Document baggGxJ4O95xd8mX3bkpdxpLy

December 26, 1940 Mr. P. E. Sprague WAR DEPARTMENT OFFICE OF QUARTERMASTER GENERAL WASHINGTON, D.G. - INFORMATION IN VITATION FOR BID NO. 146, dated Nov. 29, 1940 You will note from copies of other letters I have written that apparently the Carbonate of Lead industry is not going to enjoy any business under this contract. Since to me, at least, this is a very important matter, the outcome of which is exceedingly disappoint ing, I think It would be well to review all the facts pertaining to this large amount of business, because I think that the White Lead industry needs to do something to protect Its interest. Briefly this business involves the purchase on the part of the War Department of paint to be used for painting wooden buildings in Army cantonments being constructed at various camps in the United States. The Army Quartermaster Corp has divided the United States up into ten districts or regions for this purpose. The construction of these cantonments is being done by private contractors on the basis of competitive bidding, which, I believe, in the beginning must have included not only the construction work but the actual painting, because the original plan was that the private contractors would pur chase all the paint materials required. -f It appears that originally the general contractors, who have sublet the painting work to painting contractors, were instructed from Washington that they could hot only buy the painting materials, but that they were to prepare a paint according to certain definite spec ifications, and that t%i# paint was. to be mixed on the Job. ' Firadamsntaliy, the paint sms to be made frees White Lead Carbonate^wi^small^proportions of sine amd^imert^te bemadded on the on the lead in Si SquirS^^sequeht^to tWUr^*^E^Htiactors were informed by the War Department Quartermaster Corp that the plan was to be changed in respect to paint purchases, and instead of the contractors themselves making the purchase of paint, this paint was all to be purchased In Washington under the above invitation. The country was then divided into ten districts, and the provision was made that awards would only be made to one company in each district, and, fttr^hermor#0th|lt a successful contractor in one district could not qualify for a contract in another district. At the same time, siMMIffiditioipr were changed to read that in three out of the ten districts the paint mould be purchased under Federal Paint Specification TT-P-158, which designates that Wry Carbonate of" Lead must be used for the White Lead portion of the total pigment*. In the other seven districts, the paint was to be purchased ul|r< Federal Paint Specification TT-P-86A, which permits the use of Lied in any form, either as CMibOnaiO-of Lead, Sulphate of Lead' or Leaded Zlne. In such a specification the paint manufacturer uses the cheapest source of Lead, which at the present time Is the high lead content Leaded Zlne. NL 000040396 s . /. n 1 V 2 ' Within the past few days, awards have been made to ten paint manufacturing concerns and the specifications have been further modified to mice it possible for a contractor to furnish the paint for all ten districts under the specification TT-P-36A. This means that apparently no Carbonate of Lead in any form will be required by any of the contractors furnishing this paint. Sow, of course, without any firsthand knowledge on my part, it is impossible to say what, if any, influences were brought to bear in the beginning to change this purchase of White Lead in Oil over to ready mixed paint* The practical effect of this, of course, has been to distribute the business among them paint manufacturing concerns located in various parts of the United States with a bread geographical distribution, whereas if White Lead in Oil had been purchased of course there would have been a smaller number of contractors, representing the various units in the White Lead manufacturing industry. When it was proposed to manufacture the paint for three dis tricts under this. specification TT-P-156, we estimated that about 1,100 tons of Cry Carbonate of Lead would be required* How that all the Lead will be furnished as Leaded Zinc, undoubtedly the total tonnage of Leaded Zinc will be several times this amount. As I see this picture now, substantially all, if not all, of this Leaded Zinc business will go to one manufacturer, the Eagle Pleher Lead Comply, because the high lead content Leaded Zinc (either 70 or Leaded} will/be purchased, and only this one company is in a position to furnish such a pigment* Information coming to me from various sources lead*;few to believe that the Bagle-Plcher Sales Co. have extended to the paint industry the same type of protection on the purchase of 70 dr-'.75^Leadad Zinc which they recently offered to extend on Dry Carbonate 'Of,ad*. Which was entirely out of proportion to any protection Whldlt the point manufacturer was entitled to under his oonmrdet* ' *-y ,> We have a. situation then Whereby ten paint manufacturers are enjoying a substantial amount of buainess Which originally would have gone to about five White Lead manufacturers, and one pigaent manufacturer will apparently enjo^ all the pigment business, with exception of the small amount of inert which 1 understand it is permissible to incor porate ian, this 70-80-10 ready mixed paint under the specification......................................................................... .. ;*:T Lead are se: makes the i th*n under at Which Leaded Zinc and Sulphate of tine relative to Carbonate of Lead, mere economical for this formulation s. a White Lead industry needs to change from a ve attitude in connection with matters ef this character to a tent offensive position in placing the merits of Carbonate of before the authorities Who control the specifications governing purchase of these materials for War Department purposes* A* fU Knight Nl 000040397