Document VKObdX635jMXgBJk4NMEw75Z8

THE LABORATORY IN 1947 v 0007-PTL-000889 THE LABORATORY IN 1947 The year 1947 was one of substantial technical progress. Idany produots were reinstated In oar Has, several new postwar finishes were plaoed in production, and our line as a whole was returned to prewar quality or tetter. All these changes orsated trying factory problems, which in turn taxed laboratory facilities to the limit. A total of 526 formula changes were made in listed items (of which 236 are currently available in the 0. S.). In number and complexity the formula changes made in 1947 exoeeded those made in any previous year. PRODUCTION EFFORT The demand for our produots remained at a high level throughout 1947, but production In general was limited by the amount of titanium dioxide we were able to obtain. Strange as it may seem, we received 15more titanium dioxide in 1947 than in 1946 and about double the amount that we received in 1941. Total receipts of all types of titanium pigments at Buffalo amounted to 3.4 million pounds in 1947. While factory achievements are not properly a part of a laboratory report, some production statistics developed for this report proved so surprising that they are summarized in the next few paragraphs as a matter of general interest. Our Buffalo factories produced slightly more than 2.7 million gallons in 1947, of whloh 35$ represented our principal listed pigmented specialties. Our total production of these'specialties was a third higher in 1947 than it was in 1946 and waa 75$ higher than it was in 1941. Speolfioally, the 1947 production of the following lines was double, or more than double, what it was in 1941: "61** Floor Tarnish Colors **6l** quick Drying Enamel White Lyt-all Doable Duty Primer Lyt-sll Flowing Flat Oil Stain The 1947 production of the following items increased 50 to 755* above 1941 production: **61** Floor k Poroh Enamel "61** Enamel white Gloss "61** Enamel Eggshell * White and Colors "61" quick Drying Enamel Colors Paste Filler 0007-PTL-000890 -2 Solidex bad cot yet bean developed in 1941 but 1947 production of this oca lice amounted to 120,246 gallons. RAW MATERIALS During the last half of 1947* shortages of pentaerythritol (since relieved) and phthallo anhydride seriously threatened produotlon of finishes containing alkyd resin. The shortage of phthallo anhydride was alleviated by substituting ooaoeroial alkyd resins, of whioh there was and is no shortage, for resins of our own manufacture. Today, Effeoto, Verdure Trim & Shutter Finish, Vitrallte Transportation Finish, Lyt-all stippling Eggshell and The Sew Vitrallte Enamel are all produced from purchased alkyds. In these lines, 235*527 pounds of purchased resins were consumed in 1947* This represents about 50,000 pounds of phthallo anhydride --an amount equivalent to a fifth of our total phthallo anhydride receipts. Some of these purebased resins permitted us to make slightly better and slightly less expensive finished paints than could be obtained with our own resins; most substitutions resulted in substantial cost increases. One Important drying oil. Selected Oil 200, became unobtainable early in 1947 and our consumption dropped frost 139,238 gallons in 1946 to 12,403 gallons in 1947* This oil was a key constituent in "61" Enamel Eggshell and Vitrallte Enamel Eggshell. The substitute foxmulas, produced from April to October, lost their gloss and were unsatisfactory. Conditions have once more changed and we are again purchasing Selected Oil 200. Our eggshell enamel formulas have been returned to their prior quality. A new drying oil derived from soya oil--Seleoted Oil 500--was successfully and economically substituted for linseed'oil in house paint and in some 71 other listed items (about one third of our line) for part of the year. 147,000 gallons of Seleoted Oil 500 were consumed at Buffalo and at our subsidiary manufacturing companies during 1947, but its use has now been discontinued beoause linseed oil costs less than Seleoted Oil 500, The clerical and supervisory work connected with the adoption of this oil and then its withdrawal was staggering but the oil saved us about $44,000. Research work connecten with Selected Oil 500 cost $1881. The "odorless" solvent adopted for use in lyt~all Flowing Flat in 1946 was suddenly withdrawn from the market in 1947* A search for a substitute was immediately started and ultimately led to the adoption of another solvent, before our stocks of the first solvent had completely run out. The use of "odorless" solvent has been extended to Solidex. Considerable work was done in 1947 in examining chlorinated rubber (Parlon) and silicone resins. The former oan be used effectively to make chemical resistant finishes--the latter to make heat 0007-PTL-000891 3- resistant finishes (that withstand up to 1000F.). Several chlorinated rubber coatings are now being produoed. The silicones are resins for the epicure, since they cost about 20 tines as much as typloal varnish resins and produce paints that have to sell in the prioe range of #25 to #30 per gallon. We actually sold a few gallons of paint at this prioe level to a manufacturer of eleetrio heaters. One of the most interesting and valuable raw materials uncovered in 1947 was an antifoaming agent for use in varnish making. Foaming is a nuisance and a fire hazard in oooklng many types of varnish; it is also a deterrent to production for a foaming kettle requires the undivided attention of a varnish maker. When foaming Is absent, a varnish maker can process several kettles simultaneously. If the new antifoaming agent, in an amount equal to a quarter of an aspirin tablet. Is added to a hundred gallon batoh of varnish, foaming subsides instantly. This agent should help to lower varnish production costs in the future. Incidentally, the agent la a silicone resin. Minute amounts of other silicone resins have also been found useful in reducing the streaking and flooding of colored enamels. Substances whioh reduoe foaming and streaking are known as surfaceactive agents. There are literally hundreds of such substances, small additions of which have a profound effect on settling, sagging, wetting, leveling, and other properties, in addition to foaming and streaking. The Importance of surface-active agents in paint formulation is just now being recognized. Unfortunately, no general rules exist--the agent whioh retards streaking in one formula may have no effect on any other formula. For years, Amberol F7, a modified phenolic resin and our moat widely used "hard" resin, has been a key constituent in such products as "61" Floor Tarnish, "61" Quick Drying Enamel Colors and "61" Floor A Foroh Enamel. Inst year, due to a rather peculiar economic situation, pentaerythritol resins were less oostly than Amberol F7. Formulas were changed to take advantage of this fact and our consumption of Amberol F7 dropped from 297 thousand pounds in 1946 to 176 thousand pounds in 1947. The cent and a half per pound differential between the two resin types saved us #1660 without a single sacrifice in produot quality. One new raw material--sorbic add--threatens to be a future competitor of maleic anhydride as a resin chemical and oil treating agent, sorbic add is not yet in commercial production, but we tested it in 1947 and found that it makes harder-drying vehioles than maleic anhydride. Development work cost #446. Another raw material--dicyclopentadiene--is a oheap and plentiful by-product of the petroleum and gas refining industries. It, too, offers Interest as a resin chemical and as an oil treating agent, but its paint uses are covered by a series of Involved patents. Nonetheless, we are investigating its value in exterior and Interior finishes and have spent #462 in developing information on the produot. 0007-PTL-000892 -4- In an average year, the laboratory examines from 300 to 400 new raw materials, from which it obtains many of Its ideas for new prodaots and product Improvements. Tbs New Vitralite Snanel, for example depended upon the development of a proper resin: "odorless" Lyt-all flowing Flat had to wait until a suitable solvent was produced. Frequently, the laboratory is able to Interest a raw material supply house in developing a new or improved commodity. This was the ease with The New Vitrelite Enamel resin. Last year, we examined 353 new raw materials, from which were oulled 70 items r actual adeptloft. The examination of these new materials oost 8813, of which #7000 was spent In obtaining only negative formation. TRADE SALES DEVELOPMENTS The following trade sales finishes were materially improved in 1947: Lyt-all Stippling Eggshell - Now produoed in a true egg shell and completely uniform sheen; formerly showed differences in gloss between high spots and valleys. Development ooet #480. Lyt-all Flowing Fiat - Now has better overnight hardness, better paohage stability and better tintability than any prior formula. Development cost #1543. Solidex - Now made with improved texture and with reduced odor. Development oost #204. Bar Top Varnish - Now made on an extremely alcohol resistant formula; formerly same as "61" Floor Varnish Clear Gloss. Pratt*s Patent Liquid Drier - Now made with very mild odor. "38" Pale Trim Varnish Gloss, Satin and Dull - Now made with easier working qualities. Effeoto, The Outdoor Enamel (U. S. formula) - Now wide to dry in 4*6 hours without wrinkling, even under adverse conditions of application. Development cost #1529. "61" quiok Drying Enamel - Wartime formula replaced by # .faster drying postwar formula. Development oost 1780 The New Vitralite Enamel and Undercoating - All Items sow level considerably bettar and have better working than any prior formula. The New Vitralite Enamel Gloss has much improved gloss retention. Underooatlng Is now free of plnholing when applied on new wood. Total development work to date has oost #3553. 0007-PTL-000893 5 Machine fool Bnamel - Returned to prewar quality. Laboratory work ooat 196. Maria# Bottom Palat Bard Raoiag Oraaa aad Rad - Ratoraad to prewar quality. Laboratory work eoat #76. Karina Daok Palat - Ratoraad to prawar quality. Laboratory work ooat #97. Zmparmalla Spar Taraiab - Ratoraad to prawar quality. "38" Preservative Taraiab - Ratoraad to prawar quality. Two Taraiab projects atartad la 1947 bar# not yat baan o ample tad. Oaa ooaearaa tba improvement of floor Taraiab aad tba otbar tba improvement of apar Taraiab. Devoe'a Sopor Marble Floor Taraiab, which la aald to ba made from a new type of apathetic realm that baa beea exploited by Jones-Dabney. la more wa&r-raaistant tbaa "61" Floor Taraiab although It la laaa atabla in tba package. Tba reala la adTertlaed aa being tba reaction product of epiehlorhydrin and blapbenol. Raalna of tbla type have baan patented by Realnoua Products k Chemloal Go. but are not being produced by that company. Tba Realnoua Produota k Chemical Co. baa agreed to work with ua on tba reela and of tba problem. An improTed apar Taraiab will ba aalaotad from a large aeriea of experimental apar Tarnlahea that are now being exposed In Florida. #494 baa ao far baan apent on these two projects. Considerable work was dona in 1947 in an effort to Improve tba odor of Lyt-all Double Duty Primer, but tba present formula proved to ba batter balanced than any mild odor formula that was tasted. This work represented an investment of #891. Zn 1946. work wee started on the development of lower coat oil colors (achieved by reducing the oil content) and was.completed In 1947. A total of #1612 was apent on this projeet but it will result in annual savings of #4500, baaed on 1946 production of oil colors. The standard oolora that constitute our Titrallte Transportation Finish line were established In 1947 but moat of our production baa consisted of special colors. All told, 201 requests for speolal produota or special colors were received from our fleet and railway customers in 1947* These apedale were developed at a total ooat of #5878. They represent 70% of all projects referred to the laboratory by our trade sales offloss. An additional #979 was apent on researoh work connected with fleet and railway finishes. Moat of this work pertained to improvements in putties, surfsoars, and the other underooatlnga that fora part of the Titrallte Transpor tation Finish line, but it also included the development of a new line of striping enamels and a line of baking finishes (for use with infrared lamps). a faster air drying line of Titrallte Transpor tation Finishes is now under development. A new knot sealer, Sealer WP-578. was perfeocted in 1947 and baa been added to our line as an unlisted product. 0007-PTL-000894 A great deal of work has boon done and la atill being done on solid color flat wall paint (Lyt-all Speotrum Colors). In 1947, 11020 was spent but we still have no produet that is reasonably foolproof* IKDP3TRIAL SALES PETgLOPMgNTS Since World War II began, the nature of the laboratory* a work for the Industrial Sales Departwent has undergone a ohange. Tor the tea or fifteen years prior to the war, a major part of all laboratory effort was directed toward sample matching. Today, sample matching is a rarity; much of our work is now concerned with the development of new finishes without regard for competing standards* It costs more and it takes longer to do original work than it does to imitate competing paints, but the customer gets a better product and the laboratory, as well as the company, is strengthened by the acquisition of fundamental knowledge. This changed polloy has evolved without deliberation on 001000*0 part. It is probably due to a variety of conditions. Business is plentiful, and we have the 'inside trade** in many accounts; also, many of our old time salesmen are gradually being replaced with new men, who are not sample-minded. Of all laboratory work done for the Industrial Sales Department in 1947, 8356 was represented by the principal fields listed on the next page. Certain statistical details concerning this work are also shown. The sale of wrinkle finishes has grown steadily over the past ten years. In 1938, we had virtually no wrinkle business; in 1939, we sold 9200 gallons; in 1943, our peak wartime year, we sold 70,000 gallons; in 1947, sales reaohed an all time high of 91,830 gallons (10 above 1946). This phenomenal growth has been due in no small part to the continuous research and development work that has been oarrled on under isr Hoffman *s supervision. Last year, #2745 was spent on 141 sales problems involving wrinkle finishes. Another #479 was spent on research. Our 1947 wrinkle finishes were characterized by better hardness and greater positiveness than prior formulas. This fact was largely responsible for obtaining the Hawley Products Co* account, to whom we sold 10,000 gallons of a black wrinkle, 0X068, during the last three months of 1947* The Royal Typewriter Co., our largest wrinkle aeoount, bought 23,000 gallons of another black, 0X011, in 1947* We also produced 11,000 gallons of 027920, a general purpose wrinkle black; In 1947. Early in 1947, wrinkle finishes were advanced in prioe and imme diately thereafter the trade became intensely interested la spatter or hammered metal finishea* This reaction to the prioe advance subsided shortly and our customers continued to buy wrinkle finishes* In the meantime, however, we had been forced to develop some 48 spatter enamels for May of these acoounts at a cost of 8866. Only two accounts bought any real volume of spatter finishes in 1947--Colonial Radio, to whom we sold 730 gallons of a brown spatter, (ZX2136, and General Motors of Canada, to whom we sold 1060 0007-PTL-000895 -7- K 4* m oh S* 3T* SI I N n* 4 8 SS 3 8** >No mCX CM -toco 0 M0M 4UNHN MCOM MXtOOvMX CO #40* M> rM4X S|S Sux rj 852 LABORATORY WORK ON INDUSTRIAL PROJECTS KMh BrO< HB904 )Hrt V8- u"rO&n Ah(4 fArit 8 *O 8<a < *A8OHCj 9H O CtMJ mi 5 i ^ MnSKSgS^fjSS`HSO) S3* < At 5 < t S Ho 1&S3 0007-PTL-000896 gallons of a tan spatter, 0X2136. Considerable work wa dona for Ditto* Ino., for whom a speoial gunmetal spatter, 0X7208. was developed. This produet does not dlaoolor whan azpoaad to the duplicating d/a used in tha Ditto prooaaa. Za tha fabric coating field, #3120 was spent on 79 different projects. Most of the laboratory effort was aoaoeraed with two aooouats--Haertz-Maaon, Inc. and Buffalo Weaving and Belting Co. Laboratory work for Haartz-llason oost #1476; sales amounted to produces grease resistant canvas conveyor belts for the food and baking industry. Duro Close Bobber Co., another customer in this same general field, revived Interest in a number of prewar lacquers for use in the production of children's rainwear. The coated fabrics field offers greater risks than many types of industrial business because a few cents' worth of laoquer converts cotton doth and rubber compound into many square yards of expensive fabrlo. The fabric In turn is frequently used on relatively costly finished products. If anything goes wrong--and that seems to be the rule in this business--the paint manufacturer finds himself in hot water. Our 1947 sales to the collapsible tube industry proved to be dis appointing. On a gallonage basis, U. S. salsa dropped 27% (from 26,000 gallons in 1946 to 19.000 gallons in 1947), but on a dollar basis, they dropped only 4% (from #78,240 In 1946 to #75008 in 1947). In Canada, sales increased from 1300 0. 3. gallons to 2000 U. S. gallons during tha asms period. Thera la probably no other phase of industrial work that has commanded more time and affort than tha davalopmant of collapsible tuba coatings. Whether wa are aotually weak in our teohaloal or ealea approaoh, whether we reoeived poor "breaks'*, or whether tha present situation representa a low ebb in sales that will be followed by an upsurge In business la difficult to determine. If the survey made on tube coatings by Battalia Memorial Institute In 1946 la any criterion, we ranked exceptionally well from a technical viewpoint. Our technical men made twelve service calls on tuba aooouats in 1947. Wa spent #2036 in laboratory work on 78 aalea problems connected with tuba coatings in 1947 and another #6578 on research work. A total of #12,651 has bean spent on tube coating work during tha past two years. Aotually, more laboratory affort was spent on tube coating work per sales dollar than in almost any other field. Of our sight U. S. tube accounts, one--Wheeling Stamping Co.--bought three fourths of all tha ooatings sold to thie industry in 1947; this one aooount bought slightly more than it did in 1946. Our next largest aooount--A. H. Wire--bought only two thirds what it did in 1946. Our third largest aooount in 1946--Hew England Collapsible Tube Co.--bought virtually nothing in 1947. One new aooount--Atlas Collapsible Tube Co.--bought #578 worth of coatings in 1947. Tube manufacturers tell us that tha demand for ooilapaibla tubas has dropped way below the 1946 demand. 0007-PTL-000897 9 Bad luck pia/ad a part at the A. H. Wlra aocount. We developed an outstanding one ooat product, 0X634, for Brail (a cream shampoo put out by Proctor it Oambla) tubes, ool/ to laarn that tha tubas vara to ba fillad hot. Our ooatlag cracked under thasa conditions whan tha filled tuba was crimped. A new coating has since bean formulated for hot-filling but has not /at bean tasted in production. Another coating to moat Colgate requirements Is likewise awaiting a production test. At New England Collapsible Tuba Co., ona of our products, 0X19$, Is approved but our price is too high and Pittsburgh Plata class Co. is enjoying that business. Tha Atlas Collapsible Tuba Co. is using 028661,on Dr. West's Toothpaste tubas. Tha Sun Tuba Corp. (of Canada) is finishing Xpana tubas with 0X630. Ths national Collapsible Tuba Co. formarl/ bought our coatings for use on Williams Sharing Cream tubas but the business has bean lost because Williams products are now put up in aluminum tubas, which cannot now ba produead by tha national Collapsible Tuba Co. #1780 was spent on laboratory work for slide fastener (zipper) aooountc. Most of the work was for Talon, Ino., whose 1947 purchases amounted to $35*097, hut sales of $6360 were also made to Conner. Two other fastener accounts, Segalook and 0. E. Prentice, purchased small quantities. The big problem in making fasteners la to hare tha painted parts match the dyed tapes to which the fastener is attached. After much controversy, it was finally established that our finishes for Talon, Ino. wars held within closer color limits than were the dyed tepee. A secondary problem oonneoted with faetener finishes is ths perpetual demand for new colors. Each season brings forth new colors for women's wear and fasteners have to be produead In these fashionable high style oolors. In 1947, we developed 60 new oolors for Talon, Ine. and eaoh had to ba produced in tiro forms--a fast bake enamel for certain parts and a so-oalled universal enamel of greater flexibility for other parts. All Talon, Ino. enamels were produead with improved impact resistanoe during 1947. It is claimed that 95S& of all furniture manufactured in the U. S. la of wood construction, but our company has nsvar been an important faotor in tha wood furniture field. The larger manufacturers ere looated in the couth where we have no factory and where we cannot adequately service such aocounta. Beyond this, the market has always basn keyed to low prloes. In view of this situation, it is not surprising that our furniture aoeounts are not run-of-mine manufacturere. Our largest furniture aooount--Western Eleotrio Co. --makes phone booths, on whloh 22,673 gallons of our varnishes wars applied in 1947* Storkline, another large aoeount, bought 17,274 gallons of varnish for finishing nursery furniture. Sikes Chair purchased 4000 gallons of varnish and would have bought more had alkyd resin been more plentiful. In 1947, the laboratory developed an almost indestructible furniture varnish based upon a new type of phenollo realn. Tha varnish required the addition of an aooelerator or catalyst just before use and it had to be eured at 1407. These faetora discouraged real 0007-PTL-000898 10- lnterest in the development, even though the finish was harder, tougher, more mar-resistant, and more alcohol-reslatent than any currently available finish. A similar varnish was used in Germany ten years ago, at whloh time we were offered a license. #536 was spent on wood furniture problems in 1947; more than twioe that amount (#1214) was spent on metal furniture problems. We have three active aooounts in this field--Masell, Bridge Betel Products and Cole Products. A non-streaking, dipping, olive green enamel was our major contribution in 1947. A total of 6,500 gallons were sold to l&asell. The metal decorating industry presents a somewhat similar technical and sales picture to that offered by the collapsible tube Industry. Sales during 1947 amounted to #214.852, half of which represented the business of one customer--American Can Co. U. S. sales dropped 22$ in volume (from 87,000 gallons in 1946 to 68,000 gallons in 1947) but Canadian sales increased 275* (from 31.000 U. S. gallons in 1946 to 39.400 U. S. gallons in 1947} The drop-off la D. S. sales was due in part to shortages of titanium dioxide. This pigment constitutes 405* of the weight of an average metal deoorating enamel. Work on metal decorating sales problems cost #1458 in 1947. An additional #502 was spent on research work. Two major metal decorating developments were made in 1947--a really adherent ooatlng for eleotrolytio tin plate and a "non-scorching" finishing varnish that withstands the heat generated by seam soldering without discoloration. We sold 3300 gallons of M5464, the coating for eleotrolytio tin plate, in 1947; the latter development is just being production tested, a new crown (bottle oap) varnish, 1&5491, was also developed in 1947. This varnish is free from craning at the edges of the orown skirt. Craning has always been a periodic problem in crown finishing. 700 gallons of 145491 have been sold since November when the new product was put into production. A new white ooatlng, 0X117, for use ,on home canning disos was favorably received by Casper's Tin Plate. If further tests substantiate preliminary results, this Item should run into substantial volume. After years of trying, we have finally developed a golf ball enamel, 029265, which is of real interest to the Dunlop Co. This enamel is a plasticised version of The New Vltralite Enamel White Olosa. The Dunlop Co. coated several hundred balls with 029265 early in 1947 and the balls were then used by pros in this area during the summer and fall. The balls were examined after play and found to be in excellent condition. Twenty gallons of the enamel were ordered reoently for a full production run. All balls from this run will be shipped to Atlanta for sale and distribution In that area. If the enamel passes this full scale try-out. It will be used on all olf balls made by Dunlop. The development of 029265 was handled y our Architectural Snamel Laboratory rather than by our Industrial Enamel Laboratory because of the product's relationship to The New Vltralite Enamel. 0007-PTL-000899 11 Laboratory work on aircraft finishes took a spurt in 1947* #960 went into 33 sales problems and another $406 was spent in completing Navy Department inspection Foma* Only #361 was spent on these oombined activities in 1946. Over $000 gallons of one blue lacquer, 47-612* was sold in 1947 for use on military aircraft that is being built by Chance Fought and Orumman Aircraft* Activity in military aircraft finishes is apparently keyed to an accelerated rearmament program. In the paper coating field, most of the #677 spent on laboratory work was for the benefit of ? N. Burt Co., paper box manufacturers. This company is experimenting with a continuous process for coating and "plating" paper. Plating makes leoquer-coated paper look as though it were covered with oellophane. Plating has always been a tedious batch process in which individual sheets of coated paper are placed between polished niokel plates and are then subjected to high pressure and temperature. After collaborating with F. N. Burt Co. engineers, a coating, 4054* was developed which has the Instantaneous release from hot polishing plates that is neoessary for continuous machine operation. The machine, itself, remains to be built. Our other large paper coatings customer is the Birge Co., wallpaper manufacturers. For years, we have sold this company a flock adhesive for producing wallpaper that looks like velvet or plush. With increased demand for flocked papers, a faster adhesive was needed so that production could be maintained. A new adhesive, 0X194, has allowed the Birge Co. to double production without increased equipment. Laboratory work on casket finishes cost #665 in 1947 and was more than triple the value of work done in that field a year ago. While National Casket Co. is our biggest customer, considerable work was also done for the Norquist Co. That company is producing military burial boxes for bringing back the bodies of veterans from Asia and Europe. These boxes are given a two coat brown enamel finish, the first coat of which contains fungicide. Our system has just been approved and has thus far resulted in orders for 1500 gallons. Our work on adhesives for use in the manufacture of abrasive papers remained at about the same level that it did in 1946. Our principal customer, the Carborundum Co., purchased 42,000 gallons of adhesive in 1947 (representing sales of #165,431) as compared with 50,000 tallons in 1946. About 70% of our 1947 volume was shipped during he first half of the year when the Carborundum Co. enjoyed an advantage in produot quality over their competitors. However, both Behr-Manning and Minnesota Mining and Manufacturing Co. brought out improved papers (less softening when water soaked) in the latter half of the year with a resultant shrinkage in the Carborundum Co. business and in our business with them. This situation has been corrected through the adoption of a new treatment varnish. 0007-PTL-000900 12- these adhesives has two to throe times the sanding efficiency of current production. Unfortunately, these developments have been paralleled by similar developments by American Cyanamld Co. That company has "use" patents which cover the compositions that now interest the Carborundum Co. We believe that the Carborundum Co. has signed a licensing agreement with American Cyanamld to cover the situation. Sleekote is the trade-name of a rather interesting industrial item whloh runs into substantial volume and which promises to run into even greater volume. Sleekote (GXQ54) is a graphite composition Sold to Spring Perch Co., a Bethlehem steel Co. subsidiary, for use on automobile springs* It protects as well as lubricates. 8400 gallons of Sleekote were sold from August until the end of the year. It is estimated that 116,000 gallons will be needed during 1948, when Ford Kotor Co. starts to use the product. A total of 27,000 gallons of miscellaneous baking whites were sold in 1947, as compared with 44,000 gallons in 1946. This shrinkage was probably oaused in part by titanium dioxide and phthalie anhydride shortages. A new low cost white, 1362, was developed and a new alkali resistant white, 1378, were developed during the year. $808 was spent on research connected with white baking enamels. A considerable volume of baking black is also sold each year. In 1947, this totaled 27,500 gallons. Interest in luminous paint oropped up from an unexpected source in 1947. The Winchester Co. is toying with the idea of marketing a flashlight case coated with luminous paint so that it can be readily seen in the dark. Samples were submitted and tests have been successfully completed. However, there has been no move to start production. 25 gallons of one of these paints, 927, was recently sold to another firm, for ooating religious statuary., In the early days of lacquer, only a handful of active solvents were available in commercial quantities. Today, several solvents are available in almost any desired boiling range. For example, ethyl acetate, k (methyl ethyl ketone), and Synest (a proprietary ester type of solvent) are fast solvents which can be used more or less interchangeably. This provides considerable purchasing latitude and an opportunity to save money by juggling formulas. Approximately $2500 were saved in 1947 by making solvent changes in laoquer thlnners, only. LABORATORY FACILITIES AND EQUIPMENT Last year, two new control laboratories were completed, equipped, and put into service--one at our Fort Erie Factory and the other at our Lacquer Plant. Heretofore, all Fort Erie production has been tested at Buffalo. This has meant the transfer of 2000 to 3000 batch samples across the border each year, as well as the 0007-PTL-000901  13 tie-up of manufacturing equipment while samples haws laid around waiting for the twice-daily messenger service. The new laboratory was staffed with one technical employee who was trained a year in our Buffalo laboratory before assuming his duties at Fort Brie. The Fort Brie laboratory has enabled the plant to cut batoh processing time in many instances from a week to two days. This improvement in service has been especially helpful to our industrial customers. The new Lacquer Plant Control Laboratory is one of our finest laboratories. Zt is conveniently laid out on the second floor level near the center of manufacturing operations, yet it is completely Isolated from the faotory by a fire wall. These factors make the new laboratory a safer work area than the old fourth floor laboratory in the midst of solvent storage tanks. A great saving in efficiency has also resulted from consolidating all lacquer plant testing in one place. In the old setup, activities spread over two floors and were conducted in two widely separated buildings. During certain periods in the past year, some factory operations were run seven days per week; others were run six days per week. It was difficult to maintain 48 to 56 hour laboratory service to parallel this Irregular faotory aohedule with only a handful of control employees geared to a 40 hour week. The following new equipment was acquired during the year: Deep Freeze Cabinet - for cold ohecking tests on furniture finishes du Noujr Interfacial Tensiometer - for studying wetting and grinding problems Two High Speed Compressed Air Mixers - for nonhazardous mixing of viscous inflammable mixturesf Year 1947 1946 1945 1941 1937 COMPLAINTS Complaint Record - Buffalo Factory Total Complaints Received Per Cent Justified 141 3d 82 43 87 37 175 27 276 26 * Number of eomplalnts per million gallons manufactured goods Complaint Index* 52 31 35 66 147 0007-PTL-000902 -u- Iq 1947, complaints received on products made at our Buffalo factory increased 72$ over the previous year. Part of the increase probably resulted from the laboratory's insistence on having a letter of coverage on all complaints. Many local office eomplelats were previously handled on an Informal and unrecorded basis. An example is provided by the record of Industrial Sales Division complaints 1947 complaints in this department mere more than double the number received in 1946. The per cent of justified oomplaints has shown a decided deollme from last year's all time high. This would seem to indicate that we are finally getting away from instable wartime vehicles. The'four principal reasons for complaint in previous years --viscosity change( speoklness, slow drying, and color--accounted for half of our 1947 oomplaints. However, a previously minor reason for oomplalnt--gloss--became the second most prevalent oomplalnt In 1947t top honors went to viscosity change. Complaints on produots made by our Fort Erie factory and by our subsidiary plants decreased from 24 in 1946 to 20 in 1947. Exactly half were justified in 1947 (58 were justified in 1946). Every effort is made to minimize the causes for oomplalnt. Complaints are periodically reviewed at meetings attended by key laboratory and factory personnel. New tests are devised when complaints arise from improper control procedures. Constant study is made of the destructive forces which affect paint in the liquid state as well as in film form. The manner in which the sales offices disposed* of recorded complaints is summarized below: Disposal of Complaints Sales Division No. Complaints Refsrrsd to lab. and 8ubsidiarlss No. Complaint Records Put Through by Sales Division Cash Settlements (See *) Eastern Western Central Canadian Industrial Total 17 36 45 4 JtZ 161 16 None 26 #539.35 IS # 32.00 0/ Not known J> Not known 60 #571.35 * Based on information in Complaint Records, 35w of all oomplaints required no settlement of any kind; 54 required the return or replacement of material; only 7# (4 complaints) required cash settlements. 0007-PTL-000903 i -15 PSBSOHKEL Labor turnover decreased materially in 1947, shown below: 1947 1946 1940 Resigned Transferred to other departments or to sttbsidiarise Discharged Enlisted Total separations 13 17 11 14 11 16 23 2 4 2 6 Average number employees Separation rate The separation rate in 1947 was less than it has been at any time during the past seven years--excepting 1943, when employees were more or less frozen in their jobs. Our turnover is high for a technical organization. It should not exceed 10%. Future turn over can probably be reduoed by more oareful selection of new employees, but conditions during recent years have offered soant opportunity for selecting employees. The primary reason why employees resign is to obtain better wages elsewhere (but not necessarily in technical work). 40% of our turnover ooourred in the month of August. Many resig nations seemed to follow the vaoation period, when some employees apparently utilized their time to shop around for other jobs. A third of our technical employees continues to be made up of young women. f In general, the laboratory organization is working smoothly and efficiently. Employees are individually Interested in the company's problems and are responsive to the slightest suggestions. LABORATORY EXPEBSE The cost of operating the laboratory in 1947 reached the all time high of $185,557* The cost of laboratory operations has not, however, increased to the same extent that the buying power of the dollar has decreased. Statisticians tell us that the 1941 dollar was worth only 63 eenta in 1947. This ratio would establish our 1947 laboratory operating expense at $196,000--if 1941 expenses were used as a base figure and if the number of employees remained constant, we actually had one more laboratory employee in 1947 than we did in 1941. 0007-PTL-000904 16- The money spent on laboratory work In 1947 (and 1946} went into tbs following ohannelss 1947 1946 Besearob Special Sales Problems (Laboratory Requisitions) Manufacturing Services Total Expense W.500 I 37*500 58,900 52,000 81 n 100 ___??q*P0 # 185*500 6 162,900 Our i iIm divisions contributed 642*856 toward the oot of oper ating the laboratory in 1947* Tbit amount was roughly 400 of the ooat of all activities other than those classified as manufacturing services. The ooat of tbs laboratory la toms of production sad salsa la lodloatsd below: Coat of Laboratory Operations Research and Formulating (1) Cost In Cents 1947 1946 Manufacturing Servloes (2) Coat In Cants M 1946 Cost per Gallon of Prodaot Mads at Buffalo Coat per Gallon of Product Mads at Buffalo and Fort Brie 3.2 2.7 3,2 2.7 Coat per Salsa Dollar of Produets Mads at Buffalo 1.1 Cost per Salsa Dollar of Products Mads at Buffalo and Fort Brie 1.2 1.4 1.2 (1) Zncludsa paint formulating for Fort Brie faotory but excludes paint formulating for subsidiary manufacturing companies. (2) Vltb tbs establishment of a control laboratory at our Fort Xrls faotory on Funs 1, 1947* It Is difficult to figure tbs oost of manufacturing asrrlosa In tbs same way that ws did In 1946. Tbs Buffalo laboratory still tests raw materials for tbs Fort Brie plant. It still examines complaints on Fort Brie goods and It still renders certain other 0007-PTL-000905 17servioes for the Fort Erie factor/, bat 95% of all Fort Erie manufacturing control since July has been done in Canada. Because of this involved pietore, the cost of 1947 manufacturing servioes is based on the work done by the Buffalo laboratory on Buffalomade produots. f 0007-PTL-000906 -18- SBMMART OF LABORATORY WORK Maw products developed Salas problems submittad to laboratory Salas problems raportad Has rssaaroh problems assigned Research problems completed Raw raw materials Investigated Raw material shipments tasted Batches tasted by Buffalo Control Laboratories Batches tasted by Fort Erie Control Laboratory* Service calls made by technical employees Technical Department Bulletins Issued Faint Manufacturing Bulletins Issued mi 1595 1855 1915 75 73 353 2432 17*132 * 867 129 104 80 f 1946 1658 1850 1852 86 81 327 2330 17,251 Hone 143 41 59 * fort Erie Control Laboratory was established June 1, 1947; figure covers 7 months* oparationa only. 0007-PTL-000907 fabraary 3, 1948