Document wrMLZ6OKpJMZN2qV5EZLBeDZo

An a c o n d a Co p p e r Min in g Co mp a n y .25 Broadway, New 'York 4. N.Y October 10, 1945 Mr, F. Laist, Vice President in Charge of Metallurgical Operations Anaconda Copper Mining Company Building Subject: Post-War Program for the . Sale of White Lead-in-Oil Dear Mr. Laist: When I arrived in East Chicago Monday, Mr, Hurless not only had all the data covering the sales situation in the various lead-in-oil districts, but he also had Mr. Brownell and Mr. Street available for conference. Mr. . Johnson and Mr. Knox also joined the discussion, and we scent several hours going into the subject of lead-in-oil produc tion and sales. This sales program also has to do with the problem of taking care of the salesmen who have returned, or who expect to return, in the near future from service in the Armed Forces. . Prior to the War, our sales in white lead-in-oil averaged approximately 2500 tOTTg~per year. This;..additional tonnage was a great"Help to tne White Lead Plant because the extra tonnage enabled the plant to operate at a reasonable o~peratxng cost"per ton. In other words, when' the production of total white~lead in the Whita~Leaa Plant exceeds s.QOO 6.000 tonsf the operation usually refurnS~a~'profit.--"Below that figure, it is seldom possible to make a profit unless variations in the pig lead market as compared with the price of white lead leave an unusually large margin between tne two. The discussion was not 'under way for any great length of time before it was evident that what the men have found in the field checks with what I have been able to learn _ from talking to the Lead Industries Association and the Association Of Paint and Varnish and~others. There is still some straight lead-in-oil business which means white leacT* iiTche pasted paint form. riot~BaIHt'..ready to usgf THS majority of*~the~WM.tei lead"sold for straight white lead paint, ho~W5V5T, is Basing manufactured principally by the Sationai WhlteTead Company. Eagle Picher has followed suit to a certain extent, N11500 PNYC0000938* Mr. F. Laist -2- October 10, 1945 and some paint companies are filling in their line with straight lead-in-oil paint in order to protect their mixed paint market, national's sales price to the dealer for this straight lead-paint in mostT'eases is approximately equal to""the: cosf'cf proaucmg a similar paint^F'.O.B. cur pIanf"at_Chicago. in the opinion of dll; concerned", in which I Cdn:cur7"?fatibnal, market for this type of paint is going to increase if. they maintain their present safes policy. This situation vastly alters the outlook for our sale of straight Iehd4ii|i0ii paste of the same composition as we produced prior to the 7i&r. Having settled the above, we proceeded to analyze the different districts* principally located between the area r.oTtn of ~tTie~"G'r.io hiver and' aast of~F!Te'tTTslvrssi ppi, treearise the 'Sale oi felfd-ln-oil in any other tp-r-ritn-ry in the''United' States was. to" a large extent, unprofitable even prior to'"Xhe--.iarv "It"was evicent from the information the Sales Departdsfcih obtained that there were still territories where demand for lead-in-oil paste will result in the sale of a considerable tonnage of that product. This being the case, we wbhjti byeri the; :dut:ies of each of the salesmen in the different districts amd have decided to recommend to you tnat we add the equivalent of approximately three men to the sales force. S'S^ejiSifel' of''''the', hfyi- .|hignen;|t,:, salesmen would, under this scheme, belliinn: jcad-ts-oll in :sucK~ areas as Grieaterltlewrlorkh''finiladelbhia3bstonv etc..:1 In 'addition, wei 'WouiG^awdp||ifirh3bti:' iwhb.|'bhSQle;''#ttyHo!uld''ba to sell lead-in- qil In, the'^;i|4bhb:|;h:. ahd?;:.Ghbater::.Chicago'Ureas. This propo sal wifi' Sh#SlcJf!|.b'Cst|!,:cf :'ia||jproXlmateiyi:'l2Q per ton for the sale' of .leidHjl^^lilsCto&hShib^lUj 'Sbfier'.'present' conditions, enable us toi:'i||l,t|';S|j|rb5i|m^tely, IC&Oi tons of; lead-in-oil per yehr, i ' for off'two>. Il'abarting ini 1946, the analy sis of the sales figures,indicates that we should also sell between 5000 and 6000 tons of dry white lead. If we were to return to the old program whereby we spent from $100,000 to $110,000 per year selling lead-ir.- oil, our cost per ton of products sold would likely jump to $60-$70 per ton. Such cost for selling lead-in-oil is not justified and would not result in corresponding reduction in working cost for dry lead. The plans which we are proposing would cost approximately $20,000 per year. They will enable us' to take care of three of the returned Veterans, one who is already working at East Chicago. Also they will enable us to keep our product oh the market until we can see just what will result under post-war building boom conditions from National's sales policy and efforts looking toward the sale of straight lead-in-oil paint.' . WHttspraasjsp s e b h s s j PNYC000093a* Mr. F. Laist October 10, 1045 -3- Someone gay ask why we do not plan to compete with National oh-the' basis of" produe^ing"`air'ffiacohda'"bah't~com posed" of straight"leafl=in-oll and drier, etc7 IrT The'first place we onlyjaave' one plant and couia nofprodhce paint, except'for'~.b.ale ih the or eater Chicago area. with- any hope of-making a profit on any such venture. In addition, I do not believe; y> shooed get into the paint business , pgrtlcu- larTv lf~ve are continuing to sell to many of our gqstomers toy-,, dry lead. More important, I do net believe we could malTe "ahy'rTonev trying to sell paint on a small volume basis. There may, however, possibly be a way to compete in the Greater Chicago area with National in connection with their sale" of, straight, white lead paint. I refer to the pos sibility of producing pulp lead-in-oil or some special product along that line, that- could be Shipped in large size return able containers, to t;wn- or three medium size paint companies in the area mentioned* If such enterprising companies can be found'who are dhx^dus to compete^with National, the combina tion''with taem as indicated, they to produce white lead paint under iheir''d'.vh: !brand:;,and!| take''cars'of1, all.'the Sdiiing, ad- ' vertising,, 'eiC'.<.,, ngft enjabjle:''us 'fed pick up another thousand tons of white 'leadibujdihejSd.'et;i,yegy low sales cost. Such a job' is^ one\thgt. mugit/bei'handi^d vdry; carefully and checked by the LegaliPepartmiiit 'andivjdinsgeKifehfe, prior fed mating any formal'airrdng'em^ntg.': M'r.. Hjiribid'arid. Mr. Srowr.ell will rive their attention1 to .'this 'matiiler1 in the. near future. If the above proposal involving an additional salss. expenditure of approximately $20,000 per year is Satisfactory,. I would appreciate ydiir so advising. fours very ^feJuly, > O. V , F.0.Case:!lc cc - Mr. J. R. Hobbins PNYC00009386