Document Yr6RvMwYo05YEw029wMX2gegn

LIA21043 v ANNUAL MEETING OF THE MEMBERS OF THB LEAD INDUSTRIES ASSOC IATICil St. Louis, Missouri April 6-7, I960 Tie annual meeting of the members of the Lead Industries Asso ciation was held on Wednesday and Thursday, April 6-7, i960, at the Chase-Park Plata Hotels, St. Louis, Missouri. Members Present Harold A. Cohn William R. Black Edvard Brennlck C. K. Conard Vincent Z. Dorman A. Z. Lee, Jr. David T. Steele - Jean Vuillequei William B. Clancy A. J. Phillips J. S. Start, Jr. Simon D. Strauss Chas. W. Ambler, Jr. Carl H. Cotter111 Geo. L. Spencer, Jr. Carl A. Underhill, Jr, Howard L. Young Richard A. Young Rudolph 0. Erickson Thomas 1C. Graham Roland J. Lapee Frank P. Barton Julian S. Bcrs R. J. Hopkins Ralph H. Cutler, Jr. Hugh W. Halton Sidney E. Sweet W. G. Hlscock A. Y. Bethune Roger H. Cutting William G. Hewitt Harold E. Lee Barnett A. Toraey ~~-I. L. Barker A. L. de Hmitle R. C. Bell Harold T. Fargey E. H. Gautschl Robert Hendricks A. D. Turnbull A. Olaf Wolff Representing Alpha Metals, Inc. (Alpha Loy Corp.) American Metal Climax, Inc. do do ' do do do do American Saeltlng Si Refining Co. do do do American Zinc, Lead & Smelting Co. do do do do do The Anaconda Co. do do G. A. Avril Co. Bera Si Co., Inc. Broken Hill Associated Smelters Pty., Ltd. (C. Tennant, Sons Si Co. of 2f. Y., Agents) do do (Consolidated Zinc Corp. Ltd.) The Bunker Hill Co. do do do do Cerro de Pasco Corp. do Consolidated Mining 81 Saeltlng Co. of Canada, Ltd, do do do do do i t > ' k r i i aiggjjH3..Iy^M|T MWWfftWjBW waway !.'. j;**'"' ^'****Sr**rs-^ LIA21044 Annual Meeting Minutes -2- April 6-7, i960 Henry L. Day Wray D. Fomin C. 3. Anderson 8. F. Miner C. E. Bassett W. D. Atteberry D. R. Carter W. R. Dice M. H. ZoUer K. V. Green E. R. Anderson J. A- Coateno John S. Wlntrlnghaa Morris Foodl* Harvey D. Ferer Dick Propst R. A. Gardiner, Jr. V. P. Wilke, ITI Levis S. Sowers, 3rd Frank H. Hurless Herbert M. Weed D. B. Murph J. V. Murph J, Jennings W. T. Trask Wllllan J. Welch Henry J. Whitson V. J. Brazier John J. Forst William A. Oakey Jens Jensen C. Merrill Chapin, Jr. Robert F. Doelling Andrew Fletcher Charles D. Henderson William F. Hoffmann Charles R. Ince W. T. Isben Carleton C. Long R. J. Mechln John G. Wehn Jack C. Pierce L. A. Creglov Oscar A. Glaeser 0. H. LeFevre C. G. Rice ?. L. Warner Howard Hovasel Reuben Vlener Robert Quenell Day Mines, Inc. do Delco-Reay Dir., General Motors Corp. do Dixie Lead Co. The Eagle-Plcher Co. do do do !he Electric Storage Battery Co. Ethyl Corp. do do Federated Metals Dir., American Saeltlng & Refining Co. Aaron Ferer & Sons Co. do Gardiner Metal Co. Harwood Lead Products, Inc. Imperial Type Metal Co. International Smelting & Refining Co. (Anaconda Sales Co., Agents) do Murdock Lead Co. do Rational Lead Co. do do do Clin Mathieson Cbealcal Corp. do do Pend Oreille Mines & Metals Co. St. Joseph Lead Co. do do do do do do do do do Shattuck Denn Mining Corp. United States Smelting Refining and Mining Co. do do do do The Victory White Metal Co. Hyman Vlener A Sons Western Lead Products Co. sit^^^i,f^i^mj-^jPPU!i.vtii^^.vAw^^^^ . - . - ' '.-IA* r.''T*jfat*-iij>*!.ZcZ '+'*&*' " n.' i-n.iiwwjpWMP' y**,#***#** LI A21045 Annual Meeting Minute# -3' April 6-7, i960 Represented by Proxy Allied Qseltlng Corp. Lead Product# Co., Inc Hew Park Mining Co. Bevnont Mining Corp. John A. Roebling's Sons Dlv., The Colorado Fuel A Iron Corp. Vulcan Lead Products Co. White Metal Rolling A Steeping Corp. Guests Jean Adamian C. H. Allen L. E. Antoniee* C. W. Ballard Richard J. Bauer Philip R. Blanc Thomas M. Bums Frank Canard Walther Caaper J. ?. Dolan Yves du Parc William R. Farrell William H. Flnkeldey E. L. Frank Jack 0. George Arthur J. Gerval* Paul Guteroan Paul V. Higglna Webster Hodge V. D. Book F. R. Jeffrey C. P. Jenney Jacques Jerusalem Lindsay F. Johnson J. J. Kelleher Roy L. Livingston Edvln W. Magee, Jr. Thocas D. Moder Ary Mossinan J. W. Patterson A. J. Payne K. E. ReInsberg H. R. Serdarevlc Morton M. Shapiro J. A. Singnaster J. V. Stafford Joe A. Stone George J. Strong, Jr. Mortimer J. Sullivan Karuo Tachibaaa Brian Wilson Clark L. Wilson Joseph Zlnsoeraan Transamine S.A. Vitallc Battery Co. Associated Metals St Minerals Corp. Hercules Fovder Co. Henning Bros. St Smith, Inc. Indussa Corp. Canadian Babaasy 0. S. Tyson St Co. Metallgesellschaft A.-Q. Qrchan Mines Soclete Generale des Mineral* Bolt Baranck and Bevman Inc. Singnaster A Breyer, Inc. Philipp Bros. Ore Carp. The British Metal Corp. (Canada) Ltd. International Minerals A Metals Corp. Metal Traders, Inc. 0. S. Tyson St Co. BatteUe Memorial Institute W. R. Grace St Co. Rational Zinc Co., Inc. Qrchan Mines Cie Royale Aaturienne des Mines The Sew Jersey Zinc Co. Hercules Powder Co. Australian Embassy F. W. Dodge Corp. The Lehman Corp. Anaconda Wire and Cable Co. Canadian Department of Mines A Technical Surveys Electrolytic Zinc Co. of Australasia Associated Metals A Minerals Corp. Mctalchemlcal Cocncrclal Corp. B. Shapiro A Co. Inc. Singnaster A Breyer, Inc. "American Metal Market" Division Lead Co. E. I. du Pont de Honours A Co. International Minerals and Metals Corp. Mitsui Mining A Smelting Co., Ltd. . "Steel" Emergency Lead-Zinc Committee "Dally Metal Reporter" '<IWPK IW H li.il ui \ -4 Annual Meeting Minutes -V- Aprll 6-7, i960 Government Representatives 0. W. Bilharz Harlan P. Bramble R. W. Oech&a H. Kenvorthy Thecas H. RUler C. V. Hlchole J. A. Rowland Harold J. Schroeder Donald Shorn Jack Spore Office of Minerals Mobilisation, Department of Interior Department of State U. S. Bureau of Mince do do Department of State U. S. Bureau of Mines do International Resources Staff, Department of Commerce Department of Interior Dead Industries Association Staff Robert L. Zlegfeld, Secretary-Treasurer David M. Borclna Manfred Bcvdltch Bruce Fader Edvard J. Mullarkey Sid W. Turner Homer S. Yetoan Expanded Research Program--L1A-AZI Schrode F. Radtke, Director Samuel E. Eck The minutes of the previous meeting of April 22-23, 1959 vere circulated to members after that meeting end no changes or corrections vere received. The president made the following remarks: This is the 32nd annual meeting of the Lead Industries Association. Welcome to all. Last year the Lead Industries Association and the American Zinc Institute suffered a great loss in the fatal ac cident of Mr. and Mrs. Jack Bradley. Jack was president of lead Industries Association and had been an officer of American Zinc Institute. He constantly strove for better salesmanship in the industry and vas in the forefront of the great strides which have been made in LIA's research and market development activities. He vorked unstlntingly in this regard far both lead and zinc. It is appropriate, I think, if we all stand and observe a moment of silence in honor of Jack's memory. An outstanding development for lead in 1959 was that for the first time in many years the Free World's lead production and consumption vere approximately In balance. Our estimates, which are, of course, partly conjectural, indicate that about n! UI ! r ft? :^ * Annual Meeting Minutes -5- Aprll 6-7, i960 the sane balance vill be Raintlined during i960. Lead seems to be emerging free a long period of overproduction Into a situa tion where natural increases In consumption should bring better iay3. Eovever, there are still largo stocks of lead In the hands of producers here and abroad. Discipline over production and sales vill be necessary to accccrpllah an orderly disposal of these stocks. The internallon.il nature of the effort to Improve the consumption of lead Is very gratifying. I would like to thank all of the members of the Lend Industries Asso ciation here and abroad who contributed to the various funds of the Association and to the expanded research program. Quite apart fraa the value vhlch vill be received fren the money spent for these various activities, the efforts to Improve lead consumption on an International basis have, I believe, re sulted In better understanding by all producers of the Inter national aspect of the lead buslnecs and have underscored the fact that producers of lead, wherever they may be, all hare cccmon problems vhlch can only be solved by a coraaoo effort against the Inroads of substitute materials and towards the greater utilization of lead. Producers and consumers all over the world are to be coamended for the fine support given to these efforts which con only. In ey opinion. Improve the position of sellers and buyers alike. As most of you know, under the auspices of the United Rations, many large producers of lead outside the United States have on two occasions agreed to licit their production or ex ports of lead. Even the Russians demonstrated a degree of cooperation. Of course the Communist bloc Day not have Important quantities of nonferroun metals available for export to the Vest. Phis was touched upon In an article In the "Hcv York Pipes" 00 Monday by M. S. Handler, who reported from Warsaw that Moscow Informed members of the Soviet bloc that heavy econoede ccomlt.nents at home and outside Europe cay result In fundamental revisions of Russia's trading policy toward Eastern Europe by 1965. Hie article Indicates clearly that the Russians may need chiefly at home all of their Industrial raw materials ranging fraa Iron ore and petroleum to almost the entire field of nonferrous metals. Rot only the lead Industry but other Industries are thinking more and more In terms of lead. Lead has been glamor ized recently by a number of articles which touch upon the uses of lend for sound attenuation, antivibration, and the potential market for lead storage batteries in electric truck* and cars. a.i Li *?104p s*was* .i Annual Meeting Minute* -6- April 6-7, i960 During theae meetings vc shall hear from representa tives of the lead producing and consuming industries and from others. I thlnic ve shall hear of the outstanding potential of lead In the battle against noise and vibration. In porcelain enamels for steel and aluminum, in glares for brick and nev structural clay products, la electronics. In nev paint pig ments, and in other nev products. Look AHEAD vith LEAD! REPOST 0? THE RESEARCH DIRECTOR The research director reported on the progress ot the various research projects and others being Initiated. A copy of this report Is available upon request. REPORT 0? THE SECRETARY-TREASURER The secretary-treasurer reported to the membership on the 1959 activities and plans for i960, his report having been circulated to members on March 28, i960. REPORT OP HOKPiATIBO COMMITTEE FOR DIRECTORS Mr. Ensnett A. Tomey, chairman of the nominating Ccralttee for Board of Directors, reported for his Committee, composed. In addition to himself, of Messrs. C. B. Anderson, D. A. Mcrson, J. C. Pierce and H. M. Weed, and placed in nomination the following slate: Julian Bers R. D. Bradford J. A. Costello W. H. H. Cranmer H. L. Day Andrev Fletcher K. W. Green F. H. Hurless Harold E. Lee J. A. Martino C. 0. Rice S. D. Strauss Jean Vuillequei William Wilke, III M. M. Zoller Bers & Company, Inc. Federated Metals Division, American Smelting and Refining Company Ethyl Corporation Nev Park Mining Company Day Mines, Inc. St. Joseph lead Company Hie Electric Storage Battery Company International Smelting A Refining Company (Anaconda Sales Company, Agents) The Bunker Hill Company National Lead Company United States Smelting Refining & Mining Company American Smelting & Refining Company American Metal Climax, Inc. Baaaond Lead Products, Ine. The Eagle-Picher Company There being no further nominations, the slate vas unanimously elected. D iml i H. .1 ..y.mij. <* _*/*.* Jw/awa; LI A?10 49 Annual Meeting Minutes -7- Aprll 6-7, I960 ADDRESSES AT KEETHKJ The following talks were delivered at the annual meeting: Storage Batteries.............. C. H. Allen, prealdent. The Association of American Battery Manufacturers, Inc., and vice president, Yitallc Battery Co., Inc. I'uture Automobile Power Plants and the Gasoline Market..................... John S. Wintrlngbaa, Ethyl Corporation Re search Laboratories Outlook for Building Construction................Edwin W. Magee, Jr., associate economist, ?. V. Dodge Carp. Lead In Acoustics................Willian R. Parrell, senior consultant. Bolt Beranek and Scvnan, Inc. The Outlook for Lead In the Cable Industry............ Ary Mossloan, manager of market research. Anaconda Wire ! Cable Co. The International Lead and 7.1nc Study Group.......... C. V. Nichols, special asst.. Office of the Assistant Secretary far Economic Affairs, U. S. Department of State Recent Development In World Lead and Zinc Markets..........R. Hendricks, executive vice president, The Consolidated Mining & Smelting Co. of Canada, Ltd. Style Is More Than Skin Deep.............. Peter Kyropoulos, technical director. General Motors Styling, Technical Center Copies available to members interested. ATOtOUSCEMEHT OF EIECTICM OF OFFICERS The election of the following officers for the ensuing year at the meeting of the Board of Directors on April 7 was announced: Jean Vuillequez, President and Chairman of the Board Joseph A. Costello Vice President Charles R. Ince Vice President Simon D. Strauss Vice President . ! Secretary V W fiji iurU,HP,l| M' M WWJg'P WM U' I P U PIW J .C/I (S; ' Mj.iJ .J P M JM.M ill-- i iii wmw)i|ii rin~p.--i--~~-- --"t it h -- ------- ----- --------------------- --------- LlA2l05o" -r~ >'c: r ...j a s : 1;.? rAnum mia ii 5:00 r.::. ,W`:UI?EAY, APR II. 6, i960 THE roPANK.D tfLSV/RCH I-SCGiV'i Or THE LEAD INDUSTRIES ASSOCIATION By Schrade y. Eadtke Director cf Research Lead Industries Association 60 East 42nd Street New York 17, H. Y. One year ago when we first discussed the Expanded Research Progran at cur annual meeting, we mentioned the fact that cur Industrial world today is ose wherein the term "survival of the fittest" Is most apt. At that time we stated that a material . u"t remain competitive in today's world or accept ultimate extinction. Ve also stated that lead wns a modern metal and could meet the challenge of today's competitive world 0 and remain competitive. We discussed the broad scope of our research program and various areas in which we were working. You no doubt want to know whether we still ieel that we can remain competitive and whether we have met this challenge. The answer is--Yes! Ve are meeting the challenge and we are obtaining success in our research efforts. Significant progress is being made and we are forging ahead not ^nly to retain our markets but to develop new markets for our haterlals. Considerable time Is required to take a new idea from the laboratory bench to a profitable item for a company or an industry. One cannot expect results overnlght, yet despite the time which is required under ordlnsry conditions, vehave been uccessful in tvo particular areas In lead. Cur research on the development of new and improved methods of producing cable sheathing continuously, which was a Joint tnlure between the Lead Industries Association and the John F. Robertson Company, tins resulted in a process for continuously extrudii^j all the known cable sheathing alloys at rates which are deemed economic, with physical properties at least eeuival- (Presented at the annual meeting of the I/msd Industries Association, St. Louis, .'['.c-nturt, April 6, i960) iaiqflry>a)nuL N 227.01 L142105 1 *'"v* fi.f.iv.wxi: nt to those obtained by earlier production methods. Thlr, is a truly oJgnlfleant development end haa stimulated work in other countries to improve processes and to 0 permit the continuous production of alloy lead cable sheathing. In addition to this, through one of our fundamental research progrens, an ultra low-loss dielectric ceramic has been developed vhich has stimulated interest in a mmber of other ctcipeniou ccsmerciajy producing dielectric materials, and is another example of the fact that lend in u critical material In today's world. These are tvo truly significant de.'elements. I will, of course, later on in this paper, discuss all the other research we have under way and point out to you its economic and technical signifi cance. l.'e should point out to you that our industry, here and abroad, !o enthusias tically supporting this program. It was not merely a fly-by-night venture vhich attained contributions for a single year, instead these contributions have continued -r.C, In -net, they ha.-c been significantly Increased Cur budget for If.oO has been SIncreased by 50 over last year showing that cur industry believes In this Kxpcndcd Fcccarcb Program rnd is providing the funds to continue the work end to expand itn '-'. pe. '.bile these direct contributions to our program have been increased by 50, they do not truly reflect the cooperation and the contributions of cur member campers'c.. In isny, many cases our companies are providing technical information, expenai vc t r.U pedal experimental camples, and high epot research to contribute to the ,'ixiu: try ureriai. These materials, these dollars which do not chow In cur budget, the L;mc r.i.t! effort of their technical people, have all been provided for the good of the ndustry and to support and back up our research effort. Therefore, our research l edge tic probably Increased by a sun of 75^6 over last year although the dollars do nut clu.u directly. X have mentioned before that I have never seen an Industry which cooperates to the extent that our industry does. It Is truly remarkable and most gratifying to be able to tell you how extensive Is this cooperation, the sincerity v.th which the program Is supported, and the strong desire to keep cur metals modern tnd progressive to meet the challenge of today's competition and technical obsolescence. LIA21052 S.f.RADTiCE :" '' ' i ^urch hno stimulated interest in laboratories In I1 it- c..unu; r-ml ubr^.d In fact, the intcrect is world-wide and in turn our Infor mation is disseminated to virtually every country In the world. This exchange of information and participation again Increases the effectiveness of our research effort and our research dollars. Our Industry, In Its original objectives, agreed that, by and large, all our Information was available for the use of all to stimulate Interest and enthusiasm in lead and to Insure that the fruits of our research be utilized by all who are Interested. To date these objectives are being achieved and ve can take comfort that the information which we have developed Is being used effectively by our cooperating Industries. To disseminate this information, we have cade available our technical reports to Interested companies and laboratories throughout the world. We have issued our quarterly report which describes our research in seme detail and this n quarterly report Is mailed to the four corners of the globe. As I have mentioned before, this bread dissemination of our Information has stimulated an exchange of c.ormatlon and renewed Interest in lead. In addition, alnce our last report, our research effort haa also expanded to the four cornera of the world. We now have research under way In government laboratories, In our rernber company laboratories, in research organizations, and in universities. Investigations are under way In the United States, Canada, Holland, . Australia, and England. We have placed our research in those organizations which we feel con contribute'most to the furtherance of our materials and where we feel an effective Job will be done for us. Where there are research projects of related Interests, Information on the various projects Is exchanged between the participating laboratories. All of this research Is screened and approved by member companies, and despite the miles which separate our member companies, the cooperation, Interest, and enthusiasm hat been maintained during this past year, and we feel that precedence has been established for carrying this cn In the future. -3- mn'i' i i 'Nr. it fj ph i H jMujignw \J!X LI A21053 S. RADTKE Cur research covers the entire span of Industrial requirements--from Ovetullurglcal to chemical and to electrochemical applications. We have brokmour research Investigations dovn by the technical disciplines since each of the projects r.ny cover many markets, and therefore the technical breakdown as chemical Inetallur- ^ icnl, and electrochemical research. This has served our needs more effectively than if ve had attempted to break dovn our research needs by markets. On the other hand, ve do lr.cure that the developments from each of the technical areas are directed tovard solving the needs of the various markets for vhich lead and zinc and its chemicals are employed. Furthermore this breakdown has faclllted our screening, reviewing, and steering of the research. A significant portion of our research Is directed toward conducting funda mental research to provide us with new Ideas and new thinking about lead. Here ve have r.o immediate commercial objectives in view, although In many cases we can readily visualize that a successful progrea In any of these areas cay have economic signifi cance Furthermore a major portion of our research Is directed toward retaining present markets, and Improving the performance of existing products to meet eoic-etl- i.ii. A third i.aj^r portion cf our research monies Is concerned vitn finding new jerkett and ne-- uses for our materials to expand the over-all ccnsception of lead. !:/v set us look at the distribution of our research according to the break down discussed above. In our lead research, approximately 31.^ of our research dollars Is devoted to fundamental research. 68.6^ of our research dollars Is directed toward applied research. Here we have specific commercial objectives In mind to exploit our research dollars for economic advantage. To look at this another vsor, 31.VJ of our dollars Is concerned with fundamental research as I mentioned above, is directed toward retaining our present markets, to Improve our products and _ ic natnlain their cccpctitlve position. This can also be termed defensive research S c prevent the encroachment of competitive materials In our principal market areas. 0. r` u. cur research dollars Is directed toward, r.ew products to expand the uses , 'crd. n' lhd. vn Is quite logical. I'e feel that many of the present market -l- tus" r w w tin jiwpi i sn m m ii i m i i. u . , I i V. - ! H' 1 ' r r iiiwTirr,"T'*']n--n-r-it nntiurrmn------------ T~r*~--i------ it ri--rifTi----- J----------- 1------- T~ "i-------- .... ' S.P.RADTKE for lead will continue on their present basis and only critical areas need Investiga tion at this time. On the other hard, we are In need of new markets for lead to meet the available production capacity and the mining capabilities of our Industry. Let us now become specific and look at the research projects we have under way In each of the categories I have mentioned above. FUNDAMENTAL RESEARCH iP-8-60 - Fundamental Investigation of the Powder Metallurgy Process for Producing Lead Alloys (See Quarterly Report So. 4) LF-U-60 - A Study of Lead Base Alloys (See Quarter ly_ Report So. k) LP-g9-60 and U-3I-6O - Surface Characteristics of Lead and Lead Metallur gical Fellowship (See Quarterly Report Ho. 4) IP-11-60 - High Kcls3lon Lead Compounds (See Quarterly Report So. 4} LP-lfl-60 - Funda.-or.tal Study of Lead Organic Compounds (See Quarterly Report No. k) ~' LP-lU-60 and LP-gl-60 - Lead Fellowship Program In Ceramics (See Quarterly Report Vo. **) RESEARCH TO RETAIN OR IMPROVE PRESENT MARKETS lf-lg-59 ~ Continuous Extrusion of Cable Shesthlng (See Quarterly Report No. 1*) LP-26-60 - Lead Coated Steel Can Stock (See Quarterly Report No. <*) IP-12-59, LP-1^-59, 1P-20-59* LP-22-59 ~ Lead Fellowship Program In Ceramics (See Quarterly Report No. 4) IP-^hSO - Development of a Primer Paint Incorporating Lead Compounds and Water Soluble Vehicles' (See Quarterly Report No. 4) If-35-60 - A Fundamental Study of the Electrochemical Behavior of Lead In Acla Media tinder Cyclic Conditions Despite the fact that the lead acid storage battery has been known for years 8 and has had a very successful economic and technical history, little Is known of the fundamental behavior of metallic lead when It Is subjected to cyclic conditions In acid media, that Is when It becomes an anode at one time and a cathode the next. -5- `^^21055 8.P.RAJ5TXX Cooperating companies fraa the electric storage battery Industry hare felt that this would be a significant contribution to their Industry and, therefore we plan to undertake this program as a fundamental study but yet with direct economic significance This will undoubtedly be carried on In a university where It can be treated effectively as a fundamental study. ` IP-36-60 - High Speed Plating of Lead In project LP-26-60 discussed above concerning the production of leadcoated steel, we have considered the Investigation of many techniques for applying the lead cladding. We feel that a separate Investigation of high speed plating is warranted to provide a technique which would be competitive with the high speed tin plating lines. As we are looking for new approaches In plating technology, the study will be treated as a basic Investigation rather than as a pilot operation which the aforementioned project considers. The objective here will be to develop solutions with high throwing power 8 and laying down effective, pore-free lead coatings. We have considered placing this with a university or with a laboratory which will consider this as a fundamental Investigation. RESEARCH TO DEVELOP HEW MARKETS FOR LEAD LP-9-60 - Investigation of Metal-Fiber Reinforced Lead (See Quarterly Report Bo. 4) LP-7-^0 - Lead Asbestos Pads for Vibration Attenuation (See Quarterly Report Ho. 4) IP-I6-60 - Lead for Sound Attenuation In Architecture (See Quarterly Report Ho. 4) IP-10-60 - Lead Chemicals (See Quarterly Report Ho. k) LP-28-60 - Organolead Chemistry Ve soon hope to establish a program which will have both fundamental and Sapplied significance with the Quartermaster Research and Engineering laboratories In Natick, Mass, This program will be a corollary to our other research In lead chemicals 6- - ...................... . --v,. . LIA21056 S.F.flADnCE Wc have mentioned '-ef.re t,a<. < . cel that the entire chcniral industry hold* -'-.'Ui'..lertible promise for cur industry and thlG, therefore, is the basis for the Obroad coverage we are giving this area of investigation, the products arising frcr r.Ko research will be evaluated in the various laboratories of the Quartermaster facility, nd as ve mentioned in the introduction, this is part of a planned coopera tive venture in three separate laboratories; at Arthur D. Little, T.H.O. in Holland, ar-d the Cuartencaster laboratories. Ve feel that this program at the Quartermaster is of cpccial significance as cany of the needs of the arced services can conceivably be r.er Vy lead chemicals, in the fora of plastic materials for radiation shielding, for ..v.tericls with biological activity, funcidldal activity, and the like. Ve hope to initiate this program in the immediate future. To cu:xri:c this review of our Expanded Research Program, you will have noted that the rnjor technical spheres of interest are being covered by cur research. Our fundamental investigations ere providing new ideas and new information for us. BCur fundamental research has already contributed new knowledge which has stimulated other cccznerclol irr/estigetions. Ve ere carrying cut appropriate research to see that existing rackets ore maintained or at least that declines in sane of these critical mrkets arc stepped, ife are moving ahead in new areas which will provide, we feel, new markets for cur materials. It is a dynamic program, lccd is a modern r.ctal and will fled its use in ell conceivable areas fren missiles to aircraft to electronics, architecture, and the cany ether known areas for lead applications. Ic turn, with the development of new tecknicol information, ve hope to serve our Deny consumers and potential using Industries. All of this is being brought about through the wonderful cooperation and support of our center ccc.par.ics. Their dollars alone would be ineffective if it weren't for their enthusiastic support and their close participation. By our working together ve hope to serve 'ndustry in general as well as ourselves through research. 7 - ' :.< . LI A21057 i LEAD INDUSTRIES ASSOCIATION 0 BAST 4>m S T A KKT NKW YORK 17, H. Y. ACTUAL MTOT or TH8 SECRET ARY - TREASURER Tat TEE YEAH 1959 Since thl report marks the end of another decade. It seems appro priate, before reviewing our ovn recent activities, to take a searching look Into the past to see vhat has been happening to our industry. Many people have said that lead Is passe, that It is an old metal losing ground In our modem technology, that the lead industry has not kept abreast of modem developments and has been less than vigorous In protecting and de veloping markets. X think that such vlevo are not supported by the facts. Figure 1 charts the per capita consumption of lead In the United States In pounds since 1920. It con be seen that, despite the rugged peaks end valleys that occur over this LO-yeor span, the trend has been generally mildly upvard. In fact, the average per capita consumption In the 1950-59 decade vas 14.07 lb as compared vith 13.69 lb In the e<jually prosperous 1920-29 decade, a modest Increase. The disturbing factor Is that peak per capita consumption vas reached in 1950 at l6.4 lb and the trend has been generally downward in the last ten years. Also the peak per capita consumption for the four decades covered vas In the 1940-49 era at 14.60 lb. let there seem to be logical explanations for this, such as abnormal consumption during the var and postwar pipe-filling years and the Korean conflict. CVer the forty-year period, lead lost a big part of three major markets--white lead for paint, lead foil for cigarette packaging and lead sheathing for telephone cable. In at least partial compensation for these losses, a vhole new market was found in tetraethyl lead; and other markets, such as lead oxides, calking lead and solder, increased. The white lead market started Its decline In the twenties at almost th* sane time that the compensating TEL market began to develop. Foil re ceived its crushing blew as a result of wartime restrictions from vhlch, for econcmlc reasons, It baa never recovered. The loss of the cable sheathing market has been largely a development of the lost decade, stimulated by temporary shortages. In my opinion there is no reason vhy these last two losses will not eventually be compensated for by new developments Just as TEL compensated for the loos of white lead. In fact, you con see this beginning to happen with such uses as nuclear radiation shielding, sound and vibration at tenuating materials, plastic stabilisers, new pigments, and others. This, of course, can be accelerated by Industry action. Vr""'"v ' r : '- : -: : '' i N 227.02 tiIi  > %h w u m .e ; i .i^ v r LlA3i 058 _ -2- Annual Report for 1959 Thli bring* m* to the other criticism* raised, la icy opinion, unfairly. To find new markets for an old material 1* Mich different fret* finding then for a nav material. Unexplored areas are not so great and, even vhen an Important now market 1* found, It may simply replace an old one that boa become obaolete for technological or economic reasons. However, our industry has long recognised Its needs. It vaa five years ago, vben per capita consumption of lead vaa at the respectable level of 1U.7 lb, that our technical steering cccnltteo was established to guide a program of technical development to expand lead market*. Since then, outside experts have studied our research needs and other experts cur needs in certain market areas. Two years ago our Expanded Research Program was launched. Simultaneously our Industry Development Program was greatly enlarged. Ho one can say that the lead industry Is not aware of what It has to do to assure a prosperous future or has been lax or penny-pinching In establishing a constructive program. For n of this the loyal sup port of the membership and the foresight and courage of the officers and directors are to be commended. Tcu have Just heard a detailed report of our Expanded Research Pro gram. I'll now try to give ycu a broad view of cur other activities. I will not dwell on such routine but Important activities as statistic*. Information Bulletins, liaison with the many technical societies and government agencies, since they have been going on for year* and are continuing. Ve have also continued our promotional effort* In certain specific areas such aa paints, ceramics and construction. But, In addition, ve have taken strides In a new direction. To tie In with expended research, ve have attempted to make Industry take a different attitude towards lead and to Interest engineers In taking a new look at the solution of their many problems. By so doing ve hope that favorable results caning out of our research will get widespread attention throughout Industry, that others will do applied research with lead In the development of their products, and that thus ve will help to create new markets. At the same time we are continuing to foster the expansion of older markets. Our thinking la exemplified by the new slogan ve are now using, "Look Ahead vlth Lead." We want people to reallre that lead has Just as Important a place In modem technology as has the newest plastic or metal on the market, ftiat is why we often emphasize scoe glamorous new use of lead even though ve know It may never amount to a hill of beans tonnagevise. We have further expanded our ability to give technical service to Industry In the application of lead to solve its problems. Another engineer has been added to our staff to supplement this work. i i vt; i t > " 11 .. .......... w 'iii '.wn-nw . 1 wy*f i ff-i .Jgn it* f : -^ ^y,'l^ :: ' S. LIA21059 ) -3" Annual Report for 1959 We hare started a new advertising campaign In two leading design magazines--"Materials In Design Engineering" and "Product Engineering"-- vlth a combined circulation of ever 70/000 people. These eda are designed to emphasize the variety of lead's properties end the variety of Jobs it 1 efficiently performing for Industry today. In the same vein, we exhibited last year for the first tine at the Design Engineering Show end were favorably Impressed by the interest shown by design engineers, particularly In soce of the never developments In lead. Ve are building up our mailing list vlth the addition of many design engineers and are planning new direct mall literature of Interest to them. All In all, In 1959, through our direct mall and space advertising and publicity, well over 3,500,000 individual messages about lead were delivered to Industry. As an Illustration, let me cite one specific field of application-- the use of lead In the fora of lead-asbestos pads to prevent the trans mission of vibration, an application which we believe could eventually consume upwards of 50,000 tons of lead a year. Ve have not as yet gene all out In the promotion of this use because, as you have heard, ve have a research project in progress to develop a lot of unknown but badlyneeded engineering data. However, ve have featured such pads used in the foundations of the Union Carbide Building In tvo ads In "Engineering Sevs-Record," In an article In "Lead," and In several publicity stories which have been successfully placed. Similar pads were used In a new way on another New fork skyscraper--In this case to Isolate the vibra tion of a rooftop air conditioning cooling tower. This has been pub11 died In "Lead" and featured in tvo more ads la "Engineering SewsRecord" with a circulation of over 80,000. Both applications have also been featured in the two design magazines mentioned a few minutes ago. We also Issued a four-page brochure on the current usage cf these pads In buildings and circulated It to acoe 18,000 architects and engineers. And we have Just received approval of the engineers who designed these pads Into the air conditioning equipment to prepare an article for placement in engineering magazines which they will by-llne. They are 60 pleased with the first Installation that they have again specified the pads for another new office building at 43rd Street and Third Avenue, Hew York. All this has resulted In literally hundreds of inquiries cm this/ / one subject, not Just from the -building Industry but from almost any Industry you can name. Industry Is plagued ulth noise and vibration problems. Our engineers are personally following up many of these In quiries and are working vlth such organizations as IBM, Minnesota Mining and Manufacturing, Permacel, Cordo Chemical, Bar-Ray, U. S. Plywood, Carrier Corporation, the Mare Island and Hew York Naval Shipyards, national Association of Heme Builders Research Institute and several architects and engineering firms. If and when our research develops more of the technical answers we need, we will really be In a position to crack down on this use of lead. i. LIA21060 wkwi.iuip.'i, ' i hi,i* -V- Annual Heport for 1959 " cite the foregoing in detail merely to give you an example of our modus operandl. This procedure can and doe* apply to other uses. Bow, before sutsonriting our 1S59 activities briefly, I vant to stress one other important phase of our activities. That la our health and safety work. I can not cverecpkajiita it* importance. The toxicity of lead pose* a problem, that other ncnferrous Industrie* generally do not have to face. Lead poisoning, or the threat of it, hurts our business in several different vays. While it is difficult to count exactly In dollars and cents, it is taking money cut of your pockets every day. In the first place, it means thousands of items of unfavorable publicity every year. This is particularly true since most cases of lead poisoning today are in children, and anything sad that happens to a child is meat for newspaper editors and is gobbled up by the public. It makes no difference that it is essentially a problem of slums, a public welfare problem. Just the same the publicity hits us vhere It hurts. Secondly, it means that we are often subjected to unnecessarily onerous regulations, either in the use of our product or in its labeling. This may mean either an added expense in labeling or in control equipment in your or your customers' plants. It may even mean that your product won't be used at all because your potential customer doesn't vant the problems that the use of lead may involve. What are ve doing about al1 this? We are working closely with governmental health authorities, childhood poisoning centers, the medical profession, and organizations like the American Standards Association, the Paint, Varnish and Lacquer Association and the Manu facturing Chemists Association to prevent enactment of unfair and oneroue legislation and regulations. In fact we were largely responelble for the increase of one-third in the maximum permissible concentra tion of lead dust and fume* that became effective a couple of years ago. We make every effort to convince industry of the safety of using lead if properly handled. We attempt to correct unfavorable publicity. You may recall that last year I told you of a popular TV program baaed on lead poisoning in a young boy, derived in an impossible way, and our effort* to have the film withdrawn. At that time our negotiations had not been concluded. I am pleased to report that that incident had a happy ending. The producer completely changed the sound track to make no reference to lead. There is a lav suit now pending in Milwaukee in which an apartment building tenant Is suing the owner for $00,000 damages for alleged lead poisoning from water passing through the building's lead service pipe. Success of a suit like this could veil mean the end of lead services not only in Milwaukee, but in Chicago and many another city, amounting to thousands of tona of lead & year. We are working closely with the defense and, although the case does not come to trial for sane months, our latest information is most encouraging. --,.rvr- 1 '?-"f. *wjgnf*p . Tear ii b - *<?* **** LI A?1061 '* ' ' -5- Annual Report for 1959 Thar it sound reston to believe, but there are Insufficient fact* available to prove, that soma lead compounds are core toxic than other*, yet public authorities place the sere lluitatlon* on all lead ccapound*. Thus today ve believe that unnecessary restrictions on the use of lead chromate color* In paints and cn lead silicates in porcelain enamel* sire holding back the use of thousands of tons of lead a year. In ouch the sane vay ceilcal authorities In the automotive industry are opposing the use of certain lead points that could also mean several thousand tons of lead a year. I an of the firm opinion that, although the cost cay be high, ve must enter into a medical research prograa to develop the facts on the relative and absolute toxicity of various lead cocpounds. I feel that this perhaps should be a continuing program to develop the sane information about new lead cccpcuads aa they are developed and markets are found for then. In fact a proposal for such a study 1* being presented to your Board of Directors today. I hope you will agree with me that our health and safety activities are cot Just an altruistio public service. They can also nean Just aa cuch in dollars and cent* to you as any market or product development or research program can. Hov, to summarize: ADVEgTISHO 1. "lead " This (juarterly magazine, containing an average of six articles per issue, vaa nailed four times during the year to a list of over 50,000 names, resulting in acre 1,200,000 individual messages on various uses of lead. 2. "Soldering Manual." This 170-page book, prepared by our Solder Comlttee and published by the American Welding Society, came off the press and copies vere distributed to members at reduced cost. 3. Antivibration Pads. A four-page brochure, "Current Practice in Isolating Buildings from Vibration vith Lead-Asbestos Pads," vss prepared, printed and distributed to 18,000 architects, engineers and others in the construction industry. k. Lead Hygiene Conference Proceedings. These proceedings of the Hygiene Conference sponsored by LIA late in 1953 vere published in full in "Industrial Medicine and Surgery," vith a circulation of about 10,000 industrial physicians. It vaa later reprinted by LIA in an 82-page bock for distribution by the Association. 5. "Red Lend Technical Letter Wo. lA." Havy approval of this letter, vhlch deals vith a nev red lead primer for ships, tested in cooperation vith the Havy, vaa received and it vas printed and circulated to about 10,000 people interested in anticorrosive paints. 6. Supplements to "Lead in the Ceramic Industries." Tvo nev supplenenta, one tvo-page and one eight-page, vere printed and distributed to all vho had previously received the bock. In addition the book itself vas reprinted as the original supply of 6,500 copies vas depleted. . a mi;;!) -l LIA21062 6- Annual Report for 1959 7. Storage Rettery Brochure. A 'brochure promoting the use of le vdicld battery powered Industrial trucks as compared vith gasoline powered trucks was prepared. Since the first of this year, 10,000 copies have been printed for our distribution, but so favorable has been its recep tion by Industrial battery manufacturers that these companies hava ordered Bore than '3^,000 additional copies printed and distributed at their expense. 8. Architectural Fiver. A four-page flyer describing the sheet lead gutter linings on a nev building at Duke ttdverslty was printed and dis tributed to about 18,000 architects and builder*. 9. Space Advertising. The following advertising schedule ran last year in trade and technical publications: Publication Pages Circulation Subject Materials In Iteslgn En gineering Product Engineering Enginie* ering Kemvs-Rmecord 6 7 6j Marine Engineering/Log 6 Eulletln of American Ceramic Society 6 Ceramic Industry 6 Ceramic Age 6 Ceramic Bevs 3 Brick A Clay Record 6 Metal Product Manufacturing 6 31,000 1:2,000 81,000 61,000 16,000 8,000 6,000 8,000 4.000 5.000 15,000 Propmerties somd us es Metallic lead for construction Red m leamd primm ers Leamd cerammics omf am ll kinm ds m m wmw m m mm m Lead glares for clay products Leaded porcelain enamels CXir space advertising this year vill result in a gross circulation of 212,000 and an individual message total of almost 2,000,000. 10. Advertising Inquiries. The Association processed sene 5,000 inquiries of all kinds in 1959 es a result of all forms of advertising, but the important thing is the quality rather than the quantity of these inquiries. Practically every important company and governmental agency is represented by top engineering personnel, as veil aa most of the architectural and engineering firms vbo do the largest volume of business. 11. Exhibits. LIA exhibited at four Important national trade shows In 1559 with combined attendance of between 75,000 and 100,000 Industry people. They were the Design Engineering Show in Philadelphia, the Chemical Show in Hew York, the Heme Builders Show in Chicago, and the Plumbing Contractors Show In Miami. 12. Sweet'8 Catalogs. We again had two four-page catalogs la Sweet's Architectural File and In Sweet's Light Construction Pile. They covered sheet metal work for buildings and lead plumbing. Combined cir culation Is over 40,000. LI*2 1063 1 . -7- Annual Report for 1959 PUBLICITY 13. General. General articles on lead, its uses and properties vera prepared and published in "Industrial and Engineering Chemistry," Lykes Bros. Steamship Company's bouse organ, New York purchasing Agents' "Re view," and "American Metal Market's" special lead-zinc lo6ue. The first, the annual review of technical developments in "Lead and Lead Alloys," was reprinted in a quantity of 5,OCO for cur own distribution and ve are advised that It is also being reprinted in England. The Purchasing Agents' "p.cviev" article was reprinted for use in replying to school and general inquiries. ll. Ceramics. Two articles on lead in ceramics were prepared and published la `'Ceramic Industry." Another, based cn research sponsored by us at Rutge -s, appeared in the "Journal" of the American Ceramic Society and was reprinted by LLA. A Japanese paper on lead In ceramics vas translated and reproduced for our own limited distribution. 15. Chemical Construction. A paper on "Lead-Acid Brick Construc tion," previously presented by "us before the Rational Association of Corrosion Engineers, appeared in "Corrosion" and vas reprinted. CUr own "Specifications for Lead Chemical Drainage Systems" were reprinted in "Air Conditioning, Beating & Ventilating" and "Actual Specifying En gineer," and our article on lead constructed scrubbers appeared in "Chemical Processing." LIA reprinted an article cn lead-lined wooden tanks from "Chemical Engineering" for its own distribution. 16. Paints. Articles on lead paints were prepared and appeared in "Encyclopedia Americana," "American City," "Mass Transportation" and "Maintenance." The report presented at the 1959 Annual Meeting on "Rev Developments in Lead Paint Technology" appeared in full in "American Paint Journal." 17- Architectural. Our article on lead as a concrete joint filler was reprinted by the Portland Cement Association for their distribution. A chapter on lead was prepared for a new book, "Materials for Architecture," being published by Reinhold Publishing Company. 18. Miscellaneous. An article cm nonsacrificial lead anodes vaa reprinted free "Corrosion" for our distribution. A chapter on lead coatings vas prepared for the "Encyclopedia of Engineering Materials and Processes." An article on lead shielding for portable atomic reactors was prepared and accepted by "Materials in Design Engineering" but has not yet appeared. A paper on new uses for lead powder vas presented before the annual meeting of the Metal Powder Industries Federation and later vaa printed in the "Proceedings" of tbst meeting. A chapter on solder vas prepared for the American Welding Society "Welding Handbook" and another for a book, "Modern Materials," to be published by the Academic Press. ,,i *>- iIWWiy *<* ^Kg. LI A2106A -8- Annual Report for 1959 MISCELLARS0U3 19. Ir.forcatIon Bulletin. Eight bulletins vere circulated to mem bers to bring to their attention nev development* and Interesting article* about lead that they eight not otherwise have seen. 20. Annual Reviews. Annual review articles on lead vere prepared for "Engineering ar.d hiring Journal," "Steel," "Induatrlal and Engineer ing Chemistry," and the "Year Book" of the American Bureau of Metal Statistics. 21. Addresses. Addresses on lead vere delivered before the Colorado Mining Association and graduate student* of the Kevark College of En gineering. g2. Annual Meeting. A successful annual meeting vaa held in Chicago in April, one session as usual being held Jointly vith the American Zinc Institute. 23. Statistics. Monthly statistics covering sales of pig lead in the United States by primary producers, physical shipments of pig lead, manufacturers1 stocks of pig lead, shipments of vhite lend, red lead, litharge, 60lder, bearing metals, antlnonlal lead products, type metal, extruded products, rolled products, and miscellaneous metal products, and nine production of lead vere circulated to members. 2b, Meetings. Meetings of ether organizations in vhich LIA staff participated included AIMS, American Mining Congress, American Society for Metals, American Society for Testing liaterlals, American Ceramic Society, Porcelain Enamel Institute, Structural Clay Products Institute, the Signal Corps Battery Conference, Association of American Battery Manufacturers, Rational Association of Corrosion Engineers, American Ruclear Society, American Industrial Hygiene Association, American Public Health Association, Industrial hygiene Foundation, and American Medical Association. 25. Committees. Staff members are serving on many committees that have to do vith lead, including the American Standards Association, Rational Association of Corrosion Engineers on nonsacrlficlal anodes, ASTM on lead for radiation shielding, American Welding Society on Bolderlng and brazing, American Industrial Hygiene Association, Rational Safety Council and Philadelphia Health Department. 26. X-Ray Shielding. LIA prepared a vallboard panel half covered vith sheet lead and presented it to the Rev York City Health Department to be used to demonstrate the effectiveness of lead X-ray shielding in the Department's drive for more and better shielding in doctor*' and dentists' office*. 27. Lead Plumbing Connections. Because of the graving popularity of vall-hung vater closets for residences, LIA designed a nev fixture for the use of lead connections in such instances. Several manufacturer* have adopted the nev design principles, which opens this market to lead since previous designs vere for other pipe material*. LU2 1C65 t -9- Annual Report for 1959 28. Yellov Traffic Harking Paint. LIA started a drive for the use of yellov paint, particularly for edge-striping highways, because the yellcv paint is based on lead chromate, and white contains no lead. It Is too early to know vhat progress can be made. 29- Lead Anodes. Information was guttered on several actual In stallsIlona of nonsacrlflclal lead anodes for corrosion protection for later use in advertising and publicity. 30. Plumbers' Aonrentlce Contest. LIA supplied a Judge of lead work at the annual national plumbers ` apprenticeship contest at Purdue University. It also awarded Government Savings Bonds to the three best lead workers and supplied an instructor to give the plumbing teachers a refresher course in hov to teach lead work. 31- "Lead Work for Modern Plumbing." Searly 900 copies of this textbook were sold during 1959. This bock will now go into its fourth printing, with 11,000 copies having been distributed and the entire cost recovered by the Association. 32. Ceramic Luncheon. LIA sponsored a luncheon during the annual meeting of the American Ceramic Society. Guests were the heads of ceramic departments of colleges at which LIA is supporting research fellovshipe. o The purpose was an exchange of views on ceramic research and development* between the college personnel, our Ceramics Technical Coralttee and LIA p research and technical service personnel. u 33- Paint Test A new test program was started by the Pigment* Technical Committee on anticorrosive primers in sea water and fresh water. 31*. Sheet Lead Flashing. Ca request of the architects, specifica tions were prepared for sheet lead flashing on a new state office build ing in Indianapolis. The lead has since been Installed. HEALTH AND SATETTf i 35- Air Quality Standards. At the request of the California Stat* Department of Health, we are cooperating with them in a project looking to the establishment of standards of "ambient air quality" for a wide range of potentially toxic materials. Including leed. 36. Welding Lead-Painted Steel. As a result of somevhat similar work done elsewhere, we have reopened discussions with staff member* of the Harvard School of Public Health relative to the possibility of sheaf ing that the hazard involved in welding lead-painted steel is substan tially less than had been thought. 37- TV. Our efforts to have an erroneous TV program, written around an impossible case of lead poisoning in a young boy, withdrawn were successfully concluded vhen the producer revised the entire sound track to remove any reference to lead. 9f&*: ^-^ria'>iiew ^niwrf^^FWM LI A2 1 066 f -10* Annual Report for 1959 I 38. Lead In Automobile Exhaust Gases. Periodically In recent year* ve have had. to combat the contention that lead emanating from the tall i pipes of motor vehicles constitutes a menace to the public health in j urban areas. That cur part In this effort has been in some degree pro ductive seen* Indicated by the fact that. In a recent articlo on air pollution by motor exhaust gases, published by the American Medical Asso ciation, no mention vhatsoever Is cade of lead. 39- Legislation. The 1959 state legislative sessions terminated with a number of bills, dealing mostly vith vanning labeling, in reason ably satisfactory status. These Included bills in California, Illinois, Indiana, Montana, New Jersey and Washington. AO, Childhood Lead Poisoning Because of Its 'aalfieatlons and laportonce. It is Impossible to do Justice to the problem of childhood lead poisoning in a single paragraph. Both in the breeding of adverse publicity, vith Its inevitable 111 effects on sales, end as a source cf n but in soluble problems, it continues to be o-ur major "headache" in the health and safety field. Suffice It to say that ve are In constant touch vith all industrial, clinical, pediatric, toxicological, technical and govern mental agencies known to be usefully Interested, that all nev appxroocbe* of any promise are followed up, end that the entailed consumption of time end effort must In all probability continue until our older cltie* are rid of the slums and the Ignorance which are Its parents. b START Ul. Staff Work.. The staff vas enlarged during 1959 and nov totals 1J. A chemical engineer vith extensive technical vrltlng and editing experience vas added, as veil as tvo secretaries. This vas necessitated by the en larged volume of promotional and technical service work. During the year David M. Borclna, assistant to the secretary, became the fourth employee and the second man on the staff with 25 or more years' service vith LXA. In addition to vork previously outlined, the staff rendered personal ser vice in the field in such areas as semiconductors, anodes, pleroelcctrics, porcelain enamels, plnts (particularly for hlghvay structures and markers), peorlescent pigments, radiation shielding, chemical construction, plumbing and sheet metal vork, sound and vibration attenuation and other*. i k2. Headquarters. In closing, nay I call your attention to the fact that about May 1 ve vlll move to larger and more adequate quarter* at 292 Madison Avenue, only about a half block froo our present location. We hope you will visit us. Respectfully submitted. Secretary i <f>H '.t'v L IA2106 7 T, i | 1 u.S. PER CAPITA CONSUMPTION OF LEAD 1 Ho u n d s 17 16 k 'f f\ * 15 14 v 1 V 13 .. O 12 11 10 9 8 7 6 5 ear 1920 1925 1930 1935 1940. 1945 1950 1955 1960 i nyw<u iiw i iginpffp m '!.i "ji|ii.T",|>"wiij|gi.nwrill*j>r!|j'>'i1l,.|TT^'i^T'iiTimTrr1'-----r--ini-n-)-r n;- -rr>-^ ---nr-T--1--n--1--1..... . 1 1 1 ,-rnrr`r-"Mr-r--i vi--i-- -- ^~-j-r*r`'r---nrr~,r,~~ ' LU2lOfc^ MEMBERS OF THE LEAD E.DU3TRIE3 ASSOCIATION April i960 Allied Sslelting Corp. Alpha Metals, Inc. American fetal Climax, Inc. American Smelting & Refining Co. American nine. Lead & Smelting Co. The Anaconda Co. The 0. A. Avrll Co., Lead Products Div. 5116 W. Lincoln Ave. Milwaukee l4, Wls. Bex 31*, Bergen Station Jersey City 4, H.J. 1270 Ave. of the Americas Rev York 20, H.Y. 120 Broadvay Rev York 5, H.Y. Paul Brovn Bldg. St. Louis 1, Mo. 25 Broadvay Hew York 4, H.Y. Lsngdon Fara Rd. & Seymour Ave. Cincinnati 12, Ohio Bers & Co., Inc. Broken Hill Associated Shelters Proprietary Ltd. Broken Hill South, Ltd. The Bunker Hill Co. Ashland & Levis Sts. Collins House Box 19**C, GPO 660 Market St. Philadelphia 24, Pa. Melbourne Cl,Aust. Melbourne, Australia San Francisco 4, Cal. Cambridge Smelting Co. Cerro de Pasco Sales Corp. Circle Wire & Cable Co. The Consolidated Mining and Smelting Co. of Canada, Ltd. Consolidated Smelting Corp. 100 Pacific St. 300 Park Ave. 5500 Maspeth Ave. Box 1030 Place d'Armea V7OO E. Devada Cambridge, Mass. 5ev York 22, H.Y. Maspeth, L.I.,H.Y. Montreal 1, Canada Detroit 3k, Mich. Day Hines, Inc. Delco-Remy Dir., General Motors Corp. Dickson Weatherproof Hall Co. 2401 Columbus Ave. Box 590 Wallace, Idaho Anderson, Ind. Evanston 4, HI. The Esgle-Picher Co. The Edlcv Lead Co. The Electric Storage Battery Co. Ethyl Corp. Evans Lead Div., Rational Lead Co. American Bldg. P.0. Box 1936 Box 8109 100 Park Ave. Box 1467 Cincinnati 1, Chlo Columbus l6, Chlo Philadelphia 1, Pa. Kev York 17, H.Y. Charleston 25, W.Va. Federated Metals Div., American Smelting & Refining Co. Aaron Ferer and Sons Co. The Firestone Tire & Rubber Co. The Flesra Lead Co., Inc. 120 Broadvay 101-19 S. 8th St. Box F, Firestone He. 52-01 - 31st PI. Bev York 5, H.Y. Cteaka 8, Heb. Akron 17, Ohio Long Island City 1, H.Y. Gardiner Metal Co. Olaser Lead Co., Inc. Ooldaaith Bros. Div. of Rational Lead Co. 4820 S. Campbell Ave. 31 Wyckoff Ave. Ill N. Wabash Ave. Chicago 32, HI. Brooklyn 27, H.Y. Chicago 2, HI. Banaond Lead Products, Inc. HcLa Mining Co. 5231 Hofaman Ave. Hammond, Ind. Wallace, Idaho Loperial Type Metal Co. ' International Smelting h Refining Co. (Anaconda Sales Co., Agents) 3400 Aramingo Ave. 25 Broadvay Philadelphia 34, Pa. Hev York 4, H.Y. Associate Member 1 iHaf!1: L 21069 -2- Aprll, i960 u I Knapp Will, Inc. Lead Product8 Co. Inc. Lucky Friday Silver-Lead Mine* Co. John R. MacGregor Lead Co. Metalead Products Corp. Murdock Lead Co. Rational Lead Co. Hew Park Mining Co. Kevnont Mining Corp. North Broken Hill, Ltd. Olin Kathieson Chemical Corp. Pend Oreille Mines It Metals Co. Phelps Dodge Copper Products Corp. Price Battery Corp. Revere Copper It Brass Inc., Foil Div. River Smelting & Refining Co. Rochester Lead Works, Inc. John A. Roehllng's Sons Div., The Colorado Fuel U Iren Corp. St. Joseph Lead Co. Shattuck Penn Mining Corp. Societe Miniere et Retallurgique de Penarroya Sunshine Mining Co. United States Smelting Refining and Mining Co. The Victory White Metal Co. Eymaa Viener Si Sons Vulcan Lead Products Co. Western Lead Products Co. White Metal Rolling h Stamping Corp. The Zinc Corp. Ltd. 23-15 Borden Ave. Long Island City 1, H.Y Box 1341 Houston 1, Texas Wallace, Idaho 4520 W. 15 St. 2901 Park Blvd. Box 5298 Chicago 23, 111. Palo Alto, Cal. Dallas 2, Tex. 111 Broadway 300 Park Ave. Box 1903R, CPO New York 6, II.T. Kcetley, Utah Hew York 22, H.Y. Melbourne, Australia East Alton, HI. Old Natl. Ek. Bldg. 300 Park Ave. Spokane 8, Wash. New York 22, H. Y. Hamburg, Pa. 196 Diamond St. Box 5755 330 Exchange St. Brooklyn 22, H.Y. Cleveland 1, CSilo Rochester 8, H.Y. 640 S. Broad St. Trenton 2, H.J. 250 Park Ave. 120 Broadway New York 17, H.Y. New York 5, H.Y. 12 Place Vendome Paris 1, France West 300 Mission Ave. Spokane 1, Wash. 62 William St. 6l00 Roland Ave. 5300 Hatcher St. 1545 W. Pierce St. P.0. Box 2291 00 Moultrie St. Box 384D, GPO New York 5, H.Y. Cleveland 27, Ohio Richmond 5, Va. Milwaukee 4, Wls. City of Industry, Cal. Brooklyn 22, H.Y. Melbourne, Australia Associate Member ............. .. ' si,- ... "W ' < /-a ?0 'J HASKINS a SF.LLS CCTriCO ^VRUC ACCOUNTANT* TWO 3ROADWAT NEW YOHK4 f-terch 9, I960 i | t ACCOUNTANTS* .|-| II 1Ol I IIPI r TINIO *--N Lead Industries Association: We have examined the balance sheet of Lead Industries Association as of December 31, 1959 and the related state ment of income, expenses, and reserves and supplemental schedules for the year then ended. Our examination w&o made in accordance with generally accepted auditing stand ards, and accordingly included such testa of the accounting records and such other auditing procedures as ve considered necessary in the circumstances. In our opinion, the accompanying balance sheet and statement of income, expenses, and reserves and supple mental schedules present fairly the financial position of the Association at December 31, 1959 and the results of its operations for the year then ended, in conformity with gen erally accepted accounting principles applied on a basis consistent with that of the preceding year. I ' \ ! y.;v- a.'":'- SNaW^r''' ATSiwa. ig-.~ LI421Q7J b a l an c e s h ee t , d e ;? t t -'.= n, 1959_______________________________________________ A_33 CASH: Pension Fhnd savings bank deposits................... Other (Including savings bank; deposits, $`*1,818.60).................................................................... $122,805.09 206,591.1*3 Total cash................................................... $329,796.52 ACCOUNT'S RECEIVABLE.......................................................................................... 860.83 ADVANCES P0R TRAVEL EXPENSES.................................................................... 2,175.00 AIR TRAVEL DEPOSIT............................................................................................ 925.00 TOTAL........................................ $333,257.35 LIABILITIES AND RESERVES ACC0UNT3 PAYABLE................................................................................................. RESERVES: . Employees Retirement and Pension Plan Fund............................................. Ordinary Fund................................................. Health and Safety Fund............................................... Industry Development Fund........................................ Expanded Research Program........................................ $122,805.09 51,392.70 16,775.29 93,929.70 92,888.62 Total reserves......................................... $ 6,016.00 327,291.35 TOTAL........................................ $iw3i in3i3it,2i ri57ii.3nm5-- NOTES: (1) The cost of furniture, fixtures and equipment has been written off to expense. (2) The employees retirement and pension plan fund reserve is based on an actuarial report and' covers both past service and current C03ts. ywwuu * 1 \ -. Ul\T) TTCTSTRISS ASSOCIATION S' ^TCxrT OP 7 NCOME, EXPENSE^ AKD RE3EHVI3 MX! THE YEAR K.'CSD DECEMBER 31. 1953 TOTAL ORDINAHY Fill "HEALTH ` AND SAFETY FUND - INDUSTRY CEVELon<E:;T FUND .- EMPLOYEES j &t ik k k e s t AND IrliSION FLAN r*JItD INCOME: Membership assessments........................... ................ Transfers between funds........................... ............... Interest on saving bank deposits................ Miscellaneous (including sales of publications)............................................................ Total Income...................................... EXPENSES: Salaries anu payroll taxes.................................... Hc.it and light............................................................... Office supplies and services............................ Travel................................................................................. Association dues........................................................ .. Entertainment and luncheons.................................. Meetings (net of fees $1,065.00)....................... Telephone and tele^aph.......................................... Bocks and subscriptions.......................................... Group life insurance................................................. Printing - net......................... ..................................... Mailing............................................................................... ?->2t program................................................................... Legal, accounting and consultation fees.... Pension plan contributions.................................... Conventions and exhibits......................................... Furniture and fixtures............................................. Proceedings of hygiene conference.................... Miscellaneous................................................................. Cost of publications, not (see Schedule A). Advertising and publicity (see Schedule B). Research projects (see Schedule C).................. Expenses - net.................................. EXCES3 OF INCOME (EXPENSES) FOR THE YEAR......... RESERVES, JANUARY 1, 1959........................................... $568,193.00 5,320.30 1,179.98 574,663 .28 156,529.84 IS,177 .29 5,193.77 35,813.00 1,197.25 2,821.86 3,955.06 3,107.11 1,113.61 1,118.30 404.79 9,322 .73 1,054.79 2,055.00 2,350.00 12,529,SS 3,521.97 3,155.77 9,755.09 41,326.59 53,486.77 129,495.15 46S ,4J4.79 85,253.49 241,987.86 $91,673.00 (33,279.12) 825.91 317.53 59,536 .82 26,088.26 6,570.25 2,997.95 5,630.63 120.00 896.15 2,989.63 1,308.26 173.33 1,078.96 909.79 2,119.17 2,021.10 2,670.91 56,008.39 3,528.93 47,814.27 $29,250.00 530.92 24,780.42 16,890.31 963.01 2,360.06 201.00 395 .23 270.42 291.58 365.73 175.00 3,155.77 2,489.34 27,007.45 (2,227.03) 19,002.27 $191,941.00 857.45 192,798.45 86,815.78 5,000.00 20,320.89 707.00 1,580.98 1,200.01 693.90 426.92 1,613.39 1,059.79 1,230.00 12,529.55 9,993.72 91,326.59 53,986.77 232,379 .29 (39,560.89) 83,010.54 RESERVES, rXCFTBER 31, 1959...................................... $51,392.70 $16,775.29 $ 93.929.70 ( ) Denotes red figure. NOTE: Administrative expenditures in the Expanded Research Program art paid to American Zinc Institute, which handles the accounting for the program. $ 9,029.12 3,969.97 12,993.59 12,993.59 109,811.50 $122,805.09 EXPANIED RETEAECH PhOGFAM Tnote $289,579.00 2897579.00 26,735.99 1,607.09 2,233.31 7,^: .42 119.25 913.87 197.63 (39.09 595.17 650.00 2,350.00 1,500.37 151.12 129.995.15 179,039.66 110,539.39 (17,650.72) $ 92,863.62 4i LIA21073 1 i ! ; j j j ] | I LEAD INCUS srs*>,va**rri-4: s~ ALJE [ON SUFPIEMEN'.'AL SCHEUULE3 FOR Thu YEAH REED'D DEEPEST! 31, 1953 COST 0? FUEL!CATIONS, NET 3CIEDUI.S A "Lead*1........................................................................................................................ "Lead in the Car&rr.tc Industries" supplement (including $3,300.00 provided for in 1953)........................................................ Red Load technical letters.......................................................................... Sweet'3 Catalog.................................................... Flyer - American Artisan............................................................................... Flyer - Anti-Vibration Folder.......... ........................................................ Flyer - Industrial Batteries..................................................................... Soldering Manual................................................................................................. Reprints............................................................. $19,150.56 8,003.42 1,287.52 6,318.00 523.21 780.83 2,500.00 428.99 2,320,06 TOTAL........................................ $ 41,326.59 SCHEDULE B ADVERTISING AKD PUBLICITY ,, . Advertising apace: Product design.........................................4-- ........................................... Construction.............................................. Pigments....................................... Ceramics................................................... ................................................. Total................... .'......................................... Advertisingproduction................................................................................... Publicity................................................................................................................ TOTAL.............. ......................... $ 7,992.75 4,841.25 11,264.83 10,649.50 34,768.33 9,876.93 8,841.51 $ 53,486.77 SCHEDULE C RESEARCH PROJECTS Cable sheathing - John Robertson...................... Heat emlsslvlty - New York University.......... Lead alloys - Armour................................................ Powder metallurgy - Rensselaer.......................... Ceramics................... ~............ ....................................... Reinforced lead - Armour........................................ Lead chemicals - A. D. Little............................. Lead - cemented materials - Battelle............ Vibration attenuation - Lessells & Assoo.. Sound attenuation - Bolt Beranek & Newman: Miscellaneous research................................... h... TOTAL $ 9,426.84 8,200.00 19,086.54 3,120.89 27,100.00 20,000.00 34,289.21 243.04 7,219.88 724.54 _____ 84.21 $129,495.15 ! 9, i> r r. IIW.8WMiHP LI A 2107 6 LEAD INDUSTRIES ASSOCIATION i ] 60 CAST 42n d STRUT i NEW YORK 17, N. Y. \ i STORAGE BATTERIES - TEAR i960 * C. Herbert Allen Vice-President, Vitalic Battery Company and Allied Battery Co,, Dallas, Texas President, Association of American Battery Manufacturers, Incorporated I hope rcy estimates of lead consumption by the U. S. battery lnud3try will be of seme benefit to you. I assure you I*ve given the subject much study in an effort to make cy report as accurate as possible, I have read copies of several previous reports given to you by past Presidents of the Association of American Battery Harmfacturera, and I can appreciate how they felt about the responsibil ity of forecasting lead requirements for the entire battery induetry. There are several factors which are producing a change in lead requirement* by the battery manufacturing industry. These changes, in some cases, cannot be accurately forecast. First and perhaps of greatest importance at the present time is the fact that sone manufacturers of very popular automobiles changed over to a 12 volt systeta on some of their 1953 models. By 1956 practically all American automobiles being manufactured were equipped with 12 volt systems. Present day twelve volt batter ies use more lead than do eix volt batteries. It should be remembered, however, that cany of the 6 volt batteries now being sold are for older model cars, and the average person who buys a battery for an older model car does not spend as much for quality as does the average buyer of a replacement battery for a newer model car. Now that many of the 12 volt batteries being purchased are for re placement purposes in automobiles that are three or four years old, there has been a drop in the lead content of the average 12 volt replacement battery. Lead for 12 volt Compact car batteries is averaging rather close to the lead used in average 6 volt batteries. Present indications are that 12 volt batteries will last longer than 6 volt batteries. It Is certain that performance and reliability have been improved. These observations are based not only on reports received from dealers, but also on a stut^r made of average battery age at the tine replacements are found necessary. There was some thinking at first that 12 volt batteries would not last as long as 6 volt batteries, but I believe experience is now proving otherwise. Corrective measures have been taken to eliminate the early problems that existed. Auto mobile electrical systems, le., voltage regulator, hold-do*ms, etc., have been designed to assure better maintenance-free service, even under adverse operation condition*. ' Presented at the 32nd Annual Meeting, Lead Industries Association, St. Louis, Mo., April 6-8, I960 i | U!WM,JK. ji N 227.03 8PSWPfe^t^TI-!l111'-!-111- ,-IIT~r.~]-- - i'm t -----------n--r------- -- i IT " -- LIA21075 .*1 ) Ur. C. Herbert Allen -2- Storage Batteries - Tear I960 Second -- Statistics show that all batteries, even six volt types, are now lasting longer than they were five to ten years ago. This Increase in battery life can be attributed to better manufacturing methods, and also to the avail ability of better raw materials than were available ten or even five years ago. The reduction in antimony used in battery grid metal helped improve battery lift considerably. Where several years ago the antimony content was 9? up to 13? by weight of the grid metal, the percentage now generally used la 7 1/2? or lower. This change greatly improved the charge retaining characterietlcs of a lead acid atorage battery. Corrosion resistance has also been improved by not only the re duction in the amount of antimony used, but by the use of other constituents la the grid metal and also through changes made in casting the grid metal. The reduction in antimony used in batteriea has, I understand, created son* problems with smelters where battery scrap is recovered. Many scrapped batteries being put through smelting operations have grid metal composed of 9 to 13? anti mony. With most battery manufacturers buying a lower antimonlal lead grid metal, the antimony recovered from the smelting of old batteries piles up because more is being removed from the scrap than is being purchased by battery manufacturers. In a few Instances smelters offered lead having a higher antimony content than was specified at prices applicable to the lower specified antimony content. They perhaps felt the higher antimony would be welcomed by battery manufacturers be cause of better casting qualities, and since it appeared to be taking on the aspects of a "white elephant", soma were willing to dispose of the recovered antimony at the price of lead. That, of course, would have defeated the purpose for which the antimony content was reduced. The reduction made in antimony used in grid metal was not the result of an economy move. Actually batteries made with Ij l/2% antimonlal lead alloys cost more than do batteries cade using say -- 9% antimonlal lead alloys. The slower rate of casting lower antimonlal lead grids results in a higher labor cost, which more than offsets the slight decrease in the cost per pound of the alloy. There is also a slight increase in the resulting weight of the grids when lower antlmonlal lead alloys are used. The accumulation of high antimony dross by some smelters will undoubtedly be eliminated in the near future, if the situation has not already levelled off, when the bulk of the batteries being scrapped contain lower antimonial lead grid metal. The lower antimony content affects the value of Junk batteries as you well know. Third; it has been possible to reduce the quantity of lead used in batteries because of newly designed machinery which casts lighter weight grids. Ten years ago the use of lighter weight grids meant that grid corrosion during battery service would result in reduced battery life. Now the more corrosion-resistant grid metal and improved manufacturing processes have resulted in increased battery life. Competition is beooming keener every day and economy measures must, of necessity, be taken in every manner possible. A fourth factor also will have a bearing on the amount of lead used in the future per average battery. Development work currently in progress has as its objective the obtaining of more complete utilization of the lead oxide active : w m *s"*1"***:!*'W^ LIA 21076 * i Ur. C. Herbert Allen -3- Storage Batteries - leer I960 material used In storage batteries. Present development work is still in the o laboratory stage. A reduction of 3 or Ut of lead content nay becone possible. This is being mentioned here as a factor which should perhaps receive considera tion four or five years from now. A fifth change in average lead content per battery that could occur, but w* hope will not, is influenced largely by economic conditions. At the present time approximately 20% of replacement batteries being sold are in the lowest price category. Approximately 70% of replacement battery sales are in the med ium price category. The remaining 10? of batteries being sold for replacement purposes are in the "Premium" or highest price category. Percentage of sales in these three arbitrary price ranges has, in the past, and can in the future, change very quickly and appreciably if the National Economy changes. Popular replace* oent batteries in the lower price ranges at the present time have a lead content averaging from lh to 16 pounds each. Popular replacement batteries in the medium price range have a lead oontent averaging from 18 to 20 pounds each. Replacement batteries in the higher price range have a lead content averaging 20 to 2it pounds each. It can readily be seen that a change in the buying habits of the public can greatly influence the amount of lead used by battery manufacturers. A battery, say with 30% less lead in it, does not result in a 30% lower cost. Other parts, such as containers, covers, labor, acid cartons, etc., cost approx imately the same regardless of how much lead is Inside. Therefore, making a cheap, low lead content battery does not reduce costs in proportion to the loss in quality. Bear in mind we are talking now about batteries that are cheapened by simply using less materials than is considered good practice, even with the better high quality raw materials now available. Incidentally, lead processing companies deserve a great deal of credit for the Improved battery quality existing today. lore uniform, higher quality lead metal and oxide can be depended upon. Research and development work performed in the laboratories of our lead suppliers ha3 been of prime importance to much of the progress made. In order to arrive at the quantity of lead estimated for the battery Industry, I first projected total motor vehicle registration for the year I960. That was determined by adding to 1959 total registration the average gain per year during the preceeding four years. (Ref. Table l) Total registration 1959 Total registration 1956 It year difference ................ 70,11,6,000 ................ 65,163*000 ................. 8 ) 5,263,655 Average increase / year. .... 1,315,600 Adding that average yearly Increase to the 1959 total registration gives In round figures 71*762,000. As a result of a poll of a number of manufacturers of automotive equipment, it was estimated that 6,950,000 new vehicles would be manufactured in I960. That figure was added to the 1959 registration. In order to balance out at 71,762,000 r ww ii utiiiy^pni ""WWWW. LIA?107? Ur. C, Herbert Alien -1- Storage Batteries - Tear I960 total, It became necessary to assume that 563li,0OO vehiolea would be scrapped In I960. In order to estimate vehicles with 12 volt batteries, I simply added together the vehicles manufactured with 12 volt systems starting with the year 1953. That was the year when passenger automobiles first started using 12 volt batteries. It was assumed that scrappage of vehicles manufactured since 1953 was insignifi cant and would not appreciably affect the calculated foreoast. Automobile production in the U. 3. for I960 was estimated on basis of estimat ed new vehicle registration plus export estimate minus import estimate -- (6,950 4 300 - 500 - 6,750,000) It was assumed that vehicles to be exported in I960 would not change appreci ably from the quantity exported each of the previous three years. I estimated there would be a drop in the number of vehicles imported because U. 3. manufacturers are now making "compact* cars which should depress foreign car sales. By reforring to Tabls 1, you will notice that it was assumed a new battery would be required for each vehicle eatlnated to be manufactured in I960. Replacement battery production in I960 was calculated by using a factor obtained after reviewing vehicle registrations and vehicle mileage relationships with replacement battery shipments during the previous 7 years. (See Table H) The relationship that remained most constant or showed less variation with re placement battery shipments was that relationship to total vehicle registration. The average during the previous 7 years was L0% with the highest and lowest per centages being L2 and 37 respectively. On that basis I estimated there will be 28.701.000 replacement batteries produced in I960 ( 71,762,000 x .liO 28,701,000). It is recognised that such relationship is not readily explained but the fact remains there is a closer or narrower band of deviation when replacement battery shipments are compared with total vehicle registration. Batteries to be exported were estimated by averaging the opinions expressed *>7 a number of large and medium sized battery manufacturers. The result, 221,000, Is approximately the same as was exported each of the previous two years. Approximately 13% of replacement battery shipments for I960 will be of 12 volt types according to ths composite of opinions expressed by the manufacturers polled. Therefore, I have estimated that 13% of 28,701,000 or 12,900,000 twelvs volt batteries will bs produced for replacement purposes in I960. Since all U. 3. vehicles now havs 12 volt systems, ths total estimated 12 volt batteries will be 12,900,000 plus the 0. E. batteries for estimated vehicle production of 6,750,000 or 19,650,000 12 volt batteries. The balance of 16.022.000 will be 6 volt batteries for automotive replacement purposes. | | : l A ' '' : LIA21078 ' Mr. C. Herbe *t Alien -5- Storage Eatteries - Tear I960 Although a number of factors which have an effect on the amount of lead used by the battery industry were pointed out at the beginning of my report, I think that 12 volt batteries now In use will have the Dost significant effect on battery lead consumption this year. In order to determine the quantities of lead used In average 6 volt and 12 volt batteries, a survey was nade of lead recovered fron several thousand scrap batteries of popular sizes from different manufacturers. Great variations were found to exist. If original equipment 12 volt batteries were compared with average 6 volt replacement batteries, the difference in lead content was not ths same as when 12 volt replacement batteries were compared with 6 volt replacement batteries. There were also differences encountered between batteries of different manufacturers. Vhen 6 volt and 12 volt batteries having similar adjustment poli cies were compared, the lead content was different than when making comparisons by weighting then by types in proportion to sales flow. Other methods of determining lead content were also studied., The results obtained were as follows> (All based on 1959 measurements) Rounds Lead per Battery E""v3H - 12"Volt Assay X popular group 1 & 2b sizes 16.3 18.3 Assay X popular types with comparable adjustment policies, Weighted by sales flow 16.2 19.3 Assay T popular group 1 & 21* 3 sixes 16.6 20.7 Assay T popular types with comparable adjustment policies, Weighted by sales flew 17.0 21.6 Miscellaneous manufacturers tear down, new popular types 17.9 22.1 60% of U. S. production per K. W, Green in Daily Metal Reporter11 of 1/15/60 19.0 21.0 6)103.0 A.erage of above observations 17.2 6)123.0 Jo.5~ I tested the validity of the above lead weights per battery by applying then to batteries produced during the past 5 years. (See Table III follow!/^) : s;.; i ii. a--'&***?*: rijnr*^1**^^ tu, ^^pjamt^ LrA2l079 ?>ee*weee,>^ Ur. C. Herbart Allen -6- Storage Betterlee - leer i960 Table III Testing 6 Volt and l Volt cattery Lead 'Telghts Estimated I960 1959 1958 1957 1956 1955 Total Auto Batts. 12V Auto * 6V Auto 35.987.000 38 ,728,000 30,890,000 33,709,000 32,573,000 35,778,000 19.650.000 15 ,808,000 12,860,000 13,183,000 7,395,000 1,133,000 16.297.000 18 ,920,000 18,830,000 20,521,000 25,178,000 31,685,000 12V >220.5 lbs.xl000 6V <0.7.2 lbs .xl000 Total lbs. x 1000 Total Cal. Tons 803.000 250.000 683.000 381,500 328.000 325.000 689.000 328,500 255.000 317.000 572.000 286.000 270,000 353.000 623.000 311,500 152,000 833.000 585.000 292,500 82,800 588,000 626,800 313,800 Tons used In Auto. Batts. (Table j) 382,030 326,000 285,000 323,000 329,000 386,000 The above tabulation shows that particularly during the years 1956 and 1959 the 12 volt and 6 volt lead weights obtained for resolving estimated lead usage give calcu lated results very close to actual lead used, then looking at calculated results as compared with actual lead used for years 1957, 1956 and 1955 greater difference exists. That is possibly caused by the fact that prior to 1958 both six volt, and f r particularly 12 volt batteries, contained core lead than is currently being used in I ) average batteries. It is felt that these averages are representative of 6 volt and 12 volt batteries currently being manufactured throughout the United States. Original equipment 12 volt types nay contain Bore lead than these averages Indicate but that possibility was considered when selecting samples for lead weight deter minations. Now the previously cade calculations and estimates can be resolved in terns of estimated lead that will be consumed by the battery industry during the year I960. Estimated lead required by the battery industry la I960 was calculated by using the averages of the weights observed as followsi 'i f f I .. I ^m-s-"---' ' ...... ................. Lu?.le0 >5^-- 8 Mr. C, Herbert Allen -6- Storage Batteries - Tear I960 Table IT Estimated lead for Storage Batteries In I960 (See Ttblo I and Table 11) Batteries Lbs. each Tons 12 Volt Batteries 55? 6 Volt Batteries 15% 19.771.000 20.5 202,500 16.176.000 17.2 = 139.000 Total automotive and tractor Batteries 35,91*7,000 19.0 311,500 Lead required for Industrial batteries 1*0,000 Grand Total Lead required for Battery Industry 381,500 A review of netal and oxide used during the past 5 years (Table 1) shows Betel has averaged 51.3?, oxide lead 13.7? of total lead. I have, therefore, prJ*cted those percentages for I960 thus! 381,500 x 51.3? = 196,000 Tons Ant. Lead 381,500 x 18.7? = 186,000 Tons Oxide Lead The above quantity of lead, 381,500 tons forecast for use in battery manufact uring compares with 361,111* tons reported used in preliminary Bureau of Hines re port for 1959. Iou will notice this is an increase of approximately 6? is cos>pered with an estimated battery production increase of approximately 1*?. The greater number of 12 volt batteries in use will, I believe, account for a greater lead usage increase than the increase in vehicle registration would indicate this year. Tou nay be interested in the lead used for O. 3. "compact" car batteries. At the preoent time indications are that such batteries will contain 15 to 16 lbs. of lead each. That is somewhat less than the lead weight in the average 6 volt batteries now being sold. An article in the American Metal Market for March 2l, I960 estimated that compact cars are taking about 22% of industry sales. If that prediction holds for all of I960, lead usage by the battery industry will be effected noticeably in 1962 and following years. According to the latest information I have (Automotive Hows) as of January I960, there are 1,1*22,163 foreign cars in operation in the U. S, Batteries for these cars use approximately the same quantity of lead as 0. S. compact cars. Therefore, both U. S. and foreign compact cars will have a tendency to lower the lead content per average battery. Finally a word about my calculated forecast and the composite opinion of cross section of the country's battery manufacturers and suppliers. I will not take your time reviewing the figures in Table I of my report. 1 will simply say that my calculated total battery production forecast lies within one percent of the composite opinion given by battery manufacturers and merchandisers. < \ iniWIjigMPJjti'ii'l P UPY'IW lift, MWWWflJlWW? LIA21081 *--r intvmm nx.v****** Mr. C. Herbert Allen -7- Storage Batteries - Tear I960 The composite opinion on lead usage by the battery Industry Is, however* approximately 6% lees than ny calculated forecast* le.* 360,000 tons Instead of my estimated 382,CCO tons, I received a great many more opinions on battery production for I960 than on lead usage. I am, therefore* going to let my cal culated quantity of 382,000 tons stand as my forecast. Remember that a test of the lead averages determined by actually weighing or assaying was very close to the quantity of lead used by the battery industry as reported by the United States Bureau of Hines. Perhaps actual usage in I960 will fall between 360,000 and 382,000 tons. If it does, I don't think anyone would find too much cause for criticism. In closing, I want to express my thanks and appreciation for the helpful suggestions and opinions I received from other members of the Association of American Battery Manufacturers. Their marketing experts and analysts were cooperatlve beyond expectations. I | t [ I- ! L 1 ^ 2 10 8 ? LEAD INDUSTRIES ASSOCIATION 60 CAST 42*0 STRSKT NEW YORK 17, H. V. FUTURE AL'TOI/OriV? POT??.PUNTS John 3. Wlntringhan Ethyl Corporation Research and Development Department Detroit, Michigan The last decade hroug^rt a substantial number of powerpl3nts before the public eye, 3cr.e of these were described as being ready to replace the re ciprocating gasoline engine In passenger cars. The group Includes! 1. Gas turbine 2. Free-plston engine 3. Battery power U. Fuel cell 5. Stirling engine 6, NSU (or Curtlss-ffright) engine As we begin a new decade. It night be well to examine the potentialities of these powerplants In automobiles. If new pcwerplants are to be used In automobiles, they mist cocpete with the fanillar Ctto-cycle gasoline engine that has powered cars for so nany years. Conventional gasoline engines are compact, powerful, and eeononical. Methods have been perfected to rake then In large numbers at low cost. Gaso line engines have a high degree of flexibility In operation. When conditions require a charge In speed or load, the engine responds Instantly when we nor* the accelerator pedal. Gasoline engines have another kind of flexibility. Their site can be varied over a wide range "to fit best the operating requirements. Their effi ciency Is substantially Independent of their size. As engine size is reduced, the ability of a given vehicle to accelerate and to climb hills drops off, but fuel economy Increases, In order to replace gasoline engines In eutonoblles, alternate powerplants should be competitive with respect to size, weight, power, flexibility, economy, manufacturing cost, and general convenience. Presented at the 32nd Annual Meeting, lead Industries Association St, Louis, Mo., April 6-8, 196 4 N 227.04 wtW'S*SJiU(IP n il^Ur<.<i glW!n 1.1U!1J'IIWMII! gt^^W*fg"'Kglg3gtgW'<' LIA21083 % John 3, Wlntrlnghan -2-- Future Autemotlv# Fbwerplants and the Gasoline Market OAS TURBINE Figure 1 shows an automotive gas turbine. Part of the unit produoea hot gases under pressure, and these gases drive a turbine geared to the car wheels. The gas-producing section consists of a centrifugal air compressor, a combustion charter, and a turbine wheel which drives only the ooepressor. This unit has to be cranked up to about 15,000 rpa by a starting d o tor before enough hot gases are available to keep the cocpressor going. Above that epeed, feeding core fuel Into the combustion chamber provides nore hot gases to turn the compressor and power turbines. At full power, a typical unit will have compressor speed of 50,000 rpo. A gae turbine's rate of acceleration la diarply United by the temperature It* parts can stand. If fuel la added too fast, that temperature nay be ex ceeded. Because the naxinun allowable temperature also llnlta the efficiency of a gas turbine, use of special, high-cost alloys appears unavoidable. And to be even reasonably efficient, a gas turbine oust have a regenerator to trans fer heat fron the exhaust gases to the conpressed air. Although turbines are inherently ainple, they require a long tine to crank, they accelerate slowly, and they are costly If we try to nake then effi cient. It 1s possible to calculate the fuel economy of a turbine-equipped autonoblle with a high degree of accuracy. To be conservative, we assign effi ciencies to the turbine components that are higher than would be likely In nass-produced units. Figure 2 shows how important an efficient regenerator Is to ths car'* fuel economy. If the regenerator is designed to be only 7<^% efficient. Instead of 90%, fuel economy at U0 nilee per hour drops fron 20 nlles per gallon to 12-1/2. Figure 3 shows how fuel economy of a gas turblns car varies with size of the turbine. Here, the high regenerator efficiency of 9?H has been assmed. At liO nlles per hour, a lOG-horsepower unit gives 20 nlles per gallon, but a 3ff-horsepower unit gives only lii, FREE-PI3T0N tUOINE Figure It shows a free-piston engine. The unit produces hot gases at mod erate pressure, and these gases are used to drive a power turbine geared to the car wheels. Hot gases formed by diesel conbustlon of fuel In the power cylinder force the pistons outward, compressing air in the bounce cylinders at each end. The pressure built up in the bounce cylinders la great enough to return the pistons to inner dead center. In the engine shown here, conbustlon gases exit as ths r I 'fit!'! ^ -<?*.- -,>i.y-v Al-frt lU 2108- John 3. Wlntrlnghan -3- Future Automotive Powerplante and the Oasoline Market right piston uncovers exhaust ports during Its outward travel. Next, air antors as the left piston uncovers Intake ports. Some of the Intake air flows through the cylinder and out the exhaust ports before the pistons bounce back to cover these porta. This air Joins the corbuation gases to drive the power turbine, Free-plston engines are heavy, noisy, and relatively expensive. They are hard to start In cold weather. The fuel economy of an automobile equipped with a free-plston engine can be calculated. However, the computations are nuch core tlne-consunlng than those for the gas turbine. Here again, we assune high efficiencies for the components, la order to be conservative. Figure 5 shows ths fuel econony of a car equipped with three sizes of eoglno. If the free-plston engine is designed to produce 100 horsepower, the fuel econony at liO nlles per hour is 23 miles per gallon. Tilth a 300-horsepower unit, however, fuel econony at liO r.ph la only 12 nlles per gallon. It Is very interesting to compare the fuel econony of the gas turbine or the free-plston engine with that of the gasoline engine. Such a conparison la made In Figure 6. oil three units have the sane power output, 200 horsepower. The relative fuel economies would be the sane at any other power level. The gasoline engine Is substantially nore economical In the nornal operat ing range. The advantage Is so large that the gasoline engine can use a fuel which costs nore, and still deliver nore nlles per fuel dollar. BATTFHT POWER Considerable performance data have been released on one typical contemp orary battery-powered car. Its range before recharging Is about 80 nlles on level ground, and about 50 nlles over hilly ground. The ear costs *2,800, and has 6.li horsepower. In contrast to this low power is the 36 horsepower of tha German Volkswagen. The United driving range and tha tine required for re charging make battery-powered cars undesirable as a family's naln car. These factors and the high cost also would seen to limit their appeal as a second car. f uel c el l s Figure 7 shows a typical fuel cell. A chemical fuel and an oxidizer re act In the cell, without burning, to forn electricity. This Is the reverse of electrolysis. Conversion of energy Into power can be as high as ($%, as com pared with liO> or so in internal-corbuation engines. In the cell shown here, hydrogen is Introduced through one porous eleotrode, and oxygen through the other. Their reaction, which forma water, pro duces current that is used to power eleotrio motors. . ; ; : f l. ; [ : imrwrmiB+v m * tuumnuyjuwu> u p h u .i W M.WA'UWRWi V'.W* Tf.-i LtA.ZlC>eA, ____. .___ ) II '. '1Hn PUf ' John 3, Wintrlnghea -4*-- Future Autonotire Jbwerplents and tha Gsaollne Market Hydrogen-oxygen calls can operate at normal atmospheric tonparatures. Calls using hydrocarbon fuels and air normally operate at about 900?, This operating temperature can b reduced by using catalysts, Allis-Chalmers recently introduced a fuel-coil farn traotor, The 20* horsepower fuel cell weighed 1,900 pounds. On this basis, a 200 horsepower fuel cell would weigh 19,000 pounds, Much nora favorable volume and weight dats have cone froo other sources, Tabls 1 shows tbs rest favorable published volume data, end Table 2 the Dost favorable weight dats, Table 1 Volisaa Comparison Fowerplant fuel Cells Cell Electric Motor Total Cubic Feet/Horsepower 1.0 0.1 1.1 Gasoline Engine transmission 0.2$ Even In this Dost favorable comparison, the fuel cell occupies about four tines as ouch rood as does the gasoline powerplant. Table 2 Powerplant height Comparison Pounds/Ho rs epower Fuel Cells Cell Electric Motor Total 8.3 5.0 13.3 Gasoline Engine * Transmission 3.0 Again, in ths cost favorable comparison, the fuel cell weighs about four times as much as ths gasoline powerplent* These comparisons d not lnolude tb* substantial Sulk of the containers for fuel and oxidliar. : ! [ ; , ; i "T U !! f lH fJi! ili 1i. W If *s**vn**K**--**m*-*r ***** ' ~i***m+-mi~#f'. .*^***V+W*~-' LIA21085 I John 5. Wlntrlnghea -5- Future Automotive Powerplante ar.d the Oasollne Uarket STIRLDO ENODTB Figure 8 shows one arrangement of a Stirling "hot-air" engine. This ex ternal combustion engine w3 Invented in 1816 by a Scottish minister. ilsther inefficient versions were used during the last century to punp water* Heat applied to the head of the Stirling engine's cylinder causea air or gas inside to expand at constant temperature, pushing down the power piston oa the left. The sir then oovos through the roger-wator as tho rtispCececant pis ton on tho right novea down. Heat Is eto.-eu In the regenerator, and the air contraete. The j JT voluna Is further redded by cooling at constant tenpereture, as the right hand cylinder is water cooled. To complete the cycle, the air picks up heat la tha regenerator. Within tha past two decades., Rrlllpe in Eolland ar.d Oeneral Uotore have redesigned the engine to produce high efficiency. However, the engine la ex pensive, Ifcreover, It is very difficult to change the power output rapidly. For equal power outputs, the Stirling engine requires two or three tines as much radiator surface as does a gasoline engine. For these reasons, the Stirling engine Is not attractive as an autoootlve powerplant. It will probably find use In central power stations. KSP (Curtiss-'fright) EH3DTC Curtlss-frlght recently acquired 0.3. rights to this gasoline engine, is shown In Figure 9, there are only two noviujg parts -- a triangular rotor and the crankshaft. As the rotor turns inside the housing, a fuel-air charge ia drawn In through a fixed port, compressed, and then Ignited when It passes the spark plug. The expanding comb istlcn gases puah the rotor around until they exit through the exhaust port. Sons part of this sequence Is going on at all tlcea In each of the three ehacbere forced by tha rotor's sides and the housing. Thus the engine's opera tion Is virtually continuous Intake, compression, expansion, and exhaust. Oper ating speeds are hlghj amall units are reported to have turned 17,000 rpn. The NStJ engine poses very difficult sealing and lubrication problem*. Some qualified American engineers believa these problems are Insurmountable when highpower output Is desired* DIESEL EKODtS Although diesel engines have been used for trucks and other heavy-duty service for nany years, there has recently been an upeurge of interest In the use ofdiesels forpassengerCure. For a given power output, diesel engines are lergar, heavier, and more expensive than gasoline engines. They have to be about one-third larger, because they need more air to burn a given amount of fuel. Their greater weight - j. ; r , ; ' f i i L I A210P6 V ni ! u John 3, Wiiytrlnghaa -6- Future Automotive Powerplant* end the Gasoline Market tens both from their larger else and the heerier construction needed to with stand the higher operating pressures. Diesels ara also leas responsive than gasoline engines. In the case of the diesel-powered taxicabsnow beingtested inrarlous parts of tha country, the extra cost of theengine requires about ?5,000mile# of use to amortize. Disadvantages that must bs accepted Include poor ac cal eratlon, noise, and hard starting In cold weather. THE rOTDRB Weighing the advantages and disadvantages of these rarlous powerplanta, It does not appear that any alternate powerplant Is likely to replace the conrentlorial gaoollr.e engine in passenger oars. What then Is going to take placet It appears that the publio la booooing Interested In better fuel econony in teres ofDoro miles per dollar. This trend will develop as no re and nor a imported and compact cars join our passenger car population. It also cay affect the alia of engine# In the full-alae cars, and the weight and dimensions of thesa oars. Table 3 Is an estimate of the 0. 3. car population in the next fire yeare. At the end of 1959, care In use totaled 56-1/2 Billion. Of these. Imported care numbered 1.1* million, and D. S. compacts 1.0 million. Thus, at the end of 1959, our car population contained U.2? of small cars. At the end of 1961*, It Is estimated that cars in use will total 71 J ctlllon, of which 3.9 million will be Imports, and 7.8 Billion compacts. Small care then will claim 16.h% of the car population. Table 3 Passenger Car Population^ (milIlona) irxTear Imports Compact* Ko. J Poll-Sla# HoT J Total >0. 195? l.U 2.1* 1.0 1.8 5l*.l 95.8 56.5 I960 1.9 3.1 2.1* It.l 55.3 92.8 59.6 1961 2.b 3.8 3.5 5.7 56.2 90.5 62 4. 1962 2.9 lt.lt 1*.? 7.6 57.3 88.0 654. 1963 3.1* 1*.9 6.5 9.5 58.6 61*.6 68.5 1961 3.9 5.5 7.6 10.? 59.7 83.6 71.1* (1) Thla estimate la designed to ba in substantial agreement with predic tions of tha U. S. Bureau of Publio Roada* i f i | | f f i , r ) ; : ' ; . IIJ^HPHI 1 ff.WUWljW.ipw LI A 210 e7 John 3. Wlntrlcghea fi Tutu re Automotive fbwerplante and the Gasoline Uarket J Despite the growing percentage of small care, there will be more fullal*e oars In 1961* than there were In 1959. The Increase In number of full-al*e cars la about 10*, Added to this are 11,7 million email cars predicted in 1961*. This growing car population will dsnand core end core gasoline. An es timate of the future trend In total rotor gasoline derand is shown In Table It, The figures include gasoline consumed In trucks, tractors, boats, and other usee. About 65* of motor gasoline la used In oars. Table It Tear Hotor Gasoline Demand Billions of Gallon* 195? 57.0 1961* 67.1 BP 17.7* Based on this estimate, motor gasoline decoand will Increase nearly 18* In the next fire years, frca 57 billion gallons in 1959 to 67 billion in 1961*. We expect that use of tetraethyllead In motor gasoline will increase. The average concentration of TEL in motor gasoline in 19&i will be greater than was the case in 1959, This is so because tetraethyllead is usually cheaper than refinery processing for raising gasoline octane numbere. Thus the output of tetraethyllead will increase at a rate faster than the gain in gasoline use. We will be buying more and more lead. fc.rv*- tU zioeB LIA2108Q 0 MILES PER GALLON igure l 0 20 40 60 80 100 MILES PER HOUR Effect of Regenerator Efficiency on the Fuel Economy of a 100-Horsepower Gas Turbine MILES PER GALLON Figure 3 MILES PER HOUR Effect of Size on Gaa-Turbine Fuel Economy VW- . 1 r*7*y POWER CYLINDER EXHAUST Figure 4 Free-Piton Engine 1. wwr y?'? LIA21091 MILES PER GALLON s Figure 5 Effect of Sixe on the Fuel Economy of a Free-Pixton Engine 24 20 MILES PER 16 GALLON 12 8 I 0 20 40 60 80 100 MILES PER HOUR Figure 6 Fuel-Economy ComparisonUf 200-Horsepower Gas Turbine, Frec-Piston, and Gasoline Engine#1 1jw. .'^4,W-*' ^^1 iiLyy%ji.ww *u;n 'yiv*j^,s.*wsM5wyyiP r ti ELECTROLYTE ] '] Figure 7 Schematic of Typical Fuel Cell H i |, i i i f ii u ' ii ii,-._..wtnn n? rwu..w I n n !Bi y i;p ^)ji|.w, i gyuAp. wi t n v.eie*TM **^ m.11 iy ** I - ?.', .j ^ UU2193 -, ,,-,, fr,, r ' VT'^--'',~'WUTihr'iiii |'k*' fciilirift ihiifaiBi rTm.. \ r- r ' k' i ri i $ * ~ i i (f f' LEAD INDUSTRIES ASSOCIATION 0 (AST 4lH0 STRUT NEW YORK 17. N. T. TEE OUTLOOK fCB LEAD XX THg CABLE PtDUSTICrs Ary Mosslman Manager of Market Research Anaconda VI re and Cable Caspars *: ' l > In preparing this talk on the outlook for lead as a cable sheathing material, I quite naturally first examined vhat earlier speakers had said about the subject. Those of you vho recall the earlier discussions of this subject vlll undoubtedly agree the outlook has been far from rosy. In 1951. for example, a cable manufacturer cautioned "the only reason for using lead Is to obtain a moisture impervious sheath. If any other material were available vhich vas impervious to moisture and could be applied to cables, the use of lead vould be drastically reduced." ; r f He also cautioned that "not so long ago lead vas.the only material considered suitable for a cable sheath. This condition no longer exists and, unless the producers shov greater Interest in technical develop* ment of lead sheaths, the use of lead for cable sheaths is due for 4 steady decline, Irrespective of price or supply." In 1951 the vire and cable industry applied 137,000 tens of lead as sheathing. s, ; r In 1953 another cable manufacturer prophesied that aluminum vould completely displace lead as a cable sheathing material. In tvo years he suggested lead vlll gradually lose out completely to aluminum In telephone cable. And a substantial percentage of European pcrver cable vlll be sheathed with aluminum. In America the change, be predicted, vould ccoe more slowly. In 1953 cable sheathing consumed 152,000 tone of lead. In 1933 4 leader and prime authority In the field of cable research development and manufacture noted that the development of rubber Jackets during the previous twenty years had been responsible for 4 decrease la > the use of lead for low voltage power cable sheaths. And during these same twenty years, the development of pipe type cable systems bad resulted in reductions of lead for extra high voltage cablet. Presented at the 32nd Annual Meeting, lead Industries Association, St. Louis, Mo., April 0-8, i960 "WBPjWiaiMWa^^ 1 Ll;zio^ y 1 I - .i Hr. Ary Mosslman -2- Tbs Outlook for Lead la the Cable Industry Be further indicated that, in applications la which lead vu gtlll necessary, cable manufacturers were covering lead with neoprene and other materials. In doing this, he pointed out It was customary to reduce the lead sheath thickness at least 1? per cant. Sometimes the reduction amounted to as much as 33 per cent. Lead was clearly In a squeeze between high and low voltages. And where its use was mandatory, substantial reductions were being effected. Lead for cable sheathing stood at 121,000 tons In 199$. In 195Q It vas noted that Western Electric had completed develop ment of a substitute for lead--a plastic and metal cable sheath--called Stalpetb. The telephone Industry had grown up on lead sheathed cable. But, since the 30's, because of a growing concern over lead supply and price. Western Electric had been developing substitutes for lead. Put Into production In 1950, by 1958 leadless sheaths made up over 90 per cent of the entire Western Electric cable production. Enormous savings have been reported by Western Electric In thsir switch from lead. In 1958 lead use in cable sheathing fell to 75,000 tens, and 1959 aav a further drop to 65,000 tens. The oft-repeated prophecy that lead would give way to other materials has apparently ccme true. It would not be difficult to predict with same assurance a further decline in lead consumption. Before predicting the end of lead, let's first reexamine lead's position as a cable sheathing material and see if we can find something in lead cables that might be developed and promoted to stem the tide and halt or possibly reverse the decline. Who now uses lead sheathed cable--and why do they continue to use ItT first, there la a hard core of lead cable users who pay more for lead because they vant to use It and find Its advantages veil worth the price. One of these advantages being considerably longer life. As a supplier of telephone cable to Independent telephone ccmpanles, we see a continued demand for paper lead telephone cable. The trend here, Z must admit. Is to follow the Bell System In Its use of Alpeth and Stalpetb. However, there are many important independents who still Insist on using lead and show little Inclination to change. This insistence on lead Is also found among seme utility and In dustrial users of lover voltage rubber Insulated cables. The principal use of lead as a cable sheathing material today la In the manufacture of paper Insulated power cabla. 1; ' r ! * * t" 1 yvewsuyiw -A*** * <* *"**-*'** LIA21096 / ' r. Ary nossiaea -3- The Outlook for Lead In the Cable Industry This market, surprisingly enough, la restricted mainly to a handful of electric utilities serving large cities--Bev York, Lot Angeles, Philadelphia, Syracuse, 8t. Louis, Cleveland, and a very fev others, where better than 75 Pr cent of all the paper lead manufactured Is Installed. A decision by any one of this Halted number of companies to switch to aluminum or scee other material could, of course, bring the significant use of lead as a cabls sheathing material to a screeching halt. But for the moment the processing at aluminum has not proceeded much beyond thk preliminary development stage aa a cable sheathing material In this country. Companies who continue to use lead sheathe must obviously prefer lead for a good reason. It's a fact--any cable Insulation vhlch cannot tolerate moisture must have a metallic sheath. Today, lead la the eaalest of all metals to apply and use as a completely moistureproof barrier. And equally Important to the continued use of lead la the fact that paper power cable Is today an often cheaper, more economical and trust* worthy cable with a service history which cannot be rivaled by any other material. . And as the Increasing size of electric loads demands distribution at higher and higher voltages, paper lead cables offer an excellent, reliable and economic answer. Because of Its economic advantage and service history, paper lead pover cable warrants consideration by any user of higher voltage cable; and. In our opinion, paper lead power cable warrants consideration by the lead Industry as an area In which lead might be expanded. If paper lead cable Is as worthy of consideration as we believe It Is, why then do only a handful of electric utilities use ItT Vhy don't more Industrial plants use paper lead cable If It provides an economical answer to the cable users' number one problem--reliable service of large loadsT Quite frankly. Industrial users of power cable rarely give lead a second thought for cable sheathing even when they have been troubled by failure due to moisture. Hor do they consider paper lead cable when they are searching for an economical solution to the problem of serving large electrical loads. Many engineers specifying cables have never been acquainted with the fact that lead Is used as a superior cable sheathing or that paper lead cable Is economical and trustworthy. r L i Kr. Ary Hosliman -4- The Outlook for Lead In the Cable Industry Where lead Is known, engineers generally believe the splicing and terminating of lead cables Is an Involved procedure. And many Industrial people have the Idea that varnished cambric and rubber can be Installed vith less care than paper lead power cable. This la not so. Another objection to the use of paper lead cable Is the supposed lack of experienced cable splicers with lead wiping skill. In our opinion, paper lead cable properly Installed vould more often than not prove a better and more economic solution In Industrial applications. Its use In Industry has been restricted by fear and lack of under* standing. The successful promotion of other products such as neoprene, butyl and polyethylene has left most wire and cable salesmen unwilling or unable to sell paper lead cable to non-users. Host salesmen vould be unwilling to un-sell a plastic or rubber insulation and re-sell paper lead If be has available the cable the custoner Is already asking for. Thus, we find lead facing a continued decline when at the same time paper lead power cable provides an economical solution to a pressing problem. Here Is a situation In which lead use could. In our opinion, be Increased. Obtaining auch an Increase would require four things: First, a better understanding of wire and cable manufacture, sale and application. Just where does lead fit Into this picture! Secondly, Increased use vould demand Intelligent promotion of lead In application! where It can be demonstrated that paper lead cable can provide economical and outstanding service. Thirdly, wire end cable users must be taught the ease of handling lead. This vould Involve working with Industrial plants, utilities, contractors, and unions to provide a pool of adequately trained cable splicers skilled In lead wiping. last, but not least, continued work with cable manufacturers in Improving lead sheaths and simplifying their application vill be needed. This could, also lead to the increased demand for lead In higher voltage cable. All four steps vould be necessary to reverse the trend and re establish lead's position. -lift r i>v-,V--^ i Hr. Ary Mosslman -5- The Outlook for Lead la the Cable Industry Starting the program I have Just outlined Bight be easier than you think. For example, you could start by Insisting on the use of lead cable* In your own plants--and, more Important, Insist that the In dividuals responsible for cable application carefully evaluate each and every Installation In terns of the overall progress. Find out how ouch lead really costs In terns of Installation and length of service. Secondly, study those Industrial plants which are now using paper lead cable successfully. These tvo steps will undoubtedly help in a solution to the Important problem of cable splicer training. Thirdly, I suggest that you carefully study the selling and pronotional techniques of those people now selling materials which compete with lead--aluminum, neoprene, polyethylene. Last, but not least, evaluate the potential Increase In the use of lead which might result from Its promotion. - Cfcly a nominal expenditure would be required to bring any reasenable effort at understanding what might be done to promote the sale of lead to this point. From there on, concerted salesmanship, effective promotion, training, development of trade relations, and metallurgical research could be : brought to bear to restore lead as a cable sheathing material la the minds of cable purchasers. = To again quote one of your earlier speakers, "it appears that if in the past the lead Industry has shown a complacent attitude, this must now be replaced with seme Intelligent planning and vigorous action if you have any Interest in maintaining and Improving present markets." i i LIA21099 "WWWWW n \Mta* HSirtr'iiiLflft mktfhAf* :x safari h -Wb -Uj FDR RELEASE NOT EARLIER THAN 1? NOON, THURSDAY, APRIL 7, I960 THE INTERNATIONAL LEAD ANTI ZINC STODT GROUP 3y C. V. Nichols Special Assistant Office of the Assistant Secretary for Economic Affairs U. S. Department of State The Lead and Zinc Study Group Is very young. Some of its activi ties have hardly begun. Tet this new organisation already has Influence in the lead and line Industries throughout the world. The Group is not only rec ognised] it is even given credit for some substantial changes which have cow about during the past year in t the tenor and outlook of international trade in lead and tine. Because of the relationships between dowstic and International markets, the Study Group can be isportant, not only to is$>ortera and exporters but to all producers, consumers, and merchants of these materials. Strictly speaking, the curtailments of international supplies which were in effect during 1959 should not be sttributed to the Study Group. Those curtailments, and the Study Group itself, were the separate. Joint products of the preceding exploratory conferencea and an interim committee. The Study Group, however, has become the continuing machinery. It is naturally now thought of as an extension of the international discussions which began be fore it was organised. The Study Group is an autonomous intergovernmental body. The am bers are national governments. Kembership is open to any government which is s member of the United Nations, or of its specialized agencies, or is a Con tracting Party to the General Agreewnt on Tariffs and Trade if the governwnt considers Itself substantially interested in the production, consumption or trade of led or zinc. (Presented at Joint Session of .. American Zlsc Institute and Lesd Industries Assn., St. Louis, Missouri, April 7, I960) U\ -a-- afr i ` ' ~ -J T r ~ .. Tif*.". `ri'Je.'-''-tt'.fVT- - '-vr-yp. fc'--``" N 227.06 LIA21100 C. V. MICRO15 2- Tventy-fivo governments have accepted membership. All continents are represented. The menker coontrlaa account for sore than 90 per cent of estimated world production, consusption, and trade of lead and sine, ore and netal. The members participate In sessions of the Study Group through na tional delegations which Include officials of government and representatives of industry. Industry representatives hare already contributed a great deal to the work. It is hoped and believed that their participation can be further increased. The Study Group has its own rules of procedure. Its terms of refer ence permit considerable flexibility in operations. There is no fixed sched ule of meetings. These are held at times and places decided by the members according to circumstances. The normal procedure is for the discussions in the Study Group to be held in private, and for the decisions of the Group to be taken according to the sense of the meeting, without voting. The Group is authorised to make studies; arrange for statistics; consider possible solutions to special difficulties; and submit to member government reports, which may include suggestions or recommendations. The Group has no regulatory authority. Membership involves no ob ligation upon a government as regards the production, consumption, or trade of its country. The Group is to remain in existence ss long as the partici pating governments think it useful. A member government la free to withdraw at any time. for the present, a email office and staff in New Tork are being provided by the United Nations on a reimbursable basis. The budget for I960 is very modest. Part of the expenses are being shared equally bjr the member governments; the remainder being allocated among members in proportion to their volume of international trade, taking account of exports and imports. ` . . .......... ji. v . - . ii. ..M l.,,:.... -3- C. w. NiCHOLS The site and functions of the headquarters staff are presently at a minimum. These could be expanded If the members desired in time to estab lish statistical or publications programs as other study groups hare dona. The present disposition of the Lead and Zinc Oroup Is to rely upon existing sources of statistics as far as possible, but to exert an Influence toward Improvement and extension of existing statistical work. The close association of administrative operations with the United Nations at this time was considered necessary to enable the Study Group to begin to function more easily and speedily. This opportunity to obtain staff services from the UN makes a variety of professional skills in the larger or ganization available as required. The assistance of the UN is also reducing the expense of operation. These initial organizational arrangements are pro visional} they will be reviewed and may be revised if the members so decide. As long as the operations of the Study Group are related so closely to the United Nations, the meetings of the Group will probably be at New fork or Geneva, since those are the locations where the UN maintains conference facilities. The Study Group could meet elsewhere, especially if a member government should extend an invitation to host a particular session. This has been a common practice of other commodity study groups. The next full session of the Lead and Zinc Study Group is expected to be in early September of this year, probably in Geneva, but a definite decision has not yet been taken concerning either the date or the place. The Study Group has established a Standing Committee to deal with matters requiring attention between full sessions. The Standing Committee manages the budget; directs the secretariat; keeps the lead and zinc situation under review; and makes plans for future meetings of the full Group. The Standing Committee includes all members of the Group who wish to participate in its work. This Committee electa its own -officers. The officers of the !I ' ! C. . NICHOLS - ! - Standing Committee are expected normally to be the sane Individuals, or In part the sene individuals, who are at the tine holding offices of the Study Group to which they have been elected at full meetings. The Study Group cur rently elects its own officers for a tern of one year, which nay be extended until successors have taken office. The Oroup has appointed a small panel of persons who are specially qualified in the field of statistics to consider the data now available con cerning lead and sine on a world basis, and the improvements which adght be made in this data. Thl* panel will report to the Standing Committee before the next Study Group meeting. The Study Group is primarily a forum through which the members can seek and obtain more Information and a better understanding of the outlook and the attitudes of others. It provides opportunities to corrsct misunderstand ings and misconceptions, and should help in avoiding them. The full meetings of the Group are its principal activity and its chief opportunity to accom plish its purpose. The staff, the Standing Committee, and the other activi ties have a supporting relationship. While the full meetings are the high spots of the program, there is a great deal of preparatory work in advance of each of these meetings, and each meeting can generate follow-up activity extending through all or much of the Interval until another session. Each delegation to a Study Group meeting represents its government In an official capacity. The delegation must act as a unit in expressing of ficial views. Necessary guidance for the 0. S. delegation Is developed by our Government in advance of each Study Group meeting, after appropriate consul tations among the responsible officials and with the industries concerned. Considerable effort has been made, both by government and Industry, to in sure that our delegation is adequately organised and equipped to represent this country effectively. "f LIA21103 - 5 c. V. NICHOLS The U. S. delegations have Included officials from several depart ments principally concerned, and industry members, vho vers appointed official ly following their nomination by representative segments of Industry, The in dustry members of the delegation serve without expense to the Oovernnent. The delegation needs to be representative of the interests concerned and needs to include a variety of specialised qualifications, but it also needs to be rea sonably compact in site. This is sometimes a problem to bold the membership of the delegation within effective working limits. The delegation is appointed for a particular meeting and completes its work when its report on that meeting is submitted. . The newly organised Study Group cooes on s stsge which already had a giant backdrop of world concern with the problems and interests Involved in international trade of primary commodities. Nationalism is a strong force in the commodity field, but there is also an Increasing recognition, especially since the second world war, of the interdependence among nations in s world situation. w 'k & rszf-m*)*'. As governments have taken greater responsibilities for economic af fairs, the commodity policies of individual governments have created for these governments a set of new and more active relationships with private companies and other governments. The waste and distress that can be erased by extreme economic cycles sad excessive fluctuations in the prices of major commodities have become an ever more pressing concern as stronger emphasis is placed on the maintenance of high levels of productive employment and a steady economic development at home and abroad. Great efforts are made to encourage a flow of private and public capital Into less industrialised countries, but this international in I vestment and its broad objectives can be seriously undermined In many of those countries if their earnings on the commodities they export do not show long term growth with reasonable stability along the way. li. 4-> LIA21104 i C. W. NICHOIS 6- i Direct and detailed controls for purposes of stabilisation here been undertaken In some commodities. The record of peacetime regulation has not been too lapressive, either on a national or an international scale. But the vorld is in no mood to embrace fatalism. People are not inclined, either in the United States or in other countries, to regard the hardehlpa of extreme price fluctuations as an affliction which is unavoidable. Severe instability in external markets can increase greatly the problems which national governments face in pursuing liberal pollclea toward i international trade. These problems of primary commodities have engaged and continue to i engage the serious attention of many international bodies. No panaceas have been discovered, but most governments place a high priority on a continuing search for ways to moderate instability and reduce the causes of international friction. The General Assembly of the United Nations hss repeatedly discussed f t the objectives toward which international cooperation should be directed in the field of commodity problems. So have the Economic and Socisl Council, the Pood and Agriculture Organisation, and the Organization of American States. The iff S'! Commission on International Commodity Trade was established for this purpose. Commodity problems have been emphasised in the sessions of the Contrsctlng Parties to the General Agreement on Tariffs and Trade. None of these general organisations, however, has been able to devote continuing attention in depth to any particular commodity situation. Specialised study groups for some commodities have existed for many yeara. One of the best-known Is the International Cotton Advisory Committee which had its origins before the second world war and has functioned on a f broadly representative and active basis since 19li5. This committee has made Itself the hub of extensive and authoritative Information on cotton and has I produced many competent studies concerning the world cotton situation. The n n in iri> ms'iiwwn u>znos *J 4 -i . j *- w.'lfti^g . -7- c. v. tnc h o is question of an international cotton agreement has received serious attention in this committee on more than one occasion, but proposals for intergovern mental regulation did not advance beyond the stage of discussion. The International Wool Study Group, although in existence since 19li7, has not been as active as the Cotton Advisory Committee. The International Rubber Study Group, established in 19ii5, has been useful to its members in making their vay together through a succession of striking developments, including reconstruction from wartime disruption) growth of a large synthetic industry) emerging political independence of areas which are the leading exporters of natural rubber) large-scale stock piling) and, more recently, some liquidation from the stockpiles of natural rubber. The Rubber Study Group has assisted international trade in such mat ters ss standardisation of grades and improvements in type sampling. Its most valuable contribution, perhaps, has been the development and dlsseadnatlon of authoritative statistics or estimates on the production, consumption, trade, and stocks of all types of rubber on a world-wide basis and authorita tive forecasts of production and consumption, year by year. Like the Cotton Advisory Committee, the Rubber Study Qroup has at times given serious con sideration to the possibility of an international agreement which would con trol the trade in rubber, but on each occasion the members decided that no * general advantage could be expected froa proceeding with such a project. Coffee, cocoa, rice, and other commodities have also had study groups, and the activities of each have been tailored to the problems of the particular commodity and the desire of the member governments to uss this method of consultation. A few commodities, notably wheat, sugar, and tin, are subject to specific intergovernmental agreements. Each of these agreements is admin istered by an international council which, of course, is not concerned dl- p ! : ' r-V; i k' c ? M I C. W. NICHOLS -8- rectly with any other commodity. The functions of those councils sre quite different from those of the commodity study groups. Some commodities here received much more intergovernmental atten tion than others. The amount of international trade is not in itself the controlling factor. Each of the leading world commodities has soma special characteristics which affect the interests of governments and the methods they think desirable for pursuing those interests. Some commodity study groups have been formed in response to an immediate, more or less fortuitous, situation. Study groups have only endured, however, and proven to have con tinuing usefulness, in thoss commodities where a considerable number of im porting and exporting countries found continuing reason to keep developments under Joint review. A happy situation in a world connodity presumably would be one in which there were not enough uncertainties or problems for governments to at tach much importance to s study group. Vhare the commodity is sufficiently important, however, and the need for a study group is felt sufficiently widely, these practical considerations are usually controlling rather than any theory about the desirability of study groups in principle. Lead and zinc constitute in some respects s more complicated prob lem than other international commodities. Lead and zinc may be more in need of s study group because of the special circumstances under which these two materials sre produced, marketed, and consumed. Other commodities are not affected to the same extent by characteristics such as large-scale recovery of secondary material! predominance of Joint production at the mine! *nd substantial volume of international trade In concentrates as well as in metal. In 1957 and 1958, when the problems of instability in some nonferrous metals were giving increasing concern to a number of governments, there v*s no specialized international machinery available for multilateral consul- . LIA21107 ' - 9 C. V. NICHOLS tation. Inquiries vers usds through United Nations channels, and tha replies indicated that many governments would be interested in an exploratory meeting to consider the position and prospects of copper, lead, and zinc. The Secre tary General of the United Nations then issued inrltatlons for this purpose and the meeting vsa held at London in September 1958. < The discussions in that meeting led the participants to the conclu sion that there was no need for special action as to copper. Several prob lems were exposed in lead and line, however, both of a long-term and a short term nature, which appeared to require further careful consideration by govern ments. As a possible means of dealing with the short-term problems, the London meeting suggested that governments should consider a reduction of exports or ! production for one year, with machinery for a prompt review if conditions changed. Governments were also asked to consider the establishment of a lead and line study group which could provide a framework for continuing coopera 5 tion with respect to long-term problems. In addition, the exploratory meeting arranged for a review of the available statistics to determine whether these provided satisfactory data for intergovernmental discussions of lead and sine. 1 After allowing some timo for separate study by governments, a second meeting was called, concerned entirely with lead and zinc, and this took placs at Geneva in November 1958. Meanwhile, the United States had established Im port quotas try action taken under the escape clause procedure of the Trade Agreements Program. The world trade situation for lead and zinc was somewhat different from that which had existed at the time of the London meeting. Soma delegations at Geneva thought that a further period of time would b required in order to appraise the outlook under the new circumstances. The discussions in November 1958 recognized that the lead and zinc markets were out of balance, but no action was taken at that time to curtail international supplies. Rec t- r F C t & ommendations were made for the formation of a lead and zinc study group and 'i. Ll^U8 f C. V. NICHOLS 10 for further efforts to improve the world atatietles which govemaenta could uaa In Judging the position end considering propoeala for adjustment. The interested governments cane together again In late April and early May of 1959 at New Torlc, and took preliminary atepa toward organising the Lead and Zinc Study Oroup. A substantial excess of supplies in both metals atill appeared to be in prospect at the tine of the New Tork meeting, if no al lowance were made for certain reductions and limitations then under considera tion. The meeting, hoveTer, received reports of specific curtailments to be made in a number of countries and estimated that, after allowance for these, the world excess of lead metal would be reduced to an annual rate of 59,000 tons in the second half of 1959, and the excess for tine metal would be reduced to about 16,000 tons. These undertakings of which the New Tork meeting took notice were separate and voluntary. They entailed no formal corarltments. It waa clearly the view of the meeting, however, that these measures would improve the rela tionship between supply and demand, pending further review at a subsequent meeting. The New Tork discussions gave strong support to the announced limi tations as a general method of approaching the short-term problem. The first regular session of the Lead and Zinc Study Oroup was held at Geneva, January 27 to February 3, I960, being preceded by a special sta tistical session. The consensus at this meeting was that there is no need et present for continued limitations on international supplies of sine. The meet ing noted with approval the plana in a number of countries to curtail market ings of lead until at least September 30, I960, and considered those plans to be helpful in the Interest of a current balance. Twenty-four of the twenty-five members were represented by delega tions at the recent meeting. The delegatlone Included, in the aggregate, some what more than 100 pereons. Some member governments accredited only one or two f .-1 *!? :.. jrflV r L l r- i LI&21109 -U- C. W. HICH0L3 persona, but others vere represented by about hslf a doaen to i dosen. Ap proximately one-half of the Individuals in ttendance vere officials of gov ernments} the others vere representative* of Industries In their respective countries. the normal procedure in nestings of the full Study Group and son* of its committees, such as the Administrative Conaittee and the Sconotrio Com mittee in the recent session, has been for each delegation to havs a single spokesman, usually an official of the particular government. Participation in the discussion has been more general in other committees or subcommittees where mors technical subject# vere under consideration. This vss especially true in various statistical groups. Representatives of Industry have taken a direct and major part in those discussions. There are, of course, also many informal exchanges of views among participants on the occasion of Study Group meetings, and these become an Important part of the total proceedings. As the Study Group embarks on its full program in I960, It will havs the benefit of the experience which has been gained in the operation of other ' somewhat similar bodies. A commodity study group is no longer thought of as strictly temporary or as a prelude to a commodity agreement. Instead, the primary emphasis is on the question vhethor s continuing program of exchanging information and views can substantially Increase the degree of stability in the lead and tine industries on a world basis simply by promoting better and ] wider understanding, earlier and more accurate appreciation of trends, and a more responsible approach to problems of common international concern. If the | member countries believe that this is possible and attach importance to a i 7- greater degree of stability in these industries than they have had, then the Min problem of the Study Group is to devise the most effective methods of operation for these purposes. I t ^^f^pnj^111 ' >-: 0i-'-'.... ..' " _wa?yawlH ^otstoriiy C. V. MICHOIS - 12 - This will involve a question of ways to organize and conduct the meetings to make then moot productive. Multilateral discussions bava super seded tha former rallanca upon bilateral procedurea. Some new techniques have avolvod to facilitate thia development in the conduct of international commod ity relatione. But the uaual procedurea etlll draw hoavily upon the forma which were traditionally employed for debate or negotiations. Since the pur poses of the Study Croup aro different, seeking chiefly the development of information and exploration of rlewa, there appeara to be a need for some fur ther evolution away from traditional procedurea in order to draw into the de liberations a more active participation by a larger number of the people in attendance, with less formality. The depth and range of substantive discus sion might be increased considerably, to the benefit of all member countries, if the proceedings offered greater opportunity for active participation In the discussions by additional members of the delegations, especially industry rep resentatives, it being understood, of course, that they would be expressing their individual views. With these considerations in mind, it has been suggested that future sessions of the Study Group might include a special committee on production, consumption, and trade. This part of the Study Croup session could be organ ized as an exploration of technical and economic questions, open to sll mem bers of the delegations. Specific tcpics could be on the agends, and papers might be circulated in advance to focus the discussion. There need not be any attempt to reach conclusions, but s report of the discussion would be made to the full Study Croup. It is recognized that an arrangement of this kind could present some dangers. There certainly would be problems which have not yet been fully explored. But the member governments htve already recognized that reliance on customary procedures nay not draw out the full contributions which persons in sttendancs are capable of making. The Croup believes that some lm- I uv ' s* t - r LIAZllH ; - 13 - C. V. HICHOLS provements can be devised which will be practical and will make the meeting* more valuable In projecting future trend*. Another problem will be that of drawing upon a sufficient crca* sec tion in industry and other competent source* for Information and view* which can help in preparing for Study Group meetings. Similarly, after each meet ing, there will be need to make sure that the course and outcome of Study Group discussions become known sufficiently clearly and widely In the Indus tries concerned to give practical effsct to ths desire that Study Qroup ses sions can have a tangible influence on the actual conduct of Industrial opera tions In the direction of the greater stability In which member governments are interested. The operations of producers and consumers might be Influenced In important respects, and in a generally constructive direction, by the work of the Study Group. For exarple, a more responsible management of stocks slight become more Justifiable and more likely. Some erratic variations in commercial stocks, even though conceived by Individual coepanles as being defensive, have, in the aggregate, made an aggressive addition to the dastabillring influences otherwise at work. There is also a possibility that some important consuming industries will attach such significance to stabil ity in their raw materials that any extent to which they believe the prospects for reasonable stability in lead and tine are being improved will increase their willingness to plan on the use of these materials. This could be a basic contribution to the expansion of consumption, which is the dominant considera tion in a satisfactory future development. Since the personnel of each delegation and the total attendance et Study Group sessions oust be somewhat limited, this problem of adequate com I munication with many other people in member countries, both before and after Study Qroup sessions, will need very careful attention, perhaps most especial ly in the U. S. iailfc.il r > illH a ii. jaiiniMiiW k2UlJ U f- VITh "i C. V. KICH0L3 - Hi - The Group may have to decida whether it will consider the possibil ities of an International agreement Involving buffer stocks, export restric tions, or other controls, Tha terms of reference would permit this subject to be raised. The question would be whether any considerable number of member governments thought that a full examination of such proposals would be useful. Some members have already indicated their view that it will be appropriate for the Study Oroup to discuss regulatory measures for purposes of stabilisation. Other member* have already made clear that they believe the long-term inter ests of lead and sine on a world baaia will beat be aerred by avoiding addi tional controls. The United States Qovernment maintains its well-known position that there are few situations in Wiich intergovernmental commodity agreement* are appropriate or deairable. The U. S. view eqohasltas that the circumstancee in which lead and sine are produced, sold, and consumed make it very doubtful that an intergovernmental agreement to control either or both of these materi als would be feasible of negotiation or operation. There are, of course, some areas of interest to lead and sine in which the Study Oroup cannot be expected to perform. For example, the Oroup cannot participate in the programs of research, product development, and commercial pro motion which the industries In several countries are pursuing. These, however, have been noted in the Study Oroup discussions. They are recognised as having highly constructive possibilities. The Group appreciates the necessity to avoid actions which might prejudice the success of these lsportant programs. The Study Oroup cannot be expected to lend itself to advancing tha in terest* of some members at the expense of others in those matters upon which - there are conflicts of interest. The focus of the Chroup will have to be in tha area of common interest, that is, conaunptlcn expanding at s substantial and rather regular rata with increasing requirement* being supplied at raasonably tj 1 * r. * u\ r * t 1 I ajpuj-w .: r "it t 'il<r^*<~'-ii...... ..1_ !* --i LIA21113 BT^ltfllg ) ' - 15 C. V. NICH0I3 stable prices which recognise the iiportsnce of workable balance of supplies and requirements along the road of long-time growth. This is the plane of mu tual Interest where a basis can bo found for effective cooperation among pro ducers and consumers, exporters and importers. The Study Group is not an instrument through which fast action or quick results can be obtained. Its eventual influence, however, could be deep and wide in the industries which supply or require lead or sine. Progress has been made in the ability and the desire of the national delegations to cooperate in matters of common Interest. The members are dis tinguishing more clearly than they did a year or two ago the subjects and the types of activities which can usefully be undertaken in this forum and those which cannot. What comes out of the Group must depend on what the member countries put in it. The beginning is suspicious. The lndiestiona are favorable. There is wide participation, and the Study Group has active support. It could become the center in a net of world-wide information and communication. The Study Group is a good tool for important works to raise the level of understanding in many places; reduce the causes of international discoid; and improve the prospects for growth in those industries without serious interruption. tit ANNEX I The International Lead and Zinc Study Group Member Countries Australis Belgian Congo Belgium Canada Czechoslovakia Finland Franca Guatemala Federal Republic of Germany India Italy Japan Mexico Morocco Netherlands Norway Peru Poland Spain Sweden Union of South .Africa Union of Soviet Socialist Republics United Kingdom of Great Britain and Northern Ireland United States of America Yugoslavia i-  "' ' "\ C. V. NICHOLS - 16 - ANNEX II The International Lead and Zinc Study Group Terms of Reference Membership 1. Membership of the International Lead end Zinc Study Group shall be open to the Governments of States Members of the United Nations or of appropriate spe cialize! agencies or to Contracting Parties to the General Agreement on Tariffs and Trade, which consider themselves substantially interested in the production or consumption of or trade in lead and zinc. Function* 2. The group shall provide opportunities for appropriate intergovernmental con sultations on international trade in lead and/or zinc and shall make such studies of the world situation in lead and zinc, as it sees fit, having regard especially to the desirability of providing continuous accurate information regarding the supply and demand position and of its probable development. For this purpose the group shall arrange for the collection and dissemination of statistics, making use of existing sources so far as practicable. 3. The group shall, as appropriate, consider possible solutions to any special problems or difficulties which exist or may be expected to arise in lead or zinc and are unlikely to be resolved in the ordinary development of world trade. U. The group may report to Member Governments. Such reports may include sug gestions and/or recommendations. 5. For the purpose of these terms of reference, lead and zinc shall include scraps, wastes and/or residues and such lead and zinc products as the group may determine. Operation of Study Group 6. The group shall meet at times and places mutually convenient to its members. 7. The group shall adopt such rules of procedure as are considered necessary to carry out its functions. 8. The group shall tasks such secretariat arrangements as it may deem necessary for the proper conduct of its work. 9. The participating Governments shall contribute to the expenses of the group on a basis to be determined by it. 10. The group shall remain in existence as long as it continues, in the opinion of the participating Governments, to serve a useful purpose. 11. The group shall make such arrangements as it considers appropriate by which Information may be exchanged with the Interested non-participating Governments of the States referred to in paragraph 1 and with appropriate non-governmental and inter-governmental organizations. The group shall cooperate in particular with the Interim Co-ordinating Committee for International Commodity Arrange ments which, under resolution 557 7 tXVIIl) of the Economic and Social Council, .has the function of co-ordinating the activities of study groups and councils. ffw wijDiy,wi"un. j>i >.w p w : Lifc2lU5 TABLE X AOTCMOTIV^ RATTERT AMI BATTERI LEAD STATISTICS HAKCH I960 ___________________________ Oriii x-ipoo.-ttoj-pt j^r*J,o4l"i2i-sy!Sii___________________________ __________ _ VEHICLES Composite Eatim&ed Opinion I960 1959 1958 -Iff?- ... -M2L __ -lg* Total motor rehlcles registered Jn 0. 3. Ne'j rotor rchioJ.es registered Reregistered Tohlcles in D. 3. (Total rag-new rag.) Cfld rotor vehicles scrapped Quin in total registration (by diff*) Passenger Tehicles mfgd* with 12 volt syatemO, accom* Production of all motor vehicles in U3* Export sales of 0* S* motor rehlcles lanort of rahicles Into 0*S Vehicle idles in U* S* (x 1,000,000) <i) a) u) (l) ( (i) 71,762 6,950 6U,G12 5,63b 1,316 37,U7 6,750 300 500- 72S 70,1*1*6 6,967 63,1*79 5,ooo 2,118 30,167 6,729 312 719 656 68,328 5,376 62,952 !*,900 1,169 23,200 5,135 M 1*59 661* 67,159 6,0*0 60,319 L.261* 1,976 17,821* 7,221 373 273 612 65,183 6,&50 58,333 l,9l*3 2,1*56 10,981* 6,921 398 112 628 62,727 8,127 5b,600 b,392 b,16b 5,125 9,169 bbT 60 603 58,51*3 6,365 5?,173 b,353 2,288 3,1* 3b 6,601 1*01 36 561 BATTERIES: Auto* doeaestio 0*E, mfgd* by U* S. Mfgys* (3) 6,9b6 tractor 0, E* mfgd* by 0* S* Hfgrs. (est*) 275 Auto* replaces nt mfgd. for export by U,S Rfgrs (3) 221 Auto* domestic replacement mfgd. by 0* S. Kfgrs* (3) 28,369 Total auto* It Tractor batts* mfgd. by 0*S, Kfgrs. 35,811 12 rolt only <fcrastic 0*E. mfgd* by 0* S* Kfgrs* 6,9b6 12 rolt only domestic replacement mfgd* br 0*S.Mfgra. (eat) 13,500 Total 12 Tolt mfgd* bf 0* S* Kfgrs* (est*) 20,l*L6 Percent 12 rolt auto, batteries mfgd* in 0. 5* (est*) 585 Ratio to rs-reglstored cars (3) LEAD COBLntD BT BATTHCf IWOOSTST: 6,750 275 221 28,701 35,9b7 6,750 12,900 19,650 555 2.26 6,729 280 220 27,1*95 3li,72ii 6,729 9,075 15,80ii 1*65 2-31 5,135 263 222 25,270 30,850 5,135 7,325 12,1*60 1*05 2.50 7,221 27l 271 25,91*3 33,709 7,221 5,967 13,188 395 2.31 6,921 277 361 25,01b 32,573 5,859 1,536 7,355 235 2.33 9,169 377 bCll 25,828 35,778 3,691 U*2 b,133 125 2.12 6,601 227 1*09 23,771 31,008 1,030 31 1,061 3.1*5 2.20 Grids', posts, etc* (x 1000 tons) (2) Oxides (x 1000 tons) Total lead used by battery industry (x 1000 tons) (2) (2) Ices lead used for industrial batteries (eat*) (x 1000 T) Lead used in automotive batteries (by diff*) (x 1000 T) Calculated lead per arerage automotive battery lbs* ISO 180 yo 31. 326 196 186 382 U> 3b2 19.0 182 179 36l 35 326 18.8 160 153 313 28 285 18U 186 175 361 3 323 19.2 192 179 371 12 329 BO .2 196 18b 380 3b 31*6 19b 337 28 309 20.0 71) ISA 15?9-60 Tear B5ci ' (2) Bureau of Mine* (3) AABM 1959 Tear Book shows shipments which for practical pnrpoees rs considered sase as producU.au 1953 56,255 6,669 b?,5S6 b.o.1* 2,95* bob T,37> 325 Jl 5bb 7,323 207 1*07 23,61b 31,551 bob 6 blO 1.35 2.06 J$1 37 320 20.3 ' 1 *9T gwnr w % V" ** >- ''fldar-jv1. yrt&^rr* ffigggy9W t 'r I LIA21116 TABU n __ MARCH i960 BATTFRr PRODUCTH* RELATIONSHIP TO VEHICLE RKOISTRATXCHS AMD VEHICLE MILES 1959 1958 % Replacement to Total Vehicle Regietratlens 39 37 % Replacefueiit to Reregistered Vehicles U3 1*0 % Rspleoenwnt to Previous Tears Reregistered Vehicles hk 1*0 % Replacement to Reregistered sdrrco flwrapped Vehicles m 1*3 % Total to Total Vehicle Registration 1*9 hs f Total adrms Export Batteries to Total - Vehicle Registration 9 1*5 > Replacement adnuB Export Batteries to Total Vehlols Registration 39 37 ReplacejMxit Batteries per Million Vehlols Miles 39.5 38a Total sinus Export Batteries per Ml111cm Vehicle Miles U9.2 1*5.8 Variance frcn jeer to year less than other relat lctusblp# 1957 39 1*1* U5 1*6 50 1*9 3 1*0.2 51.2 Calculated f roa Data In Table I 1956 1955 195U 1953 HIOH 38 la ia 12 S' 1*3 1*7 1*5 1*8 1*6 1*9 1*8 1*9 1*7 52 50 52 52 so 56 53 56 56 58 5i 52 55 58 38 la 1*0 la la 39.9 1*2.8 1*20 1*3.5 1*3.5 50.8 57.9 5i*.o 56.8 57.9 at o ao s *1*0 Ut 1*5 1*8 51 52 39 lao 52.2 LOW *2 1*0 1*3 1*5 1*5 37 38a 1*5.8 nwui j *sw'. *imj0ypmr+i>w, Ll^Ul7 *H-rmiem FOR RELUSE NOT EARLIER THAU 12 NOON, THURSDAY, APRIL 7, I960 RECENT DEVELOPMENTS IN WORLD LEAD AND ZINC MARKETS By R, Hendrick* Executive Vice President The Consolidated Mining end Smelting Company of Canada, Ltd. I am pleased to have the opportunity of addressing you today on "Recent Developments In World Lead and Zinc Markets" because I believe that marketing con stitutes the critical segment of our business. I should perhaps warn you that while I shall give you sense statistical and other Information on lead and zinc consumption, the primary theme of ny talk Is International co-operation. However, I hope that before I finish you will all agree with me that international co-operation )>ai a great deal to do with market development and that it ie a subject of major concern to us all. The ores of lead and zinc are unevenly distributed throughout the world and all countries are not equally well supplied with their own mines. Some coun tries, such as Africa, Australia and Canada, have resources in high grade ore which allow production of much more than they can use. Others, such as Great Britain, 1 India, Japan and the United States, are unable to provide for their consumption from domestic ores and so are compelled to import. Consequently, there is much traffic In lead and zinc in various forms from one country to another and there 1s every expectation that this will increase. International trade ie thus an integral part of the lead-zinc Industry, and International co-operation Is essential for It* well-being. This latter fact Is receiving growing recognition and I submit that the most Important single international development in the industry in recent years is the Increase In co-operation that has been brought about. This Is not something that comes automatically. It has had to be initiated, and to be maintained and (Presented at Joint Session of '- American Zinc Institute and Lead Industries Assn., St. Louis, Missouri, April 7, I960) i. N 227.07 iiMWWWmiUB'i ^wW= - 2- R. HENDRICKS extended by deliberate action. All of us can make some contribution In this direction. Let me remind you of some of the ways -n which increased co-cperatlon is being translated into effective action. For many years there has been considerable freedom between producers to exchange technical infomation relating to methods of raining, concentrating, smelting and refining. This is good, and it was encouraging to hear recently that the Russians r,iy open their lead and line mines and smelters to visitors from certain Western countries on a reciprocal basis. I believe that such ex change on the technical level is beneficial not only for the direct results but also in a broader sense. I hope that all of us will do what we can to encourage this sort of thing. We have Just heard from Mr. Nichols about the International Lead-Zinc Study Group organized under United Nations' sponsorship. Kay I add that I have heard at first hand from delegates to these United Nations' meetings that a grow ing sense of mutual confidence and a resulting willingness to co-operate in creating a healthy lead-zinc industry have been clearly In evidence. Hr. Nichols mentioned the important matter of statistics where specific progress is beir^ shown. Complete and accurate statistics can be of great help to everyone in the industry but they can only be assembled as the individuals concerned supply suitable information. I think we should all give this matter serious considera tion and, as far as possible, contribute what is requested both as to matter and form. Hr. Nichols also explained how, at the United Nations' conference held in New York about a year ago, steps were taken to set up the Stucty Group to' which I have Just referred. At the same conference in New York there was frank discussion of the difficulties facing the industry because of the over-supply t: situation and you also know how individual producers recognized the problem and . .1.1 ifjSi'ipiltfjj|i)Xijj^w\,fi'i: ri ' i-- ---------------------------------'*>*- *->-*"**** ....................--' n. 'll M B w; "MJIiPit!> LlA21liq 3 R. HENDRICKS mde various adjustments to deal with It. The benefits of the resulting action to both producers and consumers are nov apparent to all and it will suffice for me to point out that at the recent Geneva meetings of the Stuffy Group it was recognized that the problem has been resolved with the sine market now in an approximately balanced supply-demand position. Improvement was also seen in the lead situation but some over-supply was still in evidence, requiring atten tion for a time. It is clear that the Stucfy Oroup has amply demonstrated Its value and I hope that it will continue on a permanent basis. It seems to me that such an international group could provide a continuing forum for the discussion of major industry problems which have international implications. It is also in an excellent position to set up committees which could investigate and report on matters of mutual concern. Unbiased, factual reports thus provided could be the basis for recommendations to governments for appropriate action. One area for such study might be the effects on the lead-zinc industry of governmental restrictions and other legislative action regulating international trade. Another area of increasing international co-operation that I should like to discuss is in the trade associations, of which I can mention only one or two. The American Zinc Institute itself now has maty associate members representing an important part of the industry outside the United States. Associate membership allows full participation and representation on the In dustry Development Committee and pertinent subcommittees, an arrangement which In ny experience is entirely satisfactory. In the other direction, I think of the Zinc Development Association, whose headquarters are In London, England. This Association formerly obtained its support from ths United Kingdom, Australia and Canada, and was mainly concerned with promoting the use of sine within the United Kingdom, although its literature was also circulated In - s :I LIA21120 w<; i -L- R. HENDRICKS Australia and Canada. Recently the interests of the Association have been ex tended to Europe and now there are a number of parallel co-operating association* in various European countries. Still more recently a number <$f companies in the United States have been contributing to the support of the Association and par ticipating directly in its activities. lhe Zinc Development Association Includes a number of committees work ing in specified fields in the United Kingdom and aimed at furthering particular uses of sine. There are also affiliated groups, such as the Zinc Pigment Develop ment Association which is planning a co-operative research program on sine oxide and lithopone in emulsion paints. Other groups concern themselves with rolled sine, hot dip galvanizing, analytical techniques and other fields. Among the co operating European committees, I might mention the European Zinc Producers' Technical Committee whit^i, at this time, is having a meeting in London to which supporters from all over the world were invited. Also, the European Pressure Die Casting Committee has an international conference scheduled to be held in Stress, Italy, next month. The previous conference in this series held in Paris in 1957 attracted over 300 delegates from 15 countries, and that to be held next month is expected to be even wider in its Interest. I was pleased to learn that over 70 delegates are expected from the United States, Including official teams from the American Die Casting Institute and the American Society for Die Casting Engineer*. Representatives from Canada will also be attending. Similarly, the European Central Galvanizers Association is planning an international conference on galvanizing to be held at Interlaken, Switzerland, In 1961. More could be said on this subject but I give these as examples of how - V trade associations, originally relatively local In interest, have, during the last few years, been used as a means of International co-operation to develop the use of lead and zinc throughout the world. I hope that as individuals, and --- **'*-r*.v^evyr* .fyi'^C^'J'gu w j w w LIA21121 > -5- R. HENDRICKS in our own particular trade associations we will extend co-operation of this type r> ( ) X an confident any such action would work out to the mutual advantage of all con cerned. Another very encouraging evidence of co-operation is in our own AZI and LIA Expanded Research Program. Yesterday Dr. Radtke reported the work on lead and later today he will review that on line. I do not wish to duplicate his re ports but I think it is worth remembering that the sponsors of this Program com prise 21* producing companies representing about half of the world's mins produc tion of lead and ainc from three continents. I understand that other companies cot now participating are anxious to Join us in this work. I am sure that aqy such who are active in the lead-iinc Industry would be welcomed by the present sponsors. It is also worthy of note that the actual research work sponsored under the Program is being carried out wherever the situation is favourable, re gardless of international boundaries. It is most heartening that this fine level of co-operation has been achieved, and I believe that you will agree with me that the results augur well for the future. However, if the industry is to enjey the full benefits from the re search work which we are supporting financially, there are a number of things which we can and should do. The responsibility of producers and fabricators is not ended until research results are translated into commercial products and sold in the markets of the world. We must keep in close touch with the research programs and exploit the results in our own operations and products as may be applicable. We must see that our engineers and technical people are constantly aware of their responsibility to evaluate and apply research findings in this way. In the research and development effort of our individual companies we must plan programs which will co-ordinate with the Expanded Program and further the consumption of lead and sine. .i^r ~ ft^ai^i.^fe--^?^4vife.*pri?f^ ; LlA2ll22 1 i 8 - 6 R* HhKDRICKS While there Is ground for encouragement in our research work, there Is no room for complacency or thinking that we can reduce our efforts. Competition is extremely active and is coming from directions not thought of two or three decades ago. Let me mention Just two examples to illustrate what I have in mind. After 12 years of research and development at a reported cost of $6 million, DuPont Company now has under construction a plan to manufacture "Ityorll.* This is a new plastic printing plate material which will compete with sine in litho graphy and photoengraving. Another plastic developed by DuPont, Delrln," 1* threatening line in die casting. Delrin is a product of 10 years of research and development, reportedly costing $lj? million. To meet this sort of competition will take our best united efforts if line and lead are to have the place we want for them in the markets of the world. Although we are off to a good start, it is obvious that our research program must be greatly expanded and backed up ty the whole-hearted co-operation of all participating companies. At this p>olnt I must beecne more specific and attempt to give you a factual picture of the consumption of lead and zinc in the various parts of the world together with indications of the prospects for growth. In the present discussion, referemes are to the Free World because we do not have reliable statistics from the Soviet Bloc. However, metal from this area is appearlr^ in Free World markets and we must keep these countries in mind and hope that in due course information from them will become available. According to preliminary estimates, world consumption of both'zinc and lead improved in 1959, reaching levels appreciably above those in 1958 and practically regaining the previous peaks in consumption reported in 1955. Had it not been for the steel strike in the United States, world consumption of sine would certainly have been the highest on record. With further improvement forecast for both metals in I960, the tide appears to have turned and world consumption of both metals to be moving upward again, though at a relatively j 11' i>,.!M|p|Hlp LIA21123 y' k>: l-;X-v - 7 H. HENDRICKS slew rat* unless we can achieve a break-through ty new development*. While the world picture 1* somewhat encouraging, that here In the United States la far otherwise. Although tine consumption at 93L,OOQ tons In 1959 was considerably above that in 1953, it was no higher than in 1957 and appreciably less than in a number of earlier years. Since it had been hoped that consumption would reach at least 1 million ton* in 1959, the actual achievement is certainly disappointing. It is true that one important reason was the eteel etrike, a factor beyond our control, and with this eettled the Department of Commerce now suggests about 1,100,000 tons consumption in 19&>. This would be an improvement but it would still not reach the level of 19?5. We thus have to face the disturbing situ- . ., ,_ j ation that while the general industrial activity of the United States is advancing " and while maty other countries are increasing thsir consumption of sine, here, in the world's most important single market, ground is being lost. It Is evident that we must continue to seek methods of increasing the consumption of zinc, recapturing, if possible, any uses that may have slipped away too easily, and strengthening present uses which may be threatened. In this connection the importance of main taining a stable price that is competitive in all aspects with other materials can not be stressed too often. Having given you the dark side of things I should mention seme bright spots. It is encouraging to see the increased demand for galvanized products. Seme aspects of this industry will be discussed by Hr. Jennings later today. Mean while, may I say that I foresee a tremendous potential for galvanized products if '. we can ensure the quality of material and actively encourage its use wherever properly applicable. The *inc die casting industry is a classic example of co operation in action. The success which this industry has achieved In offsetting further Inroads by new materials is noteworthy, but, as I have already Indicated, the Job is .t finished. It never will be. While the industries mentioned LIA21124 ',' : ^- ~sasvut&. 8 R. HtNDRICKS constitute the bulk of alnc slab consumption In the United States, v must not t |: t neglect the numerous small uses of sine which make up the balance, for X think It Is generally true that existing uses can be maintained and expanded with much i leas difficulty than Is required to develop s new use. Kary of oy remarks concerning alnc apply equally to lead. In 1959, the United States consumption of lead at 1,083,000 tons represented sn increase of about 100,000 tons over 1958, but this was only t return to the sane level as In 19U3 and was still considerably below that In 1950* If we allow past condi tions to continue we thus have no basis for expecting significant Improvements in the future. No doubt we can adduce various reasons which account for the declin ing use of lead, but In so doing we merely point cut Instances where competitive materials have taken over our markets. The situation challerges all of us to i support an aggressive program of research and development In order to protect the markets we have and develop new ones. U After these critical renarks retarding consumption in the United States, I must hasten tc add that we are in little, if ary, better situation In Er-" Canada. Zinc consumption at 68,000 tons In 1959, tncugh higher than for several years, was well below that In 19'u2 and 191*3, Even so, 1959 Is con I;, { sidered to represent an Inflated demand due to the steel strike in the United r I States. Galvan!?.ing Is the most encouraging specific use cf alnc In Canada but die castin", brass and others are relatively disappointing. Primary load con i , sumption at about >*5,000 tons In 1959 was below that in 1955. As elsewhere, :e decreases In the use of l^ad in cable eheithin, and pigieats were marked. i Canada Is thus a..other country which needs ar* -easlve research and we ho;* thr.t V. the results of the Expanded Program and individual activities will lead to a real Increase, not only as population increases, but In consumption per capita. LIA21125 sq: - 9 R. HENDRICKS Before I speak about the consumption of lead and sine In Europe I should like to say a few words on the European Common Market (the Inner Six) and the European Free Trade Association (the Outer Seven). The formation of these groups highlighted the economic and political developments in Europe during the past three year#. The Inner Six (France, West Ceroary, Italy, Belgium, Luxembourg and the Netherlands) fora a compact geographic and industrial group in Europe with a market of 165 million people. The Seven Free Trade Assoclatea (United Kingdom, Norway, Sweden, Denmark, Austria, Portugal and Swltterland) encompass a total population of some 90 million with a combined national Income two-thirds a# large and total trade three-quarters as large as the six Ccmon Market Countries. Both groups have as their current objective the attainment of free trade within their boundaries through the progressive removal of tariffs and quotas on industrial products. Basically, however, the Common Market purports s to be but the first step towards the ultimate goal of complete political and economic integration, seeking eventually to place industries in member countries on an equal competitive footing. In contrast the European Free Trade Area is a plan for a free trade area only, and member countries will keep their individual tariffs applicable to ncn-membere. In both groups, it would seem that the possibilities for tcoxa'c development and industrial expansion are vastly im * - proved, provider, that trade on a world basis is not stifled. It lias been feared that the Inner Six might eurround themselves with a high tariff barrier, v.iking the area practically inaccessible to the rest of i the world. However, the rates which have been announced by the Ctvem.t. Market p > f have demonstrated a c ditabV- spirit of co-operation. For lead and cine metal, t the tariff is to be 0.6d (U.S.) per pound, while ores, waste and scrap will be exempt. In addition, eitjniflc.vrt propertions of the metal irrorts cf Individual i - 10 R. KENDRICKS U I countries will also be exempt. As tariffs go, thess proposals must be consldersd reasonable and'indicative of a willingness to trade with other countries in good faith. It la expected that by the formation of the Common Market and Free Trade Association, living standards In the participating countries will be raised, thus creating a demand for consumer gooda which otherwise would have taken maty years to develop on an individual basis. Already the European market ia under going a revolution that many of us on this side of the Atlantic nay not fully appreciate. Incases arv. rising and are being translated into higher living standards. Europe is in the midst of a break-through to mass car ownership such as took place in the United States in the 1920's. Present total vehicle popula tion In the Common Market countries Is 16 million and by 1970 is expected to reach 38 million. This is only one example of a growing industry in which much lead and sine is consumed. Similar growth is being shown in the construction in dustry and there is a great increase in demand for all types of appliances. All of this augurs well fer the fugure consumption of raw materials, and we, as pro ducers and fabricators of lead and zinc, must do our utmost to ensure that our products are priced at levels that will permit the fullest participation in this economic expansion. To do this we must keep our costs down and encourage free trade wherever and whenever possible. The total consumption of zinc In Europe has shown almost uninterrupted growth since 195U, and since 1956 it has exceeded that in North America. Germary, France and the United Kingdom together account for almost 70 per cent of the European total and 30 per cent of the world total. One of the most promising U3ea for zinc in Europe is in galvanizing. There are now four continuous strip lines in the United Kingdom, all working at capacity, five in France, two In Belgium with a third under construction, and three in other countries.  . L1A211 ?7 i . ju iu u R. HENDRICKS Oalvanized sheet is being used in some automobiles and galvanised structural steel is finding continuously vider use for buildings and other purposes. Zinc spraying is also maxing good progress with more than 1000 tons expected to be used on the new Forth bridge in Scotland. Zinc die casting in Europe has never experienced the same growth as in the United States. On the other hand, in spite of much dissatisfaction with plated products there was not a marked treQd away from them. Tha average Britlah car now uses about 50 pounds of die casting and with the results of recent research available, it is felt that this appli cation is secure for the present. On the Continent, however, much less sine is used in cars, and it has been reported that in France automobile manufacturers are turning to plastics because of what they term the present high cost of sine. In Europe the decline in lead consumption during the last few years now appears to have been wiped out and the estimated 1959 total is up to that for 1955. Oermaiy and France show the most encouraging growth at present, but consumption in the United Kingdom also improved last year although the outlook for I960 is not considered too good. Our friends in the Lead Development Asso ciation, while active in various projects of their own, have particularly asked me to stress the importance that they place on the Expanded Research Program and to assure you of their desire to co-operate in ary way they can. Turning to Australia and New Zealand, sine consumption has generally been better maintained in recent years than In maty other countries, and pre liminary estimates are that 1959 consumption will about equal the former peak of 1957. As elsewhere, galvanizing is of major importance but die caetir^ is also showing good growth. Lead consumption, on the other hand, has not been doing so well and in 1959 was apparently less than In aiy year alnce 1951*. This is in spite of the fact that in these countries lead still has an impor tant place in the cable sheathing Industry. One remarkable point about Australia and New Zealand is the high per capita consumption of both lead and f r l | t f "" :^':"';""`r. ' LI A21128 l 12 H. HENDRICKS I zinc. In this respect they are well above the United States and far ahead of Canada, a country of roughly comparable population. Let us now take a quick lock at Asia where Japan le the outstanding country as far as our present Interests are concerned. As a result of aid from the United States coupled with vigorous local activity, the econoray has shown re.aar>able recovery and continuing growth. In sine consumption there has been uninterrupted Increase for at least 8 years. The consumption for 1959 is esti mated to be close to 170,000 tons, nearly 2$ times that in 1951- A number of continuous galvanizing lines are now In operation In Japan and In 1958 the zinc consumption In galvanized sheet alone was over 76,000 tons. This may be com pared with less than 20,OX tons, ten years previously. Die casting has also developed strongly and in 1956 accounted for 10,0CO tons of zinc. With further growth expected In automobile manufacturing, the die casting industry should continue its progress. Lead consumption in Japan has not been so satisfactory. Although in 1959 consumption reached 75,000 tons, a 12 per cent Increase ever 1958, it was still more than 20 per cent below that in 1957- Again the main loss was in cable sheathing, although consumption in other uses also declined. It nay be expected that the growing automobile industry will strengthen the demand for lead. India, where industrial development is only beginning, has considera ble potential as a consumer of lead and zinc but a major difficulty is the very limited domestic ore suprl.v and a chronic shortage of foreign currency for imports. The present consumption of zinc is about 65,000 tons per year, some 50 per cent of v..; ch is ns : in galrarlsing. At least one cf the new State-owned steel mills Is expected tc be doing galvanising within a few months and tne growing demand for consumer products should increase activity in zinc die castiog. 0. fie l<il fcrecartv suggest about 170,000 tons annual consumption ! tf r - LIA21129 \ if !O i C) 13 R. HENDRICKS ty 1970. In view of the currency difficulties, the Government tends to favour aluminum since domestic raw materials are available for local production. Lead consumption, now about 22,000 tons per year, Is expected to Increase to about 55.000 tons per year by 1970. I suggest that India deserves our serious atten tion to see If there is not something more that the industry might do to pronote uses of lead and zinc. Elsewhere In Asia there are some possibilities. For Instance In the Philippine Islands a galvanizing industry is developing that could consume 15.000 to 20,000 tons per year of zinc in the foreseeable future. It has also been reported that the Philippines will be making their own cars in the next three to five years. Information on Ccaaunlst China is sketchy and unreliable, but produc tion of refined zinc in 1959 is indicated at 66,000 tons and at this level the supply is estimated to be slightly deficient. The production of refined lead in 1959 is indicated at a little over 80,000 tons. A slight deficiency of lead is also indicated. Consumption of lead and zinc in South American countries has not shown apy startling growth in recent years. The consumption of zinc in 1959 is estimated at about 50,0j 0 tons, up 3lig'ntly over i-ecent years, while lead at an estimated 70,000 tons in 1959 is also slightly higher than in rece nt years. These countries seem on the brink of further industrial develcjmeut with the reported increase in uto--otlve production, using I'm illy manufactured parts wherever possiblo. This industry is hi.'ng developed to red-ce the irain foreign exchange. It has K-eo estiwited that t;e prouei-t zinc rcnsun.ption of Brazil, which is about 20,000 tons per year, will rise to 37,000 tons in I960 with a further expansion to 51,'Xa ) tons opectud by ld65. It has also been reported T t - Hi - R. KENDRICKS th*t. ^ now plant for the production of die castings in Brasil is to be ciuov ''ctec-. The current consumption of lead in Brasil is about 25,000 tons and is said to be on the increase as a result of the automobile industry. The consumption for I960 is forecast at h0,000 tons. Finally, let me say a word about Africa. Statistics of consumption are conflicting, some showing continued increase over a nuafcer of years and others a substantially static condition. However, they all agree in reporting that the con sumption of lead and sine is very low in relation to the population. Africa is awakening and will no doubt make rapid strides towards industrialisation. The con tinent has abundant resources in lead and sine and I believe has also a great potential as a consumer of three rtetals. At this time there may not be much that wo can do directly to promote the use of our metals in Africa or in other parts of the world where much of the country is based on a traditional agricultural economy. However, we should be aware of these countries and on the alert for opportunities as they progress towards maturity. I have reviewed seme of the encouraging signs of increasing co-operation and I have discussed some features of consumption In specific areas, all of which should impress upon us the international character of the lead-tine Industry. It has been stated on good authority that interrational trade is now generally freer of restrictions than at ary tins in the last 30 years. This is good, but unfor tunately, and particularly aa affecting lead and sine, there are areas where artificial barriers have recently been set up and where various political situa tions are still a serious hindrance to trade. I would be remiss if I did not point out some of these and urge that we approach our individual problems in a more broad-minded and co-operative attitude. First I want to urge that as a general principle Industry should try to solve its own economic problems rather than appeal to governments for help. " a** '` " '""......... : LlA?ii3i s4 - D* - H. HENDRICKS th.it * rt)V plant for the production of die castings in Brasil is fo be cc..,`-* >cteu. The current consumption of lead in Brasil is about 25,000 tons and is said to be 1> f i i I on the increase as a result of the automobile Industry. The consumption for I960 is forecast at U0,000 tons. Finally, let me say a word about Africa. Statistics of consumption are conflicting, some showing continued increase o*er a mnbber of years and others a substantially static condition. However, they all agree in reportly that the con sumption of load and sine is very lew in relation to the population. Africa is uwakening and will no doubt make rapid strides towards industrialisation. The con tinent has abundant resources in lead and sine and I believe has also a great t potential as a consumer of these metals. At this time there ray Dot be much that we can do directly to promote the use of our metals in Africa or In other parts of the world where much of the country i< based on a traditional agricultural economy. However, we should be aware of these countries and on the alert for opportunities as they progress towards maturity. X have reviewed some of the encouraging signs of increasing co-operation and I have discussed some features cf consumption in specific areas, all of which should impress upon us the international character of the lead-xinc industry. It has been stated on good authority that internstional trade is now generally freer cf restrictions than at ary time in the last 30 years. This is gcod, but unfor tunately, and particularly as affecting lead and sine, there are areas where artificial barriers have recently been set up and where various political situa tions are still a serious hindrance to trade. I would be remiss if I did not i point out some of these and urge that we approach cur individual problems in a >. more broad-minded and co-operative attitude. First I want to urge that as a general principle Industry should try to solve ite own economic problems rather than appeal to governments for help. easo*****!*-!!!,,* 4t|jggf 9PPI -- "'",i 1 ............ LIA21132 "> 1 j - 15 - R. HSNDRICXS If ve, as producers, could get together on an international basis and frankly ex change ideas and discuss the broad Industry problems, I believe we would find that vary of our ultimate objectives coincide, and that we could work out ways of ! dealing with our own problems. X recognise the responsibilities of government to take csre of national welfare and the authority of government to regulate indus try accordingly, but I believe that all of us in industry have a tendency to appeal for government aid unnecessarily. When cyclical situations of over-supply arise due to decreased demand, lead and sine sines and smelters throughout the (orld inevitably suffer hardships and individual countries can not Insulate them selves ty government action. What la needed Is to take steps that will reduce cr eliminate these periods of low demand by keeping consumption tuoyant and growing. Experience in recent years Indicates that the various interferences of goven>ments have tended to aggravate the cyclical swings and added generally to the problems of the whole industry. Further, government aid inevitably naans govern ment regulation and, in the long run, this leads to government control cf Indus try. There is no longer a general world-wide shortage of dollars, but a number of countries, particularly in the Far ha3t, still have serious curreicy difficulties and as a consequence their imports of lead and sine are closely controlled. As I have alrMcy mentioned, seme countries fore.'ee this as a long term problem and are there fore discouraging the use cf lead and zinc which have to be imported. V.'e can understand this situation ana recognise the need for sore government regulation, tlovertheh :.s, we feel that freer conditions of trading are normally preferable and certainly better for the lead-xinc industry. Meantime it may be possible for producers in specific cases to accept local currency for sales of metal and use this in some way to finance exports. At least we must be aware of the problems In the convertibility of currency and LIA21133 I - 16 - R. HENDRICKS take an interest In markotlng within the country to ensure that, as far ag possl- ble, the ultimate consumer receives adequate supplies at reasonable prices. Coming closer to home, we still have quotas restricting Imports of lead and sine into the United States. These were established in October 1958 and re cent reports indicate that the Administration and Congress have no present inten tion of removing them. This is so in spite of tho many objections that have been raised. For example, last August six major United States lead and tine smelting companies, representing about cne-half of the smelting and refining capacity, issued a statement opposing the quota system. In recent hearings before the United States Tariff Commission domestic smelters testified that a ccntiraiation of the quotas is a serious threat to the future of the lead and line industry. Our Canadian Government and that of Australia have repeatedly urged their elimi nation. At the recent meetir^s of the United Rations' Study Group held in Geneva, delegations voiced concern over the continuation of the quotas and par ticularly that these restrictions, originally stated to be temporary, might be come permanent. It was pointed cut that lasting damage might result if such re strictions caused consuming industries to use alternative materials. Another point where co-operation is needed is in connection with Government stockpiles of lead and line. As you know, the United Kingdom stocks of zinc, amounting to about 53,COO long tons, are to be disposed of during the next four years. Intentions in this regard were announced at the United Nations' Study Group meetings and views of other participants were invited. This approach and the assurance tkat disposal would have due regard f^r market coali tions are commendable. In view of the relatively small quantity involved, wa may hope that Its dlspotal will ?wt depress markets tc any extent and it will be good to have the problem cut of the way. . The stockpiles in the United States are, of course, nsqy time* larger \ fgjgWjMfl!pBl MJjjPPWggKWt' HW ' - 17 - R. HENDRICKS S > than those in the United Kingdom. Indeed, the quantities are so great that unwise i i disposal could disrupt the world industry. They therefore can not be considered f 0 from a purely domestic point of view. Ihis is shown by the fact that during the period around 1956 when stockpiling was at its height, about 10 per cent of the total production cf the Free World was being withdrawn from the market. When pur chases were abruptly curtailed in 1957, prices deteriorated rapidly and the indus try became depressed, a condition from which it is only now recovering. Stock piles of lead and einc may be necessary for strategic purposes to meet possible national emergencies, but if so they should not be released except as necessary for this purpose. Certainly any precipitate action to dispose cf the United , States Government stocks at this time could have extremely serious effects on the Industry. I urge that no further major additions be made to these stockpiles of lead and zinc and particularly that if ary future emergency should necessitate re lease of metal, consultation should first be held with industry on as wide a basis L as possible. - Finally, T want to make a plea for the consumer. For too long industry and governments alike have overlooked the importance of consumers. At the vari ous meetings and hearings when the needs and claims of different Interests are presented and action is urged for their safe-guarding, seldom does aryone repre sent consumers or put in a claim for then. I suggest that it is time that this omission was rectified, for our own well-being if for no other reason. After all, the major task fadr*; our industry is to stabilize and increase world con f sumption cf lead and xinc and this will need careful attention to the Interests of consumers. ' One of the prime requirements will be to see that adequate supplies of *I good quality metal are available at reasonable prices. Producers must keep the supply of metal coming out in line with market requirements, in poor times as r! i '1 ri nwMp.wiwww' HSW*>i ^ ' **** * <.;*T-' 'V ! LI A 2 113 5 <i *yr 18 R. HENDRICKS well as good. We must do our best to maintain reasonable and stable prices and these can not be considered solely on the basis of local costs. Corepetition oust be recognised, particularly fren alternative materials. Unduly high prices may give temporary benefit but experience has shown that in the long run they are detrimental to marketing. On the other hand, very low prices, Insufficient to maintain a satisfactory level of world production and good quality, are also harm ful. Similarly, high tariffs, quotas and other such restrictions, though they protect high domestic prices, fail to give adequate consideration to the in terests of consumers. Further, such restrictions place manufacturers of products containing large amounts of lead and zinc at a disadvantage when competing with foreign manufacturers. They thus hinder exports and Increase the difficulty of balancing international payments. Imbalance of trade is currently causing con cern in the United States, and it is also a cause of great concern to us in Canada. I believe that the long-range remedy lies in Increasing productive capacity at lower costs, and in encouraging freedom of International trade. 1 was interested to note that this position is supported in a recent statement tqr the Committee for Economic Development which represents leading business Indus tries in the United States. I have tried to give you a picture of the growth of world-wide co operation which is developing in the lead-zinc industry. As compared to condi tions a few years ago, there has been definite improvement in the general health of the industry, and there are many signs of encouragement. At the same time, as we are now entering the 1960's, there are still raary problems facing us. International co-operation has greatly helped the lead-zinc Industry in its technical problems and in its breeder marketing problems. With continued ? tii iifii iW iM ttit'd i iT illlftli * 1 WLUWfffjg-- ^yyww LU2ll3b ..V - 19 H. KkNISICKS sincere and progressive intermtioml co-operation I believe that our industry !I * ! ( can look forward to a bright future in which our products will find over-lncreas- > ing applications in the service of mankind. ### I i