Document kDGmYVL1Dp4E9gvYe6wR4qD2q

DEPOSITION EXHII NO.n 3/gQ MBAMEU.V EVANS REPOCTNC. SERVICE tic.-.al I Statler Hotel m: in;: is 7 s'HO'JTIVS COMMITTEE MEETING Paint, Varnish and lacquer Association, Inc- Vashir.gton, D.C. April l6, 19*45 A regular neeting of the Ebrscutive Committee of the National Paint, 7arnish and L quor Association convened at 10:00 A.M., Tuesday, April l6, 1346, in the Statler Hotel, V'ashir.gton, D. C-, ith the following in attendance'- f r a i-t c 3C-."S t h y .-i .c v / j . c a t c pp e l l M. CLARE R. 0- CLARE S. A. 70Y, JR. 3. 3. GRIFFIN M. L- KAV2Y A. Z. HORN VM, H. JARDZM, JRN. V. HZIIZY J. VAS22S KINSMAN HARRY M. KUHN E. A. K3LUM HAROLD RC'.vB S. J. SHANNON f r a n k l . s v l ip ir t -ir Z?;:Z3T T. TRIC-G "VAL XRTZLS Guests ROY 3. ANDERSON R. V. BLAIR, JR. E. A. GARDNER J. F. KURFZ3S, JR. BERNHARD KAUTZ CHARLES L. RAFFI -Association Staff 53USL W. ELION GZCP.GE h . PRIEST, JR. M. q. MACDONALD G. G. SHARD ELLIOT S. PHILLIPS Absent ARTHUR V. STEUDEL W. C. STOLE Call to Order The nesting was called to order at 10J00 A.M. by the Chairnan, Nr. Thurlow J. Camp bell. Minutes of Last Meeting The Secretary stated that the ninutes of the previous meeting had been called to all cambers of the Conaittee and that the agendun for this meeting would take care of unfinished business carried over froa the last neeting. The Chairnan stated that if there were no objections* the ninutes of the last nesting would be approved without reading. There being no objections* the Chairnan stated that the cinutes of the Executive Coanitbe# neeting held January jl, 1946 aro approved. Report of President President Trigg stated that following usual procedure* he would report oa several items appearing on the agendun. Sales Figures - President Trigg stated that sales figures for the industry released yesterday - indicate February sales rose 6.l over February 19^5 and sales for ths first two nonths of the year rcso 57?> over the first two nonths of 194-5. Trade Sales increased 25.2Jt for the first two uedths and Industrial Sales decreased 18.6jt for the first two nenths. President Trigg pointed out that it is entirely possible the industry nay have manufactured fewer gallons of paint during the first two nonths of 1946 as compared with the first two nonths of 1945* but due to an ending of war business* nay have sold those fewer gallons for a larger dollar return. ' r-2- / ^-gr'.?ar. Star.da.rds Association - President Dt'icg stated that in compliance with in structions given by the Sxecutive Commit tee'', the Association has now become a member of the American Standards Association and has appointed A. B. 3ir.ghan of the Pitts burgh Plate Glass Company as our representative and it is hoped that Mr, 2. V. Pasig, T.owe Brothers Company, nay accept appointment as alternate representative. Presi dent "rigg pointed out that Secretary of Commerce Wallace had appointed a committee to study the standards situation and that this committee had reported back to the Department with the recommendation that standards where needed should he developed by industry and not by government and that following this recommendation, Secretary `allace had designated the American Standards Association as the agency with which his Department would cccperata in the development of standards. President Trigg read the following memorandum en the subject of "Grade Labeling Minimum Standards - Certification of Quality":- nDuring the war members of this industry have been so absorbed in immediate problems involving materials, containers, selective service, pricing, sur plus property, taxation and the like, that of necessity some important "trends may not have received the consideration which they deserved, and which in other times they would have received. "I wish to discuss only one of these, - the steady movement toward classi fication, standardisation, certification or grade labeling of merchandise intended for over-the-counter buyers who depend on the manufacturers and dealers for reasonably accurate guidance in the selection of consumer goods, or, lacking that guidance, turn to government for assistance. "The growth of this movement has been noted in activities of the Department of Comnerco consumer groups, private organisations, and semi-private or ganisations assisting in the development of commercial and industrial stan dards as aids to expansion of commerce, and single industries that are en deavoring to assist and protect purchasers and stimulate confidence in their particular products. "All will agree, I believe, that the public should look primarily to indus try for guidance. "Whether the tendency to look to the government can be arrested would seem to depend very largely on the attitudo of industry itself* and its ability to view the problem so far as this reasonably can be done, through the eyes of the buyers. In line with that attitude, the grocery manufacturing indus try has recently issued to housewives a 'Market Basket Quit1 intended to develop information of value in determining its labeling problems. The Society of tfe* Plastics Industry recognized the fact that the great vari ety of plaatfc materials presented a confusing picture to tho buying public; that the housewife who buys the great bulk of consumer goods is not inter ested in becoming a plastics expert, but wente to know how to select and use and care for the thing* she buys. After extended consideration the Society, with the cooperation of the Plastic Material Manufacturers Asso ciation, made a number of broad recommendations along tho lino of Informai- tive labeling. "The Tenners' Council of America has given careful consideration to the prob lem and has taken certain stops intcr.dod to protoct purchasers of leather l'igt-age, give them confidence in theso products, and promote the sale of better merchandise. NCA 0 03092 <.~sa.isT on food, industries than others, it is without doubt extending into ether fields. Our industry, I believe, cannot veil afford tc ignr.re this trend, and be unprepared to face the problem if it is presented. Its pres ent judgment, which I believe is wholly sound, is that grade labeling of paint products would be harmful to the crr.suner and manufacturer alike. Cur industry has gone far in the direction of informative labeling, not only dealing with the uses and characteristics cf its products, but giving careful directions for use and for avoiding ur.satisfactory results. I have no suggestions for any improvement in present practice, except to urge the .member3 of the industry to do their part in making the resolution of the Convention of 1S3 calling for voluntary and :iversal an: :icn cf f:rrula abaling of trade sales paints fully effective. The problems of he .ar J' ears may have halted progress in this direction. "I have, however, one recommendation bearing directly on the problem ve have been discussing. I believe that in view of the steady growth of the demand for grade labeling, minimum standards, certification of quality and the like prudence r.cw requires this traditionally forward looking industry to appoint a committee which will keep abreast of all developments in this field, con sider the problem from the standpoint of the industry and its consumer cus tomers, and from tine to tine make such reports and recommendations to the Executive Committee as it deems advisable. "There is, and doubtless will continue to be, a considerable amount of material concerning the activities of the government and industrial or consumer groups received at Association Headquarters that cannot receive all the con sideration it may deserve. The appointment of a committee for this purpose would, I believe, serve the interests of the industry, and give the member ship and this committee confidence that the movement, which in some respects carries a threat of injuxy, is under constant observation." It was noved by Mr. Horn, seconded by Mr. Shannon, that the President be authorized to appoint a special committee on "Grade Labeling - Minimum Standards and Certifi cation of Quality". Motion carried. Havy Use of Titanium - President Trigg stated that the use of titanium by the Navy had been the matter of a groat deal of discussion and that some progress has been made in the Association's effort to have the Havy reduce the amount of this critical material being used and he referred to the following letter received from Admiral E. L. Cochrane of the Bureau of Ships cf the Havy Departments "The critical;nature of the civilian supply problem in regard tc meeting the requiresijjat of the Industrial Haconversion Program for Titanium Dioxide is appreciated, and the su/yrestion that Aluminum paint be substituted for Titanium Dioxide bearing paint will be fully considered insofar as is com patible with preservation requirements of Naval vessels. It Is anticipated that the 3ix months estimate, as noted in your letter, o:F 12,000,000 pounds of Titanium Dioxide to be used by the Havy will be reduced." President Trigg stated that subsequent to the receipt of Admiral Cochrane's letter, copies have been received of orders issued by the Bureau of Ships, namely, order number 46-590 "Conservation of Paint Materials* and number 46-591 "Inside Painting, Bilges - Cmi33ion of White Paint, etc.* and he stated that he had been informally but reliably advised that instructions have teen issued to use one ccat of aluminum and one coat of haze gray instead of two coats of haze gray on lay-up ships. XCA 0 0309J- ZZ. act ion of Secretary - ?rss ident Trigg stated that at the Gctocer 19^5 msatir.g of the Executive Committee, when the preseat Secretary of the Association vas elected Executive Vice President, it was with the understanding that he would serve as Sec retary until the election of his successor. Mr. Trigg stated that Mr. T. S. Moulton, who had been the Association's Accountant for ten or twelve years, has now returned to the Association with the rank of Captain after having served three years in the United States Amy, and he recommended the election of Mr. Moulton as Secretary. It was moved by Mr. Toy, seccndei by Mr. Helun, that T. S. Moulton be elected Sec retary of the Association. Motion carried. Si-ir.ir.g of Chocks - President Trigg pointed out that the by-laws provide ir. Section 5,'Article IV, that "Disbursement shall be made by voucher signed by the Secretary, or. in his absence, by a representative, authorised by the Executive Ccur.ittoe, as coring within, the budget, and countersigned by the Treasurer", and Section 7, Article IV, provides that - "In the case of the death, illness, disability or ab sence from his office of the Treasurer, any one of the following officers of the Association is hereby authorized to countersign checks and otherwise to perform ad interim the necessary duties of the Treasurer; the President, Vice President or Chairman of the Executive Committee". Mr. Trigg stated that the Executive Conr.ittee at its meeting on April 14, 194-2, in view of the fact that Mr. Moulton, the Associa tions Accountant and who vas an alternate for the Secretary in the handling of dis bursements, wa3 entering the Armed Forces of the United States, designated M. Q. Macdonald, Attorney, as alternate to the Secretary. It was recommended by Presi dent Tri^g that now that Mr. Moulton has returned fron the service and has been elected Secretary, the Executive Committee authorize the signature of the Executive Vice President as an additional alternate to the Secretary. It was uovod by Kr. Horn, seconded by Kr. Vurtele, that the Executive Vice President bo authorized to sign checks as an additional alternate to the Secretary. Motion carried. Budget and Finance Committee - Kr. Trigg announced the appointment of Mr. J. Vr.rron Kinsman as a member of the 3udget and Finance Committee to take the placo of Mr. Franklin J. Lane, whose tern as a member of tho Executive Commit tee has expired. All other members of this Committee were reappointed. Employees Report - The President stated that a copy of the seal-annual Employees Heport is attached for information of the nenbers of the Committee. (Copy attached) 1946 Convention - President Trigg stated that reservations are piling in for the 1946 Convention to be held in the Trayaore Hotel* Atlantic City, November 6th, 7th end 8th. He stated that the "1946 Paint Show", conducted by the Federation of Paint and Varnish Production Clubs, will be held in the Claridge Hotel, November 4th, 9th and 6th, and he stated that indications point to the largest convention we have ever held. Program plans are in the making but are not sufficiently developed to announce. OPA Price Appeal - President Trigg read the following letter addressed to the Office of Price Administration in connection with an appeal for industry price relief:- "OFFICE OF PRICE ADMINISTRATION Washington 25 D. C. 1 J "Gentlemen! "In the attacht statement, we.are requesting price relief for this indus try and ve are summarizing the details covered on the attacht sheets and our request i6 as follows! NCA 0 03094 !;'v2 ?s?iCir;iiY P-zr.'zsr r:-ur iy v:z>* o? "(1) The vital importance of the products of this industry in the recon struction prcgrsa of the Kation; (2) e fact that & substantial number c: .v.nnufacturers are currently .unking less r.or.ey, after adjustments -nui before tuxes, than in the base -ceric-d; (3) The critical shortages of important rnw r.aterials and containers; (4) The indicated decrease in volume of business; (5) The increase in cost of raw ante-rials; (6) The increase in cost of labor; (7) The increased costs due to readjusting our businesses on an aggressivo peacetime basis; (6) And finally to create proper incentive to encourage maxinun effort and production; "that our industry be permitted to increase its selling prices by an amount equal to the actual increase in costs today as cellared to the costs on which the March 194-2 prices 'rare based. By ecsts we r.ean raw materials plus containers, plus labor, and plus other factory expense, including f superintendence, overhead, etc. In other words, the cost of the product, packaged, labeled and in a case, ready for shipoent, but not to include any costs after factory. "In order to cake perfectly clear what wo mean, let us use the example of a product priced in March 1942 at $2.00 per gallon, the cost of which when that price was established was $1.50 per gallon. If the cost on that pro duct under today's conditions has increased to $1.65 per gallon, then under our request we would be permitted to increase our selling price by the difference of 15^ in the cost, caking the selling price $2.15* Note we do not request an advance to include any profit on the increase in cost, or anything to cover increased expense beyond factory cost. "While the granting of this request would be a substantial relief to and an incentive for the individual canufacturers in this industry, its effect upon the public purchasing power and the cost of living would bo negllble. The total volume of business for the industry for the year 1945, a re ported by tke Departnent of Conaerco, was $643,425,141. Figuring a popu lation of l4o,000,000, this represents a total per capital of $U.6o annu ally based on the prices which were in effect in 1945* Respectfully submitted, President * J President Trigg expressed the hope that ncubers of the Connlttec had had an oppor tunity to read the appeal docunent and he stated that the Association has received sene information which would indicate that the appeal night get a sympathetic hear ing. Ho pointed out that a bill'in Congress, requesting this sar.o type of relief NCA 0 03095 for all industry was lost In committee by a tie vote and is now again under consid eration- He stated that the special connittee authorised by the executive Coanittee to consider this question had held two meetings - had given the natter very serious consideration in all of its ramifications and had unaainously approved the appeal r.s now presented. President Trigg pointed out that the Bureau of the Census figures for 1539* *-re 'a8* available, show that $2 1 /2ft of the firms in the paint industry did a business of less than $1,000,000 a year and that 51 1/2# numerically'did a business of less than $100,000 per year. He outlined briefly what the appeal cov ered and pointed cut that the appeal had been very carefully prepared, based on all available inform.-'ion and he expressed the hope that it might be approved in its present form due to the need for getting earliest possible action. President Trigg stated that s:.".e interesting crnferc-nces had been held with C-PA -- on their initia tive - and that he had advised then that an appeal would be made on an industry wide basis, and he stated that some rar.ufacturers have advised him within the past few days that CPA had suggested that they wait for action on an industry wide appeal which they understood would be made rather than to press individual company appeals. After a thorough discussion of the entire subject, Mr. Campbell pointed out that no two men would write a letter in exactly the same words, and he expressed the opin ion that this letter has been carefully ar.d well prepared. Ke pointed out that the appeal as written had been unanimously approved by the subcommittee - that tine is essential - that the request crust go in to CPA promptly in order to indicate to nany r.ar.ufacturers who need relief that same action is being taken and he expressed the hope that the Committee would approve the letter as now prepared. In answer to a question by Mr. Kurfees, President Trigg explained that the letter to OPA states clearly that no effort is being made to nake a case on the grounds of CPA philosophy that an industry oust hava cade less money in 19^+5 than in a base period to be entitled to consideration. Mr. Horn stated that ho had read the appeal carefully and expressed the belief that it was an excellent job and that it successfully straddled debatable points and he moved that the appeal as written be sent promptly to OPA. The notion was seconded by Mr. Sulzberger and was unanimously approved. (Copy attached) After the unaninous approval to the request to OPA for price relief, a notion was nade and unaninously adopted, authorizing (l) that a conplete copy of the appeal be sent to the Chairnan of the Senate Committee on Banking and Currency and the Chaiman of the House Committee on 3anking and Currency, and to Senator Murray as Chairnan of the Special Committee to Study and Survey Problems of Snail Business Enterprises; (2) that a copy be sent to all aenbers of Congress, both Senate and House; (3) that a copy be nt to all paint nanufacturers; (4) that paint nanufac- turcra be requested to immediately writo. wire or otherwise connunicate with their Senators and Coajjyessnon requesting their support of our appeal* notwithstanding the favorable action on this notion, the President requested and urged reconsideration of the instructions to send copies to the Committee Chaimon referred to, to the members of Congress, and tho instructions to request manufac turers to connunicate directly with their Senators and Congressmen regarding it on the ground that he did not believe it was advisable to bring this pressure $0 bear . f~' on OPA, already probably overburdened with similar situations in other industries, i j and on the ground that he, the President, felt very confident that our application would be-given every possible consideration at as early a date as possible and that Congressional pressure night irritate noro than help and would certainly put a lot of additional work on already overburdened OPA officials. He stated that should it develop later on that such pressure night seen necessary or advisable it could be better done then than concurrently with the subaisaion of our appeal. After lengthy NCA 0 03096 -- 7-- d: scussior., particimitad in by many servers of the Committee, it was moved, seconded ar.d unanimously resolved that the instructions in the resolution just adopted he rescinded with respect to sending copies to Chairmen of Congressional committees, to members of Congress, and the instructions with respect to request: g nar.ufacturers to c:nnunicate directly with t: eir representatives in Congress, and t'\nt the natter of .ubritting our request for relief to any other ^overnnent agencies or officials r.nd the natter of asking industry members to t2ke it up with their representatives in Congress be left to the discretion of the President. report of Treasurer red to the comparative balance sheet as of March 31, 1--& and I5U5 and the re;port of income ar.d expense for the period October 1 to "arch 31, ig'ug and 13-5 (copy attr chei) and pointed cut that excess income ever expsr.se for^the period amounted to $32,537'QO and that the surplus notwithstanding the fact that 100,000 reserv fj r Retirement Plan hud been set aside, was $534,5^9 -s compared to $-57,202 at this time last year. He pointed out that the income trend is*still up, amounting tc $161,020 for the period as compared to $154,294 last year, that the budget for the period amounted to $l4l,s45 and expenses $129,033, indicating that the Associ atio n has been operated well within tho budget. The various schedules were carefully rc-vi ev.-ad ar.d Mr. Foy stated that the report had been approved by the Budget and Flr.ar.ce Committee with a recor.nendr.tion for referer.ca to the Txecutive Committee. It was moved by Mr. Vurtele, seccndai by Mr. V. K. Clark, that the ro port of the Ore- r.sur ar be cumroved. Motion carried. Heoort of Budget and Finance Committee f Mr. Foy stated that the Budget and Finance Connittoa not yesterday and authorized him to report to the Executive Comittee that the Retirement Plan, previously au thorized by the Comittee, had been worked out in detail and had been adopted* He stated that tho plan covers all employees of the Association between the age8 of twenty-five and sixty-five - that it was developed by Kr. W. M. Werbor of Washing ton - that it was reviewed and approved by Towers, Perrin, Forster and Crosby of Philadelphia - that it provides retirement benefits (including Social Security) In an anount equal to 27^ to 775 of base pay for employees, the highest percentage applying only to a basic salary amounting to $1,200 annually. Mr. Foy stated that because of sons salary increases and some changes in insurance ages since the plan was originally authorized, it ie now necessary to request an additional appropria tion of $15,411.37 to cover the cost of past service benefits.- Mr. Foy pointed out that some subsequent appropriation will be necessary to provide for T. S. Moulton and John White* two employoes returned fron the servico* in the retirement plan. It was moved by Mr. Horn, seconded by Mr. Kelley, that the additional appropriation to cover paet servico benofits in the amount of $15,4n.g7 be approved. Motion carried. Mr. Foy stated that future servico benefits under tho retirement plan will be paid for as a current operating expense and he stated that the Budget and Finance Com mittee recommended an addition to tho current budget in the amount of $12,402.14 to cover the first annual premium of the retirement plan. It was moved by Mr. W.M. Clark, seconded by Mr. Meluc, that tho recommendation of the Budget and Finance Com{ ' mittee be approved. Motion carried. ' Hr. Foy stated that the Budget and Financo Committee recommended an addition to the current budget cn the basis of $4,500 annually to cover the salary of T. S. Moulton, recently elected Secretary of the Association, the salary to apply from April 1, ig46. It was moved by Hr. 3ovr.es, seconded by Kr. Horn, that tho recommendation of the Budget and Financo Conmitteo be approved. Motion carried. NCA 0 Q3Q97 ~.-ysort of Scientific Sect!on '-Sib3 granted an ir.niir.ite leave of absence. Mr. Sward stated that he rad intorv< cved r.r.-y c--.nc-.-a.es :or avai'-nbla positions on tk* staff of the Scientific Section and ne tre r.cpa tr.at in the not too distant future the activities 0* ** f.o.n r-.g.-vt re nccelerat ri. Mr. Sward reported that in accordance with the Committee's plan to encourage actively the growing of drying oil crops, Mr. Scofield ;.:ado a four weeks' trip through the South and Southwest as far as Texas visiting State Experiment Stations - United States Department of Agriculture Stations - College Experiment Stations - Chanters of Commerce - Pail road Agricultural Agents - Cil Producers - and renters of our cwr. industry. His discussions included soybean, castor, tung, Garcia nutans, perilla, linseed, stillingia and sa-fflover, and he reported that though there is considerable interest in the crowing of drying oil crops this interest is somewhat lessened by a shortage of uanpewer. In spite of the shortage of manpower, Mr. Scofield consid ers his trip a success and Mr. Svard reported that the Scientific Section will do everything that it can do to increase the interest of drying oil crops with the hopo that an adequate supply of oils for our industry will eventually be a reality. Mr. Sward reported that the Scientific Section Connittce. at a meeting on March 13th, devoted considerable time to a discussion of the scope of the Scientific Section and had appointed a smaller working committee to develop the details. He stated ' that as soon as a broad policy has been agreed upon, it will bo reported to the Executive Committee for consideration. Ho stated that the nec.bers of the Scientific Section Committee aro new .Messrs. E. W. Pasig - A. 3, Bir.ghan - John J. Bradley, Jr.R. H. Everett - A. E. Horn - J. J. Mattiello - Charles H. Seed - Frank L. Sulzberger Harry S. Stone - and Val b'urtele. Mr. Sward stated that preliminary plans for remodeling the space; occupied by the Scientific Section at Association headquarters are under discussion, but have not as yet been crystallised sufficiently to prasont the completed plan. Mr. Sward stated that the proposal by the Asbestos-Cement Products Association for a cooperative study with our Association of painting Asbesto6-Cenent products and which he reported to this Committee at an earlier meeting has been withdrawn by the Asbestos-Cement. Products Association. Under the original proposal tho Asbestos Association was toe furnish test buildings and painters and our Association'was to furnish tho necessary paint materials. In addition to the proposed study of paint ing theso Asbestos products there was an agreement between the Association repre sentatives to refrain from using derogatory statements in advertising regarding our respective products and Mr. Donald B. Tulloch, Jr. Manager of the AsbestosCement Products Association, expressed the desire that no change be made with respect to that understanding. Mr. Sward stated that the following circulars have been issued since the last reports 712 - Oil-Rich vs. Oil-Restricted Paints - II 713 - Deferred Painting 714 - Vartino Aircraft Finishes Used by tho Army Air Forces NCA 0 03Q98 -.3 stated that this matter circular was written by Louis Peror.y, Lt. G t-el, AAT, in response to our request to Lcvcrrr.ar.t agencies for circulars about rtire -saints. .. C-=i:r-=cular 713 "-~DAef*e-r4re^d,.,,Fainti-.a-" ''v-s printed. *o. -eneral d.is.t.ri.b.u.ti.on - 20,000 ce-< ' v-lil d re roceivod vhich indicate that the bulk of this lot" A clr< .lab titled 'Testing Insecticidal ^ilr-s" written by Lr sni *r iOit! is r.cw or. ;hc press for early distribution. st.-ote Alex- n connection vith his southern trip, Mr. Sc icli 4 ssoi t *'.0 -n vn;: C r-ntion in St. Louis on the subject 'The Tut e oi Lor rr.tei Cast Oil". Ir. answer to a question by Mr. 7ay, Mr. Sward described in some detail, used for imp ovinp the drying properties of soybean oil end exp: esse-1 t that the pat r.t gave-ruing this process will be a public patent. thod ion Mr. Campbell expr ssed the opinion that even though the Asbestos-Cement Products Association is not interested in continuing the painting tests on their products, our Association sh ould not drop the project. Ho expressed the belief that the paintir.g of nsbcstes-co:ner.t shingles and "siding will have-a definite bearing on our business generally and that a careful study should be undo of the subject. Mr. Sward expressed the cpir. icr. that while glazed surfaces are being developed by the AsbestcsCcncnt manufacture rs, their costs are high;r ar.vd asbcstos-ccncnt shingles will un doubt c-Aly be used in lew cost housing and should present a real field for tha uso of paint products. In answer to a question by Mr. Griffin* Mr. Sward stated that there was some inter est in the Southwest in tHo Aevolopncnt of flax, but that tha amount grown was negligible. Mr. Blair reported in some detail on the expcrincntal fana devolopncnt being handled near Balias by Southern Methodist University nnd stated that tho University is oper ating the expcrincntal station for thn development of crops which night be adopted for the replacement of the cotton crop in the state of Texas. Ho stated that the Sxperinent Station is particularly intorcstod in tho development of drying oil crops and believed that in safflower they have found a plant which will be of real value to tho state and to industry as a whole. In answer to a question by Mr. Trigg, Mr. Blair stated that safflovor belongs to the thistle family, grows three to four feet high and can be harvested by cachinery. Mr. Blair stated that the seed is high in oil content and that the cako resulting fron tho pressing is valuable as cattle feed. In answer to a question, Kr. Blair stated that he did not know whether or not any use had boon found for tho stalk of the safflower plant. President Trigg reported that snail quantities of Garcia nutans oil are now boing received fron Mexico. In answer to a question by Mr. Kinsman, President Trigg stated that & rep resentative of the Trench Government together with Dr. Horace Hopkins of the DuPont Company cane to Washington to discuss the possibility of trading 30,000 tons of lir.eocd oil for some edible oil. Arrangements vero made for a conference with rep resentatives of the Department of Agriculture with the result that there is a pos sibility of our receiving 10,000 tons of linseed oil for a future delivery of edible oil. In answer to a question by Mr. Sulzberger, Mr. Trigg stated that the Association had had some part in promoting interest in increased production of soybeans through NCA 0 03099 -1C- publication cf reading articles in the soya growing district. Mr. Criffin expressed the opinion that if through p:oper promotion a large enough crop of soybeans could he developed, then the soybei * industry would be locking for additional markets and the paint industry would *ue in for its share. He stated that his company is prepared to build additional ants, if necessary, to crush the oil and he expressed one opinion that the soyt-ear a g;d crop for farmers and is easily hardlei. Mr. Sulzberger suggested that tb is need for s t ate-..-.an ship in. the pronolion of in creased oil crops because g: ;-rs fear a reduction in price, if the crop is large crough to supply all dor.ends. "resident Trigg expressed the opinion that there should be a long tiv.e prograu for raising ncrc flax in this country and he referred to some cor.versatooas' hs~hni h.?.i with representatives of the linoleum r.ar.ufacturir.g industry who are inro-ostt-d ir. developing a cooperative plan for the promotion of bore flax growth ir. the United States. In answer to a question by Mr. Shannon, Mr. Sulzberger stated that flex in the Argentine produces approximately eleven bushels to the acre. Mr. 7oy stated that considerable sunflower seed is being grown in South America and that a high excise tax prevents its greater importation into this country. -ryir.fi: Oils Situation Mr. Priest stated that while there had beer, considerable discussion regarding the drying 0H3 situation there seemed to be a few gaps to be filled in. Kc oaid that linseed continues to be the controlling factor in the drying oils situation and that statistically there should be enough to support tho present 75^ quota for-all fats and oils in the aggregate. This quota was established last fall upon the as^ - sumption that we would receive 5000000 bushels of Argentine flaxseed, or its equivalent in oil, during the first six months of 1946. Up to the present time, ve have only about 1,250,000 bushels (seed and oil equivalent) frocs Argentina but on the other hand our 19% domestic crop was actually about **,000,000 bushels larger than the estimate upon which the quota figures were based. He stated that there has been some delay in getting deliveries of our donestic crop because of uncertainty surrounding the price with the general agitation for the in crease of ceilings in agricultural products and the promise of a crop incentive payment for the 1946 crop, which some have felt ni^ht possibly be applied to 19% crop seed withheld from the market at this tine. The Department of Agriculture has announced its program now, however, to apply only to 1946 crop seed and has urged prompt movement of the 19% crop seed. , ' (.v . Of even greater concern ha been the delay in shipments of Argentine seed. Xr. Jasspon of the Department of Agriculture is now dewn there for the socond tine but apparently is meeting with a great deal of difficulty in his negotiations. The Ar gentine govcrnnaafcv while not repudiating the agreement concluded with our State Department a you'~iigo has nevertheless expressed dissatisfaction and has declined to sell seed at the low price of $1.6f provided in this agreement. This was of course the' condition with which we were faced at the tine of our la3t meeting three months ago. Since then there has been a national election and the Peron government, against which our State Department sought to turn the electorate, has been cot-- tir.ucd in office, and they are quite evidently going to make Mr.. Jasspon squirm before they conclude a renegotiated agreement. In the meantime, tho presence of a Hussion Purchasing Commission is adding to the confusion and irritation. The Pussiar.s arc not parties to the agreement calling for world wide distribution of surpluses by the Combined Tood 3card and succeeded in buying about half a million bushels of flax in Uruguay at about $2.25 before Kr. Jasspon appeared upon the scene and arranged for the purchase of about 4,000,000 bushels at $2.27j. The difference NCA 0 03100 is that Uruguay v=s under ns obligation to sell only to our C-r.v.oiity Crciit Cor poration, as Argentina 1b under terns of the agreement made a year ago. But offer s being made by the Sussians have had the effect of complicating Mr. Jp.sspcrJs nego tiations with Argentina and there are indications that they will not be satisfied with the price paid in Uruguay. /^ \ This can't go on indefinitely but already it has gone cn so long that it is doubt ful if we '.-'ill benefit fron further importations of Argentine seed ir. the second quarter. However, we understand that from 1,000,000 to 1,500,000 bushels of the Uruguayan purchase are destined for i-mediate shipment to this country nrd this quantity, together with that already received from. Argentina, plus further deliv eries from, our own 15-5 crop, should be sufficient to support ohe ?5i* l`-:ta. Thou r.r.y deliveries of Argentine seed will help cut in the early part of the th.iri qur.r ter before our 19-6 d-mestic crop starts to rove. Mr. Priest stated that the forecast of our 19^6 crop is disappointing, indicating only 25,000,000 bushels based on farmers' intentions to plant as of March 1st, ns c*r,pared with 37,000,000 bushels harvested in 19-5 'There is of course a c! :_r.ce for improvement and there is usually seme increment in the acreage planted but much depends upen weather conditions unsatisfactory to earlier crops and ir. the .-.cantina all emphasis of the administration appears to bo on food crops because of threat ened famine in Surcpo, though of course this situation must be mat as well as can be with surpluses from our 19-5 crop ar.l these countries new relying on us fer aid should have crcps of their own next year which, even if insufficient to provide for all their requirements, should make then much less dependent upon imports. Three months ago, in spite of the fact that there was not then enough soybean oil for edible uses, the Department of Agriculture feared a surplus from the next crop and deliberately set the goal at about 10& less them last year. Vo and others protested this and the acreage was restored* on paper, by increasing the ger.1 but again emphasis upon wheat and corn have apparently influenced the farmers in their appraisal of the economics of the situation and the report of intentions to plant as of March 1st indicates the I9U6crop will be about 12^6 less than the 19^+5 crop. The soybean oil order ha6 recentlybeen amended and all inedible industrial uses are now limited to the monthly consumption of one-ninth of consumption during the first nine months of 19^5* The order no longer specifically prohibits the use of soybean as a drying oil but it has the same effect as such use was prohibited dur ing the first nine months of I9H5. The imports of copra or coconut oil which were expected to relieve the pressure on soybean oil have not yet materialised but when they do it should be possible to relax the restrictions on inedible industrial uses of soybean oil. There has been considerable criticism of the Navy's use of soybean alkyds at a time when there Xm- increasing demand for finishes from the reconversion industries. Neither the Kavj&por the Department of Agriculture havo felt that the Navy's use of soybean alkyd*~bas been excessive but nevertheless they have shown the sane fine spirit of cooperation as already noted in the case of titanium and havo not only eliminated the use of alkyds from interior painting but have also agreed to change the specifications now calling for the use of soybean and to make thon more flexible. They will not specify linseed instead of soybean as they havo con. sidered the possibility that soybean may be more readily available than linseed ' in another year or less, but they will eliminate the requirement for the use of soybean at this tine. The castor oil situation has improved as compared 'with three to six months ago but is still very unsatisfactory as compared to a year to eighteen months ago and thero NCA 0 03101 are nc prospects far immediate improvement, due principally to the impairneat of interior transportation facilities. Three norths ago our crashers had vi thdr awn from the market for beans because the price in Brazil male it impossible to i:uport and crush them, and offer oil for sale at our domestic ceiling prices. Since then the price has been stabilized in Brazil and CPA has authorized an increase of per pound on dehydrated castor to compensate for the increased cost. x r. 3 r o appears to be a gradual increase in the amount of tung oil coming into this cc\ir*t: y from. China with arrival of the first bulk shipment r eportei two or three '* cc.**s ;o. Some oil is still being sold to Great Britain at prices in excess of our ceili: SS but as larger quantities become available for ship.n eat our imports should to increase and it r.C3 been suggested that they may be at the rate of about as per month during the last six months of the year. fishing season on the Pacific Const has been very unsatisfactory and total rroios is estimated to be cnly about 70f of normal v;hile the proportion available ir.instrial uses other than the vitamin trade will probably be still less. Glycerine Mr. Priest stated that glycerine is a by-proiuct of soap manufacture and is impor tant to us as a raw material for use in the manufacture of synthetic resins. Scan manufacturers are operating upon reduced oil quotas based upon, civilian consumption only in 1940 and 19^-1 and they are al90 operating under the handicap of very small quantities of coconut oil, which is superior tc any of the other oils used in its yield of glycerine. Ve had expocted that by this time we would be receiving fairly large quantities of coconut oil or copra from the Philippines but these have notyet materialized. Under allocations of the Combined Food Board we received copra from Ceylon during the war but with the end of the war shipments from Ceylon were diverted to Burcpe with the expectation that we would be able to resume imports from the Philippines. However, up to the present time our imports from the Philip pines hove been less than they wero from Ceylon a year ago. The situation is im proving fren month to month, however; F.B.A. has put trucks into the islands and the Kavy has turned ever LSTs for inter-island transport, thus replacing facilities destroyed or taken away for their cwrx use by the Japanese. Rosin Mr. Friest reported that at the October meeting, Mr. Wells Martin had discussed the rosin situation with members of this Conr.ittee who recommended that restrictions be kept in effect until supply is in better bclance with requirements and that ex ports be severely restricted* Since then quota restrictions have been removed and there is nev & merteaent upon the part of the southern producers to obtain approval for the export^S of 630,000 drums during the current crop year beginning April 1st. Thwole situation, with CPA estimates of production and requirements for domestic coM&pption, is discussed in detail in Mr. Martin's letter of April 12th to Mr. Trigg (copy attached). White Pigments ( Mr. Priest reported that though drying oils presently appear to be the limiting fac tor in production, it is a question whether we would have enough white pigments to permit the use of much more oil than we new have. The titanium producers are pro ceeding with their plant expansions which are expected to increase the rate of pro duction from 1^0,000 tens per year to 180,000 tons in 19^7 but delays due to the steel strike have set tho program back by three or four months at least so that we are not likely to get tho increase we had hoped for in the last six months of 1946. NCA 0 03102 Thera is no probability of significant expansion of lithcpone production as cany plants were disr.an.tled before the var and those still in production have been oper ating at capacity. All ether sine sulfide pigments are short and so is leaded zinc, though lead-free zinc oxide is in better supply, "he white lead manufacturers have just received another cut in their quotas of lead metal which they are permitted to process and farther cuts appear in prospect because of the world-wide lead -mortage; it is a fact, however, that even under these reduced quotas we continue to have very much acre white lead available than a year ago. In answer to a question by Mr. 3ovT.es, Mr. Priest stated that the linoleum manufac turers took cost of the shiprent of contaminated oil which was received. President Trigg stated that the gum producers in the South had rallied to their support Southern Senators who have cade a great issue with CPA regarding the resin situation. The price situation is such that gum rosin brings a higher price in export than is permitted under ceilings in this country and therefore the producers are making a special effort to have an increase in the amount permitted for oxmort. Ha stated that Veils Martin estimated that buyers in this country will not receive more than 755^ of their need if exporters get permission to ship the 650,000 drums they have requested. President Trigg suggested that this Committee night wish to go on record as opposing cr.y increase in rosin export above the 250,000 drums already agreed upon. It was moved by Mr. Carden, seconded by Kr. Foy, that this Committee go on record as opposing any additional quota for rosin export above the 250,000 drums already agreed upon. Motion carried. In answer to a question by Mr. Shannon, Mr. Kinsman stated that there is a 105t premium on export price of rosin over domestic price. California Regulations Covering the Use . of Precautionary or Folson Labels Mr. Macdonald referred to the fact that at the last mooting of the Executive Com mittee a report was prosentod regarding the California Labeling Regulations which were then under consideration and he statod that the regulation was put into effect but as a result of protestation the regulation waa suspended pending further review. Mr. Macdonald stated that Dr. Warren K. Watson, Secretary of the Manufacturing Chemists Association of the United States, represented our Industry at the hearings on the Pacific Coast and he then raad the following letter from Mr. C. H. Sondhaus of the National Lead Company in San Francisco: "In answer Ak your letter of March 26, at the present tine there is no 'LabellnggHE; Injurious Substances Safety Order1 os the proposed order was suspq|B&prior to two hearings at Los Angeles and San Francisco, which Dr*Kktoa attended. "I assume that since Dr. Watson's return East, he has reported to Kr. Trigg and perhaps yourself concerning developments during his visit to the Coast. "At the moment the Department of Industrial Safety of the Industrial Ac cident Commission is engaged in rewriting the order end when that task has been completed, another hearing will be held. This hearing has not yet been announced.. We are hoping of courso that the Department will authorize the uso of the uniform caution label which our attorneys sub mitted to the Department. As soon as we can secure an advance copy of the order as rewritten ve will send it to you. NCA 0 0310! "Manners of the industry here have expressed themselves to r.e as scir.g greatly appreciative of the assistance given by Mr. Trigg and his as sociates in having Dr. Watson attend the hearings in February and in other directions, and we hope for a continuance of that assistance in case the rewritten order still contains impracticable or unreasonable restrictions," Mr. Macdonald stated that the paint manufacturers on the coast recc-mer.iel the adop tion of a single caution label as follows! CAUTION Protective coatings and related products nay contain substances at are injurious to health and create fire hazards if proper precau tionary measures are not used. WARNING - FiAIGIAPLE - KZZP AWAY FROM K2AT AND OPEN FLAME WITH JC--J/AT2 VFJTII.ATICS. AVOID PROLONGED BREATHING C? VAPOR X.D ?RC- LONGED CONTACT V.TTH SKIN. DO NOT TAKE INTERNALLY. AFTER USING, CLEANSE HANDS Z30ROUGHLY. Kr. Macdonald stated that Dr. Vatsoa had reported on his return from the Coast that he net with our industry group and their attorneys and that the group seeaed to be adamant on their proposal of one label for all products. Dr. Watson was of the opinion that the California Commission v.*as not too happy about the situation, but might agree to it as a temporary measure. He stated that the Labor Union Group in Los Angeles was critical of the proposed label and wanted the names of all hazard ous ingredients shown on the label. Dr. Watson was of the opinion that there cay be difficulty in covering our great variety of products with a single label if cau-' tior.ary labeling is to be adopted and he felt that products containing aethanol and benzol justify specific caution. Dr. Watson stated there will probably be another shorter hearing on the subject and ho expressed the opinion that while they cay agree on a label as a temporary solution to the problem he felt that the use of the single label would be a temporary measuro. Approval of Auditors for the Current Year Mr. Foy stated that the Budget and Finance Committee recommended the employment of Ernst and Srnst as auditors for 19^6. It was moved by Mr. Wurtele, seconded by Mr. V. M. Clark, that Srnst and Ernst be employed as auditors for 19^6. Motion carried. Membership The Secretary stated that since the last meeting of the Executive Comaittee the fol lowing concerns, have been elected to membership in the classifications indicated, by a mail ballot* Class A IDDINGS PAINT COMPANY, INC. Ug-lg 33d Street Long Island City 1, N. T. Carl ladings. President C. ELWOOD MACKEY & CO. 911-913 Fifth Ave., North Birmingham, Alabama C. Elwood Mackey NCA 0 03104 / mid -c o n t in e n t p a in t & lAcquz?. m?g . c o . 1521 Central Street Kansas City 8, Mo. J. 3. Nichols, President p e e r l e s s C3-:e n t c o r p o r a t io n 1144 Free Press Building Detroit 26. Mich* ?. N. Steadfast Mgr-, Paint Dept. VEBZR & s mit h , INC. 15 Pierce Street P.eailr.e, Mass. P. A. Snith, Treasurer Class 3 CAL HO?:: IA FLAXSEED PRODUCTS CO. 135 cast 26 th Street to a Angeles 23, Calif. Otto M. Behr, Vice-Pres. SURERICH OIL CO. INC. 3b0 Torr.an Street Indianapolis, Indiana ?.. F. Johnson, Secretary The Secretary presented applications for cehbership received rca the following cor.corns in the classifications indicated: Class A COSTINSHTAL PAINT CO. l4 South Park St. San Francisco 7 Calif. J. P.. Taisca, Partner "MIDWEST PAINT MFC. CO., TEN 19 Main Street, N. S. Minneapolis, Hinn, A. F. Swanson, President r C2LADRI CORPORATION 652 Willis Avenue Williston Park, L. I., N.Y. V, S. De tan, President PENINSULAR CHEMICAL PRODUCTS CO. 6795 E. Nine Kile Scad Van Dyke, Michigan 3. H. Ploe, Treasurer Dor!ART PAINT & VARNISH COMPANY 906 S. Main Street Louisville 6, Ky. Mr. C. A. DeHart, President STERLING CHEMICAL COMPANY 3101 W. Lisbon Avenue Milwaukee 8, Vise, Roland S. Loaffler, Pres. DUNN-RAIN3Y COMPANY, THE 1HU71 Liveraois Avenue Detroit 21, Michigan G. W. Dunn, President SV52AHD PAINT KFG. CO. 153O Carroji'Avenue San FraaciM* 24, Calif. Vm. J. Evermrd, Owner STILES PAINT COMPANY 439 Portage Street Ealaaa'too, Michigan L. V. Schaefer TECHNICAL COLOR & CHEMICAL WORKS 439 Third Avenue Brooklyn, N. Y. Donald Greene, President TRI-STATE PAINT COMPANY 1203 South 4th Street Minneapolis, Minn. Mr. E. P. Kennedy, Treasurer Class 3 KcGEAN CHEMICAL CO., THE 1106 Republic Building Cleveland, Ohio W. A. Ritchie NCA 0 03105 It V2S sovei "by Mr. Toy, seccr.ded by Mr. V. M. Clark, that the ser.ted he srarcved. Motion carried. icr.tior.s as pra- The Secretary presented the recommendation of the Masbership Committee for the can cellation of the following Clas3 A memberships: C. K. 32ASSST CO. INC. - Dallas, Texas MCMON Ha SINS & CHS4ICAliS, INC. - Peoria, 111. (poor financial conditions) PVP.2 OIL COMPANY - Chicago, 111. (out of paint business) l-UIO lACJfJiH CCPPCPATION - Pahvay. V.S. (out of business) a5 ...? e-:*- by Mr. Toy, seconded by Mr. V,f. M. Clark, that the renter ships as pre sented be cancelled. Motion carried. 'Jew 5ngland Association By-lavs The Secretary reported that ir. accordance with a provision in the By-lavs, the New Tr.gland Paint, Tarnish and Lacquer Association had. submitted to the Ixecutive Com mittee for consideration, recommendations for amendment of Sections 3 and 4 of Ar ticle III of their By-Lavs and Section 5 of Article IT of their By-Laws changing the date of the fiscal year of the local association in order to simplify local ad ministration. It was reeved by Mr. Trigg, seconded by Mr. Jarden, that the amendment proposed by the New Sr.glar.d Paint, Varnish and Lacquer Association be approved. Mo tion carried. Simplification Mr. Kurfees expressed the opinion that it night be advisable to consider the possi bility of eliminating the five-gallon can from approved packages for the paint in dustry. The Chairman suggested that the natter be referred to the Simplification Committee by Mr. Kurfees. Cooperative Advertising Campaign In answer to a question by Mr. Kinsman, President Trigg stated that tho Advertising Campaign is moving along a bit slower at tho present time because most of the larger contracts arc in, but he stated that contracts are being received regularly and that approximately $325*000 has now been subscribed by about 50$ of the number of firms required. Ad,i oumment There being no father business to cone before the Committee, the meeting adjourned at 2:25 P.M. jg NCA 0 03106