Document e7m833MKajMpb0wxZmBYM4nZm

r-*r* r mif^ i ` iarwjtr4,-..>. - LIA16289 Wai*i?Wi riv 1 -- -------- LEAD INDUSTRIES ASSOCIATION UO LDUK3TOM tVOM NSW TOW IT, N. V. OOViyjOfSfT COKTRCLS 0 LEAD JJO ALLIED MEflLS* By Ervin Vbgolsaag nn( Load and Zinc Division National Promotion Authority It rj a ploasure to accspt tho invitation of your Soaretory to talk Informally to tho ncmbers of tho Load InAstrlos .'-ssociatioc clout tho activities cf tho national Production Aut}rlty, I wax primarily pleased bocanse of tho opportunity it affords no to bo among old friends again* But being ablo to got ay frcr* tfatshiogbon. if only for e day, was nlso an :ntractive cepoct of tho lnntalioo, ,x a maiior of fact, I think it night bo a good idea if all *Pi officials who aro rospcnaiole for tumin. out orders and dimctlroo mare roqcdrod to spund c fairly aubsta-r.tlal part of their tino ith tho people whose bnrimse liras they ora attempting to regainto. 'hon your Socratary invited no to speak to tho Association on IPA controls, I suppose bo vas under the inpressioa that for anyone with ton ysara srperienoo la waibvtgton this would bo an airy topic to handle. It is tito that my expertonoe ia Washington datoe back to 19L0 and tho days of the Advisory C-wgrl sgtoo to tha Coir-di of national Defense, Not only did I survive the stiooosalvj roorgtnixstieee of that organisation (Offloo of Production Man-agueont, Supply Priorities end AA.'1 coitions Board* ',& Production Board) but 1 lived through the throes of r* cont o t s ion with tin CiTillan Production Adal ni strctlon. Moreover, I hove been with the Bntion.1 Production Authority since its inception* ' 1th this bvkground your Secretory had every right to boilers thnt ha hod lined up scceae with more that n boring acquaintance with control orders and regulations* In organizing ithoj.jits for tho talk, boreror* I find ttr t tho topic is net as easy to handle as ono alaht lncgine. It any rate, as a representative of the National Production .ntberity I an glad to have an opportunity to sey a few 'erds on tho objoctiro* and purposes of NPA as I aa euro that many of you aw bc-.ilderod by tho flood of orders, directives end regulations that ere currently flowing out of t'ashlngton* Most of you, Z aa sure, aro reasonably familiar vlth the duties delegated to the Kationi Production .'authority by the Defoneo Production 1st of 1950, but it might bo helpful to review those responsibilities briefly* tbs Ainlstrotar Is roquirod to tries the neeossnry stops to (1) lnsuro that ra -r.-a.ant requirements for materials and facilities are mat on schedule) (21 Inrare that, after defense needs aro mot, tha road sing supply of critical mitorlals end products is distributed equitably for ncr-do*jnso usee) and (i) dovolop end prusoto aonsures for the expansion of product!vo capacity and of Presented at the 23rd Annual lAxjtirg, Lead Industries Association* ifcy 17-38, U5i* Hew lark, R* X. ! ; j j j j j i | j ; j j j IfVMW.l mm WPWIP rr r i m m?^.<|R*v.'4.rT*SEj V ,. , LIA16290 :. m -j... .:.... lAUSwatelid^ life s | 1 Increasing production and Supply of Materials and facilities nsooasary to th* 0 national defan** and far aiintalnlng a strong acgomqr. In aacy respects th# Job that hsj bean assigned to KPA 1* wch aer# dlfflw colt than that which ni undertaken fcgr th* Advisory Cxnlaslon to th* Council of Rational latent* In the iratr of 1?_0. Thar* la a decisive difference between the United objectives of our present dofenso progra and all-out war* vrlth this distinction In rind I think It la fair to as/ that the prlcury ccncarn of ths top ohlliaatlan authorities over the past several sooths has been to seat the military requirement* fully and on acheduls without disturbing the drillon ecccccy. It 1 Is only recently that It haj bean recognized that this was asking of <*zr econcey | considerably were than It la capable of yielding. Consequently, I sruat reluctantly ] roport to you that the eontrols ao far placed on industry hare been little acre thin curtain-raiser*. In the Booths to ccoe, notarial scarcities will beuoas j Increasingly amt* aid, a* a result, our responsibility fer controlVine -ha distribution ard use of the scare* materials eamot b* avoided. In the Tin, lead and Zinc Edrialon our approach to controls has been guided by the over-all policy of VPt. V* do net llta controls any better than ycu do and reatrlrtire orders hare been Issued only after the need has been demonstrated convincingly. The action we hare taken with respect to laad is fairly typical. With land In good supply throughout 1950, the Id.rialon resisted the efforts that were sad* to place lead under control in tho 'first flurry cf the mobilisation pregrm* 0 Indeed, It was not until after the beginning of the current year whoa it beoaaa apparent that the lead supply for 1951 would fall sharply below tho lerel of th* previous year because of decreased Import* that action was token. Against reculrw- cots of not leas than 1,210,000 tons for 1951, there appeared to be a distinct po*sitdllty that the supply would not exceed 1,050,000 tens, approximately 23 percent lese than in 1950* < Our original lead order (1^38) prcrldad for the dldest fora of controlS| Uniting consumers' and dealers' inventories to s 60-day supply. It also oalled for th* su'jdasicn of monthly reports of stocks and conrumptlon which will enabla th* Division to ksep In clcec touch with current develcpoenta In th* lrdustry. in amendment to the original lead order was Issued on April 3rd which United consumer* of lead to 100 percent of their ret* of us* (hiring th* first aix Bont&s of 1950, a period when ccnsunptlcn was considerably loner than th* rata prevailing In th* first quarter of 1951. This amendment waa found neoesaary not only beeaise Isporta of lead were reduced sharply after th* first of ths year due to the reimpoeltion of th* lsport Aity and tho consequent greater disparity between the doaartl* and foreign price of lead tut also In order to curb the use of lead as s sub* stltut* far other materials In critically short supply. Th* asmraiment also prow vllad that refiners and dealers were required to accept rated orders fer up to 20 pereert of their available supply and reduoed the permitted inventories from 60 to JO days supply, i further eeondoent to th* lead order should be issued within the next few days vhlch will provide fer a contingency reaarve of 5 per. 1 . cent of each refiners monthly production that will be available to ths Tin, lead and Zinc Division for nesting emergency demand*. Concurrent with the lssuanoe of ths lead order a co^anlcn order was lssnsd so antis*any (U-39). Ilk* the leed order, the antimony order placed s 60-day Unit on inventories and provided for th* submission of nonthly reports la order for th* Division to ksep abreast with current development*. Despit* our rath**1 precarious supply position, the supply of antimony currently spears to be reasonably well articulated with demand and no further action is contemplated ^gliSiwwssMSS!'ie^j!i^^is^^mw.iw^;iiyBis'jiii' . h . j ' r.was wi i J i . j i|MpwiwBPt.iJnwn^.inihub n^|iipi-ii wm nu iuw<iP-qpip^wgip|iPWP^; LIA16291 weiewu ugp wstvwvieve .u v u w >n .M .s.w ii.o n *- at present. TTlth view to Insuring a continuing larger supply of antlswwy, t however, tha Division 1* supporting a policy presiding for long-term Import contract* with cor principal foreign euppllere. if i To date the Boat drastic Itr-lUtlon order that haa baen Issued ty the Tin, f Load aad Zinc Division la M-10 which control* tdswth. Largely aa a r(tilt of tha retooling of the aircraft Industry, shipments against rated orders wars accounting for apprcodnately three-fourths of tha rvallablfl supply aa early M Hcnveaber 1950 Consequently, eonsuaere without rated order* war* abla to obtaia only a snail fraction of their requireacnt*. Order V-Jj 9 provide* that hisouth eetal and alleys can ha usod only fer specified purposes, The order also pro- rldai that fcdsanth produoer* ara required to accept rated ordars for up to $0 percent of their aohedulad aonthly production and establishes a contingency reeervs of 30 paroarrt of output of each produoer that oaa ha drawn open only with tha specific authority of SPA. Tha order tppaara to have corraotad tha E f i r> i i situation that developed In tha latter part of last year and, uniaaa allItaly requirements are revlaed upward, no further action la anticipated. ii As a raault of tha dafanaa effort, tin has again become o m of tha noat critical of tha strateoio Betel*. In order to sake tin avallabia for dafanaa needs, we leaned our first tin-c octroi order (B-8) on Kovecber 13, 1950. Under this order, levantcade* ware United to a 60-day eupply and all is^ortaot conauaart of tin were required to report their stocks and eonsiaptioo. A Booth later the order was Bearded vSiich United all consuatr* to 100 percent of their average ' Bonthly ccnaunptloa In the flret half of 1950 In January 1951 and to 80 percent 0 In tha two succeeding sooths. In addition, KPl orders have bean Issued that rws trlct tha use of tin to esaaotlal purposes and prohibit Its use In such lteaa as jewelry, cmaasots, advertising display* and other noo-assentlal items. Effective Kay 1, nereover, all d mastic osar* of pig tin were placad under allocation central and tha Racooatructiau Flnsnoa corporation was designated aa tha sola i*pcrtere of tine I believe that suss up our setlvltlas as far as Isad and allied aetals are concerned. I shall be glad to answer any questions concerning tha order* that ws have issued If there are ary. cf course, I cannot predict tha future, but I can assure you that In ary further controls that are lnposod we shall closely adhere to the directive of the Defense Production Act ty consulting with Industry rp> raaentatlves ^ienever feasible. X also want to take this opportunity to thank you for tha generous cooperation you have given the Tin* lead aad Zinc Division during tha trying period the past several nontha. pW H IW M fm * 5 f ) % t. * .1 lhlIH!WJIWIUIWg)U