Document MJ2nDVMNw3OexBnzbYZxxa4dy

/ MINUTES. / I3ECJTIVS COMMITTEE MEETING National Paint, Varnish and Lacquer Association, Inc. Palner House - Chicago, 111. U, 1938 A lar meeting of the Executive Committee of the National Faint, V: La: Association , Inc. convened at ten-thirty A. M., (D. S. T.) Thu: y h, 1938, at the Palmer House, in Chicago, with the following in ait E. A. Foy E. D. Griffin M. L. Kavey ' 'ells Martin S. R. Hatlack H. A. .'.'slum J. Vincent Reardon C J Roh C. N. Seidlitz F. L. Sulzberger Ernest T. Trigg H. E. v;.-,l>3tar V. Yiurtole Y7n. 2inti. GUESTS D. W. Figgis George A. Martin E. S. Phillips 'Caylend W. Rice ASSOCIATION STAFF H. A. Gardner M. Q. Macdonald ABSENT Reuel Vi. FIton Howard Kellogg D. A. Kohr do Lancoy Kountze - represented by E. S. Phillips J. B. Lord Benjamin Patterson, Jr. Herbert Rice - represented by Wry lend W. "ice CALL TO ORDER The Chairman, Mr. Frank L. Sulzberger, called the meeting to order with an inceaent of the passing of a member of the committee, Mr. E. J. Cornish. MEMORIAL TO MR. CORNISH The Secretary read the following memorial to Mr. E. J. Cornish: "The Executive Committee of the National Paint, Varnish and Lacquer Association, Inc., having been apprised of the death, on May 3, 1933, of their old friend and associate, EDWARD JOEL CORNISH hereby record their profound sense of loss: RESOLVED that in the death of Edward Joel Cornish, not only the industry but the individual members thereof have suffered an irreparable loss. During a third of a century Hr. Cornish has been fox exemplar of unsolfish Service in its behalf, un sparing of his time, interest -and advice. N C A 0 0284 s President of the Natichal Paint, Oil and Varnish Association, as a member of the Educational Bureau, and as a number of the Executive Committee of the National Faint, Varnish and Lacquer Association his contribution to both the practical and moral pro gress of_the industry has been invaluable. As a fellow worker, ;ve shall miss his vise counselj as a construct ive advisor, we shall miss his sound advice; and as a personal friend, r.e shall long mourn his absence from our meetings." The Chairman requested all members of the Committee to sign + he a Iced that when the signatures of absent members had been secured, r U - Id be forwarded to Mr. Cornish's sister, Mrs. A. B. Metcalf, in C ELECTION OF SUCCESSOR TO MR. E. J. CORNISH -j 1 ~i The Chairman stated that Section 3 of Article V of the By-laws of this As sociation provides that;- "All officers or memberships of the Executive Committee which have been declared vacant by death or by action of the Executive Committee shall be filled by a majority vote of the Ex ecutive Committee." The Chairman called for nominations for election to fill the vacancy caused by the death of Mr. Cornish. Mr. C. J. Roh presented the name of Mr. Harold Rowe, Vice President of National Lead Company to succeed Mr. E. J. Cornish. There being no other nominations the Chairman called for a vote on the election of Mr. Rowe and Mr. Rcwe was unanimously elected a member of the Executive Committee for the balance of the term to which Mr. Cornish had been elected, expiring in 1939. MINUTES OF LAST MEETING The Chairman stated that the minutes of the preceding meeting had been mailed to all members of the committee, and that the agendum for this meeting would take care of any unfinished business carried over from the past meeting; he stated that if there were no objections, the minutes of the last meeting would be approved without reading. There being no objections, the minutes of the meeting of the Executive Committee of April 5th, 1938, were approved without reading. \S REPORT OF BUDGET AND FINANCE COMMITTEE AND OF THE TREASURER_____________________ The Treasurer, Mr. C. J. Roh, reported that the Budget and Finance Committee met this morning at 8:30 o'clock for the purpose of reviewiig the balance sheet as of June 30th, 1938 and the statement of income and expenses for the nine months October 1st, 1937 to June 30th, 1938 (copies attached) Mr. Roh stated that the cash position of the Association is approximately 84,300 better than it was at this time last year - that accounts receivable are slightly more - that securities have about the same book value and are worth somewhat more at the market value - that inven tories are down - that the item for building and fixtures is the same less depre ciation - that deferred income is about tho same - that all departments of the IX -2 MCA 0 02344- association are operating within the budget,' and that all bills are paid. Mr. P.oh pointed out that at the beginning of the current year the committee had predicted an increase in dues of approximately five per cent whereas the actual increase to date was approximately eight per cent. Mr. Roh reported that the Budget and Finance Committee considered the association to be in good financial condition r.r.d the records in good shape. He expressed the belief that the * + that the association budget is under excellent control. Mr. Sulzberger suggested tlaat it night be helpful to members of the cc-nitt..u \ > /- if in the future pages one and two of the statement coveriiig the balance shoot, ' and the statement of ir.eeus and expense might carry comparative figures for the similar period of a year previous, Mr. F.oh stated that on the next stat.-n. :r.t * information would be given. It was moved by Mr. V>urtole, seconded by Mr. Mutlack, that the report of che Treasurer and of the Budget and Finance Committee be approved. Motion carried. REPORT OF SCIENTIFIC SECTION Dr. Gardner presented the following report for the Scientific Section: Since the neeting of the Executive Committee on April 5, 1938, the following Scientific Section Circulars have been issued: No. 558. Studies on Mildew Prevention. This circular presents the results of extensive tests at Panama and in Florida. It is accompanied by a brief pink circular which can bo used by salesmen in handling com plaints. No. 559. Preventing Nail Rust Stains on Painted Siding. Staining of painted siding due to rusting of nails is described and methods in dicated for preventing these stains in order to secure much more satis factory appearing jobs. No. 560. Avoidance of Paint Peeling on Air Conditioned - Insulated Dwellings. This circular was finally issued after extensive correspon dence fund conferences with representatives of the insulation industry. It should prove useful in handling complaints regarding defects caused by moisture in air conditioned dwellings. No. 56l. New Method of Treating Bituminous Roof Coatings. This cir cular outlines a novel treatment for bituminous roof coatings to extend their life and reduce summer temperatures in buildings on which such materials are used. No. 562. Temperature and Humidity Effects in Untainted and Painted Brick Structure?. This circular presents the results of a year's study. Two small brick houses, one painted and the other unpeinted, were used for the tests. In the houses delicate recording instruments were placed, The lower temperaturo of painted brick structures in summer is of con siderable interest. No. 563. Painting Ct.uent-Asbostos Compositions. This outlines why ctmant-eabestos shingles ucc-d for roofs and siding should be painted, and the preferable methods of treatment. -3- NCA 0 02245 / No. 564. A Machine for Determining Rrushabilitr* of Paints. A ! rfr_>1 . and practical instrument for determining the brusLability of paints has been developed, and considerable experimental v;crk done v;ith it. Results are presented for many types of paints and enamels. No. 565. Perilla and CMa Planting Experiments in 1937 and 19~3 jr.--c-g r Scale Plantings. This gives a summary of the results obtained in xperimcntal plantings during 1937 ar.d outlines the larger plantings rilla end chia made in different parts of the United States in 1933. so of selection of the most favorable locations for this ye.-ur'e ir.gs, it is hoped that better results will be obtained. No. 566. Recording in Pc-rc ?nta?es the Fading of Colors in Pafr.Z s._::d TV -/.Is. A graphic method of s'homing the percentage of fading -vhie n1^ occurs n colored paints and enamels are exposed to the ..gather is out!i. d. Special Circular, Mildew Co~rl?-ints and Prevention. This brief cir cular v.ill enable production men to treat paints to prevent mildew, arid will be of use to salesmen in handling complaints regarding mildewed paints. Special Circular. Painted Shingled Dwellings. This circular was pre pared in cooperation with the National Retail Lumber Dealers Association. Twenty-five thousand copies have been printed for distribution to every lumber dealer throughout the United States. It should greatly extend the use of paints upon shingled side walls. Abstract Review No. 54. This contains several hundred abstracts of patents, technical articles, etc. Index of Scientific Section Publications, 1907-1937. This contains 15,000 entries on subjects which have been treated in the publications of the Scientific Section since its inauguration in 1907, including 54 Bulle tins, 546 Circulars, a number of Special Circulars, end five books. A list of all these publications is included in the Index. Included in the work of the Scientific Section has been the task of reviewing specifications which have been prepared by various bodies, such as the Painting & Decorating Contractors of America, National Lumber Manufacturer^ Association, and various government bodies. Somewhat similar work ha3 been ccarried out in the reading of the text of articles prepared by others on the subject of paint. These articles have been sent to us by the authors for review, correction, and additions. A large number of such articles have been carefully gone over during the past few months. Chapters on paints and painting, which have been prepared in previous years for such well known text books as Rogers* "Industrial Chem istry" and Marks* "Engineers Handbook" have al3o been reviewed in proof form during the past month, in preparation for new editions of these pjfclications. Members of the Scientific Section staff attended the meetings of the American Society for Testing Materials during the month of June. At these meetings there wa3 proposed a finished specification for interior flat wall paint, to become a standard of the Society, while this specification was -4 NCA 0 02846 ! based on physical tests and was similar to that now used by the U. S. Government as a Federal Specification for government purchases, it v.ms the belief of the Scientific Section that it would be a fallacy for a technical society to adopt this specification for use by its members representing such large industries as iron and steel, cement, brick, tile, textile*, rubber, and other organizations which are important .-.em bers of the Society. Accordingly v;o were able to have the specification tabled. It will not be printed or issued this year. V'e have also sug gested to the Society the fallacy of setting up specifications for finished paints. Scientific Section has also been cooperating with the _r_ e^ .. petition Bureau in checking costs on goverment spec:ification pa:-its '-hi,ch have been sold at low prices, and in analyzing veiy low grade paints whi ch leave been picked up on the market. Claims made in sdvertis-ra-r.ts have a Iso been reviewed for the Unfair Competition Bureau. Other studies in progress in the laboratories at the present ti as follows: e Soybean Oil. Cooperation with the U. S. Regional Soybean Industrial Froducts Laboratory in repeating their experiments on improving soybean oil for use in paints and varnishes. Mildc-w. Another comprehensive series of exposure tests of treated paints to prevent mildew has just been inaugurated in Florida. Comoatabilitv. Photographic studies are being collected. V'c are grad ually securing a number of additional photographs and case histories. Floor Finishes. Experimental work on finishes of various characters for stair trends and oak floors is under way. Abstracting. This activity continues to take a large portion of time. The Abstract Review appears bi-monthly and yearly contains several thous and abstracts. Putty. At the request of the putty group in our Association, who desire to have the Bureau of Standards issue a Federal Specification for putty for steel sash, we are carrying out an extensive series of tests. We are en deavoring to develop apparatus that will show the consistency and stickiness of putty. It is necessary that such apparatus be developed before specifi cations can be prepared by the National Bureau of Standards. Film Swelling. The swelling of paint films, due to water absorption, is a natter for very careful physical measurement. Research work in this dir ection has been started. Synthetic Drying Oils. Comparative studies of various recently developed dehydrated castor oils has been under w;iy for several months and will be con tinued. Analytical. The International Standrd3 Association methods for lithopone end zinc oxide have been studied during the past year, in cooperation with scientists in various European countries. Reports were made to the Berlin conference in June. Further work in this direction is contemplated for the following year, covering all existing white pigments and sone colored pigments. -5- NCA 0 02347 Railroad Finishes. A series of tests of loeemotive and railroad coach finishes was undertaken several months ago. Fainted panels were exposed dulling the winter months in a cold clirate and have now been shifted to a hot climate.. Occasional washings and gloss readings are to be made. High quality finishes as compared to inferior finishes have already demonstrated their superior value. Fhvsical Tests. In order to point out to consumers of industrial fini shes, as well* as to consumers of other finishes, the desirability of re quiring only physical properties in selecting their purchases, a special publication on this subject is contemplated. For this purpose we are deve loping a series of carefully devised physical tests to measure the proper ties of finishes. h'hen this work is completed early in the fall, the tests will be pictured and fully described in a publication for the benefit of the Industrial Division. Dr. Gardner reported that the Scientific Section had not received sufficient photographs to complete their exhibit tending to disprove the comparability theory held by Dr. Brown of Forest Froducts Laboratory, and he requested the members of this committee to ask their sales managers to secure as much photographic evi dence as possible to assist the Scientific Section in building up its exhibits. Dr. Gardner stated that the Scientific Section had been called upon to inspect 800 houses in Oklahoma City, Oklahoma on which the paint failure had bcc-n pro nounced. He referred to a 50-page report containing 30 or 40 photographs as a result of the survey, and stated that the report indicated several outstanding facts: 1. Gross violation of F. H. A. specifications in construction. 2. 20% of water in lumber both at the yard and in the houses whereas there should not be over 15$. 3k Very little insulation was vised, thus eliminating this product as a possible factor in the failures. 4. Use of natural gas in open burners for heating purposes developed an enormous amount of moisture which had to seek an outlet. Dr. Gardner stated that a Scientific Section circular would be developed on this subject after further studies in other fields could be completed. President Trigg expressed the belief that this matter was so important that the Association should take the subject up 'with tho Federal Housing Administration without waiting for further studies!, and that a brief statement should be sent to all members of the Association calling their attention to the situation. Mr. Sulzberger expressed the opinion that the Association should not go on record as condemning natural gas even by inference, until other fields had been studied and he urged delay of the publication of this report as r. scientific study, but he epproved Mr. Trigg's suggestion that a brief statement regarding the situation be sent to all members of the Association. There followed con siderable discussion of the subject, in which it was developed that there had been considerable "skinning" in connection with the application of the paint - two coats having been applied when three coat3 were called for. Mr. Havey expressed -6- NCA 0 02348 3.'-e concern that C-overr.ncnt Bureaus .narr.ed by inexperienced people .eight give t out damaging publicity as a result of the situation in Oklahoma City, but Mr. Trigg expressed the belief that both the Federal Housing Administration and H;ne Owners Loon Corporation would probably' consult with this Association before is suing anything on the subject of paint. Mr. Melun expresse-d the belief that it _ r.ight be advisable to prepare at least the preliminary statement on this situation on the subject of~poor construction, rather than on the use of natural gr.s. Mr. Sulzberger reported that Dr. Gardner had ` cen designated by the S-tc of State as one of ten scientists representing the United States, at an into national cherical conference held in Feme. ary In answer to a question by Mr. Sulzberger, Mr. Mecdonala reported + h:.t th.e Russell and Coiner bills providing for research in the development of tung mi otv drying oils had not been passed by the last Congress but that we had boon advised by the 3ureau of Plant Industry that $120,000 from one of the new appropriations would be available to that Bureau for bang oil work, and that an additional $20,000 would be available to the Bureau of Casuistry and Soils. PAINTERS LICENSE BILL President Trigg reported that the Executive Committee une-ninoualy approved by a nail vote the draft of a so-called "model license bill" (copy attached). Mr. Trigg reported that the bill as approved by this committee had boon referred to the Painters Organization whose Executive Committee will give it consideration at its meeting the last of July. He stated that a final report on the "Painters License Bill" will be presented to the next meeting of the Executive Committee. FORMULA LABELING President Trigg referred to a momorendua on "Quality Standards " (copy at tached), a copy of which had boon mailed to all members of the committee. He stated that this situation had been brought to a head because of a letter mailed by the Bureau of Standards of the U. S. Department of Commerce to members of this industry requesting information c.s to whether or not manufacturers are mark ing containers to indicate quality or conformance, with "nationally recognized specifications", and also asking for sample labels. Mr. Trigg stated that a thorough investigation of the situation mokes it apparent that the time has come when something must be done in this industry for the protection of over-the-counter buyers. He expressed the belief that if the industry does not do something itself someone will do it for them, and in a way not so acceptable. Mr. Trigg referred to the Boren Bill, H. R. 10879 proposing the creation of a "Performance Standards Beard empowered to direct the establishment of performance grades for any designated product - - and he also referred to a proposal to create a "Department of the Consumer" in the State of New York, the purpose of which would be "to develop standards and to fix prices." Mr. Webster expressed the opinion that if a bill similar to the Boron bill ware passed, it is probable the board so created might pay no attention to any action on the part of our industry, and he expressed opposition to taking any action on the question at this time. President Trigg stated that he was unable to get a-,ray from the feeling that if our industry does not do,something at this tine someone else will do it for us. He referred to a suggestion which had been nade that it night be possible to head off the move tov/ard standardization by recommending the use of "formula labeling". -7- NC A 0 02849  Mr. George A. Martin expressed the belief that this industry would be told in th/ very near future that something must be done regarding this situation. He referred to formula labeling as a "move toward cleaning up our ovm industry", and expressed the opinion that the government would welcome a move toward form ula labeling on the part of the industry and would not, for the time being at least, further oress the question of standardization. In answer to a question by Mr. Fey as to how formula label ing might be- :-nforced, Mr. George A. Martin expressed the belief that Congress wculd enact a Iv .y on .formula labeling if the industry indicated interest. Ke expressed the further belief that if the ir.dustiy docs not promote such a reg'ulaticn it .ill find it coif under the jurisdiction of the Bureau of Standards. President Trigg expressed the belief that if a letter wore addressed to mem bers of the industry recommending the use of formula labeling, it might be pos sible tc bring sufficient pressure to bear to have the recommendation carried out without federal legislation. In answer to a suggestion by Mr. Matlack that there is need for the develop ment of a common language understandable to everyone, Mr. Macdonald read the following formula which had been used in one case under investigation: "White Lead, Zinc and Calcited Lithopane............................47.17* Carbonate of Calcium..................................................................... 17.36 Oxide of Silicon................................................. 5.78 Linseed and Watorproofitig Oils.................................................21.77 White Blended Varnish Oil........... I............................................. 2.49 Volatile Mineral Solvents..............................................................3.76 Solution Oil of Pine........... ........................................................... 1.17 . 100* Mr. George A. Martin pointed out that in the early days in the industry it was felt that any formula labeling would wreck the industry, but that the use of formula labeling in those states requiring it has caused no great hardship. President Trigg stated that the North Dakota Formula Labeling Law had been res ponsible for the development of the Scientific Section of the organized industry and he expressed the belief that federal formula labeling would not adversely affect high grade paints, but that it would have a tendency to improve the quality of lower grade paints. Mr. Sulzberger stated that he wa3 opposed to any action on the part of the government even to the passage of a federal law on labeling, but he stated that manufacturers must recognize that consumers are demanding information as to how they can secure quality products. He referred to a suggestion made by Dr. Gardner in 1935 for the establishment of the "Institute of Paint and Varnish Hesearch" for the labeling of quality products. JIr. Zintl said that it isn't possible to standardize the paint business - that you can't give consumers what they are asking for with regard to the products of our industry, and he expressed the opin ion that it would be a mistake to even consider the question of standardization. -a- MCA 0 02850 :.!r. Eavey expressed the opinion that the industry is in the same position, on thi^quostion of standardisation or formula labeling as it was on the question of painter licensing. He stated tint the association needs senething to use as an answer to the question by consumers of how to secure quality products, and he expressed the opinion that approval of formula labeling would give the associa tion the answer which it needs, Mr. iteI'm expressed the belief that while this is a very difficult problem and one which has been under study for many years, it will hi necessary for the industry to go further than it has in view of the insistence on the part of the for definite action. He expressed doubt as to whether or not the gov-- or tv:, ^nt would accept a recorurendation for formula labeling on the t of our industry as the complete answer. Ke moved the appointment by the Chairman of a committee of five to study the situation carefully - cooperate with the government in the development of a plan acceptable both to industry and to the government - and to bring this plan back to the Executive Committee for definite recommendation This motion aid not receive a second, . Mr. Phillips stated that he had boon nn advocate of the program adopted by th industry to "do nothing" on this subject, but he expressed the belief that we have now reached the point where it will be necessary to take some action if the in dustry is to stall off more serious action by the government. He expressed the belief that formula labeling will not give to the consumer everything he wants but that it represents the best the industiy con do towards a solution of the problem and he stated that ho believed it essential t';at the co:amittee recommend to the industry at this time the use of "formula labeling". !r. Reardon stated that he agreed entirely with Mr. Phillips* suggestion. He expressed the belief that the industiy can soil the government on the idea that formula labeling is as nearly the complete answer to the present question as it is possible to secure, in view of the impossibility of standardisation. In reply to a suggestion by President Trigg that development of nomenclature to be used by the entire industry would make formula labeling acceptable to the public. Dr. Gardner reported that such nomenclature has bc-en developed and can be presented to the committee at any time. He stated that in view of the in dustry's refusal heretofore to consider formula labeling the proposed nomenclature had been referred back to the Scientific Section by the committee when it was pre viously presented. f^r. Melua expressed the belief that the committee proposed in his motion could work out a satisfactory solution and that'if that committee found formula labeling to be the answer to tho problem, it could so recommend to the Executive Committee. Mr. Phillips expressed the belief that the Executive Committee should go on record as recommending to the industry the adoption of formula labeling. Mr. "elum stated that he would have to oppose such a recommendation unless lie had assurance that the government would accex-t formula labeling in lieu of standard ization. President Trigg stated that it would be a mistake to go to the Bureau of Standards with anything leS3 than definite action on the part of the Executive Committee. Messrs, liartin, Phillips, urtele and Zintl endorsed this suggestion. -9-. NCA 0 02851 Mr. Sulzberger stated that the advantage of universal formula labeling is that it/iakes the industry out of the class of chicanery. He expressed the belief that the industry should keep away from legislative action just as long as pos sible and he stated that if the industry will recognize the consumers * interest and will endeavor to meet that interest through its own organization it will be on the right road. He expressed the belief that many manufacturers would immediately join those who are now using formula labeling and that this would have a tendency to swing all firms into line. Mr. Foy expressed the belief that difficulty would be encountered in selling the idea of formula labeling to smaller menufacturc-rs. Mr. VTcbster expressed the belief that formula labeling should apply to '..rose paints only. Mr. Sulzberger stated that the some principle applies to all pro ducts of this industry. Mr. George Martin expressed the opinion that formula labeling should apply to all pro-ducts, t t stated he would consider it satisfactory if the committee decided to limit the roc omm.sndation to paint products only. Presi dent Trigg stated that small manufacturers have great difficulty in using formula labels on all products, and he expressed the belief that a good start could be made by omitting varnishes and specialties. Mr. Fhillips stated that he thought it would be fine if formula labeling could be limited to paint products, but he expressed doubt that this would be possible. Mr. Havey expressed the opinion that it is essential that the association management be authorized to state that the industry approves formula labeling as a substitute for other plans being presented throughout the country tending towards standardisation. .President Trigg stated that at the present tine the association management has no alternative than to fight any recommendation for fox-aula labeling, tie stated that if the management could be relieved of that injunction it would be helpful. He said that informal discussions with leaders in the lumber industry in dicated that formula labeling would meet their demands. Mr. Wurtele sxiggested the possibility of the development of an agreement to be signed by members of the association to abide by formula labeling. In answer to a question by Mr. Matlack as to what experience companies have had in connection with the changing of formulas, and particularly as to whether or not any goods had been returned because of changes in formula, Mr. George A. Martin said that while there had been frequent changes in formulas there had been no returns of stocks as the result of these changes. Mr. Griffin stated that he believed the industry should do everything possible to assist the consumer to get a good paint job. He favored formula labeling, and expressed the belief that something should be done at this time in that direction, and he was of the opinion that varnishes should be included. He suggested the possibility of distinguishing between first, second and third lines by the use of different colored labels. In answer to a question by Mr. Sulzberger as to why the Pittsburgh Plato Glass Company had quit the use of formula labeling after having > adopted it, Mr. Griffin stated that he did not know why the company had quit the J u3e of labeling, but it had returned to labeling because many states are requiring formula labeling, and his company found no objection to making it general. He stated that his company is now labeling everything except varnishes. -10- NCA 0 02852 answer to a suggestion by Mr. Sulzberger that action by this committee on the subject would need approval by the annual convention, President Trigg stated that if this committee made a recommendation to the industry for the use of formula labeling, there is no reason why this recommendation could not be pub licized immediately. He stated that of course it would not be possible to bind the industry, but"that if the committee made the recommtndaticn at this tine, then the convention could discuss the entire situation with some background information. Mr. '.wartele sked if it would be considered desirable to appoint a ccr .ittce to work out the details of the proposition, Mr. !'c-lua expressed the belief that this proposition would develop so rapidly t!'oat the industry would lose much if it did not have a snail committee to follow up . Ke stated that he is opposed to federal formula labeling, but that he would prefer that to government regulation on standardization. After sons further discussion of the subject, the chairman presented the following resolution: "The Executive Committee of the National Paint, Varnish and Lacquer ^ Association having carefully considered the interests of consumers of paint products, and the desirability of a wider dissemination of information which will aid the public in the selection of suit able paints, is of the opinion that formula labeling of pigmented products, in simple terns, in what is generally known as the trade sales line should be universally adopted by members of this industry." Mr. Melum objected to the language of the resolution since it appears to indicate that the committee is in favor of formula labeling; he expressed the belief that the matter of drafting a resolution should be left to n small com mittee. It was moved by Mr. Wurtele, seconded by Mr. Y.V-lls Martin that the reuolution as presented be approved, The mot-ion was carried with Mr. !.k-lum voting in the negative. It was moved by Mr. Zintl, seconded by Mr. Trigg, that the chairmen appoint a committee of five to assist in carrying out the purposes of the foregoing statement of policy, and in particular to recommend the form of, and terms to be employed in, such formula labels, and, if deemed appropriate, to confer from time to time with such officials, departments or agencies as nay be concerned with thi3 subject and to present the subject to the Annual Convention of this As . sociation in October. The notion was unanimously carried. The chairman announced that in accordance with the resolution as approved he would appoint as members of the committee Messrs, de Lancey Kountze, Chairman, H. A. Melum, H. E. Webster, V, Wurtele and -William Zintl <dee.t)`v>ptf. Hr.A'foujfK Wc^kiVk4 /? *% TwfJtftv LEAD INDUSTRIES ASSOCIATION ADVERTISING CAMPAIGN _ President Trigg stated that members of' the Lead Industries Association, representative both of corrodor3 and miners, have talked of plans to promote the sale of lead. He stated that in view of the fact that white lead is the only product of their industry which has no r-.covery value they plan to conduct an ad vertising campaign to increase the sale of white lead. Mr. Trigg stated that their proposed plan is to cause paint manufacturers to U3e core white lead in their products as well as to promote 'white lead in oil, and he stated that th^y have -11- NCA 0 02852 V ou 'asked.-'for an expression of opinion from this industry. Mr. Trigg stated that he had advised representatives of the lead industry that he felt that such a campaign night cause a cleavage between groups in the paint industry and he stated that he had invited Mr. E. V. Feters of the St. Joseph Lead Company to be present at this meeting to discuss the situation, Mr. Peters found it ir.caver.ient to be"present, and asked for an expression of opinion from the com mittee. In answer to a question by Mr. Roh, Mr. Trigg stated that the lead industry plans to spend one million cellars on their campaign ever a period of three yours. He* stated that he had suggested to the representatives of the- lead in dustry the they join with the paint industry in conducting a g:r.;ral --.int campaign. He stated that they expressed interest in this suggestion and soid that seme day they might consider such a joint campaign but that for the time being they were primarily interested in selling sore lead. :,!r. Zintl expressed the opinion that the campaign was ill advised but that this ccrmittee could not go on record opposing any activity which the lead in dustry might wish to conduct. He expressed the opinion that the only compromise would be a "Use 'tore Paint Campaign", and he stated that there 'undoubtedly would be objections to their proposed campaign unless they promoted the sale of all paints. President Trigg stated that he did not see how they could do other than promote the sale of white lead in oil since their sales of white lead last year were 25% in dry form, 15% in oil. Mr. Sulzberger expressed the opinion that the zinc cond titanium interests will be forced to retaliate if the load industry's campaign is conducted, and that this will cause a definite cleavage in interests in our Industiy. Mr. Havey expressed the belief that a campaign such as proposed by the lead interests will hasten the day when paint manufacturers will promote the sale of ready-mixed paints as such. It was moved by fir. Roh, seconded by Mr. fflelum, that the Chairman appoint a small committee to discuss this situation with the lead interests. Motion carried. The chairman appointed as members of the committee Messrs, fim. Zintl, C. J. Roh, E. D. Griffin. President Trigg suggested that this committee give serious consideration to the advertising now being carried on by the National Lead Company which, in his opinion, is detrimental both to the paint industry and to the lumber industry. He expressed the opinion that the tendency of this advertising would be to scare the public away from the use of paint. He stated that Mr. Tate of the Weyerhauser Lumber Company is much concerned regarding this situation, and has had correspondence with the National Lead Company. EMPLOYERS REPORT President Trigg read the following memorandum a3 a matter of information for the committee - So far we have had 187 returns in connection with the last employees re port questionnaire sent cut under data of June 1st. The replies are 3till coning in and there should be a substantial number of additional -12- N C A 0 028 54 phes so this is merely a preliminary report to the Executive Com mittee. Of the 187 reports in vre find that the following number, expressed in percentages, have m:-de reductions in Days Full Week - Factory Hears Full Tfeek - Factory Days Full Week - Office Hears Full week - Office 4.23? 7.0-0? 4.23? 8.00? ereantags of manufacturers v5:':0 have cade in, Days Full 'Aeek - Factory Hours Full "'eek - Factory Days Full week - Office Hours Full Keek - Office 3.21? 3.21? 3.21? 7.47? 2.14? show increases in overtire pay while. 4.23,? report reduction in overtime p-ay to regular pay. 30? rode wage increases in one or core different classifications. A few rr.de a general increase. 23? rc.de reductions in one or more classifications, while a few shc?;od decreases in several classifications. 47? shewed no change. In sore casc-s the reports show both increase and decrease in various classifications, evidently in an attempt to equalize wages where necessary. An examination of the reports based on the lowest and highest number of employees shows that in all territories the lowest number of employees is dc./n except in Los Angeles and San Francisco, who show increases, and ex cept New England where there is no change, while the highest nuaber of employees is down in all territories except Los Angeles, San Francisco and Ohio, with no change shown in the New England and New York areas, Penn sylvania and Wisconsin. The figures in each territory arc as follows: Lowest Chicago 13.06? Down Indiana & Kentucky 13.15? Down Los Angeles 24.41? Up Michigan 28.51? Down New England New York area 8.53? Down Ohio 24.44? Down Pennsylvania 18.22? Down St. Louis ' 17.64? Down San Francisco 35.71? Up Wisconsin i 8.14? Down Hiehest . 10.66? Down 8.98? Down 19.39? Up 11.42? Down No Change No Change 10.CO? Up No Change 27.60? Down 39.07? Up No Change -13- NCA 0 02855 The average decline in employment numerically, based upon adding the above figures together and dividing by the total number of terri tories, is 16.57^. These figures would seem to indicate that business has been better on the Pacific.Coast than elsewhere. V7 D HOUR LAV* President Trigg read the following utnorand Vw-ae and Hour Act 'This Act is summarized as follows:- "Administered by wage and Hour Division of Department of Labor headed by -an Administrator. "Minimum Wagess first year, 250 per hour, ''ext six years, not less than 30^. Thereafter, 400 or the rate (not less than 300) prescribed by the Administrator, whichever is lower. At any time not less than the rate prescribed by the Administrator (not more than 400). "Maximum Hours: first year, 44 hours per week} second year, 42 hours} thereafter, 40 hours, unless time and one-half is paid for overtime. "Exception if longer workweek is provided for as result of collective bargaining agreement certified as bona fide by National Labor Relations Bon'd which provides fur maximum of 1000 hours in any 26 consecutive weeks. Cort.-Jnother exceptions. "wage Orders - To attain the objective of the Act which is a universal minimum wage of 400, each industry, when convened by the Administrator is required to recommend minimum wages fcrsuch industry. "Industry Committees are appointed by the Administrator to represent the public, the employees in the industry and the employers. The number is not fixed, but due regard shall be given to geographical regions in which the industry i3 carried on. "The Committee shall investigate conditions in the industry, may hear witnesses and receive evidence. It may summon witnesses and call upon the Administrator to furnish additional information. The Administrator shall furnish adequate legal, stenographic, clerical and other assist ance. Members of the Committee are entitled to a reasonable compensa tion for time actually spent, and to necessary traveling and other expenses. "Classifications within Industry - An Industry Committee may recommend such reasonable classifications within an industry as considered necessary J for the purpose of fixing tbo highest minimum wage (not exceeding 400) which (l) will not substantially curtail employment in such classifica tion} (2) will not give competitive advantage to any group. -H- NCA 0 02356 "fio classification, and no minimum "age shall be fixed solely on a re gional basis. "The 'Sommittee and Administrator shall consider: (l) Competitive ccr.ditionqas affected by transportation, living, and production costs; (2) wages for work of like or comparable character by collective labor agrec-.3nt'b-Ks(3) wages for work of like or comparable character paid by employ c-rs v.he voluntarily maintain minimum-wage standards. .tion to be made cn basis of age or sox. "Exemptions - ''.age and Hour provisions do not apply to (l) those employed in bena fide executive, administrative, professional, or local retailing capacity, or as outside salesmen (as defined by regulations); (2) those employed in retail or service establishment the greater part of whose selling or servicing is in intrastate commerce. "Apprentices - Administrator, to extent necessary to prevent curtailment of Opportunities for employment, shall provide for employment of learners and apprentices." This natter is presented to the Executive Committee at this time to give such advance consideration as they see fit to this subject in anticipation of the possibility of the Administrator proceeding to the appointment of a committee to consider*- the wage and hour provisions in our industry. President Trigg expressed the opinion that in view of the small number of labor employees in the paint industry, and also in view of the fact that the in dustry is paying better than proposed minimum wages, it is unlikely that this new law will materially affect this industry for some time to come. He stated that in good times the industry employs approximately 35,000 men. Mr. Trigg ex pressed the hope that the paint industry would not be requested to consider itself as part of the chemical industry, and he stated that experience during N. R. A. days may be helpful in maintaining the industry's own identity. He suggested tint this association will probably be asked to recommend representatives of eapolyc-rs to serve on a committee which will be made up of representatives of em ployers, labor and the public. It was the concensus of opinion that no action be taken at the present time. Mr. Trigg referred to two pamphlets issued by the Southern Pine Association on "Fair Labor Standards Act of 1938", and "Preliminary Analysis of Fair Labor Standaids Act of 1938", and stated that, these pamphlets present a .particularly good f . tv At:outline of the act. f/vv'.-.-.-, .V.: v;< . ,\ PROPOSED Cl^firduiCE ON LEGISLATIVE PROBLC-iS O ' President Trigg read the following memorandum regarding a proposal by the Automobile Manufacturers Association to invite representatives of industries in terested in the automobile industry to attend a conference in September for the purpose of discussing common legislative jroblems: -15- N C A 0 02 25? Under date of June 3d, the Autono'oile Manufacturers Association wrote us as follows: "A Chart visualizing fifty or sore national associations, whose members are engaged wholly or partially rnd directly or indirectly in every phase of the no tor vehicle industry is c-nclosod herewith. ft It has been prepared by our Legislative Department to serve as the starting oint for bringing about coordination of thought and action in considering nd dealing with legislative problems of common interest and concern. "So that these objectives and methods for realizing then con be therely examined and discussed by ail interested parties, I have decided, at the re quest cf the executive officers of several of the organizations noted, to suggest that a conference cn the subject be held seme time during next Sept- -a -r* v "Sc-ptember is selected because it will give those attending the conference ample opportunity, if they so determine, to act in advance of 1939 when, during the first half of the year, the legislatures of forty-four (44) states will go into regular session and consider and pass upon many bills of general or specific concern and of direct or indirect consequence to each and every branch of the motor vehicle industry. "Without question they will introduce many bills and enact laws on such general topics os 'Anti-Trust1, 'Anti-Discrimination' (Little RobinscnFatman Acts), 'Resale Frice Maintenance', 'Prohibition of Sales Below Cost', 'G'-ncral cr Specific Licencing of Business', and similar matters, while at the same- time considering and cicting upon such proposals of importance to s.rre or -all of the branches of the industry as 'Increased Taxes', 'Compulsory Liability Insure.ice', 'Periodic Inspections', 'Mandatory Equipment', etc. "How do you feel about the holding of such a conference? Will you attend if it is called, bringing with you the Chairman of your Legislative Committee and those in charge of legislative activities of your association? "In answering this letter rnd the questions that have been raised, will you kindly bring to my attention any errors which you find in the data set forth ia the chart and the names and addresses of any other organizations which we have emitted and you feel should be included. Moreover, data and sug gestions bearing on the subject would be greatly appreciated. The chart referred to will be exhibited at the meeting of the Executive Com mittee and it is desirable to know from the Executive Committee whether or not it approves of our participating in the proposed meetings end what may develop subsequently therefrom. The chart referred to wan passed around and indicated six groups of as sociations interested in tie motor vehicle industry; manufacturers or producers transporters - dealers - fin ncers - insurers - servicers . The manufacturers -16- N C A 0 02 8 58 ,or producers were divided into five groups representing raw and processed : ials /- parts and accessories - complete vehicles - operating supplies - high way materials. Under raw and processed materials associations representing eleven products were represented: iron and steel - rubber - plate glass - lead leather - cotton - aluminum - copper - tin - zinc - paint and lacquer. President ''Trigg stated that attendance at the conference did not require any commitment but merely presented an opportunity to sit in with other as sociations for a discussion of common interests. He expressed the belief that our association should be represented. It was moved by Mr. Reardon, seconded by Mr. i'ntlack that the National Paint, Varnish and Lacquer Association, Inc., -articiuate in the conference of industry associations on c:r~.cn legislative motions to be held sometime in September, 1933. Motion carried. ACCEPTANCE VISED NON-EXCHANGE AC-RE5 ZNT President Tri: read the following memorandum for the inf. committee: tion cf the After an exhaustive follow-up extending over the last year or more to get all members signed up on the revised non-exchange agreement ?oin,we still had approximately 75 who had not signed and returned the new form, tfith the exception of two or three cases, we have no explanation as to why such members did not sign and assane that in a great many instances it was due to uncertainty as to what it was all about and probably in other instances to neglect. There are two cases which have been referred to members of the Executive Committee, namely, T. C. Essor Company of Milwaukee to Mr. Griffin, and the Jones-Blair Paint & Varnish Company of Dallas, to Mr. Reardon. Another case, namely, the Gillespie Varnish Company, I am personally handling. In order to bring this matter to some kind of a final conclusion, we have written a letter as follows to all of the members who have not signed the new fora excepting the Milwaukee and Dallas ones as re ferred to above:- MThe Non-Exchange Agreesont formed the background for the develop ment of the Paint Grinders Association and was formally adopted by the members of the Association on May 8, 1899. Since that time, every manufacturing member of the Association has signed the Non Exchange Agreement, and you are, of course, aware of the effective ness of the agreement in eliminating a practice which had been both costly and demoralizing. "At the annual convention of our Association in 1936 certain amendments for the purpose of clarifying the Non-Exchange Agreement were ap proved and all members were invited to accept, in writing, the amend ments to the agreement. ' i` "iTnile a very large majority of the members have accepted the clarified agreement as approved, our records indicate that you have not found it convenient to do so. *e do not wish to burden you with un necessary correspondence < nd since your Company accepted the ori ginal Non-Exchange Agreement at the time of your application for mem bership in the Association, we are closing our records on the case." -17- NCA 0 02859 r By taking this action you will note that we have put them on notice that the original agreement continues in effect, which our general counsel advises is legally proper. You will recall that the change in the now form as against the old was not in principle but straightened cut some of the language and was really better for the signer than was the original one, `i"_-v; REPROCESSING A3 TO .'igg read the following memorandum regarding an interpretation of Ncn-Exck:.nge' Agreement us applied to reprocessing in the industrial field: ' 'The question has arisen from ?.. N. Nason & Company, owned by W. P. Fuller & Company, with regard to the Non-Exchange Agreement and its bearing on a manufacturer taking back into his plant a competitor1s product for the purpose of reconditioning or reworking it and re turning it to the customer in condition suitable for his require ments, the customer being charged for the expense of reworking. This question arose during -.'F-A days, at which tine the Paint Indus try Recovery Board made a ruling (Interpretation 15-1) as follows: ON INQUIRY who-ther a .manufacturer in the industry could reprocess, for an industrial customer, a product of another r.nnufacturer of the industry: HELD that this ould not be a violation of the code, provided (l) the manufacturer did not take title to the material; (2) f'hat the entire amount of material taken over by the manufacturer to be reworked was actually returned to RESOLVED, That it shall not be considered a violation of the Non Exchange Agreement for a manufacturer to reprocess, for an indus trial customer, a product of another manufacturer in the industry, provided (1) that the manufacturer coas not take title to the mate rial; (2) that the entire amount of material taken over by the manufacturer to be reworked is actually returned to the buyer; and (3) that a proper reworking charge for the service be made a6ainst the buyer. It was moved by Mr. Foy, seconded by .Mr. Reardon that the principle as in the memorandum as read be approved. Motion unanimously carried. (See atfacAflvij/ofic UON-EXCHANGE AGREEMENT T. C. 5SSER COMPANY Mr. Griffin reported that he hod been unable'to secure from T. C. Esser Conkhny a signature to the revised Non-Exchange Agreement. President Trigg -.' -'vised that the file will be closed with a fin.'IL letter pointing out that the Non-Exchange Agreement r-riginmlly signed by T. C. Essc-r Company i3 in effect. -18- NCA 0 02360 / NON-EXCHANGE AGREEMENT JONES-3IAIR PAINT & VARNISH COMPANY / Mr. Reardon reported that he had been unable to contact the Jones-Blair ,r.t and Varnish Company in an exTort to have them sign the revised Ncn-E.xcr.ar. ec-e.nt. Ke suggested that a letter sirdlar to the one to be sent to T. C. er Company be nailed to this company closing the file. NON-EXCHANGE AGREE'.ENT GILLESPIE VARNISH CO. President Trigg reported that he had not as yet secured the signature of the Gillespie Varnish Company to the revised Non-Exchange Agreement, but stated that he would follow through in an effort to complete the case. ROST OPFICE DEPARTMENT PURCHASING FOPU President Trigg road the following memorandum for the information of the c nittee, and as a record of appreciation to Mr. de Lancey Kountze for his coororation: At the April 5th meeting of this Committee, a resolution was adopted asking the Post Office Department to submit bid forms in duplicate so that bidders would have one copy thereof to retain for their files. In a letter, dated June 6th, Mr. Harrison Parkman, Purchasing Agent, Post Office Department, Washington, advises that they will comply with our request beginning July 1st. Mr. de Lancey Kountze through his relationship with the Depart ment was largely, if not entirely, responsible for accomplish ing this result. NOMINATING COMMITTEE President Trigg read the following memorandum: Article 8, Section 13, of the by-laws provides that:- "At least three months preceding the annual convention the President shall appoint subject to the approval of the Executive Committee, a Nominating Committee of seven mem bers as follows: "Four to be selected from Class A membership, two to be selucted from Class B, Class C or Class E membership (none of whom shall be officers) and the President. The Nominating Committee shall report at the first business session of the Convention." In accordance therewith, the President submits for your approval the following names of four Class A members, one Class B member, and one Class E member for this year's Nominating Committee: -19- 0 02361 ' /A) HORACE S. FELTON, (Chairman), Felton, Sibley &Co., Philadelphia (A) H. BRAITH DAVIS, H. B. Davis Company, Baltimore, Md. (A) ADAME. DAUM, Impervious Varnish Co., Pittsburgh, Pa. (A) EDWARD J. SHANNON, Edw, J. Shannon Co., Cincinnati (B) WALTER FOSS, Wooster Brush Co., Wocster, Ohio , . L ^ ( {)--eatfiLasTw. irc'.fn, e^ia l Cutler ca.; zcst-on- C^$'',vy>c` , v? ' (8) . It vss moved by 5fr. Tlewter, scaonaed ty Mmi havey, that the toccmnenaati:: for appointment as members of the 1933 Noainating Committee be approved as pre sent c-d. Motion unanimously carried. In accordance v.-ith the Ey-laus the six a.; dent, will comprise the Noainating Committee. L.i HEADQUARTERS 5UILDING SITIT.-.TION J ' President Trigg reported that Congress had passed a bill providing for a he construction of a new War Department building, the site for which will include the site occupied by the association headquarters building, and that funds had been appropriated for the purchase of the land. He stated that the President has signed the bill, and that publicity indicates that the War Department building will be built in two units, the first of which will not include the site occupied by the association. Mr. Trigg stated that the association has had no approach from the government regarding the matter, and that the association management is sitting tight awaiting developments. Kc stated that in view of the fact that there are two apartment buildings which must be bought and torn down before -lit number one can be started, it may be a year or more before construction is ac tually started on this unit. He expressed the belief that it may be Several years before the government takes the association property, and that in case the prop erty should be taken it is possible arrangements could be made to permit associa tion headquarters to remain as tenants 'intil the land is to be cleared. Ho ex pressed the opinion that the best policy seemed to be to await action by the government. President Trigg stated that at their meeting on January 27th, 1937 the Executive Committee had appointed a committee of three, consisting of the Vice-Chairman of the Executive Committee, the Treasurer cand the President "to take care of interim details regarding the sale and purchase of property between meetings of the committee." It was moved by Mr. Havey, seconded by Mr. Webster, that the committee ap-_ t pointed on January 27th, 1937 be continued. Motion unanimously carried.-/?. * e MEMBERSHIP - NEW APPLICATIONS . The Secretary presented the application for Class B membership of Bromley Machinery Corporation, 15 Park Row, Mr. B. M. Halpc-rn, Vice-President. It was moved by Mr. Wells Martin, seconded by Mr. Havey, that the application of 3ramley Machinery Corporation be approved. Motion carried. MEMBERSHIP - CANCELLATIONS The Secretary presented the following list of firms whose memberships are recommended for cancellation: -20- N A 0 02362 / Beacon Paint Works, Jamaica Plain, Mass. - Poor account Grossman Bros., Inc., Spokane, Wash. Lacquer Products, Inc., Cleveland, Ohio Midsest Paint Mfg. Co., Minneapolis - Can't afford _n ii _ it ii G. H. Nelson Paint Co., Omaha - Poor account Rose Varnish Works, Long Island City - Can't afford The Ruberoia Co., New York - Not in our industry Stanford Putty Mills, Stanford - Out of business V.'illi'.n3 Hayward Varnish Co., Chicago - Resig. is final Class B Brill Equipment Corp., New lork Class E - Second Hand Mach. dealer Aalfs Paint St Glass Co., Sioux City, Iowa Kadlock Paint Co., Inc., -Rochester, N. Y. J. J. Kockenjos, Irvingtcn, N. J. Dwight R. Judscn Cc., Hartford, Conn. S-.vank Hardware Co., Johnstown W. A. 'Winslow, Washington The secretary stated that the annual dues represented by this list of firas is $1,000. It '.vas moved by Mr. Trigg, seconded by Mr. Foy, that the cancellation of t! memberships as presented be approved. Motion carried. CONVENTION ASSESSMENT President Trigg reported that the Entertainment Committee for the 1933 con vention recommended that the convention assessment be the same this year as it was in 1937, $10.00 for men and $10.00 for women. It was moved by Mr. Reardon seconded by Mr. Wells Martin, that the assessment for the 1938 convention be $10.00 for men and $10.00 for women, faction carried. ADJOURNMENT There being no further business to cone before the committee, the eating adjourned at 3*30 P. M. NCA 0 02863 -21-