Document N2jmBgonoRMoY9yo4N8Jo6nDV

LIA16266 9 9 SECOMnutX l e a d s Pwl Hw mj , general nanagar, Scrap Purchasing Federated Metals DiTisicn, Awerlcan Sweltlj* k Few Tort, V, I, 0e A Xsw v*ek# ago when I accepted your Seorwtarye request to say fir wcrda to you on recent dewelopoenta la the field of secondary load, I thai'ht It advisable to r*-reai the tali which 1 gave before you hero three years ago, Thia was a good Idea since I found that what I aaid at that tiaa about U.e past waa qilte corract but whan 1 ventured Into predicting fetura events, cjr raccrd show* up aa a wary pocr one, JLa wa ara supposed to learn fren the mistakes at our past, 1 shall confine ay fa* reweika bar* today to sene of tha develtgaants during th# past thra# years. In 19i)7, tha secondary load Industry could Justifiably calsbrats Its entrance into big businasa by hawing roachad, for tha first tins la tha history of this country, th# hau-suilon ton mark. This was quits an sweat which we explained as neat exlr>rdlnary and eautsd by two spacifio devalopwenixj on ona hand, bacausa of surplna Oovernwent aoounale- tioow which were sold in tha after-war period and on tha other hand, bacausa of tha steady and considerable increases in tha price <f laad after the expiration cf tha O.PJL., which brought out all tha boarded acetaulatlcns of scrap, Jts we assuosd that all these surplus had disappeared by tha and of 19U7, wa predicted that tbo ISifl figure would show a considerable drop, However, this was net tha ease and la 1913, tha seccndary laad industry again contributed another balf-dlllon tons to our Industry* It was not until 19L9 that tha tonnage# finally declined to sonething like WO,000 tons end reaalned at approximately the mm figure for 1950, Tor tha present year, ay good colleague, Mr, Clancy, satinsted in his recent San Francisco talk that another 1)00,000 ton* cf Secondary laad will be generated. Frartdy, I mat confess that these figures do not seen quite 1 In 19l>7, when the aactniary industry produced ncra than 500,000 tone, this country only hsd thirty--serea rdlllon seter vehicles on tha roads, Vbe last report which I read indicated that we news hare about flfty jlllen notcr wahidsw and since about 50X to 60S of our scrap case* frus suto better: as, eras wruld think that our production fren secondary sources should be constantly increasing. Even though the cycle in the return at battery lead takes about two yearn, it would sees logical that in rlww of tha constantly increasing auto registration in this eountxy, the secondary land figure should increase correspondingly. During tbs present shortage cf scrap, however, sene cf cor industries such as the utilities are undoubtedly reducing their noraal oahls scrapping operations because of difficulties in obtaining supplies f new cable. To what extent this My influence cur 1951 figure is difO* ~ cult to eatbaste but I an hopeful that the tennaee thus wlthhe*! frae the scrap narkwt will mrt aseunt to a great deal as eoapered with the hugs tonnages we art speaking cf bars. rr--nt#d t th* 23rd innul Itottlng* t*d Zndottrlftft iModitlHi lUgr 17-Ifi^ 195X# *t th pu1 DUeuulon of laid frodor* - ' ,,~5` - 7..'" `ijojij, u j wyyggfggammmmmm t - I f i , i E t. t f LIA16267 if- n " '7;*saarn.iar->n rJ loeorilng to a recent survey, approximately 35X of our load goM Into tori.jt batteries, 15X Into cable, 12S Into lasrl tin alleys, US into raealir.9, 9% Into the hill'llng industry, JX Into white lead and litharge, 21 into strorsitiao and the hilancs of 01 Into ssicllanecu* uses, This distribution has remained fairly constant over the PMt few Tears and a* we Kit eliminate the use of lead for gasoline end paint* frca the scrap cords, it is obvious that better? plet.se will contlrsie to surply the l&ree -bulk of ecrip to our Industry end that we cannot anticipate an? important change in the overall supply of scrap froi all sources for a loey period of tin*. As w look back tods? to the after-war period) tgr this X assn after World tier n, we certainly Bust adalt that we have gone through Scae exciting end highly speculative periods and since ascasdar? aarksta an always more sensitive than virgin markets, we harwe wltnsaeed ease very Unusual cWvelopoects in tbs field of secondary lead. It was either e feast or m fwelne and then were few swaths at norveal and etahla conditions. To illustrate mj paint, during this after war period, at one tin# treatment chargee for batter? plates were as hi^i ss $12$ and a few Booths later, the dmand fcr scrap was such that the tmstwarrl charge saw fcroed dsn to aero, for thoee who are active la the secondary lead industry, it was necessary to develop strong nerve* sod not to be surprised at sudden changes. The fever ohart of our patient was Boat erratic aad be either ehowed syaptcne of abnomal eeiVnees at abnormal strength) aad so bs needed vr? careful watching. For the pest six Booths Alls we have been suffering hoe and abroad frees a shorts;# of lead, we havo eoan ease very regrettajl# and deplorable situations dsvelcp. Ccnsuasrs who were unable to obtain their nomal supplies of vir-ln lead did not hesitate to raid the aecondar? narketa for whatever supplies the? could find there, using Aatewwr nethod* the? could to purchase scrap at price* far above tho established virgin aarfcets, thereby causing havoc in the entire Industry, This has resulted in s dislocation cf th* worst kind and X do not bclltve I m axaggeratlng A so X say that th* secondary industry today has th* appearance, acre or leee, of a battlefield, with vlcties lying around here and there. Plante which have been operating for years on regular supplies ef scrap were forced to either shut don ea^iletely or to curtail their operations considerably sinply became they ware unable to obtain supplies st profitable levels, thus fcrclng than tn withdraw frow the market, Other swelters, taking advantage at the temporary situation, are working day and nl^ht, offering their sarvloM to thoss who are willing to pay any prloo to obtain additional leads Self-control has probably never been practloed to any extent la wr coocwy and tram a hman viewpoint, w can wall understand the posit!oa ef a purchasing agent who aay b* worried that his plant way act bs able to operate next south for lacy r lead and is therefor* rilling to ust all sort* of unorthodox praetloos to obtain th* said was needs of th* plant. This saw* purchasing agent will probably be th* first one to complain bitterly shout Omerasaot Interference In business^ despite tho fact that he was the vary M Ao invited Oewarwwt control of our industsy. -m HillililLHI Jli^lffWWBW^IWBWWWpiBWPlWWW^^W- J U|lffl|SWWII^!ilWfPBW*PP^ LIA16268 ->.... .. I as sorry to ssy that ear cotdtry load industry today Is 1b ct unhealthy stats and although X dislike Interference by Ooeerta* Bent ejondoe u ~uch a others, I oan wily say that I aineersly bop* that the lor.-rited price regulations will aoon c o m Into being and return our Industry to eoarwhat of a normal state, I fully reelias that there 1* nothing, not ewen Oorerme.-rt regulations^ which can replace tho short supply of lead existing today but I do hops that price regulations will t least result in a fairer distribution of scrap supplies to all the smelter* anl cansiaers and wrest dcednatloa of our Industry from these who are willing to pay tho highest price* is lon as the heart of oar patient la in good condition* and X still boilers it 1$^ X an not worried about the future and X sincerely hope that one day, we shall ho able to look heck te the dewelcpsmnts of the past six Booths nth wore detachment than we oan today, r' tJe all feel proud of oar free econagr sod apeek nth eaitwgt of I these who hare chosen a controlled systen but X woodar arty we forget r at tinea that a free ec cncsty imposes upon ua a responsibility at discipline and aelf-coctrol and I sincerely hope that la the future all nonbe re of this industry will cooperate for the benefit of tbs entire group* % t i I i tr l $- i- i f 1 tiygyptiyjiiiw i* pBw.fw f i! f