Document vBYeNRyX1q9RxQmEx2oQp3NY6

R Et P 0 R T OF THE PRESIDENT * TO THE EXECUTIVE COMMITTEE ,July- 28 1953 INTRODUCTION He have completed the first half of 1953 without the business recession forecast ly se venal economists during the last election. In fact even the most persistent c-c:r.c:..i?ts nov- admit there is no prospect of one this year. The Paint, Varnish and Lacquer Industry is still establishing new sales records. The B'.neau of the Census reported our April dollar sales at 131,Hi1,000,. greater than ' any April sales in the rd.sx.cry of the industry and the third highest month eves-' re cord ad. Cur sales for the first four months were 2. U. percent over 1952. -While ths ?e outstanding accomplishments are the direct result of the energy and aggressive ness that is so noticeable each year, we can still increase our annual sales above the two billion mark. Pew markets are here and growing. As long as we continue to attack problems that confront us in this progressive manner we will maintain cur upward trend. The products of this great industry are always in d -: and. The desire to secure new markets and to recognise new opportunities for their use rests with us. ' The ability of our industry to meet every challenge with complete confidence in our fn+ ure will roan that our 1953 sales figures will surpass all previous records and these in turn w:b<l >'c exceeded each year following. GENERAL ir:r,TH-GS: Since the last Executive Connittee meeting, in addition to conferences In V'ashingtcn, I have attended the following meetings: Lumber Manufacturers, Washington, D. C. Scientific Section Committee, Washington, D. C. Officials - painting and Decorating Contractors of America, Washington, D.C. Simplification Commiitxee, Washir.gx.on, D. C. Philadelphia paint. Varnish and Lacquer Association, Philadelphia, ?a. Special 'Sv.bcc-jrd'ttee Putty end Caulking Compound Steering Co coattee, - Washington, D. C. Paint Statistics Committee, 'Washington, D. C. Cincinnati Paint, Varnish and Lacquer Association, Cincinnati, Ohio Chicago Paint, Varnish and Lacquer Association, Chicago, 111. Industry Promotion Advisory Committee and Subcommittee, Atlantic City, V. J. Trade Sales Steering Committee, Atlantic City, ! !. J. Lac.peer Cor..iit:e, Atlantic City, J. Cincinnati Agreement, Atlantic City, i*. J. Industrial Product Finishes Seminars, Atlantic City, i:. J. Colorado Paint, Varnish and Lacquer Association, Denver, Colorado - Puget Sound Paint, Varnish and Lacquer Association and Tacoma, vusr.irgl'*n. Association me iters, Seattle, Washlry'. :n NCA 0 0326? . ,,2- Portland Paint, 7a.rni.sh and Lacquer Association, Portland, Oregon Golden Gate Paint, -Varnish and lacquer Association, San Francisco, Calif. San Diego ?ain Club, San Diego, Calif. - Los Angeles Paint, Varnish and Lacquer Association, Los Angeles, Calif, rational Clean Up-Paint Up-Fix Up and Proneti on Committees, Washington, D. C. Subcommittee Industry Pronotion Advisory Committee, Washington, D. C. Awarded Certificates of Civic Merit - 1953 Spring Clean Up-Paint Up-Fir: Up Car.paign, Mew Fork, W. Y. Baltimore Paint, Varni.sh arid Lacquer .* s so elation, Baltimore, Md. Contractors, Dealers and Kar.ufactiirers on TV Test Campaign, Columbus, Ohio ZHDYSTRY SLIPS: Sales for first five months 1953 total $59n,975,ODO, an increase of 3a5 percent over 1952 dollar volune of $575,0[j6,X0 for the- same period. May sales were $13O,L|Olr,O0O, an increase of ii.ij. percent over $121',912,000 for May 1952. Final revised sales figuu'es for 1952, released by the Bureau of the Census, show dollar volume of $l,3uO,759,000. Ills is a slight increase over vhe revised 1951 figure of $1,339,037,000. COMVDMriOM: Our Business Prograa will feature forum nestings of manufacturers of Trade Sales, Industrial Product Finishes, Poof Coatings and Putty and Caulking Compound. Meetings of Entertainment and Hospitality Steering Committees 111 be held in August to complete their convention program. MEMBFilSHIPi For the quarter ending Jne 30, 1953, seven new applications have t eon received -- four Class A, one Class D, and two Class E. During this period, fifteen resignations have been accepted -- eleven Class A, one Class B, one Class D, and two Class E. This results in a net loss of eight manufacturing and wholesale members. Of the fifteen members who resigned, nine were due to discontinu ing manufacturing paint, varnish and lacquer products. EDUCATI0)~AI BlPCH'.vE* The brochv-re outlining the advantages and opportunities for .- young men and women in the Paint, Varnish and Lacquer Indus try will be distributed to Class A members and local associations shortly after the new school term opens. Copies vdll also be furnished to technical guidance teachers and students' counsellors. WAVY PAIMT I-'AMUFACTUPE: Association efforts to eliminate Navy paint operations bran: . significant developments* 1) Announcement on May 26 by the under Secretary of Navy of curtailment of most of these operations; 2) Directive free Mis Chief of Bureau of Ships reducing the Uavy paint products from 150 to 28 items retained for Havy manufacture; 3) Presentation on June 12 of industry's case before House Intergovernmental Relations Committee by Association and two industry U) Statement by Ilevy it would use its inventories in its paint operations or procure ment -- hence no dumping on market; 5) Association analysis of effect of curtail:, snt. shoving subs tail tial L'avy retention of products produced by private ' industry; 6) Test: mony of Wavy officials before House Intergovernmental Relations attempting to gustif* retention of 28 items. MCA 0 03264 -3- GCTP.Iv~ENT FtOCUREI'-S-KT: There has teen no drastic change in spending for government accounts. Monthly procurement continues gust under ftU billion. Reduced appropriations and peace in Korea will'reduce this figure but the change '/dll be gradual because of the long lead time in deliveries of military eouimment. RAW i'ATKKIAhS The raw rateriel outlook continues bright. The only difficulty experienced recently has been with toluol. A temporary shortage in April was eased by new production. Eov.e-'er, requirements for the aviation gasoline program and or due. .-os have in ere as ?d ard there is the possibility of some further difficulty before additional new no auc tion facilities are placed in operations the latter part of the year. CQ1TR0T LTD MATERIALS PLAN: CMP was replaced on July 1 by the Defense Matorial s Sys tem which gives priority to Defense Department and Ato-.'.ic Energy Commission orders only. Steel, copper said aluminum for civilian goods are not subject to government control. MPA; Prior to extension of the Defense Production Act for two years from June 30, 1953, the Department of Commerce was authorized to continue its defense activi ties through the Rational Production Authority until J\'ly 31. During this interim period the K?A staff has been redi:-ced by nearly two-thirds with about L3o employees retained. Announcement is expected soon with respect to operations after July 31. TUI!3 OIL: Fats and Gils Import Controls, mandatory in application (Section 10h-- Pefunse Production Act).., expired June 30. T::e Association has not op posed the position of the Secretary cf Agriculture regarding use of the discretion ary authority in Section 22 of the Agricultural Adjustment Act to control imports of agricultural coim.iodAties. The Association protested against any limitations upon imports of teng oil at the Tariff Commission hearings, May 7-3. The President's proclamation on imports of agricultural corrnoCities did not restrict the import of tung oil. Production of about U0 million pounds from the 1952 domestic crop has been completed. Stocks on hand at the end of April were about 27 million pounds. Consumption has recently been about 1: million pounds per month. FLAXSEED A'TD LIKSKZD OIL: The Department of Agriculture on July 10 estreated the 1953 flex crop as cf July 1 at 39,955,000 bushels. The planted acreage is estimated at lj,6l8,OCO acres, a third more than was planted in 1952 and 11 percent more than indicated by farmers' intentions in early March. The crop should produce about 700 zillion pounds of linseed oil, which should approxi mate requirements without dipping deeply into the government's reserve stocks. SPYPEAKS: The Department also said that ll;, 335,000 acres have been planted in scybeans to be harvested as beans. If growers carry out stated intentions and the expected harvest materializes, it will exceed the previous all-time high, of 2!h,075,000 acres harvested in 1952. The first estimate of soybean production will be made as of August 1. STEEL DRUMS AMD PAILS: Drums and pails are now free of all restrictions and l.b ita- ~~ tions. Steel for err. .s is sufficient to meet all needs. NCA 0 03265 -h- TECHKICAL SCIENTIFIC SaC?lOlT;r The Petroleum Thinner Index, Circular 7l>6, has been completely revised to include new thinners now on the market and to rake the tables of greater use to the industry* The supplements to Pigment Index, Circular 722, have been combined into one booklet. A complete revision is planned for next year. Supplement to the Triers, Plasticizers and Chemical Specialties Index Circular 737, is now at the orinters. To cate, fifteen supplements to Circular 751, "U. S. Government Faint Specifications, hare been issued. This circular will be revised next year. The new circular on "Construction Defects" received careful consideration by the Scientific Section Committee. Their suggestions were very helpful in producing a more useful publication. The part of the old circular referring to types of effects on pa:'nt films, such as, checking, cracking, chalking, etc., will be revised and re issued as a separate circular. Work on the two houses in Southport, Indiana, has been completed, but will be kept under observation for a few years. A report of this work will be issued soon. Laboratory rork involved in our general study of "Moisture - The Hidden menace to Homes" revealed some discrepancies among moisture meters. A circular covering this investigation is being prepared. The study of venting side walls to control moisture therein will be limited to labor atory torts which have been started. Evaluating moisture vapor transmission of exterior paint films applied to wood Las not been successful. Evaluation of the transmission of free films is fairly accuiate but .hen the paint is applied to wood, the tests have not produced the desired ac curacy. Work continues on new apparatus to determine the blistering characteristics of paint systems applied to wood. Apparatus is also being designed to evaluate the adherence of exterior paint to wood and to determine the moisture permeability of coated cellar walls. "e continue to receive complaints about paint jobs and these together with other in quiries as to causes of poor paint jobs are promptly answered. Since our ca. .coign has reached so many people,"inquiries come in from practically every part of the country in increasing numbers. It is difficult to determine the exact cause of dam age by correspondence or inspecting chips of paint. We are studying the organisa tion cf local committees to handle these inquiries, as has been done by the Pew Eng land Association, and to make available to home owners, home builders, or others, nearby experts to make "on the job" inspections. Many inquiries are referred to local associations with suggestions for positive action. Pertinent info: ration is received from'those local inspection reports and used by our Industry Relations and Public Information Divisions in articles for newspapers and magazines. . Our original set of slides on "Water - The Hidden Menace to Homes" still is widely used. Scripts for various types of audiences have been prepared and the slides to be used in each case are indicated. NCA 0 03266 The availability- of slides on rdldew has bean announced through "Coatings1'. The present black and white slides will bo replaced with colored sets in the near future. Several 'carriers of the industry have sent us colored photographs of mildew on colored paint. We need more and would appreciate any additional color photos you nay have. We continue to work with the General Services Administration for a change in Federal Specification TT-C-595, Color Card Book. We have urged the Adrdnistratic-n to supply individual 3x5 color chips to successful bidders. TT-C-595 is out of print and we hope for favorable action on this recomerdation# At cur insistence, C-SA held a nc-etir.g with industry last month to discuss changes in Federal Specification CT-P-29. Laboratory -work in which we are cooperating should vake it possible to effect decided improvements. Circular ITo. 76O, "Advantages of Using Alurdnus "etal Instead of Zinc Azralgams in the Dstermiraticn of Tit=ni\ur. Dioxide", resulted froze our cooperation with the Avert ran Society for Zesting Materials, Progress of Pigment-Piaversion S^udy --* The closed roll operation has demonstrated thelhfsif-abillty' of u'3ing"grinding media of high density, snail individual sice, and of spherical or flattened shape. The email pebbles, previously used oily in labora tory mills, have shown remarkable grin-ding efficiency when used in pi-oc.icticn rills at rpre1 s much above the generally a coveted 55 to 65 percent of the critical sp' 3d, which varies with diameter of the mill, work or. a possible improvement in operation of the one-point-adgustvent, thrcc-roll mill, is urber way in the for::, of a rubber coated riddle roll, the theory being chat the greatly increased working areas ob tained at the roll contacts should more than compensate for less in efficiency cue to lessor tensions on '-oil settings. The patent application for the new high-speed stone mill has been filed. Tests run to late indicate the mill's selective separation of larger undis.v-rsod particles and their re turn for further wetting and dispersing, considering equivalent finenesses of prizid, will give this rill several tiv.es the production of mills presently used. The test tv.be experiments for the evaluation of some fifty different solvents or bhi'iners for their pigment-wetting and dispersing properties acre under v;ay and, in light of the very poor wetting ability of some paint components, prove se very in teresting and valuable information. 1TAT1STICAL ALP GQ7EIb3'E:iT PiPORAS Pr.iSIO'd: Two surveys are new in progress for Trade Sales manufacturers. One on "ho!or Card Requirements" ;vill give the average number of color cards c-ed per gallon !-f . ach product sold. The other covers "Color Preference Trends for 1950, 195l -and 175k* in exterior house paints, interior flat paints, all-purpose er.axels and emul sion paints. LEGISLATION Federal -- Certain hills affecting our industry -- Federal study and research of air poQVionj creation of Federal safety standards; creation of a Consumers' Advisory Bureau in the Department of Co:t:.erc8 -- i-ev.ain in committee. The new econorlc con trols law authorizes allocation of materials for defense'and atomic energy orders, but omits authority for price or wage controls. After h-ze.rirgs on pcstici ivs, action has been deferred. Consideration cf legislation on chemicals in foods and ccoreics end their containers has been indefinitely postponed. NC A 0 03267 .< r State -- Thirty-eight State legislatures have adjourned; four remain in session; two are in recess. A labeling bill died in the Minnesota House after receiving Sen ate approval. A California labeling bill vas amended to remove all reference to paint. Illinois ar-r.ded its paint labeling law to change the penalty for a violation from not more than (.100 to not less than (.100 nor mere than (;500. Air pollution control bills clod in Connecticut, Texas, Washington and West Virginia, Such a bill in Hew Jersey passed the House but is pending in the Senate -- others are poncing in Pennsylvania, Michigan end Ohio. Wisconsin enacted a law Uniting air pollution control to cities of over 500,000 population. Hills authorising air pollu tion study ware passed in Massachusetts and Illinois. ,, All attempts to enact painting and decorating contractors' license laws were defeated. A general contractors1 licensing bill became law in Michigan. Municipal -- The New York City Hoard of Health on July lU ordered the preparation of an ;:...endnent of the City Sanitary Code to require warning labels on paint containing lead. We have been granted the privilege of a hearing on the amendment. The Depart ment is distributing pamphlets waiting parents to prevent their children from chew ing painted surfaces. Study of Hemards_to Children -- The Association is participating in an ASA project to si.`lire hazards to children. Dr. John Foulger is the .Association representa tive . The- project scope is: `'Specifications, tests and procedures to minimise home hazards to children which sight result in physical injury or por soring." A technical subcom mittee is studying the identification or labeling of paint products to indicate that they are safe to use in painting objects or surfaces used by children. Its disevsssions recognized the non-existence of any darns of lead poisoning from the original painting of toys and playthings and the need to educate parents as to paints safe for repainting tcys and furniture. The Committee expressed the view that it should not require anybody to label anything, but did state that if it were possible to have a label, beneficial and educational advantages would result. Unfair Competition -- A copy of a booklet, "The Facts on Mastic Hot Fantastic,n duVjTsFea by tneUan Francisco Better Business Bureau, was mailed to all Class A and E members. V'e have asked the FTC to investigate advertising claims for several mas tic products recently appearing on the market. The Virginia Department of Agriculture and Immigration issued step-sale orders, on p.a-lnt products manufactured by National Titanium Company and ITichael-lavronce Com pany for failure to register labels under the Virginia Paint Law. Lack of State authority forcad a release of National Titanium: products on condition of removal from Virginia* The Ilichael-Lawrence goods are being held. The Virginia authorities asked our help to have FTC stop the mail literature of these companies. FTC ceace NCA 0 03268 -7- and desist orders against both firms are in effect, and a Federal action is pending in California against National Titanium for alleged violation of the order. r Labeling -- The collection of all labeling laws and regulations was published by the association on June 1. A copy was mailed to the Executive Committee and Class A nombers. Tariff -- The Philippine Government has requested our State Department to propose legislation permitting selective free trade. Under existing law, free trade on-all goods prevails until 19$h, when an annual graduated tariff schedule is authorised until 197k. The State Department will consult with our industry before : ?-. reco:..:.encat: ons to Congress. We will oppose any restriction on the sale of our n od nets in the Philippines. DIVISION ACTIVITIES IlDdST'dlAL PRODUCT FINISHES DIVISION; Lacquer and Steering Committees r.ot at Atlan tic City, May 27 and May 29, respectively. The Lacquer Committee program featured a symposium on "New Methods of Finish Applica tion" and other papers were presented on subjects of special interest. The demand for copies of these talks has been unusually heavy. National Industrial Product Finishes Seminars were held on May 23 with a large and enthusiastic attendance in each of the sis: discussion groups. The Steering Co:nittee new plans to hold these National Seminars once a year, alternating between the Chicago and New York areas. Semi-annual meeting, Wood Finishes Manufacturers held in Chicago, June 2?. ThAUL SALES DIVISION: The National Trade Sales Steering and the National Trade S ics " Com: ittees net in Atlantic City, May 26. Deport ar.d recom mendations of the Simplification Coi.iir.ittee for revisions in the Simplification Pro gram -were approved end submitted to the Executive Committee for action. Also con sidered and unanimously endorsed was the report of the Industry Promotion Advisory Committee as approved by the Executive Committee. A special Convention Program Sub committee authorised to formulate plans for Convention Trade Sales Forum Session. Paint Power book sales continue steady -- 26,319 bocks printed, 2$,66k distributed. INDUSTRY DELATIONS: During the first 6 1/2 months of this year, the motion picture "Water - The Hidden Menace to Hones" has been shown to 1100 groups v.lth attendance of 50,000 including salesmen, dealers, pair/ting contractors, hone builders, civic groups, Faint power classes, and affiliated industries in the building crade. The slides on moisture v.on the Blue Ribbon award at the June meeting of-American Society of Agricultural Engineers. Four band: and mortgage companies* national publi cat-iors carried articles on moisture. 6,000 booklets on moisture have teen ci sin ;d to such institutions. The two exhibits on moisture are being redesigned for fall showings. 525,000 bocklets on moisture have been distributed. NCA 0 03269 'S^ Special articles cn the moisture problem have been prepared for publications reach ing home builders, painting contractors, lumber dealers, hardware dealers and mort gage companies. Thr United Press special wire service to 1200 radio and television stations has cooperated with cur program by advising the public on the moisture problem through local planning programs. FJ3LIC IFFOF -ATION DIVISION: Publicity coverage continues to grow -- ?63 maws ' ' papers in h& states now use our -weekly releases and 273 radio stations covering all states broadcast our bi-monthly programs, national, farm and industry magasine coverage is constant. "Paint - Color ... The Test ballyhoo - Cash in on Colors i." appeared in the magazine "The 11 lit card" during A cull > .Among the features now in preparation is a series of four "hcw-to" articles for "Herecraft and The Home Owner". Special -women's club program presented to 801 clubs in every state ar.d distribution of special material to schools, colleges and hove economics, i;.-K and extension leaders grows. Just issued for consumer distri bution is the booklet "Has Your House a Fungi-Face" which covers in laymen's lan guage the cause and cure of mildew problems. Copies have been sent to the industry. Clhlh UP-FAJHT UP-FIX UP: The first year of full cooperation from the United States Junior Chamber of Commerce ended with the bureau's pre sentation of a Distinguished Aohievsnent Av;ard during their annual convention in Hinreapolis. A survey indicated the majority of the Junior Chambers were particleat ing in the program for the first time; the total population of the communities in cluded in the program is 6,707,500. Plans for an enlarged program for 195a have been formulated. The cooperation from public utility companies, which sponsor town and area improve ment contests, now includes our programs in southwestern Pennsylvania, '.vest Virginia Connecticut, Western ilaryland, Georgia, the Carolines and Florida. The most important single event of the 1953 campaign was the addition of Hew York City wo the Clean Up-?aint Up--Fix Up roster. For the first time. Hew York City conducted a comprehensive program: -- chiefly inspired and supported by the members of cur industry. F.esults were highly satisfactory and foundations have been laid for more extensive future campaigns. During the 1953 campaign the Bureau distributed 1,050,191 pieces of display '.mate rials and supplied 11,965 mats to newspapers. Of the four newly-designed display items for this year's campaign, three received such a fine reception that several reprintings -were necessary. TRAFFIC: The Railroad Uniform Classification Board granted our request to reduce . the LCL classification on paint products in small cans from Class 60 to Class 55 The effective date of this has not been announced. Our request for similar action on truck shipments is pending. Hearings will be held next, month. He petitioned the ICC to suspend its Saturday demurrage rule -- reinstated Hay 31 to meet heavy grain shipments. An exemption for tank cars resulted. ICC hearings in the Central States 1.50 surcharge case ended in June.' Final deci sion is not expected before the end of the pear. As we enter the last half of 1953 and begin to exystallire plans for still 6rc aier forward strides in 195lr, I need your comments and suggestions as to our Invars ac tivities. Your advice and counsel, always highly valusd, will be doubly vslv ;d and appreciated in setting a favorable course for cur inchustry through the cihef cays ';'"23'J. NCA 0 03270