Document ZnwOG1YQELneBQVZZw8DVj2NV

Kot for Publication.. R E P^O E T OF THE PRESIDENT TO THE EXECUTIVE COMMITTEE .April 23, 1953 INTRODUCTION Our future and that of all American industry depends today on a very large IF. IF the v.ar clouds which have teen threatening the Far East and Europe for years with an all-cut conflict are nc.v changing their cor.plend.on. IF the so-called r:pe.nce talks" in Korea hold a true precise for an armistice. This big IF affects our fu tures ?s individuals as well as our business. Russia knows our great productive strength and that the end that eliminated the reigns of Hitler's end Mussolini*s political gangsters will surely be disle-kov' s fate should he force us end our allies into a shooting war. With this, and our undis puted superiority in the atonic energy field, Px-esident Eisenhower has potent sup port for his intent to preserve an honorable peace. I axn convinced there will be no world conflict this year. One-third of 1953 has passed and I an -sure you feel as I do -- this is another of growth and expansion for business in general end for the paint, varnish and lac quer industry in particular. I am certain by intensified efforts we will establish new sales records again this year. The following resume of Association activities is submitted for your informs Won* GM RIAL 'p-d'ri'n-S: Since the last Executive CcnmAtiee nesting, in addition to conferences -'a Mashing t en, I have attended: Putty and Caulking Compound Steering Committee, V,'ashington, D. C. Officials -- Painting and Decorating Contractors of America, Washington, P. C. Advertising Subcommittee of Industry Promotion Advisory Committee, Washington, D. C. Annual Convention -- New York Council, PDCA, Pew York, N. Y. M?A Chemical Division Officials, Washington, D. C. HAM Officials, Washington, D. C. Minn.-St. Paul Paint, Varnish & Lacquer Association, Minneapolis, Minn. Minnesota Senate Committee on Agriculture, St. Paul, Minn. Officials -- Minnesota Retail Hardware Dealers Association, Minneapolis, M:'an. Painting and Decorating Contractors of America Convention, Chicago, 111. OPS Officials, 'Washington, D. C. Detroit Faint, Varnish and Lacquer Association, Detroit, Mich. Baliac-Mouston Paint and Varnish Production Clubs and Southwestern Zone Association, Houston, Texas jM'MSIRY SALES: Sales for 1952 were $l35li36l,000, the sixth consecutive year they exceeded the billion collar nark. Trade sales were ^31>6,38,11,000, 2.U percent ever 1951. Industrial Px-ouuct Finishes were 507,U?7,000, b.2 percent .. x-r 1551. Me are headed for a record year, with January find February 1753 each Upping Cl 00 rillicn. Total sales fox first two r.cnths of 1953 were 750,000, a i-.clina of 3 percent from the previous year. Trade soles accounted for 1126,5?',000, a decline of 6.9 percent. Industrial Prc .'vet Finishes rales -.are r.^6,0/'c,009, an .i.ci ease of 3 percent ever 1952. NCA 0 Q32S6 1953 CONTENTION': Announcement of our 65th annual convention at the Cbalfonte-Kaddon Pll, Atlantic City, New Jersey, October 26-28, was released to the industry# KL: Z5S7.SH1P t For the quarter ending Kerch 31 , 1953, twelve new member ships and eight resignations were received -- a net gain of four manufacturing and wholesale members. EMERGENCY SERVICE vrnile co. trols are virtually ended, we still maintain close contacts with govern:.::nt agencies 229 Emergency Service Bulletins covering 6l5 subjects Lave been issued to date. CO-vTRPLIED MATERIALS FLAK: NBA1 s CMP will be terminated June 30. If Congress au thorises the Defense Materials System, effective July 1, only Defense Department and Atonic Energy Commission orders will receive priority ratings. Manufacturers will need no authorisation to purchase steel, copper and aluminum for civilian consunotion. pi',-7 j ^vfPXALS : The raw material picture is bright, K?A will continue to help ob tain paraphenylp-henol resins for food container linings. Revoca- tion of 22-81, April 6, removed restrictions on use of tungsten and molybdenum, in' pigments. 32?.A orpin sices cobalt will be scarcer, due to military requirements. Flaxseed and Linseed Oil -- The Department of Agriculture^ first estimate of the 1553 crop inoicates_I{,lh2,000 acres will be planted this year. Flaxseed production is estimated at 36,300,000 bushels as compared with 31,002,000 bushels in 1952. This would produce enough linseed oil to meet normal requirements with no severe drain on 'govcurrent stocks, which remain at approximately 500 million pounds. Soybean Oil - An increase of l.U percent over 1952 acreage of soybeans is indicated. No estimate as pet of the acreage to be harvested for beans. However, if previous radios held, production of beans and oil will approximate the highest on record. Castor Oil -- Castor oil is no longer under quota restrictions. The Department of Agriculture's planting program is 125 thousand acres this year, about the same as last. Tung Oil -- The 1952 domestic crop is estimated to yield 1/0 million pounds of oil. Stocks -were less than 9 million pounds, October 31, 1952, and March 1 were 21 mil lion pounds (about five months1 supply at current rate of consumption). Tung grow ers were successful in limiting available supply by the Department of Agriculture action on April 7 limiting imports through June 30 to two million pounds plus quan tities in transit prior to April 8. I advised the Secretary of Agriculture that o\ir industry strongly opposes any limitations on the importation of tung oil and that there is no statistical basis for any such limitation. However, the order was issued cased upon the Solicitor's opinion that such action is mandatory because tung oil has been placed under CCC purchase and lean agreement. Everything possible will be done to protect our normal supply requirements, STEEL DRUMS AID PAILS: Allotments of steel for drums will meet all needs. Only restriction is 60-cay inventory limitation on new drums. This may expire June JO, 1953. NCA Q Q32S7 TIN CANS: AH' emergency restrictions removed on February 6* FRIC5 CONTROL: All*price controls ended Kerch 17* During the period our industry was under OPS control, we were never required to file our prices as the result of a series of extensions of the filing date which we secured. Neverthe less, we received all the benefits afforded every industry through operation of the price stabilization law. This was due directly to the tin tiring efforts of our OPS Industry Advisory Committee and the association staff, together with the careful at tention given our problems by OPS officials. IE AND SALARY CONTROLS: The President abolished all wage and salary controls in February. GO' FR-ioNT FROCIFILMENT: Monthly procurement just under billion and has been last nine months. Deliveries -- 02-2/3 billion p:or men se figures will be reduced if peace in Korea. However, the reduction w ill be dual as only about $5 billion par year is due to Korea, TECHNICAL SCIENTIFIC SECTION: Principal activity now is Plater - The Hidden Menace to Hones.* Home builders in the six Association zones cooperated in experi mental tests to eliminate excess moisture from heroes. Builders in Seattle, South Bend and Knoxville also corrected causa of excess moisture in homes constructed dur ing past few years. One Knoxville builder is now constjnoting homes v.lth a molded concrete block, the exterior of which lochs like wood siding and is painted, instead of southern yellow pine because paint v.ould not adhere. The experi .sntal homes in Southport, Indiana, are inspected regularly. No blister ing or pooling of the paint noted. Two winters after completion of experimental work, we can report success. A circular covering these experiments 'will be issued shortly. The eight houses having so-called "Breather Faint" on the exterior were also inspected. These paints were applied in the fall of 19ii9. No definite con clusions can yet be drawn. In February, together with, members of the Kew Orleans Paint, Varnish and Lacqi er As sociation, we conferred with officials of the Southern Pine Association. The effect of green lumber siding upon the durability of exterior paint was discussed. A new SPA publication on this problem was reviewed, .Also con si dor-ad were several research projects aimed at making southern pine more usable as siding* laboratory work continues on evaluation of moisture permeability of exterior paints. This program includes determination of the contribution of typical raw materials to the moisture permeability of the finished product. Detailed formulations will not he covered but basic information developed vdll be useful to paint formuLators. The work to develop basic information on the contribution of ventilation of the walled interior t-o the removal of excass moisture from that area, to eliminate condensation in the sheathing or siding, continues. A method for determining adhesion of -exterior paint to various 'woods is in progress. The Condone ation Control Cc.-vvittce appointed by the Building Research Advisory 1 vs held or,,e meeting. Four subcer.:ittocs on v.lich our Association is represent toed. No. 1 Evaluate the prior art; Ko. 2 Methods of determining moi y; Ko. 3 F-cplore present research in this field and determine ~G.K*v i'czoarc re qiirodj Ko U Publicity Committee, to publicize results of the cth.-r CO' mitt s. NCA 0 03258 We continue to inspect structures where unsatisfactory paint jobs are evident and offer suggestions fdf the correction of excess moisture conditions. Evidence ob tained is used in the preparation of technical and nor.-technical ai^ttcles. revision of Circular 723, 11 Construction Defects" vi.ll shortly be reedy end vi.ll >3 United to the effect of water entering the building through defects in the structure. Three circulars ware prepsi'ed and revisued by the Scientific Section CorxiLtse. One covers painting natal sash glazing materials. Another, the causes of sore premature bad interior paint jobs due to excess moisture. live third covers a r.ev; re the cl of da te raining the percent of titanium dioxide in titanium pigments. Proponed chapters of the Painting Manual of the Structural Steel Painting Council were isviswed. Sov.e chaote-rs x'efsr to naint soecifications and the Council proposed a setjax ate division of the manual devoted exclusively to the many paint specifications for protection of steel, which was opposed by us. The set of slides on mildew, including the script explaining each slide, is avail able. The method of detex-mining fire retardant qualities in paints is vexy important and under investigation. Much of this infoxT.ation was disclosed at a symposium in Los Angeles, arranged and moderated by a member of our staff, STATISTICAL AMD GOVERIT'ShT REPORTS DIVISION: The schedule of the Bureau of the Cen sus covering 1953 operations of our industry for the 195k Census of Manufactures v:as mailed to Class A members on March 17. This will permit manufacturers to adjust their records, if necessary. The data will be mere consistent with the Census Bureau ontlxly reports of trade and indus trial calcs. More detailed information is reqv' red than the 19U7 Census out, when su era vised, will px'esent a truer picture of our operations. The 1952 Supple::ent to the Association's 1950 Statistical Handbook was published in April, including all data available up to March 1, 1953. Monthly summary reports of the Credits and Collections Survey have been simplified. This should add many new contributors. This activity merits your full cooperation. LEGISLATION Federal -- Congressional proposals affecting our industry relate to -- bills author izing Federal study and research of air pollution and smog; amending the Economic Poisons Act to require more stringent regulations; revising the Food and Drug Act with respect to the chemicals in food and cosmetics and their containers; and creat ing Federal safety standards. All are receiving our attention. We gave special attention to the bills proposing continuation of economic controls, particularly fats and oils import conti'ols, which are omitted from the bill now before the Senate. We continue our efforts so that no mandatory requirements are enacted. Congressional consideration of Section 22 of the Agxriculture Adjustment Act, which grants discretionary authority on import controls, should occur in June, since Agric"lt'u-'0 Secretary Benson has requested amendment of this Section 'to protect i pert c-ntrol programs authorised under the Defense Pi-oduction Act, -which expires Jure 30* S-1-ate -- I;ix State Legislatures have convened; 18 have already adjourned. Formula a '.vmrr.ing labeling bails were killed in Lev; fork. A labeling bill in Minnesota NCA 0 Q32S9 -5- (based on the Kodel Bill approved by the Executive Committee) has received Senate approval and is pehding in the House. A labeling bill in California on our objec tion was removed from the calendar. Restrictions on paint spraying were killed in California and I'evada. Air pollution control bills were killed in Hew York but are pending in California, Connecticut, Hew Jersey, and Wisconsin. Local associations are opposing license bills for painting and decorating contractors in Michigan and municipal -- The City of Hew York proposes amending its sanitary code to require warring labels on paints containing load. The Hew York Association will oppose i a::, sr riant. Virginia Faint and Economic Poisons Laws -- Discussions are continuing with Virginia officials regarding msildewcide paints. Savy Paint Production -- The Secretary of the Havy, after reviewing an industry sur vey committee report recommending discontinuance, is considering stopping all paint manufacture, except fire retardant, shipbottom anti-fouling and hot plastic paint production. The Association request to the House Committee on Government Operations for investigation of Navy paint production will result in hearings before the House' Intergovernmental Relations Subcommittee (Mrs. Cecil Harden, Rep. of Indiana, Chair man) about Hay 1$. The Association will appear. Un fai r Com e tition -- Floor Vanes: Testimony presented at FTC bearing, April 16, on proposed trade practice rules for the floor wax and polish industry is being studied by the Co., mis si on. The proposed rules exempt paint, varnishes and lacquers. At the heailng, we requested revision of the term "Industry Products" to make certain that shellac varnishes are included in the exemption, and restated our position that there is no need for these rules. Labeling -- An up-to-date compendium of all labeling laws and regulations will be issued about Hay 15. Tariff -- The U. S. Tariff Commission has scheduled a hearing in Washington, Kay 7, to de-.crm.ine whether imports of tur.g nuts, tung oil, flaxseed, or linseed oil will materially affect any Department of Agriculture program. We will appear at the hear ing in opposition to further limitation on imports of tung oil. The Tariff Commission refused to impose quotas or raise the duty on imported chalk whiting. We testified against Import restrictions at the hearing. Twenty-two bills have been introduced in the House to ban the import of residual fuel oil and other petroleum products. Since 75 percent of all imported petroleum comes from Venezuela, the enactment of such legislation would undoubtedly result in the exclusion of the U. S, products, including paint, varnish and lacquer by that nation. The Association presently takes no position cn this matter, as it does not directly affect products of cur industry. The views of the Tariff Committee have been recuested. The Philippine Government has not yet requested cur Congress to amend the Tydings Act to ban imports of certain U. S. goods, including paint products. We vdll oppose such action. Dire to the collar shortage in that country, Import controls have been imposed, quotes have teen established for paint, varnish and lacquer. The State Department advises they have no jua*isdiction, but suggest U. S. manufacturers request Philippine customers to urge their government to abolish these quotas. We continue our contacts with the Philippine Sm.bcssy and the State and Commerce Dcoartmants. NCA 0 03260 DIVISION ACTIVITIES INDUSTRIAL PRODUCT FINISHIS DIVISION; First local seminar 'on March 2'u at Cleveland Association. Local seminars held in April in Poston. Lacquer and Steering Committees meet at Atlantic City, May 27-29. National seminars, May 23 -- sane place. Association staff members will supervise and assist in all seminars, THAME SALES DIUISIQIT: Cleveland Association held a local management seminar on March 25. O'er staff members supervised and assisted. Local trade sales seminars are not feasible and will be discontinued. We are developing a program of activities for caulking compound manufacturers. Sales of Faint Power bocks continue at good rate in the sixth year of Faint Fewer ; aJ.cs w-aanmn? - 26,319 books printed, 25,^60 distributed. IMDUSIAY ?.>'T.ATIONS: We are working closely with the building industry, paint manu facturers, dealers, painting contractors, savings and loan com panies, lumber companies and others on the moisture condensation educational program. Film -- In three r.c-nths, have filled 1U0 requests. Films shewn 527 times to 25,0-90 people. Paint manufacturers have been largest users, but have also received re quests from pad nting and decorating contractors, home builders, paint salesren and farm agencies. The film is also part of Paint Power Courses. Publicity Special articles prepared for specific industries. Twenty stories written for State homo builders publications, arid for painting contractors and lum ber dealers' rag?.sines. Articles will appear in two publications covering a member s''`ip of 6,000 savings and icon companies. Booklets on moisture sent to each build ing end loan coamanv. exhibits -- Have been displayed at National Association of Home Builders' convention, and Home Shows and State Fairs in Terras, and Philadelphia, Baltimore, Des Moines, Toledo, Cincinnati, Washington, and Harrisburg. Also Massachusetts PDCA Council meeting and annual convention of painting and Decorating Contractors. Attendance at these affairs more than 3 l/2 million. Booklets --- liOO,000 copies of s,Kcw to Win Year War Against Water" and 110,OCX) copies of "How to Rescue Your Home From the Menace of Moisture" have been distributed. CTFL-.N UP - PAINT UP - FIX UP: In March, winners in eight population groups and the National Cleanest Town Contest Winner were selected by the judges. The Trigg Memorial Award, the Grand rational prize, was awarded to Houston, Texas. Population winners -were: Philadelphia; Houston; San Antonio; Ham mond, Indiana; Highland Park, Illinois; minefield, West Virginia; Kartsville, South Carolina; and Richlsnds, Virginia. The growing interest in Clean Up Campaigns is proven by the record number of 5ii entries received. Intensified cooperation v.ith the Junior Chambers of Comerce have added to the Cloan Up - Paint Up - Fix Up rosier more then 100 towns and cities 'which had not previvmly conducted campaigns. Local Jaycees in one Mmbud more cesmunities have evi denced interest in promoting campai gns. KCA 0 03261 ' f -7- Cooperation with American Association of Nurserymen in the "Plant Up" aspects of the program has produced excellent results in increased orders for display materials and newspaper mats. f.ecent additions to the Clean Up - Paint Up - Fix Up roster are: Seattle, Spokane, Pallas, Milwaukee, Kansas City, Birmingham, and New York City. TFA'crIC: Traffic Cor'dttee renters appeared before the ICC Hearing Examiner in Chicago, March 6, opposing continuation of the $1,50 surcharge in Central States Territory. Decision of ICC is expected in June. On March 19, we requested the Railroad Uniform Classification Bear'd to reduce Uii3 LCL classification on paint products in small netal cans from Class 60 to Cla ss 55. A similar proposal on several pigments was 'withdrawn, since all pigments were not on the docket. Decision expected within 60 days. If RajIs approve our request* we vail ask Trucks for similar action. Have fil ed petition with ICC requesting suspension and investigation of the 15 percent ov r-nil increase in rates adopted by the Southern Motor Carrier Rate Conferen ce, effactive April 15. NCft Q 03262