Document M4bmZvzjwBDVdGzYRK0KJv9kL

' LIA210A3 V ANNUAL MEETING OF THE MEMBERS o f t h b LEAD INDUSTRIES ASSOC IATICil St. Louis, Missouri April 6-7, I960 The annual meeting of the neaters of the Lead Industries Asso ciation was held on Wednesday and Thursday, April 6-7, i960, at the Chase-Park Plaia Hotels, St. Louis, Missouri. Members Present Harold A. Cohn William R. Black Edvard Brennlck C. K. Conard Vincent E. Dorman A. E. Lee, Jr. David T. Steele - Jean Vuillequei William B. Clancy A. J. Phillips J. S. Ssftit, Jr. Simon D. Strauss Chas. W. Ambler, Jr. Carl H. Cotterlll Geo. L. Spencer, Jr. Carl A. Underhill, Jr, Howard L. Young Richard A. Young Rudolph 0. Erickson Thomas 1C. Graham Roland J. Lapee Frank P. Barton Julian S. Bcrs R. J. Hopkins Ralph H. Cutler, Jr. Hugh W. Halton Sidney E. Sweet W. G. Hlscock A. Y. Bethune Roger H. Cutting William G. Hewitt Harold E. Lee Barnett A. Torney ~--I. L. Barker A. L. de HmitlS R. C. Bell Harold T. Fargey E. H. Gautschl Robert Hendrick* A. D. Turnbull - A. Olaf Wolff Representing Alpha Metals, Inc. (Alpha Loy Corp.) American Metal Climax, Inc. do do do do do do American Saeltlng It Refining Co. do do do American Zinc, Lead It Smelting Co. do do do do do The Anaconda Co. do do G. A. Avril Co. Bera Si Co., Inc. Broken Hill Associated Smelters Pty., Ltd. (C. Tennant, Sons & Co. of Jf. Y., Agents) do do (Consolidated Zinc Corp. Ltd.) The Bunker Hill Co. do do do do Cerro de Pasco Corp. do Consolidated Mining It Saeltlng Co. of Canada, Ltd, do do do do do imj( u i * ; ' c i i p LI A 2104 4 Annual Meeting Minutes Henry L. Day Wray D. Fomin C. 3. Anderson 8. F. Miner C. E. Bassett W. D. Atteberry D. R. Carter W. R. Dice M. H. ZoUer K. V. Green E. R. Anderson J. A- Coateno John S. Wlntrlnghaa Morris Foodl* Harvey D. Ferer Dick Propst R. A. Gardiner, Jr. V. P. Wilke, ITI Levis S. Somers, 3rd Frank H. Hurless Herbert M. Weed D. B. Murph J. V. Murph J, Jennings W. T. Trask William J. Welch Henry J. Whitson V. J. Brazier John J. Forst William A. Oekey Jens Jensen C. Merrill Chapin, Jr. Robert F. Doelling Andrew Fletcher Charles D. Henderson William F. Hoffmann Charles R. Ince W. T. Isben Carleton C. Long R. J. Mechln John G. Wehn Jack C. Pierce L. A. Creglov Oscar A. Glaeser 0. H. LeFevre C. G. Rice ?. L. Warner Howard Novaael Reuben Vlener Robert Quenell -2- April 6-7, IS* Day Mines, Inc. do Delco-Reay Dir., General Motors Corp. do Dixie Lead Co. The Eagle-Plcher Co. do do do The Electric Storage Battery Co. Ethyl Corp. do do Federated Metals Dir., American Smelting A Refining Co. Aaron Ferer & Sons Co. do Gardiner Metal Co. Harwood Lead Products, Inc. Imperial Type Metal Co. International Smelting & Refining Co. (Anaconda Sales Co., Agents) do Murdock Lead Co. do Rational Lead Co. do do do Clin Mathieson Chemical Corp. do do Pend Oreille Mines & Metals Co. St. Joseph Lead Co. do do do do do do do do do Shattuck Denn Mining Corp. United States Smelting Refining and Mining do do do do The Victory White Metal Co. Ryman Vlener A Sons Western Lead Products Co. fc yiKvjpa/1 ;jg.','. -,miw ^i iHjijji.y ii , .ii.m,,' ' ! -/. --- . .. V /.;^y.,, .-.; -;y. - >: ' - '-M `r--^r'" *'*'' i-n.iiwwjpWMP' r-fcr LIA21045 Annual Meeting Minute# -3' April 6-7, i960 Represented by Proxy Allied Qseltlng Corp. Lead Product# Co., Inc Hew Park Mining Co. Bevnont Mining Corp. John A. Roebling's Sons Dlv., The Colorado Fuel A Iron Corp. Vulcan Lead Products Co. White Metal Rolling A Steeping Corp. Guests Jean Adamian C. H. Allen L. E. Antoniee* C. W. Ballard Richard J. Bauer Philip R. Blanc Thomas M. Bums Frank Canard Walther Caaper J. ?. Dolan Yves du Parc William R. Farrell William H. Flnkeldey E. L. Frank Jack 0. George Arthur J. Gerval* Paul Guteroan Paul V. Higglna Webster Hodge V. D. Book F. R. Jeffrey C. P. Jenney Jacques Jerusalem Lindsay F. Johnson J. J. Kelleher Roy L. Livingston Edvln W. Magee, Jr. Thocas D. Moder Ary Mossinan J. W. Patterson A. J. Payne K. E. ReInsberg H. R. Serdarevlc Morton M. Shapiro J. A. Singnaster J. V. Stafford Joe A. Stone George J. Strong, Jr. Mortimer J. Sullivan Karuo Tachibaaa Brian Wilson Clark L. Wilson Joseph Zlnsoeraan Transamine S.A. Vitallc Battery Co. Associated Metals St Minerals Corp. Hercules Fovder Co. Henning Bros. St Smith, Inc. Indussa Corp. Canadian Babaasy 0. S. Tyson St Co. Metallgesellschaft A.-Q. Qrchan Mines Soclete Generale des Mineral* Bolt Baranck and Bevman Inc. Singnaster A Breyer, Inc. Philipp Bros. Ore Carp. The British Metal Corp. (Canada) Ltd. International Minerals A Metals Corp. Metal Traders, Inc. 0. S. Tyson St Co. BatteUe Memorial Institute W. R. Grace St Co. Rational Zinc Co., Inc. Qrchan Mines Cie Royale Aaturienne des Mines The Sew Jersey Zinc Co. Hercules Powder Co. Australian Embassy F. W. Dodge Corp. The Lehman Corp. Anaconda Wire and Cable Co. Canadian Department of Mines A Technical Surveys Electrolytic Zinc Co. of Australasia Associated Metals A Minerals Corp. Mctalchemlcal Cocncrclal Corp. B. Shapiro A Co. Inc. Singnaster A Breyer, Inc. "American Metal Market" Division Lead Co. E. I. du Pont de Honours A Co. International Minerals and Metals Corp. Mitsui Mining A Smelting Co., Ltd. "Steel" Emergency Lead-Zinc Committee "Dally Metal Reporter" '<IWPK IW H li.il ui^210 ^6 \ -4 Annual Meeting Minutes -V- Aprll 6-7, i960 Government Representatives 0. W. Bilharz Harlan P. Bramble R. W. Oech&a H. Kenvorthy Thecas H. RUler C. V. Hlchole J. A. Rowland Harold J. Schroeder Donald Shorn Jack Spore Office of Minerals Mobilisation, Department of Interior Department of State U. S. Bureau of Mince do do Department of State U. S. Bureau of Mines do International Resources Staff, Department of Commerce Department of Interior Dead Industries Association Staff Robert L. Zlegfeld, Secretary-Treasurer David M. Borclna Manfred Bcvdltch Bruce Fader Edvard J. Mullarkey Sid W. Turner Homer S. Yetoan Expanded Research Program--L1A-AZI Schrode F. Radtke, Director Samuel E. Eck The minutes of the previous meeting of April 22-23, 1959 vere circulated to members after that meeting end no changes or corrections vere received. The president made the following remarks: This is the 32nd annual meeting of the Lead Industries Association. Welcome to all. Last year the Lead Industries Association and the American Zinc Institute suffered a great loss in the fatal ac cident of Mr. and Mrs. Jack Bradley. Jack was president of lead Industries Association and had been an officer of American Zinc Institute. He constantly strove for better salesmanship in the industry and vas in the forefront of the great strides which have been made in LIA's research and market development activities. He vorked unstlntingly in this regard far both lead and zinc. It is appropriate, I think, if we all stand and observe a moment of silence in honor of Jack's memory. An outstanding development for lead in 1959 was that for the first time in many years the Free World's lead production and consumption vere approximately In balance. Our estimates, which are, of course, partly conjectural, indicate that about L ! r : * i r-1" LIA21047 * Annual Meeting Minutes -5- Aprll 6-7, I960 the sane balance vlll be maintained during i960. Lead seems to be emerging free a long period of overproduction Into a situa tion -where natural increases In consumption should bring better iay3. Eovever, there are still largo stools of lead In the hands of producers here and abroad. Discipline over production and sales vlll be necessary to acccerpllsh an orderly disposal of these stocks. The Internallon.il nature of the effort to Improve the consumption of lead Is very gratifying. I would like to thank all of the centers of the Lend Industries Asso ciation here and abroad who contributed to the various funds of the Association and to the expanded research program. Quite apart fraa the value vhlch vlll be received fren the money spent for these various activities, the efforts to Improve lead consumption on an international basis have, I believe, re sulted In better understanding by all producers of the Inter national aspect of the lead buslnecs and have underscored the fact that producers of lead, wherever they may be, al1 hare cecnon problems vhlch can only be solved by a coaaon effort against the 1nroads of substitute materials and towards the greater utilization of lead. Producers and consumers all over the world are to be commended for the fine support given to these efforts which can only. In ay opinion. Improve the position of sellers end buyers alike. As most of you know, under the auspices of the United Rations, many large producers of lead outside the United States have on two occasions agreed to licit their production or ex ports of lead. Even the Russians demonstrated a degree of cooperation. Of course the Communist bloc may not have Important quantities of nonferrous metals available for export to the Vest. Uhls was touched upon In an article In the "Hcv York Tices" on Monday by M. S. Handler, who reported fraa Warsaw that Moscow Informed members of the Soviet bloc that heavy econoede ccomltments at home and outside Europe may result In fundamental revisions of Russia's trading policy toward Eastern Europe by 1965. The article Indicates clearly that the Russians nay need chiefly at home all of their Industrial raw materials ranging fraa Iron ore and petroleum to almost the entire field of nonferroua metals. Rot only the lead Industry but other Industries are thinking more and more In terms of lead. Lead has been glamor ized recently by a number of articles which touch upon the uses of lend for sound attenuation, antivibration, and the potential siarket for lead storage batteries in electric trucks and cars. I : s \ Annual Meeting Minute* 6- - Aprll 6-f, i960 During these meetings vc shall hear from representatlvea of the lead producing and consuming industries nr.d from others. I thlnic ve shall hear of the outstanding potential of lead In the battle against noise and vibration. In porcelain enamels for steel and aluminum, in glares for brick and nev structural clay products, la electronics. In nev paint plgDents, and in other nev products. Look AHEAD vith LEAD! REPOST 0? THE RESEARCH DIRECTOR The research director reported on the progress ot the various research projects and others being initiated. A copy of this report Is available upon request. REPORT 0? THE SECRETARY-TREASURER The secretary-treasurer reported to the membership on the 1959 activities and plans for i960, his report having been circulated to member* on March 28, i960. REPORT OP HOKDiATIHG COMMITTEE FOR DIRECTORS Mr. Ensaett A. Tomey, chairman of the nominating Ccralttee for Board of Directors, reported for his Committee, composed. In addition to himself, of Messrs. C. B. Anderson, D. A. Mcrson, J. C. Pierce and H. M. Weed, and placed in nomination the following slate: Julian Bers R. D. Bradford J. A. Costello W. H. H. Cranmer H. L. Day Andrev Fletcher K. W. Green F. H. Hurless Harold E. Lee J. A. Martino C. 0. Rice S. D. Strauss Jean Vuillequei William Wilke, III M. M. ZoUer Bers & Company, Inc. Federated Metals Division, American Smelting and Refining Company Ethyl Corporation Nev Park Mining Company Day Mines, Inc. St. Joseph lead Company Hie Electric Storage Battery Company International Smelting A Refining Company (Anaconda Sales Company, Agents) The Bunker Hill Company National Lead Company United States Smelting Refining & Mining Company American Smelting & Refining Company American Metal Climax, Inc. Baaaond Lead Products, Ine. The Eagle-Picher Company There being no further nominations, the slate vaa unanimously elected. i'i ' W'.i 1 . .'ymi % a LI A?10 49 V --i Annual Meeting Minute# -7* April 6-7, I960 ADDRESSES AT KEETHKJ The following talk* were delivered at the annual meeting: Storage Batteries.............. C. H. Allen, preaident. The Association of American Battery Manufacturers, Inc., and vice president, Yitallc Battery Co., Inc. Puture Automobile Power Plants and the Gasoline Market..................... John S. Wintringhaa, Ethyl Corporation Re search Laboratories (Xitlobk for Building Construction................Edwin W. Magee, Jr., associate economist, ?. V. Dodge Carp. Lead in Acoustics................Willian R. Parrell, senior consultant. Bolt Beranek and Scvn&n, Inc. Hie Outlook for Lead in the Cable Industry............ Ary Mossinan, manager of market research. Anaconda Wire ! Cable Co. The International Lead and 7.1nc Study Group.......... C. V. Nichols, special asst.. Office of the Assistant Secretary far Economic Affairs, U. S. Department of State Recent Development in World Lead and Zinc Markets..........R. Hendricks, executive vice president, The Consolidated Mining & Smelting Co. of Canada, Ltd. Style Is More Than Skin Deep.............. Peter Kyropculos, technical director. General Motors Styling, Technical Center Copies available to members interested. AjmoUKCEMEHT OF EIECTICM OF OFFICERS The election of the following officers for the ensuing year at the meeting of the Board of Directors on April 7 was announced: Jean Vuillequez, President and Chairman of the Board Joseph A. Costello Vice President Charles R. Ince Vice President Simon D. Strauss Vice President . ! W fiji Mj. iJ . J P M JM.M ill--.'fj 'f iur>i, H.l M' M WWJg'P W M n' u p i w j| i p Secretary V  i -- --;`rrmi"i`"""`f"-- -- ^^*gwgwyjjg^*ij*y^yag^' *-> * LIA21050 -r~ >'c: h -.j -at .: 1: ? rx:iurjt mia ii 5:00 r.n. ,K':ifsm, a p h i f. 6, i960 THE KCPAtmi.t) iCUE/RCli I'RCGiWi Or THE LEAD INDUSTRIES ASSOCIATION By Schrade y. Eadtke Director cf Research Lead Industries Association 60 East IPnd Street New York 17, B. Y. One year ago when we first discussed the Expanded Research Progran at our annual meeting, we mentioned the fact that cur Industrial world today is ose wherein the term "survival of the fittest" Is most apt. At that time we stated that a material . u"t remain competitive in today's world or accept ultimate extinction. Ve also stated that lead wns a modern metal and could meet the challenge of today's competitive world and remain competitive. We discussed the broad scope of our research program and uu? Svarious areas in which we were working. You no doubt want to know whether we still i'eel that we can remain competitive and whether we have met this challenge. The cr.ouer is--Yes! Ve are meeting the challenge and we are obtaining success in our research efforts. Significant progress is being made and we are forging ahead not only to retain our markets but to develop new markets for our taterlals. Considerable time is required to take a new idea from the laboratory bench to a profitable item for a company or an industry. One cannot expect results over- nlght, yet despite the time which is required under ordlnsry conditions, ve'have been uccessful in tvo particular areas In lead. Cur research on the development of new and improved methods of producing cable sheathing continuously, which was a Joint tnlure between the Lead Industries Association and the John F. Robertson Company, iins resulted in a process for continuously extruding all the known cable sheathing Qalloys at rates which are deemed economic, with physical properties at least eeuival- (Presented at the annual meeting of the I/msd Industries Association, St. Louis, !!'mc urt, April 6, i960) "" ' tlllllllljiippjl'li'ir'm.....i.......~rr ........................ Iinir " ~ " r mn i n i,i|i mi.............. i i ni L142105i ^ * fi.f.IV.WrCi: nt to those obtained by earlier production methods. Thlr, is a truly significant development end haa stimulated work in other countries to improve processes and to 0 permit the continuous production of alloy lead cable sheathing. In addition to this, through one of our fundamental research programs, an ultra low-loss dielectric ceramic has been developed vhlch has stimulated interest in a mrnber of other companies cccmerciaSy producing dielectric materials, and is another example of the fact that lei.d in u critical material In today's world. These are tvo truly significant ue.-elements. I will, of course, later on in this paper, discuss all the other research we have under way and point out to you its economic and technical signifi cance. Me should point out to you that our industry, here and abroad, !o enthusias tically supporting this program. It was not merely a fly-by-night venture which attained contributions for a single year, instead these contributions have continued In -'net, they ha.-c been significantly Increased Cur budget for If.oO has been S Increased by 50 over last year showing that cur industry believes In this Kxpcndcd Fcceercb Program end is providing the funds to continue the work end to expand itn '-'. pe. '.bile these direct contributions to our program have been increased by 50, they do not truly reflect the cooperation and the contributions of cur member campon'c.. In r-nny, many cases our companies are providing technical information, expenui vo t r.U pedal experimental camples, and high spot research to contribute to the ,'ixiu: try nr era!. These raterlals, these dollars which do not chow In cur budget, the L;mc r.i.t! effort of their technical people, have all been provided for the good of the rxlustry and to support and back up our research effort. Therefore, our research l edge tic prubc.bly Increased by a sum of 75J& over last year although the dollars do nut chef directly. X have mentioned before that I have never seen an Industry vhlch cooperates to the extent that our industry does. It Is truly remarkable and most K f gratifying to be able to tell you how extensive Is this cooperation, the sincerity u.th which the program Is supported, and the strong desire to keep our metals modern tnd progressive to meet the challenge of today's competition and technical obsolescence. LIA2105Z S.F.RADTKE :" ' ' . ^urch hno cumulated interest in laboratories In uQ I1 it- c.ufin; r.ml ubr^'.d. In fact, the interest is world-wide and in turn our infor mation is disseminated to virtually every country In the world. This exchange of information and participation again Increases the effectiveness of our research effort and our research dollars. Our Industry, In Its original objectives, agreed that, by and large, all our Information was available for the use of all to stimulate Interest and enthusiasm In lead and to Insure that the fruits of our research be utilized by all who are Interested. To date these objectives are being achieved and ve can take comfort that the information which we have developed 1# being used effectively by our cooperating Industries. To disseminate this Information, we have cade available our technical reports to Interested companies and laboratories throughout the world. We have Issued our quarterly report which describes our research in seme detail and this n quarterly report Is mailed to the four comers of the globe. As I have mentioned before, this bread dissemination of our Information has stimulated an exchange of ^formation and renewed Interest in lead. In addition, alnce our last report, our research effort haa also expanded to the four cornera of the world. We now have research under way In government laboratories, In our member company laboratories, in research organizations, and in universities. Investigations are under way In the United States, Canada, Holland, Australia, and England. We have placed our research in those organizations which we feel con contribute'most to the furtherance of our materials and where we feel an effective Job will be done for us. Where there are research projects of related Interests, Information on the various projects Is exchanged between the participating laboratories. All of this research Is screened and approved by member companies, and despite the miles which separate our member companies, the cooperation. Interest, and enthusiasm has been maintained during this past year, and we feel that precedence has been established for carrying this on In the future. -3- ; ' k si 1 LI A21053 S. RADTKE Cur research covers the entire span of Industrial requirements--from f } .jetullurglcal to chemical and to electrochemical applications. We have brokmour research Investigations dovn by the technical disciplines since each of the projects r.ny cover many markets, and therefore the technical breakdown as chemical metallur- , icnl, and electrochemical research. This has served our needs more effectively than it ve had attempted to break dovn our research needs by markets. On the other hand, ve do lr.cure that the developments from each of the technical areas are directed toward solving the needs of the various markets for vhich lead and zinc and its chemicals are employed. Furthermore this breakdown has faclllted our screening, reviewing, and steering of the research. A significant portion of our research Is directed toward conducting funda mental research to provide us with nev Ideas and new thinking about lead. Here ve have r.i> immediate ccczserclal objectives in view, although In many cases we can readily 1 i visualize that a successful progrea In any of the6e areas cay have economic signlflcance Furthermore a major portion of our research Is directed toward retaining present markets, and Impro.ing the performance of existing products to meet coicetl- ,..i,, A third i.aj^r portion cf our research monies Is concerned with finding new v.i r'.ctc and ne.- uses for our materials to expand the over-all ccnsception of lead. i: ,w set us look at the distribution of our research according to the break down discussed above. In our lead research, approximately 31.1*5, of Our research dollars Is devoted to fundamental research. 68.6 of our research dollars Is directed toward applied research. Here we have specific commercial objectives In mind to exploit our research dollars for econcsaic advantage. To look at this another way, }1.VJ of our dollars Is concerned with fundamental research as I mentioned above, c (. is directed toward retaining our present markets, to Improve Our products and * fia to natnlain their cccpctitlve position. This can also be termed defensive research (m3 o prevent the encroachment of competitive materials In our principal market areas. 0. r` u. cur research dollars Is directed toward r.ew product* to expand the uses red. y..i n' lhd. vn is quite logical. I'e feel that many of the present market .It. '1 w'JW'w-gwv- --mw b w t w -[ 111iu iw h i , muua ssjwwM V' V, ... .. i.--Av-xvii: ft.#*-*- LU2io^ S.F.RADTKB for lead will continue on their present basis and only critical areas need Investiga tion at this time. On the other hard, we are In need of new markets for lead to meet the available production capacity and the mining capabilities of our Industry. Let us now become specific and look at the research projects we have under way In each of the categories I have mentioned above. FUNDAMENTAL RESEARCH iP-8-60 - Fundamental Investigation of the Powder Metallurgy Process for Producing Lead Alloys (See Quarterly Report So. 4) LP-U-60 - A Study of Lead Base Alloys {See Quarter ly_ Report So. 4) LP-g9-60 and LP-31-60 - Surface Characteristics of Lead and Lead Metallur gical Fellowship {See Quarterly Report So. k) IP-11-60 - High Bcls3lon Lead Compounds (See Quarterly Report So. 4) LP-lfl-60 - Funda.-er.tal Study of Lead Organic Compounds (See Quarterly Report No. J*} ' IP-lU-60 and IP-21-60 - Lead Fellowship Program In Ceramics (See Quarterly Report Vo. W) RESEARCH TO RETAIN OR IMPROVE PRESENT MARKETS LR-15-59 - Continuous Extrusion Of Cable Shesthlng (See Quarterly Report No. 1*) LP-26-60 - Lead Coated Steel Can Stock (See Quarterly Report No. 4) ^-12-59, LP-lfo-59> 1^-20-59, LP-22-59 ~ Lead Fellowship Frof^an In Ceramics (See Quarterly Report No. 4) " LP-3U-60 - Development of a Primer Paint Incorporating Lead Compounds and Water Soluble Vehicles' (See Quarterly Report No. 4) lP-35-60 - A Fundamental Study of the Electrochemical Behavior of Lead In Acla Media tinder Cyclic Conditions* Despite the fact that the lead acid storage battery has been known for years 8 and has had a very successful economic and technical history, little Is known of the fundamental behavior of metallic lead when It Is subjected to cyclic conditions In acid media, that Is when It becomes an anode at one time and a cathode the next. mf w . i . w vpv m h -m h iik u i.i i uh>i ui.j iii h ^j h h u irp.iu.iy E iC r i L ; IV I LIft2l0^5 8.P.RADTKS Cooperating companies fraa the electric storage battery Industry hare felt that this would be a significant contribution to their Industry and, therefore we plan to undertake this program as a fundamental study but yet with direct economic significance This will undoubtedly be carried on In a university where It can be treated effectively as a fundamental study. ` LP-36-6O - High Speed Plating of Lead In project IP-Z6-60 discussed above concerning the production of lead- coated steel, we have considered the Investigation of many techniques for applying the lead cladding. We feel that a separate Investigation of high speed plating la warranted to provide a technique which would be competitive with the high speed tin plating lines. As we are looking for new approaches In plating technology, the study will be treated as a basic Investigation rather than as a pilot operation which the aforementioned project considers. The objective here will be to develop solutions with high throwing power 8 and laying down effective, pore-free lead coatings. We have considered placing this with a university or with a laboratory which will consider this as a fundamental Investigation. RESEARCH TO DEVELOP HEW MARKETS FOR LEAD LP-9-60 - Investigation of Metal-Fiber Reinforced Lead (See Quarterly Report Ho. k) IP-J-60 - Lead Asbestos Pads for Vibration Attenuation (See Quarterly Report Ho. 4) IP-I6-60 - Lead for Sound Attenuation In Architecture (See Quarterly Report Ho. 4) IP-10-60 - Lead Chemicals (See Quarterly Report Ho. k) LP-28-60 - Organolead Chemistry Ve soon hope to establish a program which will have both fundamental and Sapplied significance with the Quartermaster Research and Engineering laboratories In Natick, Mass, This program will be a corollary to our other research In lead chemicals r LIA21056 S.F.RADnCE Wc have mentioned '-of.-re uu.,. < . eel th-ot the entire chemical industry hold* .:io'. Jerublc promise for cur industry and thlG, therefore, is the basis for the O broad coverage we are giving this area of investigation, the products arising frcr* r.Ko research will be evaluated in the various laboratories of the Quarter-caster facility, as ve mentioned in the introduction, this is part of a planned coopern- ti.e venture in three separate* laboratories; at Arthur D. Little, T.H.O. in Holland, and the Cuartermaster laboratories. Ve feel that this program at the Quartermaster is of cpccial significance as cany of the needs of the armed services can conceivably be rev i lead chemicals, in the fora of plastic materials for radiation shielding, for ..vf.eriols with biological activity, funcidldal activity, and the like. Ve hope to initiate this program in the immediate future. To cu:xri:c this review of our Expanded Research Program, you will have noted that the major technical spheres of interest are being covered by cur research. Ovr fundamental investigations ere providing new ideas and new information for us. BCur fundamental research has already contributed new knowledge which has stimulated other commercial irr/estigetions. Ve ore carrying Cut appropriate research to see that existing markets ore maintained or at least that declines in same of these critical markets arc stepped, "e are moving ahead in new areas which will provide, we feel, new markets for cur materials. It is a dyramic program, lccd is a modern ratal and will find its use in ell conceivable areas fren missiles to aircraft to electronics, architecture, and the many ether known areas for lead applications. Ic turn, with the development of new tecknicol information, ve hope to serve our many consumers and potential using industries. All of this is being brought about through the wonderful cooperation and support of our member companies. Their dollars alone would be ineffective if it weren't for their enthusiastic support and their close participation. By our working together ve hope to serve 'ndustry in general as well as ourselves through research. i t >g5"i*ws;i^SSi"P(W|W LIA21057 LEAD INDUSTRIES ASSOCIATION 0 KAT *Nft STRUT NCW YORK 17, H. Y. ASWJ.U. HgfflT or TH8 SECRET *.R*f - TREASURER FCR TEE YEAH 1959 Since thl report marks the end of another decade. It seeris appro priate, before reviewing our ovn recent activities, to take a searching lock into the past to see vhat has been happening to our Industry. Many people have said that lead Is passe, that It Is an old metal losing ground In our modem technology, that the lead industry has not kept abreast of modern developments and has been less than vigorous In protecting and de veloping markets. X think that such vlevo are not supported by the facts. Figure 1 charts the per capita eonavmptlcn of lead In the United States In pounds since 1920. It con be seen that, despite the rugged peaks end valleys that occur over this LO-yeor span, the trend has been generally mildly upward. In fact, the average per capita consumption In the 1950-59 decade vas lL.07 lb as compared vith 13.69 lb In the equally prosperous 1920-29 decade, a modest Increase. The disturbing factor Is that peak per capita consumption vas reached In 1950 at 16A lb and the trend has been generally dovnvard in the last ten years. Also the peak per capita consumption for the four decades covered vas In the I9LO-L9 era at lL.80 lb. Tet there seem to be logical explanations for this, such as abnormal consumption during the var and postv et plpe-fllllng years and the Korean conflict. CVer the forty-year period, lead lost a big part of three major markets--vhlte lead for paint, lead foil for cigarette packaging and lend sheathing for telephone cable. In at least partial compensation for these losses, a vhole nev market vas found In tetraethyl lead; and other markets, such as lead oxides, calking lead and solder. Increased. The vhlte lead market started Its decline In the twenties at almost the sane tine that the compensating TEL market began to develop. Foil re ceived Its crushing blcv aa a result of wartime restrictions fren vhlch, for economic reasons, It has never recovered. The loss of the cable sheathing market has been largely a development of the last decade, stimulated by temporary shortages. In my opinion there is no reason vhy these last two losses vlll not eventually be compensated for by nev developments Just as EX compensated for the loos of vhlte lead. In fact, you can see this beginning to happen vith such uses as nuclear radiation shielding, sound and vibration at tenuating materials, plastic stabilisers, nev pigments, and others. This, of course, can be accelerated by Industry action. l tWWVT**1* UIf 111MP4 I.', . N 227.02 tI -2 Anuual Report for 1959 y Thli bring* b * to the other criticism* raised, la icy opinion, un fairly, To find nev markets for an old material 1* Mich different fret* finding them for a nav material. Unexplored area* axa not so great and, even vfcen an Important nov market 1* found, It may simply replace an old one that has become obaolete for technological or economic reasons. However, our industry has long recognised Its needs. It vn five years ago, vben per capita consumption of lead vaa at the respectable level of lU.7 lb, that our technical steering cccnitteo vas established to guide a program of technical development to expand lead markets. Since then, outside experts have studied our research needs end other experts cur needs in certain market areas. Tvo years ago our Expanded Research Program vas launched. Simultaneously our Industry Development Program vas greatly enlarged. Ho one can say that the lead industry is not aware of what It has to do to assure a prosperous future or has been ix or penny-pinching In establishing a constructive program. For n of this the loyal sup port of the membership and the foresight arm courage of the officers and directors are to be commended. Tcu have Just heard a detailed report of our Expanded Research Pro gram. I'll nov try to give you a broad view of our other activities. I will not dwell on such routine but Important activities as statistic*. Information Bulletins, liaison with the many technical societies and government agencies, since they have been going on for year* and are continuing. Ve have also continued our promotional effort* in certain specific areas such as paints, ceramics and construction. But, in addition, ve have taken strides in a nev direction. To tie in with expended research, ve have attempted to make industry take a different attitude towards lead and to Interest engineers In taking a new look at the solution of their many problems. 2j so doing ve hope that favorable results caning out of our research will get widespread attention throughout industry, that others will do applied research with lead in the development of their products, and that thus ve will help to create new markets. At the same time we are continuing to foster the expansion of older markets. Oar thinking is exemplified by the nev slogan ve are now using, "Look Ahead with Lead." We want people to realise that lead has Just as important a place in modem technology aa ha* the newest plastic or metal on the market. That la why we often emphasize scoe glamorous nev use of lead even though ve know it may never amount to a hill of beans tonnagevise. We have further expanded cur ability to give technical service to industry in the application of lead to solve its problem*. Another engineer has been added to our staff to supplement this work. i t v t l i. l F. LIA21059 j *3- Annual Report for 1959 We hare started a new advertising campaign In two leading design magazines--"Materials In Design Engineering" and "Product Engineering"-- vlth a combined circulation of ever 70,000 people. These eda are delgned to emphasize the variety of lead's properties end the variety of Jobs it Is efficiently performing for Industry today. In the same vein, we exhibited last year for the first time at the Design Engineering Shew end were favorably impressed by the interest shown by design engineers, particularly In soce of the never developments In lead. We are building up our mailing list vlth the addition of many design engineers and are planning new direct nail literature of Interest to them. All In all, In 1959, through our direct mall and space advertising and publicity, well over 3,500,000 individual messages about lead were delivered to Industry. As an Illustration, let me cite one specific field of application-- the use of lead In the fora of lead-asbestos pads to prevent the trans mission of vibration, an application which we believe could eventually consume upwards of 50,000 tons of lead a year. Ve have not as yet gens all cart In the promotion of this use because, as you have heard, ve have a research project in progress to develop a lot of unknown but badlyneeded engineering data. However, ve have featured such pads used in the foundations of the Union Carbide Building In tvo ads In "Engineering Sevs-Record," In an article In "Lead," and In several publicity stories which have been successfully placed. Similar pads were used In s new way on another New fork skyscraper--In this case to Isolate the vibra tion of a rooftop air conditioning cooling tower. This has been pub11 died In "Lead" and featured in tvo more ads la "Engineering SevsRecord" with a circulation of over 80,000. Both applications have also been featured in the two design magazines mentioned a few minutes ago. We also Issued a four-page brochure on the current usage cf these pads In buildings and circulated It to acoe 18,000 architects and engineers. And we have Just received approval of the engineers who designed these pads Into the air conditioning equipment to prepare an article for placement in engineering magazines which they will by-llne. They are 60 pleased with the first Installation that they have again specified the pads for another new office building at 43rd Street and Third Avenue, Hew York. All this has resulted In literally hundreds of inquiries on thie// one subject, not Just from the -building Industry but from almost any Industry you can name. Industry Is plagued vlth noise and vibration problems, ftir engineers are personally following up many of these In quiries and are -working vlth such organizations as IEM, Minnesota Mining and Manufacturing, Permacel, Cordo Chemical, Bar-Ray, U. S. Plywood, Carrier Corptoratlon, the Mare Island and Hew York Haval Shipyards, Rational Association of Heme Builders Research Institute and several architects and engineering firms. If and when our research develop* more of the technical answers we need, we will really be In a position to crack down on this use of lead. < --- - *. -> * .|i 'jip g ig r A .wi i w uh m i -iu ip .i i , i m n LI21060 -V- Annual Report for 1959 ( j " cite the foregoing in detail merely to give you an example of I \ our modus operandl. This procedure can and doe* apply to other uses. Bow, before auKonrlting our 1S5? activitiea briefly, I vant to stress cane other iEpcrttnt phase of our activities. That la our health and safety work. I can not overemphasize it* Jjzportac. The toxicity of lead pose* a problem that other ncnferrou* Industrie* generally do not have to face. Lead poisoning, or the threat of it, hurts our business in several different voys. While it is difficult to count exactly in dollars snd cents, it is taking mccey out of your pockets every day. In the first place, it means thousands of items of unfavorable publicity every year. This is particularly true since most cases of lead poisoning today are in children, and anything sad that happens to s child is meat for newspaper editors and is gobbled up by the public. It makes no difference that it is essentially a problem of slums, a public welfare problem. Just the same the publicity hits us where It hurts. Secondly, it means that we are often subjected to unnecessarily onerous regulations, either in the use of our product or in its labeling. This may mean either an added expense in labeling or in control equipment in ycur or your customers' plants. It may even mean that your product won't be used at all because your potential customer doesn't vant tbs problems that the use of lead may involve. What are ve doing about all this? We are working closely with governmental health authorities, childhood poisoning centers, tbs medical profession, and organizations like the American Standards Association, the Paint, Varnish and Lacquer Association and the Manu facturing Chemists Association to prevent enactment of unfair and onerous legislation and regulations. In fact we were largely respon sible for the increase of one-third in the maximum permissible concentra tion of lead dust and fume* that became effective a couple of years ago. We make every effort to convince Industry of the safety of using lead if properly handled. We attempt to correct unfavorable publicity. You cay recall that last year I told you of a popular TV program based on lead poisoning in a young boy, derived in an impossible way, and our effort* to have the film withdrawn. At that time our negotiations had not been concluded. I an pleased to report that that incident h*d a happy ending. The producer completely changed the sound track to make no reference to lead. There is a lav suit now pending in Milwaukee in which an apartment building tenant is suing the owner for $00,000 damages for alleged lead poisoning from water passing through the building's lead service pipe. Success of a suit like this could veil mean the end of lead services not only in Milwaukee, but in Chicago and many another city, amounting to thousands of tons of lead a year. We are working closely with the defense and, although the case does not come to trial for sane months, our latest Information is most encouraging. b >! s o u g h t u isw n ipu^ i i p iu w ; I yW LIA21061 -5- Annual Report for 1959 There it sound reston to believe, but there are Insufficient fact* available to prove, that soma lead compounds are core toxic than other*, yet public authorities place the sere limitation* on all lead ccapound*. Thus today ve believe that unnecessary restrictions on the use of lead chromate colors in paints and cn lead silicates in porcelain enamel* sire holding back the use of thousands of tons of lead a year. In ouch the sane vay medical authorities in the autcootive industry are opposing the use of certain lead paints that could also ceaa several thousand tons of lead a year. I an of the firm opinion that, although the cost nay be high, ve must enter into a medical research program to develop the facts on the relative and absolute toxicity of various lead compound*. I feel that thi* perhaps should be a continuing program to develop the ane information about nev lead compounds aa they are developed and mericeta are found for then. In fact a proposal for such a study 1* being presented to your Board of Directors today. I hope you will agree with me that our health and safety activities are not Just an altruietio public service. They can also mean Just as much in dollars and cents to you as any market or product development or research pregraa can. Hov, to suasarlze: ADVEgTISHW 1. "lead * This cjuarterly magazine, containing an overage of six articles per issue, vas nailed four times during the year to a list of over 50,000 name*, resulting in scxae 1,200,000 individual message* on varlou* uses of lead. 2. "Soldering Manual." This 170-page book, prepared by our Solder Ccedttee and published by the American Welding Society, came off the pres* and copies vere distributed to members at reduced cost. 3. Antivlbratlon Pads. A four-page brochure, "Current Practice in Isolating Buildings from Vibration vitb Lead-Asbestos Pads," vas prepared, printed and distributed to 18,000 architects, engineers and others in the construction industry. k. Lead Hygiene Conference Proceedings. These proceedings of the Hygiene Conference sponsored by LIA late in 1958 vere published In full in "Industrial Medicine and Surgery," with a circulation of about 10,000 industrial physicians. It vas later reprinted by LIA In an 82-p>age book for distribution by the Association. 5. "Red Lend Technical Letter Wo, 14." Havy approval of thi* letter, vhlch deals vlth a nev red lead primer for ships, tested in cooperation vlth the Kavy, vas received and it vas printed and circulated to about 10,000 people interested in anticorrosive paints. 6. Supplements to "Lead in the Ceramic Industries," Tvo nev sup plements, one tvo-pege and one eight-page, vere printed and distributed to all vho had previously received the book. In addition the book itself vas reprinted as the original supply of 6,500 copies vas depleted. LIA21062 -6- Annual Report for 1959 7 Storage Rettery Brochure. A 'brochure promoting the usa of leulacid battery powered Industrial trucks as compared vith gasoline powered trucks was prepared. Since the first of this year, 10,000 copies have been printed for cor distribution, but so favorable has been its recep tion by industrial battery manufacturers that these companies have ordered Bore than 35,COO additional copies printed and distributed at their expense 8. Architectural Flyer. A four-page flyer describing the sheet lead gutter linings on a nev building at Duke ttdverslty was printed and dis tributed to about 18,000 architects and builder*. 9. Space Advertising. The following advertialng schedule ran lest year in trade and technical publications: Publication Pages Circulation Subject Materials In Design En gineering Product Engineering Engin1e* ering Kemvs-Rmecord 6 7 6j Marine Engineering/Log 6 Eulletln of American Ceramic Society 6 Ceramic Industry 6 Ceramic Age 6 Ceramic Revs 3 Brick A ClayRecord 6 Metal Product Manufacturing 6 31,000 1:2,000 81,000 61,000 16,000 8,000 6,000 8,000 4.000 5.000 15,000 Properties and uses m mm Metallic lead for construction Red lead primers Lead ceramics of all kinds Lead glares for clay products Leaded porcelain enamel* Oir space advertising this year vill result in a gross circulation of 212,000 and an individual message total of almost 2,000,000. 10. Advertising Inquiries. The Association processed sane 5,000 inquiries of all kinds in 1959 as a result of all forms of advertising, but the important thing is the quality rather than the quantity of these inquiries. Practically every important company and governmental agency is represented by top engineering personnel, as veil as most of the architectural and engineering firms vbo do the largest volume of business. 11. Exhibits. LIA exhibited at four Important national trade shows In 1959 with combined attendance of between 75,000 and 100,000 industry people. They were the Design Engineering Show in Philadelphia, the Chemical Show in Hew York, the Home Builders Show in Chicago, and the Plumbing Contractors Show in Miami. 12 Sweet18 Catalogg. We again had two four-page catalogs la Sweet's Architectural File and In Sweet's Light Construction File. They covered sheet metal work for buildings and lead plumbing. Combined cir culation Is over 40,000. I 8;U5^f' LIA 2106 3 -7- Annual Report for 1959 , PUBLICITY 13- General. General articles on lead, its uses and properties vera prepared and published in "Industrial and Engineering Chemistry," Lykes Bros. Steamship Company's house organ, Kew York purchasing Agents' "Re view," and "American Metal Market's" special lead-zinc issue. The first, the annual review of technical developments in "Lead and Lead Alloys," was reprinted in a quantity of 5000 for cur own distribution and ve are advised that it is also being reprinted in England. The Purchasing Agents' "F.cviev" article was reprinted for use in replying to school and general inquiries. 1** Ceramics. Two articles on. lead in ceramics were prepared and published la "Ceramic Industry." Another, based cn research sponsored by us at Rutge -g, appeared in the "Journal" of the American Ceramic Society and vaa reprinted by LIA. A Japanese paper on lead in ceramics vas translated and reproduced for our own United distribution. 15. Chemical Construction. A paper on "Lead-Acid Brick Construc tion, " previously presented by us before the Rational Association of Corrosion Engineers, appeared in "Corrosion" and was reprinted. Our own "Specifications for Lead Chemical Drainage Systems" were reprinted in "Air Conditioning, Heating & Ventilating" and "Actual Specifying En gineer," and our article on lead constructed scrubbers appeared in "Chemical Processing." LIA reprinted an article cn lead-lined wooden tanks from "Chemical Engineering" for its own distribution. 16. Paints. Articles on lead paints were prepared and appeared In "Encyclopedia Americana," "American City," "Mass Transportation" and "Maintenance." The report presented at the 1959 Annual Meeting on "Rev Developments in Lead Paint Technology" appeared in full in "American Paint Journal." 17. Architectural. Our article on lead as a concrete joint filler was reprinted by the Portland Cement Association for their distribution. A chapter on lead was prepared for a new book, "Materials for Architecture," being published by Rclr.hold Publishing Company. 18. MlsceUaneous. An article cm nonsacrificial lead anodes vas reprinted free "Corrosion" for our distribution. A chapter on lead coatings vas prepared for the "Encyclopedia of Engineering Materials and Processes." An article on lead shielding for portable atomic reactors was prepared and accepted by "Materials in Design Engineering" but has not yet appeared. A paper on new usee for lead powder vas presented before the annual meeting of the Metal Powder Industries Federation and later was printed in the "Proceedings" of that meeting. A chapter on solder vas prepared for the American Welding Society "Welding Handbook" and another for s book, "Modern Materials," to be published by the Academic Press. [ it -, VWP"L'V ! LIA21064 -8- Annual Report for 1959 MISCELLANEOUS 19- Information Bulletin. Eight bulletins vere circulated to mem bers to bring to their attention nev deveiopcients and Interesting article* about lead that they eight not otherwise have seen. gp. Annual Reviews. Annual review articles on lead vere prepared for "Engineering and Hiring Journal," "Steel," "Industrial and Engineer ing Chemistry," and the "Year Book" of the American Bureau of Metal Statistics. 21. Addresses. Addresses on lead vere delivered before the Colorado Mining Association and graduate student* of the Kevark College of En gineering. gg. Annual Meeting. A successful annual meeting vaa held In Chicago In April, one session as usual being held Jointly vith the American Zinc Institute. 23. Statistics. Monthly statistics covering sales of pig lead in the United States by primary producers, physical shipments of pig lead, manufacturers1 stocks of pig lead, shipments of vhite lend, red lead, litharge, 60lder, bearing metals, antlnonlal lead products, type metal, extruded products, rolled products, and miscellaneous metal product*, and nine production of lead vere circulated to member*. 2k. Meetings. Meetings of ether organizations in vhich IZA staff participated included AIMS, American Mining Congress, American Society for Metals, American Society for Testing Materials, American Ceramic Society, Porcelain Enamel Institute, Structural Clay Products Institute, the Signal Corps Battery Conference, Association of American Battery Manufacturers, Rational Association of Corrosion Engineers, American Nuclear Society, American Industrial Hygiene Association, American public Health Association, Industrial hygiene Foundation, and American Medical Association. 25- Committees. Staff members are serving on many committees that have to do with lead, including the American Standards Association, national Association of Corrosion Engineers on nonsacrlficlal anodes, ASTM on lead for radiation shielding, American Welding Society on Bolderlng and brazing, American Industrial Hygiene Association, Rational Safety Council and Philadelphia Health Department. 26. X-Ray Shielding. LIA prepared a vallboard panel half covered vith sheet lead and presented it to the Nev York City Health Department to be used to demonstrate the effectiveness of lead X-ray shielding in the Department' drive for more and better shielding in doctor*' and dentists' office*. 27- lead Plumbing Connections. Because of the growing popularity of wall-hung water closets for residences, LIA designed a nev fixture for the use of lead connections in such instances. Several manufacturer* have adopted the nev design principles, which opens this market to lead since previous designs vere for other pipe material*. [ Jp*'t*ijr*** r\'f^.'^itf'- r^Hr*- LU2 1C65 -9- Annual Report for 1959 28. Yellov Traffic I'-ark 1 ng Paint. LIA started a drive for the use of yellov paint, particularly for tip--striping highways, because the yellcv paint is based on lead chromate, and white contains no lead. It Is too early to knov vhat progress can be made. 29- lead Anodes. Information vaa gathered on several actual inatallatluns of nonaacrlflclal lead anodes for corrosion protection for later use in advertising and publicity. 30. Plumbers' Apprentice Contest. LIA supplied a Judge of lead work at the annual national plumbers ` apprenticeship contest at Purdue University. It also awarded Csvenaect Savings Bonds to the three best lead workers and supplied an instructor to give the plumbing teacher* a refresher course in hov to teach lead work. 31. "Lead Work for Modern Plumbing." Searly 900 copiea of thia textbook were sold during 1959- This bock will now go into its fourth printing, with 11,000 copies having been distributed and the entire coat recovered by the Association. 32. Ceramic Luncheon. LIA sponsored a luncheon during the arimial meeting of the American Ccr&nlc Society. Guests were the heads of ceramic departments of colleges at which LIA is supporting research fellowships. The purpose was an exchange of views on ceramic research and development* between the college personnel, our Ceramics Technical Cccmittee and LIA research and technical service personnel. 33- Paint Test A new test program was started by the Pigment* Technical Cmzmittee on anticorrosive primers in sea water and fresh water. 31*. Sheet Lead Flashing. G1 request of the architects, specifica tions were prepared for sheet lead flashing on a new state office build ing in Indianapolis. The lead has since been installed. HEALTH AJD SAFETT 35- Air Quality Standards. At the request of the California Stats Department of Health, ve are coc-perating with them in a project looking to the establishment of standards of "ambient air quality" for a wide range of potentially toxic materials, including leed. 36. Welding Lead-Painted Steel. A* a result of somewhat similar work done elsewhere, we have reopened discussions with staff members of the Harvard School of Public Health relative to the possibility of sheaf ing that the hazard involved in welding lead-painted steel is substan tially less than had been thought. 37. IV. Our efforts to have an erroneous TV program, written around an impossible case of lead poisoning in a young boy, withdrawn were successfully concluded vhen the producer revised the entire sound track to remove any reference to lead. i : LI A2 1 066 ! -10- Annual Report for 1959 I 38. Lead In Automobile Exhaust Gases. Periodically In recent year* ve have bad. to combat the contention that lead emanating fraa the tall i pipes of motor vehicles constitutes a ceric0 to the public health in j urban areas. That cur part In this effort has been in aorae degree pro ductive seen* Indicated by the fact that. In a recent articlo on air pollution by motor exhaust gases, published by the American Medical Asso ciation, no mention vhataoever Is cade of lead. 39- legislation. The 1959 state legislative sessions terminated with a number of bills, dealing costly vith vanning labeling, in reason ably satisfactory status. These Included bills in California, Illinois, Indiana, Montana, Nev Jersey end Washington. ' 1*0, Childhood Lead Poisoning Because of Its "'aalfieeticoa and ioportonce. It is Impossible to do Justice to the problem of childhood lead poisoning in a single paragraph. Both In the breeding of adverse publicity, vlth Its Inevitable ill effects on sales, end as a source cf all but in soluble problems, it continues to be o-ur major "headache" in the health and safety field. Suffice It to say that ve are In constant touch vlth all Industrial, clinical, pediatric, toxicological, technical and govern mental agencies known to be usefully Interested, that all nev approaches of any promise are followed up, and that the entailed consumption of tine end effort must In all probability continue until our older cities are rid of the slums and the Ignorance vhich are Its parent*. i START Ul. Staff Work. The staff vas enlarged during 1959 and nev totals 17. A chemical engineer vlth extensive technical vrltlng and editing experience vas added, as veil as tvo secretaries. This vas necessitated by the en larged volume of promotional and technical service vork. During the year David M. Borclna, assistant to the secretary, became the fourth employee and the second man on the staff" vlth 25 or more years' service vlth LXA. In addition to vork previously outlined, the staff rendered personal ser vice in the field in such areas as semi conductors, anodes, pleroelcctrics, porcelain enamels, paints (particularly for hlghvay structures and markers), pearlescent pigments, radiation shielding, chemical construction, plumbing and sheet metal vork, sound and vibration attenuation and other*. i V2. Headquarters. In closing, nay I call your attention to the fact that about May 1 ve vlll move to larger and more adequate quarters at 292 Madison Avenue, only about a half block froo our present location. We hope you vlll visit us. Respectfully submitted. Secretary i E L IA 21067 i 4 -i'1 .'*!*** ^ '**wry*'"3* l U 2106^ j MEMBERS OF THE LEAD E.DU3TRIE3 ASSOCIATION April i960 Allied Sslelting Corp. Alpha Metals, Inc. American fetal Climax, Inc. American Smelting & Refining Co. American nine. Lead & Smelting Co. The Anaconda Co. The 0. A. Avril Co., Lead Products Div. 5116 V. Lincoln Ave. Milwaukee l4. Wls. Box 34, Bergen Station Jersey City 4, H.J. 1270 Ave. of the Americas Rev York 20, H.Y. 120 Broadway Rev York 5, !f.Y. Paul Brown Eldg. St. Louis 1, Mo. 25 Broedvay Sew York 4, R.Y. Lsngdon Fara Rd. & Seymour Ave. Cincinnati 12, Ohio Bers & Co., Inc. Broken Hill Associated Shelters Proprietary Ltd. Broken Hill South, Ltd. The Bunker Hill Co. Ashland & Levis Sts. Collins House Box 19LC, GPO 660 Market St. Philadelphia 24, Pa. Melbourne Cl,Aust. Melbourne, Australia San Francisco 4, Cal. Cambridge Smelting Co. Cerro de Pasco Sales Corp. Circle Wire & Cable Co. The Consolidated Mining and Smelting Co. of Canada, Ltd. Consolidated Smelting Corp. 100 Pacific St. 300 Park Ave. 5500 Maspeth Ave. Box 1030 Place d'Armes V700 E. Devada Cambridge, Mass. 5ev York 22, H.T. Maspeth, L.I..H.Y. Montreal 1, Canada Detroit 3k, Mich. Day Mines, Inc. Delco-Remy Div., General Motors Corp. Dickson Weatherproof Hall Co. 2401 Columbus Ave Box 590 Wallace, Idaho Anderson, Hid. Evanston k, HI. lha Esgle-Picher Co. The Edlcw Lead Co. The Electric Storage Battery Co. Ethyl Corp. Evans Lead Div., Rational Lead Co American Bldj P.0. Box 193 Box 8109 100 Park Ave Box 1467 Cincinnati 1, Chlo Columbus l6, Chlo Philadelphia 1, Pa. Kew York 17, H.Y. Charleston 25, W.Va. Federated Metals Div., American Snelting & Refining Co. Aaron Ferer and Sons Co. Ths Firestone Tire & Rubber Co. Ths Flesra Lead Co., Inc. 120 Broadway 101-19 S. 8th St. Box F, Firestone He. 52-01 - 31st PI. Rev York 5, H.T. Cfcaha 8, Heb. Akron 17, Ohio Long Island City 1, h .y . Gardiner Metal Co. Olaeer Lead Co., Inc. Goldsmith Bros. Div. of Rational Lead Co. 4820 S. Campbell Ave 31 wyckoff Ave. Ill H. Wabaeh Ave. Chicago 32, m. Brooklyn 27, H.T. Chicago 2, 111. Hammond Lead Products, Inc. HecLa Mining Co. 5231 Hobson Ave. Hammond, Ind. Wallace, Idaho Imperial Type Metal Co. International Smelting h Refining Co (Anaconda Sales Co., Agents) 3400 Aramingo Ave 25 Broadway Philadelphia 3^> Pa. Rev York 4, R.Y. Ajiocitt Member . : l L 21069 -2- Aprll, i960 Knapp Will, Inc. Lead Products Co. Inc. Lucky Friday Silver-Lead Hines Co. John R. MacGregor Lead Co. Metalead Products Corp. Murdock Lead Co. Rational Lead Co. Hew Park Mining Co. Kevnont Mining Corp. North Broken Hill, Ltd. Olin Mathieson Chemical Corp. Pend Oreille Mines It Metals Co. Phelps Dodge Copper Products Corp. Price Battery Corp. Revere Copper It Brass Inc., Foil Dlv. River Smelting & Refining Co. Rochester Lead Works, Inc. John A. Roehllng's Sons Dlv., The Colorado Fuel U Iren Corp. St. Joseph Lead Co. Shattuck Penn Mining Corp. Societe Minlere et Ketallurgique de Penarroya Sunshine Mining Co. United States Smelting Refining and Mining Co. The Victory White Ketal Co. Eymaa Viener Si Sons Vulcan Lead Products Co. Western Lead Products Co. White Metal Rolling h Stamping Corp. The Zinc Corp. Ltd. 23-15 Borden Ave. Long Island City 1, H.Y Box 1341 Houston 1, Texas Wallace, Idaho 4520 W. 15 St. 2901 Park Blvd. Box 5298 Chicago 23, 111. Palo Alto, Cal. Dallas 2, Tex. 111 Broadway 300 Park Ave. Box 1903R, CPO New York 6, II.T. Kcetley, Utah Hew York 22, H.Y. Melbourne, Australia Eaat Alton, HI. Old Natl. Ek. Bldg. 300 Park Ave. Spokane 8, Wash. New York 22, H. Y. Hamburg, Pa. 196 Diamond St. Box 5755 330 Exchange St. Brooklyn 22, H.Y. Cleveland 1, CSilo Rochester 8, H.Y. 640 S. Broad St. Trenton 2, H.J. 250 Park Ave. 120 Broadway New York 17, H.Y. New York 5, H.Y. 12 Place Vendome Paris 1, France West 300 Mission Ave. Spokane 1, Wash. 62 William St. 6l00 Roland Ave. 5300 Hatcher St. 1545 W. Pierce St. P.0. Box 2291 00 Moultrie St. Box 384D, GPO New York 5, H.Y. Cleveland 27, Ohio Richmond 5, Va. Milwaukee 4, Wls. City of Industry, Cal. Brooklyn 22, H.Y. Melbourne, Australia Associate Member '.,,vw1,1 - '"tv*.irgwvjivr'rae!' uv"'> :ei,~ .1.. u. ' "W HASKINS a SF.LLS 'J CC^TtriCO *OnUC ACCOUNTANT* TWO BROADWAY NEW YOHK4 r^v^ch 9, 1`j 0 ACCOUNTANTS1 OPINION ^riCTfiii . i - I, |i m i mu r -..^j Lead Industries Association: We have examined the balance sheet of Lead Industries Association as of December 31, 1959 and the related state ment of income, expenses, and reserves and supplemental schedules for the year then ended. Our examination was made in accordance with generally accepted auditing stand ards, and accordingly included such testa of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the accompanying balance sheet and statement of Income, expenses, and reserves and supple mental schedules present fairly the financial position of the Association at December 31, 1959 and the results of its operations for the year then ended, in conformity with gen erally accepted accounting principles applied on a basis consistent with that of the preceding year. % i ! ' r- V TJ!jQJipj..L-Jf-*-- ---> - ;**?,** >-**&&** ****V*'a - .* ***~?+ie**.-*PZ2i`* L IA21Q7! rH:'* r, ;;'ii: ?i, 1959 A 3 3 K_J 3 CASH: Pension F\md savings bank deposits................... Other (including savings bank deposits, $`*1,818.60).................................................................... $122,805.09 206,591.43 Total cash................................................... $329,796.52 ACCOUNTS RECEIVABLE.......................................................................................... 860.83 ADVANCES FOR TRAVEL EXPENSES.................................................................... 2,175.00 AIR TRAVEL DEPOSIT............................................................................................ 425.00 TOTAL........................................ $333,257.35 LIABILITIES AND RESERVES ACCOUNTS PAYABLE................................................................................................. $ 6,016.00 RESERVES: Employees Retirement and Pension Plan Fund............................................. Ordinary Fund................................................. Health and Safety Fund............................................... Industry Development Fund........................................ Expanded Research Program........................................ $122,805.09 51,342.70 16,775.24 43,429.70 92,888.62 Total reserves........................................... 327,241.35 TOTAL........................................ $333,257 .35 NOTES: (1) The cost of furniture, fixtures and equipment has been written off to expense. (2) The employees retirement and pension plan fund reserve is based on an actuarial report and covers both past service and current C03ts. 1LAD INDUSTRIES ASSOCIATION S' -AT)y.yrT OF JN;lOW, EXPE.'SESi AND RESERVES Kbi Ti-iF YiO-.R ENDED DECEMBER 31, 1959 TOTAL ORDINARY FUND "HEALTH AND LAFLTf LUND INILSTRY DiVELon<Er;T FUND EMPLOYERS RETIHJLLNT AND PENSION PLAN r-JND INCOME: Membership assessments........................... ................. $568,193.00 Transfers between funds........................... ............... Interest on savings bank deposits................. 5,320.30 Miscellaneous (including sales of publications)............................................................ 1,174.98 Total income...................................... 574,663 .28 EXPENSES: Salaries anu payroll taxes.................................... 156,529.84 Rent and light............................................................... IS,177.29 Office supplies and services............................ Travel................................................................................. 5,193.77 35,813.00 Association dues..............,,............. .......................... .. 1,147.25 Entertainment and luncheons.................................. 2,821.86 Meetings (net of fees $2,065.00)....................... 3,955.06 Telephone and telegraph........................................... 3,107.11 Bools and subscriptions........................................... 1,113.61 Group life Insurance................................................. 1,118.30 ; Printing - net............................................................... 404.79 Mailing.......................................................................... .... 4,322 .73 Teat program................................................................... 1,054.79 Legal, accounting and consultation fees.... 2,055.00 Pension plan contributions.................................... 2,350.00 Conventions and exhibits......................................... 12,529.55 Furniture and fixtures............................................. 3,521.47 Proceedings of hygiene conference.................... Miscellaneous......... ........................ ........................ Cost of publications, not (see Schedule A). 3,155.77 9,7SS.09 41,326.59 Advertising and publicity (see Schedule B). 53,486.77 Research projects (see Schedule C).................. 129,495.15 Expenses - net.................................. EXCE33 OF INCOME (EXPENSES) FOR THE YEAR......... RESERVES, JANUARY 1, 1959........................................... 4SS , 4 J4 . 19 85,253.49 241,987.86 RESERVES, r.r.C'ClRER 31, 1959.................................... ?32Ii2_4_l,_35 ( ) Denotes red figure. $91,673.00 (33,279.12) 625.41 317.53 59,536.82 26,088.26 8,570.25 2,497.45 5,630.63 120.00 846.15 2,484.63 1,308.26 173.33 1,078.46 404.79 2,114.17 2,021.10 2,670.91 56,008.39 3,528.43 47,814.27 $51.342.70 $24,250.00 530.42 24,780.42 16,890.31 463.01 2,360.06 201.00 395.23 270.42 241.58 365.73 175.00 3,155.77 2,489.34 27,007.45 (2,22 7.03) 19,002.27 $16,775.24 $191,941.00 857.45 192,798.45 86,815.78 5,000.00 20,320.89 707.00 1,580.48 1,200.01 643.40 426.92 1,613.39 1,054.79 1,230.00 12,529.55 4,443.72 41,326.59 53,486.77 232,379.29 (39,560.84) 83,010.54 $ 43.429.70 NOTE: Administrative expenditures In the Expanded Research Program are paid to American Zinc Institute, which handles the accounting for the program. $ 9,029.12 3,964.47 12,993.59 12,993.59 109,611.50 $122,605.09 EXPANDED RffEARCH PhOGFAH (note} $284,579.00 284,579.00 26,735.49 1,607.04 2,233.31 /.'T .42 119.25 913.87 147.63 ^9.04 595.17 650.00 2,350.00 1,500.37 151.12 129,495.15 174,039.66 110,539.34 (17,650.72) $ 92,863.62 <*? LIA21073 1 i ii LEAD INDUSTRIE! Ac vatM 1 r--ni..': . 'TON SUFPIEMENTAL 3CHEUULE3 FOR TEE YEAH ENTTD DEOPh-FR 31, 1953 COST 0? FUEL!CATIONS, NET 3CKEDUI.S A "Lead*1.............................................................................................................. "Lead, in the Ceramic Industries" supplement (including $3,300.00 provided for in 1953)............................................... Red Load technical letters................................................................ Sweet' a Catalog................................................. ,................................ Flyer - American Artisan.................................................................... Flyer - Anti-Vibration Folder........................................................ Flyer - Industrial Batteries........................................................... Soldering Manual....................................................................................... Reprints.......................................................... .............................................. TOTAL ADVERTISING AND PUBLICITY $ 19,159.56 8,003.42 1,287.52 6.318.00 523.21 780.83 2.500.00 428.99 2,320,06 $ 41,326.59 SCHEDULE B Advertising space: Product design........................................______ _ Construction............................................ ...... Pigments..................................... ............................. Ceramics................................................... Total................... .' Advertising production........................................ Publicity...................................................................... TOTAL RESEARCH PROJECTS $ 7,992.75 4,841.25 11,264.83 10,649.50 34,768.33 9,876.93 8,841.51 $ 53,486.77 SCHEDULE C Cable sheathing - John Robertson........................................................... $ 9,426.84 Heat emlsslvlty - Hew York University............................................... 8,200.00 Lead alloys - Armour................................................................................. 19,086.54 Powder metallurgy - Rensselaer............................................................... 3,120.89 Ceramics................................ ................................................. .................... 27,100.00 Reinforced lead - Armour............................................................................. 20,000.00 Lead chemicals - A. D. Little...................................................... ........... 34,289.21 Lead - cemented materials - Battelle................................................. 243.04 Vibration attenuation - Lessells k Assoc........................................ 7,219.88 Sound attenuation - Bolt Beranek k Newman-.................................... 724.54 Miscellaneous research................................... h................... ...................... .................. 84 .21 TOTAL........................................ $129,495.15 ! * \ i> r. : , LI A 2107 4 LEAD INDUSTRIES ASSOCIATION i ] to EAST 42n d STREET i NEW YORK 17, N. Y. \i STORAGE BATTERIES - TSAR i960 C. Herbert Allen Vice-President, Vitalic Battery Company and Allied Battery Co,, Dallas, Texas President, Association of American Battery Manufacturers, Incorporated I hope rcy estimates of lead consumption by the U. 3. battery lnud3try will be of some benefit to you. I assure you I*ve given the subject much study in an effort to make cy report as accurate as possible, I have read copies of several previous reports given to you by past Presidents of the Association of American Battery Manufacturers, and I can appreciate how they felt about the responsibil ity of forecasting lead requirements for the entire battery industry. There are several factors which are producing a change In lead requirement* by the battery manufacturing industry. These changes, in some cases, cannot be accurately forecast. First and perhaps of greatest importance at the present time is the fact that some manufacturers of very popular automobiles changed over to a 12 volt system on some of their 1953 nodels. By 1956 practically all American automobiles being narwfactured were equipped with 12 volt systems. Present day twelve volt batter ies use more lead than do six volt batteries. It should be remembered, however, that many of the 6 volt batteries now being sold are for older model cars, and the average person who buys a battery for an older model car does not spend as much for quality as does the average buyer of a replacement battery for a newer model car. Now that many of the 12 volt batteries being purchased are for re placement purposes in automobiles that are three or four years old, there has been a drop in the lead content of the average 12 volt replacement battery. Lead for 12 volt Compact car batteries is averaging rather close to the lead used in average 6 volt batteries. Present indications are that 12 volt batteries will last longer than 6 volt batteries. It is certain that performance and reliability have been improved. These observations are based not only on reports received from dealers, but also on a etut^r made of average battery age at the tine replacements are found necessary. There was some thinking at first that 12 volt batteries would not last as long as 6 volt batteries, but I believe experience is now proving otherwise. Corrective measures have been taken to eliminate the early problems that existed. Auto mobile electrical systems, le., voltage regulator, hold-dons, etc., have been designed to assure better maintenance-free service, even under adverse operation conditions. .. Presented at tha 32nd Annual Meeting, Lead Industrie* Aasoclatlon, St. Loula, Mo,, April 6-0, I960 't ?----y N 227.03 MfiiTOgwr .*1 LIA21075 Ur. C. Herbert Allen -2- Storage Batteries - Tear I960 5 ) Second -- Statistics show that all batteries, even six volt types, are now u lasting longer than they were five to ten years ago. This Increase in battery life can be attributed to better manufacturing methods, and also to the avail ability of better raw materials than were available ten or even five years ago. The reduction in antimony used in battery grid metal helped improve battery lift considerably. Where several years ago the antimony content was 9% up to 12% by weight of the grid metal, the percentage now generally used it 7 1/2% or lower. This change greatly improved the charge retaining characteristics of a lead acid storage battery. Corrosion resistance has also been improved by not only the re duction in the amount of antimony used, but by the use of other constituents la the grid metal and also through changes made in casting the grid metal. The reduction in antimony used in batteriea has, I understand, created son* problems with smelters where battery scrap is recovered. Many scrapped batteries being put through smelting operations have grid metal composed of 9 to 12% anti mony. With most battery manufacturers buying a lower antimonlal lead grid metal, the antimony recovered from the smelting of old batteries piles up because more is being removed from the scrap than is being purchased by battery manufacturer*. In a few Instances smelters offered lead having a higher antimony content than was specified at prices applicable to the lower specified antimony content. They perhaps felt the higher antimony would be welcomed by battery manufacturers be cause of better casting qualities, and since it appeared to be taking on the aspects of a "white elephant", soma were willing to dispose of the recovered antimony at the price of lead. That, of course, would have defeated the purpose for which the antimony content was reduced. The reduction made in antimony used in grid metal was not the result of an economy move. Actually batteries made with Ij l/2% antimonlal lead alloys cost mors than do batteries cade using say -- 9% antimonlal lead alloys. The slower rate of casting lower antimonlal lead grids results in a higher labor cost, which more than offsets the slight decrease in the cost per pound of the alloy. There is also a slight increase in the resulting weight of the grids when lower anti monlal lead alloys are used. The accumulation of high antimony dross by some smelters will undoubtedly be eliminated in the near future, if the situation ha not already levelled off, when the bulk of the batteries being scrapped contain lower antimonial lead grid metal. The lower antimony content affects the value of Junk batteries as you well know. Third} it has been possible to reduce the quantity of lead used in batteries because of newly designed machinery which casts lighter weight grids. Ten year* ago the use of lighter weight grids meant that grid corrosion during battery service would result in reduced battery life. Now the more corrosion-resistant grid metal and improved manufacturing processes have resulted in increased battery life. Competition is beooming keener every day and economy measures must, of necessity, be taken in every manner possible. A fourth factor also will have a bearing on the amount of lead used in the future per average battery. Development work currently in progress has as its objective the obtaining of more complete utilization of the lead oxide active r \ j` LIA 21076 i Ur. C. Herbert Allen -3- Storage Batteries - lew I960 material used in storage batteries. Present development work is still in the laboratory stage. A reduction of 3 or 1^ of lead content nay becone possible. This is being mentioned here as a factor which should perhaps receive considera tion four or five years from now. A fifth change in average lead content per battery that could occur, but we hope will not, is influenced largely by economic conditions. At the present time approximately 20% of replacement batteries being sold are in the lowest price category. Approximately 10% of replacement battery sales are in the med ium price category. The remaining 10? of batteries being sold for replacement purposes are in the "Premium" or highest price category. Percentage of sales In these three arbitrary price ranges has, in the past, and can in the future, change very quickly and appreciably if the National Economy changes. Popular replace* oent batteries in the lower price ranges at the present time have a lead content averaging from Xh to 16 pounds each. Popular replacement batteries in the medium price range have a lead oontent averaging frea 18 to 20 pounds each. Replacement batteries in the higher price range have a lead content averaging 20 to 2u pounds each. It can readily be seen that a change in the buying habits of the public can greatly influence the amount of lead used by battery manufacturers. A battery, say with 30% less lead in it, does not result in a 30% lower cost. Other parts, such as containers, covers, labor, acid cartons, etc., cost approxlmately the same regardless of how much lead is Inside, Therefore, making a cheap, low lead content battery does not reduce costs in proportion to the loss in quality. Bear in mind we are talking now about batteries that are cheapened by simply using less materials than is considered good practice, even with the better high quality raw materials now available. Incidentally, lead processing companies deserve a great deal of credit for the Improved battery quality existing today. lore uniform, higher quality lead metal and oxide can be depended upon. Research and development work performed in the laboratories of our lead suppliers ha3 been of prime importance to much of the progress made. In order to arrive at the quantity of lead estimated for the battery Industry, I first projected total motor vehicle registration for the year I960. That was determined by adding to 1959 total registration the average gain per year during the preceeding four years. (Ref. Table l) Total registration 1959 Total registration 1956 1* year difference ................ 70,Uj 6,000 ................ 6St103>OOO ................li ) 5,263,600 Average Increase / year. .... 1,315,600 Adding that average yearly Increase to the 1959 total registration gives In round figures 71*762,000. As a result of a poll of a number of manufacturers of automotive equipment, it was estimated that 6,950,000 r.ew vehicles would be manufactured in I960. That figure was added to the 1959 registration. In order to balance out at 71*762,000 j > i * mU IW'J |Jtu.xwm .................. ' iml11I IPP,w fWf LIA?1077 \ Ur. C, Herbert XIlea -4- Storage Betterlea - Tear I960 total, It became neceesary to aasume that 5,63li,000 vehicle* would be scrapped In I960. In order to estimate vehicles with 12 volt batteries, I simply added together the vehicles manufactured with 12 volt systems starting with the year 1953. That was the year when passenger automobiles first started using 12 volt batteries. It was assumed that scrappage of vehicles manufactured since 1953 was insignifi cant and would not appreciably affect the calculated foreoast. Automobile production in the U. 3. for i960 was estimated on basis of estimat ed new vehicle registration plus export estimate minus import estimate -- (6,950 4 300 - 500 - 6,750,000) It was assumed that vehicles to be exported in I960 would not change appreci ably from the quantity exported each of the previous three years. I estimated there would be a drop in the number of vehicles imported because U. 3. manufacturers are now making "compact* cars which should depress foreign car sales. By reforring to Table 1, you will notice that it was assumed a new battery would be required for each vehicle estimated to be manufactured in I960. Replacement battery production in I960 was calculated by using a factor obtained after reviewing vehicle registrations and vehicle mileage relationships with replacement battery shipments during the previous 7 years. (See Table H) The relationship that remained most constant or showed less variation with re placement battery shipments was that relationship to total vehicle regietratlon. The average during the previous 7 years was L0% with the highest and lowest per centages being L2 and 37 respectively. On that basis I estimated there will be 28.701.000 replacement batteries produced in I960 ( 71,762,000 x .hO * 28,701,000). It is recognised that such a relationship is not readily explained but the fact remains there is a closer or narrower band of deviation when replacement battery shipments are compared with total vehicle registration. Batteries to be exported were estimated by averaging the opinions expressed by a number of large and medium sized battery manufacturers. The result, 221,000, Is approximately the same ss was exported each of the previous two years. Approximately l&% of replacement battery shipments for I960 will be of 12 volt types according to the composite of opinions expressed by the manufacturers polled. Therefore, I have estimated that h5% of 28,701,000 or 12,900,000 twelve volt batteries will be produced for replacement jxirposes in I960. Since all U. 3. vehicles now have 12 volt systems, the total estimated 12 volt batteries will be 12,900,000 plus the 0. E. batteries for estimated vehicle production of 6,750,000 or 19,650,000 12 volt batteries. The balance of 16.022.000 will be 6 volt batteries for automotive replacement purposes. f r : A2107 8 UI iiil'itn ltrfriiin lru i in mmin'i " i f I'lM' iirTihr'i ini mi iii"rf< `1 lM > iiiiln in 'n iiif) rir f f t i ttrfrV i filmnlI iiti ii nr ` Mr. C. Herba-t Alien 5- Storage Eatteries - Tear I960 Although a number of factors which have an effect on the amount of lead used by the battery industry were pointed out at ths beginning of my report, I think that 12 volt batteries now in use will have the most significant effect on battery lead consumption this year. In order to determine the quantities of lead used In average 6 volt and 12 volt batteries, a survey was made of lead recovered from several thousand ecrap batteries of popular sizes from different manufacturers. Great variations were found to exist. If original equipment 12 volt batteries were compared with average 6 volt replacement batteries, the difference In lead content was not the same as when 12 volt replacement batteries were compared with 6 volt replacement batteries. There were also differences encountered between batteries of different manufacturers, then 6 volt and 12 volt batteries having similar adjustment poli cies were compared, the lead content ras different than when making comparisons by weighting then by types in proportion to sales flow. Other methods of determining lead content were also studied. The results obtained were as follows i- (All based on 1959 measurements) Rounds Lead per Battery E~V3Ti ----- -12 Volt Assay X popular group 1 & 2lt sizes 16.3 18.3 Assay X popular types with comparable adjustment policies, freighted by sales flow 16.2 19.3 Assay T popular group 1 & 21* 3 sixes 16.6 20.7 Assay T popular types with comparable adjustment policies, Weighted by sales flew 17.0 ZL.6 Miscellaneous manufacturers tear down, new popular types 17.9 22.1 60% of U. S. production per K. fr. Green in Daily lietal Reporter" of 1/15/60 19.0 21.0 i 6)103.0 6)123.0 A.erage of above observation* 17.2 2o. 5~ I tested the validity of the above lead weights per battery by applying then to batteries produced during the past 5 years. (See Table III follow!/^) -ud_. LrA2l079 Ur. C. Hrbart Allen Storage Batteries - tear i960 Table III Testing 6 Volt and l2" Volt cattery Lead 'Telghte Eatlasted i960 1959 1958 1957 1956 1955 Total Auto Batts. 12V Auto * 6V Auto 35,9u7,000 311,72^,000 30,890,000 33,709,000 32,573,000 35,778,000 19.650.000 15,8oti,000 12,1,60,000 13,183,000 7,395,000 1,133,000 16.297.000 16,920,000 18,1,30,000 20,521,000 25,178,000 31,61,5,000 12V >220.5 lbsoclCDO 6V <0.7.2 lbs.xl000 Total lbs. x 1000 Total Cal. Tons 2,03,000 280,000 683,000 3U,500 322,,000 325,000 62,9,000 32i,,500 255,000 317,000 572,000 286,000 270,000 353,000 623,000 311,500 152,000 2,33,000 585,000 292,500 82,800 5U,,000 626,800 313,2,00 Tons used In Auto. Batts. (Table X-) 32.2, COO 326,COO 285,000 323,000 329, COO 32,6,000 Tha above tabulation shows that particularly during the years 1958 and 1959 the 12 volt and 6 volt lead weights obtained for resolving estimated lead usage give calcu lated results very close to actual lead used, then looking at calculated results as compared with actual lead used for years 1957, 1956 and 1955 greater difference gpv exists. That is possibly caused by the fact that prior to 1958 both six volt, and f f particularly 12 volt batteries, contained core lead than 1s currently being used in I average batteries. It is felt that these averages are representative of 6 volt and 12 volt batteries currently being manufactured throughout the united States. Original equipment 12 volt types cay contain more lead than these averages Indicate but that possibility was considered when selecting samples for lead weight deter minations. Kow the previously cade calculations and estimates can be resolved In terns of estimated lead that will be consumed by the battery industry during the year I960. Estimated lead required by the battery industry in I960 was calculated by using the averages of the weights observed as followsi LIA 2108 Mr. C, Herbert Allen -6- Storage Batteries - Tear I960 Table IT Estimated lead for Storage Batteries In I960 (See Table I end Table II) Batteries Lbs. each lb ns 12 Volt Batteries 55? 6 Volt Batteries 1*5? 19.771.000 16.176.000 a 20.5 e 17.2 202,500 = 139,000 Total automotive and tractor Batteries 35,91*7,000 a 19.0 31*1,500 Lead required for industrial batteries 1*0,000 Grand Total Lead required for Battery Industry 381,500 A review of netal and oxide used during the past 5 years (Table 1) shows metal has averaged 51.3?, oxide lead 13.7? of total lead. I have, therefore, projected those percentages for I960 thus! 381,500 x 51.3? 381,500 x 18.7? = 196,000 Tons Ant. Lead = 186,000 Tons Oxide Lead The above quantity of lead, 381,500 tons forecast for use in battery nanufacturing compares with 381,111* tons reported used in preliminary Bureau of Hines re port for 1959. Iou will notice this is an increase of approximately 6? as cosy- pared with an estimated battery production increase of approximately 1*?. The greater number of 12 volt batteries in use will, I believe, account for a greater lead usage increase than the increase in vehicle registration would indicate this year. Tou nay be interested in the lead used for O. 3. "compact* car batteries. At the present time indications are that such batteries will contain 15 to 16 lbs. of lead each. That is somewhat less than the lead weight in the average 6 volt batteries now being sold. An article in the American Metal Market for March 2l, I960 estimated that compact cars are taking about 22% of industry sales. If that prediction holds for all of I960, lead usage by the battery industry will be effected noticeably in 1962 and following years. According to the latest information I have (Automotive Hows) as of January I960, there are 1,1*22,163 foreign cars in operation in the U. S, Batteries for these care use approximately the same quantity of lead as 0. S. compact cars. Therefore, both U, S. and foreign compact cars will have a tendency to lower the lead content per average battery. Finally a word about my calculated forecast and the composite opinion of cross section of the country's battery manufacturers and suppliers. I will not take your time reviewing the figures in Table I of my report. 1 will simply say that ny calculated total battery production forecast lies within one percent of the composite opinion given by battery manufacturers and merchandisers. * S \ LI A 21081 Mr. C. Herbert Allen -7- Storage Batteries - Tear I960 The composite opinion on lead usage by the battery Industry Is, however* approximately 6% lees than ny calculated forecast* le,* 360,000 tons Instead of my estimated 382,000 tons, I received a great many more opinions on battery production for I960 than on lead usage. I am, therefore* going to let my cal culated quantity of 382,000 tons stand as my forecast. Remember that a test of the lead averages determined by actually weighing or assaying was very close to the quantity of lead used by the battery Industry as reported by the United States Bureau of Hines. Perhaps actual usage in I960 will fall between 360,000 and 382,000 tons. If it does, I don't think anyone would find too much cause for criticism* In closing, I want to express my thanks and appreciation for the helpful suggestions and opinions I received from other members of the Association of American Battery Manufacturers. Their marketing experts and analysts were coop erative beyond expectations. ^-1- "1 1V'1'"!I g'ysj : t ; : ' u >^?8S^V i L 1 * 2 10 8 ? LEAD INDUSTRIES ASSOCIATION 60 CAST 42*0 STRSKT NEW YORK 17, H. V. FUTURE AL'TOI/OriVE POT??.PUNTS John 3. Lttntrlnghan Ethyl Corporation Research and Development Department Detroit, Michigan The last decade hroug^rt a substantial number of powerplants before the public eye, 3cr.e of these were described as being ready to replace the re ciprocating gasoline engine In passenger cars. The group Includes! 1. Gas turbine 2. Free-plston engine 3. Battery power U. Fuel cell 5. Stirling engine 6, NSU (or Curtlss-ffright) engine As we begin a new decade. It night be well to examine the potentialities of these powerplants In automobiles. If new powerplants are to be used In automobiles, they cuat compete with the familiar Gtto-cycle gasoline engine that has powered cars for so many years. Conventional gasoline engines are compact, powerful, and economical. Methods have been perfected to make then In large numbers at low cost. Gaso line engines have a high degree of flexibility In operation. When conditions require a change In speed or load, the engine responds Instantly when we bo y s the accelerator pedal. Gasoline engines have another kind of flexibility. Their a lie can be varied over a wide range "to fit best the operating requirements. Their effi ciency Is substantially Independent of their size. As engine size is reduced, the ability of a given vehicle to accelerate and to climb hills drops off, but fuel economy Increases. In order to replace gasoline engines In eutonoblles, alternate powerplants should be competitive with respect to size, weight, power, flexibility, economy, manufacturing cost, and general convenience. Presented at the 32nd Annual Meeting, lead Industries Association St. Louis, Mo., April 6-8, 1969 ^ibshsw sp m&wii-y* `*y. "-""H r F 3 4 N 227.04 m '"'........ '`"WWWS1"*5^' LIA21083 John 3. Wlntrlnghao -2- Future Automotive Powerplanta and the Clasollne Market OAS TURBINE Figure 1 shows an autonotlve gas turbine. Part of the unit produoe* hot gases under pressure, and these gases drive a turbine geared to the car wheels. The gas-producing section consists of a centrifugal air conpressor, a combustion chamber, and a turbine wheel which drives only the compressor. This unit has to be cranked up to about 15,000 rpa by a starting d o tor before enough hot gases are available to keep the conpressor going. Above that speed, feeding core fuel Into the eoebustion chamber provides nore hot gases to turn the compressor and power turbines. At full power, a typical unit will have compressor speed of 50,000 rpo, A gas turbine's rate of acceleration Is diarply United by the temperature It* parts can stand. If fuel Is added too fast, that temperature cay be ex ceeded. Because the naxinun allowable temperature also Units the efficiency of a gas turbine, use of special, high-cost alloys appears unavoidable. And to be even reasonably efficient, a gas turbine oust have a regenerator to trans fer heat fron the exhaust gases to the conpressed air. Although turbines are Inherently ainple, they require a long tine to crank, they accelerate slowly, and they are costly If we try to nake then effi cient. It la possible to calculate the fuel economy of a turbine-equipped autonoblle with a high degree of accuracy. To be conservative, we ssaign effi ciencies to the turbine components that are higher than would be likely in mass-produced unite* Figure 2 shows how important an efficient regenerator la to the car'* fuel economy. If the regenerator la designed to be only 70f efficient. Instead of 90%, fuel economy at U0 nilea per hour dropa fron jo nlles per gallon to 12-1/2. Figure 3 shows how fuel economy of a gas turbine car varies with size of the turbine. Here, the high regenerator efficiency of 9of has been assmed. At liO nlles per hour, a lOC-horsepower unit givea 20 nilea per gallon, but a 3Cf-horsepower unit gives only 1U. FREE-PI3T0N >3J0INE Figure h shows e free-piston engine. The unit produces hot gases at nod erate pressure, and these gaaea are used to drive a power turbine geared to the ear wheels. Hot gases forned by diesel conbustion of fuel in the power cylinder forca the pistons outward, compressing air in the bounce cylinders at each end. The pressure built up in the bounce cylinders io great enough to return the pistons to Inner dead center. In the engine shown here, conbustion gases exit as the ii i.i..iubpwph.p i *rppii!pw!| -- f 2108' ' lU John 3, hintringhan -3- Fijture Autonotive Powerplants and the Oasoline Market right piston uncovers exhaust ports during Its outward travel. Next, air en ters as the left piston uncovers Intake ports. Some of the Intake air flows through the cylinder and out the exhaust ports before the pistons bounce back to cover theae porta. This air Joins the combustion gases to drive the power turbine, Free-platon engines are heavy, nolay, and relatively expensive. They are hard to start In cold weather. The fuel economy of an automobile equipped with a free-platon engine can be calculated. However, the computations are nuch nore tlne-consunlng than those for the gas turbine. Here again, we assune high efficiencies for the components, in order to be conservative. Figure 5 shows ths fuel econony of a car equipped with three sizes of eo- glno. If ths free-piston engine Is designed to produce 100 horsepower, the fuel econony at liO nlles per hour is 23 nlles per gallon, frith 300-horsepower unit, however, fuel econony at LO r.ph la only 12 nlles per gallon. It Is very interesting to conpare the fuel econony of the gas turbine or the free-plston engine with that of the gasoline engine. Such a conparison is nade In Figure 6. oil three units have the sane power output, 200 horsepower. The relative fuel economies would be the sane at any other power level. The gasoline engine Is substantially nore oconoalcal In the nornal operat ing range. The advantage Is so large that the gasoline engine can use a fuel which costs nore, and still deliver core nlles per fuel dollar, BATTFHT POSER Considerable performance data have been released on one typical contemp orary battery-powered car. Its range before recharging Is about 80 nlles on level ground, and about 50 nlles over hilly ground. The ear costa *2,800, and has 6.li horsepower. In contrast to this low power Is the 36 horsepower of ths German Volkswagen. The limited driving range and the tine required for re charging cake battery-powered cars undesirable as a family's naln car. Theas factors and the high cost also would seen to licit their appeal ss a second car. FUEL CELLS Figure 7 shows a typical fuel cell. A chemical fuel and an oxidizer r*act In the cell, without burning, to forn electricity. This Is the reverse of electrolysis. Conversion of energy Into power can be as high as 65Jf, as com pared with liO> or so in internsl-conbustlon engines. In the cell shown here, hydrogen is Introduced through ons porous elec trode, and oxygeD through the other. Their reaction, which forma water, pro duce* current that is used to power eleotrie motors. i Tf.-i LtA.ZlC>eA, ___ . .__ ws John 3, Wlntringham -4*-- Future Autonotire Jbwerplant* end the Gasoline Market Hydrogen-oxygen cells can operate at normal stcospherlo tenparatures. Calls using hydrocarbon fuala and air normally operate at about 900F, This operating temperature can be reduced by using catalyst#, Allis-Chalmers recently introduced a fuel-coil fana traotor, The 20* horsepower fuel cell weighed 1,900 pounds. On thle basis, a 200 horsepower fuel cell would weigh 19,000 pounds, I i i Much nora favorable volume and weight dats have cone from other sourest, Tabls 1 shows tbs Dost favorable pii>llshed volume date, end Table 2 the Dost favorable weight date. Table 1 Volisaa Comparison Fowerplent Fuel Cell! Cell Electric Motor Cubic Feet/Borsepower 1.0 0.1 i Total ia Gasoline Engine Transmission 0.25 Even In thle Dost favorable comparison, the fuel cell occupies about four tines as ouch rood as does the gasoline powerplant. ; Table 2 Powerplant Fuel Cells Cell Electric Motor Total height Comparison Pounds/Ho rsepowar 8.3 5.0 13.3 Gasoline Engine * Transmission 3.0 Again, in ths cost favorable comparison, the fuel cell weighs about four times as much as ths gasoline powerplant* These comparisons d not lnoluda the substantial Sulk of the container* for fuel and oxidlier. T**Trw*',9h IJ 11j ,11 * \rrv* if vw.pv i.! t- u-wi yS.jt'.eyHg.ijWliWWryU '*:,x I - **&"* **** - *>* L1A21085 i John 5, Wlntringhea -5- Future Automotive Powerplants ar.d the Oasollne Market STIRLDO DO IMS ! S Figure 8 shows one arrangement of a Stirling "hot-air* engine. This ex ternal combustion engine w3 Invented in 1816 by a Scottish minister. Jiather Inefficient versions were used during the last century to punp water* Heat applied to the head of the Stirling engine's cylinder causes air or gas Inside to expand at constant temperature, pushing down the power piston oa the left. The sir then oovos through the rogsr.-.-re'ccr as the rtispCacecont pis ton on tha right noves down. Heat is stereo. in the regenerator, and the air corrtraots. The jir volume is further redded by cooling at constant tenpereture, as the right hand cylinder is water cooled. To complete the cycle, ths air picka up heat la tha regenerator. Within the past two decades, Philips In Eolland ar.d Oeneral Uotore have redesigned tha engine to produce high efftniency. ifcwever, the engine la ex pensive, Ifcreover, it is very difficult to change the power output rapidly. For equal power outputs, the Stirling engine requires two or three tines ss ,-.i? much radiator surface as does a gasoline engine. For theae reasons, the Stirling engine is not attractive as an automotive powerplant. It will probably find use in central power stations. K5P ('Turtles-'fright) EH3PTC Curtiss-iTright recently acquired 0.3. rights to this gasoline engine. Is shown In Figure 9, there are only two novijjg parts -- a triangular rotor end the .* crankshaft. As the rotor turns inside the housing, a fuel-air charge is drawn in through a fixed port, compressed, and then ignited when It passes the spark plug. The expanding comb istlcn gases push the rotor around until they exit through the exhaust port. Some part of this sequence is going on at all tines in each of the three chambere forced by tha rotor's sides end the housing. Thus the engine's opera tion is virtually continuous intake, compression, expansion, and exhaust. Oper ating speeds are high) small units are reported to have turned 17,000 rpo. The NStJ engine poses very difficult sealing and lubrication problems, Sons qualified American engineers belleva theae problems are insurmountable when high power output is desired* rHESEL ENODfiS Although diesel engines have been used for trucks and other heavy-duty service for many years, uhere has recently been an upeurge of Interest In the use of dietelt for passenger cure. For a given power output-, diesel engines are larger, heavier, and core expensive thin gasoline engines. They have to be about one-third larger, be cause they need more air to burn a given amount of fuel. Their greater weight [ HVfUffw 5 LIA210P6 V ni ! u John 3, Wintrlnghaa -6- Future Automotive Powerplants and the Gasoline liarket tans both from tholr larger els* and tha heavier construction needed to withstand tha higher operating pressures. Diesels ar* also leas responsive than gasoline engines. In the case of tha diesel-powered taxicabs now being tested In various parts of tha country, the extra cost of the angina requires about ?50O0 miles of use to amortize. Disadvantages that must bs accepted Include poor ac cal eratlon, noise, and hard starting In cold weather. THE rOTDRB Weighing tha advantages and disadvantages of these various powerplants. It does not appear that any alternate powerplant Is likely to replace the con ventional gasoline engine in passenger oars. What then Is going to take placet It appears that the publlo la booooing Interested in better fuel econony in teres of Doro alles per dollar. This trend will develop as no re and nor a imported and compact cars join our passenger car population. It also may affect tha site of engines la the full-alae cars, and the weight and dimensions of these oars. Table 3 Is an estimate of the D. 3. car population In the next five years. It the end of 1959. care In use totaled 56-1/2 million. Of these. Imported oars numbered l.L million, and D. S. compacts 1.0 million. Thus, at the end of 1959. our car population contained U.21 of small cars. At the end of 196b, It la estimated that cars In use will total 71 J million, of which 3.9 million will be Imports, and 7.8 million compacts. Small cars then will claim 16.h% of the car population. Tahla 3 Passenger Car Population^ (milIlona) Tear Imports Hfx Compacts hO. J Pall-Si*# HoT I Total >0. 195? l.U 2.b 1.0 1.8 5U.1 95.8 56.5 I960 1.9 3.1 2.b iul 55.3 92.8 59.6 1961 2.b 3.8 3.5 5.7 56.2 90.5 62 J. 1962 2.9 lull lu? 7.6 57.3 88.0 65 J. 1963 3.U U.9 6.5 9.5 58.6 8I1.6 68.5 1961 3.9 5.5 7.6 10.? 59.7 83.6 71 ,U (1) This estimate Is designed to be In substantial agreement with predic tions of the U. S. Bureau of Publlo Roads* i f i * | f | 1 ff.WUWWM!J1H|mI'jMHPI LI A 210 e7 John 3. Wintrlcghea fi -7- Future Automotive fbwerplante and the Gasoline Uarket J Despite the growing percentage ot small cars, there will be more full- al*e oars la 1961* than there were In 1959. The Increase In number of full-al*e ! care la about 10%, Added to this are 11.7 nillica email cars predicted in 196!*. This growing car population will demand more end Dore gasoline. An es timate of the future trend in total motor gasoline demand is shown in Table It. The flguree include gasoline consumed in trucks, tractors, boats, and other usee. About 65% of motor gasoline la used in oars. Table It Hotor Gasoline Demand Tear Billions of Gallon* 195? 1961* 57.0 67.1 BP 17.7% Based on this estimate, notor gasoline demand will increase nearly 18% in the next fire years, from 57 billion gallons in 1959 to 67 billion in 196!*. We expect that use of tetraethyllead in motor gasoline will increase. The average concentration of TEL in motor gasoline in 196!* will be greater than was the case in 1959. This Is so because tetraethyllead is usually cheaper than refinery processing for raising gasoline octane numbere. Thus the output of tetraethyllead will increase at a rate faster than the gain in gasoline nee* We will be buying more and more lead. if <WMiii*! r I tW iIttite im i '.y.'a.eswsMS. a i >w..lei.uiwpM ,'"i i *.-< -`ms t a . 1 . \ v: e^STj' zioeB tU f <*'--- CC3 ij w ; ? ! ty-<i -. ?.*upwmn " **- -fl POWER OUTPUT SHAFT ! pwr^m gi "r:ii --c'i-U'S LIA21089 MILES PER GALLON igure l 20 40 60 80 MILES PER HOUR 100 Effect of Regenerator Efficiency on the Fuel Economy of a 100-Horsepower Gas Turbine GALLON Figure 3 Effect of Size on Gaa-Turbine Fuel Economy . 1 _wjm / l CC3 LI ^ 1090 LIA21091 Figure 5 Effect of Si*e on the Fuel Economy of a Free-Piton Engine 24 20 MILES PER 16 GALLON 12 8 0 20 40 60 80 100 MILES PER HOUR Figure 6 Fuel-Economy ComparisonUf 200-Horsepower Gas Turbine, Frec-Piston, and Gasoline Engine# ,w.. W,||i.s.1^w|.jnywugaw^a. fvw1!1 iiLyy%ji.ww *u;n 'yiv*j^,s.*wsM5wyyiP -isr^i. ,' >- >?*, ' -'. ..> v . c- ; i'. - -' . & &*?;-*"r.- '1 FUEL f POROUS ELECTRODES OXIDIZER rryT ELECTROLYTE REACTION PRODUCTS Figure 7 Schematic of Typical Fuel Cell m9 Vmymn.p0mgi.nl uifr2193 f;psSPfW| irijT^V'f'iKfcHiMfcS'a^iimnrftff^ I- > iilrfTh-n-'M:'^'fT-*T<*rysL^:g<ii4>i^'*-^rafc<^sar ^.-Hr.---r-g.-Jii-^fc-yM I r- i ' y<"^2 . ** " '' - * r _tf*, ^.:- ,. -V'' ,' ^ ' v t, - ^" - ' " .; LEAD INDUSTRIES ASSOCIATION 0 CAST 42n d STHCCT NCW YORK 17. H. T. TEE OUTLOCK TOR LEAD DT THg CABLE XSDUaTRf Ary Mossiaan Manager of Market Research Anaconda VI re and Cable Caspany - ; In preparing this talk on the outlook for lead aa a cable sheathing material, I quite naturally first examined vhat earlier speakers had said about the subject. those of you vho recall the earlier discussions of this subject vlll undoubtedly agree the outlook has been far from rosy. In 1951i for example, a cable manufacturer cautioned "the only reason for using lead Is to obtain a moisture Impervious sheath. If any other material were available vhlch vas Impervious to moisture and could be applied to cables, the use of lead vould be drastically reduced." He also cautioned that "not so long ago lead vas.the only material considered suitable for a cable sheath. Hilt condition no longer exists and, unless the producers shov greater Interest in technical develop ment of lead sheaths, the use of lead for cable sheathe is due for a steady decline, Irrespective of price or supply." In 1951 the vire and cable Industry applied 137*000 tens of lead as sheathing. In 1953 another cable manufacturer prophesied that aluminum vould completely displace lead as a cable sheathing material. In tvo years he suggested lead vlll gradually lose out completely to aluminum In telephone cable. And a substantial percentage of European power cable vlll be sheathed with aluminum. In America the change, he predicted, vould ccoe more slowly. In 19^3 cable sheathing consumed 152,000 tons of lead. In 195? * leader and prime authority In the field of cable research development and manufacture noted that the development of rubber Jackets during the previous twenty years had been responsible for a decrease la > the use of lead for lov voltage power cable sheaths. And during these fame twenty years, the development of pipe type cable systems bad resulted in reductions of lead for extra high voltage cable*. Presented at the 32ud Annual Meeting, lead Industries Association, St. Louis, Mo., April 0-8, i960 1 'i fr*Stfaafa&aa&da*MSii4^rt^^ f^.210 9 ^ 2 Mr. Ary Motslaan -2- Tbs Outlook for Lead la the Cable Industry Be further Indicated that, in applications la which lead was still necessary, cable manufacturers were covering lead with neoprene and other material*. In doing this, he pointed out It was customary to reduce the lead sheath thickness at least 1? per cant. Sometimes the reduction amounted to as much as 33 per cent. Lead was clearly In a squeeze between high and low voltages. And where Its use was mandatory, substantial reductions were being effected. Lead for cable sheathing stood at 121,000 tons In 199$. In 195Q It was noted that Western Electric had completed develop ment of a substitute for lead--a plastic and metal cable sheath--called Stalpeth. The telephone Industry had grown up on lead sheathed cable. But, since the 30's, because of a growing concern over lead supply and price. Western Electric had been developing substitutes for lead. Put Into production in 1950, by 1958 leadless sheaths made up over 90 per cent of the entire Western Electric cable production. Enormous savings have been reported by Western Electric In their switch from lead. In 1958 lead use In cable sheathing fell to 73,000 tens, and 1959 aav a further drop to 63,000 tens. The oft-repeated prophecy that lead would give way to other material* has apparently ccme true. It would not be difficult to predict with same assurance a further decline in lead consumption. Before predicting the end of lead, let's first reexamine lead's position as a cable sheathing material and see If we can find something In lead cables that might be developed and promoted to stem the tide and halt or possibly reverse the decline. Who now use* lead sheathed cable--and why do they continue to use ItT First, there la a hard core of lead cable users who pay more for lead because they want to use It and find Its advantages veil worth the price. Cne of these advantages being considerably longer life. A* a supplier of telephone cable to Independent telephone companies, ve see a continued demand for paper lead telephone cable. The trend here, Z must admit. Is to follow the Bell System In Its use of Alpeth and Stalpeth. However, there are many important Independents who still Insist on using lead and show little inclination to change. This insistence on lead Is also found among seme utility and In dustrial users of lover voltage rubber Insulated cables. The principal use of lead as a cable sheathing material today Is In the manufacture of paper Insulated power cable. > 1: f ?- ; ts. ! C - * -J- ^ '**-*k0 JO..-- . .......... w . iir. Ary nossiaaa -3- The Outlock far Lead In the Cable Industry This market, surprisingly enough, la restricted mainly to * handful of electric utilities serving large cities--Rev York, Los Angeles, Philadelphia, Syracuse, 8t. Louis, Cleveland, and a very fev others, where better than 75 Pr cent of all the paper lead manufactured is Installed. A decision by any one of this Halted number of companies to switch to aluminum or seme other material could, of course, bring the significant use of lead as a cable sheathing material to a screeching halt. But for the moment the processing of alualnua has not proceeded much beyond thk preliminary development stage aa a cable sheathing material In this country. Companies who continue to use lead sheathe must obviously prefer lead for a good reason. It's a fact--any cable Insulation vhlch cannot tolerate moisture must have a metallic sheath. Today, lead Is the easiest of all metals to apply and use as a completely moistureproof barrier. And equally Important to the continued use of lead Is the fact that paper power cable is today an often cheaper, more economical and trust* worthy cable with a service history which cannot be rivaled by any other material. And as the Increasing size of electric loads AemmAs distribution at higher and higher voltages, paper lead cables offer an excellent, reliable and economic answer. Because of Its economic advantage and service history, paper lead pover cable warrants consideration by any user of higher voltage cable; and. In our opinion, paper lead power cable warrants consideration by the lead Industry as an area In which lead might be expanded. If paper lead cable Is as worthy of consideration as we believe It Is, why then do only a handful of electric utilities use ItT Vhy don't more Industrial plants use paper lead cable if it provides an economical answer to the cable users' number one problem--reliable service of large loadsT Quite frankly. Industrial users of pover cable rarely give lead a second thought for cable sheathing even when they have been troubled by failure due to moisture. Ror do they consider paper lead cable when they are searching for an economical solution to the problem of serving large electrical loads. Many engineers specifying cables have never been acquainted with the fact that lead Is used as a superior cable sheathing or that paper lead cable Is economical and trustworthy. r I - 1097 Hr. Ary Mosilman -k- The Outlook for Lead In the Cable Industry Where lead Is known, engineers generally believe the splicing and terminating of lead cables Is an Involved procedure. And many Industrial people have the Idea that varnished cambric and rubber can be Installed vith less care than paper lead power cable. This Is not so. Another objection to the use of paper lead cable Is the supposed lack of experienced cable splicers with lead wiping skill. In our opinion, paper lead cable properly Installed vould more often than not prove a better end sore economic solution In Industrial applications. Its use In Industry has been restricted by fear and lack of under* standing. The successful promotion of other products such as neoprene, butyl end polyethylene has left most wire and cable sale amen unwilling or unable to sell paper lead cable to non-users. Host salesmen vould be unwilling to un-sell a plastic or rubber insulation and re-sell paper lead If be has available the cable the customer Is already asking for. Thus, ve find lead facing a continued decline when at the seme time paper lead power cable provides an economical solution to a pressing problem. Here Is a situation In which lead use could. In our opinion, be Increased. Obtaining such an Increase vould require four things: First, a better understanding of wire and cable manufacture, sale and application. Just where does lead fit Into this picture! Secondly, increased use would demand Intelligent promotion of lead In applications where it can be demonstrated that paper lead cable can provide economical and outstanding service. Thirdly, wire and cable users must be taught the ease of handling lead. This vould Involve working with Industrial plants, utilities, contractors, und unions to provide a pool of adequately trained cable splicers skilled In lead wiping. last, but not least, continued work with cable manufacturers in Improving lead sheaths and simplifying their application will be needed. This could, also lead to the Increased demand for lead In higher voltage cable. All four steps vould be necessary to reverse the trend and re establish lead's position. ------------. . .11V i- ....,.- ,.. , . ,, , u i i i i i JI'irf;lfiigilAifa-fTm*^ `ii^if^fi'-ia^-tfiT^'ft^il^rir dfA ''liir'irf rufta i Hr. Ary Moss loan -5- Tha Outlook for Lead la tbs Cable Industry Starting the program I havs Jut outlined might he easier than you think. For example, you could start by Insisting on the use of lead cable* In your own plant--and, more Important, Insist that the In dividuals responsible for cable application carefully evaluate each d every Installation In terms of the overall program. Find out how much lead really costa in terns of Installation and length of service. Secondly, study those Industrial plants which are now using paper lead cable successfully. These tvo steps will undoubtedly help in a solution to the important problem of cable splicer training. Thirdly, I suggest that you carefully study the selling and pro motional technique* of those people now selling material* which compete with lead--aluminum, neoprene, polyethylene. Last, but not least, evaluate the potential Increase In the use of lead which might result from Ita promotion. Cfcly a nominal expenditure would be required to bring any reasonable effort at understanding what might be done to promote the sale of lead to this point. From there on, concerted salesmanship, effective promotion, training, development of trade relations, and metallurgical research could be ; brought to bear to restore lead as a cable sheathing material in tha minds of cable purchasers. To again quote one of your earlier speakers, "It appear* that if In the past the lead Industry has shown a complacent attitude, this must now be replaced with some Intelligent planning and vigorous action if you have any Interest In maintaining and Improving present markets." i LIA21099 wwwwr FDR RELEASE NOT EARLIER THAN 1? NOON, THURSDAY, APRIL 7, I960 THE INTERNATIONAL LEAD ANTI ZINC STODT GROUP 3y C. V. Nichols Spaclsl Assistant Office of ths Assistant Secretary for Economic Affairs U. S. Department of State The Lead and Zinc Study Group la very young. Some of its activi ties have hardly begun. let this new organisation already has Influence In the lead and line Industries throughout the world. The Group la not only rec ognised] it la even given credit for some substantial changes which have cone about during the past year In t the tenor and outlook of International trade In lead and tine. Because of the relationships between domestic and International markets, the Study Group can be isportant, not only to laportera and exporters but to all producers, consumers, and merchants of these materials. Strictly speaking, the curtailments of International supplies which were in effect during 1959 should not be attributed to the Study Group. Those curtailments, and the Study Group itself, were the separate. Joint products of the preceding exploratory conferences and an interim committee. The Study Group, however, has become the continuing machinery. It Is naturslly now thought of ss an extension of the International discussions which began be fore It was organised. The Study Group is an autonomous Intergovernmental body. The mem bers are national governments. Kembership is open to any government which is a member of the United Nations, or of its specialised agencies, or is a Con tracting Party to the General Agreement on Tariffs and Trade if the government considers Itself substantially interested in the production, consumption or trade of led or sine. (Presented at Joint Session of American Zlsc Institute and Lead Industries Assn., 5t. Louis, Kissourl, April 7, I960) I < : r -k--g_:. % S! I f-:1 LIA21100 m^ it i wpxqgf m> b?ipjiffjt unywqwiPy <f 1 1wu jw'g*wt Tg HMI H !P J* f C. V. NICHOLS 2- Twenty-five governments have accepted membership. All continents are represented. The me>er countries account for sore than 90 per cent of estimated world production, consusption, and trade of lead and sine, ore and metal. The members participate In sessions of the Study Group through na tional delegations which Include officials of government and representatives of Industry. Industry representatives hare already contributed a great deal to the work. It la hoped and believed that their participation can be further increased. The Study Group has its own rules of procedure. Its terms of refer ence permit considerable flexibility in operations. Thera is no fixed sched ule of meetings. These are held at times and places decided by the member* according to circumstances. The normal procedure is for the discussions la the Study Group to be held in private, end for the decisions of the Group to be taken according to the sense of the meeting, without voting. The Group is authorised to make studies; arrange for statistics; consider possible solutions to special difficulties; and submit to member government reports, which may include suggestions or recommendations. The Group has no regulatory authority. Membership involves no ob ligation upon a government as regards the production, consumption, or trade of its country. The Group is to remain in existence as long as the partici pating governments think it useful. A member government is free to withdraw at any time. for the present, a small office and staff in New Tork are being provided by the United Nations on a reimbursable basis. The budget for I960 Is very modest. Part of the expenees are being shared equally by the Maber governments; the remainder being allocated among members In proportion to their volume of International trade, taking account of exports and Imports. Li A21101 C. W. NiCHOLS The size and functions of the headquarters staff are presently at a minimum. These could be expanded if the members desired in time to estab lish statistical or publications programs as other study groups hare dona. ; The present disposition of the Lead and Zinc Oroup Is to rely upon existing sources of statistics as far as possible, but to exert an Influence toward Improvement and extension of existing statistical work. The close association of administrative operations with the United Nations at this time was considered necessary to enable the Study Group to begin to function more easily and speedily. This opportunity to obtain staff services from the UN makes a variety of professional skills in the larger or ganization available as required. The assistance of the UN is also reducing the expense of operation. These initial organizational arrangements are pro visional} they will be reviewed and may be revised if the members so decide. As long as the operations of the Study Group are related so closely to the United Nations, the meetings of the Group will probably be at New fork or Geneva, since those are the locations where the UN maintains conference facilities. The Study Group could meet elsewhere, especially if a member government should extend an invitation to host a particular session. This has been a common practice of other commodity study groups. The next full session of the Lead and Zinc Study Group is expected to be in early September of this year, probably in Geneva, but a definite decision has not yet been taken concerning either the date or the place. i : The Study Group has established a Standing Committee to deal with matters requiring attention between full sessions. The Standing Comdttee manages the budget; directs the secretariat; keeps the lead and zinc situation under review; and makes plans for future meetings of the full Group. The Standing Committee includes all members of the Group who wish to participate in its work. This Committee electa its own-officers. The officers of the l U2U2 C. V. HICHOIS 1) - Standing Committee are expected normally to be the sane individual#, or In part the same Individuals, who are at the time holding offices of the Study Group to which they hare been elected at full meetings. The Study Group cur rently elects its own officers for a term of one year, which may be extended until successors have taken office. The Oroup has appointed a small panel of persons who are specially qualified in the field of statistics to consider the data now available con cerning lead and sine on a world basis, and the Improvements which might be made in this data. Thl* panel will report to the Standing Committee before the next Study Group meeting. The Study Group is primarily a forum through which the members can seek and obtain more information and a better understanding of the outlook and the attitudes of others. It provides opportunities to correct misunderstand ings and misconceptions, and should help in avoiding them. The full meetings of the Group are its principal activity and its chief opportunity to accom plish its purpose. The staff, the Standing Committee, and the other activi ties hsvs a supporting relationship. While the full meetings are the high spots of the program, there is a great deal of preparatory work in advance of each of these meetings, and each meeting can generate follow-up activity extending through all or much of the interval until another session. Each delegation to a Study Group meeting represents its government in an official capacity. The delegation must set as a unit in expressing of ficial views. Necessary guidance for the 0. S. delegation is developed by our Government in advance of each Study Group meeting, after appropriate consul tations among ths responsible officiele and with the industries concerned. Considerable effort hse been made, both by government and industry, to in sure that our delegation is adequately organised and equipped to represent this country effectively.  * -., ,i LIA?Ho 3 - 5 C. V. NICHOLS The 0. S. delegations have Included officials from several depart ments principally concerned, and industry members, vho vers appointed official ly following their nomination by representative segments of Industry, The in dustry members of the delegation serve without expense to the Government. The delegation needs to be representative of the interests concerned and needs to include s variety of specialised qualifications, but it also needs to be rea sonably compact in site. This is sometimes a problem to hold the membership of the delegation within effective working limits. The delegation is appointed for a particular meeting and completes its work when its report on that meeting s is submitted. The newly organized Study Group cooes on a stage which already had a giant backdrop of world concern with the problems and Interests involved in International trade of primary commodities. Nationalism is a strong force in the commodity field, but there is also an increasing recognition, especially since the second world war, of the interdependence among nations In a world situation. As governments have taken greater responsibilities for economic af fairs, the commodity policies of individual governments have created for these governments a set of new and more active relationships with private companies and other governments. The waste and distress that can be erased by extreme economic cycles and excessive fluctuations in the prices of major commodities bare become an ever more pressing concern as stronger ettphasis is placed co the maintenance of high levels of productive employment and a steady economic development at home and abroad. Great efforts are made to encourage a flow of private and public capital into less industrialised countries, but this international in vestment and its broad objectives can be seriously undermined in many of thoss countries if their earnings on the commodities they export do not show long term growth with reasonable stability along the way. rtin J li-i iiiffri in LIA21104 C. W. NICHOIS -6 i i ! Direct and detailed controls for purposes of stabilisation here been undertaken In some commodities. The record of peacetime regulation has not been too lapressive, either on a national or an international scale. But the vorld is in no mood to embrace fatalism. People are not inclined, either in the United States or in other countries, to regard the hardehlpa of extreme price fluctuations as an affliction which is unavoidable. Severe instability in external markets can increase greatly the problems which national governments face in pursuing liberal pollclea toward international trade. These problems of primary commodities have engaged and continue to i ; t i engage the serious attention of many international bodies. No panaceas have been discovered, but most governments place a high priority on a continuing search for ways to moderate instability and reducs the causes of international friction. The General Assembly of the United Nations has repeatedly discussed f: t the objectives toward which international cooperation should be directed in the iff field of commodity problems. So have the Econom3c and Social Council, the Pood j and Agriculture Organisation, and the Organisation of American States. The Commission on International Comodlty Trade was established for this purpose. Commodity problems have been emphasised in the sessions of the Contracting Parties to the General Agreement on Tariffs and Trade. None of these general ri organisations, however, has been able to devote continuing attention In depth to any particular commodity situation. Specialised study groups for some commodities have existed for many yeara. One of the best-known is the International Cotton Advisory Committee which had its origins before the second world war and has functioned on a broadly representative and active basis since 19li5. This committee has made Itself the hub of extensive snd authoritative Information on cotton and has produced many competent studies concerning the world cotton situation. The nniniri> -7 - C. V. HICH0I3 question of an international cotton agreement has received serious attention in this committee on more than one occasion, but proposals for intergovern mental regulation did not advance beyond the stage of discussion. The International Wool Study Group, although in existence since 19ii7, has not been as active as the Cotton Advisory Committee. The International Rubber Study Group, established in 19U5, has been useful to its members in making their way together through s succession of Striking developments, including reconstruction from wartime disruption) growth of a large synthetic industry) emerging political Independence of areas which are the leading exporters of natural rubber) large-scale stock piling) and, more recently, some liquidation from the stockpiles of natural rubber. The Rubber Study Group has assisted international trade in such mat ters as standardisation of grades and improvements in type sampling. Its moot valuable contribution, perhaps, has been the development and dissemina tion of authoritative statistics or estimates on the production, consumption, trade, and stocka of all types of rubber on s world-wide basis and authorita tive forecasts of production and consumption, year by year. Like the Cotton Advisory Committee, the Rubber Study Qroup has at times given serious con sideration to the possibility of an international agreement which would con trol the trade In rubber, but on each occasion the members decided that no * general advantage could be expected from proceeding with such a project. Coffee, cocoa, rice, and other commodities have also had study groups, and the activities of each have been tailored to tha problems of the particular commodity and the desire of the member governments to use this method of consultation. A few commodities, notably wheat, sugar, and tin, era subject to specific intergovernmental agreements. Each of these agreements is admin istered by an international council which, of course, is not concerned dl- > f: : t b n i I. C f; e. & i'-'i ' :lt M Itil lliiuw riJ.-<i Kwtoulti it' 2X10^3 a* Ju C. W. NICHOLS 8- rectly with any other commodity. The functions of those councils sre quite different from those of the commodity study groups. Some commodities hire received much more Intergovernmental atten tion than others. The amount of international trade Is not in itself the , controlling factor. Each of the leading world commodities has some special characteristics which affect the interests of governments and the methods they think desirable for pursuing those interests. Some commodity study groups have been formed in response to an Immediate, more or less fortuitous, situation. Study groups have only endured, however, and proven to have con tinuing usefulness, in thosa commoditlss where a considerable number of im porting and exporting countries found continuing reason to keep developments !; under Joint review. A happy situation in a world connodity presumably would be one in which there were not enough uncertainties or problems for governments to at tach much importance to a study grotqj. Vhare the commodity is sufficiently ts important, however, and the need for s study group is felt sufficiently widely, these practical considerations are usually controlling rather than any theory about the desirability of study groups in principle. Lead and line constitute in some respects a more complicated prob lem than other international commodities. Lead and sine may be more in need of a study group because of the special circumstances under which these two materials are produced, marketed, and consulted. Other commodities are not affected to the same extent ty characteristics such as lsrge-scale recovery of secondary material! predominance of Joint production at the mine! substantial volume of international trade in concentrates as well as in metal. In 1957 and 1958, when the problems of instability in some nonfer- rous metals were giving Increasing concern to a number of governments, there was no specialised International machinery available for multilateral consul LIA21107 t'-fVvAfrrf^l^^V*'*'1'^t ' C. V. KICH0L3 tatlon. Inquiries vers made through United Nations channels, and tha replies indicated that many governments would be interested in an exploratory meeting to consider the position and prospects of copper, lead, and *lnc. The Secre tary General of the United Nations then issued inrltatlons for this purpose and the meeting vss held at London in September 1958. < The discussions in that meeting led the participants to the conclu sion that there was no need for special action as to copper. Several prob lems were exposed in lead and line, however, both of a long-term and a short term nature, which appeared to require further careful consideration by govern ments. As a possible means of dealing with the short-term problems, the London meeting suggested that governments should consider a reduction of exports or production for one year, with machinery for a prompt review if conditions changed. Governments were also asked to consider the establishment of a lead and line study group which could provide a framework for continuing coopera tion with respect to long-term problems. In addition, the exploratory meeting arranged for a review of the available statistics to determine whether these provided satisfactory data for intergovernmental discussions of lead and sine. After allowing some time for separate study by governments, t second meeting was called, concerned entirely with lead and line, and this took place at Geneva in November 1958. Meanwhile, the United States had established Im port quotas by action taken under the escape clause procedure of the Trade Agreements Program. The world trade situation for lead and tine was somewhat different from that which had existed at the time of the London meeting. Some delegations et Geneve thought thet e further period of time would be required in order to appraise the outlook under the new circumstances. The discussions in November 1958 recognised that the lead and sine markets were out of balance, but no action was taken at that time to curtail international supplies. Rec ommendations were made for the formation of a lead and mine study group and C. V. NICHOLS 10 - for further efforts to improve the world statistics which governments could uaa In Judging the position end considering propoeala for adjustment. The interested governments cane together again In late April and early May of 1959 at New Torlc, and took preliminary steps toward organising the Lead and Zinc Study Group. A substantial excess of supplies in both metals atill appeared to be in prospect at the tine of the New fork meeting, if no al lowance were made for certain reductions and limitations then under considera tion. The meeting, however, received reports of specific curtailments to be made in a number of countries and estimated that, after allowance for these, the world excess of lead metal would be reduced to an annual rate of 59,000 tons in the second half of 1959, and the excess for tine metal would be re duced to about 16,000 tons. These undertakings of which the New fork meeting took notice were separate and voluntary. They entailed no formal coturitaents. It was clearly the view of the meeting, however, that these measures would improve the rela tionship between supply and demand, pending further review at a subsequent meeting. The New fork discussions gave strong support to the announced limi tations as a general method of approaching the short-term problem. The first regular session of the Lead and Zinc Study Qroup was held at Geneva, January 27 to February 3, I960, being preceded by a special sta tistical session. The consensus at this meeting was that there is no need at present for continued limitations on international supplies of sine. The meet ing noted with approval the plans in a number of countries to curtail market ings of lead until at least September 30, I960, and considered those plans to be helpful in the interest of e current balance. Twenty-four of the twenty-five members were represented by delega tions et the recent meeting. The delegations Included, in the aggregate, some what more than 100 persons. Some member governments accredited only one or two \ L1 a1 i l f' <i - i E' 1 - 11 - C. W. HICH0L3 persona, but others vere represented by about hlf a dosen to a dosen. Ap proximately one-hlX of the Individnils In attendance vere officials of gov ernments j the others vere representatives of Industries In their respective countries. the normal procedure In nestings of the full Study Qroup and sons of its committees, such as the Administrative Consittee and the Sconotrio Com mittee in the recent seeelon, hes been for each delegation to have a eingle spokesman, usually an official of the particular government. Participation In the discussion has been more general In other committees or subcommittees where mors technical subjects vere under consideration. This vss especially true In various statistical groups. Representatives of industry have taken s direct and major part In those discussions. There are, of course, also many Informal exchanges of views among participants on the occasion of Study Qroup meetings, and these become an Important part of the total proceedings. As the Study Group embarks on Its full program In I960, It will have the benefit of the experience which has been gained In the operation of other somewhat similar bodies. A commodity study group Is no longer thought of as strictly temporary or as a prelude to a commodity agreement. Instead, the primary emphasis is on the question vhethor < continuing program of exchanging information and views can substantially increase the degree of stability in the lead and sine Industries on a world basis simply by promoting better and wider understanding, earlier and more accurate appreciation of trends, and a more responsible approach to problems of common international concern. If the member countries believe that this Is possible and attach Importance to a greater degree of stability in these industries than they have had, then the main problem of the Study Qroup is to devise the most effective methods of operation for these purposes. 4JL-U.. I 'r/'VV-xijfi:;.; t S I r i i "................ ................. "' :: - -j^u c. v. mic b o is 12 - This will Involve a question of ways to organise and conduct th* meetings to stake then soot productive. Kultliateral discussions have super seded tha former rallanca upon bllataral procedures. Soma now techniques have avolvod to facilitate this development In the conduct of International commod ity relatione. But the usual procaduraa etlll draw hoavily upon tha forms which wore traditionally employed for debate or negotiations. Since tha pur poses of the Study Group arc different, seeking chiefly the development of Information and exploration of rlevs, there appears to be a need for io m fur ther evolution away from traditional procedures in order to draw Into the de liberations s more active participation ty a larger number of the people In attendance, with less formality. The depth and range of aubatantlve dlacuaslon might be increased considerably, to the benefit of all member countries, if the proceedings offered greater opportunity for active participation In the discussions by additional members of the delegations, especially industry rep resentatives, it being understood, of course, that they would be expressing their individual views. With these considerations In mind. It has been suggested that future sessions of the Study Group might Include a special committee on production, consumption, and trade. This part of the Study Group session could be organ ized as an exploration of technical and economic questions, open to all mem bers of the delegations. Specific topics could be on the agends, and papers slight be circulated in advance to focus the discussion. There need not be any attempt to reach conclusions, but a report of the discussion would be made to the full Study Group. It is recognized that an arrangement of this kind could present some dangers. There certainly would be problems which have not yet been fully explored. Kit the member governments have already recognized that reliance on customary procedures msy not draw out the full contributions which persons In sttendanc# are capable of staking. The Group believes that some in i' ! r ; L f >i t l Y : j y '** mmm LIAZ1111 - 13 - C. V. HICHOLS provements can be da-vised which will be practical and will make the Beating* more valuable In projecting future trend*. Another problem will be that of drawing upon * sufficient cross sec tion in industry and other competent source* for information and views which can help in preparing for Study Oroup meetings. Similarly, after each meet ing, there will be need to make sure that the course and outcome of Study Oroup discussions become known sufficiently clearly and widely in the indus tries concerned to give practical effect to the desire that Study Oroup ses sions can have a tangible Influence on the actual conduct of industrial opera tions In the direction of the greater stability in which member government# are Interested. The operations of producers and consumers might b* influenced In important respects, and in a generally constructive direction, by the work of the Study Oroup. For example, a more responsible management of stocks right become more Justifiable and more likely. Some erratic variations in commercial stocks, even though conceived by individual companies as being defensive, have, in the aggregate, made an aggressive addition to th* dsstabillring influences otherwise at work. There ia also a possibility that some important consuming industries will attach such significance to stabil ity in their raw materials that any extent to which they believe the prospects for reasonable stability in lead and sine are being improved will increase their willingness to plan on the use of these materials. This could be a basic contribution to the expansion of consumption, which is the dominant considera tion In a satisfactory future development. Since the personnel of each delegation and the total attendance at Study Oroup sessions oust be somewhat limited, this problem of adequate com munication with many other people In member countries, both before and after Study Oroup sessions, will need very careful attention, perhaps moat especial ly in the 0. S. --i. C. V. NICHOLS - Hi - The Group may have to decide -whether It will consider the poaslbil- itles of en international agreement Involving buffer stocks, export restric tions, or other controls. The terns of reference would permit this subject to l be raised. The question would be whether any considerable number of member government* thought that a full examination of such proposals would be useful. Some members have already indicated their view that it will be appropriate for the Study Oroup to discus* regulatory measures for purposes of stabilisation. Other members have already made clear that they believe the long-term inter ests of lead and sine on a world basis will best be served hy avoiding addi tional control*. The United States Government maintains its well-known position that there are few situations in Wiich intergovernmental commodity agreements are appropriate or desirable. The U. S. view eqphasises that the circumstance# in which lead and sine are produced, sold, and consumed make it very doubtful t i that an Intergovernmental agreement to control either or both of these materi als would be feaalble of negotiation or operation. u\ r There are, of course, some areas of interest to lead aid sine in which the Study Oroup cannot be expected to perform, for exaaple, the Group cannot participate in the programs of research, product development, and commercial pro 5^ motion which the industries In several countries are pursuing. These, however, have been noted in the Study Oroup discussions. They are recognised as having highly constructive possibilities. The Group appreciates the necessity to avoid actions which might prejudice the success of these important programs. { The Study Group cannot be expected to lend itself to advancing the in terests of some members at the expense of others in those matters upon which - there are conflicts of interest. The focus of the Chroup will have to be in the : area of common Interest, that is, conaunptlcn expanding at s substantial and rather regular rats with increasing requirements being supplied at reasonably I * ftrigjjlWCKgITHT.'"?*1 f "ITT ~ 1 """T"1 LIA21113 - 15 C. V. NICH0I3 stable prices which recognise the iaportance of workable balance of supplies and requirements along the road of long-time growth. This is the plane of mu tual interest where a basis can bo found for effective cooperation among pro ducers and consumers, exporters and laf>ortere. The Study Group is not an instrument through which fast action or quick results can be obtained. Its eventual Influence, however, could be deep and wide in the industries ihlch supply or require lead or sine. Progress has been made in the ability and the desire of the national delegations to cooperate in matters of common interest. The members are dis tinguishing more clearly than they did a year or two ago the subjects and the types of activities which can usefully be undertaken in this forum and those which cannot. What comes out of the Group must depend on what the member countries put in it. The beginning is suspicious. The lndiestiona are favorable. There is wide participation, and the Study Group has active support. It could become the center in a net of world-vide information and communication. The Study Qroup is a good tool for important worki to raise the level of understanding in many places; reduce the causes of international discord; and improve the prospects for growth in those industries without serious interruption. tit ANNEX I The International Lead and Zinc Study Group Member Countries Australis Belgian Congo Belgium Canada Czechoslovakia Finland Prance Guatemala Federal Republic of Germany Indie Italy Japan Mexico Morocco Netherlands Norway Peru Poland Spain Sweden Union of South .Africa Union of Soviet Socialist Republics United Kingdom of Great Britain and Northern Ireland United States of America Yugoslavia i- "\ C. V. NICHOLS 16 - ANNEX II The International Lead and Zinc Study Group Terms of Reference Membership 1. Membership of the International Lead and Zinc Study Group shall be open to the Governments of States Members of the United Nations or of appropriate spe cie 1 1 i el agencies or to Contracting Parties to the General Agreement on Tariffs and Trade, which consider themselves substantially interested in the production or consuaption of or trade in lead and xlnc. Functions 2. The group shall provide opportunities for appropriate Intergovernmental con sultations on international trade in lead and/or tine and shall make such studies of the world situation in lead and zinc, as it sees fit, having regard especially to the desirability of providing continuous accurate information regarding the supply and demand position and of its probable development. For this purpose the group shall arrange for the collection and dissemination of statistics, making use of existing sources so far as practicable. 3. The group shall, as appropriate, consider possible solutions to any special problems or difficulties which exist or may be expected to arise in lead or tine and are unlikely to be resolved in the ordinary development of world trade. h. The group may report to Member Governments. Such reports may include sug gestions and/or recommendationa. 5. For the purpose of these terms of reference, lead and zinc ahall include scraps, wastes and/or residues and such lead and zinc products aa the group may determine. Operation of Study Group 6. The group shall meet at times and places mutually convenient to its members. 7. The group shall adopt such rules of procedure as are considered necessary to carry out its functions. 8. The group shall mske such secretariat arrangements as it may deem necessary for the proper conduct of its work. 9. The participating Governments shall contribute to the expenses of the group on a basis to be determined by it. 10. The group shall remain in existence as long as it continues, in the opinion of the participating Governments, to serve a useful purpose. 11. The group shall make such arrangements as it considers appropriate by which Information may be exchanged with the Interested non-participating Governments of the States referred to in paragraph 1 and with appropriate non-governmental and inter-governmental organizations. The group shall cooperate in particular with the Interim Co-ordinating Committee for International Commodity Arrange ments which, under resolution 557 7 fXVIIl) of the Economic and Social Council, ,haa the function of co-ordinating the activities of study groups and councils. r%S * LI 62 TABL* I At7TCH0TIVT VATTP.RT AND BATHS LPM STATISTICS ___________________________ OrLti js_lPO0-M*efc raaB Total motor rehlcles regiatore! Jn 0. 3. Hc-J motor rcMo-lea registered Registered Tohlcles In 0. 3. (Total reg-ne* rag.) Old Kotor vehicles scrapped Oain In total registration (by diff.) Passenger vehicles nifgd. with 12 volt systems^ sccon* Production of all motor vehicles in U*S. Expert sales of G* S. motor vehicle# Tff.nort of Vehicles into US Vehicle Miles in Hi S# (x ljOOO^OOO) Ccrcposlts Opinion (V) U) a) a) (i) Estla.sd 1960 71,762 6,950 66,812 5,636 1,316 37,U7 6,750 300 500725 1959 70,666 6,967 63,179 5,ooo 2,118 30,167 6,729 312 719 696 1958 68,328 5,376 62,952 6,500 1,169 23,200 5,135 306 659 666 ... 1957 67,159 6,660 60,319 6,266 1,976 17,626 7,221 373 273 617 BATTERTESt Auto, doraestio 0J5. Bifgd. by U. S. Mfgrs* (3) 6,966 Tractor 0. K. mfgd, by 0. S Hfgrs. (eat.) 275 Auto, replacement afgd. for export by O.S Kfgr# (3) 221 Auto, domestic replacement nfgd. by G. S. Kfgra* (3) 23,369 Total auto, k Tractor batts. afgd. by D.S. Kfgra. 12 rolt only domestic O.E. mfgd. by 0. S. Kfgra. 35,811 6,966 12 rolt only domestic replacement mfgd. bv 0*S.Mfgrs. (est) 13,500 Total 12 Tolt mfgd* by U. S. Hfgrs. (est.) 20,666 Percent 12 rolt auto, batteries mfgi* in 0. 5. (est.) 5M Ratio to re-registered carp (3) 6,750 275 221 28,701 35,967 6,750 12,900 19,650 555 2.26 6,729 280 220 27,695 36,726 6,729 9,075 15,806 66* 2.31 S.135 263 222 25,270 33,850 S.135 7,325 12,660 60* 2.50 7,221 276 271 25,963 33,709 7,221 5,967 13,188 39* 2.31 L^AD C0iJrtbJ BT BATTEKf I^DT-STOTt Grids', posts, etc. (x 1000 tons) (2) Oxides (x 1000 tons) (2) Total lead used by battery industry (x 1000 tone) (2) Loss lead used for industrial batteries (eat.) (x 10C0 T) Lead used in automotive batteries (by diff.) (x 1000 T) Calculated lead per average automotive battery lbs. ISO WJ 360 3b 326 196 186 382 bo 362 19.0 182 179 361 35 326 18.8 160 153 313 28 28S 18A 186 175 361 38 323 19.2 KAKCH I960 1966 65,163 6,850 58,333 6,963 2,656 10,966 6,921 398 112 628 19$$ 62,727 8,127 56,600 6,392 6,186 5,125 9,169 667 60 603 1956 53,51*3 6,365 52,178 6,353 2,288 1,636 6,601 601 36 561 6,921 277 361 25,016 32,573 5,859 1,536 7,395 23* 2.33 9,169 377 6C6 2S.826 35,778 3,691 662 6,133 12* 2.12 6,601 227 609 23,771 31,008 1,030 31 1,061 3.6* 2.20 192 179 371 ie 329 20.2 196 186 380 36 366 19.6 337 28 309 20.0 1953 56,255 6,669 6V:j6 6,056 2,55a 606 T,32> 325 31 566 7,323 207 637 23,616 31,551 606 6 610 1.3* 2.06 SI 37 320 20.3 < \ * V" LIA21116 TABLE n j. MARCH I960 BATTFRr PRODUCTKH RELATIONSHIP TO VEHICLE RfDISTRATICHS AMD VEHICLE MILES 1959 1958 % Replacement to Total Vehicle Regietraticue % Replacement to Reregistered Vehicle* 39 37 U3 1*0 % Replacement to Previous Tears Reregistered Vehicle* bb U> 5 Replacement to Reregistered sdxmu wrapped Vehicles ur b3 % Total to Total Vehicle Registration 1*9 lS f Total sinus Export Batteries to Total - Vehicle Reglstratiaa b9 US f Replacement adnus Export Batteries to Total Vehlole Registration 39 37 Replacement Batteries per Millicn Vehlole Miles 39.5 38a Total sinus Export Batteries per Millicn Vehicle Mile* 1*9.2 b5.8 Variance from year to year less than other relationship# 1957 39 U> U5 16 50 b9 3 1*0.2 51.2 Calculated from Data in Table I 1956 1955 195U 1953 HIOH 38 la ia 12 U2 1*3 U7 1*5 1*8 W L6 1*9 w by U7 52 50 52 52 SO 56 53 56 56 58 5b 52 55 58 38 la bo ia la 39.9 b2 .8 1*20 1*3.5 13.5 50.8 57.9 SUM 56.8 57.9 at o ao s *bo bb 1*5 1>8 51 52 39 bl.3 52.2 LOW *37 bo bo b3 1*5 b5 37 38a 1*5.8 nrxwwtr^ ^iTm*ni|Trnr--rr^i ni t\ r 'mr i--t -- '--|T^ir-"->-.-^.-^.------ .|TTr^^.l^^^^,,^,-i FOR RELUSE NOT EARLIER THAU 12 NOON, THURSDAY, APRIL 7. I960 RECENT DEVELOPMENTS IN WORLD LEAD AND ZINC MARKETS By R, Hendrick* Executive Vice President The Consolidated Mining end Smelting Company of Canada, Ltd. I am pleased to have the opportunity of addressing you today on "Recent Developments In World Lead and Zinc Markets" because I believe that marketing con stitutes the critical segment of our business. I should perhaps warn you that while I shall give you some statistical and other information cn lead and sine consumption, the primary theme of ngr talk Is international co-operation. However, I hope that before I finish you will all agree with me that international co-cperatlon lui a great deal to do with market development and that it ie a subject of major concern to us all. The ores of lead and sine are unevenly distributed throughout the world and all countries are not equally well supplied with their own mines. Some coun tries, such as Africa, Australia and Canada, have resources in high grade ore which allow production of much more than they can use. Others, such as Great Britain, India, Japan and the United States, are unable to provide for their consumption from domestic ores and so are compelled to import. Consequently, there is much traffic in lead and zinc in various forms from one country to another and there is every expectation that this will increase. International trade ie thus an integral part of the lead-zinc industry, and international co-operation la essential for it* well-being. This latter fact is receiving growing recognition and I submit that the most important single international development in the industry in recent year* is the increase in co-operation that has been brought about. This i* net something that cones automatically. It has had to be initiated, and to be maintained and i (Presented at Joint Session of !- American Zinc Institute and Lead IndustriesAssn., St. Louis, Missouri, April 7, I960) N 227.07 it ^wW= - 2- R. HENDRICKS extended by deliberate action. All of us can make some contribution In this direction. Let me remind you of some of the ways -n which increased co-cperatlon is being translated into effective action. For many years there has been considerable freedom between producers to exchange technical infomation relating to methods of raining, concentrating, smelting and refining. This is good, and it was encouraging to hear recently that the Russians r,iy open their lead and line mines and smelters to visitors from certain Western countries on a reciprocal basis. I believe that such ex change on the technical level is beneficial not only for the direct results but also in a broader sense. I hope that all of us will do what we can to encourage this sort of thing. We have Just heard from Mr. Nichols about the International Lead-Zinc Study Group organized under United Nations' sponsorship. Kay I add that I have heard at first hand from delegates to these United Nations' meetings that a grow ing sense of mutual confidence and a resulting willingness to co-operate in creating a healthy lead-zinc industry have been clearly In evidence. Hr. Nichols mentioned the important matter of statistics where specific progress is beir^ shown. Complete and accurate statistics can be of great help to everyone in the industry but they can only be assembled as the individuals concerned supply suitable information. I think we should all give this matter serious considera tion and, as far as possible, contribute what is requested both as to matter and form. Hr. Nichols also explained how, at the United Nations' conference held in New York about a year ago, steps were taken to set up the Stucty Group to' which I have Just referred. At the same conference in New York there was frank discussion of the difficulties facing the industry because of the over-supply t: situation and you also know how individual producers recognized the problem and  g 11]mini LIA21HQ - 3 R. HENDRICKS mde various adjustments to deal with It. The benefits of the resulting action to both producers and consumers are nov apparent to all and it will suffice for me to point out that at the recent Geneva meetings of the Stu<fy- Group it was recognised that the problem has been resolved with the sine market now in an approximately balanced supply-demand position. Improvement was also seen in the lead situation but some over-supply was still in evidence, requiring atten tion for a time. It is clear that the Study Oroup has amply demonstrated Its value and I hope that it will continue cn a permanent basis. It seems to me that such an international group could provide a continuing forum for the discussion of major industry problems which have international implications. It is also In an excellent position to set up committees which could investigate and report on matters of mutual concern. Unbiased, factual reports thus provided could b the basis for recommendations to governments for appropriate action. One area for auch study might be the effects on the lead-zinc industry of governmental restrictions and other legislative action regulating international trade. Another area of increasing international co-operation that I should like to discuss is in the trade associations, of which I can mention only one or two. The American Zinc Institute itself now has mory associate member* representing an important part of the industry outside the United States. Associate membership allows full participation and representation on the In dustry Development Committee and pertinent subcommittees, an arrangement which in my experience is entirely satisfactory. In the other direction, I think of the Zinc Development Association, whose headquarters are in London, England. This Association formerly obtained its support from the United Kingdom, Australia and Canada, and was mainly concerned with promoting the use of sine within the United Kingdom, although its literature was also circulated in s i **. ?-&****it* LIA21120 w<; i - U- R. HENDRICKS Australia and Canada. Recently the interests cf the Association have been ex tended to Europe and now there are a number of parallel co-operating association* in various European countries. Still more recently a number <$f companies in the United States have been contributing to the support of the Association and par ticipating directly in its activities. The Zinc Development Association Includes a number of committees work ing in specified fields in the United Kingdom and aimed at furthering particular uses of sine. There are also affiliated groups, such as the Zinc Pigment Develop ment Association which is planning a co-operative research program on sine oxide and lithopone in emulsion paints. Other groups concern themselves with rolled line, hot dip galvanizing, analytical techniques and other fields. Among the co operating European committees, I might mention the European Zinc Producers' Technical Committee which, at this time, is having a meeting in London to which supporters from all over the world were invited. Also, the European Pressure Die Casting Committee has an international conference scheduled to be held in Stress, Italy, next month. The previous conference in this series held in Paris in 1957 attracted over 300 delegates from 15 countries, and that to be held next month is expected to be even wider in its Interest. I was pleased to learn that over 70 delegates are expected from the United States, Including official teams from the American Die Casting Institute and the American Society for Die Casting Engineer*. Representatives from Canada will also be attending. Similarly, the European Central Galvanizers Association is planning an international conference on galvanizing to be held at Interlaken, Switzerland, In 1961. More could be said on this subject but I give these as examples of how V trade associations, originally relatively local In interest, have, during the last few years, been used as a means of International co-operation to develop the us* of lead and zinc throughout the world. I hope that as individuals, and ' ...... *'......... ' LIAP1121 -5- R. HENDRICKS r> in our own particular trade associations we will extend co-operation of this type i > X an confident any such action would work out to the mutual advantage of all con cerned. Another very encouraging evidence of co-operation is in our own AZI and LIA Expanded Research Program. Yesterday Dr. fiadtke reported the work on lead and later today he will review that on line. I do not wish to duplicate his re ports but I think it is worth remembering that the sponsors of this Program com prise 21* producing companies representing about half of the world's mine produc tion of lead and sine from three continents. I understand that other companies cot now participating are anxious to Join us in this work. I am sure that aqy such who are active in the lead-iinc Industry would be welcomed by the present sponsors. It is also worthy of note that the actual research work sponsored under the Pregram is being carried out wherever the situation is favourable, re gardless of international boundaries. It is mc.=t heartening that this fine level of co-operation has been achieved, and I believe that you will agree with me that the results augur well for the future. However, if the industry is to enjey the full benefits from the re search work which we are supporting financially, there are a number of things which we can and should do. The responsibility of producers and fabricators is not ended until research results are translated into commercial products and sold in the markets of the world. We roust keep in close touch with the research programs and exploit the results in our own operations and products as may be applicable. We roust see that our engineers and technical people are constantly aware of their responsibility to evaluate and apply research findings in this way. In the research and development effort of our individual companies we must plan programs which will co-ordinate with the Expanded Program and further the consumption of lead and alnc. LlA?ll22 / / H. HhNDttICKS While there Is ground for encouragement In our research work, there Is no room for complacency or thinking that we can reduce our efforts. Competition is extremely active and is coming from directions not thought of two or three decades ago. Let me mention Just two examples to illustrate what I hare in mind. After 12 years of research and development at a reported cost of $6 million, DuPont Company now has under construction a plan to manufacture "Eycrll.* This is a new plastic printing plate material which will compete with zinc In litho graphy and photoengraving. Another plastic developed by DuPont, Delrln," 1* threatening zinc in die casting. Delrin is a product of 10 years of research and development, reportedly costing million. To meet this sort of competition will take our best united efforts if zinc and lead are to have the place we want for them in the markets of the world. Although we are off to a good start, it is obvious that our research program must be greatly expanded and backed up ty the whole-hearted co-operation of all participating companies. At this p>olnt I must beecne more specific and attempt to give you a factual picture of the consumption of lead and zinc in the various parts of the world together with indications of the prospects for growth. In the present discussion, referemes are to the Free World because we do not have reliable statistics from the Soviet Bloc. However, metal from this area is appearir^ in Free World markets and we must keep these countries in mind and hope that in due course information from them will become available. According to preliminary estimates, world consumption of both' zinc and lead improved in 1959, reaching levels appreciably above those in 1958 and practically regaining the previous peaks in consumption reported in 1955* Had it not been for the steel strike in the United States, world consumption of zinc would certainly have been the highest on record. With further improvement forecast for both metals in I960, the tide appears to have turned and world consumption of both metals to be moving upward again, though at a relatively j LIA21123 V"" *: :-;x-.:j *;_ -7- H. HENDRICKS slew rat* unless we can achieve a break-through ty new development*. While the world picture 1* somewhat encouraging, that here In the United States la far otherwise. Although tine consumption at 93L,OOQ tons In 1959 was considerably above that in 1953, It was no higher than in 1957 and appreciably less than in a number of earlier years. Since it had been hoped that consumption would reach at least 1 million ton* in 1959, the actual achievement le certainly dlaappolnting. It is true that one important reason was the eteel strike, a factor beyond our control, and with this settled the Department of Commerce now suggests about 1,100,000 tons consumption in 19&>. This would be an improvement but it would still not reach the level of 1955. We thus have to face the disturbing situ ation that while the general industrial activity of the United States is advancing and while maty other countries are increasing thsir consumption of sine, here, in the world's most important single market, ground is being lost. It Is evident that ve must continue to seek methods of increasing the consumption of zinc, recapturing, if possible, any uses that may have slipped away too easily, and strengthening present uses which may be threatened. In this connection the importance of main taining a stable price that is competitive in all aspects with other materials can not be stressed too often. Having given you the dark side of things I should mention seme bright spots. It is encouraging to see the increased demand for galvanized products. Seme aspects of this industry will be discussed by Hr. Jennings later today. Mean while, may I say that I foresee a tremendous potential for galvanized products if we can ensure the quality cf material and actively encourage its use wherever properly applicable. The *inc die casting industry is a classic example of co operation in action. The success which this industry has achieved In offsetting further Inroads by new materials is noteworthy, but, as I have alreety Indicated, the Job is not finished. It never will be. While the Industries mentioned t mm J*my --- nn.w,W|mrtWlttLB>,g>(Vff fM*T*'v HS j LIA21124 \ ^V~sasSOifi- 8 R. HtNDfUCkS constitute the bulk of alnc slab consumption In the United States, v must not t |: t neglect the numerous small uses of tine which make up the balance, for X think It Is generally true that existing uses can be maintained and expanded with much i leas difficulty than Is required to develop a new use. Kary of oy remarks concerning tine apply equally to lead. In 1959, the United States consumption of lead at 1,083,000 tons represented an increase of about 100,000 tons over 1958, but this was only a return to the sane level as In 19U3 and was still considerably below that In 1950* If we allow past condi tions to continue we thus have no basis for expecting significant Improvements in the future. p No doubt we can adduce various reasons which account for the declin ; ing use of lead, but In so doing we merely point cut Instances where competitive materials have taken over our markets. The situation challerges all of us to support an aggressive program of research and development In order to protect the markets we have and develop new ones. jl After these critical renarks retarding consumption in the United States, I must hasten tc add that we are in little, if ary, better situation In lr ' Canada. Zinc consumption at 68,000 tons In 1959, tncugh higher than for several years, was well below that In 19'u2 and 191*3, Even so, 1959 Is con c sidered to represent an Inflated demand due to the steel strike in the United r I States. Galvan!?.ing Is the most encouraging specific use cf alnc In Canada but die castin", brass and others are relatively disappointing. Primary load con i , sumption at about >*5,000 tons In 1959 was below that in 1955. As elsewhere, ;c decreases In the use of l^ad i.i cable eheithin, and pigieats were aarkt-a. i Canada Is thus a..other country which needs ag* -easlve research and we ho;* that V. the results of the Expanded Program and individual activities will lead to a real Increase, not only as population increases, but In consumption per capita. $&***?' LIA21125 Vtjpf **< *s& -if - -9 - R. HENDRICKS Before I apeak about the consumption of lead and sine In Europe I should like to say a few words on the European Common (Urket (the Inner Six) and the European Free Trade Association (the Outer Seven). The formation of these groups highlighted the economic and political developments In Europe during the past three years. The Inner Six (France, West Oermary, Italy, Belgium, Luxembourg and the Netherlands) fora a compact geographic and Industrial group In Europe with a market of 165 million people. The Seven Free Trade Associates (United Kingdom, Norway, Sweden, Denmark, Austria, Portugal and Swltterland) encompass a total population of some 90 million with a combined national income two-thirda as large and total trade three-quarters as large as the six Ccmon Market Countries. Both groups have as their current objective the attainment of free trade within their boundaries through the progressive removal of tariffs and quotas on industrial products. Basically, however, the Common Market purports s to be but the first step towards the ultimate goal of complete political and economic integration, seeking eventually to place industries in member countries on an equal competitive footing. In contrast the European Free Trade Area is a plan for a free trade area only, and member countries will keep their individual tariffs applicable to non-members. In both groups, it would seem that the possibilities for tconcmic development and industrial expansion are vastly im proved, provider, that trade on a world basis is not stifled. It has been feared that the Inner Six might surround themselves with a high tariff barrier, making the area practically inaccessible to the rest of i the world. However, the rates which have been announced by the Ctwm.t. Market have demonstrated a enditabV* spirit of co-operation. For lead and cine s*tl, the tariff is to be 0.6d (U.S.) per pound, while ores, waste and scrap will be exempt. In addition, eiijnific.tat propertions of the metal irrorts cf individual 11ir 1TT ir.Tr'11 LIA 21126 ) t y -JU - 10 R. KENDRICKS countries will also be exempt. As tariff* go, these proposals must be consldersd reasonable and' indicative of a willingness to trade with other countries in good faith. It la expected that by the formation of the Common Market and Free Trade Association, living standards in the participating countries will be raised, thus creating a demand for consumer goods which otherwise would have taken maty years to develop on an Individual basis. Already the European market is under going a revolution that many of us on this side of the Atlantic may not fully appreciate. Incomes in rising and are being translated into higher living standards. Europe is in the midst of a break-through to mass car ownership such as took place in the United States in the 1920's. Present total vehicle popula tion in the Common Market countries is 16 million and by 1970 is expected to reach 38 million. This is only one example of a growing industry in which much lead and sine is consumed. Similar growth is being shown in the construction in dustry and there is a great increase in demand for all types of appliances. All of this augurs well for the fugure consumption of raw materials, and we, as pro ducers and fabricators of lead and zinc, must do our utmost to ensure that our products are priced at levels that will permit the fullest participation in tills economic expansion. To do this we must keep our costs down and encourage free trade wherever and whenever possible. The total consumption of zinc in Europe has shown almost uninterrupted growth since 195U. and since 1956 it has exceeded that in North America. Germary, France and the United Klngdca together account for almost 70 per cent of the European total and 30 per cent of the world total. One of the most premising U3ea for ziw in Europe Is in galvanizing. There are now four continuous strip lines in the United Kingdom, sll working at capacity, five in France, two in Belgium with a third under construction, and three in other countries. LIA21127 - 11 R. HENDRICKS f Oalvanized sheet is being used in some automobiles and galvanised structural steel is finding continuously wider use for buildings and other purposes. Zinc i spraying is also maxing good progress with more than 1000 tons expected to be I | t used on the new Forth bridge in Scotland. Zinc die casting in Europe has never experienced the same growth as in the United States. On the other hand, in f spite of much dissatisfaction with plated products there was not a marked treDd away from then, lbs average Britiah car now uses about 50 pounds of die casting and with the results of recent research available, it is felt that this appli cation is secure for the present. On the Continent, however, much less tine is used In cars, and it has been reported that in Francs automobile manufacturers are turning to plastics because of what they tern the present high cost of sine. In Europe the decline In lead consumption during the last few years now appears to have been wiped out and the estimated 1559 total is up to that for 1955. Qermaiy and France show the most encouraging growth at present, but consumption in the United Klngdca also improved last year although the outlook for I960 is not considered too good. Our friends in the Lead Development Asso ciation, while active in various projects of their own, have particularly asked me to stress the importance that they place on the Expanded Research Program and to assure you of their desire to co-operate in ary way they can. Turning to Australia and New Zealand, sine consumption has generally been better maintained in recent years than in maiy other countries, and pre liminary estimates are that 1959 consumption will about equal the former peak of 1957. As elsewhere, galvanizing is of major Importance but die castir^ is also showing good growth. Lead consumption, on the other hand, has not been doing so well and in 1959 was apparently less than In aty year since 195b< This is in spite of the fact that in these countries lead still has an impor tant place in the cable sheathing Industry. Ons remarkable point about Australia and New Zealand is the high per capita consumption of both lead and LIA21128 - 12 R. HENDRICK3 i line. In this respect they are well above the United States and far ahead of Canada, a country of roughly comparable population. Let us now take a quick lock at Asia where Japan le the outstanding country as far as our present Interests are concerned. As a result of aid from the United States coupled with vigorous local activity, the economy has shown re.nar>able recovery and continuing growth. In sine consumption there has been uninterrupted Increase for at least 8 years. The consumption for 1959 is esti mated to be close to 170,000 tons, nearly 2$ times that in 1951- A number of continuous galvanizing lines are now in operation In Japan and In 1958 the sine consumption in galvanized sheet alone was over 76,000 tons. This may be com pared with less than 20,OX tons, ten years previously. Die casting has also developed strongly and in 1956 accounted for 10,0CO tons of zinc. With further growth expected in automobile manufacturing, the die casting industry should continue its progress. Lead consumption in Japan has not been so satisfactory. Although in 1959 consumption reached 75,00 tons, a 12 per cent Increase ever 1958, it was still more than 20 per cent below that in 195?- Again the main loss was in cable sheathing, although consumption in other uses also declined. It nay be expected that the growing automobile industry will strengthen the demand for lead. India, where Industrial development is only beginning, has considera ble potential as a consumer of lead and zinc but a major difficulty is the very limited domestic ore suprl.v and a chronic shortage of foreign currency for imports. The present consumption of zinc is about 65,000 tons per year, some 50 per cent of v..; ch is us : ir. galvanising. At least one cf the new State-owned steel Mills is expected tc be doing galvanising within a few months and tne growing demand for consumer products should increase activity in zinc die casting. 0. fie i,il fcrvcnftv suggest about 170,000 tons annual consumption i ( r r t. 1. k W J.J LIA21129 \ !I !O i C) 13 R. HENDRICKS ty 1970. In view of the currency difficulties, the Government tends to favour aluminum since domestic raw materials are available for local production. Lead consumption, now about 22,000 tons per year, Is expected to Increase to about 55.000 tons per year by 1970. I suggest that India deserves our serious atten tion to see If there is not something more that the industry might do to pronote uses of lead and zinc. Elsewhere In Asia there are some possibilities. For Instance In the Philippine Islands a galvanizing industry is developing that could consume 15.000 to 20,000 tons per year of zinc in the foreseeable future. It has also been reported that the Philippines will be making their own cars in the next three to five years. Information on Ccaaunlst China is sketchy and unreliable, but produc tion of refined zinc in 1959 is indicated at 66,000 tons and at this level the supply is estimated to be slightly deficient. The production of refined lead in 1959 is indicated at a little over 80,000 tons. A slight deficiency of lead is also indicated. Consumption of lead and zinc in South American countries has not shown apy startling growth in recent years. The consumption of zinc in 1959 is estimated at about 50,0j 0 tons, up 3lig'ntly over i-ecent years, while lead at an estimated 70,000 tons in 1959 is also slightly higher than in rece nt years. These countries seem on the brink of further industrial develcjmeut with the reported increase in uto--otlve production, using I'm illy manufactured parts wherever possiblo. This industry is hi.'ng developed to red-ce the irain foreign exchange. It has K-eo estiwited that t;e prouei-t zinc rcnsun.ption of Brazil, which is about 20,000 tons per year, will rise to 37,000 tons in I960 with a further expansion to 51,'Xa ) tons opectud by ld65. It has also been reported T t jpplllljpBtiyTritiini Wl>i|iiwiiiiirrrijTn~~iir~rriiiirf-rr'; iTl'Trrri-riT i - r i " 'i'.i.f... ....... '' I.... . LIA21130 t - U* - R. KXRDRICKS 11 th*t. ^ now plant for the production of die castings in Brasil is to be ciuov ''ctec-. The current consumption of lead in Brasil is about 25,COO tons and is said to be on the increase as a result of the automobile industry. The consumption for I960 is forecast at h0,000 tons. Finally, let me say a word about Africa. Statistics of consumption are conflicting, some shewing continued increase over a nuafcer of years and others a substantially static condition. However, they all agree in reporting that the con sumption of lead and sine is very low in relation to the population. Africa is awakening and will no doubt make rapid strides towards industrialisation. The con tinent has abundant resources in lead and sine and I believe has also a great 1 potential as a consumer of three rtetals. At this time there may not be much that wo can do directly to promote the use of our metals in Africa or in other parts of the world where much of the country is based on a traditional agricultural economy. However, we should be aware of these countries and on the alert for opportunities as they progress towards maturity. I have reviewed seme of the encouraging signs of increasing co-operation and I have discussed seme features of consumption In specific areas, all of which should impress upon us the international character of the lead-tlnc Industry. It has been stated on good authority that interrational trade is now generally freer of restrictions than at ary tins in the last 30 years. This is good, but unfor ` tunately, and particularly aa affecting lead and sine, there are areas where artificial barriers have recently been set up and where various political situa tions are still a serious hindrance to trade. I would be remiss if I did not point out some of these and urge that we approach our individual problems in more broad-minded and co-operative attitude. First I want to urge that as a general principle Industry should try to solve its own economic problems rather than appeal to governments for help. iM *A2i - U* H. HENDRICKS th.it * rt)V plant for the production of die castings in Brasil is fo be cc..,k * >cteu. The current consumption of lead in Brasil la about 25,000 tons and is said to be 1> f I' i t on the increase as a result of the automobile industry. The consumption for 19to is forecast at Uo,000 tons. Finally, let Be say a word about Africa. Statistics of consumption are conflicting, some showing continued increase o*er a mnbber of years and others a substantially static condition. However, they all agree in reporting that the con sumption of load and ainc is very lew In relation to the population. Africa is uwakening and will no doubt make rapid strides towards industrialisation. The con tinent has abundant resources in lead and sine and I believe has also a great potential as a consumer of these ratals. At this tine there my Dot be much that we can do directly to pronote the use of our ratals in Africa or In other parts of the world where ssuch of the country Is based ca a traditional agricultural economy. However, we should be aware of these countries and on the alert for opportunities as they progress towards maturity. X have reviewed sera of the encouraging signs of increasing co-operation and I have discussed sone features of consumption in specific areas, all of which should impress upon us the international character of the lead-iinc industry. It has been stated on good authority that international trade is now generally freer of restrictions than at ary time in the last 30 years. This is good, but unfor tunately, and particularly as affecting lead and ainc, there are areas where artificial barriers have recently been set up and where various political situa tions are still a serious hindrance to trade. I would be renlss if I did not r point cut seme of these and urge that we approach our Individual problems in a [ >. more broad-minded and co-operative attitude. First I want to urge that as s general principle Industry should try to solve ite own economic problems rather than appeal to governments for help. ffWVtrf--. mm -- "'",l 1 ............ LIA21132 "> I j i i - 15 - R. HSNDRICXS If v, as producers, could get together on an international basis and frankly ex change ideas and discuss the broad Industry problems, I believe we would find that vary of our ultimate objectives coincide, and that we could work out ways of dealing with our own problems. X recognise the responsibilities of government to take csre of national welfare and the authority of government to regulate indus try accordingly, but I believe that all of us in industry have a tendency to appeal for government aid unnecessarily. When cyclical situations of over-supply arise due to decreased demand, lead and sine sines and smelters throughout the (orld inevitably suffer hardships and individual countries can not Insulate them selves ty government action. What la needed Is to take steps that will reduce cr eliminate these periods of low demand by keeping consumption tuoyant and growing. Experience in recent years Indicates that the various interferences of goven>ments have tended to aggravate the cyclical swings and added generally to the problems of the whole industry. Further, government aid inevitably naans govern ment regulation and, la the long run, this leads to government control cf Indus try. There is no longer a general world-wide shortage of dollars, but a number of countries, particularly in the Far ha3t, still have serious curreicy difficulties and as a consequence their imports of lead and sine are closely controlled. As I have alrMcy mentioned, seme countries foresee this as a long term problem and are there fore discouraging the use cf lead and zinc which have to be imported. V.'e can understand this situation ana recognise the need for sore government regulation, tlevertheh :.s, we feel that freer conditions of trading are normally preferable and certainly better for the lead-xinc industry. Meantime it may be possible for producers in specific cases to accept local currency for sales of metal and use this in some way to finance exports. At least we must be aware of the problems In the convertibility of currency and LIA21133 16 - R. HENDRICKS take an interest In markotlng within the country to ensure that, as far as possi ble, the ultimate consumer receives adequate supplies at reasonable prices. Coming closer to home, we still have quotas restricting Imports of lead and sine into the United States. These were established in October 1958 and re cent reports indicate that the Administration and Congress have no present inten tion of removing them. This is so in spite of tho many objections that have been raised. For example, last August six major United States lead and tine smelting companies, representing about one-ha If of the smelting and refining capacity, issued a statement opposing the quota system. In recent hearings before the United States Tariff Commission domestic smelters testified that a ccntiraiation of the quotas is a serious threat to the future of the lead and zinc industry. Our Canadian Government and that of Australia have repeatedly urged their elimi nation. At the recent meetirgs of the United Rations' Study Group held in Geneva, delegations voiced concern over the continuation of the quotas and par ticularly that these restrictions, originally stated to be temporary, might be come permanent. It was pointed cut that lasting damage might result if such re strictions caused consuming industries to use alternative materials. Another point where co-operation is needed is in connection with Government stockpiles of lead and line. As you know, the United Kingdom stocks of xlnc, amounting to about 53,000 long tons, are to be disposed of during the next four years. Intentions in this regard were announced at the United Nations' 1 Study Group meetings and views of other participants were invited. This approach and the assurance tiat disposal would have due regard for market condi tions are commendable. In view of the relatively snail quantity involved, urn may hope that Its dispotal will ?wt depress markets tc any extent and It will be good to have tho problem cut of the way. The stockpiles in the United States are, of course, mary time* larger |i! JI- i#^y|iiii!j||JP|gW|^B!<WppWWigp^^ ' -- Ll^2ll3^ 4 i - 17 - R. HENDRICKS s i: \ than those in the United Kingdom. Indeed, the quantities are eo great that unwise ti t | i i \ disposal could disrupt the world industry. They therefore can not be considered r: i 0 from a purely domestic point of view. This is shown by the fact that during the I: i period around 1956 when stockpiling was at its height, about 10 per cent of the f. total production cf the Free World was being withdrawn frcw the market. When pur chases were abruptly curtailed in 1957, prices deteriorated rapidly and the indus I try became depressed, a condition from which it is only now recovering. Stock piles of lead and elnc may be necessary for strategic purposes to meet possible * national emergencies, but if so they should not be released except as necessary for this purpose. Certainly any precipitate action to dispose cf the United States Government stocks at this time could have extremely serious effects on the industry. I urge that no further major additions be made to these stockpiles of : j; lead and zinc and particularly that if ary future emergency should necessitate re r L lease of metal, consultation should first be held with industry on as wide a basis 5 F as possible. = Finally, T want to make a plea for the consumer. For too long industry V: and governments alike have overlooked the importance of consumers. At the vari ous meetings and hearings when the needa and claims of different Interests are presented and action is urged for their safe-guarding, seldom does aryone repre sent consumers or put in a claim for then. I suggest that it ia time that this omission was rectified, for our own well-being if for no other reason. After all, the major task facing our Industry is to stabilize and Increase world con sumption cf lead and sine and this will need careful attention to the Interests . of consumers. -i One of the prime requirements will be to see that adequate supplies of *I good quality metal are available at reasonable prices. Producers must keep the supply of metal coming out In line with market requirements, in poor times as fe ! LI A 2 113 5 <i *yr 18 R. HENDRICKS well as good. We must do our best to maintain reasonable and stable prices and these can not be considered solely on the basis of local costs. Corepetition oust be recognised, particularly fren alternative materials. Unduly high prices may give temporary benefit but experience has shown that in the long run they are detrimental to marketing. On the other hand, very low prices, Insufficient to maintain a satisfactory level of world production and good quality, are also harm ful. Similarly, high tariffs, quotas and other such restrictions, though they protect high domestic prices, fail to give adequate consideration to the in terests of consumers. Further, such restrictions place manufacturers of products containing large amounts of lead and zinc at a disadvantage when competing with foreign manufacturers. They thus hinder exports and Increase the difficulty of balancing international payments. Imbalance of trade is currently causing con cern in the United States, and it is also a cause of great concern to us in Canada. I believe that the long-range remedy lies in Increasing productive capacity at lower costs, and in encouraging freedom of International trade. 1 was interested to note that this position is supported in a recent statement tqr the Committee for Economic Development which represents leading business Indus tries in the United States. I have tried to give you a picture of the growth of world-wide co operation which is developing in the lead-zinc industry. As compared to condi tions a few years ago, there has been definite improvement in the general health of the industry, and there are many signs of encouragement. At the same time, as we are now entering the 1960's, there are still raary problems facing us. International co-operation has greatly helped the lead-zinc Industry in its technical problems and in its breeder marketing problems. With continued ? tii iifii iW iM ttit'd i iT illlftli , ii !f I( --o'11' ~' T--|"1" T'~,f~r ' L1A21136 ..v - 19 - H. Kt.NDR.ICKS sincere and progressive intermtioml co-operation I believe that our industry * can look forward to a bright future in which our products will find over-lncreas ing applications in the service of nanklnd. ### I i