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\ \ HISTORICAL REPORTS ON DEFENSE PRODUCTION REPORT NO. 29 MISCELLANEOUS METALS AND MINERALS History of the Miscellaneous Metals and Minerals Division of the Notional Production Authority June 15, 1953 i!f II. S. DEPARTMENT OF COMMERCE NATIONAL PRODUCTION AUTHORITY WASHINGTON 2*, 0. C CRMC-M&S-003323 HISTORICAL REPORTS ON DEFENSE PRODUCTION EXPLANATORY NOTE Early in 1951, the President requested the Director of the Bureau of the Budget to establish a Federal Defense History Program for the agencies engaged in emergency activities following the Korean crisis of June 1950.1 The purpose of this program was to prepare for the guidance of officials in the event of future emergency a use ful record covering the experience of each of the defense agencies concerned with some particular aspect of the current mobilization program. The present series of Historical Reports on Defense Production records the ex perience of two of these agencies: The National Production Authority and the De fense Production Administration.2 Collectively, these reports provide a substantial body of reference materials about the major aspects of NPA-DPA operations. In dividually, the reports contain, in varying degrees of detail and in varying degrees of adequacy, the basic facts about particular functions, programs and activities of the two agencies. The individual reports in this series fall into three general groups: Joint DPA-NPA Reports; DPA Reports; and NPA Reports. Three copies of each report, complete with text and documentary Appendices, were prepared. One of these copies is on file with the library of the Bureau of the Budget, and two copies are on file with The National Archives where they are available for permanent reference. The text of each report, without the appendix material, has been reproduced to meet two needs: First, those of peace-time mobilization planning officials; and ^second, .those of operatingj>jfficiala in the event of future mobilization. A supply' . offcopies adequate to fill these needs has,been placed in the library of the Office * '-.of^.Defense Mobilisation.' Since the reports are intended "For Official Use Only," ; no. other distribution of copies has been made. A number of points should be kept in mind by officials making use of these ma terials: 1. The series does not include an over-all integrated analysis or critical evaluation of DPA-NPA operations. This was not undertaken because an adequate, qualified staff was not available, and because it was necessary to bring the histor ical program to conclusion before all aspects of the Defense Production Program had been completed. However, in the case of several DPA Offices and NPA Bureaus, the reports originally submitted by their divisions have been brought together into a single office or bureau report. This was done to give a more unified and integrated account of operations in the area concerned. 2. Several important areas are not adequately covered, including: The Office of the DPA-NPA Administrator; the Office of Construction and Resources Expansion, DPA; the Office of Production, DPA; the area of International Activities, DPA; and, the area of Post-Attack Production, DPA. 3. The period covered varies from report to report. In all cases, they begin with the inception of the function treated and extend through an arbitrary cut-off date, either late in 1952 or early in 1953. The reports thus cover primarily the period in which organizational and operational problem were most serious, but they ^Letter, The President, to Frederick J. Lawton, Director, Bureau of the Budget, January 29, 1951. 2Stej>a taken to iapleaeat the Preident'a progran by CPA and NPA are indicated in the following documents. Latter, Manly Fleiacbaana, DPA-NPA Afainiatrator, to Frederick J. Lawton, Director, Bureau of the Budget, Auguet IS, 1951; Meaeraadun, Henry H. Feeler, DPA-NPA Administrator, to Heads of all DPA-NPA Offices and Bireana, Jana 9, 1952. For e fall account of the DPA-NPA History Program, see Report No. 3 (Executive Secretary'* Office) in this aeries. Com-- DC--104753 "5Cft CRMC-M&S-003324 2- - merely set the stage for the reorganization and decontrol actions initiated early in 1953. 4. The reports were prepared by operating officials and hence tend to reflect the views of the operating office or division. Authorship of each individual report is indicated in the memorandum of transmittal which is here reproduced along vith the text. No attempt was made by this office to substantially revise the individual reports as submitted by the various divisions and offices. Only minor editorial changes and changes with respect to the form of presentation were made. However, where appropriate, the reports were reviewed and corrected for legal accuracy by the Office of the General Counsel. Classified material was deleted from the text, but many of the official copies, especially the Appendices, filed with The National Archives, contain a wide variety of classified documents. 5. Special attention is called to the Appendices, most of which containbasic documents relating to general policies and programs, and to general and special operating procedures. Footnote references to these materials are carried in the text of the reports as a guide to the documents which are readily available for use at The National Archives. Although the reports in this series are limited to the extent indicated above, it is hoped that they will prove useful to those who may be charged with the respon sibility of defense planning, and with actual mobilisation in the event of a future national emergency. Additional sources of information for use in this connection willbe found,among the permanent records of the two agencies, and in the other re ports expected to result from the Federal Defense History Program. ' --106753 Geobge `V. AirxiEF., ExccwVS-e Secretary Defense Production Administration and National Production Authority V r CRMC-M&S-003325 Historical Reports ob Defease Proiwetioa o 0 1 ' & Joint NPA-DPA Reports No. 1 Orgrairation for Defense Production 2 Administrative Mmageaeat 3 Esgiediting and Docuraating Btecotira Actions 4 Public Inferastion Policies nod Pro gram 5 Production and Distribotion Controls 6 Eeoneaie Statistics in Defease Mobili- ration DPA Reports 7 Alaeioas Facilities Eapsnsien for De- 8 Btpraaiaa of Facilities for Delano*1 9 bpl end Legislative Activities E Istsraatioaal Activities1 11 Labor Participation in Defease Prodoc- tios , 12 Mabiliratiaa Baao Policy osd Ptograei IS fMb^Tpelicy aodExpediting1 14 Conserrstiao at Materials* ia Defense Production 15 Programing for Defease Frodbcticn NPA Reports IS Assuring Equity ia tbe Adnaittntua of Central Orders sad Regulations 17 Eaforcesrast of Prograss Through Adainistrative Adversary Proceedings 18 Legal, Compliance and Enforceaeat. sad Legislative Lisisoa Activities 19 Consultation fitb Industry 20 Saell Baaineas ia Defease Production 21 Maintaining the Civilian Eeomony for Defease 22 Labor Participation in Production for Defease 23 Facilities and Construction 24 Early Organization for Industry Opera* tions 1 Sftru ot yiMHMl. Coin ta lltlntl ArcblvM oaly. SPA Reports--Cea. Ns. 25 Metals and Mineral* Efereau Qxrseieas 25 Almiam and Ma^aasiuB 27 Copper 28 Iren sad Steel 29 Miscellaneous Metals awl Minerals 30 Salvage 31 Tin, Lead and Zinc 32 Qmical, Rubber end Forest Products Harass Operations 33 (Weals 34 Containers sad Packaging K UHMr in m rTonccs 35 {Mating sad febliiMag 37 Pulp, Pnpor and Paperboard 38 Rdfrer 39 Mattrid sad Agricaltvd Equlprant Rvoaa C^erstiear 40 Agricaltarsi Hcddany and bplt> wets 41 QnurtnK&ittDjNhcUdMvjr v,. 42 Electrical Equipawat 43 Bq^aas and IbrUasB 44 Qaml Oaywrpta 45 General. Xndastrisl Etpipasat 45 Metalnocking Enaiparat 47 Knit* KeeUaery 48 Mater Wiclei 49 RdLlxosd Rpapraat 50 fertile, Leather od Specialty Equip- neat Btreaa Operations SI Aircraft S2 gqoipBnt 53 Cbasoner Durable Goods 54 Electronics 55 Leather sad Leather Product* 56 Hdticn Picture rad Photographic Products 57 Ordnance ead Shipbuilding 58 Scientific rad Technical Equip- 59 Service Eqnifsseat 60 . Textiles 61 Vater Resources 62 Policy sad Program Coordination 63 Field Service Activities (V) . .-t . i *' | ! \ 5 N \ r- ' '-r >- } | CRMC-M&S-003326 S o MEMOMHOTM January 31, 1953 TO: Mr. George W. Auxier Executive Secretary, SPA FROM: Barry B. Sharps, Deputy Director Miscellaneous Metals and Minerals Division, KPA SUBJECT: History of Miscellaneous Metals and Minerals Division In accordance with your memorandum of July 21, 1952, we have prepared a history of this Division covering th* principal activities from its inception through the first part of 1953* It describes our principal assignments and the problems Involved in administering our responsibilities during that period. Tbs history was written by John B. Steinhsnar with the assistance of many of the specialists end other members of this Division. v \ CRMC-M&S-003327 Table of Contents Page I. Organization and Functions . ............................. 1 Background . ........................................................ . . Assignment of Materials and Products to tie Division' Staffing Problems . . . .......... Development of Controls ........... T'3tablisbment Of Coianitteea .......... The Controlled Materials Plan ......... Establishment of Branches and Sections . ... . . 1 2 3 3 *t 5 b H. Asbestos and Fibrous Glass ........... 7 Cfarysotile Asbestos Action Taken . . . Becoonsndatlons . . Amosite Asbestos . Crocidolite Asbestos Fibrous Glass . . 7 8 10 10 11 11 EEC. Beryllium . . .................................. . . . > Description .......... * / .f 'Uses * .............. Conclusion. . . . . . . 17. Carbon and Artificial Graphite Products ... Carbon Electrodes . . . . . . . . . Graphite Electrodes . . . . . . Special Molded Graphite products . . . Position of Producing Industry . . . . Formation of an Industry Advisory Committee Allocation Export ...... .v .... . Graphite Requirements by End-Usa .... Expansion Goals . ......... Expansion of Production Facilities ... Other Carbon and Graphite Products . . * V. Cryolite ............................................. ..... Occurrence and Uses ........ Shortage and Subsidy ........ Early Controls on Cryolite ...... Order M-99 ... r ...... . Amendment 1 to Order M-99 ...... Experiences with Order M-99 ...... I "V V r i 1 ~o Table of Contents (continued) Page Order M-99 as Amended September lfl, 1952 . ... . General Problems of Supply . . ........ Conclusions and R&cammnd&tiom . ....... 28 29 30 71. Fluorspar ................ 33 Occurrence and uses ............ Apparent Shortage ............. Directive Assistance ............ Diversion from Stockpile ............................................. ..... Development of Control Orders . . . . . * Conclusions and Recommendations . . . *' . . History of Price Actions .......... 33 33 33 3* 36 36 37 YU. Glass and Ceramic Products ........... 39 Glass .. ..... ... ... .... Pottery ................................................... Controlled Materials . . 319 bo k2 VIH. industrial Diamonds.................................. .. . . . . 45 Descrlptlon and Dse * . . . . . . . . . i Supply . . . . . . . . , . . . . . Development of Inventory and Requirements Data . . . Monthly Reporting Program * . . . . . . . . . Modification by the Cartel of Certain Price and Distribution Policies ... ... ..... Informal Distribution .................................. ..... Industrial Diamonds industry Advisory CaasKtttes . . . Results of the Informal Distribution Program and Industry Trends............................................. >5 45 46 48 49 50 50 52 IX. Mica Description ............. . . Activities ............................................. ..... . 57 57 58 X. natural Graphite 65 Madagascar Crucible Grade Flake Graphite ..... Ceylon Amorphous Graphite ..... ..... Other Graphites ............. Crucible Industry ............. 65 68 70 71 XI. Platinum 73 o 1! , *if* i -\ \ ' i CRMC-M&S-003329 Table of ContenfcB (continued) Page XII. Bare Earths . ;....................... . ...............................61 Demiription of tie Material ......... .81 Location'of Besources . . . . . . .. . . * 81 Usee . ....... ....... 81 Bscent Develogoahts 82 Conclusion ... ... ......... 84 nn. Butue . . . ............................................................. 85 Description . . . . . * Season for Shortage . Activities and Official Actions ,. . . . . .85 . . . ... . 85 ... . . . * * 86 O tA V\ O Vs -1- r-N, i- mmm Background The Miscellaneous Metals and Minerals Division was included in the plans for the National Production Authority when that agency was established. Officially, however, its operations did not begin until its budget was established on July 11, 1951. Mr. F. H. Hayes was appointed as the first director of the Copper Division and was also responsible for the assignments that were considered as the Miscellaneous Metals and Miner als Division. He continued in this capacity until April 6, 1951 when Mr. Harry B. Sharpe was appointed as acting director of the new Miscella neous Metals and Minerals Division. Mr. Sharpe was well qualified for this position, having beta assistant to the director of the Miscellaneous Minerals Division of the War Production Board and having governmental responsibility for these assignments during most of the interim period. He became Deputy Director on October 4, 1951, when Mr. William A. White,Sr. was appointed to the position of Director0 Mr. White had had exceptionally broad experience in industry including the production and processing of minerals, as well as a broad knowledge of their occurrence and uses. , During World War I he was associated with the War Trade and War Industries Board, especially in compiling the Tungsten Report. From 1943 to 1949 he was Administrative Director of Union Mines Development, Union Carbide and Carbon Corporation, operating a secret Government contract with the Man hattan Project (now the. Atomic Energy Commission) evaluating world, resources of a strategic metal. He continued as director until October 1, 1952, when the assignments of the Tin, Lead, and Zinc Division were consol idated with ours and Mr. Erwin Vogelsang became director of the combined division. Mr. Vogelsang was particularly well qualified for this assign ment, being familiar with the operations of both government and industry. During World War II he was Director of the Tin, Lead and Zinc Division of the War Production Board and has continued to have governmental responsi bility for those assignments. Prior to World War II he was active in various phases of the non-ferrous metals and minerals industries. This Division is responsible for more than 100 active assign ments, which includes practically all the metals and minerals except those assigned to the other three metals divisions and in turn they are covered in other parts of the history of NPA. The assignments and respon sibilities of this Division are similar to those of the former Miscellane ous Minerals Division of the War Production Board. The latter agency was succeeded by the Civilian Production Administration on November 2, 1945, and, at that time, our present assignments were placed in the hands of Mr. F. H. Hayes as Director of the Minerals Division. Under his able guidance the problems diminished and the responsibility for the asrignments passed through the Office of Liquidation and the Office of Materials Distribution into the Office of Industry and Commerce in the Department of Commerce. The problems that developed after World War II and prior to the Korean conflict were comparatively minor and Mr. Hayes was able to handle 5s*. -\o I V ' M them with a skeleton force and with the benefit of skilled advice from specialists who were maintained on a consultant basis. Assignment of Materials and Products to the Division Officials of the Division worked closely with the Division of Product Assignments in determining our assignments and responsibilities. It is important that all minerals, no matter how seemingly unimportant they may be, should be definitely assigned to a particular division and the limits of the responsibilities clearly defined. Some 300 mineral products were assigned here with the expectation that only a few would become sufficiently critical to justify careful study or to need def inite control. The fact that many of these metals and minerals are of foreign origin imposes an additional problem that becomes particularly serious in times of emergency. The assignments were confined to mater ials wherever it was practical to do so. In some cases, it was not desirable or satisfactory to divide the responsibility between the raw materials the end products, with the result that some manufactured products' were also assigned to this Division. Such assignments include some ceramic and glass products, asbestos products, fiber glass, and artificial graphite and carbon products. An Inter-agency question developed as to the area of respon sibility, for the production of minerals. Officials of this Division met with officials of the Department of the Interior and agreed that Defense Minerals Administration in the Department of Interior should be responsible for the production of minerals, and that the responsi bility should generally carry through the first stage of processing. This resulted in the issuance by National Production Authority of Delegation 5, which conferred to Defense Minerals Administration the necpssary authority to develop a plan for the expansion of mineral production, and defined the limit of their authority in processing the ores. An important factor in making this decision was that the manufac turers of underground mining machinery veref in many cases , the makers of the surface equipment used in the early stage of processing. In many cases, "surface equipment" could not be generally defined as distinct from "underground equipment" and by combining the assignments in one agency, the manufacturers could present their problems and obtain assistance more readily. The following chapters represent the story of many critical and strategic metals and minerals and the part they have played in building up our defense and the actual implements of war. New uses have been developed largely through the urgency of our defense effort and many of our assignments have moved from a Relatively obscure place in the industrial realm to the critical list of most needed items. The materials, almost without exception, are little known to most people but they are basic industrial materials, upon which depend many of the end products which are so familiar to the general public. n O S' MH*l H IT * *fi-l* H* itHsr' tJ HOrf* ow H* %. ow I US P*oHi s 'OB ft H* H* IS o af HH-i \. " cof n'S3 O c. o & *) C* : V' : 1 o I CRMC-M&S-003332 >i --3-- Staffing Problems The problems confronting the Division continued to count through 1951 and it became extremely important that competent help be obtained as rapidly as possible. Because most of the assignments are so highly special ized that few people are familiar with the general or detailed problems encountered in handling them, it was a continuous problem until long after the other divisions were fully staffed. By the end of 1951 approximately 50 people were ployed in the Division and were becoming acquainted with the various problems that had developed, but the services of specialists in sons fields were still lacking. The better supply of most metals during 1952 was reflected to seme extent in the assignments of this Division. Shortages in the supply of metals assigned to the Tin, Lead and Zinc Division had almost entirely disappeared and for a more efficient opera tion of the two divisions they were combined on October 1, 1952. As the problems became lighter it was apparent that some of the persoanol was no longer needed and substantial reductions were made during late 1952 and early 1953. The lack of specialists, however, was severely felt during the entire period. Ift Development of Controls . Most of the assignments in this Division represent industries lSi' consisting of, or dominated by, one or a very few companies. It has been desirable* therefore, to discuss the individual problems of each industry and give such informal assistance as was deemed necessary without the formality of actually issuing controlling orders. In other 'cases, it has beennecessary to Institute controls and the following orders have been issued: I M-54 - Platinum M-66 - Artificial Graphite and Carbon Electrodes I M-91 - Selenium M-96 - Spinning Grades of Ghrysotile Asbestos Fiber f I'r-'i'j -- Cryciive M-102 - Crushing Bort,Diamond Powder or Dust and i. unclaimed Diamond Material Particular problems necessitating the issuance of each of the above orders are discussedi in detail in following parts of this history and copies of each of these orders are attached. The lack of similarity between these orders should be noted. It is indicative of the various types of problems encountered in this Division. The orders themselves are a cross section of every type of material conservation order that has been issued during this emergency. Easing of material shortages caused study to be given to the lightening of (some of the restrictions imposed by these orders. / ^an Hj fc- O M. * H (t~t W 3 ft O M <<& *O* 0Hj * n C5 a t s CL CL 3^ V* -4- Establishment of Comlttees The need for advice from industry could best be net by establising Industry Advisory Committees. Careful consideration was given to the membership of these coimdttees and the advice given by then vas valuable in planning actions and controls over the various industries they represented. Through this medium the industries were also kept Informed of policies, regulations and actions of the National Production Authority, with regard to matters relating to their particular field. Pending actions were discussed and their suggestions were solicited. Advice was solicited from the members concerning methods of increasing stringent supplies and controlling most effectively the distribution of most materials. The following Advisory Committees were established: Artificial Graphite Producers Asbestos Fibre & Textile Manufacturers Automatic Machine Made Glass Tumbler, Table, Kitchen and Cocking Ware Built-Up Mica Manufacturers Carbon Brush Manufacturers Condenser Mfrs. & End-Use Raw Mica Fabricators Custom Raw Mica Fabricators Frit Manufacturers Graphite Crucible Manufacturers Handmade Stem, Table and Art Glassware Industrial Diamonds ;; ..^mniterandiMallite' v" Mica Importers . Natural Graphite Iinporters-Processors ' Platinum Selenium Producers Semi-Vitreous Dinnervare Steatite Electrical Porcelain Technical, Scientific, Illuminating aid Industrial Glassware Vitrified Chinavare The recommendations of these committees were very important in developing controls of all types and in many cases, we were able to avoid formal control actions through the cooperation of the committees or their individual members. The activities, objectives and accomplishments of these committees are discussed at length in the individual commodity reports which comprise ensuing parts of this history. To insure a complete understanding by other government agencies of proposed controls and other pending actions, a Division Requirements Committee was established in June 1951. It has not been necessary to call a meeting of the entire committee but all interested members have been regularly called together for meetings on Cryolite and on Selenium. Details concerning these meetings are discussed in appropriate parts of this history. O ! O h% >*** , v \ ^o\/rr-M&S-003334 -5- In addition to these committees, personal contacts were main tained with most of the other government agencies. Harmonious relations were maintained;at all times for the mutual exchange of data. The advice obtained from these specified sources has been valuable and care should be exercised to continue the usefulness of their services. aa 8g ! The Controlled-Materials Plan The diversified assignments in this Division include twelve items classed as "B" products under the Controlled Materials Plan. Approximately 100 original applications for controlled materials were received. After carefully screening these applications we have alloted about 3500 tons of carbon steel, 75 tons of alloy steel, 175,000 pounds of stainless steel, 700,000 pounds of Brass Mill copper, 230,000 pounds of Wire Mill copper, 1,500,000 pounds of Foundry copper and 150,000 pounds of Aluminum to them per quarter. In each code the amount of controlled materials used was small when compared with the other materials needed, or when compared with the value of the finished products. The Defense Production Administration, through its Require ments Committee, recognized that fact and supplied us with the necessary materials to meet our manufacturing needs. Questions arose concerning the "B" product classification of some items, hut, in each case, the 7 -o benefit of the doubt was given in favor of the manufacturer and the I applications were processed in regular manner. In no case was a manu o facturer forced to shut down or curtail his operations because of the lack of an allotment of controlled materials. The procedure allowing \\ self-certification reduced our number of original applications to 22 for the second quarter of 1953. Establishment of Branches and Sections The diversification of assignments necessitated a large number of operating sections within the Division. A total of 13 sec tions were established and In nearly every case the problems and responsibilities were entirely different and apart from those of the other sections. The sections, however, were grouped into two operating branches as shown in the accompanying chart. The transfer of the assignments of the former Tin, Dead and Zinc Division Into this Division on October 1, 1952 necessitated changes within the Division. The old operating branches and sections were terminated and one new operating branch established which included three raw sections. The old sections became units within the newly created sections. Actually, the unit chiefs continued to maintain close contact with the Office of the Director. To perform necessary staff services within the Division, the Program and Requirements Branch was established with the responsibility for all programming and statistical activities within the Division, as well as to administer all (JMP, tax amortization, loans, industrial expansion and priority actions, and to perform necessary services for W the various committees. ' >/ \ r S' CRMC-M&S-003335 -7- II. ASBESTOS AND FIBROUS GLASS In netting up the Asbestos and Fibrous Glass Section, the deter mining factor for assigning these products to the sane Section was the interchangeability of these materials in the electrical and thermal insula tion fields. Among the responsibilities of this Section, whose activities covered not only the basic materials, but also the many diversified end products fabricated from these materials, were the following: Preparing reports on Loan Applications Preparing reports on Requests ur Tax Amortization Priority Assistance Directive Assistance Assembling Supply and Requirement data Rendering informal assistance to both Government agencies and industry members Even before the Section was established, a shortage of spinning grades of asbestos had already developed, brought about mainly by increased requirements of the military. This in turn was due to the accelerated naval and air force programs, as these two branches of the services are the major consumers of products fabricated from both asbestos and fibrous glass. *. Therefore, our Immediate problem was to ascertain the extent of this shortage and to take whatever dteps were necessary to bring these supply and'requirement positions into balance. Since each of the basic types of asbestos and fibrous glass presented individual pofoblems, the manner In which they were handled is shown in the discussion of the various types, which fellows. fftog.plUg-Asfeggtp?. (a) Strategic grades - Rhodesian C & G 1 and C & C 2. This is a fibrous mineral composed of silicon, magnesium, oxygen and hydrogen, formed as an alteration product in serpentine rock. Because of its low iron content, it is used almost exclusively in the manufacture of tape and roving for use in production of Navy cable and other electrical products. To a much lesser extent, it is also used in the manufacture of Navy types B and D doth, for use where high temperatures are involved. These grades of asbestos are mined in Southern Rhodesia, the sole producer being Turner-Newall, Ltd. of London, England, la addition to the Rhodesian source of supply, there is a limited tonnage of low-iron chrysotile mined in the Globe area of Arizona. Plans are now being developed by DMPA to expand the Arizona operations. (b) Canadian chrysotile (Spinning grades) Canadian chrysotile asbestos fiber has a higher iron content / than the Rhodesian fiber, and is therefore unsuited for use in Navy cable and other high grade electrical insulation. The main uses of Canadian fiber are in the production of yarn, tape, and textiles, friction materials, packings gaskets, nicking, etc. The main source ' 'tsj".. \ O A c. n ; \r i I -8- of supply is la the Thatford Mines area of the Province of Quebec. Other deposits are at Asbestos, Quebec, and there are scattered deposits through out the entire provinces of Ontario and Quebec. An extensive deposit was recently discovered in British ColnsMa, and a Bill and other facilities #re now being erected, which, it is estimated, will produce from 6,000 to 10,000 tons of spinning fiber annually. Preliminary tests of this fiber indicate it to be of low iron content, and it nay prove to be of stockpile guality. In order to get an accurate picture of the inventory, supply end production patterns, we initiated a reporting fora through the Bureau of Mines, Feral, 6-1212X, entitled "Report on Asbestos Textiles and Ghrysotile Asbestos Fiber." This report was sent to all users of record, and the information gained therefrom gave us exact figures as to tha production of the industry for 1950 and the first six months of 1951, as well as the inventory position, receipts, and consumption of fiber for these periods. In order to attempt to reconcile the shortage of fiber With the increase in requirements, we took immediate steps to limit the use of strategic and spinning grades of ohrysotile asbestos to those end Uses considered most essential. To assist us in formulating this policy, we established the Asbestos Fiber and Textile Manufacturers Industry Advisory Committee, composed of the following Industry members: A. Jo Scanlon, American Asbestos Textile Corporation' Norristown, Pennsylvania John G. Sehoepf, Asten-Hill Manufacturing Company Philadelphia, Pennsylvania C. H. Carlough, Carolina Asbestos Company Davidson, North Carolina R. J. Hinkle, The Garlock Packing Company Palmyra, New Toxic - Frank >J. Vakem, Johns-l&nville Corporation New York, N. Y. Ernest Muehleck, Keasbey & Mattison Company Ambler, Pennsylvania J. A. Bettes,Jr.,Raybestos-Manhattan, Inc. Manheim, Pennsylvania Custan Valters, The Russell Mfg0 Company Middletown, Connecticut o O N U .h CRMC-M&S-003337 -9- rN George S. Fabal, Southern Asbesto* Company Charlotte, North Carolina T. C. McCluskey, Tallman-McCluskey Fabrics Company Kirkwood, 2-8.0scsuri H. E. Cryor, Union Asbestos & Rubber Ccapany . Chicago, Illinois H. E. Sunbury, United States RubberCompany _ New York, N.Y. This committee was called in July 1951,to discuss the general ,, situation. It was decided to postpone any definite action until further consideration could be given as to what steps should be taken. The committee was again called in October 1951, by which tine a proposed order Uniting the uses of strategic and spinning grades of chsysotile fiber had been set up in draft form. Further discussion with industry members and representatives of tin military resulted in the issuance, of NPA Order M-96, which became effective February 1, 1952. This ordpr hqS unquestionably been of great value in channeling the strategic and spinning grades of chrysotile asbestos fiber into the most essential end uses. In addition to limiting the use of these grades of fiber to certain end uses, the order also restricted the manufacture of a limited Guse of end products to percentages of a base period. This latter restric tion was in effect a compromise between the thinking of the military, who favored complete-elimination of these items (theatre safety curtains, gun cavers, ironing board cavers, passenger ear woven brake linings lestor than 1/4 inch thick by 2 inches wide, and oil, burner vieking) and the thinking of the industry mashers who felt that no restrictions need be placed on these items. Despite the favorable effects of Order M-96, it became apparent in the Spring of 1952 that the Navy requirements for lagging doth could not be met with the supply of fiber that was available to American industry. A third meeting of the Industry Advisory Committee was called in May 1952 for the purpose of examining the defense requirements in the light of +ha total problems of the industry, and to see what action could _ be taken to meet these requirements. One of the industry members had * developed a combination yasa, in which staple glass fiber was substituted for approximately ZQ% ofLiba. asbestos fiber content, and samples of Navy types B and D cloth had already been submitted for testing to the Naval Research station at Annapolis. At this meeting, the Navy agreed to accept this type of cloth providing it passed the tests. It was decided that the Navy requirements could be met by the acceptance of this combina tion doth. We were subsequently advised that this material had been approved by the Naval Research station, and the industry was so advised. In addition to the Asbestos Fiber and Textile Manufacturers Industry Advisory Committee, the following Industry Advisory Committees were also set ups AiJ >0 X o f fCii 3O h- W> H- ft O w H- H* O lA as ^2 v* ri i i CRMC-M&S-003338 30- 85% Magnesia Manufacturers Mechanical Packings and Gaskets Manufacturers Friction Materials Manufacturers Asbestos-Cement Producers It was not necessary bo call any of these four committees in, as there were no problems of sufficient importance to necfcssitato such action. Recommendations 1. Since present supply is inadequate for actual requirements, assistance through DMEA. and DMPA is urged where necessary to bring in new deposits and to expand present known deposits. 2. In the event of full mobilization, complete alloca tion should be established, patterned after the system of allocation used in World War II under WPB Orders M-79 and M-283. 3. Continued research on removing the iron content of Canadian fiber to permit its substitution for Rhodesian fiber in the manufacture of electrical insulation. 4o Negotiations through high levels to secure a larger alloeetion of Rhodesian chrysotlle for Government purchase'for the stockpile. Amosite Asbestos This type of asbestos, which is a ferrous magnesium silicate, is the preferred type for the manufacture of turbine blankets and other forms of Marine insulation. Its one superior property is resilience and regain of loftiness after exposure to water. In the lover grades, K-l and below, the chief use is in the production of 85% magnesia insulation. Amosite lias been in very short supply for a number of years. While the supply at the mines in the Union of South Africa has been increasing since World War II, the sole supplier. Cape Asbestos Company of Loudon, England, have been diverting their supply of fiber to their own manufacturing plants and to the world market, with a resultant decrease in shipments to this country. It has become necessary for the 85% Magnesia industry to substitute Canadian fiber, in some cases, as high as 50J6 of their ndac because of their inability to get Amosite. American industry is now using the strategic grades of Amosite only for military end use items. The Navy has an approved specification * for turbine blankets using fibrous glass Instead of Amosite, and although the cost of the glass is several times that of asbestos,it may become necessary, in the event the supply of Amosite continues to dwindle, to resort to the use of glass fibers for this purpose. o i NOTICE': I f th e f i l m image below ig *le a s c le a r than There are no controls on Amosite at present, but it is now proposed to amend NPA Order M-96 to restrict the use of the strategic grades for the production of military end use items only. This will, in effect, make mandatory what the industry is already doing, but such action is felt necessary in view of the short supply of Amosite Fiber. Crocidolite Asbestos Crocidolite, or blue asbestos, is a silicate of iron and sodium. The outstanding advantage of this type of fiber is its high resistance to acids and alkalies, which makes it superior for certain types of packing and gasketing material. It is also used extensively as a filter medium. There are two sources of supply - The Union of South Africa, from which we receive all of our supply for industrial and commercial use; and Bolivia, from which we receive the stockpile grade. The Bolivian fiber is being purchased only for the stockpile and for use by the Army Chemical Corps for production of gas mask filters. The South African crocidolite has presented no problem to date, as the supply has been adequate. The production of Bolivian crocidolite has not been sufficient to meet all requirements, and discussions have been held-idth other agencies to promote expansion of present Bining facilities as veil as exploration of new resources. Action is, at present, delayed on this matter because of the internal situation in o Bolivia. There have been no controls placed on crocidolite asbestos to date, nor are any deemed necessary, due to the fact that the United States Government is the sole purchaser of the strategic Bolivian fiber, and there has been no shortage of the African fiber. ii aagsBg-SjL&gg Fibrous glass, for which military uses were established during World War II, was In short supply at the outset of the Korean conflict. These uses are - (l) as a substitute for Kapok fiber in the manufacture of life belts, (2) electrical insulation for Navy and other electric cable, (3) thermal insulation for aircraft, (4) as an extender for asbestos fiber in the production of Navy lagging cloth, (5) as a substi tute for amosite fiber In the production of Navy felt. The Fibrous Glass Industry, recognizing the increasing requirements for their products, had already started expanding, and it became the duty and responsibility of this Section to assist the members of this Industry through priorities assistance, and consideration of the various applica tions for tax amortization and loan applications which were filed by members of this Industry. In order to bring this expansion up to require ments, an expansion goal was finally established by DPA for the Fibrous Glass Industry covering the two main products, continuous filament textile fiber and superfine fiber. I CRMC NOTICE: t f the film jjsage -12- i setting up this expansion goal, requirements were promised cm the total military and essential civilian needs through a period embracing total mobilisation. Because of the fact that the basic fiber producers do not fabricate mazy of the end use products, mary of the requirements included in essential civilian figures are in reality military requirements. The information required to establish the expansion goal figures was secured (l) from the anticipated requirements of the military as established by the Monitions Board and (2) from actual sales figures famished to this Section by the leading members of the Industry. The total requirements, as set forth in Expansion Goal No.ll6, are #6,400,000 pounds of continuous filament and 18,300,000 pounds of superfine annually. Due to the expansion of facilities already undezv taken by industry members, plus new facilities which baonei^pome into the picture as a result of Government assistance, both of these goals have been met. Ho controls were placed on fibrous glass, although It was necessary several times in 1951 to place directives on industry nwa&erstosecure certaln military requirements within a specified time. It is now felt that this industry will be able to handle all .fores^oable requirements .without further expansion. ' ' IK*!*1* - ,, , ^ 4 Bay materials used in the production of fibrous glass are all of domestic origin, and therefore have presented no;problems. 1i \ j >r. CRMC-M&S-003341