Document NGnxrDRLbdn3n5L0RN0QGwjkp

5V.i~ Adire** Before Northwest Mining Assoclatloc Spokane, Washington Dec wber 7 19U6 a a / ' l ',3 :i THE COMPETITIVE POSITION OF LEAD lelix Edgar Wor**.r, Secretary Lead Industries Association Sew Xork 17, M. T. * I propose to speak to you today isainly aboit the coopctitlve position of lead. As a rule prospectors and Mining aen are so <.eopletly absorbed on the aany problems involved In finding and producing lead that they usually have only Halted time to study the economic forces constantly at work on the lead aarket and which deters!ne whether or not the price of lead Is high enough for a nine to be operated profitably, whether additional prospecting is war ranted, or whether a going sine must shut down. On the supply side, the effect of hundreds of Individual lead n.lnlng operations all over the world leave their staap on the price of lead In a free narket, but it is the other side of the ecor.~slc picture which I wish to discuss, namely, the desand for lead and the ecoputltion it Bust aeet, with a word or two about the future. This critical i period In our econeedo history, now that Govemaent controls on price and im ports have been lifted, is a good tine to sake the surrey X have in ndnd. The current lead shortage has been so widely advertised that it would be quite easy to obtain the laprea si on that little lead Is going to Industry these days. On the contrary about 600,000 tons of lead will be consumed fcy American industry In 1916, despite labor shortages and recent restrictive N 4056 - c.v".. r ' -2 Government regulations. This is a larger tonnage of lead than was consumed annually In the United States in 1936, 1937, 1936, 1939 or 19i0. Ths shortage today is created by a deficiency in production and imports in nesting the great postwar increase of lead requirements in every direction, demands which are estimated to total over 1,000,000 tons per year. We are apt to forget that the United States is still growing and '1 that our standard of living requires a constantly increasing supply of all netala. 4 Every etal has certain qualities that give it a preferred position in some aarkets, iron because it is relatively inexpensive and structurally strong has incacnss application in construction of all types. Copper, because of its remarkably high conductivity is immediately thought of in the electrical field. Zinc, because of Its unique protective qualities on ferrous products, precepts the coated metal field, aluminum, because of its lightness serves the airplane industry. I Then we cone to lead, we have a somewhat different situation. Lead has many qualities that give it unique and wide application in Industry bat with no single quality deednant. Such characteristics as its weight, unusually high atmospheric and chemical corrosion resistance, softness, esse of forming useful chemical compounds such as white lead, red lead and litharge, and even its toxicity, all provide large markets for the metal. In fact, you might * well say that every quality that lead possesses finds seme application in In dustry Just as, it is said, in slaughtering pics, they even use the "squeal." When we analyse the outlets for lead, however, we are struck by ths fact that three or four uses era of outstandli^ significance and X want to devote s little time to discussing them, and their significance to your lead mining operations. .5 : <! -3 First of all, we haw tha storage battery industry vhloh consumes about 300*000 tons of lead par year# At the aaaa time, however, from a con servation standpoint, tha storage battery consumer returns to industry a Jt large proportion of tha melil converted to storage battariea each year so that % must consider tha storage battery industry as aaraly borreefing the major portion of the laad it uses, Va nada a survey sons tin* ago to ascertain hear much natal was ultimately raooverad from tha storage battery Industry and came to the conclusion that 602 of the lead used in storage batteries Is ultimately recovered as scrap, Tha storage battery Industry Is, of oourae, firmly tied in with automotive construction and usa. It has that field exclusively for its am. There Is no competition worth mentioning unless it would be the hand cranking of automobiles, Fron tine to tine other batteries are invented, and tha nickel-iron battery la well known to ay listeners, but to serve tha auto* active industry, a lm cost octal In plentiful supply must be selected and the field is narrowed down very speedily when those two isportant requirements are examined, Therefore, I look to the continued use of large amounts of lead for storage batteries for an indefinite period as one of tha fundamental outlets for the lead miners and shelters in the United States, let us chalk up, there* fore, at least 300,000 tons of lead ss the aaount the storage battery industry will need per annua for the next year. The second largest use of lead Is by tha electric cable Industry, both for telephone toll cable, which is so well known in our metropolitan oenters and may be found stretched on poles alongside railroads tlirough tha United States, or burled in the ground, and also electric power conductors for underground high* tension power communication, The large growth in the use of telephones in tbs United States, and the prospect of still further growth, will require extra* ordinarily large amounts of lead. $' v. LIA21568 -kTho tetrican Telephone & Telegraph Company recently announced that It would expend about C2,000,000,000 to enlarge lt faoilitiee in the United State* and that, within the next three to fire year*, some 20,000 silea of toll cable will be required, 12,000 wiles of it coaxial cable for television purpose*, aa well . for phene Beg sages. I an reliably informed that this program aloofe rill necessitate a consumption of about 135,000 tons of load per year for telephjne cable sheathing. This estimate doss not take into considera tion the requirements of the power cable industry for nigh tension underground installations. An estimate Z received from qualified experts leads ms to be lieve that about 7$,000 tons of lead a year could be utilised for power cable con struction next year. Substitution for lead in cable manufacture can only be don# with jreat difficulty. All in all it looks as if the cable industry will require for the next 1 few years some 210,000 tons or more per year. Although 200,000 tons of lead may appear record-breaking, it is approximately the tonnage consumed by cable manufacturers back in 1929 and 1930 but it is far greater than the cable re quirements of recent years when construction of all kinds fell off. Bow let us pass on to the tlird important market for lead, namely tbs requirement* of the building construction industry. If we Include in bulliurg construction, both residential and industrial structures, and also the lead products such as paint used in the maintenance, as well as in the actual con struction of buildings, we again arrive at a large demand for lead. If, la addition, we also consider another great building outlet - chemical plant con struction, the total reaches impressive proportions and becomes the second largest colloctlvo outlet for the metal* Wherever sulphuric acid is used, lead is la demand but it meets com petition of rubber, glass, plastics end stainless steel; Fortunately for lead, the current higher price should not prove too such of a barrier to Its con tinued selection as a preferred material with sulphuric add because chemical tv o ._ v vSt -s} installations of lead can generally ba salvaged in toto, and the salvage value of lead oust be deducted from its first cost. The salvage value, too, sill rise as the price of virgin lead advances, or vice versa. Approximately 50,000 tons of chemical lead are used per year in chemical operations. bead finds wide application in plumbing, end as a calking material. These are also highly competitive fields. In plumbing, lesd sects the cco petition of the other settls, copper, tine and iron. In calking, it competes '3 with cement, sulphur and sand compounds. No one can tell et this moment Just what the ultimate outcome for lead will be. It depends somewhat on how much all of the netals and materials advance In price durin0 the postwar reconversion period. When we touch the plutabing industry, and this applies to any octal or material used in building construction, we touch an industry that is sur rounded bl building codes and plumbing regulations. The lesd Industry must be eternally watchful in seeing that its octal is not discriminated against in these local laws and prcoulgations. I might say that this field of operations has occupied the Lead Industries Association for aany years and will continue to do.so indefinitely as long as the present situation prevails. It Is the sort of s job priatrily in the province of s trade association and absolutely neoessary if the lead mining industry Is to protect this useful outlet* Incidentally, In the field of lead plumbing, we have developed a type of unit plumbing construction which can be assembled In the shop by skilled :* plumbers and erected on the Job very such easier than rigid plumbing because lead is more readily adjustable. Successful lnstsllrtior.s have been pioneered right hers in Spokane. I have a picture of It hare. In (he future, this type of installation will depend upon the price of lead compcrod with competitive metals, tbs cost of labor and possible further improvements in lead plumbing design. Oiven an ample supply of lesd, it has most Interesting possibilities* I ' . I .... ' ;" 'a*''--1*- "is..'** .. . : - -t-s : '."miss- LI *21570 -} 6 Calking lead is used in large quantities, as you well know, for both water main construction and for interior soil or waste lines in plumbing sys s tems. In recent years, sene 35,000 tons of lead per year have bean used for \ that purpose. Despite strong coaoetition from cement and sulphur and sand compounds, lead continues to maintain its superiority and, even at higher prices today, ahould preserve this flsld because of its durability, softness . and aasa of making rapairs, . i ` S >' A Sheet lead la also used in building construction as a flashing and waterproofing material, not to mention its application as a barrier to x-rays, ' The largest outlet for sheet lead, bearever, is doubtless in chemical construo- , tloc for lining tanks and vats. This will continue to be an important outlet for lead but, as I said before, it la highly competitive and we must leave no atone unturned to learn all we can about the use of lead In this field to maintain our competitive position, 7a now coos to another element in the construction field where leed \ gives unparalleled service and that is in the protection and maintenance of structures with paint. Here both white lead and rod laad perform a service that be6an centuries ago. In fact, up to a few years ago (l?2li), tf use '5 of white lead occupied the premier position in the list of applications for lead. It was the principal outlet of the miners. Hewer uses in recent years have eclipsed it, notably storage batteries end cable manufacture, and durli^ the war, even ethyl gasoline, but only because of severe wartime restrictions on the use of lead In paint. Thite laad still remains an Important use of the * metal and one of the most lntsreatia** Despite all the developments that have taken place in paint technology over the last fifty years, white laad Is still lndiapensable in the manufacture of a good exterior paint. However, because of its relatively Ugh coet com pared with other paint pi^sonts, thara is a distinct tendency for paint aanu- 1 i ?i-r -7facturer# to use as little us possible in their fomulatlona and, to digress j j ' a moment, I would like to show you what our industry has had to contend with in maintaining the position of white lead, or improving it, in the paint in dustry, Z have here a booklet which shews the analysis of sotae paints and varnishes sold in the State of North Dakota, where the regulatious require the 3 foraulss to be printed on the can, a praotioe which numerous other states have since followed. The reason for such s regulation is obvious. So many abuse* occurred in the marketln. of Inferior paint among the farmers that, in self defense, North Dakota pasaed labeling laws and occasionally publishes results of its paint investigations. Bore, for example, is an exterior paint manufaoH tuned by a large paint manufacturing conpany that contains water and excessive amounts nf extenders. Here is another -- and another, I think you will see from this brief expose bow important it is to acquaint the American public with the n -its of white lead and why hundreds upen thousands of people insist on having nothing but pure white lead on their " homes because they know by experience that white lead provides durability in paint. It is my conviction that we oust do a lot more to educate the people of the United State* to the merits of white lead and the responsibility in ~ part oust rest upon the aiming Industry for, after all, the paint manufacturer can use other and cheaper Ingredients in his paint. In this connection, you will be interested to know that the Lead In dustries Association has been working closely with the D.S. Office of Education and the State educational departments of nearly every state in the United States, seeking to assist then in establishing oourses on paint Instruction which would help tha universities, colleges and high schools of the United States 1m procuring the proper appreciation of what constitute* a good paint. - .: jer. LIA21572 % -i .. a i V". *'L- -6Hare Is a manual entitled, Painting Farm Buildings and Equipment* which waa prepared with the cooperation of the 0.5. Office of Education, and which has been widely distributed in the United States. Here is another manual entitled, "Instructor's Manual for Teaching Exterior Painting of Para Buildings and Equipment," designed speed fleally for the use of Instructors and prepared for us by Professor G.A. Scheldt of the Colorado A fc U College. As a result of all of tnese efforts, X aw {.lad to s*y that many techni cal courses and text books used throughout the United States for instructional purposes hare been improved in their treatment of paints and painting. The Job will be a continuing one, however, six' me cannot afford to relax our efforts even though currently we may be tevtwd to do so because of the ease with which cry lead product can be sold. Our cooperative work has also led us into close cooperation with the grett J,caber Industry of the northwest for years, because, as you can realise, lumber and paint have so much in common. If hoae owners become dissatisfied -ith the use of lumber construction because of the high cost of paintin^, they naturally turn to the use of sub stitutes such as cement, or asphalt ahinnies, or brick, which do not require our product and we both lose. The lumber industry also has done an excellent Job in acquainting its ustrs with the necessity of usln^ only high quality pautts on lusher structures, through leaflets and booklets. As soon as restrictions on its manufacture have been removed end the lead procurable, it is reasonable to issue.* the production of white lead, would run around 100,000 tons of lead a year at least. Even acre white lead will be necessary at the start to fill up the practically enpty pipe line to the retell stores. It is difficult nowadays to find any white lead available to the consumer. Jf- *' rafrf* y - ., 'ggS&.-i 9 Last, but not least. In the construction field. Is the use of red lead s on steel work. This remains the standard natal protective paint. Nothing has been discovered to equal it so far as our cam investigation is concerned, Re cently Improvements have taken place, hoeever, la special formulations for marine application that noed not concern us here. Competition In the field Is Intense and promises to be more so with the development of newer pi^aents. Our industry mobilised its technical resources a few years ago wheretyr research is constant ly gedn. on looking towards even better performance from red lead formulated paint. Beoently sene of the results of this research have been disclosed to the paint industry for its use. Red lead for paints for storage battery and other purposes requires about 1:5,000 t-on* of lead per year* AH in all, if w* survey the number of lead products that go into the construction industry, and include paint, we find that the total demand would ,S be perhaps ?S0,000 tons of lead a year,* 1 New, let us examine one of the sort spectacular new uses of lead of 't recent years, naiely the manufacture cf tetraethyl lead. During the war, ---'t"i j the consumption of lead for this purpose reached s peak of about 95,000 tons 'I in 19hh, due largely to huge military requirements, from tine to time one hears of substitutes for ethyl fluid and of course, the refining industry has developed many hydrocarbons of high antiknock value, but the fact remains that 4 the cheapest way for the petroleum industry to increase the antiknock value of ' r.c the gasoline used by the automotive industry Is to and tetraethy lead. Indeed, a great many refineries cannot get alon^ without it. fnis fact was forcefully brought to ovr attention during the acute siwrtags of lead. The use of tetra ethyl lead in gasoline eliminates the redesigning of refinery equipment, which would be extremely costly. The future of ethyl gasoline locks bright but I do not think w# can anticipate the use of the large tonnages witnessed la the lest few years, oven so, I should not be surprised to see it remain well over 50,000 A *>.v ii' i ` ' ^ "V ',,VX../ `' ' A `-4 .3 r M A 'i i ? 2 a - A A i X LI A 2157 A - 10 tons of lead a yr, perhaps 70,000 tons* Now, let us ass where we stand with the analysis we sad#* of the lead situation so far* To recapitulate, we need roughly* 300.000 tons of lead for storage batteries 250.000 tons of lead for construction and maintenance 210.000 tons of lead for cable 60,000 tons of lead for ethyl gasoline 820.000 Before we examine any of the other major uses of lead, let us see what this potential demand alone means to the lead s&ning Industry of the United States. Our domestic lead production last year was about 350,000 tons. Next year we hope It will be 150,000 tons. Scrap lead production will total, say, 350,000 tons. The twe together are 800,000 tons. Tou can see at a glance that we have already anticipated an outlet for lead that will sore than take care of the estimated potential domestic supply. However, there ore a great many other uses of Importance equal to those I have already described. Although the volume of lead they consuae is not so striking, we cannot afford to neglect thea* For example, we have the requirements of the asaunltlon Industry to meet for peacetime aasunitlon, which should consume about 140,000 tons of lead per year. Then there is the use of lead by the printing Industry, a fairly steady volume, amounting to seme 25,000 tone of lead a year. Then there Is the vast tonnage of lead used in the compounding of bearing metals for railroads and automobiles and other machinery, which probably runs about 30,000 tons of lead per year* Solder alor*, which has too aary applications for me to list here, should consume a. other 50,000 tons of lead per year. In tide connection, it Is :;c: y ...t V vs -n- : slgnificant that during the *ir, the amount of tin available for (older u sharply decreased and the role lead could play as a substitute was corres pond!rv.ly increased. Field report* indicate that techniques hare been developed 1 tc use high lead content solders et considerable- saving over high tin content solder, so that I do not look for ouch change in the use of lead ia the solder industry, * There are still other important uses, for example Insecticide.. Lead S arsenate, which is so important In the economy of the northeast apple and fruit industry, should consume about 25,000 tons of lead per year. Then X 1i recently spoke to the convention of the Agricultural Insecticide and Fungicide Association In Uew Jersey, and told them about the lead shortage, X felt that * perhaps here was one use which we would have to kiss goodfay because Of the ? advent of DDT but, to my surprise, X was informed that DDT is not a complete answer to coddling noth control and we nay look for a continued use of large I 1 tonnages of lead arsenate. This brings up the question of toxicity of lead, on which X expect to comment briefly in a moment. 3 Another use of lead which crtr* to substantial proportions during the i. war fer lack of tin and alusdrrsa, was the manufacture of oollapaible tubes* i About 15,000 to 16,000 tens of lead were used for that purpose. Ko doubt this use will be affected by the growing competition of aluminum, but as entirely different equlpoent is needed for the manufacture of almima tubes, it is quite likely that the collapsible tube industry will continue to use a goodly portion of lead, particularly as the cost rf the ingredient in a collapsible tube Is generally far more than the coet of the container* We have so far neglected to mention lead foil which could have been used in huge tonnages during the war but Government prohibitions prevented* Here Isad will meet strong competition from aluminum and may lose a large part of tbs market but lead fell will find acne application in industry for an indefinite i.i -tsbJ'V*. y - 12 period, perhaps to the tune of 15*000 tone per year. Let us skip quickly over such other important items as the use of lesd in brass manufacture, the manufacture of lesd headed nslls, j l s well as costing of steel and wire and sheets* the use of lead In the manufacture of rubber and In the ceramic Industry, In brake linings, and dozens of other uses. In the segregate, they run Into an Impressive tonnage and would account for perhaps an additional demand of 15,000 to 1(0,000 tons* And now for a grand recapitulation. If you add other uses I have nenticned to our first sub-total of 820,000 tons, the grand total becomes about T 1*055*000 tons -- a fair estimate of the supply of lead needed next year to '? keep the confusing industries contunted. With only about 800*000 la sight froa domestic nine production plus scrap it is easy to see why we shall have to Intensify our efforts to increase production and exploration in the meantime depending upon our neighbors in Canada* Mexico and Australia and Peru to fill up the gapw Please note, however, that some of the uses I have listed are cca petitire and, if the price of lead should remain high, lead will undoubtedly be displaced, exactly where and at what point X would hesitate to say* but this is a fusibility the lead mining industry oust never lose sight of end must be prepared to face. Ve knew by bitter experience that markets can evaporate quicker than they grew. We eust not be lured into any position of complacency by today*a comforting outlook for lead. Markets once lost ere difficult to re* gain. The current period of Intense demand for lead therefore should be utilised to obtain more and more fundamental information about tbs use of various lead products old and new so that In times of adversity our knowledge can be used to help sustain the demand for lead and keep the nines operating. * It is also th new dnaands for lead now appearing on the horizon which should make ue a bit apprehensive about an adequate future suj>ply. X refer to VN v. . - 13 - 4 the atonic power age. Anyone here in the northwest who ponders on the scientif ic developments t Hanford or at Oak Rld^e knows that they portend large uses of lead for shielding human beings front dangerous radiation of nearly all kinds. The practical use of atomic power is in part a shielding problm. Hanford and Oak Ridge used hundreds of tons of lead in shields. Nothing is better for the purpose, A good illustration of the Job lead can do in this respect was told me only a few days ago by a representative of a company ` canufacturlng betatrons - one of the latest devices for generating high voltage i x-rays. The betatron can deliver x-rays of 20,000,000 v. whereas heretofore a 1,000,000 or 2,000,000 v. aachine was considered tops. To shield the operator, it is necessary to use either 7 in. of lead, or CO inches of con crete about 20 ft. frea the machine. Space saving tlirough the use of lead, is, _ therefore, great. Atomic poser developments proedse to make important new demands on our metal. One of the problems faced by the lead mining industry, uoreso than others, is the fact that lead is admittedly toxic and often receives unfavorable publicity in newspapers and magazines that undoubtedly do the Industry serious damage. The Lead Industries Association for many years has conducted funda mental research on lead and lead poisoning, and is continuing to do all it caa to help correct mistaken hygienic impressions about lead. It is cooperating closely with the American Uedlcal Association in this field. How nistaken these impressions can be I would like to shew you through few examples to illustrate the type of Investigations w* have nade. Hero follow a few exaoplest Here is an article which appeared in a X-tlonal Safety Education magaaine entitled, "lead Toys - Lead Paint - Lead Poisoning," which was shown to be entirely erroneous, and was later retracted. mmm m w > \ ii 1 1 ~y T* -A 3 i 4 , :! "3 m-S '3 LIA21578 1U Her* again is smother esse which appeared in the syndicated ooluans of Dr. Dafoe, a few years ago, on the danger to children froa lead in toys. It was based on an article entitled, "Toy Dishes and Acute Pluablsm," which appeared in the Journal of the American Medical Association, wherein a child was alleged to have contracted lead poisoning froa drinking orange Juice out of an alusd nun cup. It seems incredible and authorities tell me it is, let it was seriously accepted and needlessly alarmed millions. Last, but not least, the magazine, TIHE.two years ago, published in its coluan on aedidne, an article describing the latent effects of lead poisoning in children who. had contracted the illness froa chewing paint off toys and dribs. Not even the point was shewn to be lead nor was the lead poisoning proven. These few tousles show how important it is for us to be alert in cor recting erroneous impressions about lead. Herr again, the Job Is never com plete. fe must continue to stu.y our nctal froa its hy^enie standpoint so that it will be used lnttlli_en*.ly, for there 1; no reason why any, man, woman or child need be sad* ill from contact with lead from aloe to finished product, I hove tried to sketch, briefly to be sure, sane of the broader markets of the lead industry, I hope that 2 have left with you a picture which sheers how important it 1s for all oi us to redouble our efforts to find new lead mines, and to work existin, deposits intensively. I think this is most essential because, even if the desand for lead is unusually pressing Just now, there is no guarantee that this will always be so, and we do not want to see any narket lost by lead if we can possibly help it. Z personally would not like to see lead rise to such high prices that It will be titrown out of application in discriminately, It lr difficult to recapture lost markets. At the same time, I hope that this analysis has shewn you wlgr 1 think lead has such a bright future and vly it is such a fasdnatin, industry nith which to be associated. t LUZl'79 d Q3 Vi - 15 This great mineral prorlnco of the northwestern United State* and Eritiah Colurtl*, one of tha world's oQst Important source* of lead, now has new responsibilities thrust upon it to help cur* the lead shortage* I am confi dent that under our free enterprise system It will aore than do lta part and disprove the view that all the lead In the United States has been discovered and show that the Mineral belt of the Worthiest contains much hidden wealth awaiting the Mining geologist# attention and skill, or the miners*pick* Z have unbounded faith that her* as elsewhere in the United States the lead aim ing Industry's resourcefulness under the restoration of free markets will help to cure the lead and other nets! shortages* I>