Document b5L9bdBm7QavgL6eE8aY48OQO

"iirjns ^ r*3Jjrivz co:c;i7T2 mzzeik g National Paint* Varr.ish and lacsucr 'Association, Ir.c* Hotel Sew Yorker, ITcw York, H. Y. -- J.--ru=ry 31, 15^6 * The organization nesting of the Executive Cor.-itUe of the rational Paint, Vanish end Lacquer Association convor.od at 10:00 A.K. Thursday, January 31, 1$H6 in the* Hc'tcl raw Yorker, Hew York, IT. Y. with tho following in attendances "* Prank ~y :s T. J. Car ell V'. K. Clare 0. Clark A. Toy, Jr* 2, D. Griffin A. Z. Horn **n. H, Jardon, Jr. H* '.?* Eel ley J. Varren Kinsnan H. A, IJelua Illiot S. Phillips Guests Harold Pvo E. J. Arthur V/, 5t cudel *. C. Ptolk "rank L. Sul ;sr Ernest T. Tr Hoy 3. A-'.arson Jack Daley J. Prcr.k Eurfees, Jr* "ells Jlartln `iemhard !kiutz Ralph I!. Eeur.ann Charles L, Haffi D. Robertson ' ? II. Zintl Association_3 taff Psuel 'f. Elton George H. Priest li, C> Hncdcnald G. C-. Sward Absent M. L. Envoy Harry : Kuhn Yal tfurtole Call To Order The neeting was called to order by President Trigg who explained that this wa* the organization neeting of the Connittee and he introduced the new nenbers of the Connittee and the ipxests who were in attendance* -.............. Election of Coalroan It was noved by Hr* Toy and seconded by Hr* Phillips that Hr* Thurlow J* Cenpbell be reelected Chalnaan of the Executive Connittee for the ensuing year* notion carried* Kr. Caopbell thereupon took the chair* * e Section of 71c-Chalraan It was noved by I'r* Jlelun, seconded by i.'r. Phillips, that i!r. 3. E, Griffin be elected Vice-Chaiman of the Executive Connittee for the ensuing year, ilotion carried* . Election of Advisory I'enbors ( President Trigg ercplained that the bylaws provide for the election annually of advisory nenbers of the Executive Connittee who nay not serve nore than three consecutive terns of one year each* Ee stated that i.*r Charles ''* Eastwood and i!r* H* S. Hargetts are the present advisory .nenbers of the Connittee and pointed out that Hr. Eastwood has served three consecutive one year terns and is therofors not eligible for reelection. President Trigg placed in nonlnation for election a advleory nenbers the nones of H* 3* Hargetts and Charles J* Eohj the nonlnation N16543 MCA 0 03074 2- 3.3 seconded by Kr. Ilelun ar.d Dr. DargsttB and Kr. ?.oh ''ere . ivisoiy neabera of the Conr.ittee. ly elected Flection of Fxecutlva Vice President resident Trigg stated that at the annual neetir.g of tha /scociatlon ; Catcher the by-lavs of the Association were a-iended providing for the election of .'.n Fxscutive Vice President as recoir.endei by the executive Coxiitteo at its last meeting. It ves -oved by i-r. Sulcberger* seconded by Kr. Valter Clark that Tviel Vf. Ilton be elected T.iecutive Vice President of the Association. Motion carried. Hinnies of the T-f.st Deetlr.g The Secretary stated that the rdnutee of the previous meeting had been nailed to all r.enbers of the Cor.'.nittee and that the agendun for this nesting would take care of any unfinished business carried over from the last nesting. The Chs.irr.an stated that if there vere no objections* the nir.utes of the last nseting would be ap proved without reading and there beir.g no objections* the Chairman stated that the ninutes of the Executive Connittee nesting held October 6* 19^5 are approved* . Resort of the President President Trigg stated that as his report* he would consent on several itens ap pearing on the agendum Brand Danes Research Foundation. -- President Trigg stated that following approval given by ner.bers of the Executive Connittee* he has accoptod appointnent as a nenber of the Board of Directors of the Brand Danes Research Foundation and will attend a neeting of that Board next week* Anerlcan Standards Association -- President Trigg stated that this itou is on the agendun as a natter of record only. See attached copy of letter dated January 8* 19^6, addressed to Anerlcan Standards Association* Dew Vork 17* i:. T. - which let ter voices the industry's objections to the application of standards to the pro ducts of the paint industry. .(Exhibit l!o. l) University of ulchlgan Paint Course -- President Trigg stated that this iteo is included on the agendnn as a natter of record and he referred to the attached let ter dated January 11* 1946* addressed to ambers of the industry* announcing the establishment of graduate and under graduate paint* varnish and lacquer courses at the University of Dlchiga* (exhibit To. 2) Advisory Cooptfftes Keating -- President Trigg stated that the nenbers of the Ad visory Connittee net ^or * discussion of the oil situation and he referred parti cularly to a letter addressed to aenbers of the industry dated January 11* 1946 reporting * Inports ffoa Argentine Hold Hey to Oil Situation*. (Bxhibit Ho. 3) Titanlun -- The subject of titaniun will be discussed later by representatives of the titaniun producing concerns but attention was invited to the ninutes of a meeting held January 2* 1946 with representatives of the Davy, Arny* etc. (Exhibit Do. 4) Cooperative Advertlsln/r Canoal.an -- President Tri~~ reported that slightly r.ore than three hundred thousand dollars has now been subscribed to the cooperative advertising campaign and he stated that Laurence Kiefer of the Association Staff it now on a trip which will include all of the principal paint centers of the country and during which ho will call on individual prospective subscribers to the canpaign. NC A 003075 CFA - President Trigg stated that the Association is getting strong pressure from roar.y .aanui-acturers to v.rjja C?A to authorize an increased orice ceillrg cn paint products and he referred to a lc-ttc-r recently sent to members of the industry ex plaining the CPA. position and pointing out-that CPA considers only an entire in dustry- and that industry r.ust he able to show that it is earning less rrr.ey at the present tine than it earned in the "base period 193--1939 in order to get relief. He pointed cut th.at this consideration is "before taxes" and stated that the industry has been unable to r.a!-:e a case on that basis and he stated that the Association has vr.dcavored to present a convincing case to CPA but had "been firmly but politely laughed cut of court". President Trig" stated that he would appreciate the ro-ceipt of any suggestions frcs rerbers of the Executive Cor.r.ittee who thought it right be possible to present a successful argument, In answer to a question by Mr, Sulsbergo-r, President Trigg stated that insofar as he had been able to learn the CPA plan did net take into account percentage return cn capital investment, hr, Kinsman express ed the cpir.ion that the CPA plan should be based on<'percentage of return on invest ment and pointed cut that while ..-any manufacturers handled more dollars in their trans actions, this p?.st year, their percentage of return on capital investment decreased, Ke expressed the belief that a manufacturer should not be expected to continue to operate at a loss - and that the industry as a whole should .cake application for re lief rather than having individual companies cake such application, Mr. tforn. suggest ed the possibility of raking an effective appeal on the basis of public less through the discontinuance of production of items or. which a profit cannot be .cade. Mr, Kinsman expressed the opinion that unreasonable controls should be discontinued and he expressed the belief that free coOTetition would prevent Inflation. President Trigg recommended that a coralttee of three be appointed to cake a thorough study of the situation and a motion for the appointment of such a committee was cade by !ir. Kinsman, seconded by Mr. Lane and after sohe discussion was unanimously ap proved. During the discussion. Hr. Sterdel expressed the opinion that It might he advisable to delay action on this natter for approximately thirty days during which a pattern in the price situation will undoubtedly be developed. President Trigg expressed the belief that the committee should he appointed in order that it night have tine to consider o possible appeal for the industry and to be ready to present that appeal when the tine is ripe. Unfair Competition Cocalttee President Trigg pointed out that the by-laws of the Association provide that "The Unfair Competition Committee shall he appointed by the President in collaboration with the Chatman of the Executive Connittee, subject to approval by the Executive Committee*. Unstated that In accordance with this provision and with the collabora tion of the ChaiilxBan of the Executive Connittee he recommended reappointment of the present membership of the Unfair Competition Connittee as follows: Charles J. Hch, . (Chairman) Interchenical Corporation-Finished Division; W. C. Dabney, Jones---ibnay Company; 0. J. S. deBrun, Egyptian lacquer Manufacturing Company; Matt Denning, E. I. duFont de ITenours A Company, Inc.; E, D, Griffin, Pittsburgh Plats Glass Company, V. I, Longsworth, Lilly Varnish Company; T, J, McDowell, Sherwin-Williams Company; Carl J. Shumann, Hilo Varnish Corp.; H, L. Webster, Pratt A Lambert, Inc, It was roved by.Mr. Phillips, seconded by Hr,.3owr.es, that the recommendation of the Presi dent be approved. Motion carried. . Flax Institute - President Tri.jg stated that for a number of years the Association has been making a subscription to the Flax Institute which Is carrying on an educa tional program in an effort to increase the flax production of the country and he . recommended that the subscription bo continued. It was moved by Hr. Sulzberger, seconded by Mr. Melun, that a subscription in the amount of $1,000 to the Flax In- atituta be approved. Motion carried, . NCA 0 03076 - 4- ~jccr-~gr.ia.tlon to ITavy ?.e."ardlng; Alurir.ua Paint -- President Trigg stated that in discussions with the Hary regarding a'possible reduction in the amount of titanium to he used ia painting shipsi the l'avy had requested suggestions and cne suggestion ruhritted by the Association v:&9 the possibility of substituting alu.rir.uo paint for -:r.e of their requirements. Ee referred to a latter dated January 23rd, addressed ly th.9 Association to Hear Admiral P.oger 7. Paine of the -`..ay and Havy Munitions Toard. (Exhibit 2?o. 5) IS'-o C:.-.rentlon-- President Trigg stated that the subcommittee appointed by the Executive Committee has not as yet held a .meeting in view of the fact that as yet r.o suil'ble accommodations have been found. He stated that reports to date ir.- disate all accommodations in Atlantic City, Hey Vori: end Chicago have be:-n raid out but he expressed the opinion that suitable arrangements for the convention will be develorei* . Callfo.nia ?air.t labeling Regulations Kr. Macdonald reported on pair.t labeling regulations in California. If similar regulations are adopted in other states they will constitute a burden on the in dustry. Turing the Sumner of 19^4 California Industrial Accident Commission pro posed a safety order regulating labeling of products containing any of a great var iety of ingredients, many of which are used ia this industry. Disclosure of the name of the hazardous material and a warning or poison notice would have been re quired. The regulation was vigorously opposed. Tor sons tine thereafter California manufacturers made use of a general caution label which they hoped would comply with the intent of the proposed order. The natter was reopened and a revision of the original proposal was issued, to be effective January 1, 1S46, later postponed to April 1. The situation is disturb ing. Similar commissions or boards in other states nay follow the lead of Calif ornia. Oregon has already done so, but fortunately its regulation, at present at least, applies to chemicals and not to our products. California members have appealed to this Association for assistance.. The proposed labels follow closely reconnendatione of the Manufacturing Cheraists1 Association intended for labeling of chemicals. The regulation, however, applies to finished products containing any of the listed chemicals "in any percentage*. A hearing will be held February l4 and attended by our California member# and by Dr. barren H. Matson of the Manufacturing Chemists1 Association which la dls-......... satisfied with the regulation. Dr.-Matson will support our lain*txy* opposition* and its proposal that one general caution label be applied to our products cott er taining the listed materials,- Instead of a special label for each product as pro vided in the suspended regulation. Although a genered label in use was rejected by the ComisiRloar it is believed possible to make progress in this direction if the Commission can be induced to separate our products from "chemicals* as such and consider the two groups separately on the theory that the hazards are quite different,* Activity in the natter of safety regulations is reported also in Ohio where a proposed code on industrial public hoalth hazards is under consideration. They would apply to every -dace of employment. Fear hat been expressed that in the Jb>foro propooed the regulation would apply to painters applying paints In residences under averago conditions. Members in Ohio are in close touch with this situation. President Trigg acknowledged the fine cooperation our Association bae received from the Lead Industry Asrociation and from the '-enufacturing Chemists* Associa tion and he referred to Mr. Itacdonald's letter of January 25th, addressed to Mr. H, S,. Hargetts. (Exhibit i*o. 6) NCA 0 0307? - 5Linseed. & Other Drying Gils "r. Priest stated that because of the shortage of other drying ells, lir.seed r.sw ^counts -"or SO percent or more of our total c:r.su'.::?tion of drying oils and our I3U5 crop, while close to 37.000,000 bueheis' as corps red with 23,000,000 busV-jls in ;*;es far short of providing sufficient oil to support the 75 percent cver-all .iota imposed by VFC-'^ca. Hence our situation during the next six rrnths 'ill be determined by the amount of flaxseed or oil we are able to get froa Ar gentina, He stated that at the meeting of the V?3 Advisory Car.--.itt =e lost Sent;-b :-r, there '.-as substantial agreement between representatives of the Department of Agri culture and members of the Committee that for the twelve months ending June }0, Iphg there '--culd be available for all usee about 835,000,000 pounds of drying oils, in cluding 120,000.000 pound3 of linseed oil from 6,000,000 bushels of Argentine seed, of which 1,000,^0-0 bushels was ejected to arrive before the end of the year onA the other 5,000,000 bushels during the first six months of 19^6. 5!r. Priest said that the Corv.ittee went on record at that time with a recommendation for immediate re vocation of the order and this recommendation was formally presented by a subcom mittee to t`r. Jasspon of the Department of Agriculture on the following day. At that tine hr, Jasspon convinced than that revocation of the order would weaken his trading position as a member of the Combined Pood 3card in an effort to obtain & lar-er allocation of Argentine seed, and accordingly they urged that the quota, which was then U5 percent plus exempt uses, be raised to the highest possible level consistent with reasonable expectations and that all exempt uses be eliminated. This was done and the 75 percent quota upon which we are now operating was estab lished on that basis. As previously stated, however, it is based upon the assumption that we will re ceive 5,0n0,000 bushels of Argentine seed which can be converted into oil in tine for use during the first six nonths of 19^6, and this is not a certainty, though there is a possibility Of receiving even more. There is no free trading in Argen tine flaxseed* As the result of an agreement completed beUfecn our State Depart ment and the Argentine government last spring we have contracted for the entire exportable surplus fron the 194$ and 19**o Argentine crops* In this transaction however we are acting as agents for the United Nation* and such purchases are sub ject to allocation by the Cor.bined Food Board, which thus far has sent the greater portion to Duropo. Internal transportation in Argentina is said to he in a bad way and right now, after having given priority to movement to the ports of flax during December, wheat for Hurope is receiving first consideration, - nevertheless there are 18,GOO,OfX) pounds of linaeed oil due to arrive next week; it is contanlnated oil containinft.perhape 4 or 5^- fuel oil and until sa/ples are received it will not be 'nown whether it Is suitable for our use, but otherwise itcan be used in floor covering! or in core oil eo that the net result will be to oaks an equivalent amount of doerestlo oil available for our use,* There were also 350,^00 bushels of flax purchased for shipment in January but this has not yet been shipped because of a dock strike, ;;r. Priest reported that the political situation in Argentina is much confused and there have been published reports that the Argentine government finds itself unable to meet its commitments because of the low price provided by the^agreeaent -*ith our State Depert -ent, The farmer gets 0,1.28 at the port and we pay $1,66, In the De partment* of Agriculture they tell us they have received no official confirmation of this report but nevertheless it appears that the Argentine government is not selling and our government is not buying, There is an election due in Argentina within the next thirty days and it has been suggested that the present government does not wish to embarrass its successor but that, if reinstated, it will seek to renegotiate NCA 0 03078 fcr a higher price. Ha stated that the people in the Department of Agriculture appear to he fully alive to the seriousness oir the situation and are doing everything they can to helm, "r. Jasspon has teen dovra there for the past two months and is now on the ray tack; in fact* conversation with hi9 office "by telephone this morning has rev3riled that he is in wiani today and will he hack in ..'ashir.gfcen within the next day or tvo. In his absence* his asrociates have teen unable to get <-*ov?n to an intelligent analysis of the prospects for the next few mouths without a d finite 'movrleige of the arcant of flaxseed ve are going to get from Argentina and '.hen ve are going to t it. This vill he developed shortly after !.'r. Jasspon's return and ve shall of c;:.:-oa arr.uv e to see hin and to review the entire situation. ' It should he pointed out said Kr Priest that even though, at the worst, it is not possible to obtain the 100,000,000" pound - of oil from Argentine seed during the first six months of this year upon the c. ..motion of which the 75 Per,:'r*t quota was based, there has been a materiel improve .ent in the domestic situation. The estim ate made last Septenf er included cnly 5^"* 000,'-00 pounds of oil from cur domestic crop. This was reached by taking 83^ of the July estimate of 33,OCO,COO bushels as the amount which vrould probably come to market, based on the e:.-perience of recent years, and figuring 20 pounds per bushel on the resulting 2f^ million bushels. The last and final estimate of the crop in Decea*-or was 36*8 r: lion bushels, and upon the same basis this would indicate a total of 610,000,000 _ ounds of oil in stead of the 5U8,000,000 entering into the original estimate. Cn the other hand ve are told that the farmers appear to be holding back a considerable quantity, pos sibly in anticipation of an increase in the ceiling. It has also been suggested that the Department of Agriculture has been withholding final announcement of its 19U6 crop incentive plan for fear famert night be holding back sone I9U5 flax in an effort to cash in on it in 19U6, the preliminary announceneat in November having stated that the price would be supported, by acreage paynents or otherwise, at *3.60 per bushel at Minneapolis, which is 5<V ft bushel in excess of the present ceiling. He stated that it is also possible that there nay be lesser quantities of some of the other drying oils available than was contemplated in the September estinate. The California fish oil crop is said to be short by 20 or 25;> Castor oil has been scarce and for a tine recently was withdrawn fron the market, '.'hile it is under stood that there have.been internal transportation difficulties in Brazil which are responsible in part at least for the smaller quantities of castor beans avail able for shipnent, our ceilings for oil are based on beans at $75.00 per ton and the price has gone to $100.00 or more so that it has been inpossible for crushers to buy beans at thle price and to sell oil at our ceiling price without taking a l^ss. 3ecently,in t&Jg'belief that their appeal to OPA for an increase in price would be granted they hflff* 'been neking sone deliveries tn open billing, not to exceed 2$ a pound above tHe present celling, after OPA has finally acted upon the appeal. Soy bean oil is prohibited for use in protective coatings except as a plasticizer for lacquers and in the manufacture of synthetic resins. After the end of the war the use in resins increased markedly and because there is still insufficient oil to meet edible requirements the Department of Agriculture issued an order limiting monthly use in the manufacture of roin to l/6 of the. quantity.so used during the first eix months of 19^5*' Hecent arrivals of small lots of tung oil from China have given rise to many con flicting reports concerning the resumption of large shipments. *fa have been unable to develop any accurate information concerning the quantities available for export in China and the probable date of shipment. It appears likely that the snail lots of 40 to 50 tons which have been received and are in transit have been held at the ....... NCA 0 030 79 -7- ports during the var and are Just coning to light, and reports of the analysis 0f the oil which has been received appear to bear out this conclusion. Apparently there i3 much left to be done in the vay of stabilization of currency* establish-- rent of bank credits, and restoration of transportation from the interior to the ports before we can look for shipments in oubstantial c;.-. entities, " f Mr, Fricst stated that glycerine, used in the manufacture of synthetic resins, is ' a bv-prciuct of soap manufacture and is currently very tight. Like ourselves, the soap r""ufecturc-rs are operating under a quota, and prior to the s.-.d of the '-nr hoi exempt military uses but with the cancellation of military contracts their cons a ction of oil and production of glycerine vas greatly reduced. Soap manufacturers * have always used considerable quantities of coconut oil from which the yield of glycerine is greater than with other fat3 and oils, including lard and tallcv. Luring the var we got sene coconut oil fron copra fron Ceylon but that is now all going to Lurope fn the e:cpectation that cur requirements will be net by the Philip pines. Three or four months ago we were told that we mi ht expect 50,000 tons of Philippine copra in Tovenber and December, but actual!-/ received only about 3pOO tons." The Japs took away all the trucks used for internal transport on the islands and also the inter-island steamers used for taking copra to tbs Philippine refin eries or shipping ports. '*e are no\# getting sons of our trucks into "these islands and efforts are being made to improve water transport so that it now appears that '-e nay expect 75*000 to 100,000 tons in the first six months of the year end pos sibly twice that in the last six months, as co/ipared with normal receipts of 500,^00 to 600,000 tons per year* Surplus Paint Materials Mr. Priest stated that up to the present tine at least the surplus paint: materials which * ave jic.de their appearance have not created the serious problem that' vas antic*, uted and it is possible that it will not prove to bo a very serious problen at any tine, "e began our discussions with the Treasury Department, which was ' originally designated as the disposal agency, more than two years ago. Then the Reconstruction finance Corporation cane into the picture and for a tine it appeared that there night be a division of authority, with ths Treasury Department handling consumers goods or trade sales itens and RFC taking the specification finishes, many of which would require reprocessing. tfe were successful in our representa tions to both Treasury and RFC that there should be no divlsioh of authority and it finally all wound up in the hands of RFC* Of course theyjhave only what is declared to then as surplus and up to the present time most of material which has been offered has created little interest. In the beginning*# circularised several lists for then anong nanufactnrers but they are now asking'their own distribution and because .of the criticism directed at ' the Amy for negotiated sales they have felt that they had to advertise and other- v/ise offer these naterlale for sale to the highest bidder* There were several million pounds of dry povJer cold water paints that were used to reinforce levees on ths Mississippi* There has also been a quantity of resin enulsion camouflage paint, sons of which has been sold In South America* Most of what they have now is in two specifications for which there appears to be no narket* *fe have urged I its use on lTavy and Marl tine Connlsftion, but thus .far without success* As for { specification finishes for automotive transport, etc., it appears that disposition uay have been node in the course of contract termination; at any rate there have been no large declarations and there nay be none* Cantonment paints are also . noticeable by their absence and are probably being held for naintenance* NCA 0 03080 -3- He said ft is interesting to note that in a recent r-eeting with renter3 of cur Ac:;ciation Committee on Surplus Haterials, the representatives of the govemront then-'* selves expressed the opinion they would obtain best results by Seeking out the original manufacturer and offering it to him.and, if not interested, asking his ad vice as to uses to which it sight be properly put, **hich is in effect the original recommendation bf the Committee. two years ago. Has in President Trigg ctated that he had invited i.'r. "ells i'srtin, Chief of the Plastics end Protective Coatings I-rar.ch of the Che.vica.ls Division of the Civilian Product!:n .-.dr. ir.i strati on to attend this meeting to bring the Co..: ilttee up to date cn the sub ject of "Rosin". Hr. I.'artis. stated that known. stocks of all twenty or more grades of gun and wood rosin as of December Jlst, 1S^5 in the South, according to the De partment of Agriculture, amount to 1S5,OCO drums arid that the estimated stocks in consumers' hands amount to 270,000 drums, or a total of |i^0,0C-0 drums as of D:cem ber 31st, 19^5 in comparison with *SS,cSS as of :.r;rch 31ot, 13U5 - *72,839 drums as of December Jlst, 1^4U and drums as of . arch 31st, 13-1-4, He pointed out that in spite of severe restrictions* both 6n dCD03tic use and on exports, the short position on rosin has shewn little or no improvement during the past twelve months - and that no worthwhile increase in production has been shown throughout the past eighteen months despite various price advances from CPA, se cured by the gun producers for the stated purpose of assisting then to increase pro duction. He pointed out that notwithstanding a price advance on E-grade of gum rosin froia '"2.10 per 100 pounds on December 31* ly'-W to \'>6*G0 on December 21, 1945, gum rosin production has not improved. Ke expressed the belief that this was pro bably due to labor shortages and advorse weather which were both beyond the con trol either of the industry or of the government* Hr. I.'artin stated that up until li?3t week no evidence existed of any substantial return of labor to the woods, and ho pointed out that Gum ITaval Stores work is hard, disagreeable labor and that those who do return to timber areas prefer logging and pulp work to ITaval Stores work. He reported that expert opinion is not en couraging in its estimate of the number of nen who will return to Gun ITaval Stores work, provided other work is available and provided also that a certain class of these workers has any noney left* . Hr. Martin stated that the heavy production of gum rosin occurs in June -nd that the percentages hy months from January through June run as follows, according to the Department of Agriculture! January 2^ - February 2J - liarch 25* - April 8$S Hay 115S - JuneJU50* Ur* Uartln pointed out that gun rosin production has already been hampered SITsone areas because of unusually severe rains in the '.foods during the past seversdt weeks and he expressed the opinion that the production between now and Junef pta* current wood rosin production, cannot moot current needs by the rosin consuming industry and he expressed the belief that to meet requirements during the next few months, use quotas under H-387 should be maintained at present levels and exports should not be increased. Ha pointed out that it is a physical impossibility for many large individual users to keep a five-months inventory - end that a great many small users either do not or cannot keep a five-months inventory. He stated that past errperience would indicate that there is a large unreported dis appearance of rosin* Hr. I'artin stated that the period between now and July 1, 19^6 is a critical period for rosin and other resine and he pointed cut hat the removal of all restrictions within that period could result in a chaotic condition - : inco there aro no cots_ pleta substitutes for rosin* He pointed out that larger usors could take up practi cally all rosin available and that SXport demands alone could take up most of the NCA 0 03081 -a- * resin within sixty days, Mr. Martin expressed the opinion thr.t the proble'-i now is how to carry the com paratively snail stocks of rosin in the South. He stated that Uncle San had. carried the stocks until the government stockpile vas exhausted, having been drained from 1,300,000 barrels down to 6,000 barrels in less than four years tir.s and he ex pressed the opinion that this condition belic-d th.9 statement that there \-as too ruch production and not enough demand in this country. He "'stated that the dealers carried the stocks when it vas speculatively advantageous from then to do so tut pointed cut that the speculative angle is not r.ow precent. The Commodity Credit Corporation cannot offer ar, attractive solution la-ed on prsssr.t gen rosin prioss and he pointed out that total resin stocks in this country are at about th:-ir low point in almost fifty years. Mr. Martin stated that the heavy increase in anticipated vood rosin production - so widely prophesied - depanis on the completion of plants, the largest of which is still in the craving board stage and he pointed out that no heavy increase can cone in either gun or vood rosin production before the period July to September lgU6. He expressed the opinion that tho highest possible increase for the year in both guns and wood rosin would he '400,000 dru.ua and statod.' that based cn past ex perience it is more likely to be around 300,000 drums, fro;i which 200,000 druse will be required for export and 50000 drums fof rubber and he pointed out that any discussion of large production increases should be considered in the light of experience during the past three years sir.ee weather and labor conditions are still factors which have to he taken into consideration, ' Mr, Martin stated that the tight situation on rosin is hound to continue throughout this calendar year - and there is not enough rosin in existence to meet the re quirements this year - and that the Civilian Production Administration is deeply concerned about the whole situation, ................... Mr, Martin stated that these facts had been presented to Congress but that it was apparently considered as not pilitically expedient to continue the ro3in order in effect. He expressed the opinion that within forty-eight hours the order might be revoked but stated that GPA will endeavor to hold the line on export against an . anticipated demand for increasod expert. He pointed out that the paper industry's demand for rosin during igU6 will be fron two to three tines as high as it was in I9U5 and that the demand fron the rubber industry will be increased 50f> over their last year's use. In answer to a question, .> Martin stated that CPA is trying to stay out of the titanium situation and he expressed the opinion that the titanium industry bad done a swell Job taring the war years and was being asked to continue its uethod of distribution^^ In answer to a question by President Trigg, as to what our industry could do to stem the growing tide of rosin expert, Mr. Martin stated that he did not know what the industry could to at the present tine but would keep the Association advised of any developments. He stated that CPa Ma s an agreement from PZA that they will stay within their quota for the next t\/o months and would continue to work with CPA in handling the situation; he pointed out that ?ZA is under tremendous pressure from foreign countries for increased export. President TriGg asked if an expression from this Connittee as to how it felt regarding the situation would be of eny value and it W3s moved by Mr. Korn, seconded by Mr. Sulzberger that the Committee express itself to proper authorities regarding its position on the question of rosin ex port. Motion carried. . NCA 0 03082 10 - Kr. !.`artIn stated that a letter has tesa sent to the l*avy Depart.-in t request in- a red-action in their use of titanium. * In answer to a Question by hr. Kir.-nan, Kr. Martin stated that the new production of titanium is to ha handled by the ; inducers in the sane manner as rroducticn during the war years vrs handled; he pointed out that the demand at the present tine for titanium is 200f of present prediction, but lie expressed the belief that the r.ar.ufacturers will be very fair in their demands and that the nroducera of ~ titanium -.-ill be successful in their handling of the situation. Mr. Meur.snr. expressed the opinion that in view of the veteran preference! titanium man ufacturers '*ould find it vary .difficult to govern 'he situation. .A meric-a--n----S--tandards A --si Is o--ciation 1 f' tt </ I * ***^ The Secretary stated that the American Standards Association is a federation of sene eighty national technical societies - trade associations and government departments which has as its rain job the development of national standards through the cooperation of all groups concerned with that particular field. Ee stated that some members of the Association have expressed the belief that it might be beneficial to the paint industry if the rational Association held membership In the American Standards Association so that our industry could be kept advised re garding all proposals for standards which night affect the paint manufacturing business and so that proper steps could be taken to prevent" detrimental action.It was moved by. Mr. Toy, seconded by Ur. Meluo, that the National Paint, Varnish and Laccuer Association apply for nc-nbership in the American Standards Associa tion. Motion carried. Report of Treasurer Treasurer Foy . oferred to the Comparative Balance Sheet as of December 31- 19**5I9UU and the Report of Income and Expense for the period October 1 to December 31, 19^5-13^* (Exhibit To.- 7) and pointed out that the Investment Account la up approximately one hundred thousand dollars, that there is an increase of Income over Expense amounting to twenty-eight thousand dollars - that the surplus after an appropriation of one hundred thousand dollars for the retirement Plan is practically the sane as it was last year - that Incone from Dues for the quarter year are approximately ten thousand dollars in excess of last year and that the various expense items are well within the budget*' ................... ................................. President Trigg pointed out that the fourth quarter year is normally low in ex pense as compared to Incone which explains the rather large excess of Income over Expense. Itxw.Sulzberger suggested the possibility of adjusting the annual budget so that expssfi* items would be allocated to those periods in which the expenses occur but ?Sftslde&t Trigg pointed out that the present system has been operating satisfactorily for many years and expressed the belief that no change should be made at this tine* Kr. Foy stated that the Budget > Finance Committee had reviewed the financial statements yesterday and recommended acceptance. After a careful review of the various schedulesi it was moved by Hr* Shannon* seconded by Mr. ITeunann* that the report of the Treasurer be accepted; Motion carried* Report of Budget c- Finance Committes ' Ant'roval of I9H6 Budget NC A 0 03083 Kr, Foy as Chairman of the Budget ( Finance Committee stated that the committee was in session most of yesterday roviewing the proposed budget for 19^* He 6tatod that the estimated receipts for 1946 amounted to approximately $3^3*000 " 11 - I'.-.st the proposed budget for 15U6 amounted to approximately C301000 - that a-.tual expense in 19^5 v;e-s approximately .2^1,000 and that the increase of approximately f.cOfOOO in the proposed budget ever the expense of 19^5 i node up of !*-12,COO in crease in salaries to trim; the salary structure fnto line - A33OCO increase in C?ean Up and Pair.t Up budget, as approved by the Executive Committee at its last meeting - '5C00 in building maintenance (painting) - '.5,000 Teacher's Manuel - *1,200 Tear Book publication - i?l,S0O Cooperative Advertising Campaign and s,2,r-CiO increase in traveling expense* hr. Toy pointed cut that on the basis of anticipated income, there vas an apparent excess of Income over Expense indicated in the amount of approximately ::J0,C00. i.'r. Toy stated t!;at the budget had been carefully con sidered by the budget Fir.ence Cccr.ittce at its moating yesterday - that each item had been analyzed and that the Committee rectnyended the budget for approval. It vas moved by Hr. Horn, seconded by I.'r. Kinsman, that the budget as proecsed for 15^6 be approved, i.'otion carried* * U. S. ITavy Certificate of Achievement President Trigg stated that on January ikth. 19^6, the Association recoived from the Mavy department a letter reading as follows* "It is my distinct pleasure to advise you that the "avy's Certificate of Achievement has been awarded to your organisation. "This certificate, which is being sent you under separate cover signalises the -avy's recognition of the splendid effort put forth by the nen and vomen of your organization in support of the war production program. "V.'e hope you will express to these nen and wonc-a the Uavy's sincere apprec iation and thanks." " President rigg stated that the Certificate reads as follows* "United States ITavy Certificate of Achievement awarded to national Paint* Tarnish and Lacquer Association in recognition of exceptional accomplish ment in behalf of tb* United States ITavy and of meritorious contribution to the national war effort." Signed - H. ?. Hensel, Assistant Secretary of the ITavy Dated - December 26. 19**5 Hetlroment Plan Mr, Toy stated. #t * mreat deal of tine has been given to the development of a retirement plaasad that the Budget ' Finance Committee spent much of Its tine yes terday considering this matter. He pointed out that .*100,000 has been set aside by the Executive Committee at their meetings of last July and October and that the Special Committee appointed to consider the matter had reported progress at the October neeting. He stated that there is a difference of opinion both in the Special Committee and In the Budget A Finance Committee as to whether or not a Trusteed Plan or an Insured Plan la the better plan to adopt and he statod that it vas finally de cided by a majority to adopt the Insured Plan with life insurance coverage through a life insurance company^ He stated that the President had been authorised to have the plan drawn up to he referred to the Budget < Finance Committee for final ac ceptance. Mr. Foy expressed the hope that by the tine of the April neeting of this committee it would be possible to report the plan in action* NX A 0 03084 12 Report of Sellntific Section Kr. George G, Sward, Assistant Director of the Scientific Section presented the .`rllcving report* ' `.-.3 v-isihle results of- the past quarter are not very imposing, consisting of V-o circulars, two Abstract Reviews, and the annual indexes'for all the circulars and : e-views issued during I9V5, However, progress has teen nade on the Resin Index, ?re-* sc-rvatires circular, a report on the oil-conservation paints, and a circular.desi-r.ed to call attention to the r.eed for paint after the vartir.e period of neglect, A ~ circular on testing ir.sc-cticidal paints is now being reviewed ty the Scientific Section t.ur.ittoo. ' Still in the mill are nur.srcus activities that should have good results. The r.ost imortant of them will he mentioned in this reuort. Pursuant to i art ructions of the Scientific Section Committee, a plan hue teen out lined for obtaining inersased GRO'.'IEG OF DP.YITG OIL CROPS* Playing a principal role will be visits to agricultural experiment stations, fens organisations, chanters of commerce, and to others who already are or night become interested in this subject, H.-eiy opportunity to direct attention will be seised. .t the present tine expert ir-ental culture by us is not contemplated. It is hoped that our noral suport will result in experimental work by those nore qualified them we. It is a long range project and has been placed under the direction of **r. Scofield to whan is due the credit for most of the details. Ur. Scofield is right now planning a trip through the Southeastern states and as far as Texas in the Southwest* A conference has been held with Ur, Donald Tulloch, Jr., Uanager of the AstestosCenent Products Association to discuss plans for COOPtP.iTIVE ?All*T TESTING. This testing would be on a practical scale in ceveral places where dirt colic ;oa ser iously detracts from good appearance, '..'e are asked to supply the paint ar.d the other Association will apuly it* 'This project was first mentioned in ay October report* The attention of our membership has been directed to regulations of the Corps of Engineers relative to the use of fiberboard in buildings used for certain types of occupancy, where TIES RESISTANCE is demanded* Since the regulations may be extended by other authorities to a wider field of construction, a demand for fire resistant paint any be imminent Considerable time has been used In conference with Urs* Kiefer in the preparation of the text fox "Paint Power -- and How to Sell It** A survey of tlfe'sclentlfic research activities of some thirty trade associations has been completed and summarized and is ready for the consideration of the Scienti fic Section Committee at it* next meeting. ...... ^. ... ......... The adjustment of secretarial and stenographic work necessitated by the retirement of Kr. Sutler has proceeded smoothly. Ur. Butler naturally was familar with every phase of Scientific Section activity. However, I-re. Edwards is alert and eager to serve and there is every indication that the secretarial work will be properly done, . The personnel situation in the laboratory is soneVrhot improved by the addition of lir. Alexander Bolton to the staff*. Ur, Bolton is of junior standing in college and was in the Army for 3^ non tbs where he was a photographer in a bomber* He was in 19 missions over Europe* NCA 0 03086 - 13 - fan Eeuckcroth who has been in the Corps of Engineers since "ehnary ljUl vill he placed soon on Inactive status and has advised us that he will remain at *-ort Felvoir in a civilian status in charge of the laboratory and will not return ns a member of the staff of the Scientific Section. After ten years of effective service, Hr, Frank Sulzberger has declined reap-c-Jr.tnent as chairman of the Scientific Section Committee, hut will continue to serve as a member. Mr. Sulzberger has been succeeded by hr, Z. W. Fasig, veil Vr.ov.-n to all of you. Mr. Fasig is fariHa? 'dth the work of the comittee, having been a nenber for three years, and his chairmanship is certain to bear excellent fruit. In answer to a question by Mr, Lane regarding "Aquella", Mr, Sward referred to a letter issued by the rational Fureau of Standards (Exhibit Vo. 6) in which it was stated that "Aquella" vas not included in thoir test to the extent referred to in recent magazine articles. Mr. Korn stated that "Aquella" is just another Fortlsnd C-:ent base paint -- that it was not used to waterproof the Magir.ot Line as indicated in the advertising - and he expressed the opinion that "Aquella" -`as reground Port land Cs.rent with color added. Mr. Kinsman expressed the opinion thst the entire situation was hardly worth consideration. In answer to a question by Mr. Sulzber-cr regarding "fireproof paints", Mr. Sv.-ard stated that in certain types of oc cupancy here fire resistant construction is required, fibreboard nay be used pro vided it is covered with asbestos cement or other board of equal resistance -- or if it is painted with a suitable fire resistant paint. The test for fire resistance is rather severe, namely twenty minutes in a flame developing a temperature ot SOOC* The material nust be no worse than "slow burning". Only one paint has been found, to pass the test. The Scientific Section has not examined this paint and has no information regarding its composition. Mr. Sward 6tated that ia-sc-far as he knew the requirements of the Corps of Engineers have not been adopted by any other Gov ernmental Agency. Titanium ' President Trigg stated that throe persons are present who should be able to give the Committee up to the minute information regarding the titanium situation. Mr. Falph Neumann, '.few Jersey Zinc Company - Mr. J. 7. Daley, 3. I. duPont de Nemours Conpany - and Ir, D. W. Robertson, Titanium Pigments Corporation. Mr. Robertson expressed the opinion that there is very little new to bring to the members of the Connlttee regarding the titanium situation. He stated that all of the titanium producers are doing everything possible to inc: ease their production and he expressed, the opinion that the total production of all plants might be in creased from lH0000 tons to ISO,000 tons by ths first of next year. Mr. Robertson stated that had heard soma comment regarding the possibility of substantial in creases In promotion by the end of July 19^6 but he stated that due to oteel and electrical strikes. It vaa improbable that there could be any substantial Increase in production before the end of ths year and he pointed out that it take* from fifteen to sixteen months to complete any substantial additions to production facili ties barring strikes. In answer to a question regarding the possibility of import ing titanium pigments from Surope, Mr. Robertson stated that these pigneats are more scarce in Europe than they are in this country and that our manufacturers are being urged to make their products available for export. He stated there are two plants one in England and one in Germany - producing titanium and that there are no idle titanium plants in Europe* Mr. Robertson stated that the titanium producers we're doing everything possible to relieve the shortage and ho expressed the opinion that there Is nothing the Association can do at the present tine to change the picture, since everything is being done that can be done. Re stated that approximately 150,000 tons - 300,000,000 pounds - night be a good guess for production by Pell of ' 19^6 and ha stated that the present demand is for two or three tines the current . NCA 0 03036 * 1* -raductloa. In ansver to a question by Ur. Bov.-nes, Ur, Robertson stated that the demand for titanium pigments has doubled every five years and he pointed out that there has teen no Increase in equipment during the last five years. He reported that two or three years ago, his conpany with other producers,-endeavored to get '.V3 ap proval for extension of plants hut that it was only recently that the racucst vaa granted. In an ever to a question by Ur. Rurfees, Ur. Bobertson stated that the `.'avy is planning to purchase more titanium pigments than in any year in the past - that they hope to produce their entire requirements of paints ar.i do not plan any heavy paint ^urchn-c-s. In cnsver to a question by hr. Steudel, hr. Bohertson stated that there is no problem in sight for the next two years insofar as supply of ore is concerned. In answer to a question by Ur. lane, Ur. ?.ob:rtson stated that in the distribution of titanium, all industry quotas will be nr intained and that no one industry will be penalized in favor of any other industry, He stated that if end when production is increased, the increase will be byread over all industry needs. Ur* Daly stated thare was very little he could add to vbst ilr. Robertson had al ready said. He stated that his guess on total production ie 13^,000 ton6 and he stated that the Uavy will take 6 of their production during the first quarter of this year, which-is somewhat less than their estimated needs. Ur. Daley stated that the p?-in.t industry will get their full percentage of the total production. He expressed the opinion that his company was not so honeful regarding the raw material situation and stated that tho State Ruler *0 India has expressed 33me op position to the continued removal of Ilimite frou his country. Ur. Daley- stated that the India Ilinite is the best ore anywhere available, having a 60? titanium content in comparison to Adirondack In answer to a question by Ur. Horn, Mr. Daley stated that the increase of paper pulp dees not reduce the demand for titanium since the paper industry had learned during the var of the value of titanium in their product. Ur. Daley stated tliat his conpuny is doing considerable work in an effort to develop new deposits of Ilimite in the United States. In answer to a question by Ur. Daley, President Trigg stated that when the paint industry reaches its billion dollar volume (estimated to be that figure will be 66 2/3^ higher than the production In 194l and he expressed the belief that the requirements for titanium will exceed the percentage increase in paint production and might be as much as ZOfu In answer to a. question by President Trigg* Ur. Daley stated that he agreed with the figures etftted hy Ur. Robertson to the effect tint titanium requirements had increased 100gpvery five years and that from 19^1 to 19^6 there was no appreciable increase in protection facilities....He stated that the paint industry took of the titanium production in 19hl and that the paper industry received 12jS. In answer to a question hy Ur. Kinsman, President Trigg stated that the Association*s estimate of probable increase In paint production was based on government figures for national income plus a careftil analysis of the amount of our product required { on the proposed production of houses, refrigerators, radios, automobiles, etc. Mr. Kinsman stated that he believed most people would agree with the estimated figures V for theiext three years but he expressed sons doubt beyond that point. Ur. Neumann stated that there was very little he could add to what had already been said regarding the titanium situation, and he expressed some doubt as to where other raw materials were to come from to make the projected increase in paint NCA 0 03087 - 15 - 1 production possible. He stated that there are t-fl bottlenecks in c:r.r.oction with zinc sulphide* first equipment and second, zinc raw caterials and he expressed doubt as to where zinc raw materials in sufficient quantity were to be fovnd. In answer to a question by I;r. Sulzberger* Ur. Ibunahn stated that there has been a 30# reduction in the production of lithopene during the past t`:-n y... Vit that every bit of usable equipment is r.cv; being used in the pioda-tion -,,f pi*, .^-ts. In answer to a question by Ur. Horn, Ur. Robertson stated that thero is no oc6sibil~ ity of increasing the production of titaniua by delivering it to custoners in a . s ez.i-fini shed fern to be flushed. lfcnborshio ' The Secretary stated that the following fims had been elected to cenbe.-ship in the Classifications indicated by a sail ballot since the last nesting of the 2*$en tire Cor.nittoe! Class A . Art-Tax Adhesive Products, Inc., Brooklyn, IT. Y. Seal-.d Paint * Tarnish Corporation, Brooklyn, Y. Standard Bnasel and Paint Corporation, Indianapolis, Indiana Stuiebckor Chemical Company, Blyrin, Ohio .. - Cla-s 3 Filtered Ro6in Products, Inc., Brunswick, Georgia The Secretary stated that applications had boen received fre the folio-wing con cerns for nanberehip in the classifications indicated and he recoiznended approval* Class A. Best Bros. Paint Factory, Clifton, K. J* H. A, Carroll & Company, Ucnphis, Tenn. Logan-Long Conpany, The, Cincinnati, Chio .JMd^Oity Paint Company, Hemphis, Tenn. Preserve Surface Company, Inc., Detroit, Uicbigan Robertson Co., Inc. Louisville, Kentucky Venatchee Paint Glass Co., Venetcboo, Washington Wolverine Finishing Materials Co., Grand Rapids, Michigan Class B Pan Aawrican Refining Corporation, Texas City, Texas Class B Cadillac Vail Paper Co., Detroit, Michigan It was moved by Ur. Valter Clark, seconded by tlr. Jarden that the applications for oenbership as presented be approved. I lotion carried. Hetal Containers In answer to a question by President Trigg, Ur. Stolk stated that the present situation with regard to netal containers, duo to the steel strike, was not at all NCA 0 03088  _ (' ' `` 16 ` ;eful. He stated that there vas no opportunity to build up any inventory - that vtair.er r.snufacturers are in a position to sup ly the needs for fioa two to ree v.eeks at the nost but that they are hopeful the steel strike will be fit . i id ri the very near future. He stated that his corpaay is planning to use their i.n* -entory down to the last sheet* Ad.< t There being no further V iness to core before the Courittee* the meeting nijc 'r.'ei at 3*^0 -~U* P \ ry { Kj NCA 0 03089 0 0 p Y ?. MAIL January 2* 13^-6 S-.-j. Traneiseet Calif. This is intended to confirm, and perhaps to anplify, Kr. Trigg's tele phone conversation, with you today. Ke discussed the labeling problem with Dr. Matson in considerable detail. Friefly, Dr. Matson is of the opinion that perhaps the best approach to a solution would bes (1) To except paints cr.d ether coatings from Section $4 and consider the paint labeling problem separately in a r.ev section. It is very difficult to deal v?ith the proposed labels new covered by Section 94.5 as they deal net only with tho chemicals but with cur finished p.cdvcts. The hazards cro different. A clear separation, and a sopar..to ccs.r-i deration r.&y render cloar thinking easier.. (2) It nay be advisable to be prepared to except frem a proposal to use a ger.oral caution label, products containing benzol or methanol. They are recognized as dangerous. If the Department has in mind our uso of a nero caution label on these products it might resist. If special labels are accepted by our industry for these products,.it is possible that the State authorities may be inclined to accept the general labels. In view of the fact that nest manufacturers in California U9S formula libels,.this foot may be used to support the general label proposal. Mot .'ne*4bnt all ingredients are disclosed. In ths event cf on indus trial illness,.all infer.nati*>n useful to a physician is disclosed. Of course, it is undesirable to invite formula legislation, but universal voluntary formula labeling night be persuasive. Dr. Matson ortocts to arrive on February 11th and to confer with our n.-nba.-s on the 12th. . Vory truly ycur3. ` x, "o ec Mr. C. H. Scr.ihr.ua Sr. '-b-rre-n Mutc.cn /s/ M.. q. M-ACIGMAiD C:.-.erol Cc-r.sel MCA 0 03090