Document v6mLy4kV5Reod1jYabv7BrbpZ

11mi t i?i if^B*iia*giia^Big^a^agaa^>iaMi>BSBaMaipi itt--itri ldWaia LiA16 351 tBiWiafri __________ LEAD INDUSTRIES ASSOCIATION__________ AM LPCIMOTO* AVCNUC NC YOftK 17, M. Y. TKS LEAD MAWST Dr* ^o#pfe Tlfman, Ediior-lA<hlf9 UnX METAL BEKJRTOt, Mr toxic, It t. ItarlAt th* paat yaar, nd at ao during th* paat f nontha, ytw indoatiy baa bnd it# fair ahara of food And bod Mv. Mot ao w*ry lent ago, ooBoam w*r* awaatlAg out a load ahortag* with all it* attending oragillcatlona. /oat d o t , prodacara AppoAr to bo #wa*ting o<* olaod ouiplao, with Ail lta potential 11|\] ^ j | In tba flnAl 000X7*10 load *bcrtag*a or* bod not only for nrnoi--ro. bat for prodaeor* ao wall bocaoao In tb* final analyvla, abort agat aro not tbo boot way to oak* frlondo and kaop th--. Bat loot yaar1* load abottag* waa good n**a for tba Tnahln*too prloa cootrail*1* and regulator*. It (ova than a roaaoa for btlnc *>d thay want to work on tb* load induttry in raol *on>Mt. Mow that oooauwara nay sno* wor* oa* all tb* load that th*y plaaa* and nor that prodacara or* again nailing on tb*a and trying to lntarut thaw la buying a llttl* wor*, It'* hard to ballar* that l*a* than a /Mr ago th* govarn--nt found It naoaaaary to elaap down arrarw xwrtrletiona cat tba wao of natal. I harwe't forgottm th* wlgproaa prctaat* by th* a*nuf*ctor*ra of battrl*a and of idilto load who** o*a of l*ad waa cot book drarttcally and who** op*ration# war* aorlooaXjr curtailad. In r*tro*p*ot, th*a* axparlaoca* night an Ilk* a dgbtaurw war* it not for tb* fact that thay ham loft th*lr laprlnt on tb* lnduatry. Tb* r**trlctlon* lad to th* oat of rubftltttte* tena ef which *Pr*a*nt*d at th* 24th Annual Boating, load Induatri*# Aaaociatlon, April U-ip. 1952, Chicago, 111. mPMW mm \ $ 'Will. I' PPHM ivummmrnm LIA16352 VmiiOTiji "iuBfiii^ndhafc. Or. Josaph Tlwtnrt iVHiiw*h^was*aiAafcii^ ** [ r I are hare to ity and the industry ha* cot u ywt rid Itself of Oowerment prloa i control* md regulation* "hleh. In gy buntla Judgeaast, are a distinct hwjdl- l csp and threat to the Industry, j It la our free eoooeay and oar free entsrprlss aysten that haw* nada as tha fro*tart nation in tha world. Today our bualnaaa way of Ufa la baiaf i challenged by Gorerneent piano*ra who, oadar tha guise that wa ara In tha nldrt of a national anergancy, have designated thenselwea aa tha choaan faw id ara baat qualified to fuida tha industry. Too taa <at la now *^pp*"<"g to tha rtaal industry that tha Qowarmast haa takan osar. 1 Ooswroaent control*, in ay opinion, cocstltota a pester thraat to industry today than thay did during World War H. it laaat whan tha country wan in a alata of eoaplata nofalllMticn, wa knaw that onca tha war was orar, wa would also ha rid of occtrols. But now ww art In a data of partial nohillsatlcn, Wa haw* a sort of grak-Md-buttar aooncwy that la likely to pentInna for aa as Dtacls Jo* in ths Kraalin dsddsa to keep tha international troabla pot boiling. This dual war-and-paaoa aconony prowldss a mrj handy pag on wtdeh to hanf Oorarmant oontrols and ultimately twig business as wall. Bobody kneva battar than you producers and const**r that thara no lon<sr la any iwason for either WPi or OPS control* owwr load. But doss Washlnftan knaw it or want to know ItT Thers la aorw lend now awallahla than I yon can sh*k# a Stick at, but Wellington la still eocrlnead that laad <11 raswln In abort supply right through 1955. Why aa racantly aa February 5th, a Oowmaant rtstlrtldsn Issued figure# showing that fay 1955 *** oountiy util ba faced with a lead ahcrUgs of assa 213,000 tons. TUa abortaga wee too maok cf a whopper swan for Oowernaeot officials to swallow, and so the next day, February 6th, tha figures war* reshuffled and ths 195$ shortage was reduced to only 75,uw tons. mm M.uwp e.mtjm. w "US'* mmmmm mmmmmwMi w l w .u w .j w m ^ake i 'VrrartMf-'im't'MmMifa L TA1635 3 i ' itr`in.ii i<ih Dr. Joseph 0 With the aid of tea* of ay good friends is tba industry who Icjew nore bout lead statistic* than the Oovancawnt's statisticians, I. too, sharpened ay pencil vd ooapiled figures aheering a probable lead surplus of 125,000 tone by 1955. *a'll bar* to wait until 1955 to aoo whose figure* are aor# aecsxuta. Toe knew, it's ironic for Oovemaent officials to ti7 to figure to th* pouod hat tba supply and deaand will bo is 1955# when in January of this year, they ooulcte't oven forasoo what would happen two eonth* later. Baaaabor, they plaeod foreign load under allocation in January beoouso tboy anvislooad ooatinued serious shortages for Booths to case. *e knar bow ayopio that t Is Io b was. The point I want to aako is this, that the Oovernaoat is trying to lay the groun&rorlc for continuing controls over the natal Industry by ereatlr^ tbs lapresslcn that shortages are loaning ahead. Once that preeiee ean be established, then tbs OoTermmt feels it is better able to cope with such abortagea than you people in the lnrkistry. I feel sore convinced than ever that bad it not been for the Ooveraaant'e iniquitous prloe frees#, last ywar's shortages night never have reeebad the serious stage that they did. Of course, the dilatory tactlca ty Congrusa la not expediting the suspension of tho lead leport duty was an laportaot contributing factor. The hastily oonceived and poorly executod prloe freeao that tho on Ispoaed on lead and other netala an January 26, 1951. waa auppoaed to atop 1> flaticn. While it didn't step inflation, it very nearly put a atop to oar laporta of foreign load. Our not laporta of load last yeer were JJ per eest lower than they ware la 1953. 9 1 to not critical of the personnel that haa bandied the lead regulationa. They bave been astrenaly conaciantioua and able aaa. What I'a critical of ia tba ayetan, the baala theory that Washington knows bs` f than you do, how to run your business. X think that a aors appropriate word than 'run," la min.* S**!W!PWS c* mqmmmm ' S* - -- -r iiiiimiiiup i Fi'ipitppt LIA16354 Dr. Joseph i It look* to m ** though oar Oerern--at planner* or* no* trying U dreg th* metal Industry on to th* mm rood thot tb* English trod not *o long go, *ach to their r*gr*t. Washington i* toying with th* id** of * nodifl*d i form of stockpiling by Mna of balk baying which th* Labor Ootorment in Ii augurated In Englsid tnd for which tb* British taxpayer* ar* now paying dearly. A bureaucrat1* mmorj may b* tort, bat you probably r--eaber th* *r*nto of fun* loot year wh*n th* d*a*nd for load wax at whit* toat. That waa th* psychological tin* that th* British Klalatry eto*a to actor th* sarket and plao* an order for aon* 10,000 ton* of Mexican l*ad at 22.00# a pound. Before 1951 waa owtr, th* Ministry bought another *ub*tantial quantity at 21.75# a powd for d*llv*i7 during th* first quarter of thi* year. Th* British paid iMrioam dollar* for thi* laad, dollar* Alch they probably borrowed or got from u*. Wow tor*1* the payoffl Only a f*w w**ka ago, tb* British resold a* thi* mb * laad at 19.00# a pound for our national atockpile. That1* good business - buying st 22.00# and reselling th* sax* at 19.00#. I don't say that any of ua are Infallible. But ifcan a priwat* cospany edtea a miataka, that company pays for it. But dies th# Ocwoinsect adca* a el stale*, th* taxpayers, you and I pay for it, mid as a rul* a Oarerr--nt being Mg, its f'rtf1"** are usually whoppers. I bars nalthar th* tia* nor th* inclination to discus* whether ow Oowerrmant acted wl**ly In bailing th* British out of *oas 60,000 ton* eg lead and adding it to our can stockpile. X can't half re--sharing, bo--t u t , that in June 1950, at about th* tint the Korean war brok* out, cur Qoweram--t enounced that it waa not going to btqr any sore lead for th* stockpile, ftds decision t--d to knook th* prop* from under th* market and th* prloa dropped to 11.00# a potmd. At 11.00# a pound, th* Munition* Board was not interested ' la laad. At 19.00# a pound, it recently bought clo** to 100,000 tons of lead. What set-- strong* to a* 1* that tb* stockpiling program --am* to aynehroniso LIA16355 f-mr -ir- r->v<'ftnrrrT"TM' Dr. Joseph limm -5- wlth aaricat trends. When ecnaiadng danand run* la Mgh gear, th* atockpill^ prograa 1* usually activated and whan cantoning daaand subaldas and tb* narkota era la th* dcldruaa, th* atockpillng progra* tcashew saaw* to bar* reacted lta objective. Z aaBtloa stockpiling bactaa* there la a novanant afoot la lashington to add a nor fttori it to thla program. A plan baa bean forwulatad, but not yah adopted, whereby a Oovaranant sgaoey otbar than tb* QSA la to buy son* 20,000 ton* of load altbar of dcaaatio or foreign origin, at or below tb* donestlo eailing of 19.00# pound, no* load la to b* tept la reaarv* fro* am until tba and of tba ya*r. If, at any tla* between now and tb* and of 1952, tbar* should ba a sudden upeurg* la tba danand for load which th* supply is to a*at, than thla raserv* la to ba draan upon lanadlataly. Th# plannar* oontand that haring tbla reaarvw to threw Into th* broach In eaa* tb* danand exceeds th* supply, will avoid cutback* la civilian oonsuapUen and will avoid the red tape that la involved In getting laad out of the stockpile. 0a tb* other hand. If by th* and of tb* year, thla raaarva of laad baa not baan uowd up, it la to b* transferred to the stockpile. Paraanally, j don't Ilka the plan. I don't Ilka to aa* tb* fli t i i i iiI gat a foothold In the natal baalnees. On the strength of controlling floods th* Ooremnant got Into power projects, and noar tb* 0ov*mnnt on* d operate* power line* that coapata with prlvat* power Industry. Today th* plan anrlssgaa laad. Tomorrow it *ay Include ooppar, and th* next day tine, and later any of th* natal* for which tb* atool^dl* objective he* not aa yet been attained. To a* that'* th* Urart atop, and long on* at that. In tb* direction leading to tool alltailon of Industry. dy naia objection to th* plan la that it will poatpon fi-eaii* th* l**d Industry fro* all Onremnant oontrel*. Ii uwaa awnml xw.LrA16356` f i i { , ' .. I i r' , ,*2Ei j I ! t i :i \ ktshw 'eiitii-- * Dr. Joseph Zisaerasn I don't think that we are likely to have o land shortage this year m had in XSSI. Defansa and civilian Mads this year are eatinated at IX,000 ton* a aonth. Doneetio production la on tha lncraaaa, The flew of scrap baa baan accelerated and laporta of foreign land ara galnlrg. Ill at thaa* aoureas should furnish a monthly supply of about 100,000 tana. With thsoa proapaota in sight, oonauaars ara not likely to go on another buying blcge as they did last year. Inataad of trylig to comer all oral labia load supplier as they did last yaar, it looks as though eonaunara ara coon acre going to lot tha producers carry tba lnvoatoiy bag for ttiw. They nay oven radaea thsir own stocks to a dangerously lew level} stay out of tba aaifcat too long and than pay tha eonsaquancas. kt tha nenant, thara apysare to be no danger ot a runaway narkat either. If thara la going to bo any price running. It*a not likely to be in an upward direction. Tba fact that tha Goremeant is pi *g to buy s larger tonnage of lead for defense purpoaaa, tha fact that tha 0wa> neat La also buying load for tha national stockpile coupled with tha foot that tha inport doty on load will be relrpneed abac tha prioa breaks thrcn^h tha lB.OOg leeel for s aonth, all than# factors ara likely to deter an lmedla&e price decline. Under tha drcoaatancej, I think that tha Una has acne for tha Oovengaent to glee buck tha lead industry its frsedca, its ocaplata frtartf, froa all KH and OPS controla. Ihuring m aaerganey ocntrola ara aaid to be a necessary sell. X aa onrlnced of tha aril all right, but X was never fully eonrinoed of the neoaselty. f - r i ' jWj t w y f win m m fp^p^fyjp p ip p a p p p sw w a p i