Document Znqy29NN33XaDEkkbyB6kwyV7

Not for Publication R E,P 0 R T OF THE * TO THE EXECUTIVE PRESIDENT COMMITTEE July 28, 1953 INTRODUCTION We nave cer.pl ated the .first half of 1953 without the business recessi on forecast ly se venal economists during the last election. In fact even the most persistent c-can onists nov; admit there is no prospect of or.e this year. The Paint, Varnish ar.d Lacquer Industry is still establishing new sales records. Ih B'.neau of the Census reported our April dollar sales at 131,111*,000,. greater than any April sales in the rd.sx.cry of the industry and the third highest month ever ra cer cod. Cur sales for the first four months were 2. U. percent over 1952. 'While tin.se out standing accoaplish.r.snts are the direct result of the energy and aggressive ness that is so noticeable each year, we can still increase our annual sales above the two billion mark. Pew markets are here and growing. As long as we continue to attack problems that confront us in this progressive name wo will maintain cur upward trend. The products of this great industry are always in d -: and. The desire to secure new markets and to recognise new opportunities for their use rests with us. The ability of our industry to meet every challenge with complete confidence in our fn+ ure will roan that our 1953 sales figures will surpass all previous records end these in turn will e'e exceeded each year following. GENERAL FPTTPOS: Since the last Executive Connittee meeting, in addition to conferences in Washington, I have attended the following meetings: Lumber Manufacturers, Washington, D. C. Scientific Section Committee, Washington, D. C. Officials - Painting and Decorating Contractors of America, Pishington, D.C. Simplification Comdtxee, Washir.gx.on, D. C. Philadelphia Paint, Varnish and Lacquer Association, Philadelphia, ?a. Special 'Subcmunittee Putty end Caulking Compound Steering Co-amities, Wishing ton, D. C. Paint Statistics Committee, 'Washington, D. C. Cincinnati Paint, Varnish and Lacquer Association, Cincinnati, Ohio Chicago Paint, Varnish and Lacquer Association, Chicago, 111. Industry Prcv.otion Advisory Committee and Subcommittee, Atlantic City, V. J. Tracks Sales Steering Cor: ittee, Atlantic City, !!. J. Lacquer Com. .itice, Atlantic City, if. J. inci.uaati Agreement, Atlantic City, f. J. dostrial Pi-oduct Finishes Seminars, Atlantic City, I:. J. oloraoo Paint, Varnish and Lacquer Association, Denver, Colorado Paint, Varnish and Lacquer Association and Tacoma, '-hf-'re Ion, Association He .-.terns, Scat + xle, wasnar an NCA 0 03262 N 4177 "1 O M o ~2- Portland "Faint, Varnish and Lacquer Association, Portland, Oregon Golden Gate Paint, -Varnish and Lacquer Association, San Francisco, Calif. San Diego Paint Club, San Diego, Calif. Los Angeles Paint, Varnish and Lacquer Association, Los Angeles, Calif, rational Clean Up-Paint Up-Fix Up and Pronetion Committees, Washington, D. C. Subconsaittee Industry Pronotion Advisory Committee, Washington, D. C. Awarded Certificates of Civic Merit - 1953 Spring Clean Up-?aint Up-Fic: Up Campaign, Few York, F, Y. Baltimore Paint, Varni.sh arid Lacquer / s so elation, Baltimore, Md. Contractors, Dealers and Manufacturers on TV Test Campaign, Col\umb-'S, Ohio INDUSTRY SIIDS: Sales for first five months 1953 total $59u,975,0D0, an increase of 3a5 percent over 1952 dollar volume of 5575,OLj6,XO for the same period. May sales were $130,L'0ii,000, an increase of ii.ij. percent over $121',912,000 for May 1952. Final revised sales figures for 1952, released by the Bureau of the Census, show dollar volume of $l,3u0,759,000. This is a slight increase over vhe revised 1951 figure of $1,339,037,000. COFVDFTIOF: Our Business Program vdll feature forum nestings of manufacturers cf Trade Sales, Industrial Product Finishes, Poof Coatings and rutty and Caulking Compound. Meetings of Entertainment and Hospitality Steering Committees vdll bs held in August to complete their convention program. MEMBFiSHI?i For the quarter ending June 30, 1953, seven new applications have b ec-n received -- four Class A, one Class D, and two Class E. During this period, fifteen resignations have been accepted -- eleven Class A, one Class B, one Class D, and two Class E. This results in a net loss of eight manufacturing and wholesale members. Of the fifteen members who resigned, nine were due to discoidru ing manufacturing paint, varnish and lacquer products. EDUCATI0)~AL BaOCLIvSi The brochure outlining the advantages and opportunities for . young ran aid women in the Paint, Varnish and Lacquer Indus try will be distributed to Class A members and local associations shortly after the new school term opens. Copies will also be furnished to technical guidance teachers and students1 counsellors. WAVY PAINT FAIFDACTUPE: Association efforts to eliminate Navy pai.nt operations brin: significant developments* 1) Announcement on May 26 by the under Secretary of Navy of curtailment of nest of these operations; 2) Directive free Whs Chief of Bureau of Ships reducing the Navy paint products from 150 to 28 items )retained for Navy manufacture; 3 Presentation on June 12 of industry's case before House Intergovernmental Relations Committee by Association and two industry , :.do:-rs; L) Statement by Navy it would use its inventories in its paint operations or procure ment -- hence no dumping on market; 5) Association analysis of effect of curtail:, snt. shoving substantial Navy retention of products produced by private'industry; 6) Tests mony of navy officials before House Intergovernmental Relations attempting to gustif* retention of 28 items. NCA 0 03264 -3- GCTP.]v~ENT FROCUPXrS-KT: There has been no drastic change in spending for government accounts. Monthly procurement continues gust under ftU billion. Reduced appropriations and peace in Korea will'reduce this figure but the change will be gradual because of the long lead time in deliveries of military eouioment. RAW lATFIIALS The raw raterial outlook continues bright. The only difficulty experienced recently has been with toluol. A temporary shortage in April was eased by new production. :-:ov.e':er, requirements for the aviation gasoline program and ordnn x-.s have im.cr-'.Crd f.rd there is the possibility of some further difficulty before additional new uosuc tion facilities are placed in operations the latter part of the year. CQ1'TRPTLTD MATIKIAIS PLAN: CMP was replaced on July 1 by the Defense Matorials Syctom which gives priority to Defense Department and Ato..'.ic Energy Commission orders only. Steel, copper said aluminum for civilian goods .--re not subject to government control, MPA; Prior to extension of the Defense Production Act for two years from Jure 30, 1953, the Department of Commerce was authorised to continue its defense activi ties through the rational Production Authority until J\ily 31, During this interim period the MPA staff has been redi:-ced by nearly two-thirds with about L35 employees retained. Announcement is expected soon with respect to operations after July 31. T'uMO OIL: Fats and Gils Import Controls, mandatory in application (Section IO4-- refunse Production Act).., expired June 30. The Association has not op posed the position of the Secretary cf Agriculture regarding use of the discretion ary .authority in Section 22 of the Agricultural Adjustment Act to control inserts of agricultural coix.iodities. The -Association protested against any limitations upon imports of teng oil at the Tariff Commission hearings, May 7-3. The President's proclamation on imports of agricultural commodities did not restrict the import of tung oil. Production of about U0 million pounds from the 1952 domestic crop has been completed. Stocks on hand at the end of April were about 27 million pounds. Consumption has recently been about U million pounds per month. FLAXSEED A'ID LINSEED OIL: The Department of Agriculture on July 10 estimated the 1953 flex crop as cf July 1 at 39,955,000 bushels. The planted acreage is estimated at lj,6l8,OCO acres, a third more .than was planted in 1952 and 11 percent more than indicated by faimers' intentions in early March. The crop should produce about 700 Gillian pounds of linseed oil, which should approxi mate requirements without dipping deeply into the government's reserve stocks. SI'YFFAMS; The Department also said that lh,355,000 acres have been planted in scy~~ beans to be harvested as beans. If growers carry out stated intentions and the expected harvest materialises, it will exceed the previous all-time high of 3h,075,000 acres harvested in 1952. The first estimate of soybean production will be made as of August 1. STEEL DRUMS AMD PAILS: Drums and pails are now free of all restrictions and l.b itations. Steel for ore. .s is sufficient to meet all needs. NCA 0 03265 -h- TEC-HiaCAL SCIENTIFIC SaCTlOlTiV The Petroleum Thinner Index, Circular 7l>6, has been completelyrevised to include new thinners now on the market and to rake the tables of greater use to the industry. The suppl ements to Pigment Index, Circular 722, have been combined into one booklet. A complete revision is planned for next year. Supplement to the Triers, Plasticizers and Chemical Specialties Index Circular 737, is new at the printers. To cate, fifteen supplements to Circular 751, "TJ. S. Government Faint Specifications, hare teen issued. This circular will be revised next year. The new circular on ''Construction Defects" received careful ccnsic ration cy one --' -o--x-e--n--i-m--- ic Section Committee. Their suggestions were very helpful in educing *=a. more useful publication. The part of the old circular referring to types of effects on paint films, such as, checking, cracking, chalking, etc,, will be revised and re- '1SSU as a separate circular. Work on th > two houses in Southport, Indiana, has been completed, but vdll be kept under obsc- vation for a few years. A report of this work wall be issued soon. Laboratory von involved in our general study of ''Moisture - The Hidden Menace to Homes" reveale- some discrepancies among moisture meters. A circular covering Ui is investigation : s being prepared. The study of venting side walls to control mods story torts which have been started. e therein vdll be limited to 1 Evaluating moisture vapor transmission of exterior paint films applied to wood has not been successful. Evaluation of the transmission of free films is fairly accurate but when the paint is applied to wood, the tests have not produced the desired ac curacy. Work continues on new apparatus to determine the blistering characteristics of paint systems applied to wood. Apparatus is also being designed to evaluate the adherence of exterior paint to wood and to determine the moisture permeability of coated cellar wells. Ve continue to receive complaints about paint jobs and these together with other en quiries as to causes of poor paint jobs are promptly answered. Since cur ex .Deign has reached so many people,"inquiries come in from practically every part of the country in increasing numbers. It is difficult to determine the exact cause of dam age by correspondence or inspecting chips of paint. We are studying the organisa tion cf local committees to handle these inquiries, as has been done by the Mew Eng land Association, and to make available to home owners, home builders, or others, nearby experts to make "on the job" inspections. Many inquiries are referred to local associations with suggestions for positive action. Pertinent information is received from those local inspection reports and used by our Industry Relations and Public Information Divisions in articles for newspapers and magazines. Our original set of slides on "Water - The Hid used. Scripts for various types of audiences ' be used in each case are indicated. Tor.ace to Homes" still is -widely been prepared and iha slices to N C A 0 03266 The availability- of slides on mildew has bean announced through "Coatings". The present black and white slides will bo replaced with colored sets in the near future. Several members of the industry have sent us colored photographs of mildew on colored paint. We need more and would appreciate any additional color photos you nay have. We continue to work with the General Services Administration for a change in Federal Specification TT-C-595, Color Card Book. We have urged the Adried.stration to supply Individual 3x5 color chips to successful bidders. TT-C-555 is out of print and we hope for favorable action on this recomerdation. At cur insistence, C-SA held a meeting with industry last month to discuss changes in Federal Specification CT-P-29. Laboratory -work in which we are cooperating should make it possible to effect decided improvements. Circular :*o. ?c0, "Advantages of Using Aluminum Fetal Instead of Zinc Amalgams in the Let bj miration of Titanium Dioxide", resulted from our cooperation with the American Society for Zesting Materials. Progress of Plgment-Flspsrsion Sxudy --* The closed mill operation has demonstrated the~de sir-ability of u'3ing"riniing redd a of high density, small individual sice, and of spherical or flattened shape. Tbs small pebbles, previously used only in labora tory mills, have shown remarkable grinding efficiency when used due production rills at rpm*s much above the generally accepted 55 to 65 percent of the critical speed, which varies with diameter of the mill. Work or. a possible improvement in operation of the one-poir.t-advustr.eiit, three-roll mill, is umber way in the form of a rubber coated .middle roll, the theory being that the greatly increased working areas ob tained at the roll contacts should more than compensate for loss in efficiency due to lessor tensions on roll settings. The patent application for the new high.-speed stone mill has teen filed. Tests run to date indicate the rill* s selective operation of larger uadisp^rsed par ticles and their return for further wetting and dispersing, considering equivalent finenesses of grind, will give this rd.ll several times the production of mills presently used. The test tube experiments for the evaluation of some fifty different solvents or thi'-iners for their pigment-wetting avid dispersing properties are under v:ay and, in light of the very poor wetting ability of some paint components, proud se very in teresting and valuable information. 'STATISTICAL M3) TOTEItllENT RFPOriS PI''I SIOF: m-wo surveys are now in progress for Trade Sales manufacturers. One on 'to!or Card Requirements" will give the average number of color cards c-ed per gallon -f . aoh product sold. The other covers "Color Preference Trends for 1550, 1551 -and 1V52" in exterior house paints, interior flat paints, all-purpose enamels and emul sion paints. LEGISLATION Federal -- Certain bills affecting our industry -- Federal study and research of air poQVionj creation of Federal safety standards; creation of a Consumers* Advisoiy Bureau in the Department of Cg:iverce -- remain in co. rvibiee. The new economic con trols law authorizes allocation of materials for defense and atomic energy orders, but omits authority for price or wage controls. After he:*.rings on pesticides, action has been deferred. Consideration cf legislation on chemicals in foods and cosmetics and their containers has been indefinitely postponed. NCA 0 03267 .< r State -- Thirty-eight State legislatives have adjourned; four regain in session; vwo are in recess. A labeling bill died in the Minnesota House after receiving Sen ate approval. A California labeling bill vas amended to remove all reference to paint. Illinois ar-r.dsd its paint labeling law to change the penalty for a violation from not more than (.100 to not less than (.100 nor acre than (;500. Air pollution control bills died in Connecticut, Terras, Washington and West Virginia. Such a bill in Hew Jersey passed the House but is pending in the Senate -- others are poncing in Pennsylvania, Michigan and Ohio. Wisconsin enacted a law limiting air pollution control to cities of over 500,000 population. Hills authorizing air pollu tion study -ware passed in Ha ssachusetts and Illinois. All attempts to e:i3ct painting and decorating contractors' license laws were defeated. A general contractors' licensing bill became law in Michigan. Municipal -- The New York City Hoard of Health on July lU ordered the preparation of an a...andment of the City Sanitary Code to require warning labels on paint containing lead. We have been granted the privilege of a hearing on the amendment. The Depart ment is distributing pamphlets waiting parents to prevent their children from chew ing painted surfaces. Study of Hewards to Children -- The Association is participating in an ASA project to* mi.ri-i.se' hazards to children. Dr. John Foulger is the Association representa tive . The- project scope is: "Spaeifications, teats and procedures to minimi-.oe home hazards to children which right result in physical injury or por soring." A technical subcom mittee is studying the identification or labeling of paint products to indicate that they are safe to use in painting objects or surfaces used by children. Its discv.sssions recognized the non-existence of any clarms of lead poisoning from the original painting of toys and playthings and the need to educate parents as to paints safe for repainting tcys and furniture. The Committee expressed the view that it should not require anybody to label anything, but did state that if it were possible to have a label, beneficial and educational advantages would result. Unfair Competition -- A copy of a booklet, "The Facts on Mastic Hot Fantastic,n huVj pVaFecFby tneUan Francisco Better Business Bureau, was mailed to all Class A and E members. V.e have asked the FTC to investigate advertising claims for several mas tic products recently appearing on the market. The Virginia Department of Agriculture and Immigration issued step-sale orders, on paint products manufactured by National Titanium Company and ITichael-lawronce Com pany for fail-ore to register labels under the Virginia Paint Law. Lack of State authority forcad a relaas of National Titanium products on condition of removal from Virginia. The Ilichael-Lawrenca goods are being held. The Virginia authorities asked our help to have FTC stop the mail literature of thase companies. FTC ceace NCA 0 03268 -7- and assist orders against both firms are In effect, and a Federal action is pending in California against national Titanium for alleged violation of the order. Labeling -- The collection of all labeling laws and regulations was published by the association on June 1. A copy was mailed to the Executive Committee*and Class A members. Tariff -- The Philippine Government has requested our State Department to propose legislation permitting selective free trade. Under existing law, free trade on-all goods prevails until 19$U, when an annual graduated tariff schedule is authorised until 157k. The State beoartm.ent-vvill consult with our industry before : ak-wc raco.'.x.eucat: ons to Congress. We will oppose any restriction on the sale of our u c-inets in the Philippines# DIVISION ACTIVITIES INDUSTRIAL PRODUCT THIS HIS DIVISION; Lacquer and Steering Committees met at Atlan tic City, May 27 and Kay 29, respectively. The Lacqi'er Committee program featured a symposium on "Mew Methods of Finish Aprilca tion" and other papers were presented on subjects of special interest. The demand for copies of these talks has been unusually heavy. National Industrial Product Finishes Seminars were held on May 23 with a large and enthusiastic attendance in each of the sis: discussion groups. The Steering Coirittee new plans to hold these National Seminars once a year, alternating between the Chicago and New York areas. Semi-annual meeting, Wood Finishes Manufacturers held in Chicago, June 25. TRADE SALES DIVISION: The National Trade Sales Steering and the rational Trade ? fl.es Com itiees met in Atlantic City, May 26. Deport ar.d recom- ;;x-nGallons of the Simplification Coi.iir.ittee for revisions in the Simplification pro gram were approved, and submitted to the Executive Committee for action. Also con sidered and unanimously endorsed was the report of the Industry Promotion Advisory Committee as approved by the Executive Committee. A special Convention Program, Sub committee authorized to formulate clans for Convention Trade Soles Forum Session. Paint Power book sales continue steady 26,319 bocks printed, 2$, 66U distributed. INDUSTRY DELATIONS: During the first 6 l/2 months of this yar, the motion picture "Water - The Midden Menace to Hones" has been shown to 1100 groups with attendance of $0,000 including salesmen, dealers, painting cent: actors, hom.e builders, civic groups, Faint power classes, and affiliated industries in the building trade. The slides on moisture 'won the Blue Ribbon award at the June meeting of-American Society of Agricultural Engineers. Four band: and mortgage companies* national publications carried articles on moisture. 5,000 booklets on moisture have been distributed to such institutions. The two exhibits on moisture are being redesigned for 'all showings lets on moisture have been distributed. NCA 0 03269 s- Special articles cn the moisture problem have been prepared for publications reach ing home builders, painting contractors, lumber dealers, hardware dealers and mort gage companies. Thr United Press special wire service to 1200 radio and television stations has cooperated with cur procram by advising the public on the moisture problem through local planning programs. PUBLIC 1ITQPJATION DIVISION: Publicity coverage continues to grow -- ?63 r.sv.-s- papers in I46 states now use our -weekly releases and 273 radio stations covering all stales broadcast our bi-monthly programs, national, :o:r.3; farm and industry magazine coverage is constant. "Paint - Color The lest Ballyhoo - Cash in on Colors!" appeared in the magazine 'The Billboard" daring A ::Tl. Among the features now in preparation is a series of four "hcv.'-to" articles for "100:5 craft and The Home Owner". Special -women's club program presented'to -SOI clubs in every state ar.d distribution of special material to schools, colleges and hr-.va economics, ig-H and extorsion leaders grows. Just issued for consumer distri bution is the booklet "Has Your House a Furgi-Face" which covers in laymen's lan guage the cause and cure of mildew problems. Copies have been sent to the industry. CL?AN UP-FA. TKT UP-FIX UP: The first year of full cooperation from the United States Junior Chamber of Commerce ended with the Bureau's pre sentation of a Distinguished 4d-.ieve.vent Av;ard during their annual convention in Kinneapolis. A survey indicated the majority of the Junior Chambers were particleat ing in the program for the first time; the total population of the communiiies in cluded in the program is 6,707,500. Plans for an enlarged program for 1951, have been formulated. The cooperation from public utility companies, which sponsor town and area improve ment contests, now includes our programs in southwestern Pennsylvania, V.'est Virginia Connecticut, Western Haryland, Georgia, the Carolines and Florida. The most important single event of the 1?53 campaign was the addition of Hew York City uc the Clean t'p-?sint Up--Fix Up roster. For the first time. Hew York City conducted a comprehensive program -- chiefly inspired and supported by the members of cur industry. F.esults were highly satisfactory and foundations have been laid for more extensive future campaigns. During the 1953 campaign the Bureau distributed 1,050,191 pieces of display mate rials and supplied 11,965 mats to newspapers. Of the four newly-designed display items for this year's campaign, three received such a fine reception that sevc-ral reprintings were necessary. TRAFFIC: The Railroad Uniform Classification Ecard granted our request to reduce the LCL classification on paint p:edicts in small cans from Class 60 to .Class 55 The effective date of this has not been announced. Our request for similar action on truck shipments is pending. Hearings will be held next month. He petitioned the ICC to suspend its Saturday demurrage rule -- reinstated Hay 31 to meet heavy grain shipments. An exemption for tank cars resulted. ICC hearings in the Central States 1.50 surcharge case ended in June.' Final deci sion is not expected before the end of the year. As we enter the last half of 1953 and begin, to crystallize plans for still ar<. iter forward strides in 195'it, I need your comments and suggestions as to our invvne ac tivities. Your advice and counsel, always highly valusd, will be doubly v-.T. ed and sopreclated in setting a favorable course for car industry through the emit: cl v'2ad- N C A 0 03270