgurva that had beea funisbed voald bo sloeo eaoag* to serve tbe purpose for vhlcb they sere seated. Apparently tbe aaouat vaa 5*000 tons la tana of aatal or about 6,000 tons la tana of dry vblte load. Tbe group van then polled lndlvidnelly ta flad out shot the operot lag pleas van for the seeoad quarter If tbe preaeat regalatloa renalaed unaboaged. Cagle ead MeQregor ladieated they vaald operate. PNYC00009390 r. 0. I. Johnson 3- knk Q, 1JH Batlonal Mid that tfcey would aet operate five plants bat would maks their 30* quota. Fasten will operate daring tha second quarter bat vlll ipraad oat production. They did aat kaaa whether or aat they would operete la tha third quarter. Fuller vould eperute during tha second quarter. I ladlaatad that a mil eperete la Jeue la tha oeeeod quarter and plan on operating la Jaly af tha third quarter, anting a 60-day continuous operstlom. It van than polatad oat bp tha representatives af VPB that there vaa a backlog of aboat 12,000 tana af dry laad la tha bands af producers end In process. 0a the present basis this voald be aboat a six aontbs' supply. Tbs question was shatter to mis this backlog for contingencies or to permit. It to be used np. Vlldaer of Bstlonsl pointed out that a certain aauiuat eoald sleeps he la process, depending upon the method of production used, unless a plant aha completely shut does sad cleaned out. If tha plaata vara shat deum, than tbe naapevsr situation vould be aggravated as tha labor oonld sot bo rotaload. Slaee utianel has moat of tba dry laad In proaass. It ana amInly their argsment and It aaa decided to leave the matter alamo. Tba next question vas ahathar or ant tba steaks of dry shite lead in the hands of tbs consumers, and sfaleb sere aamaldared to be rather extensive, should rsanln frosee. It sms stated that tba reason tbay vers frosea la tba first plass van baaaasa It vaa thought that no sore white lead vould be produced daring the emergnmey. Vov that It tppMri that a certain amount of vhlte lead vlll be permitted to be produced, some had taken the position that tboaa having stock should be permitted' to use it. ' flae VPB representatives strongly rear-- sailed that no agitation along this llna ba nods. Tbay statad that If am laeua was aada of It tbs lead committee mould very likely rule tbot slaee ad numb dry lsed vas on band vltb consumers that it vould not bo necessary to produce any more dry vhlte lead. Tbay vara vary positive about this and tba representative# of all prodaecrs decided to take the recommendation of the representatives' of VPB. Obe representative of a producer asked vbsther or not tbs end of the Oeraan var vould case tha pressure on the producers of dry vblte leed. Tbe unnamed,representative of VPB stated that It vould not. Any pig lead not needed for tbe var effort would very likely bo flrvt diverted into tbe manufacture of batteries for elvlllams. Soma one raised the question as to bow sneb pig load ve were giving avay on lend-leas* and tbe answer was tbot: it vas only 250 tons for tba sec and quarter. There were no figures available for fabricated produsts. Thera isto be revision of B-3SA vhleh prehably vlll ba Issued prior to April 1st. Tbe changes are aet of importance as far as we are concerned. For example, there will he daflaitimas of certain products snob as frits. Also, the quotas for seam concerns such as the manufacturers of glass and Insecticides will be tlrsagvd to sene extent pNYC00009391 0. I. JofcMl # 19*5 bat rash mu i i n nUtlnly onImportant itwtnt tk overall plitv*. T.B.Barlosoibo Tory *raly ym, PNYC00009392 j .. JttMIT UM, 1141 Hr. T. 0. Case, Assistant te the ?niU<it Anaconda Capper Wiling Company . ........ Beoa 18*0 - 5 Broadway Hew fork 4, Hew fork Dear Hr. Caee: He thank you fer t o u t letter ef Taauaryi 5th te Hr. La1st concerning Hr. Bansoh' report on paint fonwleti Us, and tha dipping from the Tail Street Journal rtjarilln w lw4 supply la this country. Hr. Kurleae ha* given you hi a eoauiit^ta with a letter that he has recently written to Hr In studying both thesf/t*eas, wyhelieve there are several factors that were not mentioned',, "Which mV/have a bearing an the future' of whit* lead and on the'price af/jLoad. Vo shall try to briefly outline our thoughts on '^hpe^^hostion*. - Paint Toraalatlons , -, '\\ In the eoapefl en ofOpelnt fphjsdetien* fer 113* aad 148, as prepared by Hr. Banach, we dh'pet believe that the year 1>48 la representative of the paint foiwfclation that paint aanufaeturara would hare used had there been mp/restrictions. These restxlatleae as they affected the use of white lead in the aahnfaoturw of paint during 1945~een~he bri/eC3,y_nVeilmed aa follows: -V ' ^ > On January 18th, 1945 tha H.F.B. eatabllshad a quota of Xi% for the mount dry White lead that could ba uaed in the production of palnthj On August End tbs quota was raised to 50, and on Optobor 9th jiy.1 restrictions on the use of dry wfalta load ware rcapvpdj then too, we oan hardly aesnas that any paint femlations in the war yean would he representative, beoause of restrictions ea tha use of other pigments and the shortage of titanium pigasate during tha early years of the war. The shortages of llnaood oil which have been acute are perhaps a faster that met bo oemsiderad. However, we arree with tha general tendency to roduoe tha woo of white lead pnd lead pigments in Mint, farwnlattoee ta e tloi ewS d&acmbTeaiy anr substantial increase in tha price ef land pi wti will adversely affect their uca in paint fcraalatloms. N11565.02 PNYC00009393 Lsad 3pplr and Pt Im The Infaraatlve artlele from tka Wall Street Journal gives a |aa4 ~ip f- tke present sltaetlea eeaaamihg laad supply end probable fitan priae nf lead. Xw 3 order to disease this Information from tka Wall Street Journal, w are Aewing bales;' (1) a tabulation at laad production an a nlaa bails and (2) Wav Trk, laadaa and " Montreal laad prlaaa for the yeara 1997 to 1944. Till Information aaa rtUlud fMa the 1944 Teerbeok of the American Bureau of Metal Stati atlas. ftaaa flgarea unfortunately da aat 1nolada tka production of laad la Xurepe, Ada and Africa 1 iaa 1998. ' ' L8AP rgOTCCTlOK.OJf MISS BA3I3 r? TOWS OV 9.000 133. U.3. Canada Maxisa Argentina Bolivia p#m lurope Aala Africa Australia 1937 1938 444,892 369,724 233,229 241,343 240,448 311,255 17., 247 26,125 20,062 14,573 41,338 63,982 373,630 416,033 114,631 127,601 ' 53,414 74,192 275.555 307,293 1,344,44* 1,952,113 1939 1940 194l/i 1942 413,979 457,392 4*1,4i 48*. 299 221,071 262,1*0 253,384 284,171 241,-9*1 216,330 . I7l.l 214,000 32,738 15,563 32,:738~ 28,990 12,855 17 * 254\\13,757 51,018 - - . '' . ^--x \ " .! - .' 55,1*7 - - \.*72 V- -. 310,008 314,491 292,374 291,938 1948 *88,818 288,088 209,800 20,300 12,308 58,700 - 211,*48 ltd* 418,7M 100,107 127,407 *1.880 *,m H.OOO m - 197.880 TSASiaviiftTS^sr- fiatr^gfjcsi PC U.3. CENTS PAH POCMD 1937 1938 1939 1940 ' 1941 1942 1948 1944 Wsw fork London Montreal 6.009 4.739' 5.053 5.179 5.793 *.481 *.500 *.808 5.148* 3v 333*>*\ 2.913***' 4.490**** 4.490**** 4.4207*** 4.490**** 4.49V**** 5.80 , ; grtOO v A, 2*0- 5.000 5.000 5.000 2.000 2.888 * Found Sterling/3 4.944 . " 3 14.993 ' *** W * 3 84.437 . / **** -. a Hv)25 /'/ Tka tsblei''iasilti that In almost every ease a substantial reduction in tka production of lead baa occurred, end that there has been relatively little prise chance between 1937 and 1944. It of course Is to be remembered that premium prises have beam paid by the Metals Reserve Company for both Foreign and domestic load during the war years. If we assume that these premium prises should have encouraged tka productlea at lead In the war years, the(opposite affect Is all too apparent, as witness the reduction in the production of laad from Canada from 233,000 in 1937 to 130,000 in 1944. A similar reduction is indicated in the production of laad from Mexioo and Australia, nhloh are tka major foreign laad producers. P*rCC009394 Mr. T. 01 Gate 8- ink, mi If wa eonalder our doa*it 1 lMi supply sad predmstiesi poasibilitlaa for the postwar j z i, it la evident that a sabataattally higher pries for doaestlo load aaat ho paid la ardor to agndm moor supply ths donsstlt load aaodad. Vo doubt Tory aneh ahother la tho Hah> war years tha United Statoa will bo able to Jwrtlfy paying a prlaa that will permit domestic produeara to supply all tha leak that la aaodad for United Statoa eeneunption. Vo believe that there will ba aubataxtlal aneourtgenent for tha importation of load froa foreign aaaatrlaa, principally Canada, toxleo, Aeatralla asd PemD cad the* t**s importations of foreign load will largely govern tha postwar prlaa aad uses of load. * If tho past relationship of foreign trite to Is--at la load prlaa Is oontlnuod In tho poatwar period to* aarraaalaa hare boon established In the conquered countries, would no quite reasoiiE.'jIs that any aubstantlal incrsase in lestloa would flrat occur In the foreign sources of supply. Lo, with tha Linden price of lead the ecuiralsnt of 7? par pound Hew York\given aa adequate labor , supply, i Trail In: Canada and ?orV-?t]rie and Mt. 1--^properties la Australia' would probably Increase tkeir-p^oduotlon at lawt to the 193? rate1. We1 era : also of the impression that the National Lee* Company1 a lead mining and smelting operation* in tha Argentina era capable of greatly expended production in a raasongblsrperiod of tins. If a substantial increase In production does occur froa foreign oourooo, - then we are inellnsd to bellows that an^ high prloos of laud la the . domestic market jfould bo of~a temporary nature and probably would not last over two or terse years or possiblys^lTe years at tha nest. In making this statement, ..a shoal 1 like to state that tho present strike in the lead mines an 3.-.altera of .leiico Is perhaps the moat lnsodloto disturbing factor in the lead priop situation because we have boon receiving aoout 23.0C3 tons per month from Mexico and tha shortage . indicated in tha Uall' Sbrpet_^lrumal article la approximately that amount of lsad; i.a. If aad.-vsOn. the lead strike in Mexico is eattied, apparently enough lead can be Imported-to take ears of our immediate requirements up to 3(5,000 tons per month. This 30,300 toss per aoath is a Tory high consumption rats in the United State# as eoapered to a prewar average consumption figure of 53,100* toss for tha yeera 1936 to 1910 inclusive. IT is indicated' that Tetraethyl lead requirements for pi? lsad have ggrpstly increased and perhaps tho use of ltod for lead eoTe'rad oablo.have Inc:,eased during the war years, but otherwise it is doubtful whether any other important use of lead in large quantities has been developed during the '.iaT year3. 1 I shall appreciate.your comments on these thoughts. o-j/b. .s Very truly yours./ W-iSO- O'c / ;, eo: Mr.T.Lalst Mr.7.H.Earless * Rtf. Tssr Book 1944, Arne risen Bureau of total Statist1st PNYC00009395 EC- Hr- 3* An a c o n d a Co p p e r Min in g Co mp a n y 25 Broadway, New York 4, N.Y * January 15, 1946 Mr. F. Laist, Vice President In Charge of 'Metallurgical Operations Anaconda Copper Mining Company Building Dear Mr. Laist: '' You will remember our various discussions with regard to basic carbonate white lead and the- difficulties that are apt to arise in connection with the sale of white lead if pig lead advances radically in price. Some years ago Mr. Bansch made a study of the formulations involving, white lead, leaded zinc, zinc oxide and titanium, with particular reference .to the largest producers of paint in the United States. In view of the anticipated difficulties with white lead in the near future, he was ashed some time ago to bring this study up to date in order to determine what the trend has been since his previous study. The result of this is his report of December 31st, a copy of which is attached. I believe you will find this very interesting and, unfortunately, it confirms many of our pes simistic ideas. You can see from Mr. Bansch's report that there has been, on a percentage basis, a radical decrease in the use .of white lead by the larger paint manufacturers. Also the -se of extended titanium dioxide pigments and leaded zinc have considerably increased during the years since 1939. ' Our discussion of a possible arrangement with A -prucan Zinc, LeadSc Smelting for leaded zinc ores and galena ties in to a considerable extent with this same problem. While leaded zinc now sells at l/4d under the market for lead-free zinc, a radical increase.in the price of lead, hence the price of basic carbonate lead is likely to lead to a considerable increase in the price of leaded zincs. The whole problem has a very di rect bearing on the bismuth situation as it pertains to trie Anaconda Comoanies. Another development that has just taken place, which probably doesn't mean too much at the moment, but which is apt to receive favorable Government consideration in many quarters N11565.03 '***** Mr. F. Laist 2- - January 15, 1946 is a petition by CIO Battery workers and certain other labor groups. This petition has recently been sent to President Truman and in It they request that he take steps to continue the present subsidy to the marginal producers of lead ore and Increase the subsidy if necessary. In addition, they ask that the Government use its influence to substitute the use of aluminum foil for lead foil thus freeing approximately 25,000 tons of lead for battery and other "essential users". Also they request the Government to get behind the substitu tion o-f extended titanium pigments for basic carbonate whitelead and 'basic sulphate end that such a move would free another 100,000 tons of lead a year for more essential uses. - You are also aware of the fact that Canadian,and Mexican producers of lead can obtain the equivalent of ap proximately 74 pep pound laid down at the, port of shipment as compared "ith 6 l/4i for their lead if they,sell it to the Metals Reserve and ship it to the United States. This situation, plus the strike in Mexico, will further reduce tne volume of lead available for, the United States and hence hasten the day whpn lead will cost dfi.reet.ly or indirectly 9i to 104 a pound in the United States. F.0.Case:Mc cc - Mr. J. R. Hobbins PNYC00009397 To F. a. Hurless Date December 31 , 1945 Page No. 2 Subject: TREND IN. WHITE HOUSE PAINT FORMULATION * . Paint bulletin No. 20 issued by the laboratory in June, 193<y described the formulations used by several, nationally known paint manufacturers as well as producers on a somewhat smaller scale. The data given !in tnis bulletin was collected by Mr. De Young and in view of recent discussions: on the prospects of white lead in house paints he was! asked to obtain: present day formulations, duplicating where possible the same manufacturers: surveyed in 1939 plus any additions available* ; These data are given in'table 2. - Table 2 Approximate Pounds of Pigment Per Gallon White Lead Leaded Zinc Titanium Extender Producer Sherwin Williams Pittsburgh Plate Glass Lowe Brothers Jewel Martin Senour DuPont Pratt and Lambert Chi-Namel Vaisoar Minnesota 1222 3.97 3.39 3.97 2.38 7.55 -w 0.94 .- - mi 1.21 0 2.71 2.69 2:. 45 0 0 1.71 0 1939 5.28 3-90 4.07 4.75 3.79* 5.37 '- mi 4.S5 4-46 4-02 5.38 4.11 4.54 4.23 - 4.25 4-79 1222 1.16 1.18 1.33 1.03 0 - 1.53 - 1212 1.21 1.22 1.12 0.81 1.12 1.01 1.44 1.04 1.44 1222 1.16 2.74 1.33 2.40 0 - 3.56 - 1212 2.83 2.84 2.60 1.88 2.60 3.35 2.92 - 2.44 3.35 * Lead-free zinc oxide used by' Martin Senour in 1939 Average 3.70 1.20 3.39 4.51 1.04 1.16 1.36 2.76 Further analysis of tables 1 and 2 indicates that the trend is toward definitely lower lead content, slightly higher zinc oxide as represented by the zinc oxide content of the leaded zinc, slight increase in titanium oxide and substantial increase in he extender portion of the pigment. The three largest paint producers surveyed in 1939, Sherwin Williams, Lovre Brothers and Pittsburgh Plate Glass, averaged 3.34 pounds of white lead per gallon at thgt time. This has dropped to 1.31 pounds in 1945, a decrease of 65%.^ In 1945 seven large paint producers are included in the survey. Of these~seven only one, V^&srrbttTgJ'y ether tnan Lowe HrofhST'S1 arra! 1 Sherwin Williams both bf~whom are crobabiy obligated to use white lead, is consuming white lead for 1st- quality house points" ' --------- ^11565.' PNYC0000939 To F. H. Hurless . Bate December 31, 1945 Page No. 3 Subject: TREND IN '.`/HITE HOUSE PAINT FORMULATION t' The fact that Pratt and Lambert and Pittsburgh Plate Glass, both of which are nationaTI3F'recognizea prdducer s_ of quailty~produets7- have followed the"lead'd: DuPont in eliminating'white lead is a "Signif icant 'point. ' " 1" " Technical discussion of paint formulation in open meetings is usually based on the quality of" the product to be produced. It is well todwn, however/ that competitive products such as house paints are very sensitive to costs and this factor: enjoys consideration at least equal !to;quality. Since raw materials used in the manufacture of paint are purchased by weight and sold by volume the yield value of any raw material used is exceedingly important. Table 3 which follows compares, at present market prices, cost per gallon of the most widely used pigments in house paints. ' . Table 3 ' ' ' ' Piznent Cost Per Gallon of House Paint Pigments "~ :: % of White Lead Cost Cost/lb. Wt./Gallon Cost/Gallon Weizht - - Volume BCWL BSWL Zinc Oxide Leaded Zinc 1102 Extended Ti Extender 8i 7? 7} 7 Ui 5-3/A 1 56.7 53.4 47.0 49.6 32.5 26.0 23.7 $4.68 3.37 3.41 3.47 4.71 1.49 24 100 87.8 87.8 84.3 175.7 64.7 1.0 100 82.7 72.9 74.1 100.6 31.8 0.5 These data show that white lead Is not only a costly material when purchased on a weight basis but that its cost when used in pi^sauulb such as paint tnat af5~~soia by volume is exceeded by only TiU2 wnicn has never beeft~C0TT5idered a quantity material for exterior gaintsi Extended titanium pigment and leaded zinc oxide which have rehrtaced white lead to a great extent in house paint formulation are on a volume basis, 68# and 26# respectively, lower in cost than basic carbonate white lead. , In table 4 following, the pigment cost per gallon of paints described in table 2 is given. The pigment costs for the 1939 formulations are shown at market prices in use in 1939 as well as what the same formulation would cost at 1945 market quotations. The 1945 paint costs are given only at 1945 raw material prices. Also shown are retail selling prices for this district of the 1939 and 1945 paints. . PNfC00009399 To F. H, Hurless Date December 31, 1A5 Page No. 4 Subject: TRIC'D IN '.7KITS dQOSE PAINT FORMULATION Table 4 Piemen t Cost Per Gallon 1939 Pa. ints 1945 Paints Producer A* B* Sherwin Williams Pittsburgh Plate Glass Lowe Brothers J ewel Martin. Senour DuPont ` ' Pratt and Lambert Chi-Manel Valentine .Minnesota fc.774 .671 .730 .625 - - .649 - - c .375 . 750 .319 ..701 .398 - - .^og - - 6.642 .517 .693 .735 .633 .193 534 .614 .578 ' ' - _ Retail Selling Price 1222 1242 ? ".25 3.25 3.25 3.35 3-40 - 2.95 - - - :~3.-30 3.35 3.35 3.00 3.35 '3.65 3.25 - 3.45 3.35 * A - Using 1939 uarlcet prices ** g _ using 1945 market '. _ There Is eminence aveiieble^rr.fllea^tlng thet hoth lev.- Jersey line io-r -anya-nd iSuront are pro..- ?tln"Cs:-.t eriob noise prints containing no~~>hira 1aPf I'irn* ?-rn--a-g-hn?~~rr~ff?rbom-la u p D;-s_c suiicte as derived from leaded' Zinc cuude. Le*u-iree pgl'its h>-ve In toe -.rst been designated, as fu:ie-resisti"i products snu their use .rs ''sen sore oi- less restrictor to areas adjace-nt to oil refineries -r.i otcer localities that are subject to sulfide -ssas. The inn -,c- t-^- areas hs,re been used as testing "round0 far . l-.rs of this tthe general performance to Cate has been s- tisfr.ctpry. Ihe . '-sent critical situFtion in '*-aded zinc oxide "ill undoubted!:- - or :e r.uc'n vorse if the expect--! decrease in prof. crion of basic cu.ltl.te .-.ite lead occurs. It is ou_te probable th?t tils shortage i* _ *ieid tr.e required incentive .necesss r;* co r ucceptarice of fulati-t-s of this type. As indicated in Tc. ..Is 2 of lead-free sine ootide in place of 35%- leaded zinc c:;i; e pern its a slight sav'< -s in raw material costs in s-.ite u toe > cent ; - pound differ-r 11 1 tuft not: prevails. vhetoer or not the .resent for. uibtions ns in * lorded zinc oxide ithour additl'nr.i basic carbonstv -.-..dte lead and t. ? r2d.ic":o formulations of a lead-free type tvill n-e .tore successful than 40-40-20 in vogue 25 years ago is not >n Ti. Iher is = evidence avsila'ole that indie:-tes that fitaniun is a slightly better weatherLng inert lien combined ritn reactive pi.---, ir.tc titan- zinc sulfide is. PKXC00009400 To ? H. Huriess late Dece bar 31, iQA5 Page No. 5 Subject: TEE. if 111 ' HUE HOUSE PAINT fUr.hUL-ATION Hovrever, wide use --e of these paints n$s not been long em-.>h to de termine wiaetaer or not, serious end early failure vili occur on re paint'Jobe aS::aopIied under a variety of conditions, both climatic and surface, lest-. panels'do not bring: out these failures to the ex tent,"desired nd.|r, dices the painting of test houses under controlled conditions - as practiced by CuPor.t. It; is believed that tne salesmen, both dry pigment and lead- in-oil, are in a position1 to obtain considerable information con cern ir..": tr.e future prospects of riite lead, zinc oxide and leaded Zinc oxide, ' SornulatiofiS of 1st and 2nd grade .y'.ints of large, medium cm.. srfli manufacturers v:ill undoubtedly, yield sufficient data indicating t:;&_.eenerr.i. trend of .pigment use. GHB:lb 1/7/46 cc: HOC GU E.G5 S GHB U H. EAHSCH, Paint CChheemniiast Pigment rales Laboratory PN1C00009*01 1< \ \ r>. J V. JQfll^JftiSB tMli Whit* LmI - trim Viitm, twid Fr* Zlne Oxld* H K H JH H H M H W H H H M H M M li m 5f222313133ii MMt a.i# f.M 8.4* 6.76 6.31 6.83 5.5* <. >.18 5.87 3.86 4.06 4.70 6.01 4.74 5.65 5.18 5.79 , 6.48 6.50 6.50 _ Sty <fciu HI 3.96 10.77 10.65 9.*3 8.46 8.85 7.83 7.19 6.50 6.31 6.63 6.50 6.50 8.00 6.55 7.00 7.*5 7.50 8.*5 8.*5 8.*5 *m% n.tii rum m*un 6.34 7.6* 7.34 6.*4 6.03 6.51 4.56 3.64 *.88 4.03 4.16 4.33 4.90 6.5* 4.61 5.1* 6.34 7.48 8.45 8. *5 8.*5 latrlMi fnMii .....4Mw 7.00 l:li 6.50 6.50 6.50 6.50 6.50 5.74 5.65 6.06 5.56 5.00 6.167 6.*5 6.85 6.85 7.00 7.85 7.85 7**5 mm*lattM161 Lh A frtt >m6 6.85 6.85 6.85 6.85 9.85 9.50 9.50 9.50 9.85 9.85 9.85 9.50 11.85 10.85 10.85 10.85 3/*0/45tho it -