Document X7JvLwGDqkwRyJB8ZEZV29n1J

n ** /*< minutes EITCU'I IVL COMMITTEE MEET IN'G NA ;al paint, varnish and lacculr a SHOCIA EDGE7AT2R TEACH HOTEL CHICAGO, ILLINOIS January 9, 1935 A regular meeting of the Executive Coanittee of the National Paint, Varnish and Laccuer Association, Inc., convened at ten A.M., T'ednesday, January 9, 1935, in the Edgevater Dench Hotel, Chicago, Illinois, -.vith Mr. E. S. Phillips presiding, and v.ith the folic i.ng in attendance: ?!. F. Der-nett F. M. Carter W. C. D.bnoy 0. J. S. do Prun S. C. Dunning D. W. Figgis M. L. Havev V.'olls Martin S. R. i-atlack K. A. M^lum (representing L. P. Moore) Joseph D. Patton E. S. Phillips R. A. Plumb H. If. Dice "Im. Ri ol'.t-jr C J i ioh F. L. Dulrlevgsr Ernest T. Trigg Association Staff H. A. Gardner Rot-ort K. Shannon Laurence Kiefer M. Q. .Macdonald C. H. Flynn R. W. Elton Absent J. B. Lord L. P. Moore H. E. Aetster J. H^ath Wood CALL TO ODDER v/ The meeting was called to order by the Chiirmnn, Mr. . S. Phillips, who stated that this w?;3 the organisation meeting of the now Executive Committee t nd referred to the fact tivit the Constitution provides t-iat ''the officers of the Executive Committee uhnll consist of a Ch: irurn rnd r. Vicc-Ghr imun who shall N C A Q 02672 N 3909 A / be elected annually at the orgsnir.atim its n-:rter ship". ig of ths Executive Co. _~ibte: SLSCTICS OF CHAIRMAN Mr. Sulzberger pieced the name of .Mr. E. S. Phillips ir. r.o-ir.rtion for election as Chairman of the Executive Committee and the r.orinati'.r. v;:-s socar. l:-d by Mr. Patton. Mr. Sulzberger as Vice-Chairman asked for additional nc-ir.nt i. r.s and hearing none asked for a vote on the nomination of Mr. Phillips; the election V S r.aniEous, FLECTION OF VICE-CHAIRMAN Mr. Dabney placed the name of Mr. Frank L. Sulzberger in nomination for election as Vice-CJairman of the Executive Committee, the nomination being seconded by Mr. Richter. The Chairman called for additional nominations and hearing none asked for a vote on the nomination of Mr. Sulzberger as Vice-Chair man} the election was unanimous. PATTON MEMORIAL At the request of the C'utirmr.n the Secretary read the following memorial to Mr. Ludington Patton, prepared by c special committee appointed : t the last meeting of the Executive Committee consisting of H. W. Rice, Ernest T. Trigg, L. P. Moore, Chairman: "The Executive Committee of the National Paint, Varnish and Lacquer Association, Inc., having . been apprised of the death, on October TO, 1934 of their old friend and associate, LUTIHGTON PATTON hereby record their profound sense of loss: NCA 0 02672 :2 - *2 / "RESOLVED that in the death of Luiir.gton Patton, rot only the industry but the : r.i.lvi-'usl members thereof have suffered an irropc rable loss. Poring a third of a century Mr. Patton has Leon an ex emplar cf unselfish service in its be he if, unspar: r.g of his tine, interest and advice. "As cne of the instigators of the Educational Eiireau and as its Chairman Curing its formative stages, his contribution to both tha practical and moral progress of the industry has iron invaluable; while as Chtirnan of its "r.fair Com petition Bureau, d'lrir.g .more recent years, hi3 influence in the elimination of practices inimical to the morale and repute of the industry, in no smell mo-sure contributed towards its present en viable repute. "As a follow worker, wo s'rr.il .v'es hir. wise counsel; as r. constructive advisor, wo shall miss has sound advice; and as a personal friend, wj simll long mourn Ids absence from our meetings." The resolution is followed by the signatures of all members of -.ho Executive Committee, and is to bo sent to Mr. Patton's family. MINUTER OF LAST MEETING It was regularly moved and seconded tlv t in view of the fact the minutes of the previous meeting had Veen mailed to all members of the Executive Committee, the reading of the minutes bo dispensed with. Motion carried. REPORT OF BUDGE? AND FINANCE COMilTTF.E " Mr. Charles J. Roh, Chairman of the Budget end Finir.ce Committee, ad vised that the Co:.unitteo had held two meetings in connection with the pro pa rut ion of a budget for 1935 end submitted for approval the following summary of the proposed budget: I Administration Building frli.intenar.ee Clean Up and Print Up ? 90,000.00 (Includes 5000 P.csnve) 5,609.00 16,000.00 - 3 N C A 0 02674 / Housing Administerstion National Industrial Sales Eiv. National Trade Sales Div. Save the S-irfacs Scientific Section Traffic Bureau Unfair Competition S-.ireau Depreciation "Code Authority 7,500.00 7,500.00 7.500.00 7.800.00 40,535.00 3.500.00 10,000.00 5.500.00 $203,449.00 17,450.00 $220,899.00 -This figure only includes items for which separate accounts are set up - other charges against the Code Authority, such as salaries, rent, heat, light, etc., are included in the regular account of the National Paint, Varnish and Lacquer Association. Mr. P.oh called particular attention to the fact that two items in the proposed budget, namely, $5,000.00 reserve and $5,500 depreciation could be deducted from the total figures in arriving at an amount of income necessary to raise in 1935 to hairnee the proposed budget for 1935. Mr. P.oh stated that the prospective income for 1935 based on present commitments is as-follows: Dues Indicated increase in dues (10?) Interest on Securities Code Assessment (Collected) Subscription to Scientific Section Bulletin Profit on Miscellaneous Sales Special Subscription (167,885.00 16.788.00 4,142.50 10.735.00 1,250.00 2.700.00 3.750.00 $207,250.50 Mr. Roh offered to answer any questions with regard to the details of the various schedules making up the proposed budget. At the request of the Chairman, President Trigg explained that tho Association had taken on additional activities which he believed were entirely NCA 0 02675 -4- /*' / US-if led on the theory that the National Paint, Ycrr.ish and Is ;,uc-r Associ s a servise organisation, not a savings organisation. President Trigf e.ur.'Si .V; hat there will be 'suffisient new income during 1935 Ao -ore t'vo the difference between the procosed budget and the ores sect ive i r.;; :: statement, which makes no allowance for new incone. President Trigg reported that the Executive Committee at "its last meeting had referred to the Budget and Finance Committee, with authority to act the selection of a member of the staff to represent the National Paint, Varnish and lacquer Association on the staff of the Federal Housing Administration; he stated that Mr. Theodore E. Daam had been selected for this position, and that while this expense item might not continue throughout the entire year, the Com mittee had included salary end expenses for the entire year in submitting the proposed budget. President Trigg advised that an item of $7,500.00 hod bcc-n included in the budget for the expenses of the Industrial Sales Division, an item which has not appeared in the budget before this year, and he introduced Mr. C. Homer Flynn, who has been added to the Association staff to devote his entire time to the affairs of the Industrial Sales Division. President Trigg stated that the National Industrial Pales Committee through its Sub-Committee on Distribution Methods is seriously considering a survey of distribution methods to bo conducted through the Department of Commar and which may cost cpproxlartely $7,500.00; this item appears in the proposed budget for the expense of the Nationel Trade Sales Division. President Trigg stated that the $17,000.00 included in the budget for Code expense only includes items for which separate accounts ere sot up other charges against the Code Authority such as salaries, rant, heat, light, e NCA 0 02676 are included in the regular account and budget of the National Point, Varnish and Lacquer Association. He stated that a program of constructive work had been prepared for the Associotion which should be of real benefit to the industry as a whole, md that in his opinion both the estimate of expense end the estimate of possible income are conservative. Chairman Phillips stated thet in his opinion the budget was vary cor.- sc-rvaiive. He advised that the Print Industry Recovery Board had recommended a continuance for three months of the publication of "raw material replacement cost schedules" on the present basis (costing about e900.00 a month) end had suggested that at the end of that time consideration be given to c revision of the method of distributing this information. Mr. Richter stated that in the light of present conditions he con sidered the proposed budget for 1935 ns ultra-conservative; he estimated the improvement in business for 1935 would be about twenty per cent increase over 1934. Mr. Richter suggested that the item of depreciation on furniture and fixture carried in the assets schedule of the report of the Treasurer might be increased when conditions warrant, and thet the item covering the portrait of Norris B. Gregg carried in the seme schedule might be written down to c minimum figure. In answer to a question from Hr. Havey, President Trigg explained that the proposed budget for the Save the Surface Campaign is sufficient to carry the present program and advised that if income indicates the advisability of an expansion of -this program an increase can be made during the year. In answer to a question from Hr. Richter, President Trigg reed the / following communication indicating the scope of the work of the Save the Surfaca Campaign: NCA 0 0267? -6- / 'An Explanation of the it-: - .-."hi P'.r:_lll' iY Weekly mi moographed releases to nearly 1,000 r.e-.vspspers; stories from hew York on the latest trends in decoration: stories from Vsshir.gion urging p:: cc-rtjf modern!ration and point protection. - a group of short pcr~graphs on the products of the Industry ^r.d their c: u-'-re. ;re ect Usually r-:-fc"rad to as the Teal Estate Fclzuscs arc ? l iras?:.d to the ?.-sl Estate Editors of r..'v:;cr-o-:rs . newspapers in mat form. (ly to hr wsrapors TTcekly releases to 132 radio stations - telling how paint protects and beautifies homes and urging listeners to take advantage of the Better Housing Program if they can't finance work themselves. RADIO Special stories for national homo mr.gr?infc-s end trade publications. (Potwc^n 50 and 60 wore placed and printed last year) MAGAZINES Farm Releases to rural publications - regional and national (75 of them) FARM PAPERS Industry Promotion - lotting the paint industry know what Save the Surface is doing to sell paint products. Publicity to INDUSTRY Reference material - magazines, books, newspapers, newspaper clippings - from which useful material can be gleaned." In answer to a suggestion from ?vlr. Richter that the Save the Surface Campaign might indulge in some trick publicity stunts President Trigg referred tc c full-page article which appeared in c recent issue cf the Ladies' Home Jourral, at no expense to the Association, entitled "Let's do Tricks with Paint" (see copy attached); It was moved by Mr. Richter, seconded by Mr. Dabney that the report / of the Budget and Finance Committee be received and that tlie budget as submitted for 1925 be approved. Motion carried -7- NCA 0 02678 / REPORT Or TR.FMRURER Treasurer Charles J. Roh presented a statement of ir.ccms and for the three norths October 1st to December 31, 193/, and a balance s'-ret assets, liabilities and surplus as of Roc-ember 31, 1934. (Copy :.t v..ch.-d.) Roh stated that it might be advisable to consider the question of rrvioing the amount shewn in the assets schedule for furniture and fixtaxer, library and portrait of Norris E. Gregg. It v;-:.s moved by Mr. Richter, sc-con led by Mr. *.!'. +1 that the question of proper carrying charges for the items of furniture :na fix tures, library fnd Norris B. Gregg portrrit in the assets schedule of the Associ tion be referred to a spocirl committee to consist of President- Ernest T. Trigg, Chairman of the Executive Committee, K. S. Phillips end the Chairmen of the Budget end Fin'nco Committee, Charles J. Roh. Motion carried. The treasurer suggested that the spv.cisl committee referred to : rove might also take under consideration tho items of inventories, in the esa-.-ts schedule, and investig: to the vrluo of marketable securities. Treasurer Poh st-ted that the cash position of the Association is ver good and referred briefly to each expense schedule shown in the report. In answer to a question from Mr. Phillips as to whether or not any of the accounts receivable should be charged off Mr. Foh stated that he would prefer not to pass on that question at this tine advising that it has boon the policy in the past to charge off accounts receivable whenever thorough study of the case indicated the desirability of such action. In-answer to a question fron Mr. Rice reg-rding the appraised vrlues of land and buildings Mr. Roh explained that an eppraisrl lied been made- of the l property which v.as somewhat under the book item, but t'x-t since tho t opr? is cl there has been a.n increase in values and r resultant incr- Sw in irru-rnce. NCA 0 02679 -8- /* / Following a discussion regarding the proper method for showing in the accounts of the Association the account receivable from the Paint Industry recovery Board, it was moved by Mr. Figgis, seconded by Mr. Sulzberger that the special co.-.T.ittee consisting of President Trigg, E. S. Phillips and C. J. For. b-,, requested to consider the question and r.ahe such revisions in the statements : s may be necessary. Motion carried. On motion duly made and seconded the report of the Treasurer was received. REPORT OF SCIENTIFIC SECTION Dr. Gardner brougiit to the attention of the Executive Committee a leaflet which v;as being distributed by the Californio Redwood Association. He suggested that similar leaflets were beipg distributed by the ??est Coast Lumber Manufacturers' Association end the Red Cedar Association. This leaflet featured white lead. Dr. Gardner spoke of the work which he hod been doing to combat this situation, and referred to his visit with Dr. Compton of the National Lumber Manufacturers' Association, who admitted that the lumber association had made a blunder in backing a campaign which recommended only one type of paint. He stated that he was to have e conference on this subject with Mr. G. W. Dulrny, Jr., Chairman of the Executive Committee of the Notional Lumber Mr.nufr cturers' Associr tion in Chicago. Mr. Carter explained that this campaign had been initiated by a Mr. Critchfield, a former lumberman who endeavored to interest the National Lead Company in the development of a "good paint campaign". Mr. Critchfield was referred to the Lead Industry's Association, an Association controlled by miner-c.nd producers of lead, -who approved of his idea, and gave financial support to / -9- NC A 0 02680 the c.~r. j'rn. Mr. Carter stated th ivntn he '.---.-.-a,' J-V;*,iy \\ -31 c l.rk'lnj; cr.-p?ign strictly a white lerd campaign he advised that high grade nixed paint must he included in their prenotion notarial; he ;:-tec t-nSastf M.-c i /> ^ ^ -> ~ the carpeigr. had net difficulty in determining how to designate "good '-`xet p- i.,t: end for that reosor. had indicated "high lead content". President Trigg explained that he felt that- it v;ns e. definite r.ist'.ke for the- Lrr.Vr Association to indicate '-ny single product; he sugg.-sted that cm circular referred to night be improved by roc amending high grade mixed paint ar.u white lead in oil. It war suggested that President Trigg, Mr. Carter and Dr. Gardner hold a confer-nee for the purpose of rewriting the subject nrtter of this circular for reference to Mr. Dulany of the Nations1 Lumber Association. (Since t'nis report, President Trigg, Mr. Carter and Dr. Gardner have had a meeting end have cone to a mutually satisfactory agreement regarding the wording of the leaf let. The revision wos token by Dr. Gardner to Mr. Dulany who approved it and stated he would wire the various lum ber associations to use the new material in future, pro vided this wording meets with the approval of the Lord Industries' Association.) FORMULA DISTRIBUTION Dr. Gardner referred to the distribution of formulas by rev; material manufacturers direct to the customers of our Industry, such rr> furniture fee- P'f torics, etc. He presented c statement on this subject, which had mat -with the 0 UvAi( Irl\- ** c aprova 1 of the Scientific Section Committee, and recommended that this strtcr.ant bo published in'Thu Open Door end also in ell tre dc papers. This recommendation v.ac approved. The statement follows: -- Fr.EE FOri'ULAE FROM PA A' MATERIAL M/.NUFAnTUrKlS / This subject v.nc brought to the attention of the Executive ponmitt.-e - 10 - NCA 0 02681 by a member of the Association at the meeting in October, 1934. The natter ..as referred to the Scientific Section Committee to develop further infer-v-.tion re garding *he identity of the manufacturers referred to and the specific offere mods. Unfortunately such information has not been obtained. !,*v. erth?l.--sr, .he matter is considered of importance, jnd for this reason it is probably do?ir>1c th,at the Scientific Section Cornittee present its viewpoint to m?nufac:ur.-rs of niirocel lulosc base solutions, synthetic resins, solvents, pigments and ether row materials, through the medium of the trade press. It is the belief of the Scientific Section Committee that extremely helpful suggestions may be made by tlx: raw material manufacturers to the ligitimote producers of paint and varnish products, and that cooperation of this kind is of great value. The development of new products through research by the raw material manufacturer really cuts down the cost of such work in the paint manufacturer's laboratory, and necessarily increases t! legitimate demand for the newer materi als. Unfortunately, however, some manufacturers of raw materials are apparently continuing their activities in the way of furnishing anyone end every one with specific formulas, showing Just how to utilize their products in the making of finishes. It has been stated thet they have gone to customers of the paint manufacturers and indicated to then that it would be cheaper to mrke their own prints on certain formulas than to buy them from legitimate manufacturers. Then this matter was brought to the attention of the Synthetic Resin Manufacturers' Association some time ago, that organization adopted c resolution which apparently would be extremaly helpful, if religiously observed. This resolution, of which we approve, is rs follows: - 11 - NCA 0 02682 -- SE'OL'-'LT: C/nih-iio ,. eI Association, Inc., ioes that of t'ns paint, v;.rr.i sh and lacquer industry tc neve! manufacture end per vice protective coatings, and tr is not in r.cco:'dance with good or fair business prac tice?. for re sir. rar.ufacturers to ts ke -nv s .sc? to in v: -S 'i's of paints, varnishes, end Ircquers to rv.nu dr c-v.ti requirements of these connocities in 1 ivu o: chasing them from established nrnufneivrsrs; and i t the intention of the membership of the Synthe tic Resin .uf'eturers1 Association, Inc. to cooperate vi iV, J '' doers of the Feint, Varnish and Lacquer ?,:.nufe- ctrrers' ocieticn to t:iis end. It is probable, however, that other groups of raw nrtorirl ma.nufacture have not adopted similar practice, and for this reason there is presented bel ow a copy of the resolution adopted by the New York Faint and Varnish Production Club at a meeting early in February, 1933, (and subsequently adopted with modifications by many other paint and varnish production clubs throughout the United States). The resolution is as follows: The members of the Sew York Fjint and Varnish Production Club view with deep concern the indisc'imiru-te distribution of formulation and costs of raw materials of paints, varnishes, an-me Is rnd lacquers by raw materials manufacturers and their representatives to dealers, dis tributors, architects, engineers, etc. We feel this practice as ?/ell as the offering of trc'.nicrl service to those other than legitimate manufacturers is detrimental to the paint, varnish and lacquer manufacturer?, to their technical staffs, to tlio thousands of established jobbers and dcrlers and to the raw materiel industries for the following specific re: sons: We believe that: 1. TH3 practice induces further productivity in an rlrea.dy overbuilt industry by making it incorrectly :ppoar that the mruufacture of paint an! varnish products * is a simple operation and cam be easily accomplished with out the aid of tecliriccl knowledge and experience. - 2. This practice crei tes n false conception of paint and vurnirh costs in the minds of those receiving the information end many are induced to enter this manufac turing field who ere ignorant of the cost, of production, .12. NCA 0 02683 distribution and overhead. The naiurt 1 oe-.* ecus hoe is thc-t paint r.nd varnish products ere offered by the.*-a r.3v;co-,-.rs in the mrnufretuning field ?t ri.'iiculously low prices rnd -..hot night be colled damping. his damping results in price *: i on rout conceti+icn bet.vcen : ir listed dealers end the price war is given further im petus Ly the retail outlets os ir His 'red ty tr.:oe inex perienced si-nufccturers The dumping gor.errlly c:-r.t?uu-- s '.mtil T.he unfortvnr.te r.ova-oner in the field rc-ch- the end of Us v.-sru'ccs, c t v.hlch tine he le-ves the- r~v; nctcrirl houros holding the beg rnd retires from the industry . . . his sole contribution hr -zing bran an impetus to rn rIre-: dy demoralized price situation. l. It brings into the mrrkut products r.: r.ufreturod without correct toclui^crl control rnd there fore basically resound and v.ithout practical uniforeity. 5. It tends to mislead present es-tzhlirhed laenufr.eturers os to the value of techrical supervision end development. 6. It will retard further advancement in the art and ccirncc of paint and vornish development, which Us resulted from the efforts of the paint and varnish technicians in cooperation with manufacturern of these products. 7. It c-nnot result in expanding the market for paint and varnish products in the aggregate and therefore enmot increase the sale of raw urteris Is. 8. It increases the number of users of raw rar.terirls, resulting in increased cost of si lc-s end distribution and increased financial risk to the raw material manufacturers. 9. Apparent gain in soles to the individurl raw material manufacturers will be but temporary inas much us competitive or regular stock raw materials are promptly substituted for those on which the formula is being offered. T7e believe that the discontinuance of these practices will tend to stabilize the paint, varnish and lacquer ir.iu3try by the elimination of unsatis factory proiucts and unsound competition, i.nd v;e further believe tliftt certain information by raw no boric 1 manu facturers as to thsir products is vital end derlrrblej - 13 - NCA 0 02684 rscneiy, is.fo--Eu-.tion rlatlng to the y-.vsic~I --ud -eher.icr.l properties and pecj1; .-ities of tlosc p: oducts but that the distribution of a..?-ct formals ti'.n* sh-'-ld be discontinued, except on re-pa-sts from, and only giver. to legitime te manufacturers. It is suxrested. by the Scientific ctien C".~'.it tec th: -.ions be given careful stniy by all rev. materiel -?n--facturers. *r. -ichtcr sir.- ted that this situs tier. was replicable ?-nd eelvent ru-n-.uccturc-rs c-3 well as to the roofacini' :rs of synl Mr. Sulzberger s to tod thc.t sene gia.vr.t ~.r nufreturers : ere also distri bating formulas to large u,sere of tleir product.-.-; ho further sic; -i that he rolii-ve-d thc-t a st.* tenant from this executive Cecaittco to rc.v m- t - . :cl manufre- turers generally might be very affective. There followed c considerable discussion regarding the best method of distribution of the article referred to, md it v;;:s agreed that the material should be published in "The Open Door" and should be submitted t Trade Papers for thoir publication. TOXIC VAPORS Dr. Gardner then spoke et length cn the subject of the comparative toxicity of benzol, toluol and xylol, end presented the following statement whir ho thought might be published to advantage in "The Open Door": "In specking of toxic vapors, Dr. H. A. Gardner has st- ted thet his attention was recently drawn to the fact that rn Insurance Comp-ny r:;u sW r. prouin-nt manufacturer to protect 'is employees :g<insb xylol and toluol vapors. This would, of course, aako necessary the install: ti.n of certain type.' of draff fans in rooms'vv!vere prod-acts containing those solvents wc *.* used in the menufrebure of protective coatings. It has rl7;r.ys Wan the under*Unding of the -U- NCA 0 02685 / Beim cifie Sc-ccVen that til".cl ;nd xylol were relatively ncn-tcxic rs c'-,r:-d to benzol, but, since all three solvents ere derived from the sr.r.e be ss, it is possible that in certain concentrations the former two might be oir.siie:ed confercus. Dr. Gardner hns studied the records of the U. S. Public ".alin Service; the Final Report of the Ccumi L*;ee cn E.-nrol, of the Chemical mi Rubber fiction of the 'Rational Safety Council; end various medical reports, the "cst recent of which is m article in the ho-mber, 1933, issue of the Journrl of hygiene, published by the Cambridge "Jnivorsity Press, in Greet Brito5.n. The latter study, entitled 'An Inquiry into the Relative Tonicity of Benzene, end Toluene1, is rather extensive, and the final conclusions ere to the effect thr-t toluene is a poison of the seme type as benzene but acts less rapidly because of its physical-chenicsl properties. "The Scientific Section has also discussed the matter with representa tives of the Manufacturing Chemists' Association and others. It would seem desirable for paint, varnish end lac-quer manufacturers who ere using toluol r.nd xylol to provide adeo/ucte ventilation to prevent the presence of excessive emounr of fumes in the air. It is also deemed of the greatest imports nee to suggest to these manufacturers that wherever thoir products contain substantial amount? of these materials, they be labelled as follows: KEEP at:ay FROM FIRE AND USE IN A FELL VENTILATED PLACE Cleanliness and Sanitary Precaution Avoid." Danger with The se Matc-rir Is "In this connection, Dr. Gardner states that ore nromimnt 1; cquer manufacturer has adopted the pirn of having ray employee who is subjected to toluol, examined for blood count before trking the position. If there is : ny l bnorrar lity in the count, ho will not bo employed v-hcre toluol vapors - re pre valent. If the blood count is r.ornol, he will be re-cz' in-.d ;t the end of eren - 15 NCA 0 02686 six months, so that if sny change occurs, he may be removed from that job -nd placed in oti^er v;ork." Discussion of the subject indicated that publication of such an article might be too much of e scr.re-kecd, and for this reason it wcs suggested that there be printed in "The Open Poor*' a very brief statement to the effect that the Scientific Section has information on this subject, and that this informs- p tion is available to members, should they write to the Scientific Section. This method of handling the matter was approved. TUNG OIL COrpQKATION Dr. Gardner then referred to the work that is being carried on to develop tung oil groves in the South. He suggested that the groves of the American Tung Oil Corporation would never be paying groves, and indicated the difficulties of disposing of these groves. He strongly recommended, however, that our organization keep in close touch with developments in the South, and encourage the development of tung oil on suitable lends and under proper condi tions, and stimulate insofar as possible, through active propr.grnds work, the growth of tung oil in America. He suggested that this work be along the lines o' the old Flax Development Committee on flax, and that it be continued actively the Association at their headquarters in Washington. Dr. Gardner commented briefly on the work carried out by the Scientir:>' Section to bring into this country large quantities of Oiticicr. Oil from Brazil in order to make our manufacturers more independent of Chino in regard to tung -v ' CENSUS EUPFAU OF STATISTICS Mr. de Brun reporting for the Special Co.vnittca tn "Census r-ureru Lacquer Statistics" advised that this subject had been th .rcu.ghly cen^dered by y - 16 - NCA 0 02687 A Paticr.nl Indrs trial Sales Co.cr.itiee, and that it v.as th ar-.endaticr. that the Bureau of Census of t!:e Der.urt:..ent of Commerce be re:t 2d to substitute the following four classifications for the three clnssifir: .s of iscouer s-tles (finished lacs.ue-rs, dopes, tbanners) shewn at p.r.-s..r.t in Census Bureau statistics: 1. LeC'-uer Eases r.r.d Doses: All solutions consisting of nitrocellulose, solvents and diluents only end containing no resins, plasticizers or pigments. 2. Clear Lncc.uers: All solutions consisting of nitro cellulose end either rosins, oils and/or plasticizers, solvents end diluents which deposit & transparent film. 3. Pi.-rented Lacquers: All solutions consisting of nitrocellulose, solvents end diluents, pigments and either rorir.s, oils and/or plrsticinerf, which deposit r.n opaque fils. 4. Ttinners: All mixtures comprising solvents and dilu ents which are used for thinning nitrocellulose com positions. On motion duly made and seconded the report of the committee was approved for presentation to the Bureau of Census. SOUTHERN ZONE VICE PRESIDENT Chairman Phillips reported that Mr. D. C. Burnham, Southern Zone Vic President had been transferred from Atlanta, Georgia to Philadelphir., end had tendered his resignetion as Southern Zone Vice President. Mr. Phillips stated that the nomine ting committee had not as yet had time to suggest a successor to Mr. Burnham, and that this question would be submitted to the members of the Executive Committee for c mail vote. ! DISTRIBUTORS COMMITTEE Mr. E. S. Phillips ns Chairman of the District^ 0-3 omniltee reported that his committee had held r. meeting Monday evening, J-. n r ry 7th, for the NCA Q 02688 / urpose of considering a reco~endation S-i'-ritted by c- sped"! cor.nittee of ie Nation-: 1 "'holesele P*int Associction reco-aeniir.g the inr.igmrticn of the Na~ tion' 1 7'hole-srle Print Association with the N'tior.rl r-'int, V? mish t-nd hrcyner Ar.-ocir Urn. Following o discussion of the reccmmoninticn submitted by the N' V-'hclescle Print Arsocio 15on the Distributors Cc-nnittc-e recorrr.-.'nds to the E Conr.itt'53 the- reproval of the proposed orymi ration set-up: gr.jjrtion brood on the foil; vlng 1. Crsrte a Class E membership, rs follows: r. Any indnidur.l, partnership, association, corporr tion or other fora of enterprise-, or a division thereof, de finitely organised to render ind rendering r. gciv-r: ]. wholesale service which buys rnd maintains at his or its piece of business s stock of prints, varnishes, lac quers, white Iced, turpentine, linseed oil ana related products used in the printing business, end which through selcovicn edtortising rnd/or soles proueiion devices scll3 to r-tailcrc and/or to institution, or coarorcisl rnd/or industrial users; it being recogri-td thr.t it is net the character of a. concern's biding but the ch rector of its selling which marks it : s r. wholesaler. b. Class A members of this Association, performing whole saling or distribution functions through branch ware houses, shall designate a representative to represent them in the Wholesale Divir-ion. 2. Membership dues for Class E members shall be based on total sales of last fiscal year of paints, varnishes, lacquers, white lead, turpentine, brushes, cold water paints, linseed oil and relat'd products used in the painting business in accordance with the following schcd'&e: 1. Under f50,000 - - 25.00 2. 50,000 - 100,000 - - 50.00 3. Over $100,000 - l/20th of 1% 3. Association to create a new offico to be known as the Tnclesale Division Vice President, to be elected annually. 18 - N C A 0 02689 f Executive Co::~J.ttee of Wholesale Divir.ion: There 'hall be an Executive Committee of the hholorole Tivioion 0 c /** <risist of nine elec ted mbers to be divided os folio .vs: -- hre Ck to be elected for a ; iod of ore year, three to be elrct-: i'r --* a period of tv;o yea rs, d three to be elected for a p.rixd : - : jtc- 3 yc-ai's - with the r 1*11 :-hrec.- yc ar period Pro' sha: ion that r.o ber oi.o bos o'-rvi-d a be eligible to succeed '.i~.seIf on'i] ftr a*' a lapse of one ye ar. ho Chairman end Vice Chr-ir:-- n of j. no >recuiive Committee sh; be elected by the Executive C lit n. : from a mong;sit its jmce; mbership. The Tholorolc Division V; cs F v ^ c idlent sh 11 also be an c r~> tit*; it:teu of the Wholes ale 5. Officers: There shall be the following regular officers of this Division elected annually: A. Chairmen of Division B. Vico Chairman of Division C. Chairman of Executive Committee D. Vice Ciiairman of Executive Committee E. Secretary The Chairman of the Division shall be the one who is elected as the Divisional Vice President of the Association. 6. The Executive Committee of this Division shrll report to the Nomina ting Committee of the Association at least six weeks in advance of each annual meeting of the Association, a naaie or names of candidates for election by the Association hs Divisional Vice President. 7. The Executive Cosaittee shall annually appoint a Nominating Com mittee* whose duty it shall be to present to each erurial meeting of this Division nominations for Vico Chairman of the Division to serve for the ensuing three years. 8. The Division shall elect its o.m officers except that of the Divisional Vice President who shall be elected by the Association. 9. The Executive Committee of the Wholesale Division shall roccm.icnd to the Executive Committee of the Association, the individual it desires to have act as Secretory of the Wholesale Division end of its. Executive Committee. 10. Duties of Officers: The Chairman of the Executive Committee ehall perform the 'isual duties which are to be assumod by the Vice Chair man of the Executive Committee in the Chairmen's ( vce. NCA 0 0269C - 19 / 11 Peers busy: The Secretary shall p rfoi'.n the usual duties the direction of the Executive Co iitf-e of the '"nclcselcsion end subject to the President of the Association. The duties of the Divisional Vice rresident shall be to set os Choir..<rn of the Division - presiding at ell meetings oi t no '.shine such apooir.tr.ents os mo oo ro?'iir^ci By-Lews, and also those rea"dred by action of the Dr?i,v. isional Exocutivj C'wimiltee md ccrryir.g out zny other previsions of *.he Executive Coronittec or of the Division. In the Chairman * s r.b-.once has duties sbe.ll bo performed by the Vice Chairman. 13. The V.'holoscle Division shell hold cnc- re gaoler nesting e-v.ch y-.v r v-itiun throe days in advance of the annual convention of the Association end shall hold special meetings on call of +he Chuirnen or upon written application of five m-.rburs of the Execu tive C'.u.unittoe with due notice. The Executive Committee of the Division shall meet at least four tines a year, said .meetings to to held approximately throe months rport. Special meetings may bo called by the Chair:n~n or upon the written rcouast of a majority of the members of the Executive Committee. 15. The animal meeting of the Executive Ctzr sitt-ee of this Division shall bo held irj. 'uirtely preceding the rnnu~l mooting of the Division as provided for in Paragraph 13 'bcvc. .16 The 'Ah-'lesale Division shall act independently of the Association ,n all natters of policy not in conflict vdth the Constitution and Sy-Lnv,-s or principles of the Association. The D'holesale Divi sion may make recommendations to the President of the Association, or through him to the Executive Committee of the Association, with regard to activities to be CJu-ried on in behalf of the Wholesale Division involving the expenditure of funds. Final decision with regard to such exp; nditures shall rest with the Executive Committee of the Association. The Executive Committee of the rholestle Division shall have the power to act for the Division between divisional meetings. 17. The Wholesale Division Vice President, as Chairman of the Division, shall furnish to the President of the Association, at least throe days in advance of each regular meeting of the Executive Committee of the Association 2 report of the actions of the Divi sion and/or the Executive Committee, which report will be prowenled to the Executive Committee of tlie Association by the President. The wholesale Division Vico President shall submit through the President to the Executive Committee of the Associate'n, at the annual ncc-tiug of said Executive Committee, his jvnu'l r.-p rt of 20 - NCA 0 02691 the activities of the Division. The Executive Conr-ii tee "ill review this report end return it to the Divisional Vice Frcsident, with its comments, for his present?tion to the Association at the c.nnurl convention. IS In advance of arch annual nesting of the . .ssociaticn, t he ! cr live Crnr.ittoe of the Wholesale Divisim shell rec:r~:nd to 41-. ti-.-- fofficers of the Association, such natters v.s it desires to hr.vc presented for consideration et the forthc ring annuel c . nv r.tirn of the Association. 19. Provision to be made that no wholesaler qualified for Class E rertcrship shall be token into the mrnbu-rship of a local erg'nisn 't ion without first bc-ccning a Class E member of the National Association. Aftc-r becoming a Class E member he nay join a local association, or associations, without payment of the $20 dues going to the National Association, but only upon pa.>T.ient of the locr.l association assessment. This rule to be promulgated at once, but onfo re orient to be waived in coses where it seems necessary or desirable up to September 30, 1935, but not thereafter. If a Class A member of the Association manufactures loss than 50% of rds total volume of business of the products of the industry such membership shall be transferred to Class E membership and he shall pay dues accordingly: provided further that if such member so desires ho may also continue ns c. Class A member by paying ; dcitionrl r.nnurl dues of $2f.00. 20. Voting by mail: Executive Committee: When ne-cessary the Executive Committee of this Division shall vote by mail on questions presented by the President or Chairman and a majority of the votes received within fifteen days shall be decisive. Members: Questions which in the judgment of the Executive Com mittee of the Wholesale Division are sufficiently important for consideration of Class E members and representatives of Class A members and not important enough for n. special meeting, nay be voted upon by nr-.il. A majority of the votes received within thirty days shall be decisive. 21. Committees: There shall be such committees appointed by the tfholcsclc Division from time to time as seems necessary and desirable. The interests of the Wholesale Division should be merged vdth those of the general Association as fa.r as possible. There should, for example, be a member or members appointed from the Wholesale Division on the Associetion's Credit and Collections Committee, and on such other committees as will serve useful purposes to the Wholesale Divisionand to tho Association itself. When meabers of the Wholesale Division are appointed on the general committees of he Association, members from tlx: Wholesale group shall make report? xo tho Wholesale Division from time to time cs there may be mr.ttcrs to r-port on. - 21 - NCA 0 02692 22. It shall be the duty of such standing committees as are appointed to present reports to the annual meeting of the Wholesale Division covering such points and embodying such features as may be of interest to the members; to formulate such recommendations and present thorn in such form and manner as may seem to serve the test interests of the Division. All reports shall be r..r.ils-d to the Secretary thirty coys prior to the annual cor.v--nticn. 23 esident of the Association shall be ex-officio a n ter of .olesaie Division and of the Executive Committee th- oof. 24. At meetings of the wholesale Division, all Class E members shall have full privileges of the floor and all privileges of full membership v.lth one vote. Representatives of Class A members in the Wholesale Division shall have all privileges including privi leges of the floor with one vote. All Class E members shall have the privileges of the floor and all other privileges of full membership at meetings of the Association except voting privileges. The Wholesale group shall elect at their annual meeting immedi ately preceding each annual convention of the Association, dele gates to the annual Association convention at the rate of one delegate for every ten members in good standing. In the election of delegates each member of the Wholesale Division shall be entitled to one vote but no representative of a Class A member of the Association shell be eligible to election as a delegate. Such delegates shall have full voting power at the Association convention. 25. President of the Nationcl Association to request the Presidents of the local Associations throughout the country to appoint a man from their Class E membership on the local Trade Sales Committee. 26. All applications for Class E membership in the Association shall first be referred to the Executive Committee of the Wholesale Division for approval, following which trey will be presented to the Executive Committee of the Association for final election. Following a considerable discussion of the subject and in answer to several questions President Trigg stated that the jobbers had had an associr.tioi for about eighteen years, but had been unable to do much of a constructive nature for the benefit of the industry; they feel that they are in fact a part of the organized industry and should be more closely affiliated with the manu facturers. He expressed the opinion that cut of this r.ffilirtion might come a closer understanding between the independent wholesaler and the manufacturer - 22 - NCA 0 02693 who performs wholesale functions through warehouses. Mr. Trigg explained b.iefly the finances involved in the proposed amalgamation and stated that as nearly as could be determined the income would balance the expense involved. Mr. Roh expressed the belief that the distributors need the support of the manufacturers, and that the manufacturers need the cooperation of the wholesalers and that the proposed plan will strengthen the organised prcgrrm of the industry. He expressed the belief that there are worth while problems in the distribution field in the solution of which the manufacturer and the whole- salor can cooperate to their mutual advantage. Mr. Richter expressed the thought that the manufacturers night be holding out hope to jobbers which could not be completely fulfilled, and from which there might later come disappointment. Mr. Carter stated that he believed it would be a good thing to bring the jobber and the manufacturer into closer relationship through which the manu facturer might exert a beneficial influence. Mr. Dunning stated that he believed the proposed amalgamation would bring about a more effective organization which would be of real benefit both tr manufacturers and to jobbers. Mr. Martin stated that the Distributors* Associ.r; i- had done nothing really constructive for several years, but that some of the e-ru bers of that Association believe a constructive program can be developed which would be of benefit both to distributors and to manufacturers. Mr. Figgis stated that with the Headquarters of both associations und.'-r the same roof as they are at the present time in Washington, the Manufacturers' Association is able to give to the Tiholesalers* Association the benefit of closer i supervision, and that the advantages to be secured through a closer affiliation are in reality advantages to the manufacturer. - 23 - NCA 0 02694 Mr. Phillip? stated that he- believed the amalgamation v.ouid enable tivr Manufacturers1 Association to give to the wholesalers the le:dership which they need in order to improve the distribution end of the pair.t, varnish and lacquer manufacturing business. Mr. Bennett expressed the belief that the amalgamation would bring wore jobbers into membership in local associations and thus strengthen th.se important branches of the National Organisation. Mr. Melum stated that lie did not see whet advantages the jobbers v.r-uld gain through the proposed amalgamation end expressed the belief that they niL.ht not be entirely satisfied with the set-up, and might at some time d:m nd '-.pre sentation on this Executive Coiumittoe. He also felt thr t the V.'holosalv rs' m-.nurl meeting coming just before the manufnct'irers* meeting would change the character of the manufacturers' meetings. Hr. Melum expressed the furth.or belief that there might be later developments which would not be advantageous to the Manu facturers' Association and stated that in his opinion the jobbers' interests and possibly the manufacturers' interest? would be bust served if the jobbers con tinue their present organization with the cooperation of the Manufacturers' Association. It .vns moved by Mr. Martin, seconded by Mr. Dunning tint the recomm-.ndation as presented by the Distributors* Committee for the amalgamation of the .National wholesale Paint Association with the Ns.tior.al Faint, Varnish : nd Lnccucr Associntioa be approved. Motion carried. , UNFAIR COMPETITION COMMITTEE The Chairman edvised that the Committee would be requested Inter to '^fu approve the appointment of the Unfair Competition Committee. / kp? - 24 - NCA 0 02695 f OHIO FUEL TAX At the racua-st of tha Chairman the Sacretiry re id the foliovdr.g cr:."ur.ia:.":icn by the "Sievelrad Print, Varnish cr.d Lacquer Association to the Vicc-C'r.irr-.r. of the Legisl-. Live Committee of the National Association for its action in holding tc bring about r. rescinding of the Ohio Fuel Tax: hr. Ur.. J. Pitt Lecorb-ar 27, 193'. Legislative C emit tee Ee.tion:.l Paint, Varnish end Lacquer Assoc. }0C Phillips Avenue Toledo, Ohio Den:- fir: The Clovel- nd ?,? int, Varnish rnd Lacquer Association, the-rugh its Er-'-cutive Oc:mittso, has instructed the Secretary to nx- tend to you the Ihr.r.kn of the Club for the very excellent work which ; ou aid in connection with the rescinding of the fuel tr.x an it nnclie,s to the paint manufacturers of the State of Ohio. This is just one of the several important -letters on which you have c.p-ru nMe tc help us and no wish you to know that ;vc ppre^intc vaunt you h.ve dene. Yours very truly, CLEVELAND PAINT, VARNISH AND LACQUER ASSOCIATION (Signed) N. W. PUTNAM Secretary TINE AND PLACE OF 1935 CONVENTION It wes moved by Mr. da Brun, seconded by Mr. Ur.tlock that the Fresid-_nt be authorized to 1 rrengo fox* Hotel facilities in connection with the 1935 conven tion to be held in Washington on dates in conplica.ce with the provisions of the Ly-Laws. `lotion carried. Mr. Havey suggested that when the tine rnd place of the 1935 Convention are announced, the ; a Worship bo adviced v.ith rug: rd to tl:a advantages of holding the Convention in 7: sbington. - 25 - NC A 0 02696 AUTMOF.mnON TO SIGN CHECKS Tho Secretary presented the following resolution to comply with a p vision of the By-Laws: "T-KEREAS, Article IV, Section 5 of the Consti tution provides that disbursement of the funds of this Association shall be nr.de by voucher, signed by the Secretory, or, in his absence, by a representative authorized by tho Executive Committee, and counter-' signed by the Treasurer, "BE IT RESOLVED, Tliat in the case of the death, illness, disability or absence from his office of the Secretary, T. S. Moulton, Accountant, is hereby au thorized to sign checks and vouchers." It was noved by Mr. Patton, seconded by Mr. Richter, thr.t the resol tion as presented be approved. Motion carried. BUDGET AND FINANCE COMMITTEE The Chairm-in announced the appointment of the following Budget and Finance Committee for 1935: C. J. Roh, Chairman D. W. Figgis S. R. MatIrek H. A. Melum William Richter F. L. Sulzberger J. D. PATTON PESIGNS Tho Chairman presented the follovdng letter of resignation received from Mr. Joseph D. Patton: - 26 - NCA 0 02697 January 8, 1935 To the Chair"an. Executive Committee, -National Paint, Varnish & Lacquer Association '.'.'ashington, D. C. Dear 3xr: The thoughtfulness of the Executive Ccr.nitt-re in appointing r.o to fill the ur.expired term of my esteemed father is grestly appreciated, rnd I v.ish at this time to thank you for the honor and trust therein expressed. Eowever, cue to many circumstances which I " shall not attempt to explain, I find it impossible to continue in this capacity, and ask that you accept my resignation to take effect immediately. Yours very truly, /s/ JOd-PH D. FAT-TON' "r. J. D. Patton stated thrt in view of the fact that Mr. E. D. Griffin h-d been appointed general manager of the usint division of the Pittsburgh Plate 01: ss C.r.pany he deemed it advisable to tender his resignation as a member of the Executive Committee in order + hat the Pittsburgh Plate Glass Camprny might bo represented on the Executive Committee by the manager of the paint department if the suggestion met with the approval of the Committee. Mr. Patton expressed the plucsure he lea enjoyed through association with the members of the Committee, and expressed regret that he found it necessary to present his resignation. President Trigg explained that he had discussed the situation with Mr. Patton and that in moving the acceptance of the resignation he wished to express the Executive Committee's very sincere regret and to thank Mr. Patton for the very good r.ork lie has done for the Association and for the industi-y as a whole, and to further express the hope that he will continue to closely cooperate v/ith the Executive Com! mittee and the Association in their activities. The notion was seconded by Mr. Figgis and carried. - 27 - NCA 0 Q2698 f / ELECTION TO FIIL VACANCY It v.'ag moved by Mr. Pichter, seconded by President Trigg tret dr. "t-4- F. D. Griffin, General Manager, Paint Deportment, Pittsburgh Plate Glass Co.:., - j be elected a member of the Executive Coord.t.tee to fill the venney crucod 'ey * Ka nation of Mr. Patton. Motion carried. NATIONAL ?.F??.Ffl.,'T/.TlVE IS NET YORK Mr. Dunning stated that' the o'>.sticn of the 'ypoirfntrvt of r n- ti i re pro s entr tiv a in the New York free Ms bt-v-n discus sod rt 1 ngth in New York : :-.d that the New York Print, Varnish --nd Lr.cqu-.-r Association strongly rocounands to tho Executive Committee of the National Association th-. t such rn rppointnent bo node. Mr. Roh roi d the following conmunic-: tier, from dr. James S. Yolf, President of the Mow York Atsociction, under dr to of January 4th, nd Ms reply to dr. '.Volf under ante of Jcnur.ry 5th: J: m: ry 4, ly'35 dr. Chcs. J. Roh durphy Vrrnish Company Z?L "cdhorter Street Newark, New Jersey Dorr dr. Roh: Tliis is just to remind you that when you rt tended a moating of the Executive Committee of the New York /.esocir tion come time r.go, you indicated a willingness to recommend to the Executive Connittee of the Notional Association at its next meeting, the appointment of a New York Deputy of the National Association. In view of the fact that I understand that a meeting of the Executive Committee of the National Association will be held in Chicago next week, I nm bringing this .natter to your attention. Sincerely yours, /s/ JAMES S. WOLF - P8 - ?resident NCA 0 02699 / January 5, 1935 Mr. Ji-Tios S. T'olf, President "j* York"Faint, Varnish & Lacquer Association 336 Fourth Avenue Soy; York. N. Y. oil: I have your letter of January ith, nd I V.cpe I did not give everybody the impression that you recei- eu at the -hxecv.tive Co-.nittoe meeting of the New York Feint, Varnish and L c'jiicr A?socla tion which I attended recently. is J y. .-cmbor it, I said I would give the matter r of* c^.s ccr.sidc-rr t Lon, but I certainly aid not have in rind say- that I would .>:.t~cnd to the "xc-cutivc- Committee of the ionel Association the s roointment of r. New York Deputy. Tl.e thought that I hr.d was that I would give It fevorable consider'tion in the light of our National finrncinl cloture. To be perfectly frank with you I do not see how I can recommend it rftar going over it rep-m. todly. I rn writing you promptly '.'rout it because I do not wont r.ny nis-nprrohutisi>/n iv.gi.rd.lng it. I hive come to the con clusion notwithstanding thr.t I would nr.tiuvliy vrnt to pier-sc the rn.mb.-rship of my own Association, but in fairness to all the- ; secciations I really c.annot see tow I can edvocote it. Very sincerely, CJP./LB /s/ C. J. ROH Mr. Phillips stoted thrt if tto National Association were to place Deputy in the New York area they would undoubtedly be celled upon to do the seme in Chicago, in Philadelphia, end in other lr.rge centers; he stated that the finances of the Nutioncl Association would not permit of this expansion. Mr. Phillips expressed the belief that this desire on the part of the New York Association for c Nctionr.1 Representative developed us a result of conditions brought about by the Code of Fcir Competition, conditions which might not con tinue very far into the future, v/ith the consequent lessening of demand for ruch an f ppointment. 29 - N C A Q 02700 / Mr. Dunning stated that ha realized the situation in which tbs Na tional Association was placed by such a request and that under the circunstar.ces he did not feel justified in pressing for a favorable decision at this tins. T..c tvso wins: ?.n1 ovut.oq :t two-fifteen P.M. F..V-'. Elton: enra NCA 0 02701