Document MMyyvqzEzeweeBN5Qm86G716j

December 26, 1940 Mr. P. E. Sprague WAR DEPARTMENT OFFICE OF QUARTERMASTER GENERAL WASHINGTON, D.G. - INFORMATION IN VITATION FOR BID NO. 146, dated Nov. 29, 1940 You will note from copies of other letters I have written that apparently the Carbonate of Lead industry is not going to enjoy any business under this contract. Since to me, at least, this is a very important matter, the outcome of which is exceedingly disappoint ing, I think it would be well to review all the facts pertaining to this large amount of business, because I think that the White Lead industry needs to do something to protect its interest. Briefly this business involves the purchase on the part of the War Department of paint to be used for painting wooden buildings in Army contonments being constructed at various camps in the United States. The Army Quartermaster Corp has divided the United States up into ten districts or regions for this purpose. Tim construction of these cantonments is being done by private contractors on the basis of competitive bidding, which, I believe, in the beginning must have included not only the construction work but the actual painting, because the original plan was that the private contractors would pur chase all the paint materials required. -f It appears that originally the general contractors, who have sublet the painting work to painting contractors, were Instructed from Washington that they could hot only buy the painting materials, but that they were to prepare a paint according to certain definite spec ifications, and thi$ t%is paint was to be mined on the Job. - , Fundamentally, the paint was to be made from White Lead Car bonate with small proportions of nine and inert to be added on the job, and White Lead In Oil was iqrJNt purchased for this purpose Actually, in many oases, the contractors sellout luvitationa to bid on the White Leant da?4Mi 'ftagidNed* Subsequent to this, the''-*contractors were informed by the War Department Quartermaster Corp that the plan was to be changed in respSct to paint purchases, and instead of the contractors: themselves making the purchase of paint, this paint mat* all to be purchased In t&Shington under the above invitation. . The country was then divided into ten districts, and the provision was made that awards would only he made to one company in each district, and., furthermore, that a successful contractor in cue ; district could not qualify fbr a contraet Ih nuother district. At ... :x the same time,, specifications were changed.to fead that in three out - of the ten districts the paint would be purchased under Federal Faint Specification W-P~15d* which designates that Dry Carbonate. Of: Lead mast be used for the White Lead portion of the total pigment*. In the other seven districts, tili paint was to be purchased nadir .-Federal Paint Specification TT-P-88A, which permits the use ofLiad in any form, either as Sulphate-of Lead- or Leaded Zinc. In such a specification the paint manufacturer uses the cheapest source of Lead, which at the present time Is the high lead content Leaded Zinc. NL 000040396 / .. - -2- Within the past few days, awards have been made to ten paint manufacturing concerns and the specifications have been further modified to make it possible for a contractor to furnish the paint for all ten districts under the specification TT-P-36A. This means that apparently no Carbonate of lead in any form will be required by any of the contractors furnishing this paint. Now, of course, without any firsthand knowledge on my part, it is impossible to say what, if any, influences were brought to bear in the beginning to change this purchase of White Lead in Oil over to ready mixed paint. The practical effect of this, of course, has been to distribute the business among them paint manufacturing concerns located in various parts of the United States with a breed geographical distribution, whereas if White Lead in Oil had been purchased of course there would have been a smaller number of contractors, representing the various units In the White Lead manufacturing industry. When it was proposed to manufacture the paint for three dis tricts under this.specifieation TT-P-156, we estimated that about 1,100 tons of Dry Carbonate of Lead would be required. Now that all the Lead will be furnished as Leaded Zinc, undoubtedly the total tonnage of Leaded Zinc will be several times this amount. As I see this picture now, substantially all, if not all, of this Leaded Zinc business will go to one manufacturer, the Eagle Pleher Lead Company, because the high lead content Leaded Zinc (either 70 or 70$ Leaded) will be purchased, and only this one company is in a position to furnish such s pigment. Information coming to me from various sources leads, he- to believe that the Eagle-Picher Sales Co. have extended to the pint industry the same type of protection on the purchase of 70 0r--75Jf-Lei!ddd Zinc which they recently offered to extend on Dry Carbonate of Load, Which was entirely out of proportion to any protection Elicit the paint manufacturer was entitled to under his contract. ,> * / . . then whereby ten paint manufacturers are of biMiness which originally would have SHh^KhcMprers,: amd one pigment manufacturer pigment business. With exception of the understand it is permissible to incormixed paint under the specification .... ................................. . v Mr ' - 'T- " ' ; counts at Which Loaded Zinc and Sulphate of resent time relative to Carbonate of Lead, inc mere economical for this formulation Mwtuaces.y: .. . hite Lead industry needs to change from a neotibm with cutters W this . character to a on la piecing the merits of Carbonate of Load before the authorities who control the specifications governing the purchase of these materials for War Department purposes. " 1 a #.; '.tu, Knight , ' - ' NL 000040397