Document NEG97EgekbYrJny3vEZVEjw3V

TECHNICAL ACTIVITIES IN 1950 f / TECHNICAL ACTIVITIES IN 1950 1950 was a banner production year. Buffalo faotory volume was a third greater than it was in 1949* As a result, the laboratory tested more batches, inspected more raw material deliveries, and contributed more time to factory problems than in any previous year on record. This added testing was handled without increased personnel--but research and formulating activities were cut to fit the testing program. Increased factory volume was attained in spite of raw material shortages that grew steadily worse as the year wore on. Laboratory manpower was called into play to solve or try to solve some of the raw material problems. These activities further curbed normal research and formulating work. As raw materials become more orltical, "constructive* research will continue to diminish. Our technical organisation plays an important part in the peace time operations of our company, but it really becomes indis pensable during periods of emergency and shortage. Todays technical problems resemble those of late 1941 and early 1942. We are better prepared today than we were a decade ago as we have more personnel and we have the benefit of our World War II experiences to fall baok on. Labor turnover is increasing, but laboratory labor problems are less serious than they were ten years ago. TRADE SALES DEVELOPMENTS Surfex was our first raw material headache in 1950; it was unobtainable for several months because of a protracted strike in the alkali industry. Numerous listed items--primers, underooaters, flats and eggshell finishes--had to be changed to permit the use of Surfex substitutes and then changed back again. No difficulties resulted. Titanium dioxide has been and still is an acute problem. A number of formula shifts have, been made to utilize lithopone or other more plentiful grades of titanium pigment. Ester gum, phenolic resin, phthalic anhydride, vinyl resin. Selected Oil 500, and cobalt driers have been added to the list of Short or restricted raw materials. In 1950, 209 formula changes were made in listed trade sales items sold in the U. S. More than a quarter of these changes were caused by shortages. In 1949. 59 formula changes were made; none was caused by shortages. 251 formula changes were made in 1942. the majority of which resulted from raw material shortages. Some of the more important technical developments in the trade sales field were: 0007-PTL-000938 -2- The How Vitralite Enamel - $5040 were spent in 1950 in an attempt to improve this enamel* The effect of environment, particularly cooking fumes, on color permsnenoy was intensively studied* Bluing agents were reviewed. The effect of sine oxide upon after-yellowing and upon package stability was gone into very thoroughly. The possibilities of a safflower oil alkyd were investigated. Safflower alkyds show definite promise and will enable us to lower cost, if and i&en the oil is freely available. The Hew Vitralite Enamel Gloss and Eggshell colors were revised in 1950 to permit use of lower oost F&L resins. Savings of 14700 resulted from this move. Production of The New Vitrailte Enamel (Gloss and Eggshell, White and Colors) reached 153*000 gallons in 1950 and was 144$ greater than it was in 1949. White Gloss constitutes about half of our Vitralite enamel production, but the Gloss colors amount to only 9# of this overall figure. In spite of the enormous increase in the production and use of The New Vitralite Enamel in 1950, our production of "61" Enamel (Gloss and Eggshell, White and Colors) remained at a high level and amounted to 73,000 gallons in 1950. 1950 production was only 3$ less than it was in 1949. The production of *61" Enamel Eggshell and The New Vitralite Enamel Eggshell were just about equal (70,000 gallons) in 1950. Bffecto - Lower coat and slightly more durable formulas were adopted late in the year. The stability of Effecto Royal Blue and Nantucket Blue were improved. Work entailed an expenditure of $320. Lyt-all - $4809 were spent on flat wall finishes in 1950. Improved tyt-all Plowing Plat Colors with better self-coating properties and better washablllty were adopted. The latest improvements make Lyt-all Plowing Plat one of the outstanding products in its field and our sales substantiate this view. Our industry *s trade sales in 1950 were about 16$ higher than they were in 1949. The production of trade sales finishes at Buffalo increased 31$ during the same period, but production of Lyt-all Flowing Flat (White and Colors) increased 6Q$. Production of Lyt-all Plowing Plat In 1950 was 109$ ahead of 1948 and 440$ ahead of 1941* Production of Lyt-all Plowing Plat in 1950 amounted to 321,000 gallons or 13$ of our entire trade sales production at Buffalo. Work was completed on the development of an *odorless* Lyt-all Stippling Eggshell, but this product has not been presented to our management because it cannot be produced under present raw material conditions. Our production of Lyt-all Stippling Eggshell in 1950 Increased about 50$ over 1949 production, but 1950 volume was about the same as our 1941 volume 0007-PTL-000939 3 Solidex - Arcadia Green and Turquoise were improved as a result of the basic work done on Lyt-all Plowing Plat at a cost of only $35* The Solidex formula change enabled us to save $2750 in 1950. Ho cost saving resulted from the changes in Lyt--all Flowing Plat# Solidex is the second largest volume trade sales item produced at Buffalo* 228,000 gallons were made in 1950* This was 18# higher than 19i9 production* Vapex Wall Primer - After disastrous field results, the production of Vapex Wall Primer was discontinued in 1950* A vastly improved formula has been adopted but cannot be put into production because of current raw material shortages* $300 was spent on an investi** gation at Pennsylvania State College to determine the value of Vapex as a vapor barrier* The results were disappointing* House Paint - A modified house paint tint base utilizing basic silicate of white lead was adopted in June and resulted in an estimated saving of $2500 during the last six months of 1950* Laboratory work on this project amounted to only $12f in 1950 as the basic development work had been performed in previous years. Hytal 300, a fine particle size extender pigment, has been gradually worked into all paint formulas during the past few years* It replaces magnesium silicate* Since Hytal 300 can be mixed into paint without grinding, our paint manufacturing capacity has been increased greatly. With adequate tank capacity, a production Increase of 2009b is possible* Only the Waggoner Paint Co* has the tankage to take full advantage of Hytal 300* Considerable work was done in developing house paint formulas containing Uj.j to 2j .3 less titanium dioxide than the current formula* Ho action has yet been taken on these formulas. The experimental work cost $323* , House Paint 320 Hut Brown and 323 Chocolate Brown were Improved to minimize after tack* Add-011 Paste Paint - $270 was expended in developing a lower cost formula with better color, hiding, and leveling. Cellu-Tone - $fylj.l was spent on Cellu-Tone work. While the current formula is subject to constant criticism, the laboratory has been unable to develop any better formula of the/ same type* The answer to our Cellu-Tone problem seems to be Cellu-Tone 561 Satin White, an alkyd composition, but raw material shortages prevent its production. Some 2000 gallons of 561 Satin White were produced in 1950 and were used with complete success* $1750 were spent on latex research. Synthetic rubber latices are the basic raw materials from which Spred Satin and Super Kem-Tone are made. These raw materials make excellent eggshell finishes but are currently unobtainable to us* 0007-PTL-000940 Vitralite Transportation Finish - A now brushing lino was developed at a cost of $2o7* " ' In 1950, the company adopted a new policy with respect to formula labeling, i.e* the use of an imprinted analysis on most listed trade sales items This action was precipitated by changes in Virginia labeling laws* The dual task of preparing data for formula labeling and of registering our labels in Virginia was assigned to the laboratory* The job required about a month's steady work and cost approximately $1000* Extra stenographic help had to be hired to run off approximately 3300 Formula Analysis Bulletins to record^the information. Supplementary work in the Printing Department 'cost another $1000* While the. initial steps in adopting a general formula'labeling policy have been; painful and costly, future work and expense should be negligible* ' INDUSTRIAL SALES DEVELOPMENTS In 1950, our Buffalo factory produced 894#019 gallons of varnish, enamel, and lacquer for industrial customers* It is difficult to classify this production accurately as it falls into a variety of product types, but the following is rough approximation: Production in Per Cent of Total Classification Thousands of Cals* Industrial Production Thinners 170 n to V . 19 Lacquers Baking Enamels Primers Wrinkle Finishes Hetal Decorating Finishes Adhesives 160 130 100 100 82 68 2-7,v$ tj *: ( 7-7 / , .1-X s . 47 ^ 17 15 ^ 11 11 . 9' 8 Varnishes, Hiso 34 4 Fabric Coatings Collapsible Tube Finishes Haaanered Hetal Finishes 21 16 -il 894 72- / D' 1 3' . ^2.0 y iq 100 In the lacquer field, wood lacquers and lacquer sealers were the leading production items, although we have no large furniture accounts* We spent $955 on wood lacquer research in 1950* We produced 1300 gallons of "hot" lacquer for two accounts--Western Electric and National Casket Go. We made 5000 gallons of paper laoquer, most of uhich went to F* N* Burt Co* Our one time biggest lacquer customer, Armstrong Cork Co*, bought practically nothing in 1950* A little known fact is that we produced 3000 gallons of lacquer cement in 1950, although the man-on-the-street has never heard of any cement other than Duco* 0007-PTL-000941 -5- In the baking enamel field* we made some 27*000 gallons of white in 1950, White production dropped, presumably because of titanium dioxide shortages. #2009 were spent on the development of white baking enamels during 1950--#1607 on specific sales projects and #14.02 on research. Our major sales effort was directed at the General Electric Co. washing machine account and some eight samples were developed at a cost of #571* We are now an approved supplier* but we probably could not spare the titanium dioxide if we did receive orders. Our 1950 production of black baking enamels amounted to 28*000 gallons* or about 10*000 gallons more than in 1914-9. This increase was about equal to the production of Engine Black Oloss for Wright Aeronautical Corp. This item will probably increase in volume as the military program accelerates. Fedders-Quigan was a large volume purchaser of baking enamel for whom we did #730 worth of laboratory work. In addition to buying 20.000 gallons of enamel, this organisation also bought 17,000 gallons of a brown primer and 7200 gallons of zinc chromate primer* Helnts Manufacturing Co., manufacturers of HCA and Philco television cabinets* became a new customer of ours in 1950 and purchased 18.000 gallons of baking enamel and 1550 gallons of baking varnish. 07k2 were spent on laboratory development work, in the course of which 17 products were formulated and submitted. Masell Manufacturing Co. bought 13,500 gallons of green enamel for use on filing cabinets last year. #733 were spent on the develop ment of 16 finishes for this account during the year. A total of #6l6 went into improving slide fastener (zipper) enamels in 1950. We have two accounts in this field--Talomand Conmar. The perennial headache--zinc chromate primer--is again with us as a result of war preparations. A new foraula was developed to comply with Specification AN.-P-656 at a laboratory cost of #2320. So far, we have produced 6200 gallons of this item. Unlike previous formulas, our present fomula seems to have satisfactory aging properties. However, Specification AH-P-656 has been superseded by a new specification, MIL-P-6889a, and we may or may not have to alter our formula. Numerous non-specification zinc chromate primers are being sold in considerable volume. FeddersQuigan, for example, purchased one such primer for use on air conditioning units. Specification work is again on the increase and the laboratory spent #2522 in 1950 on the development of products to meet 39 military or federal specifications. The laboratory also prepared 3I4. navy inspection forms In 1950 at a cost of #9031 this was triple the amount spent on the same activity in 19fj.9. 0007-PTL-000942 i Wrinkle finish production reached an all-time high in 1950# Repre sentatives of New Wrinkle, Inc. reported that our August 1950 sales were the third highest among their licensees and that our sales for the first 6 months of 1950 ranked fourth. We produoe about 13% of the wrinkle finish volume of our entire industry (assuming that all manufacturers are licensees of New Wrinkle, Inc.). Pittsburgh Plate aiass Co. and Interchemical Corp. outrank us in sales volume. A comparison between our 1950 and 1949 activities in the wrinkle finish Held is shown below: 1950 19U9 Gallons Produced foriRoyal Typewriter Co. International Business Machines Others Total 34.500 29.000 36.150 937550 34.000 16,600 3f,,,320 86,926 Cost of Laboratory Work:Royal Typewriter Co. projects I. B. M. projects Eastman Kodak Co. projects Other work for specific accounts Research Total # 329 317 1014 2000 1763 F5P3 # 498 632 1947 No. New Wrinkle Finishes Developed 103 130 The above figures reveal that our increased wrinkle finish volume in 1950 was due almost entirely to the added* purchases of International Business Machines. The Increase reflects the use of our products by both the Endloott and Poughkeepsie plants of I.B.M. Heretofore, we have sold only the Poughkeepsie plant. In addition to the #329 spent on laboratory wrinkle work for Royal Typewriter Co., #510 was spent on the development of other finish types. The same situation pertains to laboratory work on I.B.M. projects; #317 was spent on wrinkle finishes and #664 on other finish types. By far the largest sum spent in developing any wrinkle account in 1950 was the #1014 spent on Eastman Kodak work. Seven finishes were developed before one was approved. This finish will be used on Kodascope Projectors. We also obtained another new wrinkle account--the National Sewing Machine Co.--and it promises to develop good volume, although only an Initial production order has so far been received. Unfortunately the bulk of our wrinkle business requires titanium pigment. Both Royal Typewriter Co. and I.B.M. now buy gray wrinkles; up until a few years ago they purchased blacks. 0007-PTL-000943 -7 Ou p research work on wrinkle finishes in 1950 was directed toward two projects! (1) the attainment of lower costs through improved manufacturing methods, and (2) the development of a vinyl wrinkle. The first project ended successfully. The second was discontinued. We not only failed to develop a good vinyl wrinkle, but we concluded that no vinyl wrinkle could be produced at a reasonable cost. The metal deoorating field continues to provide a substantial outlet for our products. A statistical comparison between our 1950 and 1949 activities in this field is tabulated below: 1220 1942 Tonnage Increase in U.S. Can Production (as compared with previous year) Production Gallonage Metal Decorating Finishes Enamels - U.S. Varnishes - U.S. Subtotal Increase 1950 over 1949 17$* 40,000 41,600 81,600 20$ 68,200 Enamels - Canada Varnishes - Canada Subtotal Decrease 1950 below 1949 7,500 31,400 3&,900 10$ 43,400 Cost of Laboratory Work Brooklyn Metal Dec. Co. projects American Can Co. projects Other specific sales projects Research Total $ 1178 49 705 148 $ 2500 $ 256 ot segregated 1475 3806 No. New Finishes Developed 57 60 Source - "Modem Packaging" Half of our 1950 development expense on decorating finishes was applied on problems of the Brooklyn Metal Decorating Co. This company purchased 33,800 gallons in 1950, or about 41$ of all products sold in the metal deoorating fiej,d in the U. S. A quarter of our laboratory work went toward the solution of American Can Co. problems} the balance was spread over a half dozen other accounts. The development of a satisfactory non-scorch. varnish for the Brooklyn Metal Decorating Co. has been our number one problem for three years--and still is. Our last sample was deficient only in that it caused fine print (on decorated tin) to blur slightly when the varnish was applied over it and the ink was still wet. Coarse 0007-PTL-000944 s -8- print was unaffected. Because varnish performance cannot be forecast in laboratory tests, it is necessary to ask our customer to make actual coating tests. Such tests interrupt production and hence are difficult to arrange. This results in lengthy delays between the development and testing of samples. Only two samples of non-scorch varnish were tested by the Brooklyn Metal Decorating Company in 1950. In 1947# the Brooklyn Metal Decorating Co. became involved in a lawsuit growing out of the spoilage of a large quantity of cottage cheese packed by Edelstein Foodstuffs in cans made by Fein*s Tin Can Co. It was alleged that the cheese was contaminated with banana oil from the "lacquer" lining in the cheese cans. The Brooklyn Metal Decorating Co. sued Pratt & Lambart-Inc, and the Watson-Standard Co., both of which had supplied "lacquer" for the cans in question. Actually, both companies supplied a baking varnish. Damages of $125,000 were claimed. The case came to trial in 1950. After eight days in court, the Jury returned a verdict in favor of ourselves as well as all other defendants. The Brooklyn Metal Decorating Co. suit cost our company nothing but the time of a few employees, but it illustrates a hazard that accompanies the sale of paint for use in contact with foodstuffs. The Brooklyn Metal Decorating Co. has no laboratory of its own and makes no tests to determine the suitability of purchased coatings for food tins. It expects its suppliers to assume all risks. We have no food testing facilities and we have no bacteriologist to make tests, if we wished to do so. This situation poses a problem as to the moral and legal responsibility that our company assumes in selling the Brooklyn Metal Decorating Company. Are our profits commensurate with *the risks? The methods employed by American Can Co. contrast sharply with those used by the Brooklyn Metal Decorating Co. The American Can Co. makes prolonged and precise tests of all paints to Insure their suitability for food can use. Our activities in the collapsible tube field are summarized below: 1950 1949 Tonnage Inorease in TJ.3. Tube Production 14#* (as compared with previous year) Gallons Produced fori- Wheeling Stamping Co. Peerless Tube Co. / 7,000 4,ooo All other U.S. accounts 6.000 Total TJ.S. production 17,000 Inorease 1950 over 1949 7% Total Canadian production 2,200 15,900 2,300 (Table continued next page) 0007-PTL-000945 9' mo I2ki Cost of Laboratory Work Wheeling Stamping Co. projects Other specific sales projects Research Total Not segregated $ 1501 No. New Finishes Developed 38 64 * Source - "Modem Packaging" While collapsible tube production increased 14# in the U. S., our own sales to this industry Increased only 7# Our position in the collapsible tube field has been weakening over a period of years and 1950 would appear to be no exception. Research work on collapsible tube finishes was drastically curbed in 1950, because our five year sales record has not justified the enormous research expenditures we have been making during this period. Two technical problems are uppermost in the collapsible tube field: (1) the development of an adherent vinyl type tube coating, and (2) the improvement of existing alkyd coatings. Vinyl compositions offer the chemical resistance that is much desired by the collapsible tube Industry, but they have so many disadvantages that no tube manufacturer is using vinyls in quantity. In 1950, Modem Containers, Ltd. purchased 220 gallons of vinyl tube coating for special jobs; about the same quantity was purchased in 1949* Improved alkyd coatings seem to be the real answer to this industry*s problems. We seem to need more than an improved alkyd coating to increase our sales in the collapsible tube field. Our largest purchaser of adhesives is the Carborundum Co. Production apd technical activities connected with this account are summarised below: 1950 1949 Production gallonage Cost of laboratory work No. projects assigned to laboratory 65,000 # 1332 30 12,500 $ 86? 26 In 1950, the Carborundum Co. purchased a larger volume of adhesives than it ever previously purchased in any one year, including 1941 when sufficient material was purchased to last during the following four war years. Carborundum "Past Cut" is considered the outstanding waterproof sandpaper by the automotive Industry. Its superiority is due in a large degree to the adhesive. The Carborundum Co. exnects waterproof paper to equal or exceed glue bonded paper in production volume within ten years. Now, waterproof paper amounts to one fifth their total sandpaper volume. 0007-PTL-000946 a -10- Our major Carborundum Co. project is the development of adhesives that work faster in production--that will do in one coat what three coats formerly did, and that cure faster. In addition to ordinary research and service work, our laboratory spent ten days in training a Carborundum Co. research chemist at our laboratory in paint testing techniques. For a number of years, we have been attempting to "break into" the General Felt Products Co. of Brooklyn. This company manu factures paper liners or Inserts for bottle and jar caps. The liners are varnish coated to resist transmission of liquids through the paper. In 1950, $850 was expended on research work which culminated in the submission of two acceptable products. Providing that we can obtain sufficient phenolic resin, we should be able to sell from 13,000 to 25,000 gallons of these varnishes during 1951- Thirteen years ago, we assigned the code M4068 to a phenolic resin solution which we have sold sporadically as a resistant clear coating for metal (on lipstick cases, the inside of airplane motors, lighting fixtures, slide fasteners, metal camera parts, etc.). The finish is just about the most resistant clear coating that can be made, but sales have been trifling because the coating could not be applied in production without skips or pinholes. This shortcoming has at last been overcome by blending the phenolic with urea resin. The modified product should fill a very definite need in our industrial line. In 1949, we spent #519 In matching the grinding liquids of the Jamestown Finishing Products Co. but obtained no business. In 1950, we resubmitted samples and obtained orders that totaled about 15*000 gallons (up to January 1, Fabric coatings demand a larger Investment in laboratory effort than do most Industrial finishes, as the following figures reveal 1950 w Production G&llonage Cost of Laboratory Work Hearts-Mason, Ino. projects Duro-Gloss projects Other work for specific accounts Research Total No. New Finishes Developed 20,995 $ 2017 W8 / 25&889 $ 5462 68 18,000 $ 1346 Not segregated 839 7724 $ 9911 77 Fabric coatings have been of two types--vinyls and highly plasticised nitrocellulose lacquers. The high cost of the plasticising resin (Paraplex) in these lacquers was overcome last year by substituting a resin of our own development and manufacture. The development of this resin was an extraordinary achievement as Paraplex has been the only available plasticiser for use in fabric 0007-PTL-000947 I -11- coatings for a decade or more. Our development places us in an advantageous position for we can now undersell competitors who presumably still use Pareplex. Vinyl resins are ideally suited for fabric coating, paper coating, and other work where extreme flexibility is required. One paper coater--P. H. Burt (subsidiary of Moore Business Forma)--is using one of our vinyl coatings and desires to buy it in substantially larger volume. Another paper coater--Victor Wagner Co.--would like to buy a vinyl coating but it is doubtful whether we can obtain the resin. All vinyl resins are on allocation. Our production of spatter or hammered metal finishes jumped from 5000 gallons in 1949 to 13*000 gallons in 1950, but the demand for this novelty coating seems to be on the wane. In 1950, we spent $1084 on laboratory work and developed 42 new spatter enamela RESEARCH Money spent on research in 1950 went into the following types of projects: Development of Alkyd Resins for P&L Manufacture Other Raw Material Investigations Development or Improvement of Finished Paints Studies of Testing Methods and Tools Mew Factory Processes Total $ 11,000 21,900 2k,000 8,000 700 $ 65,600 Of the 309 new raw materials investigated in 1950, only 67 were of sufficient value or Interest to be adopted. $2660 was spent on atyrenated alkyd work. This Included investi gations of resins offered by commercial resin houses as well as attempts to develop suitable resins of our own. So far, we have failed to develop any atyrenated resin that equals those now on the market* $3963 was spent on vinyl research and Included work on vinyl metal finishes as well as vinyl fabrio coatings. Considerabls time has been end is being spent on an investigation of the Daniel method for scientifically determining the optimum pigment concentration in stock pastes* and in formulas made directly from pigment. By optimum concentration is meant the best compromise between fast grinding and maximum pigment concentration. Heretofore, pigment concentration has been arrived at by trial and error* Our previous practices have not always been economical practices* By the time this study is concluded, we hope to increase the production capacity of our mills and make better grinds at lower costs than we have in the past. In 1950, $692 were spent on this project* 0007-PTL-000948 a -12- The laboratory has worked with the factory in studying the appli cation of the Dynamic Disperser (Laird Mixer) to lacquer and other enamels* So far, the Dynamic Disperser seems to be suited only to the production of flat wall coatings* Approximately 70$ of our research involves short term projects that are concluded after an average of five months of work* The remaining 30$ require an average of two years to complete* A very disappointing failure in our research setup was recognized in 1950* In November 1946* our General Research Laboratory staff was Increased by transferring an experienced and seemingly skilled man to that work* At the time, it was hoped that a larger general research staff would free that group to do more fundamental work and more work that would strengthen our company*s competitive position* In December 1950, it became evident that the hoped for developments were not taking place and the additional chemist was, therefore, assigned to new work* The setup failed primarily because of human factors* The additional chemist lacked persistence, vision, and knowledge, and the group as a whole did not function as a smooth working team* We still need to do more original research, but we will have to wait until the proper man or men can be found or trained* EQUIPMENT The following new equipment was acquired in 1950: 4 Stormer Viscosimeters Geometer Electric Dry Film Thickness Gauge Interchemical Wet Film Thickness Gauge * Hegman Fineness of Grind Gauge Electronic Moisture Meter Bristol Portable Recording Thermometer Torsion Balance Bureau of Standards Gloss Standards # 7S5 5o 128 118 ____12 #1322 The Stormer Viscosimeter has been adopted as our standard viscosity testing device for paint products, primers, undercoatings, and most laoquers* It replaces the Gardner Mobilometer and our lacquer tubes* The Stormer Viscosimeter was adopted because it is a laborsaving device and is more accurate than the equipment it replaced* It saves labor as there is nothing to clean after a viscosity determination, other than a polished metal paddle* The preparation of necessary data to enable our control laboratories to shift from one set of records to another cost about #1000* Eleven new books were acquired for the library during 1950* 0007-PTL-000949 PERSONNEL Personnel problems in 1950 were like those in 1941 In each of these years, labor turnover suddenly increased as the draft began to take its toll, and more lucrative jobs attracted our employees. A detailed comparison of the two periods is shown below: 1220 I2k2 1&2 Resigned Transferred to other divisions 16 7 32 11 of the company Discharged Enlisted or drafted Total separations Average number employees Separation Rate 23 1 23 -i mmmm 6 Jl 20* 7 42 22 61* 61 55 57 33# 11# 76# 40# * Excluding three employees hired for temporary jobs 2 4 2 8 55^, 15# If history repeats itself and the year 1951 resembles 1942, we can expect even greater turnover than we had last year. Twelve of our laboratory employees are of draft age, although three are veterans. One employee is a Navy reservist but is over 26 years of age. In 1942# we had only eight laboratory employees who were of draft age. As male employees left us in 1950, we replaced them with women employees or with draft-exempt men. The place where losses of male employees will be felt most seriously is in our finishing room. Fortunately we have a larger laboratory staff today than we had in 1942* If business drops off, we can lose some laboratory employees without replacing them. f In 1950, William Fee became our first and only laboratory pensioner. Because the laboratory is a relatively new department within.our company and has been manned for the most part by young people, no employee has heretofore been eligible for retirement. Avg, COMPLAINTS Complaint Record - Buffalo7 Factory Year Total Complaints Received Per Cent Justified Complaint Index* 1950 1949 1948 1941 56-1940 incl. 266 248 228 175 268 38 34 38 27 27 * Number of complaints per million gallons of manufactured goods 77 96 76 66 154 0007-PTL-000950 1950 was the fifth consecutive year in which the number of complaints has risen. However, due to a high production level, the complaint index for 1950 dropped below the 1949 index and was about the same as the 1943 index. The per cent of justified complaints rose over the previous year. Distribution of Complaints by Sales Offices Originating Sales Div. No. Complaints 195Q 1949 No Complaint Records Reported 1950 1949 -Central Industrial Western Eastern Canadian Total 100 94 72 29 18 313* 115 60 62 41 7 285* 64 None 47 a* None 135 91 None 41 38 2 172 *Theae totals do not agree with totals in previous table, because they Include subsidiary and Port Erie products as well as Buffalo-made products. Causes of Complaint 1950 % of Total % Justified Complalnta This Group 1949 % of Total % Justified Complaints This Croup Color Viscosity Gloss Specks, Dirt, Drying All Other 14 14 12 Seeds 9 8 Ja ioo 32 52 53 59 23 12 16 * 16 8 3, 9 Jk 10# 39 40 27 50 16 16 In both 1949 and 1950, more than half of our complaints fell in the first five categories. In both years, color and viscosity complaints tied for first place. Note that complaints on specks, dirt, and seeds are on the rise. Note also that the per cent of justified complaints rose sharply in all five classifications , except color. In other words, our formulas appear to be less / stable than they formerly were, or we are more careless in our ^ manufacturing, or we are less careful in our inspection. There j appears to be a relationship between production volume and l quality; when production volume rises sharply, quality suffers. ) In 1950, we had 9 complaints on mislabeling, all of which were justified and all of which pertained to Buffalo factory production. In 1949, we had three complaints on the mislabeling of Buffalo factory production. In 1943, we had no complaints on mislabeling. 0007-PTL-000951 i -15* Our factory believes that those complaints on mislabeling are due to printing department errors, i.e. the inclusion of some "foreign" labels in packages that supposedly contain a single type of label. Our subsidiaries have registered the same criticism of label shipments to them. However, a recent mislabeling complaint belies this general condemnation of the printing department as an entire shipment of wrinkle finish was received by I.B.M. in 5-gallon palls bearing a Lyt-all label. LABORATORY EXPENSE The total cost of operating our Buffalo laboratory during 1950 was $234*916 or 3# more than in 1949. This money was spent in carrying on three types of activities--research, work on specific sales problems (laboratory requisitions), and manufacturing services (product control, raw material control, manufacturing problems, small batch manufacture, etc.). Just how much money was spent in each of these three categories is shown below: Activity Research Special Sales Problems Manufacturing Services Total 1950 $ 65*600 58,200 111.100 $234,900 1949 $ 67,700 63,600 96.800 $228,100 1945 $ 30,000 59,000 61.100 $150,100 It will be noted that formulating and research activities took slightly less money than they did in 1949. On the other hand, money spent on factory work was greater than it was in 1949 and was almost twice what it was in 1945* The factory jobs that required additional effort were: 1950 Expenditures Exceeded 1949 Expenditures by: Manufacturing Control Raw Material Control Manufacturing Problems Complaint Investigations $ 7,000 3,500 2,800 1.000 $14,300 All of these Increases were a dlreot result of heavy production in 1950. Heavy production and raw material shortages always mean more manufacturing problems for the laboratory--and a corresponding penalty in other work. The cost of the laboratory in terms of production gallonage and sales dollars is shown on the following page: 0007-PTL-000952 Cost of Research and Formulating* 1220 mi Cost of Manufacturing Services_________ 1990 1949 Per gallon of Buffalo Factory Production 3.2^ 3.7^ Per batch made at Buffalo #5.75 #5.90 Per gallon of Combined Buffalo and Fort Erie Factory Production 29j 4*3j^ As per cent of Dollar Value of Sales of all Products made at Buffalo and Fort Erie 1.1J* 1.5 Research and formulating costs exclude that portion of paint work that benefits our subsidiary companies, but includes cost of paint work for benefit of Fort Erie factory. COMPARISON P&L LABORATORY SIZE WITH COMPETITORS The National Research Council has just published the ninth edition of its directory of industrial research laboratories in the United States. Data are based upon Information compiled between January and June 1950. The directory lists 2845 laboratories, 80 of which are listed as paint laboratories. However, only 33 of these 80 laboratories are actually connected with companies manufacturing paint. The remaining 47 are connected with raw material houses or are general consulting laboratories. Information about most of the laboratories connected with paint manufacturers is condensed in the table at the end of this section. The directory is primarily a tabulation of the number and of the training of employees in industrial research laboratories. For purposes of this directory, research was defined as ndevelopment work in processes, equipment, and production as well as fundamental and applied research"} it did not include production control or testing. Personnel was subdivided into three classes: (1) "pro fessionally trained" employees (chemists, engineers, and physicists) (2) other "technical personnel" (laboratory assistants and tech nicians) and (3) "other" (administrative, clerical, maintenance employees) In 1950, the sise of our laboratory dropped to place in the industry} in 1946 it occupied seventh place} in 1940 it ranked fifth 0007-PTL-000953 17- In 192$, It ranked second. The change in rank between the years 1946 and 1950 was due to two facts; (1) the Glidden Company was not listed in previous directories although it probably exceeded our laboratory in size in 1946, and (2) between 1946 And 1950, some four companies with laboratories were absorbed by the AmericanMarietta Company, the combined laboratories of which now exceed our laboratory in size. The latter company was not previously listed. Many companies previously listed now form part of other organizations. The laboratories of Sherwin-Williams Company and Pittsburgh Plate Glass have shown a constant and very substantial growth during the past decade. These companies also appear to have made considerable technical progress. The du Pont paint laboratories have exhibited a steady shrinkage. This may have been caused by the reallocation of technical personnel to the central research laboratories and to decentralization of paint work. The Devoe & Raynolds group seems to be undergoing one of its periodic reorganizations of technical personnel. Of the six Devoe & Raynolds subsidiaries, only the laboratory of Jones-Dabney has increased in size since 1946* Grand Rapids Varnish Corporation is another company, the laboratory of which is much smaller than it was in 1946* The laboratories of Arco, Standard Varnish, Rinshed-Mason, Armstrong Paint and Varnish Works, Stanley Chemical Company, Cook Paint & Varnish Company, Baltimore Paint & Color Works, and Pratt & Lambert-Inc. have Increased in size appreciably since 1946. The only disturbing fact revealed by the directory is the com paratively poor showing of the Pratt & Lambert laboratory with respect to its professional quality. Only 3Qj of our research staff is made up of college trained employees; only one other company ranks lower than we do in this respect, i.e. P. D. George Company. The top ten companies listed in the table have an average of 59 college trained employees in their laboratories. In 1946, the top ten companies averaged J3&& colleger trained employees. The trend is toward higher percentages of professional help. It could be that our dependence on a large number of non professional employees is false economy. We certainly are not in step with the rest of our industry. The primary reason for employing high school trained assistants instead of chemists is, of course, a matter of dollars and cents. A college trained chemist starts at $3000 per year; a high school trained assistant receives $1766 per year at the end of his or her probationary period. For the first few years of employment, a chemist is rarely worth the extra compensation; after five years of employ ment, however, the chemist has greater value than the average laboratory assistant with a high school education. 0007-PTL-000954 -18- .RESEARCH AND DEVELOPMENT PERSONNEL 1950 Rank Over 100 Employees Total Research % Professional No. Volumes Employees Employees in in 1950 1950 1946* 1940* 1950 Staff Library 1 Sherwin-Williams Co* 527 435 274 * (Not including Acme 2 Whitehead or Lowe Bros .) Pittsburgh Plate Glass** -309 2kl 71. 1 3 B, I. du Pont** 245 254* 27Z' 4 Glidden Co,** 181 5 Interchemical Corn.** ^ II4.6 49 6 Devoe & Reynolds-all div*/l30 149 126 ' D&R - parent co. only 47 107 101" Jones-Dabney Co. only 46 42- 25 Other divisions only 37 7 American-Marietta-all div.'lll Berry Bros, only 22 23 38' 38 44' 504847' 42 65 54 45" 36 3200 1000 450 14-000 25-99 Employees 8 Sun Chemical-all div. 93 9 Cook Point & Varnish Co. 56 29 54 10 PJLnshed-Mason Co. 51 36 11 * Pratt & Lambert-parent co. 50 Arco Co. 49 41' 57' 29 J-3 Stoner-Mudge, Inc.- 47 Acme White Lead (S-W subs.>-43 33 39 15 Standard Varnish Co,' 38 25 16 Lowe Bros, (S-W subs.) " 36 23 29 17 Armstrong Paint & Varnish "'25 19 57 79 59 30 55 45 37 90 47 44 1200 220 900 650 500 200 100 1500 100 Less than 25 Employees 18 Baltimore Paint & Color 22 14 19 --Minnesota Paints, Inc, 21 20 Stanley Chemical Co. 20 15 17 21 P, D. George Co, 18 18 22 Grand Rapids Varnish Corn. 16 28 17 23 O'Brien Corp* 16 14 11 24 25 Hilo Varnish Corp. Paragon Paint & Varnish 10 10 10 5 13/ 26 Boston Varnish 8 27 Montgomery Ward & Co.** 28 Chessman-Elliott 6 10 54 29 Forman, Ford & Co, 3 73 43 65 17 56 44 50 50 50 66 60 100 500 400 300 100 200 200 500 300 ** Paint division or* divisions, only * Obtained from previous directories 0007-PTL-000955 y -19- SUMMARY OF 1950 LABORATORY WORK 1950 Hew Products Developed 1,511* Sales Problems Submitted to Laboratory 1,688 Sales Problems Reported 1,693 Hew Research Problems Assigned 81 Research Problems Completed 71 Hew Raw Materials Investigated 309 Raw Material Shipments Tested 3,021* Batches Tested by 3uffalo Control Lab* 19,221* Batches Tested by Port Erie Control Lab. 2,557 Service Calls by Technical Personnel 133 Technical Department Bulletins Issued 33 Paint Manufacturing Bulletins Issued 71 Ponoula Analysis Bulletins Issued 255 , 19li9 1,603 1,790 1,811 60 66 353 2,156 16,365 2,135 139 63 53 33 0007-PTL-000956 Pebruary 8, 1951