Document k62okMOKa1L3q1adJYmRpLk9V

LIA21609 i < ' Memorandum of Meeting, headquarters of Office of Price Administration Washington, D.C, May 10, 19U6 - 2:00 P.M. From Lead Industries Association: 0. Hense W.F. liurdoek A.R. Knight L.Halpern K. Nibecker F.O. Case C.A. Qeatty S.B. Coolidge, Jr, W.H, Street Eagle-Picher Company Eagle-Picher Company Euston Lead Company Federated Metals Division of American Smelting it Refining Co, Imperial Type Metal Company International Smelting it Refining Co# National Lead Co, Sherwin-Williams Co, United American Metals Carp. F.E. Woroser, Secretary-Treasurer From Office of Price Administration; Karl L, Andersen George W. Straasor Milton H. Heyrasn Warren M. Huff Office of Deputy Administration Chemicals Division Building Supply Division Price Executive, Metals Price Branch Mr. Anderson presided. Mr. Anderson in opening the meeting said this was a purely informal meeting on some industry problems which would be brought about if there were an uuward change in the ceiling orice of pig lead. Ke said he could well understand that some increases might completely wipe out the narrow profit margin of the manufacturers. He felt it was necessary for the 0?A to become familiar with the cost and profit position and viewpoints of the manufacturers at this time. He said that another point was the importance of simultaneous action on ceilings for-manufactured lead products should the ceiling price of pig lead be advanced by the OFA, to avoid any period of confusion among the manufacturers. fame of the manufacturers present Indicated that in so far as they personal! were concerned, they could not absorb any Increase In the price of pig lead. Mr. Anderson said it would be necessary for the OPA to obtain data to sub stantiate the position of the manufacturers, with which he synpatliized. He won dered what range of lead products it would be necessary to cover. It was ex plained to him that the Committee represented a cross section of manufacturers of metallic lead products such as lead pipe, sheet, solder, bearing metals, type' metals and other lead-tin alloys, also the manufacturers of lead pigments *uch as white leAd, rod lead, litharge, orange mineral, sublimed blue lead and tho lead chromates. , i( l t~lA?l6lo -2 - Ur. Geatty asked whether it would be possible for the OPA to permit an Increase in OPA ceilings for manufactured products pending a final determination of the proper ceilings. He pointed out that the manufacturers would be operating under chaotic conditions unless the OPA made some practical ruling on the subject at the time the price of pig lead advanced. Mr. Anderson said he hoped to have the necessary background studies on i established ceilings for all manufactured lead products so that upward c`sanges would appear simultaneously with any Increase in the ceiling price of pig lead. Mr. Coolidge inquired as to whether t ere would be any prejudice to asking for an increase in the price of white lead as some cf the producers were desirous of petitioning for an increase badly needed today by the white lead industry because it was operating on such a greatly curtailed volume of production, a volume es tablished by the rulings of the CPA. Ur. Anderson recommended concentration on the problem of ceiling price ad justments of manufactured products necessitated by any ceiling adjustment in the price of pig load and divorcing other appeals from that situation. Ur. Case asked if there was any change in the OPA policy on the overall profit position cf companies making a multiple line ex' products requiring seme cost absorption in unprofitable lines. # Ur. Anderson said that the general OPA standard would apply. He indicated that the OPA policy was to return to industry not less ip profits than it earned n a base period but that each line should return at least its out-of-pocket cost. Ur. Coolidge said they were not permitted currently to Include sales ex penses in cost determinations. It developed later that the OPA had recently adapted an amendment to its regulations which will permit selling expenses to be included in cost determination; leasing it to the discretion of the OPA. Ur. Halpern urged prompt attention to developing some method of passing on any prospective increase in ceiling price of pig lead, which is a matter of life and death to the industry. % Ur." Anderson indicated that questionnaires would be distributed to se- ' lected inoustry companies in order to get a representative sample of their costs for a base period and probably the last quarter of 19ii5 and indicated that Use in dustry would be divided into two groups, (1) metallic products manufacturers and (2) pigment manufacturers. He thought that data from three or four independent ceepaniec and one or two integrated companies would sufficient and said * ques tionnaire would be prepared at once for circulation : a selected group. The OPA representatives indicuted that they were ail seriously ahorthar.ded. The in dustry volunteered to provide the necessary assistance if requested. m i jMiyi n'l.r..""I] , > ;i j . >!|(|.]einiiujTa;iy.aM^;^a^riteji4iaw' .....i- ...iff--~ se t*ww"r?*giBfgj^)ftari*PWg*?-wg.hW!:sajgiu..'-agjfcii-rg .^ny LIA21611 '4 Ur. Anderson indicated that if long studies had to be made acne tem porary price relief action would be given. Ur. Case inquired as to the position of the OPA if losses were prevalent in a base year. Ur. Anderson said that the less year would be considered as *0" In aver aging a base period. Ur. Anderson Indicated that they would start immediately on procuring the necessary background cost information and urged each repre sentative present to get in touch with his OPA representative that afternoon, if possible, to begin work. Uoeting adjourned at 330 P.U. ) / r< ;; 6' !