Document x1R45q6Lbr09jo4N4ryo1Va6E

OIL, PAINT AND DRUG REPORTER Nove FIRST ANNUAL MEETING Paint, Varnish and La Association Washington, D. C., October 31 to Novemb Wednesday, October 31 First Session--Wednesday Forenoon and I am now only Ex-President alt .the present time. .. - You will hear from th-newpresldent, Mr. Anderson, probably tomorrow after noon .in connection with another activity I Plu "T pa which we have been fostering throughout [The first session of the first annual convention of the National Paint, Var nish and Lacquer Association, held in the Mayflower hotel, Washlnton, was convened at 10:00 a. m., October 31, Ernest T. Trigg, president of the asso ciation, presiding.] i President Trigg: Gentlemen, it is my privilege to call'this meeting to order at this time. This is the first annual meeting of the National Paint, Varnish and Lacquer Association, as you know, throughout the past year welcomed the opportunity we have had to get in closer touch with-you, and to offer to you such services as we have been able to render, and to be ready and willing to carry on any work that you had for us to do. Our activities, coming as they do more particularly in the line of production activities, the line of the manufacture of paint and the technicalities Involved, we perhaps have a scope to our ideas and our activities that could not he carried out in your organization, and therefore, to that degree we c.an augment or supple the year, namely, the endeavor to work with and help out some of the various other committees, particularly the indugtrial sales committee, We have co operated to the extent of furnishing them with two technical men, who will talk to you tomorrow afternoon, or tomorrow morning, about some of the technical de tails, and Mr. Anderson, the new presi dent of the federation will be one of those speakers. Ralnh Everett, one of your own vice* . president^, who is Identified with the federation is the other speaker. D ma Iw nu T tio co ne D. Ne Ya ment your work. E can assure you that the relations during the past year have been most pleasant, and we very 3lncerely welcome the opportunity we have had to get in closer touch with your working activities--and you have been working throughout the year at top speed. i The Paint Show During the past two or three years, another very important activity of the federation has been growing, and we started.hero two years ago with a very small paint - show, because we thought that the day had passed when you would I ev ph : We have appreciated the earnest and come to these conventions to learn the sincere effort on the part of your pre price of lead, zinc, and oil and turpentine, siding officer, Mr. Trigg, to co-operate and how it was going to affect your sales. fully with ua. In fact, he has co-operated with us so much that he has kept us extremely busy throughout the year on many things that he wanted done, and as I said before, we have been only too glad to do them as we could. Possibly, you don't know -- some of you may n'ot know -- ns much as you should about the work of the federation, but it fs working as an agency of the technical men and the'production execu tives of the industry, and we have care fully limited It to that classification in order that we may get the maximum benefit and good thereby and avoid any kind of sale3 talk in our meetings or in our activities, I guess that there are at least forty pages of materials now used in the paint Industry, and it is difficult to learn about many of them during the ordinary rou tine work of the year, so that we have been developing this paint show so that we could more quickly assemble the rec ord of development' and achievement throughout the past year, at least In the matter of raw materials used in the paint industry, and to go over them while we are here at the show and be ready to usethem or to reject them as we- see fit in our work. The paint show has grown to the ex tent that we now have forty exhibits in the room back here and in the corridors, Because of that I think we quite often are ab'e to get informalloji that might and I think you will agree with me that It Is a very excellent and worth while not otherwise be obtained, get it with exhibit and probably will cause you & N4831 OIL, PAINT AND DRUG REPORTER November 14\ {934 7 course that will steer our Industry Into 'sale channels.' It happens very frequently that In times of emotional excitement *we lose eight of fundamental principles. That is why it behooves all of us. irrespective of our en thusiasm,: to, study facts, to rationalize our thinking and to harness our enthusi asm along lines which! will be productive of the. greatest good to all of us, . The better housing program is frankly and admittedly commercial. It is delib erately devised and has been intensely advertised as an instrument for. the. pur pose of pulling a special Industry--the construction Industry or durable goods in dustry--out of the economic ditch. And its organization and set-up is primarily predicated on the development of strictly commercial and very competitive interests within the construction Industry and the respective communities in the United States where it is to be promoted.- I am concerned that, with our im petuous enthusiasm in receiving and ac claiming the better housing program; we do not confuse its operations and conduct with our own clean-up and paint-up cam- palgn to such an extent that nest year and In the years to come the strength of our own campaign may be seriously im paired. ' Permit me to emphasize very closely that it would be the most ghastly and ludicrous misunderstanding . if- any one developed the impression of any existing rivalry or competition between the two activities. They both have their par- out the year--the "Anniversary Sale, the 'Challenge Sale/' the "Christmas ' galeT*' "The Pre-Inventory Sale." They surely do not try to have one sale through the twelve months of the year. -, . I challenge you that good sound busi ness sense dictates separate periods In the year when otir industry emphasizes clean up and paint up by giving full support to the civic forces In the organization and conduct of the campaign, and' then at other times and still separately, empha sizes the better housing program canvass, the better painted city campaign, the bet ter light-better sight campaign, -with the realization that fundamentally, from a dollars.-and-cents: standpoint of the Indus try, these campaigns represent a series )o sales promotion efforts. Sales Drive Needed We grant we need the safes drive the better housing program. Yes, but we cannot even for one season afford to let i up on the push and power we have always put behind clean up, We cannot say to ourselves'The government is doing a good job on better housing. We'll back that this year. Next year we will take up clean up again." We just cannot do that. We cannot afford to neglect clean ' up this year, because neglect Is death, and disuse is decay. Remember our war inuustries. whlco were so busy with govern- J ment business they forgot tnere was other business, and when the war ended, found themselves out of the market. It took-ug a long time to build up what grounds are cleaned up and look attrac promise an& hope. But how foolish it tive and your nouse is biiaooy, you are not going to be satisfied,, a ou. want your nome to look as wen as your grounds. would be to neglect or subordinate the vehicle so j fundamentally necessary to make better housing a success. In other - words, Clean up, paint up; As an industry, how proud we should and fix up, against whicn you offer ' feel- that through the period of' the last no resistance but to wnlch' you are twenty-two years we have been building perfectly receptive, is the very thing that' into public ] consciousness an acceptance ingoing to cause you to modernize.Ciean for the better housing ' program. And up paves tne way,, sows tne-:seed that associated frith this sense of pride, .'ive makes you receptive to fixing up and should acquire a new appreciation of the modernizing. Clean, up changes your ; tremendous importance of intensifying pur mental processes, and it la- upon these activities on clean up and paint up cam tacts and mental processes that fix up and paigns durlfig the coming mouths. ' modernizing must appeal. As an Industry, in our clean up cam j.f some one comes- to you and. soys 'Modernize," without the way having paigns, we j are bringing to the better been paved beforehand by clean up, what housing program what Voltaire brought wifi he your natural 'reaction? "1 don't to the thinking of the French people; want to spend the money to do it Why wnat Thoinks -Paine brought in crystal should I? My house is all right as it is. lizing the thinking of the Colonists,, and It has lasted mo for five years and will what "Uncla Tom's Cabin" brought iii!in- last me a few years more. why.should 1 fluencing and attunlng-the public thinking spend money to help, the paint and build to the developments of the CIy II War, ing people get business? There are others Yes, men) of this industry, in bur ways I can spend It to greater personaj ambitious program for next year, let's satisfaction and advantage.". put the full! strength of our efforts frith Increased ehergy and understanding to Paving the Way develop clean up campaigns in greater Men, I know you see the point. It Is so Clear, The better housing program needs the way paved for it. Clean up and paint up paves the wky. Therefore, irrespective of our entnusitism ror thebetter housing program,' we must hold an equal enthusiasm for our tried and proved,vehicle*--clean up and paint up-- which has brought us a tremendous- vol number and/in increasing influence, being careful that they ate operated separately to avoid the slightest possibility of taint ing and impairing this great asset of bur industry with the mark of commercialism. With our] thinking clear and with the reputation of this Industry for progress and public [service, we look forward to 1935 with tremendous expectations. tlcmlar sphere of operation, and" under we have in clean up. We have the ac ume over the past twenty-two years and Appreciation by FHA Intelligent guidance can be so operated cumulated Investment of twenty-two that .one will supplement and strengthen years, expressed in the extent to which the the other. great clean up idea has hold of public Need for Clean Up and Paint Up consciousness. Now that it Is front-page newspaper topic; now that each year more Our paint up and clean up movement and jnore schools accept -the thought of Is such a powerful force for paint and- varnish sales because It Is apparently a disinterested movement. ' Why do people support clean up so energetically? Why do civic bodies pro mote- It?. Why do school children so enthusiastically place .their efforts behind it? For the single reason thatiifis .a civic movement intended for the'benefit and good of the community. It .improves community spirit---It develops- civic pride ---It enlists enthusiastic' cooperation^ on the part of all concerned because it is apparently an unselfish movement. The strictly humanitarian and Unselfish aspect of clean up are the factors which have made this campaign a great success across the years. You can quickly recognize the extent to .which the growth of our clean up and paint up campaign would be Impaired if we permitted It to become tainted with the mark of commercialism. It seems to be human nature to be willing to do something for the good of humanity, but It is equally human nature that when. such movements benefit any selfish In terests, to react against them. . These two campaigns, which are com mon in their objective of producing busi ness, are decidedly different in their organization and conduct. Th better housing program is pronouncedly com mercial, while clean up and paint up is . better citizenship behind It and work for it; now that mdre and more women's clubs and civic associations add to it their programs--rwe must go on; we cannot let down even lor a month, certainly not in the important, critical year of 1535. We, who are so close to the picture, cannot possibly appreciate the position our industry and, its propaganda instrument- clean up--occupies In the eyes of the world at large. We are unique--our organiza tion Is a model that many other organiza- tlons in other lines of industry strive to emulate, ; Only last week at a Detroit meeting of the better housing program, one of the government speakers extolled the National Paint, Varnish and Lacquer Association for several minutes, and the work of its promotional efforts, especially clean up and paint up. Yes sir, extolled; set us up as a good example; didn't mention any others; said that other industries would do well to develop smoothly functioning and efficient organizations like ours. Praise like that is praise, indeed. But how have we earned it? How has clean lip earned it? By waiting for the govern ment to point the way to us? No. We have blazed the trail' ourselves, and now that we are hailed as a success--.now that we are set up as a model for similar move ments, shall we in this one.crucial year Impair what It took twenty-two years to build? No, obviously we couldn't do that. decidedly altruistic. One operated through strictly commercial channels using direct We would be derelict In our duty to oar industry, to ourselves, to our organization sales methods--the other conducted by and to our country. Today, more than schools and civic groups representing the powerful force of Indirect sales promotion. Recognizing the incalculable va'ue of this great public favor and support of clean up and paint up. It is of the utmost im ever before, ive need every ounce of energy, every form of promotion, used from every angle of attack, to keep our products moving into the hands of the con sumers. For the same reason that we portance that the conduct of clean up need an energetically pushed better hous campaigns Is kept free from the taint of ing program, we need hard-hitting clean selfishness. * up and paint up campaigns for 1936, One Our clean up and paint up campaign is a permanent American institution. We can say among ourselves that it belongs movement cannot do it all. Clean up can't do it alone, any more than better housing can do it alone. It Is the cumulative force to the paint industry, but in the minds of co-operative effort exerted from all di of the people of this country, it belongs rections that is going to make 1935 the to the public, and as an industry, we must banner sales year of our Industry for this not trifle with this priceless asset by era. letting any other interest; including the United States government, beplaster it No Limit on Sates* Size has made people so receptive to the use of paint products. . I say:--The way must be paved for any/great movement The French Revo lution, which changed the whole trend of history, was no sudden movement com ing out of the blue. Had the Idea of liberty, fraternity, equality, which wasthe wateuword of the revolution, neen .given to the French people many years beiore, they wou.d have shrugged their shoulders. They might have thought there was some thing in it, but that wag as far as it We just Received a letter that I want to include in this reading, that Is signed by the director of public relations. I didn't aie' this letter until this morn ing, and I want to read a few paragraphs, to . give you] an idea of how the Federal Housing Administration through their better hodsing program view our clean up and paint! up and what they are expect ing of us n the critical year of 1985. Very briefly) it says:-- "The Federal Housing Administration would have gone.. As a matter of fact, is keenly aware of the far-reaching sooPe when liberty, fraternity, equality was of the Natidnal Clean Up and Paint Up flashed upon the French people, they were Campaign Bureau in the promotion of so receptive to it that .they, accepted it clean up, paint up, plant up, fix up cam Immediately. Why? For years before paigns, whtth annually produce a large the revolution, the. great French phlloso-' volume of business in the maintenance pher, Voltaire, had been preaching his and Improvement of property, doctrines involving the principles of "We have watched with a great deal of liberty, fraternity and equality. When ` Interest the. developments of your plans first Voltaire began his preachments, for your 19$5 clean up, paint up, fix'up wrote his plays and pamphlets, there was campaign. As you know, the plans of no wild enthusiasm in France for hia writ the Federal Housing Administration have ings. But as time grew on the cumu.a- been, laid out to encourage the co-opera tlve fores of public sentiment had cry tion of all Industry in a better housing stallized to such an extent that when the program which can be made effective in dawn of the revolution came, the revo every community through the co-operation lution was practically an accomplished fact. of all types of business. "We wish; to emphasize that the gov Men, I know you get my point. It Is ernment has no disposition to in any way the acceptance of the clean up and paint supersede or duplicate the functions of up idea which makes possible the accept -existing sales promotional organizations ance by the public of the better housing program. in the construction and building mainte nance field. [On the contrary, the desire of Suppose In 1765 the American Colonists the Federal {Housing Administration is to had been urged to withdraw irom Great Britain and to form a republic. What would have been the answer? The man who suggested these things wou d have been considered mad. The idea was ab surd, preposterous. The Americans may have had grievances, but surely they were not grievances great enough to justify any such radical or drastic action, However, the grievances did grow worse In the minds of the people. Then arose a man who, by his pamphlets and writings, changed the entire thoughts and senti ments of the American people. This man stimulate all existing organizations with sales potentialities to continue to go for ward in their own way and by their own methods, with increased energy and purpose. It cannot be' emphasized too strongly that Industries, both through their organizations and their individual members, must use they regular instru ments of promotion, publicity and sale In their regular way, as heretofore. They, themselves, and not the government, must sell the goods." [Following his talk. Dr- Plumb was the propagandist of the American showed several lantern slides depict , Revolution--Thomas Paine. You know ing high spots In the 1934 clean up of his writings. You know -of his famous "Common Sense" in which he derided monarchy and sowed the seeds for the principle that "taxation without repre sentation 1b tyranny," Falne did not say those words, but hla entire political and paint up campaign.] Presidents Trigg;--Thank you, Dr. Plumb. j [The printed report of the com mittee on clean up and paint up was philosophy pointed Inevitably to one logi as follows.]; cal result--that of proper representation, with any commercialism to any degree that would becloud Sts essential civic One very Important difference in the a fair system of taxation, the abolition of business side of the dean up, paint up, fix monarchy and the formation of an Amer Report on Clean Up and standing . up campaign and the better housing pro ican republic. These were the things that Future of Campaign gram Is tnat the loans contemplated In Paine's writings conveyed by implication, the better housing program do not go be and In ten years time their effect was so Paint Up The future of our clean up and paint low $100. The "roast beef" of the average pronounced that America was. ready to up campaign, with its twenty-two years of glorious history, must not in any way be impaired in Its effectiveness next year or through the years by our industry be coming a little too enthusiastic in over doing our goodwill gestures in connection with any transient efforts calculated to meet an emergency. No, men, we must keep our thinking clear, for clean up and paint up must go forward permanently with no ground for crltlclem that it sold its birthright for a mess of pottage, or like Aesop'B dog, dropped Its meaty bone in an attempt to pick up a reflection in the water. `, Our committee, recalling the experiences that have developed in previous years in connection with renovizing and moderniz ing campaigns, are concerned to avoid the situation of various groups and club asso ciations in various sections complaining that "We cannot put on a clean up and paint and varnish dealer is in sales of much less than $100, and cumulatively those sales make up the bulk of the trade sales business of the Industry. Clean up, paint up, fix up catches all sales, both large and small, all the way from jobs running into hundreds of dollars down to the saie of the smallest size can .of paint, varnish or lacquer, to touch up a picture frame. Even if there were' no other rea sons, this fact alone would make it Im perative that the paint, varnish and lac quer industry use its utmost' efforts to see that tne clean up, paint up, fix up ' campaign Is conducted separately from the better housing program. I will not burden you with further em phasis on the vital importance of con ducting the programs separately to pro tect clean up and paint up from becoming marked wltn the stamp of commercialism. , I am confident you all appreciate the engage in the war which resulted in Its withdrawal from Great Britain. What was not possible before the advent of Paine, became an actuality by 1775. Fahte had paved the way, had adjusted (he mental processes of the American people to such an extent that the Declara tion df Independence and the Revolution- . ary War were inevitable outgrowths, The Revolutionary War, which was a tremendous step and appalling to the hearts of -most of the people at that time, was only possible because the ground work had been laid and the way hod been paved by men .such as Thomas Paine over the decade previous to its advent Is there not a pertinent anatogy in the paving of the way in the adjusting of mental processes which clean up-paint up, and fix up has done aim wtn continue to do In cresting a general public acceptance for the better housing program? Again, In 1934, our National Clean Up, Paint Up, Fix Up Campaign has sold paint and !vamish products in largp* volume*--and proved it! The marked upswing of sales durln the first half of the present year was mi merely spontaneous. There was effoA behind it, ahd the organized acttvfty oi the millions of volunteer salesmen enlisted in the community campaigns throughout the country, i inspired and guided by our National Clean up and Paint Up Compalgn Bureau in Washington, constituted an Indispensable factor in elevating the lines on the sales chart. Without the impetus of -the clean up and paint up campaign, the sales line could not have risen as high as It did. In a national volunteer effort, such as the clean up and paint up campaign, it Is impossible to exact the same complete, detailed reports which are obtainable paint up campaign in our town because delicacy of the slender cords that tie pub Ideas Must Be Crystallized from local organizations which are paid we have just had a better housing pro lic favor with any civic movement. In i860 a civil war would have been by a central, agency, in the way a manu gram drive." 4 _. , . FCrmit me to again make clear that our clean, u d and paint up committee I* un reservedly endorsing the better housing program and are urging you In your vari ous communities to support It to the very fullest degree. We are only cautioning you to avoid so closely linking your local clean up and paint up campaigns with the better housing program as to introduce the hazard of associating the commercial ism of the better housing program with the strictly altruistic civic conduct of our clean up campaigns. By sll means, throughout the land, both campaigns should be given the fullest promotion. It would be just as contrary to the funda mentals of good business to permit the success of one campaign to be impaired As a concluding thought which I hope you will take with you and think through, let me develop briefly the extent to which the effectiveness of the better housing pro gram as benefiting our industry, Is to be .largely in proportion to the extent that clean up and paint up is aggressively promoted. The better housing program Is obviously a program of selfish purposes, People know, and the government, that the prime object of this program is to stimulate building trades business. There fore, on the part of individuals there is going to be a certain amout of resistance to this program. If any one comes to you and says you ought to spend to modernize your home, you are going to look at him out of the corner of your eye and say:--"Who says I ought?" impossible. While the North disliked slavery, and while there was a large abolition party Jn the North at the time, the masses in general were apathetic. Whl'e they were personally opposed to slavery, they would have mde no move to suppress slavery in the states where It existed. Then came Harriet Beecher Stowe and her famous book, "Uncle Tom's Cabin." Whether Harriet Beecher Stowe gave a true portrayal of the slavery question or whether conditions were as she pictured them, Is beside the point The book aroused mass opinion throughout the north to an intense pitch. It crystallized mass resentment In tne north against slavery Into an almost evangelical spirit to suppress it. facturer exacts reports from the managers of his branch houses. Necessarily, the reports to Che National Clean Up and Paint Up Campaign Bureau are wholly voluntary, and are largely reflected In the pages of the newspapers which are Bent to the bureau in Washington by pub lishers, of their own volition, for the bureau does-not subscribe to any news paper clipping service, both on account of the expanse and the fact that the volume of clean up and paint up publicity Is so great In newspapers which Join in the campaign that the requirements would be for entire! sections and complete pages, rather than for mere clipplnge. However, based upon the last previous intensive can*vass, which Indicated clean up and paint up activities in more than seven thou by the other as it would be for a mer chant to say that he would not have an October sale becauset he had just had a September sale, and one sale in the Fall was enough. No matter how Inspiring a tune may be, On the other hand, if any one comes up and says to you; "You ought to clean up your yards and. grounds because they look bad," you are quite willing to agree. You Just naturally do not put up any re sistance barrier: You will feel yourself Any movement Is effective only to the extent that the ground has been prepared for it. However, our public forgets very easily. What happened last year or two years ago doesn't weigh so heatdly In people's minds. They are interested In sand American communities in a single year, and the vigor of this year's response, coupled with energetic co-operatton by United States government agencies, it seems conservative to estimate that at least as many, and probably more com it becomes a mere drone'and" ceases to register when the band plays It all the time. When the tunes ere alternated, each one registers and holds its audience. Business has to have a hand concert going all the time. The live department store jhtts a .series of sales distributed through that yoq ought to do the clean-up job as a matter of civic and personal pride. Yet the strange part is, that after you do c ean up your grounds and yards, you are inevitably going to want to fix up and modernize. But no one setls vou on this Idea. You sell yourself, If your what Is happening today. Therefore, clean up, paint up- and fix up must con tinuously pave the way for better housing. Without it better housing Is going to meet with heavy resistance which will militate against Its success and our suc cess, Better housing offers us great munities engaged In the movement In 1984 as compared`with the best previous years. In view of financial necessity, the activities of i our National Clean Up and Paint Up Campaign Bureau have been closely restricted within the limitations of the budget, and some fields of activity ' 3 which formerly were cultivated with sttcces's in'more* prosperous times, were left temporarily to lie fallow, while the avail able resources were concentrated upon the elements of the campaign which appeared to be most immediately productive of paint and varnish sales. Space for this report does -not permit an extended listing- of exhibits, but enough salient and significant examples .and illus trations are presented to indicate the powerful potentials of the dean up, paint up, fix up movement in making sales and profit for the paint and varnish industry. Unfortunately, this same lack of space prevents adequate presentation of the huge civic background and' altruletio factors In the'campaign,1 which may seem extraneous and perhaps superficial to some members of the industry who have not engaged in an exhaustive Inspection of the hidden springs of the-clean tip, paint up; fix up movement. These so- called `altruistic factors" actually make the campaign go, and, In the last analysis, due to their being outside the paint busi ness and without any selfish interest as far as paint and varnish'are concerned, paradoxical .though- it may seem, actually sell the paint and varnish, - Government '^Cooperation United States government cooperation, past, present and future In 1934, has given' energetic impetus to the dean up, paint up/-fix up`campaign. ' Early in the year, the ` Federal Emergency Relief Administration, through State- and local directors, assigned can.vasse'rs and-other workers from the relief : rolls' to assist certain local committees carrying through the clean up, paint up, fix up campaign work, on government pay. For example, In Cleveland and Cuyahoga county, Ohio, ten directors Were authorized for a period of six weeks, twenty-five office helpers for four weeks, fifty artists, speakers and -.teachers for two weeks, and 200 field workers for three weeks--a total of 285 paid workers The State of New Jersey Emergency Relief and Civic Works Administration, following recommendations from Governor A. Harry Moore, secured plans from our National Clean Up-Faint Up-Fix Up Cam paign Bureau for a statewide campaign in New Jersey, with the.primary object of creating employment, and has co operated very closely with our Bureau in Washington. The National. Recovery Administration endorsed the clean up-paint up-fix up cam paign very heartily, in a letter which is reproduced elsewhere in this report. In Colorado a statewide. clean up-paint up-flx up-modernize campaign, with the use of our bureau's official emblem, was promoted with United. States Government money, with the sponsorship of Governor Edward C. Johnson. The campaign or ganization, which was financed by CWA funds, included an executive secretary, a financial secretary, a publicity expert, a consulting architect, a consulting land scape architect, and two stenographers. The governor drove the first nail In the modernizing of a house which was moved to a Prominent spot in Denver for the purpose of demonstration, - and a large amount of front page and other publicity was obtained in the newspapers. In Denver, a painting demonstration was a feature of the campaign. The re port made by the Denver organization to the National Clean Up and Faint Up -Campaign Bureau in Washington included the following statement:-- "An interesting thing which we did was to stain the shingles a dark weather beaten brown before putting them on. Then, while the yard was being land scaped, the roof was painted a beautiful green. The freshened appearance gets the paint-up methods over wonderfully. "The fresh paint on the model home was, also stressed in the newspaper publicity." Governor* Issued Proclamations Governors of States responded to sug gestions from our bureau, as in previ ous years, by issuing statewide clean uppalnt up-flx up proclamations. It is not uncommon for a governor to ask our bureau to draft his proclamation for him. .In Illinois, the State.headquarters of the National Re-employment Service of the United States Department of Labor requisitioned a large supply of printed suggestions from our bureau in Washing ton, Bind undertook the organization of campaigns in Illinois cities with the aid of Its own staff. The State director, In a letter to our bureau, after receiving Its suggestions, said:-- , "After reviewing our file, I have de cided to ask each of our district mana gers in the re-employment Service of Illi nois to co-operate with you in patting on a statewide campaign immediately/' The National.Re-employment Offices of the United States Government co-operated vigorously with our bureau during 1934. For example, the National Re-employment Office in Appleton, Wis., dispatched let ters to several thousand home owners In Appleton, which said in part: "Join in the clean up-paint up-fix up campaign sponsored by the . Appleton Junior Chamber of Commerce. Co operate with the national recovery. pro gram in stimulating employment. More than six thousand men and women eager to find jobs are registered at the county re-employment office. Jobe--big or small *--are what these people need. Check the list of jobs and determine which are needed at your home/' The United States Bureau of Standards turned over Its supply of check lists and pamphlets of suggestions for care and repair of buildings to our bureau, for distribution through the bureau's own channels. Bureau Helped Government Many weeks before the national housing . act was passed. Executive Secretary R. W. Emerson, of our National Clean Up and Paint Up Campaign Bureau in Washington, was in almost dally consultation with government officials' charged with the responsibility of anticipating the passage of the act, and in preparing for its ad ministration. The better housing pro gram Is modeled closely upon the mechanics .of- the clean up-paint-up-fix up campaign, although the .better housing program differs sharply from the clean up-paint up-flx up campaign, in that the government-sponsored program is frankly commerolal, and is organized and led by commercial interests in the respective communities, with the avowed object of selling their goods, while, on the other hand, the dean- up-palnt up-flx up cam paign Is based upon the inspiration of spontaneous clvfc efforts from all classes of.cltlzensL with the leadership, chiefly, of citizens who have no special interests of their own in the paint or construction in dustries, and with the co-operation of the schools, chambers of commerce, and civic organizations, .generally. In the con duct of the canvass. It Is important to distinguish that the better housing pro gram Is a direct, - frontal sales attack upon the repair and modernizing factor, which Is only one of the factors in the clean up-palnt up-flx up campaign. Our campaign is founded upon Individual and civic pride, with the initial expression In cleaning up, and automatically and with out' obvious sales pressure, creating a tremendous wave of painting up. Inspections, which make them all-the-year- could be obtained of an organization of round activities the type of -the Red Cross Fall Campaign Has Gone Forward Newspaper and Public Officials The fall clean up-paint up-flx up cam ! Enthusiastic - paign, which annually is conducted in' ' Our bureku has received such, sheafs close cooperation with the -National Fire - of tetters of compliment and approval Protection Association, has gone forward splendidly, with the official clean up-palnt up-fix up proclamation appearing on .the ' from, newspapers,- governors of States, mayors, chambers of commerce, and other campaign leaders, that in the space of any ordinary report it would be futile front pages of dally newspapers . to attempt) to print' them. A typical .In the.South,-and In some cities oh the example la a letter from LL J. Cole, of the Pacific coast, where a special effort Is Norwalk. Ohio, fieflector-Heraldj who made to attract Winter visitors, Fall -la says , of the Joampalgn:-- the favorite time for putting on the cam paign ' ... "A great! deal of painting, renovating and cleaning up work has been done. The Our National Clean Up and Paint Up paint--stores state that the sales have Campaign Bureau, at the' request of the passed, alt -ijnarks for. several years, and, Federal Housing Administration, has allowing for the usual seasonal lull, furnished many, valuable suggestions and ' laborers have been busy. I wish to thank helps - in the organization. of the gov ' you for the material sent to -us, for it ernment's better housing program. At made possible the first of the type of the present time, government officials are advertisements which is being run now depending strongly Upon the service of to be used in this section." the.National Clean Up-Paint Up-Fix Up The demand for'newspaper mats has Campaign Bureau to .increase'the Bales of - been so heavy that our bureau has had to building materials next Spring,- through slow down the distribution to keep within Its resources. ... In addition to the foregoing distinc tions, It should be clearly realized that, aB far as the insured loans in the better housing program are concerned, they do not cover- Jobs which cost less than $100, while the clean up-palnt up-flx up cam paign Is a flhe sieve, which not only catches the largest jobs, but also the jobs under $100, down to the painting of a small picture frame. Both Campaigns Should Be Used Separately Do not make the mistake of conceiv ing that the clean up-paint up-flx up campaign and the government's better housing program are the same thing. They are not. The better housing pro gram does not take the place of the clean up-palnt up-flx up program in a com - The Curtis Publishing Company,'Phila delphia, in [view of the grip of the Na tional. Clean Up-Patnt Up-Fix Up . Cam ' palgn upon jthe public imagination, turned . over its entire supply of . modernizing mats, to our bureau, and authorized their use with or! without credit to newspapers throughout the country. . . -.The Ladies' Some Journal, in a cir cular letter! Issued through its architec tural division, called attention to the en closure of the official handbook of the . National Clean Up-Paint Up-Fix Up Campaign Bureau,--and stated that our bureau "is broad-minded, non-commercial and all-inclusive In Its publicity program," It was further stated that "the Ladies' Some Journal'has'in the past cooperated with this bureau to advantage." . . Sold j' More Paint in 1934 munity. Both campaigns are necessary and should be used to the limit, but they should not be emphasized at the same time, any more than both barrels of a shotgun should be discharged at once to kill a single duck, when by reserving one, barrel and using it separately, two ducks could be :had. From the standpoint of plain business sense, it would be Just as poor business to try to combine these campaigns in a community as it would be for a poultry dealer to advocate hav ing Christmas and Thansgiving on the same day, and thus deliberately cutting -While it i is realized that the better housing' program is a slow development, and may be expected to acquire its real momentum and results in 1935, it is an easily ascertainable fact, based upon de pendable figures, that the clean up-paint up-flx up campaign this year has sold more paint land varnish for us than has the government's better housing program. While profiting all we can from the better housing program and the great potential of government-insured loans, we must maintain our perspective on our own tested salea; Instrument--the clean up- paint up-fix jup campaign. . himself out of the opportunity to sell two turkeys Instead of one. All members of , Ralph W. Emerson our industry.are urged. In their own in Executive Secretary, Clean Up and terests, to take pains to see that our clean up-paint up-fix up campaign is conducted Paint Up absolutely separately from the govern ment's better housing program, next Spring, a distinction which should be achieved by Intelligent co-operation be tween the local leaders of the two cam paigns. This necessity already has been recognized in various American cities, which are looking forward to their 1935 campaign. For example, in St, Louis, Arthur A Blumeyer, chairman of the clean up-paint up-flx up campaign com mittee, has also been appointed chairman of the executive committee of the St Louis better housing program. In cidentally, Mr. Blumeyer fa a banker. Our clean up-paint up-flx up campaign Is an ideal vehicle to carry the purposes of the better housing program to maximum success. While keeping the clean up-palnt up-fix up campaign sev- our own bureau's operations. The gov ernment recognizes that in the set-up of the better housing program there Is nothing which has not already been demonstrated in a practical way by the clean up-palnt up-fix up campaign In the modernizing factor of its program, and Is emphasizing that the government is only seeking to restore the normal move ment of business through normal channels, by means of the insurance of loans to property holders The insuring of the loans is the key which should open the door in 1935 to the greatest opportunity which the clean up-paint up-fix up campaign has ever had "Fix Up" More Emphasized arate from the better housing program, our bureau is using a special logotype shown at the top of another page in this report, emphasizing cooperation with the government sponsored movement, while maintaining the autonomy of clean uppalnt up-fix up. . The words, "fix up/1 while they have been used Informally In addition to `clean up and paint up" for many years, are now being definitely added as a 'part of our slogan, the purpose being to em phasize the generality of the movement, and to offset any Ideas which may arise We should bear in mind that the gov ernment campaign Is a temporary ex here and there that clean up-paint up-fix up is a "special" paint interest. Its pedient, while our own clean up-palnt up- strength lies in the fact that It carries flx tip campaign is a permanent Institu something of interest to everyone In the tion, which we cannot afford to submerge or sidetrack in any way, through any misapprehension of the relative positions of the two campaigns community, and it would be fatal to the great civic support of the movement If it were to appear as a mere "huckstering" enterprise for the commercial benefit of While the peak of the clean up-palnt up- an industry, . flx up campaign attained in the Spring, Our National Clean Up-Paint Up-Fix campaigning goes* right along through Up Campaign - Bureau has received an the year. For example, the campaign of unsolicited suggestion from the Red Cross the United States Re-employment Bureau organization in Washington to the effect were mid-summer campaigns, while in that the Red Gross, through its approx Dallas, Texaa, the mayor called for ob imately three thousand county organiza servance for the entire month of October tions, would consider Inspiring the launch for a fire-prevention campaign with the ing of clean up-palnt up-fix up campaigns purpose of co-ordinating clean up-palnt In communities where they are not being up-flx up activities used, but is rapidly handled by other organizations This has becoming obsolete aa the Intensive periods tremendous potentials, and it should be of most of the clean up-paint up-flx up obvious that if It were not for the highly local campaigns are for longer periods, civic and altruistic background of clean and some of them are based on quarterly up-palnt up-fix up, no such suggestion It is emphasized that the evaluations of results ofj the clean up-palnt up-flx up campaign which we publish represen/t aotual paint |and varnish materials. They do not include labor, which, if computed, would make the figures approximately* four times as much in terms of dollars. On the .other hand, the paint material factor is not separated in the evaluation of modernizing and. renovlzing campaigns, such as the better housing program, and, In order to obtain a true perspective on the results to the paint manufacturing business, wej must consider that In new construction the paint materials may represent as: little as 2 percent of the amount of construction reported, and, in painting Jobs, the value of the paint ma terials probably would be only approxi mately 25 per cent of the total amount reported. While striving "tooth and nail" to support and get all possible profit out of the government's better housing pro gram, It is only sensible to keep clearly in mind that no organized selling agency combining ipersonal solicitation and publicity has ever eoualcd our clean uppaint up-ft'x :up campaign when It comes to selling actual paint and vajrnish. In 1935 our National Clean Up-Palnt Up-Fix Up Campaign will have an un paralleled opportunity and responsibility in emphasizing the paint factor and acting as a ready-made vehicle to help to carry the better housing program to its maxi mum success. More will be required of the clean up+palnt up-flx up campaign in 1935 than ini any previous year. Industry Must Do Own Selling Job This Is just what the government ex pects and wants. The government is rely ing upon existing organized agencies, In which the clean up-paint up-flx up cam paign Is paramount, to operate full blast, ana, each itl its own way, to increase the sales of durable goods In the construc tion field, with the automatic increase of employment. It should be clearly under stood that the government la not under taking to do any industry's selling job for it Each Industry will have to con tinue to .do its own selling job. All that the government has done has been, to make It easier for people to borrow money from private sources, to pay far the work. In the paint industry there is a man-sized job ahead in 1935 for our clean up-palnt up-flx up campaign, and every member of our industry should keenly realize this fact for his own profit, and prepare.-to .use..and co-operate with the clean up-paint up-flx up campaign to the limit 1 : In this report, your chairman, on ac count of his personal experience and par ticipation In ithe local campaigns in De- ' troifc- and Hamtramck, Mich., has pre sented some pictorial exhibits, so that "he who runs m4y read." A careful examination of the exhibits will reveal that clean up-paint up-fix up, properly organized and conducted. Is no "hit or miss" campaign, and that the painting work Is distributed and evaluated house by house and street by street, A single standard tabulation, which was devised ;some years ago by John R. MacGregor and Dr. D, A. Kohr.jvill illus trate the method of computation, which, for purposes of uniformity, is used in com puting the results in sales of paint and varnish materials In the several typical examples shown In this reuort. Prices of the different materials and the quantities reoulred for different classes of jobs may differ In the opinion of Individual members of the Industry to some .extent, but sub stantially the tabulations are believed to be conservative, especially when It is realized that; a multitude of very small jobs, such as the painting of furniture Clean Up and Paint Up Window Display and other movables Is not taken Into account. I 10 '_ Nov'emisr !4, 1934 [ OIL, PAINT AND'DRUG REPORTER ^Results in Hamtramck Theto results In Hamtramck, Mich., a town of 56,268 population, according to the ftlclal tabulation, were as foMofws:-- ' ' Eet. retail No. of Quantity Total price per Total ' JobB. for each. gallons. gallon. value. 12- gals. 14.544' 3.25 547.208.00 trails painted........................... ....... 1,249 gal. 847.5 2.25 1,517.725: memberiTof St. Louis Faint, Varnish and . Lacquer Association provided $1,016, The remainder' was provided by Interests out side of our industry, the total contribu tions and their sources being as follows:-- A1 Fresco Advertising Company............ $100.00 General-Outdoor Advertising Co. ...... 1,200.00 Public Service Company............................. 700,00 A "paint clinic" was one of the features of the-Cleveland campaign in 1934. * . Gratitude-to Trade Press ' The paint trade press again has vig orously supported tue clean u*i-ptint upflx up campaign. We especially thank the American Pmnt Journalj the American 'loors painted or varnished.,,.. Woodwork painted or vamtshe.l. `orcbee or stairs................................ 1.020 084 7t gal. % gal. % gal. 510 492 501.5 4.00 3. DU 3.35 2,040.00 2.270.00 1,029.875 Radio Stations, KMOX, KWK, WIL, WBW .................................................*.......... 400.00 Associated Retailers..................................... 300.00 Paint and Oil Dealer, the AmericanPainter and Decoratorr Drugs, Oils and. Faints, -the National Painters' Magazine, 'enees ................................. .......... lutbulldirigs ...................................... - i 8,272 ' 3 gals. 8 gals; 3-sals. (av. 12 aq. ft,)1 1 sal. to 850'ft. 1,610 6,472 1,841 31 28,485 6.00 8:23 2.76 3.2.5 4.875,00 21.034.00 4,312.75 300.75 $85,230.00 In addition to the foregoing, $80 walla were kalsomltied or papered; and-1,620 walls Wood Products Institute................... 70,00 Florists' ............................... 5.00 Merchants ........................... 75.00 Members of St, Louis paint, Varnish and Lacquer Association............. 1,015.00' Balance, 1033 ................................................. $9.78 13,954.78 the Oil) Fa in t a n d Dr u q Re p o r t e r , the Faint OU and Chemical Review, the' Mas ter Painter and Decorator,' and the West ern Paint Revieto for their splendid and generous cooperation. In the lumber field,- the Gulf coast Lumberman again has been conspicuously helpful In .consistently promoting the were cleaned. : The following comparative tabulation by years shows- the growth of the claen In the town of -Hamtramck, where your chairman's own plant Is located, and clean up-paint up- fix up campaign, which Is supported- generally uy all puoilcatlons jp-p&fnt up-fix up campaign in Hamtramck,. despite industrial conditions which where the amount of paint sold in the in the lumber and construction field. 3ometiirtes resulted in half of the families-.being without a wage^earner:-- | Estimated . campaign iti 1834 totaled $86,230 In value, the boat was less than $100. The absence The year 1985 will mark the twentythird' anniversary of our National Clean Percent ef number of Percent-of Estimated Percent of of cost Is abundantly compensated for Up-Paint Up-Fix Up Campaign Bureau. Number of change from gallons of change from value o& change from- by spontaneous public enthusiasm -- a It has demonstrated its power remarkably fear. Jobs. previous year. nalrit. previous year,- paint, previous year. noil-purchasable factor. Therein lies the during the: past several years- of general 1027............. L926............ :29. .930'............ ......... .981............. .932....... 1933............. .934............. 7,185 17L0-- 66;3+ I0i7+ 16:7+ 46i3-- 317-- 9915+ 13,056 12,141 14,990 21,538 20,127 10,570 11,179 26,485 ll-O23.8+ 43,0+ 45.9-- 2C+ . 136.3+ $44,299.13 ae,M3;e2' 47,426.67 08,092.75 MiOw.ae fl4;56^l2 36:963,50 85,236:00 .... ir.229.4+ 43.0+ . %.*45.1-- 7.0+ 130.4+ Results in St. Louis The results of the campaign in 1934 in St. Louis, under the auspices of the St. Louis Chamber of Commerces and the St, Louis schools; and- all civic and business organizations, was as follows:--- Eef. retail ; No. of Quantity Total price per Total * Jobs. for cacti. gallons. gallon. value. Housespainted........................................ i 0,862' 12 ghle. 118.344 $3.25 $364,018.00 Nalls painted.....................................56,482 % gal. 28,241' 2.25 68.542.23 Ploors painted or varnished.........35,360 Vt gat. 17,630 4.00 70,720.00 Woodwork painted or varnished.}. 30,858 sal. 15,429 3.00 48,287.60 great and fundamental strength of our campaign. The cost of the clean up-paint up-flx up campaign in Cleveland- was $1,876.95. In Chicago; the second largest'city in the United States, where a- total of 1,783.149 cleaning, painting and' planting accomplishments were reported In' the canvass, the entire coat of the campaign. Including special clerical help, .was kept within twelve hundred dollars. The campaign program in Chicago in cluded forty-seven radio broadcasts. As- an example of the way the public Is made paint conscious in .the clean uppaint up-flx up activities, the following is quoted from the literature of this years campaign iti Cleveland, which was conducted under the auspices of the Anti business adversity; -Our industry owes It to Itself to jealously guard' the prestige and dominance of. our clean up-paint upfix up engine of sales, and to deliberately plan riow J to- adequately fortify it and speed It forward t President Trigg:"The local associa tions are of more importance In. our national' activities than- they have ever been. It has been considered not only desirable business to bring the subject of the local associations before this meeting but Mr. Stodder, who has just concluded- a term of. office of president of the Boston club, has prepared a paper on1 that subject, and we welcome him to present it' at this time. Porches orstairs..,..........................L 16,978' H gal. 8,489 2.25 10.100.25 Tuberculosis League, with the support- of Is Mr* Stodder in the room? Mr. fences ................................................] 12,759 3 gals. 98,277 8.00 114.831.00 the Cleveland Paint, Varnish and Lacquer Stodder. . Outbuildings ................................ 4;8&S 8-gals. 39,164 8.25 127,-348.00 Association: ' Roofs .................................................... Screens ..................................... : 0,783 3 gals. 127,266 v. 12sq. ft.) 1 al. to S50 ft. 20,340 4,364 2.T5 8.25 55.059,78 14,164,80 1. Paint the outside of the house and garage. Two coats are advisable, puttying all noEt holes and cracks between coats to prevent Local Associations ` 391,273 290,857 $896,500.55 moisture from penetrating and causing later peeling, - C. K. Stodder:--A negro was up in There were also 116,127 walls cleaned, and 63,530 walls papered or kaisomlned. The number o# mlscellarieous jobs showed an Increase of 60 per'bem over the record of 1933, there being 516,000 miscellaneous jobs in 1932722.531 in' 1933, and 1-.145.889 in 1934, -; In St. Louis, the young men's division of the clean up, paint up, fix up organiza tion reported the following to* the chairman:-- "We have, through our efforts, had 12,621 Jobs acompllshed, as compared to 1.589 jobs in last year's drive, Ouii list of Jobs includes the washing of the exterior of four buildings, the remodeling of 6*4 floors in six separate buildings; new plumbing, tuck pointing, additions and alterations to electrical wiring, new shelving, new cabinets; one bank was completely remodeled: one large department store repainted all the grills: several hotels reported all rooms were either painted or washed." 2. Wooden shingle side waits or roofs should be given one or two coats of shingle stain. 3- Exterior porch floors and door sills should be painted frequently. 4, Canvas decks should be painted one or two coats to prevent moisture from penetrat ing and causing leaks and decay. 5. Flat metal roofs, gutters and downspouts should be painted one or two costs, depending on the condition of the paint. Do not permit old paint to wear away, exposing bare metal. Rust and repairs are sure to follow. 5. Putty all windows after priming coat court trying to get a divorce. The judge- askedi "What do you accuse your wifeof?" "Of talking too- much." "What does she talk about?" "Ah don't know. Judge: She don't say." I am' going to try not talk too much, but at least I can promise you I am going to say what I am talking about, There are thirty-two local associations which are affiliated with the National Faint, Varnish and Lacquer Association. All these were started within the last The tremendous scope arid coverage of our campaign, and its special fitness to act as a vehicle In creating jobs, should-inspire the making of government-insured loans to property holders, under the national housing act. because moisture will soak the frame, causing decay, while the swelling of the wood may even cause the glass to break. - 7. Exterior doors should he protected with a fifty years. The original one was the New England club which has just closed its -fiftieth year. At the start, these paint clubs were Results in Pittsburgh The 1934 results in Pittsburgh have been tabulated as follows:' No. of Quantity Total Est. retail price per jobs. Houses painted.................................... 12.782 for each. 12 gals, gallons, 153,384 gallon. $3.23 02.410 Floors painted or varnished,.,,.. 67.U67 ^ gal. Vt gal. 46.209.5 83.083.5 2.25 4.00 Woodwork painted or varnished.: 68,080 Porches or stairs..,,........................j. 60,437 gal. hi gal. 34,994.5 30.218.5 3.00 2,25 Fences ..................................................... 18,514 Outbuildings ....................................... 8.056 3 gals. 8 gals. 35,542 64.446 S.OO 3,25 Screens .................................................; 112.036 fav. 12 sq. ft.) 1 gal to 3.-iQ ft. 3,840 3.25 Tot ot *, r $498,468.00 3.971.SH 135.634.00 164 983.50 67,091.02; ro.ns-i.no' 209 4"6,00 12,480.00 high grade spar varnish. (Badly worn < spots should be cleaned and restalned before var nishing. 8. Brighten up the basement by' painting the waits, ceilings and partitions with a semi-gloss wall finish. Two coats, if 'not previously painted, or one coat in re-painting a painted surface In good condition. Semi-gloss ie recom mended because It washes better than an ordi nary flat wall paint, 9. Enamel pipes In basement. Different colors for the hot and cold water lines, gas lines, etc., always makes It easier to trace a line when necessary, 1C. Paint the' furnace doors with a heat- essentially social gatherings where mem bers came and found out that their com petitors were rather human and rather likable. After all, you can't break bread with a tnar. or drain a beaker with him, without discovering that perhaps he wasn't as bad as you had supposed. There Is no doubt that such meetings made pos sible the later co-operation and progress of our Industry which has became the envy of multitudes of trade associations, .as national headquarters drew its inspira tions from these clubs. ' We have all seen the tremendous work 441,220 The report also recorded 166.91S rooms. In which the walls were cleaned. St. Cloud, Minn., reported; total sales of 3,484 gallons of paint and varnish valued at $11,176, in the 1934 clean up, paint up, fix up campaign. - In Paragould, Ark., even the jail was 442,620 $1,199,940.50 tr&mck, Mich., 40,600 members of. the Civic Pride Association, and similar num bers in .Cleveland, Buffalo, and Detroit, roll up a total of over a million workers in the cities which have been cited, and when you consider -that there are ap- proxlmate'y 7,000 campaigns annually, In resisting black paint. . 11. Concrete basement floors, if they are dry, should be given two coats of floor paint. If any moisure 1b present, painting is not recom mended. Such floors, though, can be Improved be applying a cement hardener which does prevent exoesalve dUsttng of the concrete. 12. Paint the waits and ceiling of kitchen, laundry, bath, bedrooms, living room, dining room, hallways, etc. If the walls have been that our national headquarters has done in this last year Every item of Interest to the Industry was Immediately explained in a letter sent to all its members. How, at times, it was humanly possible to col lect, collate, and disburse the amount of data that was sent out by headquarters* staff, is still a mystery to me. I know from pergonal experience that they eat painted; 2,750 gallons of paint, valued at cities large and small throughout the painted before and the color la to be approxi lunch at the headquarters building and I $8,632 was sold in the 1934 campaign. United- States, you can reaUsie that mately the same, one coat should be sufficient. think that many a night they must have Paragould has a population of 5,96$. "millions" means Just what it says. If new walls, two coats, the first a priming . slept there too In order- to save the time In Watertown, N. Y., the: Watertown Chamber of Commerce reported to our bur reau in Washington that the 1934 clean, up, paint up, ftx up campaign in Water town resulted in jobB, which, according to the established computation, repre sented 8,45$ gallons of paint and var nish, valued at approximately $27,058, In Lubbock, Texas, a city of 20,520 pop-, ulatian, the report indicated Ithe sale of 19,583 gallons of paint and varhish, valued xt $61,395. One of the interesting Items the Lubbock report, which Illustrates the altruistic background of the cam paign, is the statement that! boy scouts picked up and sacked 4,059: pounds of metallic cast offs--nails, cans, and other metal objects, in the 1984 campaign. Seventy East Texas counties united in :he clean up-paint up-flx up campaign in 1934. Plans were supplied upon receipt of requests, by the National Cle. n Up and Paint Up Campaign Bureau, j A typical example of co-qperation by public officials in a large city wag given jy Mayor Overton of Memphis, Ten., who ifficiary commanded the city govem- nent's participation In the clean up-paint up-flx up movement. . Official proclama tions genera'ly are signed, by mayors, in American cities. ! A splendid clean up-paint up-fix up campaign was again conducted in San Francisco, and in other Pacific coast Jltfes. A letter to the National Clean J.p and Paint Up Campaign Bureau in tVashingtcn from Frederic Sanford, secre tary of the Orange County Builders' Ex change, reported that $550,000 in uledges for the repair and modernizing' of prop erty bid been secured in Santa Ana dur- ,ng the first part of a concerted city- vide drive. Reauest was made to our bureau In "Washington for' additional =ervice. ; Creates Employment Even with the vast amount of publicity obtained by the clean up-paint uu-ftx up campaign, the army of volunteer salesmen is ao huge as to .seem incredible to any one who does . not take the time to squarely face the facts. When the facts are faced ' quarely. It becomes obvious to any investigator that the clean up-palnt up-flx up campaign Is a national Institu tion, so great that ita magnitude Is dif ficult of realization by the members of the Industry* In Buffalo, alone, In.1934, there appeared 4,184 column inches . of newspaper publicity, equivalent to 210 newspaper columns; or thirty full pages, in the clean up ariri paint up campaign which was sponsored by the Buffalo Chamber of Commerce, the- health department of the city, and the Buffalo Faint, Varnish and Lacquer Association, which lent its sup port to the movement No other com- . mtmity campaign has equaled this record In Cleve'and, 1,098 column inches of publicity were placed in the newspapers. In the height of the campaign, in 1934, it has not been uncommon to find six or eight solid pages of dean up and paint up pub'icity, made possible by the service or our National. Clean Up-Paint u-n-Fix Tin Campaign Bureau in Washing ton, In the dailv newspapers of American cities. Some samples in miniature are ph-^wn In this report, while the actual newspapers can he examined In the clean up-paint up-fix up exhibits of our bureau^ Cost of Service Small Mats, costing us approximately only 7 cents each, will enable us to have a full page of publicity in the daily newspapers, in which the cost, if we had to pay for It, would frequently approximate several hundred dollars. Yet, In the economies forced by the exigencies of the past sev and sealing coat, should be applied. In the kitchen, laundry, bath and hallways, a semi-gloss paint should be applied which wifi resist grease, steam, and similar abuse, and also withstand repeated washings. In the other rooms a fiat wall paint without too much sheen la most desirable. Any cracks In plaster should be opened and filled with patching plaster and should be touched up with the first coater in order to avoid their showing up lighter than the bal ance of the surface after the finishing coat has been applied. If surfaces are badly cracked, It may be advisable to canvas the wall before painting. 18- Redecorate the walls with wallpaper, a washable wall covering or plaBtlo paint, 14. Reflnlsh the floors. This should be done frequently, first washing thoroughly with soap and warm water and rinsing with clear water. Worn spots should be touched up with Btaln or paint, as needed, and .then the .floors should be given a coat of shellac, varnish, lacquer, - wax, floor paint, or floor oil, as the case may be. . Old wooden floors to be painted should be given a coat of crack and seam filler between coats of paint to fill up the cracks between the boards. Linoleum floors can be varnished, or lac quered and. waxed. Be sure the surface is first thoroughly cleaned in order to secure proper adhesion. J.5. Faint Tadl&tors with fiat wall paints, using same color as is on the w &Ub. ' 10. Paint base receptacle plates and swltoh plates to match the color of the woodwork or walls to which they are 'attached. 17. Paint outside fences and lattices one or two ooats. . J8.. Paint the -Inside of the garage one or two coats to encourage neatness and cleanli ness. 19, Paint handles or garden- tools, wheel barrow and lawn mower in your favorite color. 20. Paint or varnish porch and lawn furni ture to protect from weather. The bulletin also carried the following sug gestion: "Beautify your home, Inside and out, with paint and wallpaper. Brighten your of going between office and home. But with all this work there was some thing lacking. Not anything that could be remedied by headquarters, nor any thing that the local organisations were consciously shirking. However, the fact remained that headquarters was giving every possible kind of Information and help and in return receiving relatively little. . Imagine a grea* business organisation with branches all over the country. Would such a concern he content to send out Instructions, suggestions, and infor mation, supervise the- growth and pros perity of these branches, and not ask for any field reports of any nature? De cidedly not Canfield may be a game of solitare. but co-operation isn't And don't think for a moment that- I am leveling a finger of scorn at the local association for Its lack of co-operation. The spirit was there and a co-operation of a sort with headquarters was accom plished, but It was not completely satis factory because the local associations did not co-operate among themselves. Of course; there was no precedent for so doing and you know how hard It is to get out of a well-established rut. The average local association had been formed on an idea *. an idea that other communities had such an association and, from general reports, such an organiza tion was distinctly worth while to mem bers of the paint Industry. With just the barest of basic Information, the local paint club was started. Knowledge of what other clubs Were doing was limited to what information seeped Into the club from indirect outside sources, I venture to say that up until today you have never had even a sketchy picture of the most important factor of the paint in dustry--the local paint association. Last vear at Chicago, President Matlack had an Informal dinner for club presidents. The clean up-paint up-flx do campaign s an important factor In creating employ ment, and to that extent h^lps to ease ili* nubile relief burden. } In one instance, that of thc]E. G. Budd VTanufacturirvr Company, Bhtladelohta, eral years, our national bureau does not attempt to serve more than two thousand of the thirteen thousands newspapers in. the United States. The cost of financing local clean up- paint up-flx up campaigns la ao small floors, ' woodwork 'and furniture with varnish and enamel. Make your garage, shed and fences attractive with a new coat of paint, Visit the paint clinic. Builders' Exchange building, for advice on how uo decorate and' paint the home. . . ' If I remember correctly, there were about thirty club's represented. It was a new thing and there were a lot of ideas dis cussed and cut of this meeting came the standardized constitution and by-laws for local associations. This was a great step ;lean uo-paint uo-flx uo activities were jseri to ameliorate the dietres4 of strikers. "Millions* Is no mere figure of speech, nr. exaggeration, when apnjled to the. volunteer sale^m^n in the clean un-paint ip-fix tin camoalgn. For. example, aon-oxifftatelv 613,001) students of the schools antiuaFy- pull their, neighbor's' loorbella and ask them to clean up and taint nnjn the eitv of Chicaw a'one. In 3t. Louis approximately iso.OoO: In Pitts-: as -to be relatively "next to nothing, * When the ambitious amounts which are required for financing other community campaigns are considered, the cost of the clean up-paint up-flx up campaign, with Its huge sales and profits for our Indus try, appears relatively Inconsequential. For example, In' the 1984 campaign in St. Louis, in which paint and varnish prod ucts to a total of $396,590 were sold, the total amount collected for! campaign ex 1,200 Job* for Contractors In Cleveland, the Emergency Relief Ad ministration canvassers were credited with creating twelve hundred jobs for con tractors. The cost of the campaign in Cleveland, previously stated, represented' money drawn from private sources, ex clusive of the government's appropriation for paying the canvassers from the relief rolls, -which required a government appro in the direction of co-ordinated action and co-operation but It la only the founda tion. The building is yet to be raised on It. Relevant Data Sought About two months ago, I sent out a questionnaire to every one of the thirtyv two presidents of local associations. This questionnaire was far from perfect but It did contain items which had to do- rurgh, 175,342; in Detroit I and Haiti-- penses was on^ $3,954.78, of which the priation of $12,000. ' with Internal management, Some of them OIL, PAINT AND DRUG REPORTER November !4\ 1934 II were of no importance to the Industry as a whole but were, in my estimation, of interest to the men who were running the local associations, Questions, which, when I had been a club president, .had come to my mind and which no one could answer. Along with this questionnaire I sent a letter, explaining briefly the purpose of the questionnaire and also requesting that any local problems in club management be submitted to me. I have received replies from twentyeight associations. The results fall into two .separate classes:--<1) The summary of the questionnaires, and (2) the prob lems of local organisations. Taking flrst the matter of the ques tionnaires. The average club dues (not including the 20 payable to the national association) were $20. There are two associations which have two types of membership I realize that uniform club dues may not be feasible as there' is a great difference in size and in work done by the different associations. However, I think that the average Is of Interest. . The next. question was concerning .the secretary. This gentleman, as you know. Is the fellow who knows his local associa tion from A to Izzard and who often gets round-shouldered from carrying the presi dent. Well, there were exactly thirteen associations or less than half of those reporting, who oil the mainspring. Two associations paid the secretary $50 per year; three, $100; one, $200; one, $400: one, $480; one, `$600 ; three, $1,200; ana one, $2,400. Two of these associations had ghost-writers, or assistant secre taries, who received the money but not the glory. Another had two secretaries, the regular one who got $100 per year and a secretary of the credit section who got $150 per year. It was also interest ing to note that ten of the secretaries of the reporting associations were not connected with the industry. Also, that eighteen of the twenty-six secretaries act as treasurers, but of the ten treasurers who are not secretaries, none of them receives any salary. Another point of interest was the fact that within several associations are groups or units which meet separately and discuss their particular problems. For example, six associations have a credit unit; four, a trade and industrial sales group; two, a manufacturers and dis tributors unit; one, a jobber unit; and one an oil unit. Of the twenty-eight associations, twenty have specific days for their meetings, and two have specific months. The majority of the associations cu1 tivate the social side by special meet ings. Thirteen have an annual meeting; five, a Christmas party; four, a ladies' day; one, a club birthday party; and one, which is located in more of a Slavic than a Celtic area, a St. Patrick's patty. Golf Is generally featured at the annual outings but one association has a monthly golf party. Last year the national program com mittee suggested that local associations sponsor a dealers' night, Eight associa tions and one last year and ten are plan-' ning one for next year. I hope this will change the opinion of one association which, in answering the question as to whether or not they were considering a ' dealers' . night for next year, wrote, "Hardly." Local Committees Another question was, "What regular standing committees do you have?" I confess the results were somewhat ter rifying as I find no less than forty-nine standing committees listed, although the most that any one club reported was fourteen. You might be Interested in learning the ten most popular standing committees. "Membership" took first place with twenty-one associations; "Legislative," second with nineteen; "Credits and Collections," third with seventeen; "Entertainment," fourth with sixteen; "Trade Sales" fifth with fifteen; "Executive," sixth with fourteen (I don't know why this should not be first, but I can show you the figures) ; "Program," seventh, with thirteen; eighth place was tied between "Clean Up and Paint Up" and "Industrial Sales," with eleven each; ninth place was also tied between "Golf" and "Traffic," with nine each (I admit I lumped "Transportation," with "Traf fic" which I think was logical) ; and tenth place was held by "Code," with seven. . Some associations have shown Ingenuity in having a committee unlike any others. For instance, I find a single example of a board of' control, and apportionment committee, a new ideas committee, a statistical committee, a welfare commit tee, a workmen's compensation commit tee, and a scholarship committee. . A great many associations conducted special events which were of value to the community and the trade In com mon. I have already stated that eight as sociations held a dealers' night. Eigh teen put on a clean up and paint up campaign; six, a campaign against cheap paint; two, a renovlzation cam paign ; and one, a better housing cam paign, Many associations took part in more than one of the above campaigns. For example, all but one association which had a "cheap paint" campaign also staged a clean up and paint up campaign. Only eight associations .had any sug gestions as to any special type of pro gram they would be interested in next year. Credit and business promotion were the chief requests. Only three as sociations ever hire outside speakers; nine use some kind of a system to Insure maximum attendance at meetings, and six have their books audited by an out side accountant. In reference to attend ance, one association had a custom of . maintaining a "kitty" at their monthly meetings. Everyone present contributed a quarter and the total was raffled off at the succeeding meeting. 1 believe that the figures I have Just nuoted will give you a picture of the Internal management of our local asso ciations as a whole and some of the recommendations which I am to propose a little later are based on these findings. Special Activities , I now' come to the section of special problems and functions. One association secretary writes "At the present time much time and ef fort is being given to the matter of credits and collections, particularly with the painter and .decorator trade, resulting In the formation of a system of credit con trol which has been operating for several mpnths and which Is bringing benefits and results which have surpassed the ex pectations of most of our members." I regret 1 cannot explain In detail this system but I am sure that other associa tions will be Interested and I feel certain Frank L. Hatch, executive secretary of the Golden Gate association, would be willing to give information to any asso ciation, which asks him. The Indianapolis Paint and Varnish Club makes th* following suggestion;:--- `In regard to trade and industrial''sales group, I presume that we have a different problem from the associations in larger centers. There are so few- of us in each group that the group meetings are not Interesting or far reaching. If these groups could combine In such groups as are covered by -glass Jobbers or our own Production club groups, which include Indianapolis, Louisville, Columbus, and Cincinnati, and Dayton manufacturers, I believe that more could be accomplished and l do not see how it is possible for a small group such as we have in In dianapolis, to accomplish very much where there Is no uniform, concerted action or any contact with other clubs," Another club executive puts In a plea for more interest from members. Hesays ?, 15\ comment concern[h e local ,tIlat **" would in my opinion nc lon to a much greater advantage fn the 'interest of the industry if the prin cipals of the various local concerns would ST-JUS of thf`f and attention to the problems and development of the local appeal for such should be 5525* th? writer feels, from our general ^iem2^uarte.re at Washington," The spirit of this opinion was seconded * executive who writes that their trouble Is in -maintaining the REEfr !nerest among all members, both large and small." While still another complains. -It is difficult to keep up i" groups were on different subjects long before .thejre was any code In existence dr even thought of. The work done by these manufacturers and distributors groups speaks for itself. as to the usefulness of such a unit but there is another function which I would like to point out as it is one of extreme importance. Today, more than at any time In the past, the local associations have serious work to do, but the fact that there must be & social side to such organi zations must not be lost sight of. Practi cal experience has proven it is Impossible to combine a highly successful social meeting with a highly successful busi ness one, yet both are desirable. Also, there are many business problems that cannot be brought up at a general meeting of the association, One club president summarizes this by saying, "Be cause of the various groups* such as man About a year ago a lady in New York city had trouble in explaining to the telephone company that they had wrongly charged her! for a bill for which she was not responsible. Despite several letters from her the telephone company persisted In sending hr the bill on the first of every month. Finally, one morning she received two letters from the telephone company. One was from the manager of the sales department acknowledging her letters and apologizing -for the company's mistake. The other was from the manager of the credit department threatening to turn the bill over to A lawyer for collection. Very coolly the lady pinned both letters together and sent them back to the telephone com pany with el brief note saying, "I want you gentlemin to meet each other." Thus l say, "I ^ant you gentlemen to meet each other." Recommendations ufacturers, distributors, raw materials and With all ij have said as a background, sales representatives making up our club I want to make the following recommenda membership, we have found it difficult to tions to local associations `.---First, where- provide subjects which have been of uni versal appeal to be discussed In an open meeting with interest by this mixed group. Largely because of this condition our dub ever possible! there be established a manu facturers and distributors group. Second, that the meeting or series of meetings between representatives of local meetings have become mostly social gath erings." Another one says, "If it were possible to discuss all of our problems be fore the group as a whole it might help to keep up the Interest of all our members. As y o u undoubtedly know, problems are presented at our executive committee meetings which could not very well be discussed at a public meeting." associations be held in the different zones during the coming year. In this con nection I would suggest that, whereas, the New England club is the only club in Its zone, It be for this purpose in the eastern zone. . Third, that! every association shall make a duplicate of all its minutes and send these to the national headquarters. Such Business Problems ' a file of minutes will prove Indispensable not only to the national association head The manufacturers and distributors quarters but to any local association group comes as an answer to an associa which is interested In improving its man tion president's prayer. At the meetings agement. . of this group pertinent business questions Fourth, to'prepare a simplified Diet of can be brought up. I have attended meet standing committees. Many standing com ings of the manufacturers and distributors mittees now functioning are duplicates of unit of the Paint and Oil Club of New ' committees already existing in the .same England where questions brought up were organization under another name. so pertinent that manufacturers were Fifth, that: wherever possible, bodks of mentioned by name and and those manu the local associations be audited by au facturers had an opportunity of standing outside accountant and that such account In attendance." And still another 1 yalL aoms scheme could be' V1'1 iroug'ht into effect that ? awaken more interest in our regu- nosetings so that the attendance would be larger and more regular." up and explaining their side.' This pro ing be a uniform one. cedure always cleared up misunderstand Sixth, wherever possible, the local .as ings which otherwise might have smold sociation's mailing list for notices contain ered along for months. The manufac . the addresses of all club association sec turers and distributors group Is the. logical retaries. meeting place for a great many of the Seventh, that there be published .and existing standing committees In the as . sent to every association a list showing Co-operation of Locals sociation and the proper place for detailed the meeting dates of all associations eiAjy3'' naJfucv thought regarding f;aer, c-P eration between local Sssocia says -!L Bxpreasea by one president who ' business discussions. ' Ail of this brings up another angle in our trade existence* the wholesaler. 1 have been told by several people, includ which have specific times for meetings. Gentlemen,; concluding, I hope that my survey, which is far from perfect, may lead to a closer co-operation along .the might be very interesting to have organization of paint asso- m5ett2LlnTarPus territories, and have Zl%KitaIs ooraalpnaliy to discuss their ETM1? S' .F'P,!1 one ot the territorial f,Toapa. could then appoint a committee mittees1 Miff tSorU^sV^: TMMoSStss^atoS5M be *inter<!at ing wholesalers, that the wholesaler today was in many cases regarding the local as sociations affiliated With the National Faint, Varnish and Lacquer Association with more or leas of a fishy eye, under the impression that these organizations were only for the benefit of the manufac turers and as such there was no place In it for wholesalers especially when there was in existence a wholesalers' organiza lines I have mentioned as I firmly believe such action will benefit the industry as .a whole. Report on Programs (The distributed report of the com mittee on. Ideal association programs tion to which many of them already be was as follows.) ,, P)LS also voiced by another president who writes:-- ,c uZ~s+u JJjjJfa I am inclined to bePresidents of the various clubs should get together at least Possibly twice a year, I understand, of course, that this cannot 5 as awho'e-but could be done through zones." a? r mentioned, speaking of the various types of committees, an ap portionment committee. The duty of this comm [`tee Is to help the flssoefltim In S5*-S?1*e3r a2y apeeta3 campaigns or obligations. Its function Is to appor tion the expense among the members in proportion to what it believes each par t, intemta* 3n the contribution should be. The secretary .who gave me this information added, "While the com putations have often been quite com plicated. they have always been accepted, except for the good natured protest of all members." 1 should say that' this was a perfect example of a benevolent autocracy. Two associations which are farthest apart, in a geographical sense, are as one on the subject of a manufacturers and distributors group. The Go'den Gate Faint and Varnish Association started this In 1926, and the Paint and Oil Club of New England started it in 1952. Such subjects as returned goods, service, guar antees, advertising, terms of sales, etc., have been taken up by both these groups. It la surprising to see, now that we have- a, code, how right the decisions of these longed, Gentlemen, thla impression is entirely erroneous and based on a superftcial knowledge of the alms and Ideals of the National Paint, Varnish and Lac quer Association. It Is true that the manufacturers have certain problems, say In production, in which the wholesaler is not primarily in terested. Or. the wholesalers may have problems which may not interest certain manufacturers although those that depend on wholesalers undoubtedly are interested In them. But the major problems of each class are correlated and unless they are solved by a combined understanding, neither side accomplishes its objective. What better place can manufacturer and wholesalers get together than in a manu facturers and distributors group meeting where they can freely ask and answer questions of vital interest to both parties. Why should manufacturer and distributor stand apart and thumb noses at each other while the customer walks between them on the arm of the mail-order house? Manufacturers and distributors must work together in perfect harmony and under standing If the maximum results for each are to be obtained. Who benefits from some of the special campaigns I have mentioned, such as clean up and paint up, dealers' night, Btc.? Just the manu facturer? Just the wholesaler? Of course not, both of them. Does the manufac turer selling through wholesalers delib erately try to injure the wholesalers, or does the wholesaler intentionally wish to injure the manfaoturer whose goods he distributes? What a foolish question! The fourth year of club programs has Just closed. It started in the year li)30- 31. There have been five programs in each series, with the exception of this last year, 1933-34^ when only three were Issued. ,- The first meeting of your committee this year, January 19, was held at asso ciation headquarters in Washington, as it .was felt there might be records and in formation available there which the com mittee might want to consult during the course of the meeting, also because of the fact that President Trigg had stated that he was anxious for the industry to have as many meetings as possible at associa tion headquarters in order that the mem bers of the various committees might be come familiar: with exactly the kind of set-up that was available to them for assistance in. their work. ' At this meeting consensus of opinion seemed to be that the programs, a-s fur nished the various local associations in. the past, were excellently written, and portrayed in a very good way the national association and Its many activities, bat that. In many cases, the presentation before the local associations was not -all to be desired. ?To correct this, it was de cided to.make/the coming programs ones which could easily be read, or which would merety ; outline the subjects and which could be developed by the local speaker who presented the program. The subject: of "dealers' night" was selected for program No. 1 of the current year, as this type of meeting, which had originated with the Faint and Oil Club of New England several years ago. had proved to be of national Interest and capable of being staged by many of the local organizations. Chairman Stodder, because he waia president of the Paint and Oil Club of New England,-and there fore thoroughly familiar with the details of preparation ;for such a meeting, was asked to prepare this program. It was also decided that a specific recommenda tion should be made to all organizations by president Trigg suggesting that they should sponsor a "Dealers' Night." Attention was then called to the fact that the subject--"Credits and Collec tions"--was one of the most important problems confronting the industry today. After careful consideration, it was unani mously voted tq have this as the subject of program No. 2. T. J. Kenny, chairman of the national credits and collections committee, was i doubtlessly the man best fitted to prepare: this program, accordingly he was asked to do so. It was also sug gested that, wherever practical, It might be well for each organization throughout the country to have some outside speaker --preferably one connected with a local credit association--to be present at the meeting in order to further develop the subject. In view of the fact that program No. 3 would not, in all probability, be submitted to the local associations until early In the Fall, It was fettrthat this program should deal with "The 'National Association and the Comipg Convention," Such a sub ject, it was thought, would not only be a timely one, coming a few weeks before the convention, but also it would do much to make the members' of the local organ ization wish to attend this convention which, it is believed, will be one of the Wilson & Bennett Manufacturing Company largest and best Ion record. It was agreed that George H. priest, Jr., was eminently At the 1934 Paint Industries Show onallfied to prepare this program; sceorafngly he was selected to write it. OIL. PAINT AND DRUG REPORTER November 14, 1934 13 At the present writing of thlg report. It Is too early for your committee to report on the effect of program No. 8. but in. respect to the two other programs, we believe they successfully accomplished their purposes, Already we know that eight local organizations sponsored a "Dealers' Night," and that ten plan to sponsor one next year. Mr. Kenny's ably written "Program Number 3: Credits and Collections," was welcomed by every local organization, and while. in all cases it was not read word for word, it was, Jn practically every case, discussed. _ In reviewing' the work accomplished during the past year, your committee feels that there is a definite need for the con-*, tinuahce of the national ..program com- . mittee, It not only will seek to prepare programs of interest to the JocaUorganlza- tions, but also to develop for presentation, meetings which have originated and have been tried out successfully by many local organizations -- such as the "Dealers' Night" above referred to. In this respect, your Committee would recommend that the newly appointed national program committee endeavor to analyze the work and desires of the local associations, and upon these findings base their programs for the year 19S4-3S. Your committee gratefully acknowledges the help received from the many members of our associa tion who aided In the preparation of this year's series of programs. President Trigg;^Mr, Stodder's re port ' contains a final recommendation authorizing the appointment of a com mittee which, I take it, would be a committee made up of the presidents of local associations. Is there a motion approving that recommendation of Mr, Stodder's? (It was moved and seconded that it be done.) President Trigg:--If there is no' con trary it is adopted. The next item on the program is Dr. Gardners report. Scientific Section Dr. H. A. Gardner:--One of our ac tivities has been to search the world for raw materials that can be used In mak ing varnish and other products of the industry. So this last Summer I went to Brazil to look at some of the products, and I brought back trunkloads of speci mens, ' Some of the specimens are on exhibi tion at the end of the room In the scientific section exhibit. The most In teresting of all Is olttcica oil. In Brazil there are between one-half million and one million ofticica trees, growing pro fusely In this locality, which produce in the Fall of the year, along in November, a fruit which is In the form of a nut, containing a very large.percentage of oil. The trees are very large, growing one hundred feet or more, and having a wing spread of one hundred feet. Some of them produce two tons of fruit, an extraordinary Quantity of fruit. The fruit contains about 60 percent of oil which is similar to chinawood oil, and It appears to have a wonderful future in our own industry. At the present time the methods of crushing the oil In Brazil are rather crude. They have two types of mills there. One is of the traction type and one of the pressing type, and to . date they are only pressing about two thousand tons each year, at the most, and there is very little use for them. They have shipped some to Germany and some to Russia and they have ex perimented for us in shops but without any startling results. The crude way In which they manufacture paint in Brazil has precluded the use of it there. They have experimented with it but usually with poor results because of the fact that the crude or raw oil wrinkles very badly In forming a film. Because of the lack of industrial chemistry they haven't been experiment ing with the oil to find out how It can be used successfully and profitably. "We have found out, however. In the very brief, studies that we have made, that it Is the simplest thing , in the world to treat It, The oil is put in a kettle, with rosin, or a natural or synthetic resin, and cooking the oil overcomes all wrinkly phenomena. Uses of Oiticica Oil - ' That oil (s a varnish oil that can be used to take the place of chinawood or with chinawood oil In the production of Quick drying oil. The amount available in South America will be very large. In. other words, this year's crop is probably the largest crop that they have ever had. They have produced this year something like one hundred million barrets of oil without any difficulty. Heretofore the fruit has dropped on the ground and rotted there because no one took the pains to pick it up and ship it to the pressing areas. The oil, as I said before, is bound to come into our industry In the very near future for the manufacturing of all types of varnishes. I don't say that it will take the place of chinawood oil entirely. It can be used in place of It, and doubtless will be used for that purpose. In some slides that I am showing a little later on I will Indicate to you how it can be employed and the various-products that can be produced from it, , in regard to the price of the oil---It is substantially lower than chinawood oil. There is no duty on it coming into this country and the main producers of it have a freedom from experiment taxea In tact they have a stipulation from .the government that is good for at least fifteen years more to the effect that no taxes will be placed on the oil by the Brazilian government That ia quite a remarkable concession Jn view of the fact that -they do place taxes in Brazil on practically everything that comes in and goes out. It would look as though we do' have, Jn Brazil, at the present time a tremendous, quantity of oil that is very similar to Chinawood oil and so far In experimental work we have found that it will dp many of the things that chinawood oil does. ' As to thB percentage that will be used ---In my opinion it Is probable that three or four parts of this oil to one part of chinawood oil will give us the best results. My idea was to go down there and get the seed and plant-it in this country or another country, but I thought that was very far-fetched because the tree grows rather slowly and takes about fifteen years to produce fruit. It grows in Brazil anywhere, from fifty to. one hundred years indicating the age to which It attains. Nevertheless, I did bring back seed with me, and T have planted it in something like twelve different places, in Louisiana, in Florida, and in Cuba and. Porto Rico, and the Philippines and the Hawaiian Islands, ' In- other words, we have started our experimental planting with that seed, but we must look to Brazil to supply us with any quantity of oiticica oil that we are going to need for at least twenty-five years to come. Since there is such a tremendous amount of that oil available there, and readily available to you at any time you want it, it would appear to ms that it would not take very long to introduce' It into the various formulas which you are using today in the manufacture of coatlnga. I have a few slides that I think are Interesting in that connection, and if you will show them please we will go to that. - (Dr. Gardner showed and described a number of slides.) I think that is all of the slides,' but X have a few minutes more, and In pass ing from thle subject I want you alt to know that you probably .have received this description of this oil In circular 470, sent out ten days ago, so if any of you haven't a clear picture of it in your minds, if you will send for an additional copy I will be very glad to send Jt to you. , Informative Circulars In finishing up my-report, I want to say that we have sent out to all of you as members, circulars which have aggre gated over a thousand pages of printed matter. There have been over twelve circulars during the year of abstracts, aggregating something like four thousand, abstracts of foreign and local articles, on paint and patents whloh have appeared ali over the world. We have also published circulars on the follows subjects:-- . "Oitiolea oil," Henry A. Gardner. r "Technical Progress In the 'American Paint Industry During 1933." G.. C. Sward. ' .. "Monograph for Hiding Power of Paint, G.- C. Sward. "Quick Drying House Paint Tests," Henry A. Gardner and Leland P, Hart. Pigment and Color index." . `Economic and Commercial Factors In the Development of a. Domestio Tung Oil Industry," C. C. Concaiinon. "Mildew Prevention on Painted- Sur faces," H L. Gardner. . "The Fallacy of Paint Formula Speci fications." "Bulking Values of Some-Gums, Resins, Oils and Miscellaneous Liquids." "Some Physical and Chemical Proper ties of Hydrogenated Naphthas," J, R. Stewart. "Plasticizers for Cellulose Nitrate/' A. W. Van Heuckeroth. "Resina and Plasticizers for Cellulose Acetate Lacquers," A. W. Van Heueke- roth. ' "Paint Exposures in Southeastern Flor ida/' C. Hubbard Davis and B. F. Davis. "The Glossmeter," Richard S. Hunter, "Photogenic Spots on Paint Tests," Henry A. Gardner. ' "Panels for Antifouling Paint Tests." "List of Publications. Issued by Scien tific Section," 1907-1934. "Zlno Sulphate for Tung Oil Groves/' Henry A. Gardner, "Effect of Cold Weather upon Paint Films," Henry A. Gardner. "Paint Emulsifiers," Henry A. Gardner. "Spring Painting Jobs," Henry A, Gard ner. "Mildew Prevention on Painted Sur faces," Henry A. Gardner, L. F. Hart and G, C, Sward. "Sun Exposure of Test Panels," O. J. Sleplein." . In passing I just want to say that the work on tung oil is being carried on in Louisiana. A great stimulus has been given to it by the fact that the FERA has recently appropriated a substantial sum of money to plant something like ten thousand acres or tung trees around the Gainesville district. There is also great activity on the part' of the home loan board in Louisiana, in the planting of oil, and they have appar ently put. up the money during the past year to build a chinawood oil crushing plant right north of New Orleans, to take care of the crop of the farmers who have located In that district. They are now proposing to put up an other crushing plant to take care of the crop in Mississippi. So it looks very hopeful that the. ex perimental work in tung oil producing in America will some day bear fruit: This- year there will be only a few thousand gallons, I don't know how many, probably a million pounds of fruit crushed, or at least a half million pounds of fruit, but that Is only a drop In the bucket, we - have got to have at least 60,000 gallons, at least 12,000,000 pounds per year, to do any great amount of good, and that is away in the future. We will get it some day, but it means slow work, and -we have got to be patient until it does come in, There are many other duties of the sci entific section, but I believe I have given you a general picture, and I wish to thank you very much. . President Trigg:--Thank you, Mr. Gardner. Now we will have the report of the Save the Surface Campaign, by Mias Lonore Kent, director. ` Scientific Services Discussed Frank L. Sulzberger:--I don't think that we ought to pass that report with out at least realizing that these things just didn't happen. After all; the men in this room if they look back must realize that the scientific section started out years ago, through the old educational bureau, and in order to protect this. Industry went into the flax seed development. Later on, it was the introduction, of soybean oil Into the-United States, and later we had investigations and the start ing of the growing of tung oil In Florida, and now through the entire Southeast, at all times the scientific section, it seems to me, have been working in new fields, and with new products, with the idea of guarding this industry against possible extinction, and I.believe this in vestigation in South America was just simply one more' instance where the work of the scientific section has been devoted to the welfare of this industry, and Its perpetuation in the future. I think all of us must owe a great debt of gratitude, not only to the section, but to the association itself for being able to carry on the work which Insures the fu ture oi our Industry. ' I don't think that a report ought to go by without at least our taking home to ourselves what.the implications are. Bennett:--May I ask If the circu lar dates may be obtained Dr. Gardner:--The circular does give the name of a producer down there, but there are other producers, and I think you will find several during the next few years, ,, I crushed my own oil down there, and I knew Just- what I was working with, and I brought it back here to establish standards, and. I have brought up ten tative specifications, and I would suggest that they got oil meeting these require ments because practically every gallon that has come into this country has been sour, full of acid, and it doesn't treat properly in the kettle, and it is useless. So, if you want oiticica oil see that it matches these specifications.- I have brought up ten drums with me and that is being processed on a practice scale. I am going to bring posisbly one hundred drums sometime within the next - few months, and If anybody wants that oil meeting these specifications I would be glad to Include it In that shipment that 1 am getting up during the next few months. If you will drop me.a line I will have that Included. President Trigg:--Ia there anything else on this subject? Does anybody want'to ask any ques tions or to make any comments?- The next number on our program is the report from the Save the Sur face department. Miss Kent,'if you are ready we will be glad to have you come forward. (Miss Lonore Kent, director of the Save the. Surface Campaign, presented the following report with a number of illustrative slides.) Saving the Surface I wish it wore possible for you who are present, and for every member of the In dustry; to know, in detail, the great amouiit of publicity save the surface is getting across for the paint industry. Week after -week, and month after month, stories sent out from our Wash ing office-hit the columns of. leading news papers all ovejr the country. . In New York, for Instance, our stories are published -by the Herald Tribune, the New York Times, the American, the .World Telegram, and the New York Sun, Over -one weekend, recently, stories of ours appeared in ail five of these publications. The .&un told :of the wisdom of using at least three cohts of paint. (Three days before the SuH had carried eleven stories released by save the surface.) In the Herald Tribun'p was a story showing how rooms may be made to appear larger by using paint tricks; the World Telegram printed stories about painting exteriors attractively and about the results of color experiments. Jn the New York American were articles : about the proper use of varnish, enamel, and a warning that ex terior painting should be undertaken be fore the weather turns too cold. The same weekend Washington papers also urged the;use of the industry's prod ucts--paint, lacquer, stain shellac, and all the others. The Washington Star carried three stories/ the Washington Times, eight, and the JPost. ten. "No money spent on remodeling/' said one of these stories, "will '.show up more dollar for dollar than money spent on paint," An other urged: : "Keep the house painted to lessen depreciation; don't wait to pro tect surfaces exposed to the weather." Simultaneously on the West coast, the Los Angeles ' Herald Express carried stories about !the new vogue for walls painted in vIVId colors, the painting of new wood, and the importance of paint in connection with proper lighting. San Francisco, by means of the San Francisco Chronicle, was advised that the adequate uae of paint saves billions annually. Four other stories also appeared In the some issue. : They are not special cases--neither are they hand-picked newspapers. Inland cities ana coast cities----northern towns and southern onee--are continually read ing our stprles about the Importance of paint protection. What's more, the news papers are enthusiastic about the stories they receive from save the surface. Re cently we sent, out a questionnaire asking if there were suggestions or criticisms that would enable us to improve our re leases. Scores of answers came in. The aow Francisco .Chronicle wrote, "Your re leases are welcomed weekly and used regularly. They're' swell as ia." The Hartford Times:---"Glad to get your stories. We cohild use more items about a quarter of a column long on the proper use of paint," The Ledger Enquirer papers of Columbus, Ga., wrote, "Wel comed weekly; Used regularly. Good stuff. Well prepared." From the CM9J2P9, Sunday Tribune came this message, ^3njoy your releases very much and use them In various ways." The Detroit News Informed; us, "Your stories are wel come weekly. This paper would not use them were they not appreciated by its readers," From the New York Herald Tribune came this comment, "Keep send ing us stories, t I consider your items in teresting and * use them." in Utica the Observer Dispatch which uses our re leases regularly wrote us, "Your releases are very newsy and provoke many ques tions from our readers/' From the Clevs- Plain Dealer came thfs comment, "Welcomed weekly. Used regularly. They're grand 1" The Milwaukee Journal contributed, "Used regularly. Short stuff Is the best thing we get." Even the Honolulu Star; Bulletin had something to say on the: subject:--`"Your releases are welcomed weekly/' they wrote, "We Use them regularly. Believe .service is helpful in increasing local retail -business." But to bring ithe mountain to Mahomet, I nave broughtjwith me today some slides which will give you a bird's-eye view of opr activities. Dietributrop of Publicity Matter Te first one is a reproduction of a map which ordinarily hangs on the wall of my office. The black dots represent news papers and radio stations that are print ing and are broadcasting our material. There are even more black dots on the map now than there were when this slide was made--for the total of newspapers using our weekly releases has climbed to nearly a thousand. When the slide was Exhibit of Save the Surface Activities 14 November 14, 1934 OIL, PAINT AND DRUG REPORTER printed there were only 06} newspapers on thf-llst . :. ! Nine hundred and sixty-nine newspapers are now receiving and ualngj our weekly releases. Perhaps you can read the headings on some of the clippings pasted on the poster reproduced In the slide. If you can you'll see titles o il the stories such as the one on the lower edge which reads : --"Guard Homes from weather with Fresh Coat of Paint." I There s an other one up there in the left-hand cor ner, "Repainting Gets First Attention --- and other "Painting Leads; FHA Pro gram." A story In the right;hand corner advises, "Your Uncle Sam says, Fix Up Paint Up." Above it there a a clipping headed, "Painted Rooms J Appear in Strlkfng New Colors." ! Here's another slide showing dipping* that have appeared in recent months. Probably you can read the n^mes on thlB slide of some of the papers In which these stories have appeared. YouJll find papers there from the Chicago Herald flaawwwr to the New Orleans Timea-Picayune*^ftom the Milwaukee Journal to the Wash ington Star. Others that appear are the Cleveland PZai .Dealer, the St. Louis FostUisptrtch, the Log Angeles JSsramiuer, the Detroit News, the Milwaukee1! Journal, the Baltimore American, the 'Washington Pest, and' the Portland, Oregon, Journal. That's a nice headline at the top of the sheet-- "Paint Danger Spots Now, Home Owners Are Warned." The picture below that heading showing the danger spots came from otrr office. Some of th^ other head ings on this slide that will be of interest are:--"Painting Must Be Made a Definite Part of Planning" i "Cheap Paints Prove Costly"'; "Paint Protection Need Empha pages of Madam .Public's favorite maga zines she la also told about, paint Magazines like the Ladles1 Some Journal, Good Housekeeping, MoCalie, Better Somes and Gardens, The American Some, Parents Magazine, and others print stories prepared by save the surface. To illustrate the type of .material that appears in these publications here are some excerpts from the story that appears before you. It was published in the June Issue of the Ladies* Some Journal. Under the title of "Let's Do Tricks With Paint," it portrayed in graphic and amusing style gome of the possibilities contained In a paint can. . But underneath . Its casual surface lay a deeper note of warning.. In the cap tion beside the lady, who** looking so hard at the .porch pillar, this admonition appears; "Take a hard squint at the out side of your house. See what .sort of . mischief the weather's been up to. Ten to' one, your house needs .painting. If the painted' surface Is glossy and smooth; you're foiling those home-wrecking vil lains----Frost, Moisture and Sun--but, If, ff.` v Bakers' "Weekly, Suitdiitg and ' Building Management, National .and Ameriaan Miller, Brewery Age, Furniture Age, Steel, Real Estate Magazine, Canning Agei Trained Nurse, Hospital Review, anal many others. In Rural Field* to be- worth.' Today It can1 be- more val uable -than-ever before. - .The -world is full of paint-starved sur faces jind. no .phrase ever written can so impress the public with the urgent need for paint! as - those seven simple words-- "Save the Surfaoe and You Save All!" Feature the slogan in your advertising, on To the farmer, save the surface your stationery, on your radio programs-- addressee stories of paint thirsty barns, of weathered fences and of machinery which depreciate because of paint neglect. Publications printing this material are read by every type of agriculturist-- even on your delivery trucks. There never was- a time when it was more Important or more opportune for the paint industry to. use every -available mean* of promotion. Every manufac poultryman, tobacco grower, wheat raiser, turer--every jobber--every dealer--should dairyman. The frequent releases from Washing he shouting the need for paint in every possible newspaper and magazine. ton are welcomed by the editor* of rural Make Mr. and Mrs. Public so conscious publications, A recent letter from the of that slogan that they realize It's editor of Farm and Ranch, Dallas, says: cheaper to paint thna to procrastinate. --"Thanks for the story. Farm and ' In the good years--back In the '20*s Ranch has been trying to promote the when industry was advertising co-opera use of paint not only oh farm buildings, tively--the annual gross sales mounted but also on farm machinery. We are to 400 million mark. Yet competent with you on your paint campaign." F. J. authorities estimated that only per Clark, of the 5t. Paul Farmer, says, cent of the country had adequate paint "We think your story on using paint to protection at that time. In other words,, forestall repairs is very timely and are there is a potential paint market in this using it in our next issue, We feel that country of one billion, six hundred million material prepared by your organization . dollars. Certainly a market worth going is entirely reliable and is not partial to after J ' . ' any particular brand or concern." F. D. Last year the total gross sales' were Sanders, editor of the Southern Planter' between .two and three hundred million-- writes,. 4Tm enclosing a ' proof of' your a trifling' percentage of possible profits. article Tt's Cheaper to Repaint Than to Repair' which will appear in our October Issue. In traveling through our territory and talking with farmers and' extension workers, .X find-that there is an unusually large amount of repairing and painting under way on farm buildings." Many letters of this type are received. Today, the government is spending literally millions of dollars to make prop erty owners conscious of their .property--to make them aware of the need for pro tecting and improving homes and business buildings. Property owners all over the nation are being reminded every day of the necessity for repairs and Improve . sized"; *'Spend for the Home and Re People who live in rural communities ments. The -better housing program of member Paint"; "Good Paint Adds to are also reached by the national publica fer* a tremendous, opportunity to the Valuation"; "paint Is Urged lor Neglected Homes in U. S."; "Planned Painting, Ex V-tV'. tions of the type of the Progressive paint industry. It isn't simply a ques Farmer and the Parmer's Wife which are tion of climbing aboard the bandwagon, perts Advise/* ; shown on this slide. we can, if we choose, actucSlly lead the Pfc Is very seldom that you'll be able to detect our part In these painting promo So that you'll have a clearer picture In parade! ' mind of the various paint-buying audi- But to do this we've got to focus the tional stories. Sometimes a statement about tha advantages of painting may be ences we are reaching,. I have the save the widespread public interest in housing on surface paper doll* here who symbolize paint . oredlted' to one of the national association the millions of potential paint purchasers That fiieans that every last one of u b officers, but just as often it will be - a we are reaching. . has got to do everything in our power to statement by a noted architect, a govern You've probably seen them tn the save, put paint before the public. -Let's go ment official, or a quotation from a well- known magazine. . : .. . Ghe of tile stories pictured on the slide Befbre you quotes an article that appeared jn the- Real Estate Magazine, It wae the surface display outside. I'm taking the liberty of showing them to you again so that you will be weU acquainted with the methods we are using to reach their ear*, their eyes, and-most important'of out and promote paint with every ounce of our energy. Let's cover America--from coast to coast--from Canada to the Rio Grande-- with "Wet Paint" signs! about* the need for planned painting. We Lonore Kent all their pocketbooks, President Trigg:--Thank you. Miss were-quoting ourselves in that instance, because we'd' written the story in the first place-fbr the Real Estate Magazine. Director of Save the Surface First of all, may I introduce Mr. Home Owner. He reads of the urgent need for paint' protection In hi* daily newspaper Kent, The next Item on the program, which Another story there which Is hung on and In the building magazines. Then, will be brought forward now, Is a ai statement by a leading architect has a rather amusing aspect. The architect in question- made a statement [in regard to the need fbr paint in reconditioning homes. We asked him for a more complete state ment that we could use for a press re lease and' he obliged by sending .us a lengthy written statement on the advan tages of painting. As I read it, I thought, the.copy bad a familiar ring, and reached for' an Issue of the Ladies* Some Journal in which- one of our stories had appeared year before last Apparently, the archi tect had seen It also for he had copied his statement verbatim from iti So you see we sometimes meet ourselves coming back. Naturally ft doesn't hurt our feelings to see our paint propaganda echoing and re echoing in such a fashion, ; When- I read the comments on our newspaper service a few moments ago you ma-v have noticed that some; of them were particularly enthusiastic about what they termed "the short stuff." That is what we call "The Filler Feature," I Every week we send cut several pagea of short para graphs about paint products, their uses, and methods of application^ These have met with an exceptionally warm welcome. VEftcen"tlv a single issue of a well-known newspaper carried twenty-seven of these the gleam has gone out of the paint and the surface la dry and oh&lk-ltke, better call up your painter and have him check. Moisture and Sun may be sneaking up on your pocketbook with villainous glee,** . On the Radio Nor does Mrs. John Q. Public escape paint propaganda when she tunes in her radio. "Here's How"--the new save the sur face radio series--tells her how to make her home more livable and lovable with the products of the paint industry. The new radio series Is designed to be gay, interesting, and thoroughly practical. It boosts the better housing program and urges radio listeners to fix up and paint up. As you know, save the surface releases find favor at 132 radio stations and have been broadcast on the ether waves of thirty-seven States a* well as' seven provinces of Canada. Stations such as WTAM In Cleveland, KDKA in Pitts burgh, KNOX In St. 'Louts, KFI In Los Angeles, and KFRC In' San Francisco, use the save the surface radfo material on thneir hnomemaakers' hnour, as sponsoreda programs, or as regularly scheduled aus- there's Madam Public herself. She's look * ing off stage toward a wall she's decided needs to be painted. Her' decision has been brought about by the ' illustrated feature stories she's read in the news paper* and by the magazine article* that have appeared In her favorite publica tions, Beside her, is Massa Farmer, It a a .long time since his house' and barn ana fence* have been painted, but stories ' he has read In his farm papers have made him acutely aware of his urgent need for paint protection. At the first op portunity he's going to take his paint can in hand. . Then (some* the teacher of home man agement and decoration. Through her we are reaching the generation that is growing up to buy paint. The extension worker beside her is carrying the mes sage of paint protection to the women In rural communities. Next comes the radio listener--she is really "every woman" The retail merchant come* seventh; nes the man who sella everything from f*oup to fish, the man with the small busi ness who need* every advantage he can gain to attract customers. Through news paper* and trade journal* he la Bhown that freshly painted stores attract and hold patrons. . statement from the traffic department, and E. A- Leveille, who is the head of it. will present it. Mr. Levellle presented the subject, which.he will now discuss with you, to the executive committee yesterday,'and after Mr, Leveille ha* made his. statement, then there will be presented a resolution .which was approved by the executive committee yesterday, and. ordered presented to you for your con-' sideration with their recommendationthat it be adopted. Traffic Bureau (E, Am Leveille, director of the traf fic -bureau, presented the following re port.) .. The report of the traffic committee has been printed and is available -for dietributton, and It will not be my purpose to, . time, review that mate rial. Suffice to say the report of your traffic committee will repay a careful perusal^-every annual report contains something of value to nearly every ele ' short paragraphs in addition to six other longer stories that had also jbeen sent out by save the surface. ! With Better Housing Naturally you are interested to know taining features, Color Magic" and "The House That Had Its Face Lifted"--previous radio series--are now In printed form. Many dealers and manufacturers have found in them material useful in the preparation Bealde him, are the shop foreman and the industrialist To them, through trade journals, we are preaching the advantages of well painted plants as a means of Im proving lighting, employee morale and the products manufactured. . ment In our Industry, and this one Is no exception. There ia, tor example, the paragraph noting the extension by the Railway Ex press Agency of "Pound Rates" to ad vertising matter, that presents oppor how we are co-operating with the better of advertising copy. ' housing administration program. Since long before the President signed the na tional housing act we havej been talking about the housing program; in our news paper releases. We wanted! the public to think paint every time they thought of the housing program or read about it in the newspapers. ; Extension workers use "Color Magic** and. "The House That Had It* Face Lifted" as handbooks in their work. Ex ' tension workers are those indefatigable servant* of the Department of Agriculture who devote their time to teaching home makers in rural communities how to make their homes more attractive and' When the housing act was signed and more convenient the organization to promote it became a reality, we offered our co-operation in the fliarm of stories that would Be suitable for use in the various publications of the Fed eral Housing Administration. Teachers of home decoration in scores of colleges and high schools have written us how useful these two booklets are proving in teaching home economics and home decoration, .. .. To date- we have supplied FHA with ' With all our aiming at home owner* more than 300 stories of various lengths and homemaker*--we never forget that about the- part paint playa In the remodel there are lot* of other places to put paint ing of'homes. Some of these stories have besides on the dwellings of the country, been* Incorporated In the imoderntzation -Factories of every sort, shop*, hospitals, clip-sheet which goes out from the Fed plants, department store*. eral'Housing Administration headquarter* every week to more than 3,500 news papers. Palrrt has been mentioned more than a hundred times in Ithe first nine issues-of tills publication, j We pick out the leading magazines in a field, write the editor a letter, suggest ing that we do an exclusive Btory for him that would be of decided interest to his readers. Usually editor* are In Other ' material of ours . has been used - terested and we proceed with the work. in -the publicity portfolio which Is used In ` Everyone in a given Industry, however, community campaigns. There is for in does not read the leading publication In stance, in- this publication, a story that , his field--even if it has the largest cir advises,."Paint Can Lead toJBig Savings." culation--so we prepare a h b w s release, In the property owners pook which is now In the hand* of millions of people there are more than a score of references built around a statement regarding the advisability of painting by someone prominent in that field. This we send to paint and painting. Still -other material out to the other magazine* In that par supplied' by save the aurfac has been In ticular Industry.. . corporated" In stories released by the Fed eral" Housing Administration to trade papers- and' farm Journals, j Bat' we dbn't spend all| of our time In this way the retail merchant learns that making hi* establishment attractive with paint will bring customers to his door and will give his sales-prospects the writing-about the importanpe of paint as impression that his jnerchandlae is clean a protective coating. There is that great American buyer--the housewife--to be considered? While It is true that women are deeply interested in economizing and In- protecting their property, the subject that lies closest to a woman's heart when she thinks of her home is! how she can make that home- beautiful +j.nd attractive to her husband' and family; For Madam Public we prepare stories that tell of the magic contained' in a can o!} paint. and desirable, .- The foreman of a factory- discovers that workers under his supervision will turn- out better products--will .work more cheerfully--that there will be fewer acci dents--If the walls and machinery of his workshop are carefully coated* with paint. The industrialist is-shown that .he.will save money by .getting' paint Insurance for his property and will.earn money aa a result of improved product*. Co-operation in National Movement* Save the surface also co-operates with other groups, such a* the better light-- better sight organization. The importance of wall coatings in light reflection le one of the points stressed in the publicity of this group. Save the surface has sent out releases pointing up the Importance of painted walls in connection with adequate lighting and at the same time boosting the better light, better campaign, _ ' Another group with which we co-operate Is the master painters. The Importance of ouallty workmanship--as well aa the wisdom of using quality products--l* con stantly stressed in save the surfaoe news releases. The Internationa! Society of Master Painters* and Decorators' knows and appreciates the sincere efforts save the surface is putting forth to co-operate with It* member*. * The painting promotional plan, evolved by save the surface to stimulate business getting activities in the rank* of the master painters, has received the hearty endorsement of the exeoutive beard of the International. It is now being presented to the Individual chapter* of the organiza tion for their acceptance. The booklet* pictured on this slide are part of the plan. At present save the surface has in preparation a booklet which will, - show master painter* how -to promote business by placing publicity stones in their local papers. Another booklet which save the surface has prepared Is called- "Faint In the News?' ' Up to now, publicity about paint and painting hns all gone out from Wash? lngton headquarter*., The booklet shown on this slide, "Paint in the News," pre sent* a method whereby the barrage of nub'lelty that is being released flrom `Washington can be reinforced by local pub'fdtv, placed by individual' members of the industry In their respective com munities The booklet may be obtained1 hv wrltltw to Save ,the Surface Campaign', c.National P*>tnt, Varnish and Lacquer As sociation, Washington, D.' There In' the center of that slide--on* tunities for Interesting economies to those who distribute printed advertising mat t A systematic cheok of your practices In this respect may yield savings of hundreds of dollar* by utilizing the now less expansive and equally effi cient express service--we.-therefore, re new the suggstlon to obtain a copy of the annua* report and take It home for careful perusal. ^our committee has in previous annual reports, and again In this one, referred to a reduction in the costs of distribu tion of the products of our industry mode by the rail carriers. far the express pur Pose of inducing greater utilization of railroad facilities. Your co-operation In this effort has. been urged, and it is gratifying to report that it has been gen erously given. The successful achieve ment of real co-operation between two major Industries, even In matters of re ciprocal or mutual interest, is attended as you know, with difficulties, and your traffic committee expresses its thanks to those elements in the Industry who have ao generously contributed to-the success of this movement. The railroad*, thematlY*a> entertained some doubt* of the ability of any organization to Inspire the spirit of co-operation in its members: and to facilitate a check on the results of your traffic committee's activtles, the railroads first published these rates ex perimentally to expire June 80,'19fi3: ex tending the period firat to December 31, 1933; then to March Si, 1934; and later to December 31. 1934. The attitude finally taken by the East ern or Official Classification lines remains to'bo determined, but the Western lines, January 1, 1934, eliminated the expira tion date from their publications and have adopted fourth class a* a permanent ad justment Your committee is informed the Southern lines have recently taken similar action so far as the rates within their- Jurisdiction is concerned, and this actfon win presently -find reflection in thefr published tariffs. We have recently been Informed, since the preparation of our'.aimual report, that the Eastern-line* have voted tor further extend the expire- These - stories- are niustrdted and sent - During the past year save the surface the cover ' of the booklet--is your out in mat' fbrm to the seven hundred, stories have appeared in more than half '$7,000,000 Slogan, newspapers that use- them; iThey tell how houses can be made- more [beautiful and a hundred publications. Here are some of the trade magazine*.:-- . Value of Slogan attractive by the use of lacquer, enamel, Factory Management end Maintenance, Seven Million Dollar*! That's what ad -water paint' and' varnish. , Through the Mill and Factory, Confectioner's Journal, vertising experts have figured our slogan jVovemfcer -14, 1934 OIL, PAINT AND; .DRUG REPORTER aarned mark the iIn'ftaijutrguurara.tluooiinOtfoa*pe*reioladtl,<o>nf B mtsbgmrnsxi- mittee believes ^ ^^nduBtrU*;We -r tonnage ana reveiiH,fLi. anfj secure for oiS*nd^yT^eraWTMt"'nt dsslenea recognized that further ssmmsms&increases to rates wni! d oarirtws and. re more money rai be taken out-of railway than ia nut into them, and with S2ISSSit -KhimSof tonnage offered for transportation less than SO' Pfreent .j nsLf'ifv an increase in charges for services rendered is the only available means for securing the revenues absolutely essential tyheaarstaarliuffmpfnuubmlishpianigntsagweenrte. For majjy specIaa^Uy rated in the classification, but October 20 1S32. this designation was dropped and aluminum paints have sines tben b|TM, described and-rated as Jfalts, 152Iv.!',%r The Inetusion of these finlBhcB in tulk in barrels'' and the omission of boxed, cans" gave rise to differences of interpre tation that have, in some instances, proven vexatious--and certainly w^reunnecessary. Upon the matter betas brought to the attention of your committee, it advocated and secured elimination ot the n?'Mlooni''ftiiiannad.b]einiteOmfflfdroaml Cthlaessliisfict aotifoenxcteepr- two zones, Western Trunk Line anc Soutbweatfern, Freight Bureau territories Soutnwestfirn Freight Bureau territorj embraces the States of Arkansas, Westerr Louisiana,' Oklahoma, Texas, and parti of Kansas and Missouri--and Westeri Trunk Line territory is generally tha section north of Southwestern Freigh Bureau territory. These are two in dependent; jurisdictions with differen physical transportation and rate condl dons. Many descriptions of traffic an rated lowdr in the West--a circumstanci neoeseitatlong a different treatment o: our situation there . , . March J., 1334, Western Trunk line: to maintenance of this essential service. authorized) fourth class rates for wax o j aTM^aph^l! S& justments, "'^{.^tune004* to the pediment, and proviame ^ markets, broadest an<Tprosperity of promotes theiW":increasing safes our -membera--and oy_ > nd reve- voiume. t!;, ETa^SDortat!on, in turn, nuea requiring tra po the raU- oontrlhntes to the ours;-servln| roads. To an industry un ^ajustment nation-tvide marketa, f- gut a schedule is of prime Importance, iiu useless of advantageous rates -worn rf raUways without an adenuate W " ( efficiency, operated with a hlsh degree SM,lona The most significant indication of the nlleht of the railroads is the statement in their petition that they are JVw* iS*TM?5? a fair return on the value of' their Pj-oP' ertyr which the law contemplates they should have, but only such reasonablei in creases in tiieir rates and chargest as"wJHj taking into consideration prospective in creases in volume of traffic; enable them to meet in part the increases in their operating expenses chargeable to the InSFeaae in the level of wages of railroad labor and net unit prices of "Aerials- ana supplies, which increases in their operat ing expenses reflect the economic Policies oiT the government It is further repre polish in that section of their jurisdictioi lying generally east of the Missouri River ---Wax oripolisb, automobile, floor, fund ture or vehicle April 1,-19S4, the following items weri added to i the paint list;--Turpentine titanium dioxide. July 1, 1934, the Western Trunk Lineauthorized rates 72 percent oc first clasi on furniture and other polishes in th< western half of their jurisdiction--genet' ally that section lying west of the Mis souri River, including the Kansas-Mtssour. section, and were joined by the South western Freight Bureau lines in- making this basis -available generally throughout fatten sented that the railroads cannot, ny in the Southwest. ^iouWncVcrdition of <"* creased savings, in view of the various restrictions imposed upon them; effect \ Roofing Cement economies in addition to those heretofore The preponderant volume of roofing rTUs situation, PlattsPfmpo^nce,6 & effected, which will materially offset in cement is * distributed in bulk packages, sLrd3'uTMtt0fEoryoS clnlwsration the rea- creases in their operating expenees which will result from the increased cost of labor, but there Is some demand for tin, and in these packages roofing cement has always ^itS^iu^cethis.belief materials, and supplies. Considering the been rated] rule 26, fourth, and fourth; in 7110,000 men already furloughed and the official, Southern and Western classifica Financial Condition of accumulated millions of deferred mainte tions, respectively; except plastic roofing nance and the financial results of opera cement, w^ieh has been rated fifth class For the past f""0iCatou3Oand continu- tions for July and August, this is not dif in Southern classification for many years. have sustained a PJJj revenues and con . JSe decline in luting income. ficult to believe. . ; Our industry in particular, and business Recently, the Southern Classification Com mittee prdposed consolidating the liquid affluently ftwa six billion dollar Revenues declined " 8 and net men generally,, want the railroads, and in tact ali transportation agencies, to be privately owned and operated, and recog and plastic items and incidentally increase their rating on plastic roofing cement ic boxed cand from fifth to fourth class. Ob nize that it is impossible in the long run lor privately owned transportation agen ` jectlons tq -the increase were interposed by certain roof coating manufacturers cies to be successfully operated and main who have some sale^in these packages tr. -drastic msgg&sg aSndSstmru*cTMtubreUs a^"J^.,,"Ji"snnougdholl.ators,mtohset tain dependable service unless they enjoy a fair degree of prosperity. Ho your com mittee purposes to accord the petition of the railroads for increases in their rev enues the active support It deserves---and we urge those elements in the industry E. A. Lfeveille Director of Traffic Bureau Southern territory, and their objectione were preselited to the Southern committee But after consideration, the Southerr .committee I concluded to proceed with th* revision--As proposed. The SoUthern committee advises then The interest on ^&2"ST?o"`Mon in million dollars in iSSZ.ano. " ^ months Teas operations for the first nf if 1934 revealed a b t J11//STMnt to net, O%f 1$3^3enret i.n fsroe a>n"d,4' 6^vVeirntagg ffilxjTMea sJ -TMroveer?uriEoml.s.ine- who have so generously contributed their toAnase in th! past to"continue_to do so. ana everyone.to cooperate, at least, to the extent of .patronising railroad facilities. There is probably no single thing that would contribute more to accelerate re covsrVt than finding the solution to this ritorv this action was taken, as staff*' December 1, 1983. Similar action was recently taken by the WasteTM the same reasons, but has not yet been PUtfebruary 1, 1834, Official Classification Ita^hauthSnsed the addition o the is no valid reason for differentiating be tween liquid and plastic roofing cement and continuing a preferential rating as tc the latteri. Official and Western Unej maintain the. same rating on both, anc there are ho known conditions in South ern territory requiring different treatment charges charges m i aTMement en- railroad problem. Second, the proposed rating on plastic In x*f tatotthbe^twweecenn tthnee Rallway^Uahthoer If the railroads could be made pros perous. they, in turn, could go a long way tin Is. they point out, the same rating car* Tied in other territories without objection Executives' railways, pursuant to toward because pulling under. uesx.iso.tuin.t. gofc__ot_hn__dis_i_t_iod__ne_sp_,resesvioenr-y, procedure' provided for in ^*Tfs in. ' SodaTM the "ratircads"ttSco'ta "wBl be spent mltaf'canTta^afreto or boxes or In hulk In kite or palls. _ ,, , ... _ for manyiyqars. They can conceive oi no Juetlfication, they say, for continuing to rate plastic roofing cement in tin. lowei labor act, the basl rSt^S,vI ?nw 1, 1934; (or labor, materials and supplies, and V/1U than solid, asphalt, liquid asphalt, pitch, creased 2-5 Percent',eTM^,arvl 1936 ; and not go for dividends on stock, as Oie tar, red lead, asphaltum or coal tar paints ^ utreent additional Jfbu,ary,]$e result is ,o2-opcpibecric.eent AAbprriill j1a ,,..19W3&^. pL^ LsS'*e1Cal aTo?f 4S93A0.-- Rti increase in and* increased amount of the Increase w 11 be needed, and even more than this will he needed, to maintain the properties, We are on the threshold of a new eraof railway transportation. The experi ,,-SM,e4",slsSs was omitted from the original list: or ESlnV EStlnSkl^ --comparable commodities. It cannot b contended,! in ttietr opinion, that fourth class rate! as such, on plastic roofing cement is hot a reasonable or low rating. They propose to continue fifth class in .SSKStfSS ^"thtCLTtacreascd op- ments now being successfully conducted bulk in batrels in drums, the latter desig with light weight passenger trains made nation embracing the small five-gallon 2iU`5SS" ? Irhighsr piSefTf . level Of waf SSiu^ materiale e-hd mtlllon. for mate- lara for labor and 137 93. million. Tlalg and aupplles^-a i million, and an -With A*:aJ2tiriSiJ^SOperating! tao e estimated net rauww^. are-again con aheftdt rf 53 mfllion doUars fronted with a dencit otu___ third puc- for the calendar \hev have failed to SLive y^^Jh^StanfcAonsh to cover arn from their operat atid tn- their pperattag expenses^d aeflclt reflects terest t Ana this est wage increase only .partial fanning July 1 for six months seginniuB . rBLroad The flnancIal BituattontOf "5i0ra eeri- of new alloy steels, and their propul sion by electric locomotives with power generated by-improved type die 1 onburning engines are very aSgnlflc.i.jt. it has been found that this new^equipment is faster, safer, more comfortable, and more . economical, than their present facilities, and purchases of new equipment alone will afford employment for large amounts of capital ana labor; not to mention the vast amount of deferred maintenance to be done; awaiting only improvement in finances. (The printed report of the traffic com mittee on specific tariffs was as fol lows.) . there' is & movement,in^boxed can*^oi interest to some of our members, putty steel package extensively used in our trade; and eighth class in carloads, with a reduction in the minimum weight from was added to the list. 40,090 to 36,000 pounds. The fifth class May 1, 1834, the following vaa added rating in bulk packages, lesa-carloads. It to the patat listBster gum, in barrels should be noted, Is lower than carried Jn or boxes. ...... either Eaetem or Western territories-- May 15* 1834, the addition of the fol ' the lines in both these jurisdictions have lowing description was- authorised, by official linesEarth Pa,bt5_aGf,'nJn, . rated roofing cement In bulk packages fourth class for many years. cans In barrels or boxes; In bulk in Kits or nails or .In paper.bags, -Bubiect to rule &ry Earth Pigments 40, Section 10 (c) of official elassffiwttion^ The Eastern Commodity Kate Revision titanium, barlum, base Pigments, titanium Committee; with jurisdiction over the calcium, base pigmenta, in cage oc commodity, rate adjustment In Official Classification territory, docketed for con . June .29, 1984, Official Classification sideration 'a proposal to group dry earth pigments dnd assign to them a column oariers of th ous aB thgr ara willing to admit ^carriers have for PdbUcation. inTM which may he xeachcd the llnflt of ^t | nd. tllay fcava safely chargHd taf s"yic,l^t ,, expendi- 'Traffic. Committee Report ' October 1, 1933, Official Classification lines added the following commoditise to the "Paint List" for which fourth clo.es rates 0 percent of- first class for lw* carload movements--a reduction nnints--and 40 percent for carload move ments A request to add aluminum basis in lieu of the prevailing commodity rates and exceptions to the classification. The considered, pigments are: Ocher, mor tar color, ground iron ore, oxide of iron, barytes, silica (not silica sand), whiting, obvlouBly xb*?$ebclnourred lot operat-tures which may_^ authorized loans to ing expenses ^TMle ,y b Beconstructton rthe railroads . by t -pwr* aggregate Finance Corporaticn a|Bfl |ow 4421,700.90(1, an* It cannot ^ ^ :many recelvershlia h n may ),, ls- SS-V men' rates are. authorized:--Linseed oi), oil compound, white lead in oil, zinc sul phtde. December 1, 1988, aluminum byTM" gold paint. In barrels, was eliminated from the list of exceptions, allowing these finishes to be grouped with and rated as -paints, NOIBN." The Inclusion of aluminum, etc.,- paints. In the bsA j'SSfof tlons. was an Inadvertence on the part of powder to the lower r&ted paint Hat was declined, ,. September 1, 1934, tariffs were amended to add bronze powder . to aluminum powder, , Western Classification territory Is gen- erelly that section of tha eountry JyJjW west the Sottaaftteet-h-eoo- ff MlsslsalpBl Blver.Jnc9iiata -WisoonBtaTT-subflmaea into gypsum, clay. Column 20 rates, equivalent to 20 per cent of first class, was suggested, sub ject to a minimum wefght of 40,000 pounds. Ocher, mortar color, ground iron ore, and oxide of iron are rated fifth class in Official' Classification, but sixth class (27.5 percent) rates are authorized by ex ceptions, apd.. on ocher, and some other descriptions 'there*'Are' commodity rate$ on an even lower basis, but few so low as the proposed class 20. Ann Afbllrr55l1T2!lB5l<w^Co'mpany. SkAKkteiTMan,dn&^^aSall- 'rFtari(ta IE^t Coast Hallway Company. IIS!!Mm, ..il - Barytes, silica, whiting, gypsum and clay are rrted sixth class, but exceptions authorize lower rates, namely;--Clay, 22 .percent; silica, 22 percent; barytes, 22.5 percent; gypsum, 23 percent, and whit ing, 25 percent--although, as with ocher, there are commodity rates established re sponsive to- the requirements of particular conditions,. The 26 percent basis on whit ing and 2JL-5 percent on barytes were es tablished March 1, 1933, and June 1. 1934, respectively, sifter conferences with interested shippers. According to our investigation, the sug As a result of bb,tars^on-ttc sSSS i: present level off- wgn* . falil aeven 4 ueamrn r^evveennnueeBs ^suuffffiiocient to paYy jm -im whose earnings nC7ft .! :!!, I -- 1,1 -..ifll 1 si. ' gested class 20 means widespread reduc tions, but; upon consultation with . the traffic officers of the carriers, it developed that class 20 was merely put forward as a basis for discussion--that they were not committed to this basis, and their own Investigation Indicated It to be too low--that class 22% or posisble class 25 would fit the situation more closely and rsum, ' Tonnage Needs of Hallways j", -Rfl.nwa.vB could handle at leant t the ' volume of business currently .-a substantial operating 'PTM2**^Se*n?- ' SpMtaSg ? i ftJi would be considered. Attention- was directed to the omission of the designation 4'Dry Earth Faints carried by .official Classification lines in their tariff^ for many years, it describes a combination of pigments and colors of comparatively low value, produced and distributed in volume throughout the ter ritory, and failure to include it in the tariff description would, in our opinion, impose nuifcerous increases upon these comparable) products, We urge that re* gardless ofi the basis finally determined upon, the [tarlffl. description be broad untfl the year 1932. . . American Cyahamid a^d Chemical Corporation ened to Include dry earth pigments. The entire subject is receiving cl0|c analysis :by the Eastern committee, and has been .continued on their docket from time to , time without conclusions being reached. It continues to have the active attention ^ucrcf^ ,Svatr*ffio At the 1934 Paint: industries Show ' of your traffic committee. November !4,\1934 Lacquer Solvents The question of the classification of lacQuer solvents is revived by a sugges tion initiated by the classification com mittee to eliminate "lacquer Solvents, not otherwise indexed by name" from the classification. Point is given this sugges tion by reason of the number of agents now being marketed and sold for use in the formulation of nitrocellulose finishes. Butyl acetate, butyl alcohol, ethyl ace tate, amyl acetate, and the secondary al cohols and acetates, are specifically in dexed by name and assigned appropriate ratings, and this is also true of a number of plasticizers--but the unceasing, search for new and better solvents, and each al cohol company makes one or more, leads to Innumerable combinations. The desig nation "Lacquer Solvents, not otherwise indexed by name" embraces these, and was added to the classification to sup ply a specific and appropriate description and has served a useful purpose. Ita elimination from the classification would revive the confusion and controversy over whether a product is to be described and rated as chemicals, pyroxylin solvents or reducing compounds, prevailing prior to its introduction and make the problem of description and rating more complex. The addition of "Lacquer Solvents" provided a description that conveniently and com pletely identified the product and has been a source of general satisfaction. While perfection in the classification Is probably unattainable, thfa particular designation has, since Its introduction, served its purpose admirably, and your traffic committee hopes to see it retained. In W.T.L. Territory By a communication received from one of the large Western Trunk lines, and consultation with representatives or oth ers and also the chairman of the Western Trunk line committee, we are advised there is to be a revision of the rates now published in their tariff No. 60, from and to points in Iowa and northern Mis souri on the one hand, and stations in Illinois and Wisconsin, and St. Louis, Missouri, on the other. This particular adjustment is a reflection of the influ ence of the Twin Cities adjustment, tbe fourth section of the act to regulate com merce, and the competitive urge to main tain open routes tor participation in all available tonnage. Undoubtedly, many of the points of origin shown do not ac tually originate our products In carload lots, and this is true, although probably to a lesser extent, with respect, to the destination groups. The carriers feel, and it is obvious, that the adjustment is badly in need of a thorough revision so as to bring their tariffs and rates into conformity with the needs of the industry and the requirements of the interstate commerce act both as to publication and application. In examining this situation it is apparent that commodity descrip tions specifying the items that may be moved in mixed carloads at rates pro vided. are entitled to respect because of their age; but, on the other hand, a thorough revision may be expected to be mutually beneficial to the Industry and to the carriers. The matter Is receiving attention at the hands of your traffic committee. Rates on Advertising Matter The action of the Railway Express Agency in extending the benefit. of 1'Pound Rates" to printed .advertising matter presents opportunities for Inter esting economies In the distribution of printed advertising material. The different methods used in con structing parcel poBt and express rates make it impossible to lay down any gen eral rule--but it is probably true that for packages up to 26 pounds each, parcel post has, and still does, offer more eco nomical service; a situation that has probably resulted in the use of their serv ice for heavier packages that might have been more advantageously handled by empress. Since July 1, 193-4. however, the differences are more marked--a 40-pound package from Chicago to Buffalo, for which the parcel post charges 51.47, and the express formerly charged 51.39, Is now reduced to $1.18 by express. On 60 pounds the respective charges are $2.17, $1.91, and now thB express charge is 5L77. While these savings are not uni form to all points--to some greater and' to others lees--members who distribute any considerable volume of advertising matter will find it to their advantage to acquaint themselves with the new rates available for their particular movements sine July 1 via the Railway iBxpress Agency. ThiB Is a new classification for advertising matter, and It is published in supplement 2 to-official express classifl catian No. 32, effective July 1, 1984, Correspondence . . Our volume of correspondence with the railroads and with our own'members con tinues undlmlnlshed and affords .many op portunities to advance the Interests of our industry, your committee Is .gratified to avail itself of. The carriers are con tinually receiving suggestions for changes jn their rates, the proponents of some'of which offer nothing in the way of justifi cation except that paint Tates are ae- -corded a defined basis, and the carriers naturally solicit the views of -the indus try. . The additions, eliminations, and changes in the articles contained In the "Paint List" for which fourth-daes rates have "been authorized, sometimes perplex our own members whose interests often re quire specific and .-authoritative informa tion: it would be tedious and nmprofit- :able to incorporate In this -report -any 'detailed account of this correspondence-- mention will be made of only two:-- ' One member submits a proposal to add calking.compounds to .the Hat of accepted roofing materials for which special rates vara ..provided. This proposal was ifansmtiited to the. members of your traffic 'committee tor. examination,jaRd it con cluded the proposal net sufficiently inter -eating .to the industry to warrant -Inject ing the association into the -roofing-mate rial adjustment. . . . '. ' Another member, noting thn compara tively large number of jtems in the "Paint List"' In offkshd''territory, augwed rttte propriety: of A' uniform Hut'in .-Bdlseiritoriefi..-; The sraggeetlaa- t w *s mare- fully explored, and it was found that the respective lists were fitted to the rate conditions In the several jurisdictions and that a uniform list of exceptions would conflict with the classification and operate to the detriment of both the industry and the railroads. Roofing cement affords an interesting Illustration of this diversity of classifica tion ratings and, their Influence on the list of exceptions. When packed In metal cans in barrels or- boxes, roofing cement is rated Rule 26 in official' classification-- rule 26 is:an' intermediate rating between third and fourth class----and Is therefore included In the list df exceptions for which fourth class rates are authorized. In Southern classification, on the other hand, roofing cement in these packages is rated fourth class and omitted from the ex ceptions for the same, reason that Roofing Cement in kits, palls, or tube is omitted frm the list of exceptions in official classification territory^namely, they are accorded fourth class rates by authority or the classification itself, and It would be a duplication to include these items in the exception sheet. Moreover, there would be some disadvantage because tbe rates authorized by the exceptions are not f+lTMt3^foJ^.claes' aTld to include these items m the list of exceptions would In crease the charges for services. This Is even more pointed In the case of Jn ,,bullc ln barrels in classification because there Roofina Cement Is rated fifth class, and sioSStmn nc,I'aei j th!s i(<TM in ths ltBt o manspyortatlo^rCent ln the char!fes for TM.Li(lli01,0,s? J. another example--lltho- *2atL cJaBS ln Southern classification, and there Is no occasion for m?u,2i1HIt.thDpns,ln ths !tat of articles for which fourth class rates are author- Ltlsslttm6 C ^ Southern Asphaltum or eoaltar varnishes ln palls m 1 ,!Kna ,n barrels or boxes or In ?% ,kItS ?T PI115'. 01(8,1 thlrd ala*9 m Southern classification, are carried In the exceptions at fourth class, while the Wm deaerfptlon ,n.buIlt <n barrels, rated Jm/n-oa0 ?3s?n.2oa(!iern o'&sslficatlon, are omitted from the exceptions for the rea sons already noted. Similarly, white lead In oil, zinc oxide, Sfmemd l7enJS' Put(Jr- a"d other items are included In the exception sheet in one territory and omitted in another. The requirements of the act to regulate FfihiSerS t0 str,c(13r adhere to the pub lished rates necessitates considerable care adding- to the list of exceptions Items which do not belong thei e, as was done ln the case of alum!n}Vn Pftibts, which we have already con sidered, and other Instances. An Additional Service These developments and others dealt Eiiii+i111 ur aima! r*Prts and traffic bulletins have an Important bearing on "52i Ce?.stts vSK, MSfljmWing raw materials and distributing finished products, and are intricate enough to require more for their assimilation than most of .our mem- devote; To the larger units ln the industry that maintain organized and equipped traffic departments, the protec tion of their Interests is a matter of rou tine---but to care for those of our mem bers not bo equipped presents a problem solution or which we have devoted i&ouh 37 hav* sought by means of traffic bulletins to keep members in formed of changes in classification and rates, but our correspondence Indicates jven this excellent medium leaves some thing to be desired. The desirability of extending the scope of -our activities somewhat has been sug-, gestea---offering to members a service for the auditing oi their freight accounts and otherwise supervising their transportation interests to assure the reception of the benefits of the rates published for them by the railroads and of the activities of the association^ traffic committee, and, incidentally, recover overcharges. It la believed the more intimate contact such a service affords would Increase the com mittee^ knowledge of the problems of the Industry; and the association's opportun ities for valuable service. Railroads Supported President Trigg; Mr. Elton, win you read the resolution? . Secretary Elton: The following reso lution was considered by the executive committee and is referred to the con vention with recommendation for favorable consideration;-- Whereas, the operating revenues of the railways have sustained rapid and proEressiye contraction from approximately six billion dollars In 1929 to three billion dollars la 1933, and Whereas, this has entailed a reduction m expenditures for maintenance of the properties of approximately 760 million dollars per year, aggregating In the last four years three billion dollars, and Whereas, capital expenditures have been reduced from an average of 787 million dollars a year for the five-year period sbdlhff with 1929 to a minimum of 104 * dollars for 1938 and an average of 376 million dollars for four years m3` an aggregate of $1,642,611,000 and Whereas, the number of employees has been, reduced almost 700,000 from 1,660.8E.f 1; 1929 to 971,196 in 1933, and not withstanding these drastic economies and others necessitated by the severity and duration of the depression, the railroads, as a whole, have been unable for the past two years to earn from their opera tions 6nou*h t0 cover toeir Axed chargee, Whereas, because of these conditions^ a number of Important carriers are in the trustees or receivers, among which may be mentioned: Ann Arbor Railroad Company. . Central of Georgia Railway Company. Chicago ft Eastern Illinois Railway. Chicago, Rock Island & Pacific. Rail road Company. Florida East Coast Railway Company. Georgia & Florida Railroad. . * Missouri Pacific Railroad Company. Mobile & Ohio Railroad Company. New Orleans, Texas ft Mexico Railroad Company. Norfolk <& Southern Railroad Company. St, Louis, San Francisco Railroad Com pany. ` . Seaboard Air Line Railroad Company. Wabash Railway Company. And. Whereas, the railroads are now Indebted to the United States Treasury by over 400,000,000 dollars, and Whereas, the increase ln operating ex penses due to the- increase In the level of the wages of railway labor, effective July I, 1934, and the increased costs of materials and supplies necessarily used In their operations, the prospects are that they will incur an aditlonal deficit for the calendar year 1934, and Whereas, to await Improvement in the volume of traffic and demand for trans portation that will enable these railroads to earn sufficient revenues to pay their operation expenses, taxes, and interest, is to invite widespread insolvency, all of which retards recovery, now therefore be It Resolved:--That, subject to an equitable distribution over all industries, the Na tional Paint, Varnish and Lacquer Asso ciation express to the Interstate Commerce Commission its view that some increase In rates and charges Is necessary to enable these carriers to cover part, at least, of the Increased expense for labor and materials already referred to and should, and we are confident will, receive the careful and sympathetic consideration of the Interstate Commerce Commission. Tariff Activities Dr. Gardner: I will not read this tarlfl neS?.1"t,i *UV 1 ?'111 JUEt s)ve you the high lights in about two minutes, : < As you Jknow the President has been given authority by Congress to negotiate reciprocal ; trade agreements with othei fSSSSSSi 1 T*tat is taklns tbe Tariff commission the powers they had, and they PJiW1 01 in the bands of the President And his committee. , So the first step Is to have exploratory ^?a tWltb different governments. k * IooIc8 a3l . such negotiations J* bCc^8efu1' ^ psldent then makes a public announcement to the effect that negotiations will be carried on at hearings with these countries, Jhf however, are not public t:!?y *" Private hearings, and will hyt,,n1hf:e yoa wiil ever Set of them will be In the newspapers. at^1.aw?pf?!r ttaokJ of 11,838 notices win0unraiythinEt?? headquarters and we through our bulletin so you will bo in touch with them, hJ. y+^ur*ifre interested in presenting a brief to the effect that certain products vXJSFifiJi1 ^ %nain* Int0 this country in should be presented before that steps which you take P^pare such a brief in six copies and nave those copies signed ln the presence of. a notary pu&c S * * ^ uose_copies should then be taken to 'W^sljington and filed before the Commit tee on Reciprocity Information. We will iVe Qv,?ry*,*ladJnfiftd t0 fil those for you an tlj* if you will forward them to interested?^ 3ubJect which you are v;L?u Relieve that you also should be rrtHei3+ at' hearings in person, in yoUr brlf yourself! or of that brief, the steps you should be in the forin of a letter addressed to that same committee- 0r,E&n' jeCosmtimnitgteethoantRtheeciyprgoicviety yIonu- a definite appointment, so that you will ow i when to be there to present your elde of the argument, ,11 te highly necessary that you yourselves, If you have something of great importance. For instance, the committee on artists colors and the committee on artists canvai dvTM-bcre and w* hl Sam S and file briefs, but wq thought it verv important that they should personally ao- doheeo. oh^lrmen 0( t!,ose commitees have rti.w?8- clbcr matter Accomplished on tariff S tS-cmt0iDyf,liamrh*wnaasoUt'orsohuuntdoWutitthheIbSimS t ?thKiis?ecroceunn.try wIiKthboopuot ndeu, tya.ndBuCtombylnlar!inntn'- brought In 1,Uthopone 11 Was Omt^sn tl.t Si, We. have .put a stop to onnow th * that practlca 13 not gbin^ ?TMm?n"ieIon thls 5'ear was a ve?v re?ee^r3bie Mnait!'TM thTMc&y Is in th? S11*4 tarlf rtbrt Which r.in booklet before you, there are fn?v pages -of flnq print, describing the work nf SSi Tiflee'ro1' wm President Trigg: You have heard Mr. Leveiila's statement, and the reso lution which is proposed for your con sideration, what Is your pleasure? Is there a motion to approve the adoption of this preamble and resolu tion? (The motion waa made and seconded,). President Trigg;--Now, if Mr. Koh ' iJhm.make hls cePrt as treasurer, we should appreciate it very much. Treasurer's Report President Trigg: Any further dis cussion? All in favor will please say, ` aye"; contrary, "no." It Is adopted. President Trigg: Now the next problem is the tariff problem and Law rence Phillips Is chairman of that com mittee, but the president received a wire from him this morning saying that the would .not be able to be here today, and asked that Dr. Gardner who has been working very closely with him present the report, go Dr. Gardner if you will do that we will have the report now. Vention i would just like to remind'you !n ^reCft,lSei preliminary to my formal rejmrt I want to describe It. al prior to the comv 016 associations and the educa- ^*5 OI1 Association &ottvf^ that we set up dues on the classification Eershlp?1 WUtd. word8* through a revised renS2?ilniln A Ur membership dues, we dellberately set up schedules that produced er jbdbrna than came throught the oiatlons and the educational bureau sn Sni Zr 5ut8anT "farted out at the begin" A WlUl a Prospect of lees ^"berate this year, un -tv. ?,,^!. mSershIp freatly increased, fhim? 5?a *Pendlturea that I don't think any of us knew anything about, or n'lgbt be expected to be.1, th?TMainsSe(nK' ve rad the expenses of tSiC^'TMw^Wh waa,aPProved Just at the t^e of our convention by the president. tS.ai2S?if'"r Preaiai!T!t into our assoota- fTMs jobTS'soteIjorbmanent r8Bld0"(- oairi jw?n?talTup^he^ fflt ^ Nuodex 'Products, Inc. . At the' 1934 Paint industries Show solnf lnto a deficit, and .Preliminary cornments eo ffi5i%L^hlirfllevS your drsappolntment, SSSSS-SSif what W8 are Jaoin11110 = u( th8 drst idea of all of us that had any Idea with regard to the reorganfza- 1*n- r?as to do Job, and I am quite sure most of you will agree that we are pretty well on the way to doing that Job. Hkelo'clcaTup. 3"St a 5,otnt (hat 1 W0uld that Wa W8J 0lnS t0 ce a deficit, there occurred to many aunds .various ways by which we might pf thft deficit, but after con sideration on the part of those you elected to direct the organisation, it was finally crystallized into, the idea .that we had built uf ft surplus In our treaeury to (n of just such a time. I wanted to tell you now, because sometimes-thoughts get away because of general discussion, that there is set up at;a time like that, that there Is no money paid into .the treasury of your association jexcept that that came to It through dues. - No one has taken care of any expendi tures;except from the treasury of the As sociation through does and eurplue. We are canning ourselves, MA11 for one. and one for all." J8 November 14, 1934 OIL, PAINT AND DRUG REPORTER TVs started our fiscal year--1933-L934-- with an anticipated income lot approxi mately $117,000. This contemplated in come was based on the membership of both the American Paint ana Varnish Manufacturers' Association and the Ra tional Paint, Oil and Varnish: Association at that time on the present> schedule or dUOur anticipated budget for the fiscal year 1983-W34 was $147,705. ; During the year additional appropriations *"ounUng to $45,000 from surplus for activities were made. Of this amount $16,600 has been Mr. Rob:--Naturally all salaries and expenses with reference to code work are of necessity apportioned and as I recall the figures, I haven't them cor rectly, but I think that they amount to $73,000--the amount apportioned to code work, covering administration and rent, and the proportion of the rent and all expenses including mailing and printing, and all code expenses, as I remember it--in round numbers is $73,000. ' President Trigg:--Are there any paying dues on the uniform plan based upon their domestic saies to the industry. They shall have representation at the Association meetings through Regional or City Association delegatee as provided in the By-Laws, and will receive all the Scientific Section circulars. They are en titled to membership in each Regional or City Association on payment of the Re gional or City Association's dues, not in cluding National dues. Amend as Follows Clas* B Membership Section 3. Class B membership shall Lacquer, Water Paint and/or kindred products industry, . Present Form Section 9. Members of the Executive Committee shall hold offioe Io t three years, except that there shall be elected at the first meeting of the Association the eighteen members as provided above, six of whom shall be elected to serve for one year; six of whom shall be elected to serve for two years; and six of whom shall be elected to serve for three years. Each group of six shall consist of four Paint, Varnish or Lacquer manufacturers, one must be a Class A member, but not S^The increases In the budget have had other questions? If not, and, if. there consist of individuals, firms, or corpora necessarily a manufacturer of Paint, Var the full approval of your board of di rectors, and have been apportioned to tions who are manufacturers of materials used in connection with the manufacture nish and/or Lacquer, and one must be a Class B or C member. all the activities: Save the surf^-a?TM" paign, clean up and paint up campaign, scientific section, unfair competition, traffic, and Code, and to Increase the ef and/or application of paints, varnishes, lacquers, water paints and/or kindred products who shall pay dues as provided for in ARTICLE H,, Section 2, of the Amend as Follows Section S. Members of the Executive Committee shall hold office for three fectiveness of both the industrial and By-Laws, They shall have representation years, except that there shall be elected trade sales committee. . The purpose of these introductory con* meats to the regular financial statement at the Association meetings through Re gional or City Association delegates as provided in the By-Laws and shall be at the first meeting of the Association the eighteen members as provided above, six off whom shall be elected to serve for u to emphasize the fact that your offlcarl felt that their first entitled to receive copies of all piiblications of the Association, Including Scien one year; six of whom shall be elected to serve for two years; and six of whom o,*lnsr that funds be provided to meet tific Section circulars. They are entitled shall be elected to serve for three years, the new conditions and new (van though they exceeded our income. The amount of money required was smaU to membership In each Regional or City Association on payment of the Regional or City Association dues, not Including Erovided, however that no member shall a eligible for re-election within one year. Each group of sfx shall Include when compared with the possible ^BUltfl National dues. four Paint, Varnish or Lacquer manufac to be obtained through our; reorganized industry association. We knqw we would Class C Membership turers, one must be a Class A member, but not necessarily a manufacturer of hflvT a deficit for the year, but it 1b Present Form Paint, Varnish and/or Lacquer, and one largely accounted for by the amounto sKnttng and postage expense in connec tion with the provisions of the code. Income ; Section 4. Individuals, firms* corpora tions who are not eligible for Class A membership or who uiw not Class B members, but who are members of Re gional or City Associations affiliated with must be a Class B or C member. Section 5. Article IV Present Form Duties of the Treasurer: It October 1 to December ; the National Association and pay National shall be the duty of the Treasurer to 31, 1933, educational ; dues and, dues as prescribed by the Re open such bank accounts in such banks bureau:-- Subscriptions, uniform financial plan........... i S gional or City Associations. They have representation at the National Conven tion through Regional or City Association asjnay be approved by the Executive Committee; and to provide for the re ceipt of all moneys due the Association. Old basis..................... $10,758.75 delegates as provided in the By-Laws, Disbursement shall be made by voucher Appropriations-- ^ . American paint ana varnish manufac turers Association., National paint. Oil and Varnish Asso ciation ........................ 8,000:00 5.000,00 Convention refunds.... 1 Interest earned, securi ties .......................................... Recoveries on accounts j receivable written off , January to September 30, ; 1034, National Paint, ; Varnish and Lacquar Association:-- Dues--Clans A................. 5*,398.75 Du s s -ICTms 8............... Dues--Class C.................. 6.17-;20 Dues--Class D,........... 412.50 ,11 000.00 587.82 Charles J. Roh Re-elected Treasurer is no objection this report will be re ceived and filed. I would like now to call on Mr. How ard, as chairman of the constitution Amend as Follows Class C Membership ' Section 4, Class C membership shall consist of individuals, firms or corpora tions who are not eligible for Class A membership or who are not Claes B members, but who are members of Re- . glonal or City Associations affiliated with the National Association and pay National dues and dues as prescribed by the Re gional or City Associations. They shall have representation at the National Con vention through Regional or City Asso ciation delegates as provided tn the By Laws. Class D Membership Present Form glgnea by the General Manager, or. In his absence, by authorized representatives. Budget, and coun tersigned by the Treasurer. Amend as Follows -u?f,otJn Bjities of the Treasurer: It snail be the .duty of the Treasurer to open such bank accounts m such banka "a.y be approved by the Executive Cpraalttee; and to provide for the re- t ?i5. f ** the Association. 2l^ed j?y made by voucher Secretary, or, in his ab- ?hSC k5L^+*repreeritatlve authorized by Committee, as coming th^TreaSirer^1, and countfsIgned by Present Form Interest earned, securlties .................................. 'Miscellaneous income.. Appropriations from surplus used during 1933-1034 for special activities ............................... Jonsolldated report of : 3,112.07 153.00 . : ; 18,500.00 $160,705.85 and by-laws committee, to present the preliminary report of that committee. Constitution and By-Laws (The following printed report of the committee on constitution and by-laws Section 5. Individuals, firms, corpora tions who are manufacturers of paints, varnishes, lacquers, water paints and kin-* dred products In Canada, may become members of the National Paint, Varnish and Lacquer Association, Inc., and secure the Scientific Section circulars, on the basis of dues as provided In Section 4, Article II., of the By-Laws, Section 8. The Treasurer shall keep an accurate account of all receipts and dis bursements and shall submit quarterly a financial statement and operating state- SKf-.,2iVeflnf ^ perlod *rom the last statement to the Executive m.P'i * / 3n annual statement to SS-Jjrt ot September. This annual fgort to be audited and certified by a Certified Public Accountant and aubmlt- association and code was distributed to the members of the Amend as Follows ted to the Executive Committee at its Administration ............. W.MT.12 Building maintenance. 5,493.45 Scientific section............. i S'SS'm gave the surface...... 15.033.M Clean up and paint up 1-7,029.92 Traffic bureau................ Unfair competition.... |'22J`S? 2,393.41 association.) Your committee on constitution and by laws recommend for your consideration the following amendments to the present constitution and by-laws*. Constitution Class D Membership Section 5. Class D membership shall consist of individuals, firms or corpora tions who are manufacturers of paints, varnishes, lacquers, water paints and/or kindred products located In Canada and annual meeting and by them presented ewpvetttlon. He shall also to the General Manager, thirty (SO) days before the annual convention, a complete list of the Regional or City Associations holding membership in the National Association with the number of Code printing, etc......... Deficit 14,375.56 $175,252.50 $14,548.65 Article K Present Fotm manufacturers of paints, varnishes, lac quers, water paints and/or klndre.d products. Such individuals, firms, or cor- their members in good standing on his books, which list Stall be the basis of representation at the annual convention. Assets and Liabilities Assets fash ...................................... >ues receivable............. fecurltles, u. S. bonds. Municipals ................... . Earned Interest............. $26,186.45 8.322.51 $99,000.00 10,000.00 1,031.93 $110,031.56 nventorles-- ' Promotion activities Displays ........... -............ Torris B. Gregg memor ial land, building and contents ............................ )ther miscellaneous as sets .................................... 9,882.57 2,647.20 $832,064.60 Section 1. Any Association with ten or more members eligible to join the Na tional Paint, Varnish and Lacquer Asso ciation, Inc., may become a member upon approval of the President, Treasurer and Chairman of the Committee on Member ship, and after subscribing to the Con stitution, By-Laws and Code of Ethics and payment of dues. Amend as Follows Section 1. Any Association with five or more members eligible to Join the Nat*i'ona-t -Paint , --Varnifsh a--nd----L---a--c--q---u--e--r A--s--s--o- ciation, Inc., may become a member upon approval of the President, Treasurer and Chairman of the Committee on Member ship, and after 'subscribing to the con Sorations may become members of the rational Faint, Varnish and Lacquer As sociation, Inc., and are entitled to receive copies of all publications of the Associa tion, Including the Scientific Section cir culars. They, shall pay dues as provided In Article II., Section 4, of the By-Laws. Article HI Present Form Section fi. General Manager: The Ex ecutive Committee shall appoint a Gen eral Manager for a period not to exceed three years, or until his successor Is ap pointed. He may or may not be a member of the Association. Amend as Follows - i? / ,?u also furnish a complete list of all delinquents. Amend as Follows Section 8, The Treasurer shall keep an accurate account of all receipts and dis bursements and shall submit quarterly a financial statement and operating state ment covering the period from the last financial statement to the Executive Lommittee and an annual statement to the last day of September. This annual EPW! to be audited and certified by a Certified Public Accountant and submit ted to the Executive Committee at its annual meeting and by them presented to the annual convention. He shall also submit to the Secretary, thirty (SO) days stitution, By-Laws and Code of Ethics (Eliminate entirely and renumber the before the annual convention, a complete accounts payable........... Jembers dues paid in ............................ $180.73 : ll821`- 2.002.83 and payment of dues. Class A Membership Present Form subsequent Sections.) Present Form Section 6. Secretaries: The Executive list of the Regional or City Associations holding membership in the National As sociation with the number of their mem bers In'good standing on his hooks, which unto ................................' ; MO-03*-*1 : *332,084.60 We have our auditor's (Ernpt & Ernst) sports. They show a detailodverlJloa.ion of all our accounts. .They have becked our securities in the hands of tne Uggs National Bank, who act as our '^Thev have also checked our insurance .nd state that all the officers and emiloyees authorised to sign checks are *WhUe as treasurer, I have refrained in bis report from presenting figures show- rig the numerical strength of class A and i memberships of the association, or the eal benefits that have accrued to our nembership through the expenditure of mr funds, I have been very gratified be- :ause of the real accomplishments made, is these accomplishments are unfolded luring the next three days by the ora:ers, chairman of committees ^and others* am sure you will all have the same eeling that I have, that the, personal lervlce of several hundred! interested nembers all working in the j interest of ill of us very far overshadow in value he amount o t money we epeiit. Ernst & Ernst's reports, are here, and f anyone wants to look at them, they are velcome. j Section 2, Individuals, firms, corpora tions who are manufacturers of paints, varnishes, lacquers, water paints and kin dred products, who support all .Association activities--the Scientific Section, Unfair Competition Bureau, Save the Surface Campaign, Clean Up and Paint Up Cam paign, Traffic Bureau, and ' such other activities In which the Association may engage--paying dues on the uniform plan based upon their domestic sales of their products. Each Class A. member is entitled to one vote at the Association meetings and to receive all the Scientific Section circulars. They are entitled to member ship In Regional or- City Associations- on payment of the Regional or City Associa tion's dues, not including the National dues. Amend as Follows: ' Class A Membership Section 2. Class A membership shall consist of Individuals, firms, or corpora tions who are manufacturers of paints, varnishes, lacquers, water paints, and/or kindred products and who'shall pay dues as provided for in ARTICLE IL, Section 1, of the By-Laws. Each Class A member is entitled to one vote at the Association meetings and to- receive copies of all publications of the Association, including Scientific Section circulars. They are en Committee may elect or appoint a Secre tary of the Association, or Secretaries, to Eerform such duties as may be designated y the President and/or by the Executive Committee or General Manager. Amend as Follows Section 5. Secretary: The Executive Committee shall elect a Secretary of the Association to perform such duties as may be designated by the President and/ or the Executive Committee. Present Form Section 8. Executive Committee: The Executive Committee shall consist of the President Vice President, Treasurer, the retiring President (except during the first year) and eighteen elected members, twelve of whom must be Paint, Varnish or Lacquer manufacturers; three must be Class A members, but not necessarily manufacturers of . Paint, Varnish or Lacquer; and three to be Class B or C members. The Class B and C members will have all the rights of other mem bers on the Executive Committee, except that they shall not be eligible to election as chairman or vice chairman thereof, and they shall not vote on the subjects which directly affect the Paint, Varnish, Lacquer, Water Paint, and/or kindred products industry. list shall be the basis of representation at the annual convention. He shall also furnish a complete list of-all delinquents. Present Form Section 10. ^Duties of the Executive Committee: The Executive Committee shall receive for consideration and action at their meetings all reports, resolutions and communications presented by the Of ficers, Chairmen of Committees and mem bers, which ln-the Judgment of the Execu tive Committee require Immediate action, the-benefits and effectlvenss of which, if held over' for the action of the Conven tion, would-be seriously Impaired or en tirely destroyed; except changes in the .Constitution and By-Laws as provided for In the Constitution and By-Laws. The Executive Committee shfell receive for consideration all reports, resolutions and communications before their presentation to meetings of the Association, and shall, through the General Manager, submit them to the Association with thefr recom mendations. . Amend as Follows Section 10. `Duties of the Executive Committee ? The Executive Committee shall receive for consideration and action at their meetings all Teports, resolutions and communications presented by the Of ficers, Chairmen of Committees and mem President Trigg;--Are here. any luestions on the treasurer's ; report? titled to membership in Regional or City Associations on payment of the Regional or City Association's dues, not. Including . Amend as Follows Section ?. Executive Committee: The bers, which In the Judgment of the Execu tive- Committee require Immedtat action, the benefits and .effectiveness of which. If Mr. Wolf:--As I got theset figures, of :ouree, the largest item is the ltein of idministration, I presume! that that ncludes the administration! of the re:overy board as well as the admints- ratlon of the. association, ! President Trigg:--This report is a onsoltdated report. ! Mr. Wolf:--Is there any background' hat would show how much of that &d.inistraive expense was In dodo work? President Trigg:--Mr.' Bob will have > answer that. ' the National dues. - Class B Membership Present Form Section 3,' Individuals,, firms, corpora tions who are manufacturers of materials used in connection with the manufacture and/or application of paints, varnishes, lacquers, water paints and kindred prod ucts, who support all Association activ ities--the Scientific Section, Unfair Com petition Bureau, Save the Surface Cam paign, Clean Up and Paint Up Campaign, Traffic- Bureau, and such other activities in which the Association may engage^ Executive Committee shall consist of the President, Vice President, Treasurer, the retiring President and eighteen elected members, twelve of whom must be Paint, Varnish or Lacquer manufacturers; three must be Class A members, but not neces sarily manufacturers of Paint, Varnish or Lacquer; and three to be Class B or C members. The Class B or C members will have all the rights of other members on the'-Executive -Committee, except that they shall not be eligible to election as chairman or vice chairman thereof, and, they shall not vote on the subjects which directly affect the Paint. Varnish, held over for the action of the Conven tion, would be seriously Impaired or en tirely destroyed; except changes In the Constitution and By-Laws as provided for In the Constitution and By-Laws. The Executive Committee shall consider all reports, resolutions and communications received prior to a meeting of the As sociation, and shall, through the Secretary, submit them to the meeting with their recommendations. .. Present Form Section 18, The Executive Committee may appoint a General Manager, a Sec- OIL, PAINT AND DRUG REPORTER November 14, ,1934 19 retary of the Association, and/or Secre taries as provided by this Constitution, Amend as Follows Section 13, The Executive Committee shall elect &- Secretary of the Association as provided by this Constitution, Present Form Section 14, Bond; The Association shall provide indemnity bonds for the President, Vice President, Chairman of the Executive Committee, Treasurer, Gen eral Manager, and such employees ae the Executive Committee may direct. Th? Executive Committee shall designate the amount of the bonds. The bonding ex pense to be paid by the Association. Amend as Follows Section 14. Bond: The Association shall provide Indemnity bonds for the President, Vice President. Chairman of the Executive Committee, Treasurer, Sec retary, and such employees as the Execu tive Committee may direct. The Executive Committee shall designate the amount of the bonds. The bonding expense to be paid by the Association, Present Form Section 15. Duties of the General Man ager : The General Manager shall perform such duties as may be delegated to him hy the President and/or by the .Executive Committee in the interest of the Associa tion and the general interest of the In dustry, Amend as Follows Section 15. Duties of the Secretary? The Secretary shall perform such duties as may be delegated to him by the Presi dent and/or by the Executive Committee In the interest of the Association and the general Interest of the Industry. Present Form Section 16. It shall be the duty of the General Manager to provide Minutes of all meetings of the Association and the Executive Committee, to preserve all the records belonging to the Association arid to perform such other duties incident to his office as may not otherwise be pro vided for. It shall be his duty to submit a quarterly report to the Executive Com mittee and at the first business session of the annual Convention a report upon the work accomplished during the year. Amend as Follows Section 16. It shall be the duty of the Secretary to provide Minutes of all meet ings of the Association and Executive Committee, and to preserve all records belonging to the Association and to per-, form such other duties Incident to his office as may not otherwise be provided for. Present Form Section 17. It shall be the duty of the General Manager to approve or provide for the approval for payment of all proper expenditures of the Association as pro vided for In the approved budget He shall report to the Chairman of the Mem bership Committee all applications for membership, and shall notify the Treas urer and new members of their election to membership, and further, shall notify the Treasurer of the names.and addresses of all members elected In Regional or City Associations as soon as he receives such notlrp from Regional or City Association secretaries, ' Amend as Follows Section 17. It shall be the duty of the Secretary to approve or provide for the approval for payment of all proper ex penditures of the Association as provided Tor In the approved budget. He shall re port to the Chairman of the Membership Committee all applications for member ship, and shall notify the Treasurer and new members of their election to member ship, and further, shall notify the Treas urer of the names and addresses of all members elected in Regional or City As sociations as soon as he receives such notice from Regional or City Association secretaries. Present Form Section 18. It shall he the duty of the General Manager to collect and account for all funds received and to deposit same in banks authorised by the Executive Committee. Amend as Follows Section 16. It shall be the duty of the Secretary to collect and account for all funds received and to deposit same in banks as provided in Article IV., Section 6, of the Constitution. . Present Form Section 19. Duties of the Secretary of the Association: The Secretary of- the As sociation shall be sworn to the faithful discharge of his duties. He shall be cus todian. of the seal of the Association and may affix the same to any Instrument requiring it, and when so affixed It shall be attested to by his signature or by the signature of the Treasurer, Amend as Fottows Section 19. The Secretary of the As sociation shall be sworn to the faithful discharge of his duties. He shall be cus todian of the seal of the Association and may affix the same to any instrument requiring it, and when so affixed it shall be attested to by his signature or by the signature of the Treasurer. Article Vu present Form Section 4, Executive Committee Meet ings : The Executive Committee shall meet at the call of the Chairman imme diately following adjournment of the Annual Convention, and thereafter quar terly within twenty (20) days before or after January let, April 1st, July 1st, October 1st. The January meeting shall be the organization meeting. A report of the quarterly meeting may be made to the membership through the Bulletin, or otherwise, as directed by the Executive Committee. Amend as Follows agreement relative to Non-Exchange of Products and the Anti-Bribery Agreement of this Association. Article H Section 1, (No change in Schedule of Dues), Present Form (Last Paragraph of Sec tion 1) ' Dues are payable quarterly on the -first of January, April, July and October. New members shall pay from the date nearest the date of their acceptance Into the mem bership of the Association. Amend as Follows Dues are payable quarterly In advance on the first of January, April, July and October, based on sales to qe reported by the member in accordance with Article II, Section 8, of the By-Laws. New members shall pay from the date nearest the date of their acceptance Into the membership ofthe Association. Section 2. (No change In Schedule of Dues). Present Form (Last Paragraph of Sec tion ) Dues are payable quarterly on the first of January, April, July and October, New members shall pay from the date nearest to the date of their acceptance Into the membership of the Association. Amend as Follows Dues are payable quarterly in advance on the first of January, April, July and October, based on sales to be reported by the member In accordance with Article II, Section 8, of the By-Laws. New members shall pay from the date nearest to the date of their acceptance into the member ship of this Association. Section 4. Executive Comlttee Meetings: The Executive Committee shall meet at the call of the President immediately fol lowing adjournment of the annual Con vention or within two weeks thereafter for the purpose of organizing, and such other business as may properly come before it, and thereafter quarterly within twenty (20) days before or after January 1st, April 1st, and July 1st and Immediately preceding the Convention. A report of the quarterly meeting may be made to the membership through the Association pub lication, or otherwise, as directed by the Executive Committee. By-Laws Present Form Section 3. Class C Membership: On October 1st each Regional or City Asso ciation shall, through Its Secretary, fur nish to the General Manager a complete list of Its Class C members, and such Regional or City Associations shall pay as annual dues the sum of 820.00 for each eligible member so reported, and'SL.70 per month for each new Class C member elected after October 1st until the follow ing October 1st, Regional or City Asso ciations located outside of the United States shall pay as annual dues, the sum of 510,00 for each Class C member in United States funds or Its equivalent. Article I Amend as Follows Application' for Membership Present Form Section 1. AH applications for Class A, Class B and Class D memberships shall be referred to the Chairman of the Mem bership Committee, whose duty It shall he to submit them at once to the Execu tive Committee of the Association for election. If the vote of the Executive Committee Is favorable, the General Man ager shall notify the applicant. Upon payment of dues, the applicant shall be enrolled by-the General Manager in the membership of the Association. Class C members In Regional or City Associations shall be members In this National Asso ciation. Amend as Follows Section 1. All applications for Class A, Class B and Class D memberships, after ' approval by the Chairman of the Mem bership Committee, shall be referred to the Secretary, who shall submit them at once to the Executive Comlttee of the Association for election. If the vote of the Executive Qomittee Is favorable, the Secretary shall notify the applicant. Upon payment of dues, the applicant shall be enrolled by the Secretary In the member ship of the Association. Class C mem bers In Regional or City Associations shall be members In this National Association, Present Form Section 2. No individual, firm or cor-poration holding Class A membership shall be eligible to membership until they have signed the agreement relative to Non-Exchange of Products, and the Anti Bribery Agreement of this Association. Amend as Follows Section 2. No Individual, firm or cor poration shall be admitted to Class A membership until they have signed the Section 3. Class G Membership: On October 1st each Regional or City Asso ciation shall, through its Secretary, fur nish to the Secretary of this Association a complete list of its Class C members, and such regional or City Associations shall pay as annual dues the eum of 520.00 for each eligible member so re ported, and ? 1.70 per month for each new Class C member elected after October 1st until the following October 1st. Regional or City Associations located outside of the United States shall pay as annual dues the sum - of 510.00 for each member in United States funds, or its equivalent, ex cept as provided In Article II, Section 5, of the Constitution, and Article II, Section 4, of the By-Laws. Present Form Section 4. Class D Memberships: In dividuals, Firms, Corporations, Manufac turers of Paints, Varnishes, Lacquers, Water Paints, and Kindred Products in Canada shall pay dues in United States funds or Its equivalent In the amounts paid by corresponding classes of Class A members, but not in excess of $160.00, and shall be entitled to Scientific Section Cir culars. Alt other classes of Canadian members may affiliate by becoming Class C members by paying $10.00 annual dues (as provided In Section 3) In addition to the dues of the Regional or City Associa tions of Canada. If admissions are made during the fiscal year, the dues will be pro-rated. Amend as Follows Section 4. Class D Memberships: In dividuals, firms, or corporations who are manufacturers of paints, varnishes, lac quers, water paints and/or kindred prod ucts located In Canada may become Class D members of this Association by paying dues in United States funds, or Its equiva lent, In amounts paid by corresponding classes of Class A member, but not In excess of $l0,00, and such members shall be entitled to receive copies of all publi cations of the Association, including Scien tific Section Circulars. Class D member ship shall also be available to individuals, firms or corporations who are manufac turers In Canada of materials used in the manufacture and/or application of paints, varnishes, lacquers, water paints and/or kindred products. Such concerns shall pay du^s In United States funds, or its equivalent, in amounts paid by cor responding classes of Class B members, hut not In exbess of $120.00 per year, and shall be entitled to receive copies of all publications of the Association, including Scientific Section Circulars. Any concern eligible for membership in this Associa tion, as described In Article II of the Con stitution, located in Canada, who is not a Glass D member, shall be entitled to affiliate through a local Association as a Class C member, by paying $10.00 annual . dues as provided in Article II., Section 3. of the By-Laws, in addition to the dues of the Regional or City Associations in Canada. If admissions are made during the fiscal year, the dues shall be pro-rated. Present Form Section 8. . Annual Dues: The fiscal year shall commence October 1st and end September 30th, but dues of Class A mem bers and Class B members shall be based on sales reported to the Association Head quarters as soon as figures are available after January 1st. All other membership dues shall be-paid In advance to the Na tional Treasurer within sixty (60) days after October11st t Amend as Follows 'Section 8. ; Annual Dues: The fiscal year of this Association shall commence October 1, and end September 30, but dues of Class A members and Class B members shall be based on such members' sales for their last fiscal year, which are to be reported to Association Headquarters as soon as available after January 1st. All other membership dues shall be paid In advance to the National Treasurer after October L : 1 Artiele'ni ' Present Form Section 4, ;Alternates: Each Regional or City Association shall elect an alter nate for any delegate, who shall act for such delegate during hie absence, and whose vote shall be bindfng the same as If cast by such delegate. Amend as Follows Section 4. Alternates: Each Regional or City Association shall elect an alter nate for each: delegate, who shall act for such delegate during his absence, and whose vote shall be binding the same as If cast by such delegate. Present Form Section 6. Voting Power At all meet ings of the ' Association a motion or resolution, except amendments to the Constitution and By-Laws, may be voted upon by Class A members and delegates of the Association present Each delegate shall be entitled to one vote. Amend as Follows Section 5, Voting Power: At all meet ings of the Association Class A members and delegates of local Associations present shall be entitled to one vote each. Present Form Section 6. A qualified member or dele gate may demand a vote by roll call of Class A members and delegates. Said vote may be taken at once or during the next regular business session. The result of Class A members and delegates' vote shall supersede the result of a vote on the same question by the membership at large. Amend as Follows Section 6. A qualified member or dele gate may demand a vote by roll call of Class A members and delegates. Said vote may be taken at once or during the next regular business session, The result of such roll call vote shall supersede the result of any previous vote on the same question by the membership at large. , present Form Section 3. Floor privilege: Honorary members shall;be entitled to the privilege Ansbacher-Siegle Corporation At the 1934 Paint industries Show Wheeling Corrugating Company Faik & Co. At the 1934 Paint Industries Show"......... '... At the 1934 Paint `industries Show OIL, PAINT AND DRUG REPORTER November 14] 1934 21 of the floor without voting* powei^ The privilege of the floor at any meting* may be extended to delegates or representa tives from other organisations or to other Individuals upon favorable vote by twothirds of the voting members present. Amend as Follows Section 8. Floor privilege: Honorary members shall be entitled to the privilege of the floor without voting power. The privilege of the floor at any meting may be extended to delegates or representa tives from other organizations or to other individuals by authority of the Executive Committee, or upon favorable vote by two-thirds of the voting members present. Article V Present Form ' Section 2. The President and the Presi dent of each Regional or City Association shall appoint to this Committee a Re gional or City member having a thorough knowledge of trade sales in his district. Section 3, It shall be the duty of the Chairman of each Regional or City Trade Sales Committee to thoroughly organize timse interested in trade sales in his dis trict. It shall also be his duty to organize those members of lacquer sales to auto accessory wholesalers. The reactions of these Regional or City Associations shall be presented by their Chairmen to the National Trade Sales Committee. Amend as Follows rt (Consolidate old Section 2, and Section 3, into new Section 2P. as follows* and re number other Sections in this Article accordingly.) Section 2. The President of this As sociation. in collaboration with the Presi dent of each Regional or City Association, shall appoint to this Committee a Regional or City member having a thorough knowl edge of trade sales In his district, jet all be the duty of the Chairman of each Regional or City Trade Sales Committee to organize thoroughly those interested in trade sales in his district. It shall also be his duty to organfze those members of lacquer sales to auto accessory whole salers. The reactfons of these Regional or City Associations shall be presented by their Chairmen to the National Trade Rales Committee. Present Form Section 5. The President shall appoint as a member of this Committee a member of a Regional or City Association thor oughly acquainted with industrial sales in that district. It shall be the responsfbiiity of this Committee member or local Chairman to organize members of indus trial sales locally; members interested In industrial sales of paints; members in terested in industrial sales of lacquers, etc. The reactions of these Regional or City Associations shall be presented by their Chairmen to the National Industrial Sales Committee meetings. Amend as Follows Section 4, The President of this Asso ciation, In collaboration with the Frest-' dent of each-Regional .or City Associa tion. shall appoint to this Committee a Regional or a City Association member having a thorough knowledge of Indus trial Sales In his district. It shall be the responsibility of this Committee member, as local Chairman, to organize thoroughly members of Industrial Sales locally; members Interested In industrial sates of paints; members interested In industrial sales of lacquers, etc. The reactions of these Regional or City Associations shall be presented by their Chairman to the National Industrial Sales-Committee, Present Form Section 7. Budget and Finance Com mittee: This Committee, consisting of three or more members, shall foe ap pointed by the Chairman of the Execu tive Committee and approved by the Executive Committee. Section 10, The Budget and Finance Committee shall fix the compensation of the President and have charge of the allocation-of all Income of the Associa tion, including the allotment of such funds as may be required for the work of the Paint Industry Recovery Board, subject in turn to the approval of the Executive Committee of this Association. Amend as Follows (Consolidate Section 7, and Section 10, Into new Section 6, as follows;) Section 6. Budget and Finance Com mittee: This Committee shall consist of three or more members and shall be ap pointed by the Chairman of the Executive Committee. They shall fix the compen sation of the President and shall have charge of the allocation of all income of the Association, including the allotment of such funds as may be required for the work of the paint Industry Recovery Board, subject to approval by the Execu tive Committee of this Association, Present Form Section 8. Unfair Competition Com mittee: This Committee shall be ap pointed by the President in collaboration with the Chairman of the Executive Committee and be approved by the Exec utive Committee. Amend, as Follows Section 7. Unfair Competition Com mittee: This Committee shall be ap pointed by the President, In collaboration with the Chairman of the Executive Com mittee, subject to approval by the Execu tive Committee. Present Form Section 9. Clean Up and Paint Up Committee. Save the Surface Committee. Scientific Section Committee. Traffic Committee. Legislative Committee. Distributors Committee. Kindred Products Committee. Simplification Committee. Constitution and By-Laws Committee. Membership Committee. Credits and Collections Committee. Memorial Committee. Production Clubs Committee. The above Committees shall consist of three or more members appointed by the President and each may be organized in the same manner as the Trade and In dustrial Sales Committees, if desirable. Amend as Follows Section 8. The following Committees shall consist of. three or more members each, to be appointed by the President: Clean Up. and Paint Up Committee, Constitution and By-Laws Committee. Credits and Collections Committee. Distributors Committee. Kindred Products Committee, Legislative Committee. Membership Committee. Memorial Committee. Production Clubs Committee. Save the Surface Committee, Scientific Section Committee. Simplification Committee. Tariff Committee. Traffic Committee. Present Form Section 13. Regional or City Associa tion Program Committee; The President shall appoint a Regional or City Associa tion Program Committee of not less than five (5) members to prepare at the be ginning of the fiscal year a series of pro grams, which shall be sent to each Re gional or City Association, for use by such Association during the year. Amend as Follows Section li. Regional or City Associa tion Program Committee: The President shall appoint a Regional or City Asso ciation Program Committee of not less than five (6) members to prepare at the beginning of the fiscal year a series of programs, which shall be sent to each Regional or City Association for the sug gested use by such Association during the year. Present Form Section 14, Nominating Committee: At least three (3) months preceding the an nual Convention the President shall ap point, subject to the approval of the Executive Committee, a Nominating Committee of seven (7) members, as fol lows;. Four to be selected from Class A membership, two to be selected from Class B or C membership (none of whom shall be officers), and the President. The'names of the Nomi nating Committee shall be read at the first business session of the an nual convention and the committee shall, at the third business session, report a ticket to be placed In .nomi nation In accordance with By-Laws. Amend as Follows . Section 12, Nominating Committee: At least three (3) months preceding the an nual Convention, the President shall ap point, subject to the approval of the Ex ecutive Committee, a Nominating Com mittee of seven (7) members, as follows: Four to be selected from Class A membership, two to be selected from Class B or Class C membership (none of whom shad be officers) and the President. The Nominating Commit tee shall report. at the end of the first business session of the Conven tion. Present Form .Section IB. Publicity and' Press: The President may appoint annually a Pub licity and Press Committee consisting of five members, whose duties It shall be to furnish the Press with such information as in their judgment the public might find Interesting and. which shall not In any way Jeopardize the Interests of the Asso ciation or any of its members. This Com mittee, together with the General Man ager, shall edit all reports of the annual Convention or other meetings of the As sociation. There shall be made a steno graphic report of the business proceedings of the annual Convention.Upon applica tion such report shall be furnished as edited and approved by the Publicity and Press Committee to any of the Trade Papers subscribing. The expense of the stenographic report shall be divided pro rata between the Association and each of the Trade Papers making application for the report. . Amend as Follows Section IS. Publicity and Press; The President may appoint annually a Pub licity and Press Committee, consisting of five members, who, together with the Secretary, shall edit material for the Press and shall edit all reports of the annual Convention or other meetings of the Association. There shall be made a stenographic report 'of the business pro ceedings of the annual Convention. Upon application such report shall be furnished as edited and approved by the Publicity and Press Committee, to any of the Trade Papers subscribing. The expense of the stenographic report shall be provided pro rata between the Association and each of the Trade Papers making application for the report. Present Form (Section 16) Rule 16, The record of the action of the Committee shall be made in triplicate, one copy of which shall be given to each of the contending parties, and one cony sent to the General Manager of the Na tional. Paint, Vamieh and Lacquer Asso ciation, Inc. but no report of the same shall be published or made a matter of permanent record. : A'l members' are cordially Invited In canes of dispute to ayail themselves of this service and thus avoid the expense, delay and Ill-feeling of litigation.. Amend as Follows (Section 14) Rule 6. The record of the action of the Committee sha'l be made In triplicate, one copy of which shall be given to each of the contending parties, and one copv sent to the Secretary of the Nations! Paint, Varnish and Laeouer Association. Inc., but no report of the same shall be pub lished or made a matter of permanent record. ' All members are cordtallv invited in cases of dispute to avail themselves of this service end thus avoid the expense, delay and Ill-feeling of litigation.. Present Form *' Section 17. Resolutions Committee: The President shall appoint from the mem bership of the Executive Committee at Its annual meeting a Committee of three (37 to be known'as the Resolutions Com mittee: In accordance with the By-Laws, this Committee shall consider all reports, resolution^ or recommendations presented In session's of the annuel Convention, per taining to matters'that have not been be fore the Executive Committee. They shall submit tto the Convention such resolu tions and reports, with their recommenda tions. when necessary, they shall d^ft and submit to the Convention resolutions on subjects requiring action. ' ' ' Amend as Follows Section IS. Resolutions Committee : The President shall appoint from the member ship of the Executive Committee "at its annual meeting a Committee of three to be known as* the Resolutions Commit tee. This Committee shall consider alt reports, resolutions or 'recommendations which may be referred to them In sessions of. the annual Convention pertaining to matters that have not been before the Executive Committee. They shall submit to the Convention such resolutions or re ports with their recommendations. When necessary, they shall draft and submit to the Convention resolutions on subjects re quiring action. ' Present Form Section 21. Communications: All com munications i relating to or affecting any interests covered by Committees shall be referred by '"the General Manager, upon the approval of the President, to the Chairman of such Committee, who shall make reply or return to the General Man ager such 'recommendations as his Com mittee may indicate. ' Amend as Follows Section l&i. Communications: All com , munications`relating to or affecting any interests covered by Committees, shall be referred by !,the Secretary, upon the ap proval of the President, to the Chairman of such Committee, who shall make reply or return td the Secretary such recom mendations as his Committee may in dicate. ' Article VI : Present Form Reports, Resolutions, Communications and Amendments Section l,i Reports: All Committees shall submit: through their Chairman to the-General Manager at least thirty (30) days before; the annual Convention for presentation through the Eexecutive Com mittee to the Convention, a written re port, accompanied by recommendations, if any, on the -subjects assigned said Com mittees, i Section 2, J Resolutions: All resolutions, special reports or communications shall be submitted to \ the General Manager before the annual Convention ror tne considera tion of the Executive Committee, before presentation to the Convention. Any reso- . lutlon, report or recommendation pre sented In Convention sessions pertaining to matters which have not been before the Executive Committee, before action, shall be referred to the Resolutions Com mittee for consideration and recommen dation. Such! resolutions, reports or com munications must be submitted prior to the -final session of the Convention. ' Section 3. Amendments: The Associa tion shall by majority vote adopt, reject, or amend Any resolutions, reports or recommendations made through or by the Executive Committee, or substitute there for any resolutions or recommendations upon the same subject matter. Amend as Follows (Combine present Sec tions 1, 2 and 8 into following New Paragraph) Reports, Resolutions and Communications AH Committees shall submit, through their Chairman, to the Secretary at least thirty (30) days before the annual Con vention for i presentation through the Executive Committee to the Convention, a written report accompanied by recom mendations, If any, on the subjects as signed to said Committees. All resolutions, special reports or communications received by the Secretary In advance of the annual Convention, shall be referred by him to the Executive! Committee for consideration and by them referred, with their recom mendations,. to the Convention for con sideration arid appropriate action. All resolutions, reports or communications presented In convention sessions pertain ing to matters which have not been before the Executive' Committee, may be referred to the Resolutions Committee for consider ation and recommendations; reports of such considerations and recommendations shall be made prior to the adjournment of the Convention. 1 Article TH `Present Form Section 1. A. Trade Mark Bureau shall be maintained* In the office of the General Manager, Section 2. The Trade Mark Bureau is for the purpose of keeping records and giving Information as to Marks in our Industry, also giving information on Trade Mark matters In general. The Bureau shall be regulated and supervised by the Trade Mark Committee with the co-opera tion of the General Manager. Amend as Follows * (Present Section 1, and Section 2, to be consolidated Into new Section. 1, as fol lows:) Scientific Section, N.P.V.&L.A, At the 1934' Paint industries Show Aluminum Company of America At the 1934 Paint industries Show 22 November 14, 1934 OIL, PAINT AND DRUG REPORTER Section 1. A Trade Mark Bureau shall be maintained by the Association for the puraose of keeping records and. giving information as to Marks in our Industry, also giving information on Trade Mark matters in general. . Present form Section 3. The Trade Mark Committee shall, subject to the approval o the Execu tive Committee make such rules and regu lations &e may seem desirable, with regard to the registration of Trade Marks In the Trade Mark Bureau, the furnishing of reports and publication to members and non-members relating to Trade Marks and the fees to be collected therefor. The Chairman shall make a report at the annual Convention of the Association. Amend as Follows Section 2. The Trade Mark Committee shall, subject to the approval of the Executive Committee make such rules and regulations as may seem desirable, 'with regard to the registration of Trade Marks In the Trade Mark Bureau, the furnishing of reports and publication to members and non-members relating to Trade Marks and the fees to be collected therefor. Article v IUl Present Form Expenses of Officers As may be authorized by the Budget and Finance Committee and approved oy the Executive Committee, the necessary expenses of the President, General Man ager or duly accredited agent or repre sentative, shall be- paid. Amend as Follows Expenses of Officers As may be authorized by the Budget and Finance Committee and; approved by the Executive Committee, the necessary expenses of the President, Secretary br duly accredited agents or representatives shall be paid. Article X . Present Form Press Representation At the annual Convention representa tives of the local daily press and others may be admitted to the preliminary open ing session when civic representatives address the Convention and reports of the officers aye read. All subsequent sessions shall be executive In their character and none but members, applicants for member ship, representatives of affiliated organiza tions, or delegates from other accredited organizations shall be admitted except by a two-thirds vote, and the President shall appoint a daily Sergeant-at-Arms, whose duty it shall be to exclude all visitors except as herein provided for. . Amend as Follows Press and Non-Member Representation At the annua! Convention, representa tives of the local dally press and others may be admitted to preliminary opening sessions. All subsequent sessions snail be executive in their character and none but members shall be admitted except by ap proval of the Executive Committee or by a two-thirds vote of voting members present The President may appoint a Sergeant-at-Arma whose* duty it shall be to exclude ait visitors except as herein provided for. Article XI Present Form . Section I. Nominating Committee Re port; The report of the Nominating Com mittee shall be presented at the third business session of the annual Convention and shall be voted upon at the last busi ness session of the Convention, Amend as Follows Section 1, Nominating Committee: The report of the Nominating Committee shall be presented at the end of the first busi ness session of the annual Convention, and shall be voted upon at the last business session of the Convention. Article Xn ' Present Form 1 Section 2. Appointments :jAU Commit tee appointments not provided for slutfl be made by the President Amend as Follows (Your Committee recommends that this be eliminated as It Is otherwise provided for in the Constitution and By-Laws.) Article XII Present Form Section; 3, Order of Business j ' 2, Preliminary Opening of Conven tion 2. Address of Civic Authorities 3. Reply of Association 4. Roll Call 0. President's Address 6. General Manager's Report 7. Treasurer's Report 8. Auditor's Report 9. Committee Reports anyone of you who may want to discuss anything that la in this report or any other Ideas that you .may have with re gard to further amendments in the by- jawa any time between now and the last session of our convention, when they will come back to you for final action and disposition of the report. Is there a second to Mr. Howard s motion? , (The motion was seconded.) president Trigg: All those in favor of this motion will please say "aye"; I wish you would do something for him." The doctor said, "What Is the matter with him?" , He said. "Well, he can't see any snakes on the floor, or pink elephants on the wall, and, by golly, the room is full of them!" . So our committee has seen pretty much alike on the recommendations which I am about to make to you. _. For the first time this year, under the present arrangement with your president, which is for three years, the nominating committee has been deprived of the great 10. 11. 12. . 13. Resolutions Unfinished Business New Business Election of Officers and Members of the Executive Committee contrary. It Is carried. Mr. Howard: The work of your committee was really made very easy by the foresight of the committee of 14. Installation of Officers and Members of Executive Committee patriots that established the constltulon, and that work has really been Amend as Follows a clarification of our last year's oper Section 2. Order of Business: ations in order to include and bring up 2. Opening of Convention to date certain things that have been 2. Roil Call 3. President's Address 4. Treasurer's Report 5. Auditor's Report pointed out to us during the last year. But I do want to pay tribute to Mr, Chessman and Mr. Roh and Charley fi. Committee Reports Caspar, who did a good lot of work 7. Resolutions 3. Unfinished Business 9. New Business 10. Election of Officers and Members of the Executive Committee 11. Installation of Officers and Mem . bers of Executive Committee in doing the original draft of the con stitution. S. R. Matlack; It seems to me that the association as a whole has rather taken for granted our treasurer's work, and no tribute paid to him for the (Mr. Howard presented the report by title with the following comment.) amount of time which be has put on It. I would like to offer a motion that we give-a vote of thanks to Charley Presentation of Report Roh for the work that he has given this year. H. M. Howard : I will promise you that we will try to get through In about two minutes and a half, if you will pass a Mr. Hancock: Seconded. President Trigg: No discussion Is necessary, and just to show Mr. Roh resolution which I shall offer in just a moment. But before offering that resolution, it ia necessary for me to read one other amend ment which the executive committee pro posed and passed at their meeting October 30, which could not be Included in the printed report- .. So in order to conform to the law, we must have a preliminary-reading of that I refer to article III. section 9 of the constitution. The proposed' amendment offered by the executive committee pro vides that after the words, "shall be elected to serve for three years," add the following, `provided, ' however, that no member shall be eligible for re-election within one year" and then it goes on stipulating the groups from which they shall come. - Mr. President, Inasmuch as the report of the committee has been printed and we want to conserve all of the'time for the real meat of the program, I would make the motion that the report be not read at this time, but that Mr, Bennett and myself wilt be ready at any time to receive any suggestions, criticisms, or further sug gested alterations that anybody may have to make provided you will do It prior to the last reading which is on Friday after noon. I make such a motion. President Trigg: I think you all under stand Mr. Howard's motion. The report of his committee has been minted, and it has been distributed, and I presume you all have copies of the report of the com mittee, which Is necessarily long because there has been a good deal of detail to straighten out In the by-laws and consti tution rather hurriedly set up a year ago. Now, Mr, Howard has told you of one additional amendment, which his commit tee now proposes based 'upon the action of the Executive Committee of the As sociation at Its meeting yesterday, and the purpose of this resolution, which was not printed In the publication because It wasn't In the committee's hands at the Hme--the purpose of this last resolution that no member elected to the Execu tive Committee for the usual term of three vears, can immediately succeed himself on the executive committee. There must be a lapse of at least one year. The Idea In that-la to Insure bringing new faces and new minds and new energy Into the executive committee from time to Hme, and to prevent perpetuation and in definite continuation In office of those members of the committee. ` Now, Mr, Howard has offered the mo tion to the - effect that they be relieved froni reading the detafr of this entire re- nort of theirs at this time, offering to make himself and Mr. Bennett, the other member' of his committee, available to how we feel about it, won't you please vote "aye" if you favor the motion? All in favor will please say "aye"; contrary. Mr. Roh, we are just unanimously pleased with you and with what you are doing. Gentlemen, under the by-laws, it Is necessary for the president, with the approval of the executive committee, to appoint a nominating committee. That was done, and the committee consists of E, V. Peters, chairman; Wallace F. Bennett, A. F, Brown, Leon Hanline, J\ E. Ingram, and V. Wurtele; and the president is automat ically a member himself of that com mittee. The by-laws provide that at this ses sion an announcement shall be made to the convention as to the personnel of the nominating committee. The by laws also provide that at that time the chairman of the nominating commit tee should make a preliminary report, and if Mr. Peters Is here I would like to have him make such a report. Preliminary Nominations E. V. Peters: You have heard the per sonnel of the nominating committee that the president has given you, and I would tike to say that this committee met- first in Washington,. August 28. and I think all members of the committee were pres ent except Mr, Bennett, Salt Lake City, and Mr. Wurtele, Minneapolis. In the recommendations of this pre liminary report, which we are about to give you, 1 should like to say that the entire conclusions of your nominating committee have been unanimous, Tt has been a very delightful commit tee to work with; we have felt our re sponsibility in trying to select or suggest to you an official family to conduct the affairs of this association for the next year, and I have enjoyed working with them very much. Our committee did not work at all comparable to the co-operation that existed between a few fellows I heard about who had a very large evening one night, and one of the chaps had taken the other back home, put him to bed in' the hotel room, and this chap felt very, very 111.- and he said to the fellow that was in bed, "Bo you feel pretty sick?" "Oh, I feel terribly sick." Then this fellow chased downstairs and got the hotel doctor, and he said, "Come up and see my friend; he is .terribly sick; E. V. Peters Chairman on Nominations honor and pleasure of renominating your president. The officers that we have been asked to suggest to you have been six members of the executive committee, the treasurer, five regional vice-presidents, and the vice-president. It has seemed to your comlttee that this year particularly in the great work which is going on, that we wanted to be as helpful to your president as possible be cause of the enormity of the job which you have thrown on his shoulders, and to surround him as much as we can with an official familiar association, and who will cooperate in the development of the great plans which lay ahead of you. As I sat here listening to the excellent report of the various committees, clean up and paint up, by Dr, Plumb, and Miss Kent on saving the surface and the others, It seemed to me that we must all realize that behind all of this thing Is some great force that harnesses these Influences together, and provides a general direction, and.I think that unless we have had an opportunity to come In pretty close touch with the official worker here la, Washing ton, we have no conception of the enor mity of the Job which Is on the president's shoulders. ' We, of the nominating committee, wanted to select men we felt were com petent and had splendid knowledge of the industry, to assist this association and your president in the work which Is ahead. It seems to mo that we ought to say in connection with the presidents work, that, as Mr, Roh mentioned before, that for the first time this past year you have a president who has devoted himself ex clusively to the affairs of this associa tion, a man who when he took this job found the necessity to divest himself of all private Interests, and all opportunities which private Interest provided, and he Is now your president exclusively. He receives no compensation other than the compensation which he receives from your association, except the great big' one, and that is the compensation which he realizes of rendering service to an in dustry through such times as American business 1r now golnc. So, for that reason that your nominating ! Resinous Products & Chemical Company At the 1934 Paint Industries Show . Neville Company At the 1934 Paint Industries Show OIL, PAINT AND DRUG REPORTER November 14, 1934 committee this year has been deprived of the honor of nominating- a president. I will pass on to the particular Item which we have been asked to submit to you for your consideration. There are she members of the executive committee whose terms expire this year. The committee felt that possibly this year, that we ought to renominate the same six gentlemen who have served about one year* Under your constitution and by-laws, the normal term of office for a member of the executive committee is three years. As last year was our first year these gentlemen were elected for only one year. As I understand it this year the execu tive committee have- had only three or four meetings, so it seemed to your nomi nating committee that due to this first formative year, when the machinery is getting well organised, that we ought not to deprive ourselves of the service of these same six gentlemen who have served, about one third of the normal term. Con sequently, your committee is going to suggest that the following gentlemen be renominated for a full three-year term as members of the executive committee: Doctor R, a . Plumb, Detroit; J, 'Heath Wood, Chicago; O. J. S. de Erun, New York; W. c, Dabney, Kentucky; S, C. Dunning, New York; T>. W. Figgis, New York. The nominating committee I think, how ler, &r? responsible f-or the suggested change in your constitution and by-laws which Doctor Howard has Just laid be fore you. The change is that no member of the nominating committee who has served a full three-year term shall be eligible for further service on the executive committee until at least a period of one year snail nave elapsed. I make that explanation now for the reason that we are nominating these same six gentlemen because they have served but one year, and but one third of a nor ma! term. . So, Mr. President, we are placing in nomination these six gentlemen for mem bers of the executive committee. As treasurer, we are- nominating Charles J. Roh. of the Murphy Varnish Company. I don't know what we would do without Mr. Roh, and we are all hanpy to join In the expression of thanks which were Just extended to him for his exceUent work. I am very happy to tell you that Mr. Roh has consented to serve again If you e'ect him. For regional vJcerDfresfdents: For New England, the nominating committee has suggested Wilbur Rice, of the U, S. Gutta s.Rercha Paint Company; Eastern viceJ. Wolf, of the Standard Varnish Works? Central vice-president. Of the Glidden Company, Cleveland; Southern vice-president, D. C Burnham, of the Pittsburgh Plate Glass company; Western vice-president, R. H. Oakley, Lo b Angeles. .. vice-president, the committee feTt that due to the great distance of the Pa cific coast and the far West from the general paint headquarters here In Wash ington, that It would probably be deslrab.e to have the vice-presidency of the association go somewhat farther west where we would have a closer tie and cooperation with that very Important group of the industry on the Pacific, coast. Bo the nominating committee has the great honor to suggest as vice-president Wallace F. Bennett, of the Bennett Glass & Paint Company, Salt Lake City. I might say that under the constitution and by-laws the nominating committee was requfred to inform the association of the nominees for members of the execu tive committee six weeks prior to this convention, but we felt so rather proud of our particular set which we selected that we published the whole ticket six weeks In advance of this convention. It Is not my purpose now to move the election of these gentlemen. I am sub mitting this report for the nominating committee for a preliminary report for your consideration, and It will give me great honor on the closing session of this convention to appear before you again and move the election of this ticket. President Trigg; This report will finally come before the convention on Friday afternoon, for your action. At that time, if there be those who desire to present other nominations, that may be done at that time. Now, It is time to adjourn for lunch, and the president's address will go over until the first thing this afternoon. Mr. Dewar, who Is the head of the painters' code, will also be on the pro gram this afternoon, and then the bal ance of the afternoon will be devoted to discussion of the code, and any part of it which you men mav want to bring up. We have arranged with the general counsel of the comnlte^ce division of NHA to be here this afternoon. In fact, he Is in the hotel now, for the purpose of meeting with us at two o'clock, and I therefore suggest that we all make it our business to be back here at two o'clock, because I am sure you all want to hear what he and the other men may have to say on the sub ject of the code. It la necessary that we should start the meeting as promptly as possible, because we want to get through an early in the afternoon as we can. Now, there are two or three an nouncements which we want to make, and then we will: adjourn. (Announcements.) President Trigg: If there Is no fur ther business to come before this ses sion, wft stand adjourned. , (The session was adjourned at 1:16 p. m.) Second Session-Wednesday Afternoon (The second session -of the conven tion was convened at 2:00 p.m. October 31, President Ernest T. Trigg, pre siding.] President Trigg:--Gentlemen: Will you be go*-** erough to come to order now? We will start our program by calling on John B. Dewar, president of the International Society of Master Paint ers and Decorators, and chairman of the National Code Authority for the Painting and Paperhanging and Deco rating Division of the Construction Industry, to talk to us on their own code problems. We - V know Mr. Dewar and the wonderful work that he is doing, and the fine work which his association is doing, and we are certainly directly interested in the experiences which they are having with their code and we are concerned with th suecss of it, and are Interested In any help which we may lend to them. So, Mr. Dewar, if your are ready to talk, we will be delighted to. have you come up here and talk to us. Master Painters' Code John B. Dewar :-^The painting industry Is more appreciative than ever before of the value of its trade associations. Their growth within the lest year is evidence of fuller appreciation of the mutual Interests of industry members. Unification of pur pose and concerted action by trade groups have been responsible for the many ad vantages gained In the last few years. The National Paint, Varnish and Lac quer Association and the International Society of Master Painters have a very close kindred relationship. You, the manufacturing group, produce the ma terials we, the contracting group, apply. This mutual Interest is particularly im portant at this time because of the many governmental agencies functioning for the benefit of the painting Industry. The Federal housing program utilizes the products and tne services of the paint Industry more than anv other groups of material men. The Home Owners' Loan Corporation, through the reconditioning work. Is using our Industry In greater proportion than others. We painters recognize the progressive steps you have accomplished in Washing ton In connection with both FHA. and HOLC programs, Our society has not been missing opportunities to impress upon such governmental bodies the im portance of our membership and the necessity for the adoption of certain beneficial procedures. We have been very gratified with all our contacts in Wash ington and have always found that the various bodies comprising the New Deal have been most attentive to the efforts of organized trade groups. We are particu larly pleased with the response given to us by HOLC. Not only has our association had ex cellent consideration from governmental bodies, but most particularly from your own association. Your president, Mr. Trigg, has had frequent conferences with representatives of our Society and has helped us In many, ways by his wise John B. Dewar counsel and by his spirit of co-operation. Our members are greatly impressed by the desire of. your association to work' In harmony with us for the solution of our mutual problems. During the past year a painting promo tional plan was devised through the joint action of both groups and particularly with the help of Miss Kent and the Save the Surface Campaign staff. While We have not been able to follow through with this plan as originally expected, our mem bership appreciates Its benefits and as soon as we have completed the intricate task of administration of our code, we feel positive that we will be able to enter into all the provisions of this plan', par ticularly those Involving finances, In a successful way. Plan of the Code The International Society of Master Painters and Decorators, as you are quite well aware. Is now fifty-one years old and while it has been quite representative in the past of the various' districts of our country, It now occupies prominence and importance never before contemplated. Within the last year, its membership has increased threefold. As of the middle of October of this year, the total, of its paid- up membership amounted to 4,563, repre- sentating forty-six States. It has a total of 314 chapters and twenty-seven councils. Because of Its representative character, the international society had no trouble In establishing itself as truly representa tive of our industry and sponsor of the code for our industry. Ths members of our national code authority are selected by the International society executive board and the members of the local code administrative agencies are nominated by our cnapters tne membership of regional agencies, by- our council execu tive boards. The International society therefore Is an organization of undLsput* value to $he industry. It represents tl second largest organized group of tl second largest industry In the Unite States, namely, the construction industry to that iyou may appreciate the organ zation of - our industry under the codpermit me to briefly outline the genert plan. The construction industry Is boun by the provisions of the construction cod The Construction League of the Unite States is sponsor of this code. This leagu la composed of all the national trad associations of the various elements o the construction Industry. The Interna tlonal Society of Master Painters anDecorators was one of the charter mem bars of the construction league, The construction code authority is com posed of one member from each of it: sponsoring trade associations. Gordoi Marshall, Boston, Is our industry's repre sentative. The second largest Americar industry is now unified and organized t< take leadership In the fight to regain Its Important part in our nation's business. The construction code Is composed oi various chapters, at present twenty-twc in all. Chapter I contains all those basic provisions common to all the supplemen tal divisions of the construction industry. The following chapters are individual chapters for each supplemental industry. The code for the painting, paperhanging and decorating industry Is composed of chapter I sand chapter III. The latter chapter contains those provisions ap plicable and peculiar to the painting, paperhangihg and decorating dlvisfon of the construction Industry. The provisions of chapter I of the con struction Industry code comprise three subjects of, particular importance to our industry: j. (1) Collective bargaining agreements to provide for' wage, hour and other condi tions of employment of the members of the industry. These agreements, com monly called area agreements, are made between truly representative groups or associations of employers and employees which, when signed by the President, are made binding upon all members of the industry within the region defined. To date, two of these agreements have been signed by the President, namely, Philadelphia and Wilmington, Del. A hundred or more such agreements are in the mill in' Washington, expected to be acted upon yery soon; (2) General administrative provisions for divisional code authorities, outlining administrative powers and dutes; and (3) Provisions regarding the filing of duplicate bids and the correction of abuses attendant on bid shopping and bid peddling. All local agencies of oar na tional code authority are now establish ing these bid depositories for their par ticular region. Copies of all competitive bids will be filed with the bid depository and will be checked so that bid peddling will be eliminated and the provisions o[ the specifications complied with. Most cities are providing for a common bid depository for the various divisional in dustries of the construction industry. It is particularly hoped that this one Proce dure will eliminate many abuses which the subcontractors have experienced in the past, abuses which have Jed to the demoralizing' conditions existing today. Administrative Plan The provisions of chapter III of our code deal particularly with the adminis tration of the code under the national code authority for this industry. This code authority Is composed gf ten mem bers, seven of whom are members of the International 'society end three or whom are non-members. It has opened up offi cial headquarters In Philadelphia, where alreadv a very good-sized office force is at work. The administrative plan of our code provides for regional agencies oper ating as the'state administrative bodies and local agencies operating as city or county administrative bodies. Regional agencies are now established In practi cally all the states and well over one hundred local1 agencies have been author ized to function. The tremendous detail of all this organization work has taken considerable time. It has been necessary to train the members of our industry In their administrative work. Chapter HI provides for the assessment of the members of the Industry for code expenses. This was finally legalized through an amendment to the code. Our asessment Is; 0.6 percent on the gross Spencer Kellogg & Sons, Inc. At the 1934 Paint Industries Show Hercules Powder Company At the 1934 Paint Industries Show OIL, PAINT AND DRUG REPORTER November 14,} 1934 25 amount of business, collected quarterly. The secretary's office has listed to date some 50,000 names, and these members are all subject to code assessments. Chapter IH also enumerates trade prac tice provisions. Amongst these provi sions it is provided that the product of the services of the members of the indus try cannot be sold, below coat, which is defined as the sum of labor, material, joe pliance with the code and to elevate, through education, to better teohnlcal and business methods. ' ---, .. , The value of associate membership in this association must be evident to all you manufacturers. You who are not now associate members are urged to become associated with us and take part in our activities and in our Conventions. Through the foregoing outline of the present program of the master painter, expense, plus 10 percent for oyerhead. A it is apparent that our interests Indeed further provision states that It is an unfair trade practice to execute work not m accordance with specifications .or to substitute materials or workmanship for those specified. We hope that.through are mutual. We desire to cooperate with your association in everything that is progressive-and for the best interests of this important industry. May we call upon you to stress in your advertising the value these provisions we may be able to eor- of good workmanship as being equally im reet much of the improper work found in portant to good materials. How often many instances where competitive condl- h.jiave you observed the products of your 1 tions have been particularly severe ana companies shamefully abused by appiica- abuses abundant. ; . , ,. tion in an unworkmanlike manner. The Violations of the code are handled by best material produced by your members two boards. Violations of the labor pro- is of little value unless it is applied in visions are handled by a labor complaints a proper way. I urge you to stress there board and violations of the trade prac- fore the value of employing a skilled tlees provisions, including the non-pay master painter to do painting work. ment of assessments, are handled by trade practice committees. We are very appreciative of the adver tising many of your members do wherein Our national code authority is now in they stress the value of employing a mas the administrative stage of code proce ter painter. May we request that you dure. The fcumulative stage was a long stress the value of employing a member and -nerve-racking one. Because of the of the International Society of Master tremendous size of our industry and be Painters and Decorators as a painting cause of the great number of individuals contractor. In this way the consumer may engaged in this business, -you can well more easily obtain a skilled contractor. imagine wo have plenty of problems to The events of the past year and a half handle in setting up a smooth-running, have decidedly produced a different mas administrative machine. We can mod estly state that we are perhaps better organized in this respect than any other of the subcontracting groups of tne con struction Industry. We still feel that we have far to go before we can be satisfied ter painter. He Is no longer the individual ist of previous years but is now a man conscious of the power of unified and col lective action. He -has a realization gen erally that the services of this industry are worthy of adequate hire. He realizes with our procedure. We do find every that labor should receive fair considera where a very fine spirit of -co-operation. tion and adequate pay. He, above all, Our members realize that If any industry realizes that nls industry is a leading needs a code it is our Industry. We do industry In the construction field and that find, however, many members who would no longer shall he remain submerged, sub be delighted to continue under the old ject to the connivances and the plots of laisaez-faire method. This group gener other elements, whose abuses have con- ally is comprised of those who either are rtlbuted to his present unhealthy condi rabidly partisan in their political belief, tion. He is conscious of the value of the or those who have been taking advantage international society and he is, above all, of the deplorable conditions of the last aware of the advantages of cooperation five years. I am inclined to believe that and organization. the latter motive prevails. The legiti Once again, I have to bring you the mate master painter, however, is most greetings of the International Society of anxfous to operate under our code.' A Master Painters and Decorators, and to general spirit of a revived industry is- give you their best wishes for a very apparent. I am sure that' this spirit will successful convention, be evident to you manufacturers as you I also bring to you the greetings of the contact our members. . ` National Code Authority for the Paint Achievements Under Code ing, Paperhanging, and Decorating In dustry and to your Paint Recovery Board Our national code authority has accom I also bring this message of greeting. plished considerable for the industry: (1) Xt has registered more than 50,000 contractors. . (2) It is organized in every State. (2) It has prepared a safety and health manual which is now before NTLA.await ing final- approval. (4) it Is accomplishing .an accounting survey and will devise shortly a. model estimate and bookkeeping method. In, the latter respect it has had considerable help from some of your members. (6) It has undertaken a publicity cam paign under th? very able direction of Without doubt, In the past few years, certain members of our industry through out the United States have not had a particularly friendly feeling for the paint manufacturers as a group. I think this is largely due to a misunderstanding. It may largely be due to certain associates, and a certain contact which has been un fortunate. ' But we assure you gentlemen from the standpoint of the national association and Its officers, particularly from the stand point of the national code authority, we have every confidence in the desire of you and your industry to cooperate with us a publicity director whom most of you in the elevation of the painting contract know. News releases are being sent to a ing industry to an industry which can selected Hat of some 500 newspapers and make a successful living out of a very many special releasee are prepared for honorable business. specific, purposes, such as radio talks and class magazine publications. A publicity President Trigg: Next is the presi hand-book has been prepared for all our dent's report to the convention, and if agencies so that local campaigns can be conducted in a well-organized and effici ent manner. Another hand-book is about to be released, giving society chapters a Mr, Melum, as vice-president, will be good enough to take the chair, I will present it to you. manual for their functioning. We have had very close cooperation with your Save-the-3urface Campaign and have President's Address jointly undertaken certain publicity re leases. President Trigg: Thank you, gentle (6) We have appointed an official trade men, I have a good deal to say to you publication for -the industry, the first issue today, and I have compressed it into as of which appeared, this month with 54,000 small a statement as possible. However, copies sent to the members of our in it is going to take quite a little while, and dustry. This publication will not only T am going to suggest, if I may, tnat contain all the official releases of our all of you make yourselves comfortable national code authority but will endeavor and bear with me I will complete it as to keep the members of our industry quickly as I can, as I devoted a consid abreast of the times and supplied with all erable part of this talk to the subject of the latest authentic trade information. Its code, and it will lead us right into the main duty will be to educate the mem program arrangement for the balance of bers of our industry to more faithful com- the afternoon. "A Great Industry Moving Forward" was selected for the theme of this-con vention for two reasons-First, because It states a fact; second, because in the process of revising and remodeling. our methods of thinking and our methods of doing business in keeping with changing conditions, we are making progress for a better understanding of our privileges and of our responsibilities to one another and to the business fabric of the country as a whole. We are making progress too, in a material way, because our sales for the first nine months this year are over 20 percent aaead o l the same period in 1933, The year now ending has made new history In American Industry. It has de veloped and is developing new philoso- . H. A. MeTum Presiding Vice-President phlea. Business generally finds Itself doing many things today more or less as a matter of course, which a year and a half ago would have been considered by most of us impossible, So far as our own Industry Is concerned, this twelve month period--starting with the amal gamation of the two national associations into the present National Faint, Varnish and Lacquer Association, authorized at our convention a year ago--has been full of development and activity, much of which has been in the nature of blazing new trails. . It has truly been a busy year and T want to take this early opportunity to publicly acknowledge the appreciation which I, as president of this association, feet to the many members of. the industry who have so promptly and generously sup ported our activities as officers of the organization or as members of committees and emergency group meetings, many of which have been called on extremely short notice because of unexpected develop ments which made Immediate action necessary. I want also to express publicly my very genuine appreciation to all of the mem bers of the staff who have worked so willingly and intelligently throughout the year and who have made many sacrifices of a personal nature in order that the affairs of the 'association and of the in dustry might be properly and promptly looked after. And I want to make it clear that this applies not only to the members of the staff In official positions and heads of departments, but to their assistants and the employees in the scientific section, the stenographic department, the general office, etc. It is incumbent upon me to give yo at this time a general summary of th year's activities, which I shall do by rc ferrlng to, certain principal matters, nc going into detail with regard to affair coming under the supervision of our se-v oral groups or committees, the chalrme of which wiU report for themselves durln the progress of this meeting. | Membership it la gratifying to report a. total dlrec membership in the new Association, os o October 3 Cl, of 768 members, 673 of whor sire class A, 91 class B, and 4 dose D In addition to this membership there i an underlying membership through Ioca associations of over 400, not Including th' class A and class B members who alsi hold local i association membership. The work of the national membershii committee J has been splendidly done am the thankfc of the industry are due t< the members of that committee who s< promptly and vigorously responded to th< call for service, r want especially to ex press my i personal appreciation to th manufacturers who have so promptly given their moral and their financial sup port to this new association by taking membership, thereby placing them solidly behind the, work which is being done ant providing the means with which to earn it On; and11 want also especially to rec ognize and express--for myself and th* other officers and executive committee o' the association--our appreciation of the very substantial number of raw materia' -manufacturers who have taken class membership thereby lending their full support toiour activities. It is a tributt to the vistjon and the co-operative spirit of these raw materia! manufacturers that they are giving us this support, making it possible (for this national association tc carry on its work In a more effective way In the Interests of the whole industry. ' Our membership work Is far from com pleted, as evidenced by the new member ships in both class A and class B, which continue to come In. 1 It Is, of course, a recognized i fact that ail members of the industry, whether or not they are mem bers of this association, benefit by the work done -by the association. It is con fidently expected that as those who are not now members realize their common interest with other manufacturers, they win see fit to add their support--both moral and -financial--to this organization. Local Associations During the year mos't of the local as sociations have adopted new by-laws tying them In more closely to the national as sociation and have perfected their local committee \ organizations which provide the underlying fundamental thinking and planning for -the Industry m a whole. The membership support which is being given to the local associations by class A and class B members in the national, sup plemented fey the direct class C members, is growing 'and will continue to grow. The local associations are fundamentally Important from the standpoint of first hand dealing with problems and from the standpoint of gathering together the com posite, `deliberate views of the various sec tions of thei country. So essential is this considered .that the subject of -local asso ciation activities will be specially dealt with on the program of this convention and it is hoped that the suggestions re sulting from a consideration of this sub ject will mean .greater activities and greater accomplishments for both the local associations; and the national association as well. i It Is only through such action that collective thinking and deliberate conclu sions on matters of interest throughout the industry can be accomplished, and it Is only through this national assodatlon that the industry can speak with authority to government agencies and to the Con gress Itself* As a result of our united strength wej are able to make representa tions and to present the industry s view point formally and forcibly whenever and wherever it: is necessary for the Industry to sneak. This national association is in fact the mouthpiece of the industry acting on the collective judgment and instruc tions of the industry itself. It is conduct ing the industry's affairs from an associa tion standpoint in a thoroughly democratic J. Meyer & Sons At the 1934 P*>:nt Industries Show Gender, Paeschke & Frey Company At the 1934 Paint Industries Show Atlantic Research Associates At the 1934 Paint Industries Show 26 November 14, 1934 OIL. PAINT AND DRUG REPORTER and non-partisan manner. Certainly there never was a time when the: suggestions end recommendations ot all -members of the mdustry-^mail or large--were list ened to and given more careful considera tion than they are at this time. Your Washington office is keeping its finger on the pulse of the industry just as closely as possible, It la constantly seeking ad* ylce ana cooperation from the members of the Industry throughout the country to the end that its service and Its activities may be most completely representative of all types, branches and departments thereof. ; ``These Things DonJt Just Hapn*n" One of our most difficult problems Is to keep the members of the industry familiar with the activities which the national as sociation Is carrying on and the results whfch are accomplished. This Is not peculiar to our association--it Is a diffi culty common to all organisations of a similar nature. Even though At were pos sible to advise the industry- dally of the things which we are doing. It would then not be thoroughly understood1 because we know from experience that much of the material which we distribute ifs not read, and If we Increased the volume there would be less of it read. In a recent issue of "The Open Door," our monthly publication, there was an editorial entitled "These Things Don't Just Happen,'4 I want to particularly refer to that because it is a subject which is close to my heart. There are many things accomplished for the, welfare of the industry through the efforts of this national association--and from which all members of the Industry benefit--which are taken more or less for granted by the Industry, the members not realizing that forces had been deliberately at work, fre quently for some time, to bring about these results. Our publication; 'The Open Uoor, goes regularly to all members and contains current Information of Immediate Importance to all. We urge its careful reading by the heads of each business and that It be then passed around to all the Interested parties In each organization. Scientific Section The scientific section has continued its excellent work throughout the' year, a re port covering which will be made to you by its director. I desire to call particular attention to that part of his report which will deal with highly Interesting develop ments possible from a recent atudy made on the ground of certain new products w'Mch seem likely to prove of very great interest and benefit to this industry. In Dur opinion there Is no more Important work which the scientific section can do than to be on the alert for improvements .n the products of the Industry, and the development of new raw materials and lew methods which will enable the mem bers of the Industry constantly to render greater service to the public and to con tinue their own businesses onl a safe and lo^nd 'DT'oftt basis. ; In addition to the specific work of this lection it has been called upon to do a lonstantly Increasing amount of technical vk for the code authority, particularly vlth respect to setting up formulae in connection with specifications and verlf"- ng cost computations. The code authorlfv las placed the responsibility for thfs part >f (ts work with the scientific section, laving entire confidence In Itsireports and :oneluslons, and I am glad to sav to the ndustry that this part of the code work las been carried on most expeditiously, jceurately and satisfactorily. working In collabor-tjon with our taHff jpmmlttee, the scientific section has con- mued to serve the industry on tariff natters, keeping In close touch with tariff levelopments, which incidentally bid fair o become of Increasing importance to this ndustry fn view of the reciprocal tariff -rrangements which are under! discussion, nd which will continue to be under dis- u2lon' are lnfrmed, until all nations vlth which this country does business iave been brought into consultation. Legal Department' The national association'^ activities hrough our general counsells office In matching legislative matters affecting the ndustry are outstanding in their import- mce. Constantly on the lookout for FedTal and State legislative proposals which night be detrimental to the Interests of his Industry, we have found-r within the ast year many cases requiring immediate ittention, as a result of which proposals Inimical to the Industry's welfare have been disposed of or modified'so that no harm has come to our manufacturers. Obviously, there must be some central paint from which these matters are looked after, and the industry has found and will continue to find a most responsive atti tude on the part of the national associa tion along legislative lines of common Interest to the members of the Industry, In addition to legislative matters, the general counsel has continued to carry on the work of the unfair competition bureau and has devoted a large part of his time to code matters. His work has been of Inestimable value both from the legal and the practical standpoint of our code opera tion. it Is fortunate Indeed that we have had someone with dependable legal knowl edge and experience to guide us through the maze of technicalities--some legal and some otherwise--which confronted ua in the last year, and which will undoubtedly continue to confront ua probably to an In creasing extent In the months ahead, . dean Up and Paint Up Bureau The accomplishments of our clean up and paint up bureau are beyond my ability to completely portray to you, This department, conducted at a very modest expense, is responsible for a large amount of additional business brought Into the market through its promotional activities, The publicity which Is given to clean up, paint up and fix up campaigns every year --the bulk of which Is in the nature of front-page reading matter--would, If paid for at the current advertising rates of the respective newspapers, represent a huge sum. For example, thirty newspaper pages were published in Buffalo, alone, in 1934. Our most recent measurement of clean up and paint up newspaper clippings received by our bureau in one season, when the bureau was subscribing to a paid clipping service, and which, inci dentally, represented only a part of such' publicity, was computed on this basis and found to represent a value of over four million dollars. Such advertising of the paint Industry could not be bought because the reading apace used is not for sale. Yet, publicity, great as it Is, constitutes a reflection or an auxiliary result rather than a fundamental initiation of the clean up and paint up campign. Baslcly, the campaign is one of co-operative com munity organization and effort, with door to door solicitation of jobs literally by millions of volunteer salesmen who have no interest or profit In our business, but who sell our goods for ua without material reward and with only the inspiration of their. contribution to community better ment. When I say millions of volunteer sales men, it is no loose figure of speech. Tne Chicago Tribune is authority for the state ment that In Chicago alone In 1934 there were 609,000 volunteer participants In the clean up and paint up campaign. St. Louis and Pittsburgh with i&0,000 each and Cleveland and Detroit with their working quotas, totaled over a million clean up and paint up campaigners for only five American cities. It Is estimated from reliable data that approximately 7,900 American communi ties engage in organized clean up and paint up activities each year. The mobilization of live flesh and blood human beings is the rock bottom base of clean up and paint up as distinguished from publicity. The mobilization of a great army of militant volunteers is big hews'--always-- and that Is why the newspapers---with the aid of the services of our clean up and paint up campaign bureau, devote their front pages, full pages and entire sections to promotion of this unparalleled move ment, the success of which spring from the cultivation of.the human Instinct for greater cleanliness, orderliness and safety of environment in the development of better living. While repair and rehabilitation of prop erty always has been one of the outstand ing alms of, our clean- up and paint up campaign, the term. "Fix Up,' heretofore more or less Informally used In the cam paign's promotion, has this year been permanently added to clean up and paint up, making the slogan "Clean Up--Faint Up--Fix Up' with consequent increased breadth of concept and public appeal. "While many manufacturers in the in dustry are taking advantage of this activ ity to promote their own business there are many more who are not but could and should benefit by It In a most substan tial way. Every local paint association and every Individual member of our In dustry should obtain the suggestions of our National Clean Up and Paint UP Campaign Bureau In Washington and should actively encourage and tie in with the local campaigns. Save the Surface Campaign The publicity work of the' save the surface department is a rapid-fire per formance which Is going on every day in the year, Weekly stories are released to the real estate editors of aproxlmately one thousand newspapers throughout the United States, These are sometimes used in part, but are usually used In full. Every time all or any part of these stories appear, it is another argument for the uses of the products of this Industry, con stantly building up good-will and selling a conviction to the public with respect to the desirability and necessity for the use of our products. In a recent Sunday edition of one of the large metropolitan newspapers, there appeared thirty-three separate and dis tinct paint articles, running from two Inches to a half newspaper column in length. Each of these articles dealt with some one or more uses of paint, pointing out Its value and usefulness for the pur pose to which reference was made. Liter ally, from the Atlantic to the Pacific the newspapers of the country are using this material In Increasing volume because they have come to realize Its source is impersonal. Impartial and entirely reliable. This kind of space could not be bought and It could not be secured and msuntalned by an individual manufacturer who must of necessity feature his own prod ucts. It is a well accepted fact that state ments of this kind carry more weight with the reading public than the more com mercial (and properly so) advertising of an individual manufacturer, and conse quently It is consistently creating a greater and greater paint consciousness on the part of pie public generally. This cannot help but translate itself into additional business for every manufacturer depengeiit upon his own aggressiveness in the distribution of hla products. ^ radio broadcasting programs Con ducted under the auspices of the save the surface department are now being regu larly carried on In one hundred and thirty-two stations throughout the coun try: Regular programs are supplied through-our office to all of these stations, which are making at least weekly use of them without any cost to the industry other than the expense otf preparing and submitting the program from headquar ters. Here again the value of this work cannot be expressed in dollars and cents, because there- is no definite way of ar riving at it. but it is most certain that it a of the greatest possible value to this Industry, . Better Light-Better Sight Campaign A new development which carries high potentials for the Increase of interior painting haB been the recent establish ment of a reciprocal alliance between the paint industry and the electrical industry In the promotion of the better lightbetter sight campaign through the co operation of our own promotional activi ties and the scientific section with the better light-better sight organization of Edison Electric Institute in New York. Essentially, it is Jointly recognized by the two industries that proper lighting Is largely dependent upon proper reflect ing surfaces,.and that when better light ing Is sold, better painting should be sold with it. The electrical interests have embodied this thought In their own ad vertising and promotion, and we are re ciprocating by urging thd use of more light and better lighting equipment for eye health, efficiency and comfort. This co-operation has already been taken up Intensively by some of the local paint associations, notably the Philadel phia Faint, Varnish and Lacquer Asso ciation, which has joined In the sponsor ship and promotion of a vigorous cam-, paign in Philadelphia In company with the local electrical Industry. The better light-better sight campaign is especially susceptible to promotion In the Fall and Winter months when the nights are long and the minds of people are more con cerned with artificial light than in other seasons. The sales arguments in this campaign are sound and logical, and I earnestly recommend that all local asso ciations and members of the industry take cognizance of this new sales factor, which haB an altruistic and social, as well as a business, significance, and use it for Increasing paint sales and profits. Trademark Bureau The trademark bureau continues to serve a very useful- purpose to those manufacturers In the industry who avail themselves of It, It is & place where any manufacturer in the industry can and should register hts brands to proteot himself from infringement. The list of trademarks and titles registered is avail able to all members, thereby making It easily possible for a manufacturer to check up on the brands now in userso far as listed with us to prevent his use of a name or mark already employed by some one else.' Furthermore, It provides an authentic proof in ease of later dispute as to the use and the date of the adop tion of a mark by any manufacturer who has registered it. This service goes back for thirty-six years, which means that there is already compiled a very valuable list of trade . marks with the dates of adoption, and it will become more valuable to the. industry as Its use is continued and enlarged upon In the future. Trade and Industrial Sales Divisions The two main divisions into which this industry was divided at the time of the creation of this association one year ago, namely, industrial sales and trade sales, are functioning under the guidance, re spectively, of the national Industrial sales committee and the national trade sales committee. In addition to the chairmen, the members thereof are chairmen of * local industrial sales or-trade sales com' mltteea, which arrangement accomplishes the spreading of this work throughout the country in the several principal com munities. and gives to each national com mittee the benefit of local thinking and action by such community committees. Certain sessions of this convention have been set.aside for their deliberation where their problems and plans will be fully and carefully considered. This form of oran" izatlon Is insuring a more complete and Intelligent consideration of the problems which confront our industry than has ever been possible in the past. . Committees I shall not refer further to the work of the national organization or any of its oommlttees or departments because our program provides for reports from them, which will be presented to the conven tion at the proper time for your infor mation and careful consideration. The New Deal I am using the term "The New Deal" as It has come Into use applied to the relationship of the government to busi ness and to our economic and social prob lems generally. My reference to it and my thoughts In regard to the several propositions which I shall discuss are presented to you strictly from an eco nomic standpoint and entirely free from politics or political significance. The burden of constantly diminishing business volume from 1929 to 1932 liter ally tried the souls of men and brought great business calamity and disaster throughout the nation. The suddenness with which this condition overtook us and our inability, try as we might, to shake It off, will remain vivid in the recollec tion of those men occupying positions of responsibility In industry, trade and com merce for the rest of their lives. The new Federal administration took charge of affairs In Washington in March of 1933 when the business and financial affairs of the country were at their low est point. `Various efforts had previously been made in an endeavor to revive busi ness, but without success. The new ad ministration wOs faced with the necessity of "doing something about It," and it proceeded promptly, under the vigorous leadership of President Roosevelt, to put into affect some measures which--drastic as they may have then seemed to be-- were intended to accomplish, and did ac complish, a return of confidence on the part of the great majority of our people and inspired a new hope for the future. Banks The first of these measures was the bank holiday. Serious as this action may have seemed at the time, Its wisdom was quickly demonstrated. Just prior to the closing of the banks, chaos reigned and bank failures came In an avalanche.- I OIL. PAINT AND DRUG REPORTER November !4, P934 27- Three months later, when business had kinds, of which paint has been an Im first draft and the revised code was.again quotations of; the Paint Industry Recovery stabilized to a degree, the member banks portant item. submitted to all known numbers of the Board. } . of the Federal Keaerve System had de More than two hundred millions of the industry. As a result of criticisms and Similarly the processing and package posits totaling: twenty-six billions of dol loans closed represent mortgagee taken suggestions which continued to come to costs with loss factors establish minimum lars and an excess reserve of three hun over from closed and restricted! banks and the committee, the code was rewritten not known to every manufacturer and below dred and fifty million- Twelve months building and loan associations. This oper less than six times and every time a re which he Is not permitted to figure. The later. In June, 1934 (the most recent month for which figures are available for the entire bank membership), the banks of the system had deposits totaling over thirty-one billions of dollars and their excess reserve approaches two bil lion--or approximately five and one-half times as much as twelve months before. In place of the anxiety of depositors which prevailed in March, 1S33, there is a complete sense of security furthered by the Insurance of bank deposits, and in place of "runs'11 the banks have an ation has placed these institutions In a position to.make substantial payments to depositors, and In many Instances to re open. As a resu.t of this program dis tressed properties have been removed from the market and owners of mortgages and real estate securities have a tinner foun dation under their Investments. The mounting rate of home foreclosures Is arrested and real estate prices are being stabilized to the advantage of all ele ments among American people. embarrassment In the form of deposits HOLC loans are amortized at a 6 per which they are unable to use profitably. cent interest rate over fifteen years. It Is In connection with the bank holiday in encouraging to know that already pay March of 1933 the life insurance com ments are being made to HOLC by mort panies put restrictions on Joans, which gagors at the rate of five to six million restrictions have been removed, ana loans are now being made normally. Statistics under date of October 16, 1934, dollars per month. National Industrial Recovery Act from the Association of Life Insurance Presidents, show an increase of 11.1 per cent in the amount of insurance written for the first nine months of 1934, as com pared with the same period in 1933. Business failures showed a decrease of more than twelve hundred in September, 1934. as against March, 1933. The Index number for business failures for the first week in September, 1933, was 60 per cent more than for the corresponding week this year. . The latest figures on net corporation profits available from the Department of Commerce show a total for the quarter In June of 1933 the national Industrial recovery act was passed, the purpose of title one being' to Increase employment and to encourage greater Industrial and business activities. The National Recovery Administration grew immediately out of this act, and It proceeded promptly to the acceptance of codes under which the various Industries and businesses of the country would operate; the members of eaoh such Industry or business being per mitted to write its own rules for fair practice procedure, subject to the ap proval of the National Recovery Ad ending March 31, 1933, of one hundred ministration and -of the President of the and twenty-four millions of dollars, and United- States; provided, however, that for the first quarter of 1934 three hun each such code must contain, In addition dred and fifteen million. The National to Its own fair trade practices, provisions City Bank of New York gives the net for minimum wages and maximum work profits of two hundred and fifty corpora ing hours, together with the so-called tions for the first half of 1933 at etghty- "right of collective bargaining." All of the slx million and for the first half of 1934 provisions of proposed codes were care two hundred and twenty-six million---an fully considered by properly constituted increase of two hundred and twenty per cent. The Ifew York Times Index of business for the week ending October 13, 3934, stands at 75.4 as compared with approxi mately 40, In March, 1933, a betterment of approximately 63.5 per cent as com pared with the depth of the depression. % boards functioning as a part of NRA and nothing was permitted to go into a code which was considered Inimical to the public welfare. . ' Especially was consideration given to the matter of minimum wages and maxi mum working hours, the purpose of those requirements being to raise the level of Home Owners Loan Corporation wages and to reduce the working hours In The next great government undertak ing In the interests of distressed property owners and in the interest of stabtization was the creation of the Home Own order that employment might be spread over a greater number of workers and to Increase buying power and the demand for products of Industry. While there is ers' Loan Corporation, generally referred still substantial unemployment of labor to as HOLC. Under the act creating this it has been very largely reduced, the agency. the corporation proceeded number -of workers who have been put promptly to take over--subject to certain back on payrolls being estimated at from broad limitations--mortgages of property seven to ten million, and there has been owners who were in default on interest and/or taxes, and who were threatened with foreclosures, the mortgages bein^ paid with bonds Issued by HOLC, which bonds originally carried 4 per cent In terest, the interest only being guaranteed an fncrease of from ten to tewnty-five per cent In the payrolls, due, I think it is only accurate to say, to the national re covery provisions. Increases in Employment and Payroll by the government. Subsequently, Con gress authorized the guarantee of both principal and Interest and the rate was reduced to 2.75 per cent. As to our own industry, the most re liable statistics available show that there was an Increase In September of this year, as compared with March, 1933, July, 1934, showed a reduction of 2,000 of 33.3 per cent in the number of fac mortgage foreclosures as compared with tory employees, and 50 per cent Increase March, 1933--a substantial decrease due in the total average payroll. Our in largely to the relief afforded by HOLC. dustry shou'd feel a justifiable pride In As of October 19, HOLC had closed B93,- the part It has played in increasing em 177 loans to a total of over one bi'lion ployment and the payrolls of labor. five hundred and eighty million dollars, of which about one hundred and fifty mil lion has been distributed in cash in local communities. To liquidate arrears of taxes and assessments on homes securing the loans, HOLC to that date has paid over one hundred and three millions into local treasuries in over three thousand counties of the United States. These sums have re duced tax delinquencies which were seri ous In many Instances, permitting count less communities to meet their payrolls for school, police and other service and to take care of other obligations. While the subject of the fair*practlce provisions of our code will be open for discussion in detail I feel that I should make some comments with respect to them at this time. The fair practice provisions of our code were under discussion almost continuously from June 5, 1933, when the code com mittee was appointed, until September 26, at which time the public hearing on our code was held by the National Recovery Administration, During that period of over three and one-half months, the code committee worked steadily to produce a vised copy was sent to all members of the Industry for further criticism and suggestions. . . ' While this was going on, meetings were held with various groups of the industry for the purpose of giving particular con sideration to any special problems .which they might have, all In an effort to make a code which would fairly and as fully, as possible represent the wishes of the Industry at large. ', After, having secured all of the criti cisms and suggestions obtainable from the Individual members of the industry, 'there were three concurrent meetings held to which all manufacturers of the Industry were Invited. One of these meetings was held In New York, one In Chicago, and one in San Francisco. The final draft of the code was presented to each of these', meetings in detail and action taken by such meetings on each of the provisions of the code and on the code as a whole. These extraordinary precautions to Insure full and ample opportunity for coneidera- tlon of all of the provisions In'the code were taken because it was realized that when the code was finally approved by the! President of the United States ft would become the law of the land, and every member of the Industry would be called upon to live up to all of Its pro visions. ' Code Administration I wish particularly to call the attention of the Industry to the provision made In the code for Its administration by which, the .members of the industry themselves nominated and elected the representatives on the Paint Industry Recovery Board for their respective commodity and community groups. The method of nomination and election, as well as the conduct of the election itself, was perfectly democratic and left entirely to the choice of the members of the Industry who would come under the provisions and' requirements of the Code. ' Ever since manufacturers in our Indus try have been meeting together for the discussion of common problems there has . been an expressed desire for the privilege of making agreements, one with the other, whereby abuses in the Industry might be eliminated by common consent Not until the national industrial recovery act was passed, however, was it possible for com petitors to enter legally into such agree ments Twlth the force of the Federal gov ernment back of them and with penalties provided for violations thereupon. For, after all, what we call the "Industry's Code" Is in reality an agreement between the members of this Industry, approved by the President of the United States, thereby making it legally binding and re lieving the members of the Industry under a definite provision of the national Indus trial recovery act from action against them under any antitrust laws Insofar as code provisions are concerned. Every one of the fair trade practice provisions In our code is of benefit to the members of this industry. Especially have the interests of the smaller manu facturer been protected and safeguarded. The limitation of terms of sales and dat ings is distinctly to the benefit of the manufacturer who doesn't have unlimited capital and protects him from terms and dating competition on the part of the manufacturer-better situated financially, The prohibitions under free deals pre-. vents extravagances In the distribution of gifts of one- kind or another, which was growing. In some instances these abuses had reached a point where salesmen of certain manufacturers were devoting more time to the sale of prizes, free goods and gifts or allowances of one kind or another than they were to paint, varnish and lacquer products. beneficial result of this from the stand point of the small manufacturer Is evident In a number of directions, notably the fact that In fsome municipalities smaller paint manufacturers who for years have refrained froin bidding on municipal of ferings are now coming back Into this field and commencing to secure some of that typo of jbusiness. The whole code undertaking was a new departure in our business lives, and it was not to be expected that every manufac turer would thoroughly understand all of Its provisions, and requirements immedi ately. We recognized that there would have to be education on code compliance and this education bus been carried on just as completely and patiently as pos sible throughout the entire industry. It Is gratifying to be able to report to this meeting that the great majority of manu facturers have strictly compiled with alt of the provisions of the code, as evidenced by the fact that the complaints reported to headquarters have Involved less than 5 percent of the members of this Industry numerically, ahd In the case of practically all of those against whom complaint has been made, wjj have found on Investiga tion that the Complaint was not justified, or If a violation had occurred, that It was due to a misunderstanding of a provision or to a mistake, and the manufacturer complained of readily gave his written as surance of future compliance. The number! of cases which have finally sifted down to an. ascertained violation without a satisfactory explanation and/or adjustment amount to sixteen, which cases have been formally reported to NRA with the request, lij tome Instances, for specific action, and In other instances for appro priate action bn the part of the adminis tration. These sixteen cases so referred to NRA. represent only eight manufac turers, there being more than one com plaint against! some of them. We have riot permitted ourselves to construe this situation as Indicating that everything In 'connection with the code Is working as smoothly as we would like. It Is too much to expect that any code or articles of agreement could be set up for an Industry as large as ours that would satisfy every manufacturer In every par ticular. It has not been the experience with any set of regulations or laws af fecting large- groupB that they were promptly and cheerfully accepted and. lived up to by all Interested parties. As a matter of fact, the Good Lord Himself was not able tb please everyone, and so it has been down through all history for the last two thousand years. The record of compliance of the great majority of the industry, however, has convinced us that the code provisions are acceptable to the Industry in the main. , There are no means by which every transaction of'every manufacturer In the Industry can be kept constantly under check. We must depend upon the mem bers of the Industry to report violations or transactions which they believe to be violations, in sufficient detail so that we may go directly to the accused manufac turer1--if there be occasion to do so--and determine definitely If a violation has occurred. ' Our primary concern Is to secure com pliance and in cases where it Is a first offense and we are assured by the re spondent that a violation occurred through, misunderstanding of the code or through error, we are willing to ctose the case by accepting from such manufacturer a signed certificate of compliance in the form approved|by the Administration, we have some cases In which two or more offenses by the same manufacturer are Included in the list of complaints we have filed with NRA.- It has not been the attitude of the administration Itself to deal arbitrarily with violators, but rather to encourage them to an understanding The corporation requires that all mort gaged homes shall be In a state of good maintenance and where auvisaoie allows code of fair practice provisions acceptable to the administration, which would meet the wishes and necessities of the majority Sales Provisions of Code The selling below cost article in the of their code and to live up to It. It la our experience with the administration, however, that they do not intend to permit a sum for reconditioning to be added to the loan. For the purposes of repairs and remodeling it Is estimated that twenty million dollars has already been expended providing employment for thousands of men in the building trade and stimulating transportation and the manufacture and sale of construction materials of many of the Industry. Its first draft of a code was submitted to every known manufac turer of the industry early In July with a communication requesting criticisms, comments and suggestions. A large num ber of manufacturers replied and all re plies were carefully considered. This resulted in a number of revisions In the code puts all manufacturers on the same bafris of cost figuring for raw materials, processing, etc. Advantages formerly pos sessed by large manufacturers in their bidding on large business, due to their ability to produce or purchase raw mate rials at lower prices. Is now removed In that all manufacturers for the purpose of code coat figuring must use the monthly flagrant violations of the code and wo are finding now, with the passage of time, a determination on their part definitely to require compliance and to take further sTBps. if necessary, when there Is failure to comply* r j It is our general conviction, based on nearly one year's intimate association with our code, that definite progress under s Bakelite Corporation At the 1934 Paint Industries Show . General Plastics, Inc. . At the 1934 Paint Industries Show OIL, PAINT AND DRUG REPORTER November 14, 1934 29 ft has been made. We hear statements to the effect that the terms, datings, free deals and cost provisions, etc., are being' violated, but it usually happens that when those manufacturers who make such state ments are requested to- provide us with the information gn which an investlgation coufd be based, they fall to do so. Furthermore, it seems clear that a new spirit Is developing in industry--a keener sense of "fair play." If, prior to a year ago, a manufacturer allowed unearned discounts, or if he made unduly long dat ings, or if he sold at less than cost, the incident was only of passing Interest to his competitor and no further attention . was paid to it. Now that we have a code, any such transaction is subject to criti cism, and properly so, by the manufac turer who knows of it. Sometimes he criticizes the code authority because -such instances continue to exist, when the code authority itself la powerless to do any thing without having the necessary facts. I should like to give you some indication of the progress which has been made under each of the fair trade provisions of the code based only on direct transactions handled by headquarters. Articles XII, XIII, XIV and XV XII--Misbranding, mislabeling and false advertising. Xin--Gifts to employees of another. XIV--Manufacturing restrictions. XV--Exchange of goods. There have been comparatively few complaints on these Articles--in the main have been disposed of satisfactorily and without delay. Article XVI--Standard Terms of Cash Discount Article XVU--Datings ` The definite nature of the terms pro visions of the code has made it possible for us to get information from a sub stantial group of manufacturers covering their first year's experience with the code term 3. ' On October 5 I addressed a letter to the members of the executive committee of the association and to the members of the national industrial and national trade sales committees, to the members of the credits and collections committee, and to the presidents of all local associations, asking a number of questions, as follows: 1. Do collections show an improvement at this time as compared with last year? All replies stated there was an improve ment !n collections, the percentage run ning from 1 percent to 10 percent. 2. If so, to what extent in percentage has it decreased the investment lb receiv ables as compared with sales volume? Practically every reply stated a de crease in this percentage, figured running from 3 percent to 30 percent--the aver age figure was 11 1/3 percent. Taking questions 1' and 2 together, the replies indicate a most decided improve ment :-- 3. Is the total of the overdue accounts smaller in proportion to sales volume than the comparable period last year? One reply stated "about the same," all of the balance were a definite "yes." In one case the figure of 50 percent Im provement was given. 4. Is the total of cash discount allowed larger or smaller, in proportion to sales volume? By far the majority of the answers stated the cash discount was running less. This is definitely constructive because It shows that cash discounts formerly al lowed after the discount period had ex pired, are--under the code prohibition-- not now being allowed. 5. Have the requests for unearned cash discounts decreased or increased in the last three months? Nearly every answer showed decrease. Typical of the replies we quote the fol lowing: 'The rigid restrictions under the . code whereby remittances must be mailed by a certain definite time have apparently had quite a salutary and wholesome effect. We don't hear nearly so much today about abuses of the cash discount privileges as we heard a few years ago and our credit managers generally throughout the country indicate that there is better observance of terms than we have * e>er- had before. ' The condition Is the' processing costs and the accompany very much better and the code should ing schedules, this Industry1 has for the have the benefit of it/' first time provided to all manufacturers In the industry accurate, dependable.figures 6. Do you now receive requests for dat to use for cost purposes. It-Is a well- ing terms, other fhan the dating provided known. fact that only very few mamifac- in the code? . turers have maintained coat systems in A few replies read "Seldom," "Occa sionally"--and many of the answers stated "No" most positively. The follow:* ing quotation from one letter Is indicative sufficient detail to provide accurate proces sing and packaging, coats and to provide correct figures to. cover losses in handling of raw materials and losses in. processing. fo the responses: ' If there is any doubt as- to the correctness of this' statement,, it would only be neces "Little by little merchants realize sary to go over the several hundred're- that the codes are to be respected be plies received to a questionnaire sent out cause of the good effects on business, at the time the first set of processing costs and no one being inclined to give any was published to realize the almost com encouragement to special terms prop- plete absence of dependable manufactur oaltions they little by little recede and ing costs, " . gradually, come Into line on the basis of the regular terms of sale." The natural result is that this element of cost entering Into the total cost has largely been guesswork. . Sometimes it has Article XVIII--Guarantees been built up on an average basis by a manufacturer's dividing the total factory Article XIX--Consignments expense for one 'year by-the total number There have been few complaints under these1 two provisions, Reported violations of time guarantees have been promptly and satisfactorily disposed of. There has been a good deal of interest in the consignment prohibition as evi of gallons of all. kinds of products pro duced, and using the resultant figure as the cost per gallon for making everything produced in his plant during the following year. An illustration of this Is that of a manufacturer who reported to ua: that, it cost 10 cents per gallon to make lacquer denced by numerous requests from manu thinner, 10 cents per gallon to make clear facturers to know whether certain. Jobbers' or dealers' names had been reported to us in accordance with code requirements. Such information has been promptly furnished. . lacquer, and 10 cents per gallon to make pigmented lacquer. .. ' Now. a very definite service has1 been rendered to the industry -In that a master cost accounting committee has worked out Article XX--Free Deals what are believed to be fair and equitable We have had a great many, complaints under this article. It is the first oppor tunity the industry has had in a legal manner to limit premiums,- prizes and ' cost figures and which we have been able to give to the industry in a legal manner for their benefit for the present and for the future. ' awards, free goods, to the benefit of the industry as a whole, It. is well known that the practice of distributing gifts of one kind or another had grown to serious proportions in the Industry. The Paint Industry Recovery Board recognizes and takes the position that there should not be unreasonable restrictions put on the merchandising activities of the mem bers of the industry, because to do that would result In curtailing sales, but it does feel that the provisions of Article XX are reasonable restrictions which do not unduly hamper the industry's sales activities,' but do prevent wasteful com petition between manufacturers in the giving of free gifts. Our investigations have developed some cases where, while' the offers made were not technical violations of the code, they Process Costs Studied At the time of the last extension, given by NBA to our processing costs, they re quested that a study of the figures being used be made by some IndependentAgency competent to 00 such work and that a report thereon be made to the administra tion. This study is now Jh progress by Peat, Marwick, Mitchell & Co,, certified public accountants, and it is .expected that they will have sufficient figures from which to draw conclusions and make a report shortly. It Is possible that as a result of their study and their conclusion* some changes in the figures now in effect will be'made. * >We welcome the opportunity which this Investigation gives us under official auspices to make further refinements in were nevertheless violations of the spirit of Article XX and- we have found, in the cost schedules; if such should be the result, because our concern Is to have all the main, a willingness. on the part of the figures on these schedules just as manufacturers generally, when such situ nearly right as they can be made, in order ations exist, to revise their propositions that the administration .need not hesitate so that they ere fully within the spirit to approve of them and In order also that as well as the letter of the code itself. the members of the industry themselves Article XXI--Discontinuance of Shades and Colors . may feel, perfectly safe in-using such schedules as their mlnimums: and have complete confidence in their own costing There have been no complaints with work. ' ' respect to this article. Regardless of the accuracy with which Ariiole XXII--Selling Below Cost such costs are set up, it Is impossible to make them fit exactly the experience of Since the original code was written there has been an amendment to section 4 each manufacturer on each product he produces. Some factories specialize more of article XXII permitting the Faint In dustry Recovery Board to classify the products of the industry for the purpose on certain types of goods than they do on others. . Some factories have occasion to produce more small'batches than others. of establishing processing costs, etc., which cost schedules have been in effect Where a manufacturer's production is not fairly uniform in the general paint field, since last May. This article" is of outstanding importance he might find that the processing coBts on certain items may seem to be a little to-the industry. It provides a known basis for establishing a cost below which sales must not be made. It must not be high on some of his production, and pro portionately low on other items. The variation, however, Is at most a slight one, a "stop loss' provision. It must not be confused with the so-called "open price" and when it is recognized that a slight variation--one way or the other--occur provisions which appear in some codes, ring in one element of cost which in itself and under which members of such Indus tries must file their selling prices. Is in the neighborhood of only 15 percent of the total cost, it will -be seen how unim Under the code cost figuring require portant such variations realty are. ments, the costs of manufacturers may and do vary depending upon their formu lation and upon the availability of raw material markets. The manufacturer is limited in the raw materials costs which he may use by the figures which are pub lished in our monthly replacement cost bulletin and -they are limited also to the minimum processing and packaging chargee with accompanying loss factors, as set forth in the respective schedules, In the preparation and promulgation o l These cost schedules are, of course, in tended to cover all factory expenses, both direct and Indirect, including superintend ence* taxes, insurance, etc. They must also be made to cover the operation over a full year rather than to be based on a time study, for Instance, of a single batch of paint. By putting this on a yearly basis, due allowance is made for slack periods of production, during which, obvi ously, the overhead goes on just the same --for periods when equipment is being repaired- and hehce out of-service--and all other contingencies. '. -We shall continue further to revise our processing costs as the- opportunity or occasion presents itself,, hoping eventually to have in the possession, of every manu facturer definite figures of a dependable nature which ho can accept without per- adVenture as his mlnitnums for this purpose. , The raw material replacement costs,, as published monthly, are serving their pur pose most satisfactorily. They have taken the uncertainty out of the situation so far as the manufacturers* cost figuring Is con cerned, in that everyone now knows that replacement costs must be employed. ssPJKially on bid business, manufacturers have oftentimes been In a SiIa.?.2ary " 10 whether or not they should raw materials at lower than the market, if they had made favorable pur- chasee, and in a like Quandary as to what hiTM Jhoy thohiseivea did not happen to know f:wrabls TMw material costs but ftSirin^iirf orator who was also ifum?? 2!cil an advantage. 1a hofhlng* in the raw material r^P1i[ac*pht requirements that interferes in ?^htest with the manufacturer's buyTv "Uttsrlais just as favorably L with^&qh? n11* E5?8t Btart *4from scratch" fellow Manufacturers insofar a* figuring under .the code Is'concerned.' ' therinhU3tryi; I1I 13 ETMtftyS^ too^that i';afntSh^thheeris!dat,tvocljil 'zf&P uml$S5ns`of elthJ" say t0 1TM" th/hthe criOL.ciS3,3 JK Processing costa or market replacement or tent Sdtrtefr weata| SSS Meh^tathaefle/Se Wl thL some wirt of-:iae ufi^gfurfe^s iwUetyr>e vtoisoinlowa. ndIt bisirda lahir, 5r a ?* those men who so unseif- ieni? their talenc fo these prob- ;ei!23-nd wh0 Are continuing to do 00 and .they are certainly entitled to th* asra Whole** appreclatlon o the industry While we do not feel that the seJllneSS?WitC?st pro.vis.lc,tiS of our code are per? Sw**5J**5 SUGil an improvement over the * conditions of the past that ft Is difficult to realize why any manufac- coStmi*?UIJnd?lstry should attempt to >hw Iiert Provisions or do any- 55 ^ich' would tend to diminish on1veClfacy 5? They3are not 55 L<of ^mediate benefit, but hold out future* f even gTeater benefits in the The cost provisions of our code apply l5-~ajL?r0liUcaic!f the Industry with the n*PeJr4 i fts sated in the code. Their RraJ? S41 usefulness, however, Js largely BP-pAIled "bid business," where members of the Industry are in competition with! each other on specifica tions goods and similar inquiries. There is a noticeable improvement In the bids made on this class erf business, although the range frpm high to low continues to 5? one. The improvement is in 5? POttwfi bids.! We all know how, on this class of business in the last several years, prior to the code, prices were fre quently made which represented a manu facturer s coat based on raw materials at irreducible figures and with none, 01 only a part, of the factory overhead in cluded. A good illustration of this is a road marking paint purchased by a certain state. Late last Fall a contract was made for this paint under the specifications of the State at 15 cents per gallon less than another contract centered into sixty day's ago.. This docs not. mean that any ad vantage was taktin of the State, but that the advantage which it did possess .last Fall at the expense of the manufacturer, due to the practices then in force, has been, corrected by the operation of the recovery act. : Farrel-Birmingham Company At the 1934 Paint Industries Show Stroock & Wittenberg Corporation At the 1934 Paint Industries Show Archer-Daniels-Midland Company At the 1934 Paint Industries Show 30 November. 14, 1934 OIL,. PAINT: AND DRUG REPORTER , JEfe Jiavehad more complaints under Arttcie XXH wan under any other one in,, our. Every complaint is given irmnediate consideration upon its receipt. The procedure is that we baloulate costs as nearly as, possible ;to determine whether there has actually been a viola tion. in the case of bids on specification g*aovoadilasbvlaien,tdtiitWwisnheeproesstifhbiele sfopre^cuisfictaotiodnos suacrhe figuring wfth substantial accuracy* It does not always mean, however, that our figures are correct, because the manufac turer complained of may have had some other method by which he formulated under certain given specifications Which enabled him to make the pi^ice he did. "Where our own figuring indicates there has been no violation we'so advise the complainant immediately without taking' It up with the respondent. If our figures indicate there has been a violation we then ask the respondent for a copy of his formula with extensions, which is promptly checked as to the accuracy of the figures used, as well as to determine whether the specifications have been complied with. We frequently find, at this stats' of the inquiry,- that the re spondent has not violated the code, even though our first figuring would indicate he had. In other cases we find that there has been a violation, and here appro priate action Is taken* It is not always possible to complete investigations of this kind as promptly as we would like, Oftentimes we must carry on considerable correspondence to develop certain points which arise. No complaint, however, is abandoned until a definite conclusion la reached and the complainant and respondent are both notified thereof. It is in this field where we believe much good has been done and definite progress madel Disposition of Bids Ab examples only, let ; me call your attention to the following,specifics cases; 1* A State purchasing agent refused to permit a manufacturer who bad violated the code cost provisions to withdraw his bid. A signed statement from NRA caused this purchasing agent to change his position and.permit the quotations to be withdrawn. The requirement was sub mitted for new bids and, sold at some profit to the Industry, 2. Several cases of bide below code cost have been disposed of by the business being placed with another bidder who did not violate the code provision, at the expense of the violator. 3. We have had several; complaints on bids made on specifications where physi cal as well as ingredient requirements existed, to the effect that the goods made on the hid would not meet physical re quirements, especially drying time. In several caees we have made up labora tory batches based on the /accused manu facturer's formulae and have determined without peradventure if the requirements of the specifications were lived up to. 4.. C__a_s__e_s of manufactuirreerrss bbiiddddiinngg oonn specifications oo_t f_ a bDuuyyeerr,,, bout withn txhueo nent way, I believe that the majority of business men would oppose the com plete abandonment of It* ofJ? , flpirl* % 5{?esa* we auat recog- SS?hitt fact that the setting up of the machinery to develop and administer codes JJJS-.0, Si??6!?4*16 :n? one which obviously oartdeitr* inImLanesbrhaeoojrnptausltlovaai<nr5*tSo.J perfect if time. working* Look.i.n"5g trmhniitnnnkiisnttrraittiiTMo.n__v_vh_a^,sV_nuiidiS_o*naed a_"g?o?o?d?'' job 1 in un(irtakI"g to Ita presem stater in little over a year. rt,,w hear complaint about lack or enforcement The administration has ' tion Is not willing to lend money to a property owner who desires to borrow it .,E?pfl'!. or, modernizing purposes and *ssume the full responsibility, then the government will guarantee twenty percent uf the total of such loans if the banker guaiaiSee?11 *nstltution deflires such a When guaranteed- loans are made, the government has prescribed certain broad general rules which must be followed. !hS55*a limitation in the amount ior the uso of the money--that the borrower's income must be at least live tim*s the amount of the monthly payment to be made, etc. It should be understood that this government 20 perSSL*? otteronly. In cases radical changes are to be made imme- dlately and that whatever changes are will 1,6 carefully considered aad `bought <TMt In collaboration with affected code authorities. We are Justified, too, I believe, in the expectation that as industries demonstrate ge^&bility; j_ Jiandle their own. co? Sfa bc,uyrTi^ - .t $!6 o31r=o result because of the * *1*"^*, Impartial code authorities familiar with the business, can deal with complaints much more expeditiously than any outside agency. Obviously, however such permission, If and when given, must Be accompanied with proper safeguards 2?i!,1lels 011 tn? I\art thc government {"4"l,-to,.pry`it th? Possibility of any injustice being done between competitors. Public?11 Iadustry taking advantage of the .uLhava mad `he suggestion to NBA, that as a part of reshaping Its work re- E5?44iSla.401de authorities be permitted to enforce their own- codes by being given permission to take -cases of violation directly into Federal district courts where the transaction is interstate. This would 2S5--J--'2---!--S---5--vr "--2*1 *p'*rvTM*P*^`i aa-cvitkiiouini .atwnidn results. Some States, particularly New York and Ohio, have made national codes, where they exist, the codes of their own State, thereby making It possible for 5..22?. t0 ^ke its intrastate cases Into the State courts and secure ETfw pt **. v. -. . een recommend-ed to the ^ministration that they use their good offices to secure similar action In thereby facilitating nation wide disposition of Intrastate cases.- Without a code the progress which has }?eT1 ^ado in the last year by way of improving competitive conditions would and_itV^ *MIt would prob- a ny/e ? ,klnd of warfare, su.t* :w provisions of our code are distinctly beneficial from a competitive standpoint. When thinking of the code bear in mind all of its provisions --not Just pome one that we feel par^ilar!,y bother? *?s at the moment. Xt elves us a control over terms, datings !?!^?J2T!es_ei,.*M50n' ud other fundamental conditions o*f the greatest importance. By L'UL'V*1* wul ^onstrucuvo support to the ______... . , ... . .. ,,J? ottor .oases the banker win make his own individual arrangements -with the Property .owner, or the property owner will arrange to have the work done on some other instalment payment plan* If there Is one available, while in many cases the property owner will pay caeh +? work when it Is completed. In tion of heating systems, roofing manu facturers, etc., that over 60 percent of all property owners who arrange for payment on an instalment basis, actually pay cash when the Job is finished. It would seem as though in the consideration of this subJcct too much emphasis has been placed " the arrangements for financing* I would like to make It clear that the primary purpose of the housing act is to encourage property owners to go ahead with their repairs at this time and on their own financial arrangements. The financial assistance under the housing act is only for those cases where Jobs cannot be otherwise financed. The whole undertaking is of primary and special interest and advantage to the paint industry* There will undoubtedly be m,--an-y -e--x---c--l-u-.s.i-v~e paint JJUoNb0s done ^as a ESJW j** while any other repair work which is done will require the products of pur Industry to a greater or lesser extent i11 completion. The government' has louna .ou*ut fro" ----v--e---r-y---c--o---m---p* le* te ch* eo-k-up eighteen, million homea In this country fifteen million are in need of re pairs ranging from a, minor to & major nature. -Al] averttSf of $50 per home spent for repairs would mean a total of seven hundred and fifty millions of dollars, and such repairs pn BO percent of th homes SSJrS.inl8,11 hundred and seventy- +^ * dollars. To whatever ex tent this activity is carried on, the paint ean5,Q} kelp but benefit by the "??}a share of it directly, and our Industry will of course be a further beneficiary in the genera! improvement in business con ditions which wilt result. This is like the UlB.r J'-Ift118 worked out by the govern nFfimyivlulertanorntt.udllrr WdsBhnnooPiLfilStesnl Sih4Vena>nrlLlnTf+AriTe--avS+*^lAi`zS_e_f_tT_*o^*.i,n"'*TM_iIi.S*t ..o,"nrlyfceLi.fU !?wJ_e 5?tth3thr4a4.44 liIy K,ossiWo and consistent welfare the elimination of ,`n,llJ8trJ> `he price of which b^e^s^e?8 imm r a,10ther is atd aoouelation with the recovery tll<1 rast year convinces ^^that with tn amcat-and Jieartv sun. 0"rLof industpr and business these Pm- grams can and will be made to serve a lfai!rl>osa *or tho ben6nt of all of us II these, programs . fall for lack or Operation on the part ' of industrv are business, and if Iniuniri ttaUS?vTM altitude of leaning to much *on leadmBhiD m8a*ud upon 32 takenw? .h.svarious steps to be with nS?e dJL^n ui.te to faced ' "fa3tic regimentation of |nnPi and more and more aovemmss. control thereof, because of our faimS |tTM^ a profit, /qUVo"n whi^Tnato^Uy of 5al wo.should eventually be faced win. Wifp SiSSfs i to the man who S2? im2L iOT 3qoceHa f Soared fsomegSSwondir bccn'impoM'lWo? ' l?venesT 1 the future hoIdsn?m,S Iaat and ness than we have evm4v^r.?^rateT %u5i_ The housing knwn heretofore. desirable market f?,rnSn,U^ 3n especially addition to that we past four yeaTM th? ^S(2?^?Pai,^urlnS 013 properties in this coontJLC4ndl5.ion 01 t-be neglected, wito theresui? b.ven af-11? volume oC aaint tba:f therQ is a throughout theisnri &k t 3 J^med up 3 (f V ; S ? ML urge that th^JSfto their own houses in ord^*^^> get Provisions of *nT 3&a5olfc!5!r*!g Intention of supplying material different NRA movement as a whole and to our t?L6 nrmnp+nh7. P^rt tn cashing in on a passive or indifferent sort of tom LTMd spiolficitAs, have been cor- own industry's code TOeciflcally? we ehaP hear X stStamlnt msd. I^qu4unstly thevnTMf ,ve' *setef$l mln0r rAeocttPe.dd and such bids are now being made without any misrepresentation. B, In some cases we have secured co operation of government departments by having bide rejected . where below cost prices were quoted. ; The above are just a few of the cases, cited to indicate the results accomplished. They apply, as stated, only to matters which have come to headquarters. _The Sg&sg-SSSS!$g Tnnct,,h.*e~,inaaduurs,ttPry' through thhea' Bstfangpeo norf refinements and adjustments, and Just that much quicker bring ourselves to a P'a<]0 whsre our code will in reality bs the charter under which this Industrv operates and will be respected and ob served by everyone National Housing Act **! <?." ? >* a*2nad *t-uha*t thine has bean dotnheatbvthtihsethgionvg? they revive their corfldB/s fir . t eminent to `*prlme the pump," One of our trade papers recently discussed the bust priming the pump" and called attention to the fact that merely priming ?hpliSiTM<wClu d d0 ,no EOod unless, while the priming was going on, some one vleor- wort:] the pump handle. The com- 5S,TMS of Ahe governmewnot rpkirnimg,inogf tthhee ability they will .I?4,8X161,4 01 their trieonneswoefdlecaodirearisrehipa?an?dcei^Ssfsfaltt?`Toen' aaRndl tmlc~ with to caaVoTBi, ahead able throughout tbe^hmSti^11 e!i avail- of this land, length and breadth niatwr-- rate sections throughout tIh^el_ccooouumnnttrpiyri,ahinavtee handled most of the ------ directly and with but few exceptions have disposed of them on the ground, without the necessity of reference to headquarters for action. We do not have a numerical record of all of the cases:handled, many of which, as will be appreciated, are taken care of verbally, frequently through tele phone conversation. j From one community representative who has made regular periodical reports of all. cases which have come to his attention* we have a record of 197 up to the present time. It is not conceivable that such careful painstaking checking of all com plaints which has been feeing on In a systematic manner should not have im proved the conditions throughout the in dustry to a marked extent, We are fully conscious of the lack of| ability on our part to keep the industry J fully posted as to every comolaint which 4s handled and its disposition. ; far enacted. It does noott^cnotnetme?mDptlblaaette^otthhve*, but instead it uleee Spon pfopl bankers, marshants, and r.on- tractors, that they resume the doing of non,?6?s.a4Ltl`ey. ^toerly did in every fityJ*`b country. rln5erps ytoKp5ro.cTeerd promptiy with the ra? pair, alteration and modernizltit- 0f their homes, thereby starting the cofa?raS4,e industry again In motion. It must be an? Parent to all ot us that w -*., for permanent business reooye^Stllhthif in the^ag^ate empr0yrmoTMJm6r? than any otofrT* excepting only agrlcnlture, is really active again. The Federal Housing AdSyhn5wilsButtfrvaaf'l Ssp-psiaTS their rointfone onVwIor^e-'other,8TM^^ that if a banker or other fiianclal iSatu? wwwiltlhXb.,e* the -------r. flbouwsinoefsbs,usainedss, and priming pan>DS6B itself. " Broad View Essential yt^av?-ew_de5!-...*8033iMethat S-K"..aa^.,e5ro" om"e i>stresas, spuSchSatke "wSSe ^a\f f'<5t'en^y &one through, was necessary J? about a remodeling of our atfiSi!inn,,a0tr!na* 'f1 ,keeP*ns with changed conditions. Certainly we must recognize f,,S Blifht<med s19ahn3 teat wblng S* ?r? ai?,e a` *aTM of of the wheels Sororitnadnut sittrIys eaasnns<dei nwtihalattoistheewvhmeanoDwmlnoaersea i<TMmwa-r SSS"a4c,,Ii4m8nt.01' our people anfiP?he8futore ,-r 03r form'of'government?ltseif! We must have customers for the products {ten0wiflf<?hP*a` ??e TIeat toying power Ilea with the working, classes. With re balanced conditions should come, as Sr we Jhiaavve just lisftAennAerd/i Rtensi7*dtu_e* n_t,^^' ( S S?0 a * of the h>. dhtos thfs p,t year ofworklm?Ulf? eSUd (B6ltVn t0 the Proems d!s- hi?`ak thiisn opportunity Iofjnstatli,w??a?n14t 4to0 irontlcmen that in mv nnfnin ^ yon could htvtTn.L i opinion, no man faithfully foand "ore her r, -i.,1 , And benefitthfoLfnevMerry memS-S to ^"iS^rM "k 7U ra" \ f ( fpre MU<H6m0e ros ancj8 applauded >' . (President Trigg resumed the chabto Discussion of Code President Trigg: Now we are ready to take up the discussion of code* In this connection, let me call attention to the fact that we are under strict in structions from NBA not to reveal the name of the complainant in any case and that all examinations and investigations ASy .111^i.eTaj: must be handled confidentially* While on the face of it, it might toe argued that every complaint should bef reported to the industry as a whole, sober second Judg ment will indicate that this would be un fair and would work an unnecessary hardship on many manufacturers, at least f-,authority and compliance o? the coIa|nlent back f ths provisions I think we all know that It does take ^"daffe6cUnr/nblffbUn s8rtaklnsr of thls ( hundred and twenty mll- so long as we have been going through the stage of education and securing, com pliance. It. is possible that, as this work proceeds further we may reach a place where it will he advisable to give pub licity to cases of violation. If and when we do, we will, with the permission of NBA, be very glad of the opportunity to nut the detailed facts completely before the industry, and this in jltself will serve and K working smoothly and have everybody realize that it means what it says. We have plenty of evidence In the paat similar things that have taken some time to get them over but they have been gotten over. Now, in the interest of giving vou all of the information and all of the as a most effectual stoppage to further . deliberate violations on the part of any of the members. 'j . I shall report to a later session of this convention when the code is up for dis cussion, in further detail.. support W6 can hack of this thing we ?hiL .lnv4tea and are very glad to be able to have with us this afternoon. 4$e onsel of the compliance division of the NBA, Franklin S. Poliak. He has dropped all his .other duties today Future of MRA and is giving this afternoon to advise There Is much speculation as to what is going lo happen to NRA. I doubt if anyone knows definitely find In detail. It was brought Into being! as a recovery measure. It has not accomplished ail that was. hoped for it in tbe beginning-but It has made and Is making progress, for ug and, with us on this particular ques tion. thh, time I am going to take the liberty of asking Mr. Poliak if he will be good enough to talk to us from that standpoint. business has been and is better- There is more employment and business has been better this year than it was last year. With all the. criticism that has hmde of NRA, I nevertheless feel that !t has served a very) useful purpose a?1! 6 rrtade to serve even more effectively In the future and In a perma R.B.H. Lacquer Base Company At the 1934 Paint Industries Show Address by NRA Counsel Mr Poliak: I am very happy- to be ?PI ,*? b with you this afternoon, and imB*1stated*Ut lh fiuaatlen `hat Mr. Trigg T 5oiS?.,y?n .vTM ln`ersted in this, and nnertton "torc NKA.'8 a mTM lmp<>rtant , November 14, 1934 3t OIL. PAINT AND DRUG REPORTER There are several parts of the ques- tlon that I want to .t1*1 ha the first place Mr. Tries thought NBA was interested Jn slvl"K industry as much chanca to administer its own codes as possible. That is abso lutely true. We realise that the compli meiit of the assessment is not made wtihln thirty days, there are a number of things which the NRA can do. In the first place, I* d~ro-n---'-t---s-uppose that your code authority will want to imme diately resort to all of those measures* "T-** --------^ v,+f% o-nipin to the d^linquentsthat^they are* delFnquent and * . .. -Code- Enforcement - That brings me to the general question of enforcement* You need money to run a code authority,' hut the majority of your industries. I am sure, are going to pay their assessment and the general problem of enforcement and compliance will be more important TM 25?*!JHSS!a* helping this Industry In ..every way pos sible' for him to do It, This gentleman is C. B, WlHls, who is the Assistant Deputy Administrator ir charge of lour eode, working directly ir connec-"tinon ! Twti't'"h and' und' er- Depu`ty A' dJ* ministratori Dahlberg. who expected to be here this afternoon but on account of a ?ery ,1* ance enforcement situation depends to a large extent on the effectiveness of in dustry in organizing for administering its code, and we are not onlyrealizing IJiat, but we are tairing steps within our won organization to carjry that realization Into PI"we<haveCin the field, tor *"st^ |}?i7; a number, or several at least, of deputies whoset job is largely working with local code authorities, and state code author Ities helping them, to get organized and get upon their feet, Adopt tboir by-laws, getting their trade practice plane through ud actually starting. Those ^"Vnfs&aoonferring constantly with the admintstra tton members of those code authorities so as to give the setup a good start We are concentrating more and more in organizing the field divisions, of which Sosfdeputfis will be a part We want to give industry aa much of a chance aSNow,Cinion't think I need to tell you to pSint out that Parent eonyul- sory, but if that doesn't work, the code authority Is in .a position t^^nake a rec ommendation immediately to the National Recovery Administration for the removal of the "blue eagle" of those men. That is not the only step--there arc others--but I want to pause a moment on that one. Power of <Blue Eagle* A realize quite well that the "blue eagle" is now not quite the bird that it once was, but I think that it is much more of a bird than many people realize. WSleaeLstS,inwtteoh%es,,ee,,ece,,oTmhBw"-PUphaPlai.at,itnasc*inte sd'- d"cce-ill-vvaai--ewwsriss-yon"wddooe-n-eawwkv-,.ehheeaannt they close down on somebody. In a very large percentage of cases in which we reprise the "blue eagle, the person from whom it is removed finds that is very much worth his while to get in relation to the other eode Provisions. Now we do want your own code author ity to do what It can, and I know that It is taking its job seriously.and. working consclenttoUBly on the complaints coming In. It realizes the- importance of a carefully priSar<Triggapointed out to you the im portance of reporting violations .when you know of them. If we don t get complaints we don't know that anything is wrong* It is very difficult for us to act on gen eral rumors* I know that many members of industry have a certain feeling that it Is not quite fair or right to report one of their competitors .for a violation. The . system d^n^workuniels ..do report tthheemm ffoorr vviioollaattiioonnss.. I----d---o--n---'t.me..an that you should go around snooping because there Is a-certain amount of confidence which you men have to have In one an other. But when you do find a violation, I say that It Is mistaken chivalry to re impossible for him to talk above a whis per, is not] here. Mr. Willis and Mr. Dahlberg have been two men In; the administration with whom we have, fog the last month or two since they have toeen In charge of oUr code, had the very closest kind of contact, de tail contact I want to say for them that they are both men who when we go to them with problems of our code in our Industry they start to work immediately to help us figure out what can vbe done, rather than to .do the thing that so many times hap pens in our human relations, as you alt know, to turn their minds on to the subject of why It can't be done. We have: got constructive cooperation in the administration leadership and head ing which we have had officially In the administration, and it Is a great source of dally satisfaction to us that we have got that kind of men to work with. that aa applied to your own Industry. From what I have been able to gather from Mr. Trigg, in the short time! had to make inquiries in the office, 1 find that you have done a big job on your trade practice complaints already. You have had quite a number of thorn, taken by themselves, or perhaps not many It back 4rainr and to do what Is neces sary to get it back, and to make restitu tion for his violation. A If a man does not pay his assessment we will remove the "blue eagle. We will do that because nonpayment of the assessment Is a code violation, and we remove the "blue eagle" when code vlo- frain from calling that to the attention of the code authority, ___ There Isn't any other way of having the machinery work, apd the complaint is none the Io b s well founded because you have been Injured by the violation* You should not only report it but you should report it with full facts so that the code 'authority need lose no time in getting up Now let's talk about it The meeting now is in your hands, and anyone who has any suggestions to make, who wishes to discuss .the code in general, or any of its provisions, or any angle involved in the situation, we would be very glad to have them do so at this time, Discussion by Mr. Callahan been completely aisposau %/+* a relatively email number of them m the process of being handled, and a email portion which you have to send over to NRA on account of not being able to dispose of them yourselves. Now, it is not only in giving industry authority to handle its own that we are devoting our efforts In NRA. We realize the compliance situation, and another way in which we are trying t? meet that Is by concentrating our at tention In NRA on that subject.___ I can give you several examples of how we are doing that- ,, . In the first place, the compliance divi sion, the chiefs of the brsiMhesof lt.bad a conference last week with the National Industrial Recovery Board on the corn- planet, situation. That to one-of the regu- fuaur conferences which the biq"prd Is hold ing with all divisions in NRA. latiQnf say^the effectiveness of that ac tion Is very substantial. In many cases, especially where the manufacturer makes a product which Is known to the Public under his name, and even when it isi not known that way, you will find that a great many people who because they are supporting the recovery program are dis inclined to buy from a manufacturer who has been announced as in violation of the CIf%he removal of the "blue eagle*' does not work, there is another step which can be taken. As I say, nonpayment of the assessment Is a violation of the code. That makes the person who is vio lating ineligible to supply goods to the government under government contracts. . it not only makes him. Ineligible as the main contractor, but it makes his mate rial Ineligible- as material for the sub- C0Aa rm"ann\hwno itso ssuemlliinKgJ.pu "*-;*??,,owov,4--.TM-- ' mant as you know, must obtain from the complaint in proper form and passing on it and handling it as effectively as it ^Now, In some cases, the cede authority will not siKv**d. There are a few now which It has not succeeded, and that puts squarely up to me government the i.nt tmn eofhJr to do to back up the code authority in such ssiittuuaattiioonnss. Is It going to let the loyal compliance members of Industry sit there, or shTM there, complying with the code, doing their best to help out the program and live up to the letter,and spirit of their obligations white competitors who do not have the common good ftt heart, chisel and violate the code provisions and take the business away from loyal ones? . Now, I assure you gentlemen, that the government fully realizes that situation, and there-isn't anything which gives more concern to the members of the adminis- `tratfon. or the members of the compliance division, than to see that situation arise* P. H. Callahan: I was very much pleased with your report I have a doubt uncut this NtA, but x hadn't given the Idea up as being a failure* While my own business hits not shown such increases as you generally report, nevertheless it has had an increase over But whan you coma hare with thane facta and these figures it removes any doubt that I might have had, in my mind as to its being very helpful in our in dustry and ,, our trade. "What I am here to say would be largely seconding- the motion Mr* Phillips jrude some time ago--the question is put ratner quickly--that the success that you report, the working out of this code ana the regulations bringing such excellent re port in owu.eetiong and investments, and in profits is largely due to its execution here In Washington, You have very fortunately a whole measure of .respect and confidence of the and^dIs c u ms d^it w"h the bo^ Pand T* am sure the hoard realizesi that.com pliance is one 01 the major problems before the NBA. Bi taot, I am not tell ing- you any news In tellinE. you that No doubt, you have seen that in the "eNowaPtoSa!dftlony'to that conference, the'compliance fiivislon to having a con ference regularly with each one of the tndu!iTv divisions In the NBA, One of them is scheduled for tomor row afternoon and another one Is sched each 'subcontractor^ certlftcato^thatjhe materials which he is manufacturing have been made code, and that certificate cannot be truly made out If the manufacturer Is delin quent In his assessments. The penalty for violation In that way, by a person who is a party to government contracts, is that the contract may be cancelled and your code a:uthorUy Is fully posted on the measures to be taken when a situation like that is raised. The procedure after the code authority AAInIUd I cUattnll attiSsSsMulfrS^yJWou** t**h.1a**1t the compliant dlvtnloTi to aolPB Its honest level Ijost and more than that, and Is puahlne as hard as tt can to get enforcement of the coco provisions. ___ We consult with onr own litigation division, which to there In a way as an arm of the compliance division in the NRA as a whole. We are adding now to the number of lawyers in that division. We want to survey the litigation situation and see where litigation is needed to strengthen the position which we have trade, and I believe that more than the code Itself, or the code authority here, you have been responsible for these dif ferent progresses that have been made in the different directions- I don't want to give you Another rising vote of thanks, but I cannot restrain the thought, that Jt is due to:the leadership that you have given us, and evidently working so whole heartedly with the authorities here in Washington. X traveled considerably more in the last few years than I did in ten years. I spent two weeks In the Southwest end uled for the afternoon the day after to has certified to us that the member of the n<3j' know that the government is not ing Monday* Most of my customers are morrow. Closer Organization Sought The purpose of those conferences Is to knit the NBA organization closer to gether, so that the industry divisions and industry is delinquent, Is to notify the government contracts branch o.f the com pliance division that that member of the Industry is a party to a government con tract or is a bidder or a prospective bidder on furnishing material to- somebody else going to sit back and let the complying members of the industry be made suckers by those who axe not complying. The compliance division Is putting all of Its efforts to fixing that situation up the furniture people, and they are com plaining about profits, and they are com plaining about sales, and very few of them have A good word to say for the NRA. None of them has a business in excess compliance divisions will work as a team In solving this compliance problem. At those conferences the compliance division speaks through the heads of its who has a contract with the government. The government contract branch will taxe action from that point on. Your communications to the government as promptly as it can. and I can assure you that wo realize the importance of that situation and are back of you completely on that- There In nothing which we.regard as more Important, Perhaps there of last year; which perhaps accounts for my business not showing the Increase which the rest of these good folka around me have experienced. Then I come here and I find what we various branches in stating our Prob lems and In explaining any P. 1,ofs 'which the industry divisions want to hear ex plained, and the industry on this subject should i.ot be to the branch of the government that is making the award* it should be to your code author ity which in turn will come directly to Is nothing that wa regard as equally im portant, and that to certainly what the people there are working at now. We want to back up your code author have been able to accomplish and it is markedly the other way. In fact, I came here expecting to complain* I know that the lumber people have been able to get their part ask questions concerning their . the government contract branch of the ity, we know your eode authority wants prices that they never heard of before, own problems and anything about what compliance division* to back us up. I feel sure that after the that their business was all cut to pieces WThose*3conferences have been found to be very helpful to the industry divisions and also to us, and as I say they are now In progress and I am sure you can count on increased effectiveness and in compliance problems coming throughout the whole NRA organization as a result Now the regulations which we have got concerning the assessments also provide that the code authority can bring civil suit for the amount of the assessment due, and that measure will,be taken jn proper Bteps, and our legal division is busy now preparing a. law for such .a case and getting the papers ready and we are fNow! ^ur budget and assessment basis c-olng to bring those cases where we have have recently been approved and 3^our notices for the payment of ajj,ess?i?f have gone out. The thirty-day Period has not yet expired, but the payment of assessments Is obligatory now upon mem bers of your industry, and regardless of whether or not they are principally en gaged In this line of business the pay ment Is obligatory. . That is to say, your iJJ, 3* tained an exception from administrative to bring them. ,, ... ..*, **_ X am telling you all this wltti the thought that some of you are going to fall In those assessments because as 1 said there are always some who want to leave the majority carry the burden which is extremely unfair, and one which I know that you want your code authority in the government to be in a position to prevent. order X-S6, and I think that you prob ably all know what that means as a . practical matter:--That members of yonr lndustrv are obliged now to ..50,? i fairly In the proportion prescribed In the code7to the expenses of code admlnistra- laose of another year or less you will be able to look back on these first years and see that In the time elapsed from then the situation to greatly Improved and that the benefits which you have received under your code now have been -extended, by more effective .enforcement of Its provisions. Thank you very much. Assistant Deputy Introduced President Trigg: Thank you, Mr. Pol- lctk t' just want to Introduce this young man here, to you. Modesty prevents his talking to you this afternoon,. but hie whole heart and soul, I can say to you,to back of this code and Its enforcement in and all losses for years, and that now they are making money, I know that the textile people have been doing the same thing. Now I was thinking of complaining why we were not able to do the same thing, but at the same time I would have sala that we have had abuses In our business, that I think do not exist in these other trades. They have been with us longer, and I don't! think that there is any In dustry in the United States that has such wild and woolly competition aa we have in our varnish and paint business* So that with my complaint that X registered, 1 would have qualified it with the con ditions with which you had to contend. But now I find that, regardless of all of these conditions, of the cut-throat com petition that we have had for ages, which, of course, brings out all of the initiative that we possess, brings out all of our energies and Ingenuity to meet, which are commendable virtues, but we don't have the profits at the end of the year that we would like to see .1 come here and find that It is not necessary to make a com ^ When you listen to Mr. Trigg's recital plaint, that you have dene as good as of what the code has done, and see the Improvement in economic conditions, i am sure you will realize what you are setting for your money when you pay your assessments, and you will not have any doubt that the payment of assess ments is worthwhile, and also the fact that you are getting a lot for very little 1/ 'l I / J. : "- .rx 4 / | the lumber industry, the textile Indus try, and X guess any other Industry, and I don't know how ,to go along to suggest the question suggested by the government official as to compliance. As I came in this afternoon I got a telegram from home, would I accept the chairmanship of a new NRA compliance and educational program--1 believe they lni?3your own cods call it--for the State of Kentucky. X had you Pay to support, and I think the re cital which Mr, Trigg has made of what the code authority has accomplished should eliminate any doubt at all aa to the worthwhlleness of paying those contri. buttons promptly. Now, as you know, there are some . j/1V* "` V( -vT> -wr--c-* * already dictated a reply declining what I thought would be a very onerous duty at thfa time* I am inclined to give it a little further consideration, if you are able to get up and make a report like you did, and I may consider it a little bit ^So16!* want to say that I am highly Members of the industiy_ who arei indined to lay back and let the majority carry the load for everybody. I am afrald that you. will find that there are some of those in your industry as there are in all other Industries, and 1 pleased with the report you made, but I don't think anybody else Jn the trade would have accomplished such a record and have been able to make such a re port. have got in. your minds the question ot what can be done about those members Discussion by Mr* Walker of your Industry who want to let you R. O. Walker; I do not believe that Ca'Welltrhe(ts 'you know, payment of the assessment is obligatory at ^0^ thirty days after the notice, unless within fifteen days the member has filed a pro test with the code authority cr with the ^tStoRrtl^sa\PfI"enrL"tsom^ 0t^roSEv1r "'arc promptlv disposed "'jJVuSTl %&* St pay- Reichard-Coulston, Inc. At the 1934 Paint Industries Show chivalry is the real reason why viola tions are not reported. I think that we are all afraid of our customers. ; If you tell some customers that they are buying lower than the code allows they will acknowledge it, and say they know It, but It Is no business of theirs, M in spite of that you report them, they blame It immediately upon you, and you have lost ft prospective customer, 11 OIL, PAINT AND DRUG REPORTER November 14, J934 33 not one that you have had fot-many years. That prompts me to ask this question; Does a buyer, with, knowledge that he Is purchasing goods at a price lower than the code allows, become liable for unfair practice of any kind? President Trigg: I will, ask Mr. Poliak 1/ he will answer that. Mr- Poliak: A few codes have provi sions which prohibit persons subject to those codes from soliciting violations of other codes. Where the code has such a provision, a person who violates it is guilty of unfair trade practice. Most codes, I am sorry to say, do not have such a provision, but we are working on that problem now, and we have heard from a number of sources that It is a very serious one, and there are some remedies actually In the process of being drafted, and I hope that It will be pos sible to show some results along that line very soon. Comment by Mr. Trigg President Trigg: 1 would like to say In connection with that subject, the validity of which, Mr. Walker, we fully recognise and appreciate, because, to a large extent, it is the crux of the thing Insofar as getting efficient evidence .which it is necessary to have In order to stop violations. We have made some very serious rep resentations on that very point, to Mr. WilUs and to Mr. Dahlberg. We have stated to them something which I know is not new at all, but We have gone on record, as far as our indus try is concerned, that there is question ing in the minds of many manufacturers as to the value of NRA and the code and codes. It doesn't apply to our Industry only, but I think It applies to-all codes-- because of the fact that so far there has not been that clean-out evidence of a determination to enforce the codes with penalties and punishments meted out where that should be done. It Js my own belief that the'most effec tive way to stop these cases, such as Mr. Walker referred to, and as we all one side, the , selling sldn of the Wfe Ifltbv are violaters and ask them to business, and the rates that they make. aaftfWfeir in black and white if they are they have-absolute protection on and there figuring on the replacement costs, on the .Un t arty <cfe]s^ltlng in so far as rates -are t-weery that most of them could not answer concerned and the government lias made awl would not answer that they were sell it possible and they stand absolutely book of it. - ing their particular product on the basis of those replacement costs. On the other hand. In their buying activities, they are Insisting that the -one ,Mr. Poliak: It certainly is all right to write such a letter as that and Z think who sells to them, should do the things that it might be very effective. which- they seem to have gotten out of Another way that I could suggest that and the things which they no longer do. might help you In meeting this problem Then there is another angle to that is that you have a group of buyers or proposition, and I refer this to Mr. Poliak, manufacturers who you think are not pric if I am not makiug a correct statement. ing on replacement coat, that you get The railroads who are borrowing money them all together in a room and handle today from the government, and some of them altogether. Then It would not be them are, are obliged under their arrange possible for each one of them-to pass the ment with the government, as borrowers buck to the other and say, "He will comply from It, to agree that in all of their trans with the other fellow when he complies. actions they will live up to the provisions We have used that technic ourselves Jn. of the code of the industry. Is that cor rect, Mr. Poliak? our administration through State direc tors, in getting together all members of a Mr. Poliak: You mean that they will particular industry in a particular city, buy only from the industry members who are complying? and we find that that la often effective. President Trigg: I would like' to ask President Trigg: With their codes. Mr. Poliak a question, too. On this matter Mr.- Poliak: I think so, but I am not of prosecuting' cases, interstate commerce,, sure, but I would like to find out and Jet you know about it. . or any case, ot course,'would have to go before a Federal district court; that fs President Trigg: But that Is one of the correct, is It not? The United States court problems, that whole subject of getting and not a local court, at all of the cases, and I submit to you, Mr. Poliak: Yes, as I said In the first place, and I am very President Trigg: Now In the case of much encouraged by Mr, Poliak's talk here intrastate, that Is a transaction that takes today, and I see in It a determination on Place within a State, in the State of New the part of the administration of the York, and in the States of New York and seriousness of this situation, and a deter - Ohio, at least, they have by legislative mination on their part to put their full action made the code of any industry ap support back of securing compliance and proved by the Federal administration the endorsement, and I berteve .that as we go effective code in the State, so that ih our forward in the next relatively few weeks, case, for example, our code is the code of that we are going to be able to get some the State of New York, as well as a Fed real tangible results which will serve to eral "code. . advertise to all manufacturers in the in The same thing applies in the State of dustry more effectively than anything else Ohio, so that we are in a position insofar that they themselves must ault any cheat as Intrastate violation in the State of New ing under the code of their industry. York, for example, is concerned, to go I think that that is the essential thing directly into a local court in the State of for us to do and I certainly am encour New York, with our evidence, and the aged. to believe that that is going to recovery board can be a complainant to happen. . prosecute the case. Is there some one else? I. would like to ask Mr. Poliak; two Mr. Macdonald: That is a question With a different angie, wnich involves the overlapping, possible overlapping of codes and that particular question ls be fore the administration for ironing out, and I am happy to say that progress is being made ora the overlapping problem. Questions by Mr. Merkin ,,ia- -1- Merkin: I would like to aek Mr. Poliak, through the chair--listening io ps statements, how seriously they Si3?,, that! TMPliance is so neces sary in our industry, and now hard we ?2.w2in,LtoW!if',1,that compliance, and toM ,aI? alr-i e statement con- Industry ana our code lhat, 80 lew complaints have been made, andi so many have been settled hTu"^eel'l?s'J and 01at 80 tow complaints ,the .NEA' directly--may I whetHer those few cim- Ee lJfcdVX* f thC NRA Wil! ver don t mean whether tnhoewy, aIreaamil fcwuhreetyhoeur can't0teFila but! S ~7, L ^jsiij out',i do know that n p a whaf dfano^itlriii tJ?*a ^ let *oU know aiapositlon is made of them, and is thS- Canne: r do that Just as promptly If-- toe went7S?thf(, a3d n0. dbt wbfn `M? r ti PeXeb?l 8Urate oSU^,1* aSfft toTe 'weT'to "Sr1 `V us s"to court--and they mayhve?? well^e thlt^ know about, or at least think wo know about, is to have some genuine enforce Discussion bv Mr. Zinsser questions. The first is: Is the adminis tration doing anything with respect to get fornft.^?iC^n t0 Oourt and we cazt\sfc JTM dou'tmTMfc?he ,lpeSk!tyd the Td" ment applied In cases distributed geo graphically throughout the country, be lieving that the enforcement of such ac tion will have a more salutary effect than spot where buyers have the least excuse, Notv- as to the specific point which Mr. Walker makes, we have had some dis cussion with certain manufacturers Who are especially interested in sales of the products of our industry to railroads. I want to be specific in order to make the point with you. We have been told that the purchasing agents of railroads ridi William Zinsser; J am just as delighted, as you are to have the NRA compliance' division here today, because I think that that is probably the domain of the NRA . with which we have created the less .amount of experience. As I heard Mr, Trigg speak, and X want to confirm everything that every body said about Mr. Trigg's wholehearted co-operation I think that the question or shellac gave them more trouble than all of the rest put together. I would Just like to say that I wonder if the compliance ting other States of the Union to -do the same thing that New York and Ohio have, namely adopted the national codes as their state law, and If they are doing that. Is there any hope that that may soon be accomplished? ' -I ffiean at least in the moat populous States where there is a larger volume of business done. Mr, Poliak; "We-are very actively work ing on that. We have got a Deputy Administrator for State relations, & S, Beach, who spends his whole time on criminally. We can if court cule the idea of a manufacturer living up to the code of his industry, and, in effect, the purchasing agent says to the seller who says "I am living up to my Industry's code,'1 "What is the matter with you; are you still wearing wooden shoes; why do you live up to the code?" It seems to me that that is the one stop where buyers have the least excuse, or have every reason for not trying to destroy the discipline of the members of an industry under, a code, where. they have every reason in the world for not trying to drive the seller into a position where he must do an illegal act by vio- latlng his code. We know that the influence and the power of a purchasing agent with maybe a twenty-five or fifty thousand gallon order to be placed--that that purchasing agent can pretty nearly break the hack of any manufacturer if he persisted in making that manufacturer believe, or try to make him believe, that everybody else Is violating the code and why shouldn't he do it. Now, when we say that that is about the last group that ought to do it, I base that on the fact that the railroads them selves--I think they were responsible for it--some years ago, because there had to be created the Interstate Commerce Com mission. Perhaps they didn't cause It to be set up. hut I think that they were bene ficiaries of some of its activities, be cause about the first thing that the Interstate Commerce Commission did was to order that there be no more secret rebates; that there be no chiselling on the part of freight rates as made by the railroads; that if they made a rate to one shipper between certain, points on a certain class of goods, that they must make that same rate available to every body else; that there must be one price Iti their industry. The government put director could let me know a little further questions relating to States, and part of ramification of the very intelligent ques tion asked by my friend, Mr, Walker. whose job is to see to it that the NRA mwa are enacted as widely as possible as ivslsimVsSH We are 'not concerned only with the purchasing agent in outside fields, X think that we, all of us, are NRA sellers, and. not NRA buyers, and we have the cure to a great part of the disease among our selves, We should, can, and'know how to recog nize quotations that are made us below replacement costs In all of the raw mate rials we buy. I? we paid a little more attention to- trying to figure whether a concern that was putting in a bid was honestly living up to the regulations: whereas, you can take your pencil and paper and' find out State laws, and he is busy on that now. There are now State laws in a number of States, in addition to Ohio and New York; Wisconsin has one and California nas one, and South Carolina and quite a number of others. I don't recall all of the States. But we can easily turnlsh that informa tion to you,, and I will be gald. to let you nave that, and at apy time that you want to get information about it, you can get fully up to date Information from Mr. Beach's office. Status of Shellac Cutters contempt of court can >2? pir-s,on lo KSS&3 *& ao? discretion of the jud^V^boaT Jn the cascsTA^deelsltJmk^alw v in Particular hearing, arid is ftLn?1,nAd * 5UC?5 * and to reeommjarrer*L Its case, thinks shouddMie11 taken. aCtlTM Wh*Ch A Now, does that answer your questfon, that the other fellow is not, that the fellow supporting the Industry, and who is supporting the government gets more recognition over the next twelve months than he has in the past. Now to get to my specific question-- I was wondering whether the evidence has to be so very tangible to cause the speed of enforcement. I probably could supply the compliance division with names of a score of people who, If written to by the code authority, whether they are sell OWalter P. Tarnall raised a nrifnt about the refusal of one seller to accept a code price provision. Mr. Q. Macdonald pointed out some of the legal queetlona Involved.) , C. A. Campbell: Am I to believe that tne ehellac code is in violation of the law' They have a provision, and If you comply with that, you violate the paint, varnish and lacquer code? Mr. Macdonald: A coat-finding- which iLapr.rl,ved-i n<L?r a 0046 ls nt a vlola- Mr PoiTai"-'/ a8 an answer. with Von. or avotTMyour Ssflon yroau MwoueldKt"el=l mW Y sw r0ne' * wl3h "<& `tfiJSSSSd 'R,h`S ing the particular product I am familiar with, according to the replacement coats, could not honestly answer In any way but that they were not. In fact, Mr, Trigg has several letters from concerns that said that they were honestly living up to the costs, but said that it was impossible, that no ne else was, and that they were going to disregard the costa, and gave public notification that they were going to disregard their costs in their quotations. In.other words, I would like to ask the compliance board if it is possible for the code authority to write letters to concerns that ia not Produced under the provisions of a code would he S3*'e^?f the. ,S de a,Kl therefore not , ,!P. the protection of the code, and a violation of law. ' L.eSThe shellac code, Insofar as it sets un a means of finding a floor coat price is room if you took a specific of course legal in the same way that our nnd satj85ed toere was a violation own cost provisions are lefral, havlmr heen and really acted, upon it, Immediately. ' approved by the administration code. the Mr. Campbell; I still contend that if you sell shellac In accordance with the terms ?5 to shellac code, you are violating- the 1va. i>eiisve. moet of us do that there has been eufficlent time for action at leant with one case, and if there wan ? Ycdf3B.1" vJn,atin on the paM^f^I of on?'tuWe?.W ^ to ^ `^ terms ot the paint, varnish, and lacquer ' maioHtle1tu Sf4:is too consensus of the to^0aftornuTM.ls;r00"1' if not a11 pre5en`. Itself in a position of backing the rail roads and Insisting that they do not cut prices and they do not make exceptions. I know from my own experience that prior to that time the question of special rates made on a carload of goods was probably the regular rule, and not the Answer j by Mr. Poliak nJ**u *=2*l.a^v * heard from Mr. Wil- Ue the details of the two cases that are Pending In the domplianoe division, r am exception. We know that passes were handed out. The government said, "No more of that; it can't be done." Now I referred a while ago to the. fact that there were evidences, or past experi ences and other activities, where they had to go through the same ground-laying, the same stabilization of confidence, building mv iKeofatoi,n3lstiathr ewy itdhone'tnycoomfe totoe my attention until later stages in th <VI?,e S handling, hut T have heard some details from Mij , Willis about the two +E13 T know' that both of those * vector6 now 01 betns ijrQaf*t I wouldn't try!to defend the time that up of adherence that we are going through In NRA today and I had in mind partlcularly this railroad situation, because I can remember in the early days, the first few years, this first order of the Interstate Commerce Commission, it was not lived up to by the railroads. Every shipper in the country didn't instantly respect that order of the Inter state Commerce Commission, and so they kept on insisting on getting a special rebate and secret refund and so forth from the railroads, and in some cages they continued to get it for awhile. But they lived through that stage of education* and today I don't think that 1M Srl04S t^ose ca3es were filed riff ^suiberR of the fndaustdroywanre-heaat roteudr delays In: pome Pltuations, and I TM tgpr anv excuse for them except ?rii?3.iil1iy of+,ihandIkis the volume of work and sometimes the neonie we have armlt assTCRd o$ we would like to have. r+ Tiff** !?u * to be said about ' it except that, but I can assure you that we dp realize the nerlousness of the mat ter of getting these cases hs.TitfTed proTnut- ly, and I do know that Mr. Willis is push ing these cases that be has. One of them Involves a ouestlon of overlepoing codes. *"aYb^we should have found oat sooner that the overlapping existed. there would be any shipper Who would lie foolish enough to waste hia time asking a railroad to give him a special rate or a secret rebate on a shipment where he had a preference over a competitor be cause he Would be laughed out of the court if he suggested such a thing. I am sure that nobody would be foolish enough to waste their time in that way. No shipper would ask a railroad to give Mm a pass to ride from New York to Chicago. Now, there Is a class of buyers, on the American Gum Importers Association At the 1934 Paint Industries Show But at any rate, there the question Is. and we can't dispose of that case until we have disposed of what actually is a real question as to which of these two codes the man comes under, and how you axe 'ofng, to reconcile, to solve a situation to Tafn?p,ly ttwoothceomde.s appear by their terms We have another case, and this jg a rase where the charge is a sale below cost, and we have had the formula that was given to us examined by our division of research and planning and submitted to a paint expert .there, and he says that 34 November.!4, 1934 OIL, PAINT AND DRUG REPORTER the formula works and meets the sped* which there are only fourteen in the different, how can you get a selling price about which Mr. ;Trlgg has talked so con ficatlons. ; United States--when we found that their of a commodity In the chemical field un vincingly this afternoon, we have laid the Also. I am Informed by iMr. Willis, If code also covered shellac varnish, or I less It contains certain basic ingredients! foundations, we have gone as fast, and I am wrong: I wish that he [would correct me, that the evidence which the re spondent in that case has given us of his cost-of filling the specifications shows that he is not selling below cost. Mr. Willis: That is substantially cor rect, but there are many technical details. Mr, Poliak: Now, I don't know whether those cases are the ones that -you have in mind, Mr. Merkin, and jl don't know about the others, but I certainly want to tell you,that we are there to push those cases through, and I think .that probably, the code authority wanted jis to concen trate on those two cases. We have got to a point in those cases now where one of them does not seem to hold water, and no-final decision has been made on that, but if it turns out that one of them does not we will certainly actively press on any of those that the code authority wants, and I think that we stand ready to hear Mr. Trigg's request oh benalf of the code authority for taking up and giving attention to any of these other cases. - think it doesn't specifically refer to that, but It covers those who bleach shellac, and any products made from it, or words to that effect, we then got In touch with the code authority of the bleached shellac association and said, "How about this thing7`* And.they said that they wanted to bring the bleachers of shellac who also cut shellao, Just these fourteen, under our code Insofar as their cutting of shellac was concerned, and It doesn't interfere with your code, and their code says we have notified the fourteen bleach ers of shellac that, Insofar as your code is concerned, they are subject to your code. We have gone along with no difficulty. We have had no better support, If as good support, from any. shellac varnish pro ducers as we have had from the bleachers of shellac, who also out and sell shellac. They have supported It when many of the other exclusive cutters of shellac wo know, or believe we know, did not sup port it, and they have worked on com mittees with us, they have given of their President Trigg: The j only answer I can make to that is In addition to what I said in my longer statement- today. The. whole subject of processing costs-- and I take It that is what you are refer ring to--ie being very carefully studied by an agency at the present time, who are getting the facts from a large num ber of sources, on which they wilt make a thorough analysis and a report, we hope it will result In further refinements of the processing cost. _ . ,. ... I think it is quite likely that It will result, and I have no advance Information only my own knowledge of the situation, I think it will likely result in further classes of gtfods, and further break down of the classifications which we have. There are twenty in number at the present time,, but when that work is completed, we will feel that we have recognized the condi tions such as you have referred to, insofar as they might require any changes in the processing coats. "We will be down to a basis then which we can all accept as the lowest reasonable processing cost. maybe a little faster than NRA has gone itself, in making. our organization our central headquarters organization, effec tive in laying the foundations for code enforcement ; We have also satisfied ourselves that it Is possible to enforce this code In situa tions where efficient evidence is readily obtainable. . This selling below., cost provision so far as public bids ore concerned Is "duck soup," and this question'of non-payment of assessments, is "duck soup," Because the efficient evidence is on the surface. The problem that I see around the various sections of the country la the problem of enforcing the code in the cases where the efficient evidence isn't quite so easy to get. I am impressed with two things. In the first place, during the year passed, we have existed solely on the volunteer or ganization. We have had twenty commun ity representatives, some of whom are practically giving up their business to work on this code matter. I will get together with Mr. Willis, when the meeting is over, and get myself posted on the status of the other cases, and we will see what we can do to ex pedite them also. . I am entirely with you on the im portance of prompt action, and that isn't just a stage statement or a gesture for this meeting. I know that there is noth ing more important before us now than prompt disposal, and in recognition of that importance NRA has recently estab lished some elaborate control systems, and some more soul-searching, ahd has set up an elaborate control division in the com munications division, so that every Incom ing letter Is read In the communications division, and any letter of .Importance is given a control number, and the man that gets that letter is periodically annoyed by somebody in the communications divi sion until he has answered It promptly, and if the outgoing answer doesn't seem to the communications division to be an answer to the question, it Ms sent back, and we in the compliance idiviaion have similarly established a control on our selves so that we can see that right in the compliance division we can! act promptly on the matters that are referred to us. We are also periodically Jogging the industry advisers on the matters that we send to them. :' We have decided that that is necessary, and 1 think that it has developed a con siderable improvement in ! the dispatch with which cases are handled. Comment by Mr.- Trigg time, unlimited amounts of it, some of them, to us in our code In working out this shellac situation. But while that was true as to prac . tically every one of the manufacturers who came under the bleached shellac code, we had one manufacturer who was a bleacher of shellac and who was vio lating our code, and we had plenty of evidence of that fact. Now that was In the phase of the rec ognition and acceptance df our code pro visions so far as the rest of the bleachers of the shellac in their shellac varnish business was concerned and their co operation With us, Of course, from a technical standpoint, that man was haled down here to Wash ington for a hearing before the com pliance division, and the compliance divi sion of NBA couldn't take Judgment, They couldn't act on this thing on the basis of what they might have liked to do--and I am not trying to give to them motives or desires--but they had to be bound by the legal limitations or require ments of the situation, and so that case was held up pending a clarification of this issue which has been raised by this one manufacturer. Ami stating the facts correctly? Mr. Willis: Correctly. . President Trigg: Now. that then ' 'rought us back to a consideration of this subject with the code authority of the bleached shellac industry. Our co operation there has been 100 percent, and you couldn't want anything any better than it has been. As a result of a fur X recognized in my paper earlier in the 'day, the fact that there might be different conditions in different factories, but after all those differences would not be great, and when those differences are only small, and then that small difference. 1b only applied to that part of the cost of the finished product which on an average Is about 16 percent A small percentage doesn't leave very much to argue over. Even though it does mean one or two cents a gallon in the finished cost please remember that we are only figuring coets, and not selling prices. Ordinarily speak ing on the product of the industry no manufacturer can continue in business very long if he sells his product &t cost It means that the amount he has to add is only a little bit less. W, D. Gilman: I feel that we are very fortunate in our code, and I think it is due very largely to the fact that we had a mighty good code committee, that didn't make the mistake that some industries' did, of trying to fix prices. And they gave the public due consideration, and as I see it we are not faced with some of the troubles that other codes are faced with. Now when it comes to the question ol enforcement, whenever you have aynthlng like prohibition, It is very profitable, and enforcement is going to' be almost impossible. As I see our code, it 1b unprofitable to break our code. It is to the interest of ' every manufacturer to adhere to the code and support It, and It Is going to cost money if you don't We have had others who have accepted It as they accept any other association assignment. They have taken it because they were asked to take it, but the less work they do the better they like it. And I am wondering as I look forward whether this isn't one of the things that has got to-be solved in the year to come, Just aa NRA la talking about solving its field problems, Mr. Poliak said when he began one of the things they were tackling was the problem of enforcement In the field, and X am wondering if we haven't got that problem to solve, too. . This morning Mr. Roh gave us Mb treasury report and told us what it coat to enforce this code during the past year. I don't know anything about any other code except what I read in the news papers, but it seems to me that thig in dustry has gotten off for 10 percent of what some other industries have paid, and I am wondering as X look ahead if we are not facing the necessity of spend ing more money. . we have solved' the easy problem, and we have demonstrated that we can handle the fellows whose efficient evidence is on the surface, and X am wondering if we are not actually facing a problem of sub stituting our unpaid, volunteer code work ers, with some kind of a system that will make it possible for that work to be done efficiently without a great hardship on the part of any one individual, and if we ore not solving the problem of having to pay for that President Trigg: I would dike to add to that statement: I think Mr. Poliak is at a little disadvantage that wo must recog nize insofar as discussing details of our code cases are concerned, because he has not personally been brought* Into it before. I also want to make a statement for the administration, that they have been slow in' dealing with some cases which has been a great disappointment to us, but we have realized that the job of handling all of the complaints which they have had--and as I told you earlier in the day, over sixty thousand complaints.--it is Just utterly out of the question to expect that they are going to be expeditiously dealt with. .i We must realize that, and we must real- lize another thing, and that is that there has been considerable change in the per sonnel, a shifting around and replacement here and there in the administration or ganization itself, and It iS a necessary condition that always does* happen when so many men are Involved! in an under taking as they are Involved In the ad ministration of the codes. \ Now, as to the two cases which Mr. Poliak has referred to, you are thinking of those as the two cases out of the six teen. As a matter of fact, it is nine cases out of the sixteen, because one of those two cases Is the case of a1 manufacturer agamet whom eight complaints have been registered with NRA, and so eight is part of the sixteen, so that after all. It Is nine complaints that are being dealt with and not two. ; Now, as to the facts with regard to certain of the complaints,j here Is what has happened: ther conference held in New York last week, I think It was, or. perhaps a week before, the two code authorities, that is the code authority off the bleached shellac group and our own code authority, came to an agreement. , We first came here to Washington, their code authority with ours, and had a dla- cuasion of this subject with Mr. Willie and Mr. Dahlberg and others represented In the situation. Then, following that, we got together among ourselves, and the two code authorities agreed upon a provision, the effect of` which is in sub stance: That all shellao varnish tnanu: facturers. whether bleachers or not, are subject to all of the provisions of the paint code, together with the fact that those cutters of shellac varnish who are under the bleached shellac code, fourteen In number, shall also be subject to cer tain of the provisions In the shellac code which do not conflict with any of the provisions of our code, : Now we have Jointly presented that to the administration as the recommenda tion of the two affected code authorities, and that matter Is in the bands of Mr. Willis and his associates, and we ore hoping any day for a . decision In which we have every reason to believe--'maybe we are -colored by our own views' in the situation--by which we have every reason to believe that it Is going to be favor able. That Is the other . one case In volved. Comment; by Mr. Wolf . J. S. Wolf: I wonder if the compliance board realizes the feeling off many manu facturers In the situation. I have talked .There Is nothing to advocate or make attractive to break the* code. Now unless you believe in Santa Claus, you naturally couldn't expect perfect re sults in a year, but as I look over it, and I see the number of complaints that we Now we may' pay for It through the national association, and we may pay for it through the local territories, but it seems to me as we talk about code en forcement we can't overlook those two things. - have had, it seems to me that we should We have got to move through the next congratulate ourselves on our code, and step, having set up our central organiza with leadership that we have, and with tion, and having proved to ourselves that the assurance of Mr. Poliak, It doesn't It will work, we have got to move through seem to me a fellow could be any squarer, the next step of setting up some kind of he has recognized that we need a horrible a coordinating organization in the field example, we'll say, to make people sit up and we have got to make up our mind and take notice, that our code Is not just we are going to pay for It. simply a form and hasn't any teeth. Now he has given us assurance, and It seems to me repeatedly, that he recog - President Trigg: Does someone else want to say something? nizes our need in that respect, and as I If there are no other comments, I see It, we have had a record here - of a want to express very great satisfaction year that certainly Justifies confidence not with the discussions wo have had here in the whole NBA, but In our own code, today. I have been anxious about thiw and so far away from as X am concerned I can go this convention with a lot of - kind of meeting this afternoon because enthusiasm for our code and the possi nobody is more 'conscious of the seri bilities of the future. . ousness of this situation, and Its Im Thanks for NRA. Representatives portance because we have now a means of correcting situations in our indus Mr. Zinsser: T move a vote of thanks to Mr. Poliak and Mr. `Willis for their very tries which we have never had be fore. I am anxious for the industry's serious considerations of the Industry sake that we should rise to the great Eroblem, and' that we all are very much eartened by what they have said and wo thank them for their oo-operatlon in the future, Mr. Gillman: I second the motion. est possible extent to this opportunity. I am going to dose the meeting now, if there is no more discussion. I want to - close with this one thought--that President Trigg: All in favor please, if each one of us, as we go home -from say "aye," contrary "no." It is carried. ' this convention will carry with us a rec Mr. Poliak: I know that. 1 appreciate that and X also was entirely sincere that I appreciated this opportunity to be with ollection of the spirit evidenced by the discussions here today. If we will think of the code of the Industry in its broad NRA, of the eight complaints against to a lot of them in the last month or so, you, because I realize that these exchanges - phases, and not be too much perturbed this manufacturer, took up some of the and I think that the feeling bolls down. just such as we have had today are very over some little Incident that-happens, earlier complaints first--they- are all com plaints- on. article 22, selling below cost'--: and now it develops that! unfortunately the cases which they took up all antedated the establishment of market replacement costs as published- by us!now and the to this, that it is directly up to the com pliance division to get some action, and that the action of the compliance divi sion, and prompt action, would determine whether the code Is to continue as an ac tive Instrument with the industry, .or helpful, and X know they are to the com maybe lio'w'ahd: then, under some-' one - pliance division, and I believe that they are also helpful to you,' I am glad X was asked to be here, and I -thank you for your ' provision-'of the code, we will think of it in its-ultimate benefit to the code, frankness In discussing these, problems and, to' the industry. It we will preach with' us. . - , .to our.*.follow manufacturers, as we establishment of the processing costs, with the result that we haven't got the definite whether It Is going to continue on the' books as the prohibition law did. ' Mr. Bennett Looks Ahead ' come in contact with them, the value of the code, of adherence to ft, sup final control or check on It, that is the A lot of manufacturers, most manufac arithmetic of the situation! that we have turers, are eager -to continue working got in cases that have occurred since with the code, because they realize' the those two things were don^. ' benefits that It has done for the industry: Now, then, we do have other cases on the other hand, a lot of them have against this manufacturer, I which as Mr. ceased to be as'active In reporting com Willis knows have happened since those plaints, in reporting violations, for the two provisions have gone into effect, and . simple reason that there has been no those coses which have happened since action on these violations. Now I fully that time we have got the control on, realize all of the difficulties Involved In and they are the ones that we expect to getting action, but I feel very strongly get some definite action on. ' that unless there Is some definite action As to the one case, let's talk about it for just a minute, and show you what - has happened. i taken by the compliance division there Is going to be a serious breakdown, even If It Is a temporary breakdown, in the Wallace F. Bennett: Now that we have come up to this point in our discussion, I would like to look into the next year with you for a minute or two. I have come from the Wild and Woolly West where they talk about code matters just as freely as you do here, where they have about the same ideas that you do here, and I have talked since I came with a number of men from -the West, from the ' East, New York, Philadelphia, and Chl- cago, and the other points, that are. struggling with this situation, and it seemB to me that In the year that haB passed, port of it, I think that we will do more to.help..the whole situation, than, any thing else that could possibly happen. - Our industry and the members of It can make this code what we want to make out of it. It is in cur power to do it so. long as we get, and continue to get, the kind of support which has been promised to us through Mr. Pol iak by the administration. (The session was adjourned at 6:30 p.m.) That la a shellac case, and it is esti mated by the shellac people and others who know that there arei probably 760 cutters of shellac in the [United States. Now, you fellows In the paint business all know that a great many of those cut ters of sheltac are not what we 'recognize as out and out paint or varnish manu facturers, hut they are In many cases Jobbers who1 cut their own [shellac, or the smaller merchants whose [only business that comes under our code! is the cutting of shellac. ! They are not the people-that we are used to having at our meetings, and that we are acquainted with, arid they are not acquainted, with ua. i However, our.code very definitely covers not only varnish, which means shellac, but It specifically says shellac varnish Is feeling toward the administration of the code. Mr. Poliak: I think that we do realize that, Mr. Wolf, and we ore making that one of QUr main objectives right now. we are trying to" get cases Into court and to get the United States attorneys to go forward with them, and we are go ing forward just as quickly as we can.. We agree with your statement of It, and 1 don't think you have overstated It. Albert K. Sheldon: I rise in the spirit of enlightenment with reference to the NRA, and not criticism, and I would like to have this Information: Perhaps we .will acknowledge that the paint Industry la a chemical Industry, and we are making varnishes that re quire different solvents, and in' making . paint It ^requires -different pigments. Thursday, November 1 Third Session--Thursday Forenoon Industrial Sales Conference [The third session of the convention was the conference on Industrial sales.. It was convened by. President Trigg at' 10 a.m,, November. 1.1 . President Trigg:--Gentlemen, if -you will be good enough to come to order, 'we will start this session going. - Mr. Kennedy has asked me to open separate and distinct group of this industry. I . naturally' have been keeping In close . touch with . the work of thia group during the past year,. being In terested, ' as- we naturally are, tre mendously interested, in'the success-of the separate deliberations, on the one a product of this industry. So when we found that the bleached shellac code had been approved by the administration some months after our Mr. "woncer put that thought in my mind in asking a certain question before, and if someone Is underselling, now the question. Is when overheads are different, this session by saying a few words to you which I am glad to do. I- am glad -to welcome this morning hand Industrial sales, and on the other hand trade sales. You all know, I think, that the trade code was approved, and we found that and sometimes costs are different,, and this first annual meeting of the manu sales group is making a very satisfac the bleached shellac manufacturers, of formulations of different products are facturers of Industrial finishes as a tory progress in the development of OIL, PAINT AND DRUG REPORTER Novernier f4t 1934 35 Its programs and in the consideration of its problems, and your own group is, as I see it, also making very real progress. ' I know that this has not been the defi nite results accomplished from every thing that all of us had in our minds with respect to Industrial sales prob lems, but when we realize that this again, was a new undertaking, when we realize that there was almost a complete absence of co-operation in the past be tween manufacturers of industrial fin ishes, while there had been plenty of co-operation between trade sales man ufacturers, when we realize the ab sence of it on the industrial side, probably we can, in making a mental inventory of what has happened during ft the year, recognize that a foundation has been laid, and that It was more Important that the foundation should be well laid, a firm foundation, in or der that the building of the super structure on that in the years to come will in turn represent a permanent set-up. From the standpoint of the associa tion and Its officers, I want to express our very great appreciation to the chairman of your central committee, j Mr. Esposito, and then succeeded 'as he was by Mr. Kennedy, and to express appreciation to the members of your steering committees, and members of the other committees, and to all of you men for the interest and thought and time and effort you have put into this proposition. ` With the foundation now laid, with the stage set for you to go ahead, building constructively, also being careful to conform to legal require-, ments, not going overboard in a way that might embarrass you later on, we can see where you have got an op portunity to he of distinct benefit to your own individual business and to the industry as a whole. Field Man Proposed There is one thing that I want to particularly refer to, and that is the subject of giving your set-up, the in dustrial finishes side of the industry, a man to work with you, a full-time man, paid by the association, who would devote his entire time and effort to the daily, handling of the problems of the industrial sales business. The necessity for that became ap parent some time ago, and three or four months ago, at the request of some of us, the budget and finance committee of the association made an appropriation for the purpose of en gaging the services of such a man. Since that time, Mr. Kennedy and the members of the steering committee and some of the rest of ns have been looking around for a man that would fill that bill. We have made a good many inquiries from manufacturers in the industry. We have had many applications and we have not up to the present time, however, been able to find somebody who would exactly fill the bill, and in saying that we recognize, too, that It is entirely possible that the first man we do engage for that work, even though his qualifications and every thing else seem to justify engaging him, may be a mistake; we don't know. You know how it is in hiring men; sometimes you're fooled on them. I am. mentioning it now because I want you to know, first, that the association is back of your having such a man, the association has provided or made available for it, they arc now available for it, and we have been trying .to find the man. . I believe it is proper for me to say conduct and I am sure that we are going that we have now reached a point *to get some very tangible results. where we are practically ready to make Now, when Mr. Trigg talked-, me into a decision, and hope within the next week or ten days that we may be able to announce to you that we have se cured such a man that is actually on the Job, putting alt of his time into taking this job, his selmg point was that this was blazing a new trail, and from my experience over the past year, he- had the horse before the cart because it has been trailing a new blaze most of the time. But I am confident that we are going to get this job of co-ordinating, pulling to some place with this organization if we gether- and improving the conditions of the industrial sales finishes side of our business. ' I sat In a meeting last night of one of the groups, where the chairman, in will take it seriously. Mr. Trigg has commented upon the pro fessional, hospital services, I am sure, being adopted in a diverse and useful manner. In outlining and commenting on this my opinion, handled it in a very sat Industrial setup, I will naturally have to isfactory way, and in the manner it was presented to that meeting it seems to me that it is a thought that we all ought to have back of our considera tions of this business. Namely, he said this:-- employ quite a bit of repetition, and I hope I will be forgiven for that, in the hope that it will drive home more firmly the setup and the purposes for which we are organized and are striving for. As you know,-the fountain head is the national Industrial sales committee. They "Let us look at our particular prob lem, our part of the industrial finishera' business, and let us list up all of the difficulties that we have. Now, every one of us feels that we have problems in this, that and the other held .their first meeting in Chicago last April. - Naturally It would not be convenient for . them to function at all time conveniently, and for that reason a steering committee, which Is composed of- Mr. Esposito, Mr. VValtberg, Mr. Horn, Mr. Lackey, Mr. thing, and, let us put down those prob Longworth, Mr. Patton was set up. That lems and, once having gotten them committee has b<sen particularly active listed, the problems that we feel that . during the past year. The work that they we can deal with in a collective man ner better than Individually, having have done has really been remarkablewhen you consider the time that they have had to take away from their regular them ddwn on a piece of paper, we are duties, and I wish at this time to give able to check them up one at a time ray sincere thanks to them for the mag and see what we can do by way of solving those problems." . nificent co-operation which they have extended. Some of the results of their work are And I think, gentlemen, If we all already tangible. The results will be very thought of it that way, of first finding out, in our own minds, and expressing to our groups the things that we be lieve ought to be done, and if the group believes that those propositions much more in evidence during this coming year. For instance, dealing with raw materlal manufacturers or other rather un usual problems which require dealing with outsiders, such as, for example, city or government officials, we have what we call are ones Justifying our considerations, the outside relations committee, which Is then you have something specific to work on. . I think, as and when you get a maii comprised of Mr. Lackey, Mr. Esposito, and Mr. Horn. They have been called In on some rather ticklish problems during this year, and working on this Job exclusively, on have handled them very nicely and satis industrial finishes, you want to be in factory. a position to tell him what your prob Lay-Out for Procedure lems are, to give him your ideas as to how those problems ought to be solved In partloular we have built up a very desirable relation with raw material man and then, Mr. Chairman and gentle ufacturers which benefits the association men, let him go to work on the Job of going out into the field, meeting with groups of manufacturers all over the country and discussing those problems with them to the end that directly, and in a very bad circumstance of specifications when we were able through their efforts to remove what promised to be a very fundamental evil, and which will probably be commented on a little later. eventually one by one we hope that Now after that come the heads of the we may clean up the problems that subcommittees who make up the product are difficult ones for us to handle indi vidually; At least we can clean up some of value committee which function to directly steer the specialized efforts of various manufacturers, . For Instance, the wood group, who are them. I am not standing here to say Interested In stain, filler and the finishes, to you that I think the millennium has arrived and all we need to do is to say what our problems are and they are going to be solved. On the con trary, it is going to take some time, varnish, lacquer, and so forth, which go on wood. That group is headed by Mr, Longworth, and their Idea is to confine exclusively and intimately their interest to the problems associated with that Industry. hut with patience, and with conviction Then we have the metal division headed and confidence in ourselves and our associates, we can go a long way for ward in settling many of the difficult problems that we certainly, can't solve individually, ' by Mr. Andrew and they have many prob lems which are peculiar to certain manu facturers, and who do not have a partlcular interest In other lines. And then we have the marine and Industrial paint division, headed by. Mr. Betty, and finally Mr. Chairman, yon asked me to say a few words. I have done so and now I should say the meeting is in your hands.' ' ' (Paul S. Kennedy assumed the chair.) we have the railroad group which is headed by Mr. Sullivan. ' .. Those four gentlemen, together with Charlie Cook, who is a member at large, make up the produot value committee, and the product value committee, while prob ably misnamed, has a very definite func Introduction by Mr. Kennedy tion. Its name may be . changed;-'but It really is a steering committee on happen .Chairman Kennedy: I may be a little hoarse this morning, so I think that I will use the microphone. ings and on actual transetions' in the industry. Now, theoreticlly, I do't think we could have a more ideal setup. Time.'and cir I hope that everybody hasn't parked any guns outside because we have got a real fighting, aggressive group. I was cumstances may demonstrate that it can be improved on, and when those things make themselves evident, we will attempt very glad to see the spirit that was ex to make such improvements, but for the hibited at the meeting held last night, and present, I think that, it gives a very em also at the wood finishing group meeting bracing setup, and at the same time, which I had the honor and pleasure to quite narrows down the very important branches of the Industry, Into groups where those directly interested can secure an intimate intact that has never been possible before. s. .! Method of Functioning Now that is the machinery. The func tioning of It iig this; In the first place, this convention, for example, makes pos sible the most vital consideration in any progress whidh is going to be made in constructive efforts to improve conditions In industrial Sales, and that is the factor of acquittance. -.?*here is nothing like knowing the people that you are; dealing with, and such a convention ai this gives a grand oppor tunity to start the ball rolling, PP 0D1, t^lat olti the national indus- sTales committee comes into the pfeJJFBt' ^cu*se| thsy Arc in a position to and PrPmte activities In local sub- "8X555 {aAi ** tofrd step in the whole program aii * is of impatience ? this Varactor ana easily diBcotiraered '"t o ,? 80 !fetdi,y Patience. aBet[. wa must have say, fn0o!meSJBe0fjstreSaili;nettKou "`fUt way this year, becauS. been devoted; quite gen^l,?^ "hner uinp mthoetiomna,ehii?netrhvtoktwyfeifr 16towl}s1ttin& are beyond coneenthJn1 019 Possibilities what we hard hadPbu?'!n,T BSr9'3 w!th ysts It Is up to each tbe flnaI anat- as to whether it win succeed ne * " you let*1 George'do It then'5??'1 Worlt' ir over, but if Vountr terest in It, ii ?he go f?ct,Ve Jn" become discburage^nd^tl; you hands the first tfrni u throw up your in some direction a^efectfon is 111 advlsedj but S?" th'"k see that the party ,lhe t0 Irsatfhirest?thlp^fnl+\L .a..nrdheat|hSeensdeiefewcttiobn" up whatever conatr^tiS^d ^^usting have already: been efforts that thpWtfWiUtt 1 tWnIC manjT'to problms. too certain of them I* thVnt onVu?yTM. but JdnfsecnutsesdedonaaiSnd wifi hi rf3, emd ^e ambe- course 0f thti meetfnl flis0us8sd ta the of ?hiVeyS$Paw!uV b? one Resins Nomeholalure" Synthetie problems Sat Vo! Z`E6 mo,st f^nc tlon with lndl,trlaI Be"0.s'laa';- .1" enneo' tthimeye&. Thme eaan?swWehratno `^talhWout 4s.y^n-,Present eliminate the^wo^Sosethi' T* eou!d be very desirable a it would ssslff-ssa Tie-up With Production Clubs ttTXlr W&St tg cb?b* tHntri the Jnflus- nr+^tT0na^3r' ^ there is an oppartu- thfe respeet.Vry intimate connection In These men who are working in th* plants and dealing with the manufac turer, and when you say that, no matter whether it is directly or indirectly, they are dealing Very much with sales, and Kentucky Color & Chemical Company At the 1934 Paint Industries Show . . '.is. ... Yv-- . , iv t& V-- - - - J ;'i '' Y t 1 I \. 1 -. ' '4 r\ ;<1 'f rY' , v= t.i.Nfcini./'iw.r.fimjc H ' -. . * rrrjr: ~ \\ , EWRV'WW': tiUiViVGt i IV- . Goodyear Tire & Rubber Company At the 1934 Paint Industries Show .. General Electric Company At the 1934 Paint: Industries Show 36 November 14, 1934 r 18 2 4 & I L L 19 3 4 ' OIL, PAINT AND DRUG REPORTER sales is what In the final analysis con within the same reasonable competitive cerns us most. range, and we want to use reason in I think that If something can be devel that, because every tune we take money oped so that they can tie In better with like that off a price, we take it right out us, particularly from the standpoint of of the industry. service, It will he highly desirable and We take it out of everybody's pocket constructive as Well. who supplies that particular field. 1 think that we ought to talk about Finally the services of product, another the specification evil, and when we talk reason for keeping up prices within a about specification evil in connection reasonable range. I am not talking about with Industrial sales, it is a very serious price-fixing, I am simply talking about proposition. an honest price for an honest product is I think we should discourage'specifi the scientific department. Particularly cations every place that we can. I think with synthetlo resins which are producing that for certain classes of products there very much more durable products than should he approved lists, rather than were possible a few years ago, and ap thrown wide open, and In that connec parently that progress Is advancing, anct tion I have In mind an actual happening durability and life are improving on units which was discussed at the national In Buch as railroad cars, or automobiles, or dustrial sales committee meeting back in vehicles where the repainting time is very Chicago last April, where a certain gov Important. ernment department put out specifica In other words/ if you Increase the life tions for finishing vehicles, which is ad of the finish 33 percent, we will say, you mittedly a specialized proposition. cut one-third of your replacement business They had an approved list prior to this off. So why not get a decent price for time, but I suppose, through political giving that improvement? Certainly why mechanism or what not, it was thrown should you cut prices to give an improved wide open. That bid was given, and even product, cutting them down to what is not today that material has not been sup an equitable figure? plied--yet those bids were opened last I thank you very much for your in March--for the simple reason that the dulgence, and I won't take any more time person that got it cannot make the goods. because We want to get into the papers, ' In' New York city a similar Incident and I hope all of you will enter into the occurred, and this is where our outside discussions. relatione committee functions very beau First we wilt hear from A1 Wittenburg, tifully. In New York city I have a speci secretary of the Synthetic Resin Manu fication. for the finishing of their ve facturers' Association, on the "Nomencla hicles. It was very clear what the intent ture of Synthetic Resins as Seen by the of those specifications were, .although Resin Manufacturers." they used our old friend, synthetic President Trigg: I think we all want to enamel* in It. let Mr. Kennedy know that we appreciate -Now. what happened was that synthetic his talk by giving him a distinctive "en enamel was determined by the successful core" for it. bidder. I believe, to be "ester gum.'* Technically, he was right; morally and every other way, it was mot according to the intent, but he got the order. For Nomenclature of Synthetic tunately, In New York city' they did not put It on their vehicles, and through the outside relations committee they Resins changed It to a specification which will Insure them the proper material. I mention it, that is these two. cases, merely to give you a picture of that Very serious situation. Now, as far as our job, as industrial sales people or supplies Is concerned, our fundamental job is to supply a legitimate A, J. Wittenburg: Before reading our paper let me explain to you the reason for it. Last January Mr, Trigg held a meeting with the resin manufacturers and requested them to get together in order to bring about closer cooperation with your association, A committee from your association was appointed; one was from product to the consumer at a legitimate our group. profit, and, furthermore, protect our These committees met several times, at selves from Ill-advised competition from tempting. to Iron out disappointments con within and from without the industry. cerning membership In your organization Four Points of Service and. to make plans that would be of assistance to you in clarifying as much Summing up industrial sales, I think we can boll it down to four points. First, the dignity and identity of a product; second, the high ability of a product; third, acceptance of a product; and fourth, the service of a product. Now as. to the dignity of a product, if we inform or talk too loosely .with our customers about the product we are selling, we strip every -bit of dignity and identity away from that product In the exact degree as possible the nomenclature of synthetic resins. The problem was considerably more difficult than might appear on the surface but the job was tackled by the chairman, of our committee on tests and standards, John McE. Sanderson, who I believe haB written an excellent paper. It Is with pleasure that I can tell you that these committees have functioned efficiently and successfully having accom plished all their objectives-- to which we talk about Its composition. 1. Membership of our members under The serious part of this Is that it Is class b In your association. striking right at your selling price, be 2. The full cooperation of the synthetic cause when you finally have your custom resin manufacturers with the paint, var er so that he is well enough acquainted nish, and lacquer manufacturers In not with the ' composition of your product, encouraging consumers of protective coat the next step is that he starts to tell you ing to enter Into manucacturing of these what you shall sell It at. products. He does the fixing for you, and unfor 3, in one case at least calling atten tunately he doesn't know how to figure tion of a large municipality to a very overhead, and selling costs and so forth, loosely drawn specification in which only but nevertheless if you do not try and the words, "synthetic enamel/* described sell It as a finishing product, rather than with a lot of description and Intimate in formation outside of physical perform ance information, that Is a step decidedly in the wrong ^Wctlon. . Now as to liability of product, take for example an automobile, before we got the clause Into our code of no guarantees certain automobile firms demanded guar antees for finishing materials on the auto mobile. ^* The lowest you could figure the finish the product required, 4, Finally, the presentation of this paper. . , t It is hoped that -these committees will function further and continue to be suc cessful and be assured of . the cooperation of our association wherever possible. I will now read you our paper "Simplified Synthetics." {Mr. Wittenburg then read the fol lowing paper prepared by John McF. San derson). ; ing of a car would be $60 and about the highest you could figure of actual net profit on the lacquer that the manufac Manfuacturers' Views turer would sell, would be 60 cents So what you are doing Is shooting one hun dred to one, which is just crazy. Liability of product, Just squeeze yours down to the The economic justification for any of your .paint products, as for any other article of commerce, Is for it to fill some need to better-advantage than Is done by last nickel, sell it, and then take a hun other materials which may be available. dred to one shot that you would make Your customer has certain requirements good, ' in mind which your paint product must l use that as an example, it Is rather meet. He may want protection from water, extreme, but In a relative degree It ap weather, or abrasion. He may need color plies to everything.- So your product is . and gloss* to. enhancethe appearance of worthy of a rise in accordance with the some object. More likely he requires some liability .which "it has to stand ; because,- combination of these and other charac regardless of guarantees; If you do sup- - teristic's. . plv through accident or otherwise material v You men of long, experience In the paint which Is distinctly defective, I" think it Industry :know only .too well1 that no one would be the general custom to make paint'product will meet all requirements, good on a'thing like-that,' . that in/fact the paint which is the best Therefore, you. should -have some pro for one. purpose may-be the verv worst tection and some assurance on it. . . for another. You would not dream, for in ' Now, on acceptance of product; which I think.Is the most important of all, and which embraces the specification evil, this minimum .price, and all of those factors is this: I. will challenge -anybody to tell me a consumer who will not pay a legiti mate price to finish his article, ox articles, provided, the competition Is within a rea sonable and limited range. ' -- Now. all of us can go through the mo tions of figuring cost accounting in figures and what not, but when it all bolls down, there tBq't such a terrible difference in our raw-materia!, and in our manufac turing, and In our.sales costs. . If there is a difference It would prob ably be more In the sates c6st than any-, thing 'els*. hut generally sneaking, from '^e.factory end* the material and manu facturing co^t ,would: be comparable, - stance; of recommending your best house paint for use on a table top, or a fine piano rubbing varnish for a boat deck, . Your customer, necessarily lacking your detailed information, leans largely on your judgment- His knowledge of paint com position. Is limited, and is apt to be outof-date and Incorrect. He may even call for "pure white lead paint" or. "pure kauri varnish" because his grandfather got good results with them or because he has been misled by less suitable products. Even the industrial or government con sumer who insists on buying on specified composition frequently does so through a mistaken notion that this procedure will protect him against the purchase of In ferior material, You paint men . are, of course, well aware that such specifications based on definite formulas are utterly Inadequate Against the Sharpshooter .Therefore, there Is no fundamental reason for products of a certain type not being within a reasonable competitive range. What I am striking at now is the fellow that goes out to sharpshoot, who has his overhead covered, and he sees an opportunity to chisel Into some Blnce they cannot possibly take Into con sideration all the factors necessary to In sure satisfactory quality for a given pur pose, Furthermore, such attempts at stan dardization remove much of the incentive for Individual initiative and research by which each of you strives-to keep his nlace in a highly competitive field, and by discouraging such research, tends to thing, ana ne goes out and makes cuts of retard progress. Gn the other hand, f o cents or a dollar a gallon, which arc when paints are graded on performance not extreme, or which .are not too ex- . you have the opportunity to impress your treme. . Fifty cents is not at all an un trademark on- the public consciousness as usual cut In uninformed circles, and that a synonym.of quality. is one of the things that needs the greatest In the formulation of your products you study with us. use some materials which have been avail We trv to keep materials within a able for so long that their advantages and reasonable competitive range for the limitations are a matter of common simple reason that our basic costs are knowledge to everyone in ,the Industry, k f OIL, PAINT AND DRUG REPORTER November J4t 1934 37 I VO In ley )ut Prom a variety of oils you pick One for cently oil-soluble phenol resins have been paint, another perhaps for varnish, and, produced without the use of resin com still another for lacker, without even pounds. We can, therefore. In describing These straight phenol resins are classed separately from the modified phenol types since they differ from them in composi usually modified in various proportions with .fatty or: resin acids. Such- resins are marketed under trademark names such as tet being- conscious of a possibility of con fusion in their uses. . You are actually the commercial phenol resins which you use, start by dividing them into four dis tion and impart different characteristics "Glyptal," `vRezyl," "Beckosol," "Durato the products in which they ate used. plex," "Bsterot," "Teglac," and some :sr >ut ut is Iy as in P ad familiar with the proper uses of various pigments. In varnish making you have spent generations learning how to manip ulate the natural resins, ous, and thinners. And then with apparent sudden ness you found a host of new and un- famfllar materials available to you. They include colors, pigments, oils, resins, and solvents in wide variety, with each new development encouraging your customer to anticipate and demand previously un attainable characteristics in your prod ucts. It is a small wonder that some confusion grew up not only in the minds of customers but among paint manufac tinct groups, namely: (1) Phenol resins modified with nat ural resins. (2) Phenol regins modified with oils. .(3) Straight phenol resins, heat re active. (4) Straight phenol resins, perma nently fusible In addition to these there are the com bination phenol alkyd types which we will touch on later. The term "phenol" is here used in its generic sense and, In As in the other family groups which we grades of amberol and rauzene, Since are describing there are differences In the resins of wide variety are included under individual resins which should be borne each of thede names we will commence in mind in selecting the one best adapted our description of them by dividing them to any particular use. into four mail classifications, according to Straight Phenol Resins, Permanently composition, as follows:-- Fusible The permanently fusible {non-heat-re' active) types of straight phenol realm have found their greatest usefulness when cooked Into varnish with drying- oils.. When properly formulated such varnishes are quick drying resistant to water, al , kali.and abrasion and have good elasticity a. Alkyd types modified, principally with natural resin adds. - b. Alkyd rtypes modified principally with non-drying oils or fatty acids. c. Alkyd types modified, principally with drying oils or fatty acids. d. Combinations of phenol resins with modified alkyd types. turers as well in regard to many of these new materials. ' Problem of Synthetics Among the most interesting of the newer materials which have been made .available for your use within the past few years are a large number of resins. 1- To distinguish them from .the natural varieties previously known it has become common practice to lump them urider a single group classification as ''synthetic ' resins," This was bad enough since it was used to cover a variety of materials and durability. They can of course be used in either clear or pigmented form. Although only a few years old: thege res ins have become sufficiently familiar to you; so you have found many of your paint products in which they may be used to advantage. . One of their recent developments has : been in the field of fortifying linseed oil house paints to gain quicker-drying and better film integrity. The moisture proof ness and chemical resistance of these ' resins has made them particularly useful In the field of metal primers-and.protec Each grorip has its individual advan tages and limitations, which define its field of usefulness and with which you should become familiar In order to prop erly utilize them in your products. Some of these reslhs are hard, relatively friable solids. Others are viscous liquids. Many of them are sticky plastic solids and these, for your convenience in handling, are fre quently marketed in the form of concen trated solutions. They range In color from water white to dark amber. Rosin-lVIadified Alkyd Resins utterly .different from each other. It lost all meaning when extended by salesmen tive paints. Certain of these unmodified ' Alkyd resins modified principally with - phenolies may also be used in cellulose e and consumers to cover so-called "syn thetic finishes" which ill some cases con acetate and nitrate lacquers where in creased water proofnesa and resistance to rosin or other natural resin acids, differ essentially from the fatty acid types in tained no synthetic resin whatever, or fatty oils and dilute alkalies Is required, elasticity, durability and other respects when used in specifications so loosely Other resins in this general class are non and should lbs used accordingly. They drawn as to permit the use of anything oxidizing, permanently flexible types suit range In hardness from about that of ester from limed resin to the highest t type phenol or alkyd resin. .. able for plasticizing films. gum to grades comparable to the modified phenol resins. We resin manufacturers are anxious to ParacourmaroneOndene Resins The restnfe in this group found their assist you so far as lies within our power Coumarone and lndene are chemical first commercial use in nitrocellulose jac- to clear up this unnecessary confusion in compounds present in coaltar light oil dls- quers. They are readily soluble In the the minds of your customer. We want to . tillates. By polymerization under proper usual lacquer thlnners and are compatible place In your hands full and complete in conditions, resins are produced from with nitrocellulose and the ordinary plac- formation as to- the type and. character them which have been found well adapted tielzers. One of their largest uses has istics of each of our products since with . for use in paint, varnish and allied prod been In sealers to. which they impart easy this available you are in a position to use . ucts. These resins are sold - under the sanding properties because of their hard each of them to best advantage in the the trade-names "Neville Resin" and ness and relatively low solvent retention. formulation of your finishes to specific ' Nevindene," . They are alsb used in clear and pigmented performance requirements. Each of us ` maintains a laboratory staff devoted' to the improvement of our individual prod- ' ucts. our work on the formulation of coating compositions Is deliberately lim ited to that which is necessary to properly ' evaluate the working characteristics of our products and to meet your demands for guidance in their application. In the final analysis the value of our resins to John McE. Sanderson fact, a wide range of phenolic bodies are These resins are neutral, resistant to alkali, dilute add, brine, etc., and find their main use in coatings designed to re sist destructive conditions,- They are ex tensively used, in aluminum vehicles and bronzing liquids, pipe coatings, traffic paints and concrete finishes, ana to mod ify other resins, both .natural and syn thetic. They are not soluble in alcohol, but are lacquers for furniture and other indoor applications.! Some of these resins are also adapted for use in cooked varnishes and their use in this field has increased appreciably: in the last couple of years. . Their principal merit appears to be based on two quali ties, namely* hardness for rubbing var nishes and color retention for bqth airdried and baked finishes. you, like that of any other ingredient of your paints, depends on your own individ actually used to produce different char acteristics, In general, the phenol- readily dissolved in petroleum and coal tar naphthas, and ester solvents, so that Lacquer Type Alkyd Resins ual skill and initiative In compounding formaldehyde condensates used In these they find, application as coHtrcut solutions The alkyd resins modified principally them into your finished product.' This you four-subdivisions have very definite and and in lacquers as well as In cooked var with saturated non-drying oils or fatty can of course do to best advantage if you important chemical and physical differ nishes. adds have firmly established themselves are thoroughly familiar with the charac ences, so that the so-called modified Resins of this type are available in In lacquer formulation. They find this teristics of each resin which you use. phenol formaldehyde resins are not varying melting points ranging from 10 use because [ of adhesion, toughness, re Now. just as a starter let us take this normally mere dilutions in oil or ester C to ICO'1 C to meet different industrial sistance to oil and alcohol and particu term, "synthetic resin," and flee what it gum of the unmodified phenol resins. By requirements. . larly because of outdoor durability. This really means. What-is a resin anyhow? We all have a general understanding of the term, but it is rather difficult to draw and large, the raw materials employed in the four types are different as are the final products and their functions in var Alkyd Res ins . last characteristic permits the formula tion of pigmented 'enamels of greatly im The name, "Alkyd" covers In a broad proved glossj retention on exposure. It up an exact definition. We may say that nish manufacture. The commercial way the resins made from polybaslc also enables | you Jq make clear lacquers a resin is a complex mixture of organic compounds of relatively high molecular varieties of phenol resins are familiar to you under such trade-names as "Am- acids or anhydrides (such as phthalic, which while I not as durable as the pig maleic, or succinic) and polyhydrlc alco mented variety are at least more durable weight, so easljy and completely soluble berol," "Akco," "Bakelite," "Beckaeite," hols {such as glycerol, glucol, etc.) com than any clear nitrocellulose lacquers tn each other that they cannot readily "Durez" "Fhenac," and ^Rauzene." bined under different conditions and which could -previously be made. be separated, and having a tendency to soften over a wide temperature range Resin-Modified Phenol Resins without the sharp melting point charac The resins in this group consist of com teristic of pure chemical compounds. Some pounds of phenols and aldehydes dis resins are friable solids, some plastic, and persed at the time of manufacture in some liquid at ordinary room temperature. esterified resin. They can of course be All of them,' howeverfl when, sufficiently grouped only rather loosely for con chilled, break with a glasslike fracture. venience in description since they neces Such a description does not exclude rub sarily differ in accordance with each resin ber, asphalt, bodied oils, and the cellulose manufacturer's individual ideas on ma ethers and esters. Perhaps those are also terials, equipment, and method of resins although we do not ordinarily con processing. sider them so, Synthesis means to put things together to form a new compound. We can start with a natural resin and combine some thing with it chemically to change Its characteristics . in some definite respect. We can start from non-restnous raw ma terials and cause ..them to react to form a new resin. Or we may manufacture modified resins by a combination fo these two methods- In these three waya resins of a tremendous number of different types can be produced. But of these a half dozen groups have as yet demonstrated real utility and thereby attained wide spread commercial use. We will there fore limit our survey to these types, In view of the number oi phenols and aldehydes which are available and the possibilities of condensing and dispersing them by different methods and in dif ferent proportions you can readily ap preciate the variety of these resins which might be made. You wlU find, however, that each of the manufacturers of this type of resin has been able to meet your needs with a relatively few grades differing from each other in such features as color, hardness, solubility and acidity, . One of the first and largest uses of these modified phenol resins is in quick drying water and weather resistant var nishes and enamels of the so-called "four , Ester Gum This is the oldest among the synthetic resins from the standpoint of volume used by your industry. As you know It Is produced by the chemical combination of resin with glycerin. By the use of proper equipment and control in the course of manufacture it can be varied in such characteristics as .color, hard ness, acidity and solubility. Hence you should exercise care to select the grade which meets your specific . requirements hour" type which have to a large extent superseded for household use both brush ing lacquer and the older types of slow drying finishes They are also exten sively used in modern fast schedule furni ture varnishes. In addition they have of course found uses In a wide variety of your industrial and other products. As a group they are a close second to ester gum in total volume used by your in dustry, . Orl-Modified Phenol Resins rather than considering all ester gums alike The resins in this class are phenolformaldehyde condensations modified with Ester gum Js used In varnish as an fatty oils bo as to make them suitable for Improvement over raw or limed reain varnish purposes. These resins are either for water resistance, outdoor durability, viscous liquids or are offered in solution. and freedom from liverlng with basic They are generally heat-reactive, so-called pigments ,The usual requirements are because they become insoluble and in low acidity, good hardness,'minimum dis fusible on heating, instead of melting. coloration on heating, and complete solu This heat-reactivity may be utilized dur bility in oils, turpentine, and mineral ing the further cooking with oils In var snirite.' High-acid grades are in occa- nishes, or it may be taken advantage of sfonal demand because of improved in baking coatings. solvent action on polymerized oils and certain resins. In lacquer It Is used extensively as the least costly and most easily handled resin which is freely com patible with nitrocellulose and most of the other ordinary lacouer ineredt&nts. For this purpose the usual demand is for low acidity, pale color, and ready solu bility in the usual solvent And diluent mixtures. For this reason the heat-reactive oil modified resins are used in water resistant baking undercoats and enamels. These oil modified resins are also frequently used In lacquers. In this class of oil.modified resins is also found the five-minute air drying type used as primers and 3urfacers under lacquer. Straight Phenol Resins, Heat Reactive Phenol Resins Investigations started many years ago, directed toward the development of new resins for use in varnish, resulted'Ih the discovery that' ordinary phenol and cer tain cresols would react with formalde hyde to form resinous products. These early products proved, however; to he more suitable for molding, Imorehmatlng, and'insulating compounds, so that inter est in them was diverted temporarily in. these other fields. About fifteen years - ago it was found that such, phenol reslnods could ,v chemically combined with resin to maintain' sufficient solubility for use In vamt*7 And still more re The resins in this group consist of phe nol compounds which have been rendered oil-soluble and suitable for your use in varnish making without dispersion Jn ester gum or oil, and which are hardened by heat instead of remaining permanently fusible. Therefore when used In varnish they must hot be overheated before be ing thoroughly dissolved in oils or other resins, These resing may be used in bak ing goods to take advantage of their dry . lng by heat-polmerization rather than by oxidation alone. They are also used to fortify ester gum and other soluble resins by their reactivity during the varnish cooking. 38 November 14, 1934 , "r . OIL. PAINT AND DRUG REPORTER r Oxidizing Type Alkyd Resine The alkyd resins modified principally witn unsaturated oils or tatty acids are dlstlngmaned trom the lacquer types In gredient, a synthetic resin, were being actively Introduced Into the market, it was quite evident that in many Instances .sales representatives were poorly in {>ected from such a varnish. By the same ine of reasoning, an alkyd varnish or par ticularly an alkyd enamel, would be on* in which an alkyd resin had been used. move, and one which I think is quite-> vitally necessary. :j I would entertain a motion that theae :| that When exposed to the Mr in thin lay formed and the term, "synthetic," given As to what type of that, resin had been papers be referred to the outside rela* ers they dry to hard solid flans. They to the resultant products when-v^uch included in the- formulation, the name tlons committee, and to the synthetic-'; may therefore be used not only in con should not have been the case. .Consum would not Indicate but a laboratory ex resin manufacturers committee, for .1 junction with nitrocellulose or oils but hiso ay themselves as durable film form ing agents. As a matter of fact the lat ter is by far their most general applica tion. * Considering the large number of dry ers in both Industrial and trade sales lines were often led to believe that many paints and varnishes contained very considerable amounts of these synthetic resins where such was not the case. The term, "syn thetic," was almost set up as one which amination of such a product would read ily classify the type of alkyd resin which had been used. ' There are so many combinations of types of alkyd resins which might be in cluded In an enamel, and so many varia further deliberations and recommends- tlons, ' . Mr, Daum:--I move that this be done. (The motion was seconded) ing oils which arc available and the dif ferent proportions and conditions under which they can be combined, the variety of reslna of this type which can be made Is almost infinite. It is however ob viously to your advantage to limit the meant a superior product, ofttlmes ac companied by suggestions as to myster ious procedures in accomplishing the re sult. ' Effect On Trade Names tions in types and amounts of solvents employed in the formulation, that a wide variety of products naturally results from the use of alkyd resins as the basic ingredient. Nevertheless, certain definite physical properties and certain definite Chairman Kennedy:--Is there any . discussion? If not, all those in favor ! say "aye," those opposed "no." It is so ordered. The next paper will be from the new number of resins you use .to the smallest We have trade-names today on some of behavior under certain tests may be at president of the Federation of Paint number from which you' can formulate these varnishes, enamels, and paints, tributed to products in which, alkyd resins and Varnish Production Clubs on the wide variety of paint products which which Indicate the extensive Influence that your customers demand. And it is equally to our advantage as resin' manufacturers the term has had upon our products, and it would seem for the good of ourselves to keep our variety at a minimum. Hence the usual commercial offering of these resins is as a series of etojek types differ and our customers that it would bo well to eliminate as much of the mystery as ing from each other in solubility, elas ticity, drying speed, and hardness some what like a group of varnishes of varying oil length. . i . Since such a variety of resins is in cluded In this family groujj of "oxidizing alkyd types" It is difficult to indicate briefly their particular field of usefulness in your products. As a matter of fact. because of their number and variety they are finding their way Into products rang ing all the way from house paints to quick drying enamels 'and lacquers. . Many of their uses are based either on drying speed, good adhesion, or gloss re- ' tendon on exposure to the weather. ' form the main constituent, as is the case with the phenol class of products. The' one class of these alkyd resins which you will note, was taken out of the main group,' namely that of the phenol alkyd type, 'Is - definitely different and might well be assumed to be a separate type worth naming. Finally there are the cumarone resins which form the basis for the cumarone varnishes, and these likewise are very deflnite In their physical differences from products made from other resins and like wise will have a definitely different be havior under certain well-established tests. Suggested Terminology The suggested terminology that we give products made from these resins Is there fore phenol, alkyd, phenol alkyd, and cu marone enamels, varnishes, etc. "How the Federation Can Co-operate In Industrial Sales Matters." Roy B. Anderson will now sneak. Co-operation of Federation Roy B, AndersonI appear here somewhat as a plnch-hltter today because the firm first gave the topic to be dis cussed as the "Cost of Servicing," sod It seemed that nobody cared to assume that, and they passed the buck, I asked the chair if I might change that subject a little bit, to "How the Federa tion Can Co-operate on Industrial Sates Matters," and I would like to talk in a very Impromptu way about this in order to see if we can't be of some service in helping out industrial sales. First, let me Bay, however, that the Combination Alkyd and jPhenol Resins ' It would seqm unnecessary to impress . federation extends to you their heartiest Combining modified alkyd resins, usually oxidizing types, with phenol resins pro duces another distinct group having ad vantages In many instanbes over either type separately. They enlarge Still fur ther upon the variations which are pos sible with alkyd types and therefore ex tended their use Into still more of your products. : Summary the suggested terms on the production de partment of any manufacturer, as In a well-regulated plant, the products are scheduled on factory batch records, pre cautionary directions are given and irre spective of the ingredients In the particu lar product in question, it would seem that no further information or term were necessary. ,. It would seem unlikely that the office force in the ordinary manufacturing plant greetings and wishes for a very success ful meeting, . If we in the- federation can be of any help In making you or rather putting you in a position to produce more sales, we are very happy. Indeed. If. on the other- hand, we fail In this matter, we ask you to throw something toward our way so we may show how we may cooperate. In esse you do not know the set-up of We appreciate exceedingly this oppor would find It necessary to know the the federation, let me spend just a little tunity of presenting to you this brief terminology. time in saying how we are composed resume of the resins which we manufac ture. We hope that it will assist you to avoid confusion in the ufee of the term "synthetic resin" and help! to clarify your Naturally the duties of the executives m our industry vary.from organization to organization. Where an executive is vitally concerned with the types of prod and what our function is. - "Wp have over the United States six teen federated clubs, all the way from California to the Atlantic Ocean. understanding in regard :.to the several types commercially available. Mo one reBin will fit every use--generally you must compromise on some qualities as you emphasize others--but that is true with all the materials you use. We have pointed out a few of the major points of usefulness of each group1, but we want Ralph H. Everett ucts being manufactured or sold, it would of course be necessary for him to under stand the terms as used, but often that Ib not the case. The two departments of our companies which should be clear on the terms used are the sales departments and the tech nical departments. We have two more clubs in Canada, These clubH compose, or represent, about six hundred Individual paint and varnish manufacturers, so we feel that when we make an investigation, that any report which may be turned over Is quite representative of the entire industry. Membership In our federation Is com to emphasize again in closing that your final selection for any particular going product must rest on your study of In dividual resins. ' Chairman Kennedy:--I am sure this group thanks you for this very excel lent classification of the resins, and now we would like toj hear of the "Nomenclature of Synthetic Rosins as ' Seen by the Consumer,'' following which we will be gladj to have any discussion on this point.\ I will ask Mr. BVerett to give you the view of the consumer on synthetic resin. ja Consumers' Views Ralph H. Everett:--Some of" you "may have had the opportunity the other night of attending the dinner ofjthe Federation of Paint and Varnish Production Clubs. If you didn't there was d new piece of entertainment used this ! year, by the New York club, a little skit depicting the life a production manager twenty years, hence, and among the little events that occurred In this skit was the fact, that this production manager while seated at hts desk was told of the arrival of a resin salesman who rushed In with a? very con siderable brief case, and ivory" consider possible and agree upon some simple terms which we could apply to these var ious products and which would indicate the type of synthetic resin Included in the formulation. Such a form of nomencla There are two schools of thought in the training of salesmen for the paint and varnish industry. The one, that the less the salesman knows, the better he sells, and the other that the more the salesman knows, the better he sells. ture should bo adopted universally so that when a product of a certain class was mentioned there would be but little pos . a It amight be mentioned at this point that It Is not a vital characteristic of sell ing that the salesman either divulge or sibility of confusion. Common acceptance or common use of certain terms In any industry make for progress. First of all it would seem possible to eliminate one class of resins from the dis cussion, Ester gum has been classified by'the previous, speaker as a synthetic resin. Not all paint and varnish chem ists will agree that ester gum is a syn try to Impress upon his customer, or pros pect, his amount of knowledge. It might also be stated, particularly in industrial sales, that the man who does understand the technical differences in the products which he is selling, is certainly at definite advantage over the man who does not. It would be a matter of but little difAcuity to Inform _ a group of industrial thetic resin. It has been so commonly used over a great period of years In so many varying types of our products' that It Is doubtful that we should find it neces sary to include it and make our problem more difficult. . That leaves us products from the fol salesmen as to the differences In results which would be obtained from products in which these various resins were incor porated. Information as to the behavior of products'containing these resins under the following tests, would be instructive and of considerable assistance to the sales, lowing resins which we should attempt to man in determining what type of prod classify and .name* .Phenol resins, both of the modified and unmodified type; alkyd reeins of all uct was either desired by his customer or being used by hie customer: classes, which, to repeat, are the unmodi Resistance to cold fresh water test. fied 'type,' the type modified principally Resistance to saltwater test. with natural ream acids, the type modi Resistance to boiling water test*. fied principally with non-drying oils or Resistance to alcohol, fatty;-acids, the type modified principally- - Resistance to alkali. . with drying oils of fatty acids and the Behavior under exposure test. - posed only of those people directly con cerned In production and technical af fairs. I wish to repeat because that really Is the main pillar of our growth and suc cess, that membership Is only composed of those people directly concerned In pro duction and technical work. . Cost of Servicing . Now, as the first step about this cost of servicing, I would. like to treat it briefly, and we might consider the first step of matching samples of competitive goods., Or perhaps we might consider the: development of new products which might open up new markets for your goods. Of course these requests usually originate In the sates department, sometimes, the sales resulting from turning in a -sample for a match might well compensate you industrially, for the trouble and expense of matching that sample, but In many cases the salesman in the -he'd Is turning In samples merely to show he Is on the job and out working, Whether or not they will bring in profit is another matter. Some manufacturers In the industry treat this matter in such a way that they can throw on to the burden of the sales department the boat of matching these samples or the cost of the development work. In order to do that the laboratory generally makes up a budget of- the cost to match those samples, or the cost to able samples and informed1 the production manager that he was there to tell him about the eight hundred} and thirteen final type which is modified with phenol resins, and* finally, the cumarone resins. Development of surface hardness. produce these new goods. That budget ' Description of drying characteristics Is then passed on to the sates depart and adhesion. ; . ment,. who eventually will be charged for varieties of resins which I they were of-' . Classification Groups Compatabillty with certain solvents. that expense. fering, to him, and he also, brought along a man who remembered the numbers which he forgot. / | The line went-over very [very well with all of the fellows Interested in production in the room, biit it didn't fco over so well with some of the others, ) The previous speaker has covered-.in de-, tall tiie various synthetic resins which are. commonly " used In . the formulation and preparation of varnished paints, > and lacquers,' and has pointed out the im portant facts with regard, to the con stituents in these resins and has classi fied them from the resin ^manufacturer's standpoint in groupings, [ which to the technical men of our Industry are quite understandable* j ' Fortunately or unfortunately as one views the situation, technically trained- men form but a 'small proportion of the executive, sales,' office, find production forces or our industry. It would seem therefore that any effort Which' cop'd be made by the units of opr industry to adopt a uniform, simple! nomenclature, easily understood,: for products which In clude, ds a basic element, one of these resins, would be a forward step in the right direction. [ ' The word, "synthetic," has `become a term of very great importance .to the public at- large, particularly since the World War. It might be bald that when the term, "synthetic," was first applied to any product* the public as a who1a rather viewed- .-such a ; product with suspicion. This attitude however .has later changed to one in which tihe term,' "syn thetic, ^ h<B given to the product in ques tion, something of value. This change in public ouinlon has probably occurred be cause many of the .synthetic products ex ceeded in quality : the natural products which were replaced, j We found the term, "synthetic," being openlv mentioned In our industry, prob ably about six years ago, .and the unfor tunate part Is that It has been loosely used. We, the manufacturers, are prob For purpose of simplification it would seem. possible to group all of the resins which have just been mentioned into four . Keeping quality both in the original package and in storage tanks where such are used by the consumer. classifications and to term products made Differences Are Definite - from these by the name of the resin prln- cipally used---these four groupB to be as A very definite difference Ib present be follows-Phenol resins, alkyd resins, phe nol alkyd resins, cumarone resins--with names corresponding for products into tween products made from all of these ; four groups of resins which are meti- . tloned, and if your. salesmen are in which they might be Incorporated as the formed as to these differences and be principal ingredient, which would mean come accustomed to thinking that certain phenol enamels; alkyd ' enamels, phenol characteristics will be found In products alkyd enamels,. cumarone enamels or var . in which a certain resin is present, It nishes, etc. ' . Let us review this suggestion. We use both, unmodified and modified phenol res ins. A varnish. or enamel when made from from a modified that' made phenpl resin will differ with unmodified phenol, resin in physical. properties. If a sample ' of such varnish is submitted to one of your laboratories, it is perfectly within reason to expect your laboratory, on an Inspection of the physical characteristics of that varnish and Its resistance to certain well-known tests with'which we are all familiar, to be able to almost definitely .assure you whether a modified or an un ' modified phenol has been the base of the varnish in question.. It would seem perfectly possible for a sales department to name a varnish made from either modified or unmodified phenol resin as a phenol varnish and the term would be fairly inclusive. In years gone .by, you certainly will all recall, that when a varnish was called a - kauri varnish, such a name typified a product which included kauri resin among the Ingredients, but it did not by any ' chance indicate what grade of kauri or what grades had been used In the formu lation, nor did it indicate the proportion of resin to oil, the amount of nonvolatile contained in the varnish, the character of processing of the oils which had been used In it and simply therefore designated the varnish as one of a class. By the same reasoning the fact that you use the will require but a short time for .the sales department to be . talking . the same language as the laboratory. Some Industrial- -consumers of paints, varnishes and lacquers are Inclined toward technical information and wish to know as much about the product they are using- as a finish as -they possibly can. -When such a -condition, exists it -would seem desirable to furnish as ample Information as possible, and the - more simple-and fewer the terms used-innain- lng - these paint,- varnish and lacquer , products in which these resins are used as Ingredients, the better , it would seem for all of us, ' The other class of Industrial buyer who Is interested only in results, irrespective of the ingredients of the finishes which are employed, will probably be uninter ested In what terms our industry uses on our products. Nevertheless with the amount of technical articles which are constantly appearing' in the publications devoted to industrial finishing, it is only logical to assume that purchasers In the future will be more inclined toward receipt of technical information than they have been in the past and the more simple we can make the names which we use and the more brief their number, the better it would Beem that we would progress toward a classification of the term, "synthetic," as applies to the prod ' ucts of our industry. Chairman Kennedy: Thank you ably as much to blame for the loose use. name, "phenol, on a varnish would give very much, Mr. Everett. I am sure as anyone connected with] the picture. you the class name for it and you would that all will agree with me that that is When varnishes', and resultant paints have a definite indication as to some of a very Intelligent paper, and a very ex and enamels which contained as an in the characteristics which might be ex- cellent start toward a constructive Mow, if the sales department realizes that they are being charged for it, and that they must show a profit, then they will not ask for it to be made, or that development work to be carried . on un less they- see eventually that it will be a profit for their department. In this way, quite a few of the samples that are turned In are considered as unnecessary to do any development work on, I just pass this on as a possibility of how we might co-operate a little more closely and how we might stop this high cost of servicing through matching too many samples, which are unnecessary. About Small Orders Secondly* let us assume that the sam ples have been matched-and that the order has been received. In this case, the first orders that come in, of course, are very ' small, and our California club In San [Francisco, this year started some in vestigation work to find out the status of these orders' which they can '"nuisance orders," By."nuisance orders," we mean orders for four gallons of special paints or colors which have to be produced un der special conditions, they are not stand ard articles. The nuisance orders which come as a result Of these samples gen erally are Industrial goods, and so apply very closely to you men. The club asked us in the federation to get this information, which was done, by sending a questionnaire to each of our eighteen aepociated clubs. These clubs* in turn, contacted all of the manufac turers within their district. The results of the questionnaire were verv Interesting. In the first place, over 75 percent of manufacturers indicated that they ac cept this small tyoe of nuisance orders--7B percent. . In the second place, most every manufacturer reported that these nuisance orders constituted less-than one percent of the total orders received. A few manufacturers, however, reported that this type of order constituted from in to 50 percent of the total orders, re ceived. FlnnJIv, the most Important result of this Investigation was the fact that 8C percent of manufacturers who replied said w ft \ ' . OIL, PAINT AND DRUG REPORTER i November 14* 1934 39 that they made a charge of from 26 cents per gallon up to one dollar per gallon for this type of order. Now I am splendid spirit of helpfulness* understand ing, and co-operation that has charac terized that contact throughout. ber-owned* member-controlled, and cost operated credit interchange system of the National Association of Credit Men*--co Where Are We Going? not saying that this charge Is passed on ultimately to the consumer. In many cases this charge has been assumed and taken up by the sales department, who In turn pass It on to the consumer If they can. The federation appreciates that most of these nuisance orders falls in line with Industrial sales and wishes to bring the matter before you, with a thought that possibly you might wish to bring about more universal and uniform meth ods of making some additional charge per gallon on this type of order. So that instead they will be profitable to your concern instead of just headaches. We feel particularly close to the Na tional Faint, Varnish and Lacquer Asso ciation because of'that long and friendly association, and also because so many of your members are also members of the National Association of Credit Men, A recent survey by Industries of the make up of our credit interchange mem bership revealed the fact that your indus try led the list and made up 6 percent of our total interchange members--so we're really one large family. Most of you present are fairly conver- . sant with the details of the industrial credit plan--fact, I see here some of the men who evolved, that plan--but just operating creditors in every line of busi ness, in all Industries covering every market of the United States, and that is important. Ledger information to tell the whole story must be1 Intermarket and, Interindustry if it Is to give a representa tive description of a debtor's paying habits. Paint and varnish might he only a fraction of a debtor's purchases of labor or steel. The paint creditors exchange of information would he most incomplete. Add to that the ledger Information from the lumber and steel creditors and per haps a dozen other industries in as many markets, and Mr. Debtor's conditions stand revealed cleariy.and distinctly. . J. R, EspoBitoThis happily* is the first anniversary of the birth of the in dustrial finishes section of the National Paint* Varnish and Lacquer Association. What has transpired since it was officially bom at the iEdgewater Beach hotel, Chi cago, last October, has been variously and well described by the speakers who have preceded mo on this notable occasion. As ihe sponsor of the Industrial fin ishes section of our association* I feel at liberty, if not by solemn duty, to am plify some .of the remarks which have been made :at this meeting, with par- Adjusting Troubles Another way in which the federation mfght help was suggested last year by J. R. Esposito, He thought that we might help by getting up a "trouble shooter," By a "trouble-shooter' we mean some method, to pass on to the sales department, to adjust these Industrial complaints on the job Instead- of bring ing them back tothe plant.. Let me state just one way In which this might help. , , .. I heard of a complaint in the industrial to avoid overlooking anyone we'll sketen the high spots of the plan hastily, ' The industrial credit plan for the Na tional Paint* Vamiah and. .Lacquer Associ ation was conceived and formulated by your credit and collections committee with the cooperation of the industrial sales committee and other related sub committees. Briefly* it proposed three steps to an improvement of the industry's administration of credit on Industrial accounts;--* .. ' j I* The use of credit Interchange serv- That then is credit interchange* the alt-' Important stop number one laid down by your committee. The plan Is a splendid one* compre hensive yet simple, accurate, efficient* and economical, and given a measure of co operation by the Industry in general, can not fall to - accomplish Its objectives. Some minor corrections and adjustments have been suggested and will be con sidered by your committees such changes as are necessary will be made from time to time. field a short while ago* about a heavy skin in the can. It seems a man had 2. The issuance of a monthly con Turning Losses to Profits to go on a job and the customer told the man about this very thick and heavy skin on thB top of the can, on the ma terial, The salesman -brought the can back to the laboratory, and 1 must ad mit* from what I hear, that the skin was solidated report on delinquent accounts. 3, The* issuance of an- annual con solidated report on bad debts. ' Just for a change, werll look those three steps over backwards. The broad objective Is to Increase net profits. Detailed, that objective divides itself into an aggressive attempt to. teduce or, If possible, to eliminate the Industrial bad debt loss, reduce the accounts receiv able outstanding. ,,. very, very thick, ' , The annual bad debt report needs little We are happy to report that real prog It happened to be that type of gallon can comment; it fs a compilation of charge- ress has been made particularly In the where you cut out the top with a can- off accounts, attorney accounts, and per Midwest. Already that part of the con opener. In this instance the top of the manent C.O.D.'s. its advantages and solidated report covering that territory can had dropped down on the paint--and uses are evident and from a statistical is assuming worthwhile proportions' and they thought that it was the skin formed point It has very real value. providing more and mors valuable Infor from the paint. . . . The monthly consolidated report of mation. We anticipate a real advance Now if that could have been adjusted delinquent accounts Is . another supple ment on the, East coast this Winter, and on the job it would have saved a lot of mentary service with which you are all are hopeful that shortly after the first of expense, the' expense of bringing it back familiar; it represents the compilation the year the plan will have really na to the laboratory. of delinquents classified according to their tional scope and coverage, . Information On Materials Another possible opportunity of - our helping Is in regard to raw materials. You have heard quite a bit this morning about synthetic type of raw materials, raw res- lne* but there are many other types of raw materials coming forward every day. The federation Is in a position' to get first-hand information about these new raw materials. Very often they might adjust or open up some new mar ket for Industrial sales, . You men, however, are on the firing age. This report has many definite ad vantages and of course very definite limitations. It constitutes a real warn ing signal to the /credit executive, points put accounts that require .an up-to-date Investigation and can be made extremely helpful In the collection manager's work, It must now, however* be relied upon for a credit appraisal for it lacks several very necessary qualifications that we'U find in step No, i and that, the very foundation, the backbone of the industrial credit plan is credit interchange, or what is also known as ledger information. From past'experience with similar plans In other industries* we., know your In dustrial credit plan wilt reduce the in dustry's bad debt loss and Will definitely reduce your outstanding accounts receiv able, and a definite trend In the direction of reduction Is already discernible. More over the plan will furnish your credit executives with a more comprehensive and more accurate method of credit analysis, which in itself will pay huge dividends. The industrial credit plan is practical and requires only the co-operation oh the line, and know just how some product should be developed to open up this mar ket for you. What we suggest is this. That you bring the problem to the tech nical man, and perhaps he has something in his laboratory, at the present time, which might be adopted for that new product which in turn will mean more sales for your department The federation has recently completed its convention this year, .and I merely wanted to tell you about some of the types of papers that are being carried out by the individual clubs. These papers are carried out by the technical committee In each club, who arc actively working all year. Some of these papers had direct concern with industrial problems, Research Work Interchange of Information part of creditors to succeed, Every Step No. I of the plan--credit Inter change--is just what its name implies, creditor participating In the plan perfects it in coverage* accuracy, ana efficiency. the interchange or exchange of credit Your association officers and such mem information, ledger information, than bers at T. J4 Kenny, chairman of your which there is nothing more necessary credits and collections committee; Paul In credit appraisal or analysis, it Is Kennedy* chairman of your Industrial unerring, accurate, and prints a picture Bales committee; the members of those that is just unmistakable. It Is remark and subcommittees that evolved this in ably fortunate that creditors themselves dustrial credit plan* have rendered a real possess this invaluable system of ap-. and lasting service, not only to your pralsaL Creditors have the facts they' industry but to all industries. We wish need. All that is required Is to pool to pay tribute to their forward-looking those facta into one clearing system, - plans for the improvement of credit, and compile the facts, and lo and behold! we hope the co-operation their plans de they have right there' before them sub serve will be forthcoming. For our part, ject to their critical inspection, their . the National Association' of Credit Men debtors' accounts payable ledger. All willingly and freely places all Its depart his accounts payable? Yes* if all the ments, all its facilities, at their and your' creditors contribute their Information and service, whether It be for this industrial For Instance, our Clncinhati-Dayton- where and when, and how much and credit, plan* credit control, collections* Indlanapolls club has been working all how. long, and on what terms he's been liquidations, or any other service bene year on .how to correlate laboratory buying and what is most important how ficial to credit and business.* J. R. Esposito ticular reference to the address of our chairman, Paul Kennedy, and to fully awaken all the members, both present and absent, to the fact that all is not quiet and tranquil on the old Potomac. I am sure none of us realized the difficulties with which we would be confronted in assembling this Immense jigsaw puzzle titled, "Industrial Finishes Group"-^ach member a part--each, part a mate. "We put -It together all right, and the pic ture was perfect. We hung it up so everyone could have a good look at it-- miles away! and at close range--but the audience, I| am sorry to say, has been pretty damn unresponsive. Perhaps I sound like a "park-bench poet" dispensing a lot of "hooey" but it is. nevertheless, the truth. * ' Consider ; gentlemen, If you will, what the steering committee has encountered since It first started to function about the middle of January; meetings galore hav* been held iln New York and Chicago, always with a full attendance; but why all these meetings? - They were first* for the purpose of se curing the best man to head each com mittee, which was most important; and batches to actual production. * This wilt bring a direct Influence on the he Is paying his bills, marvelous facts The. plan is a special one, It depends on second, to get the necessary number of for the man who must gauge that debtor's .only one thing, and that Is co-operation. men In the industrial field to complete the cost of servicing because all of these new things originated any way Id the labora tory* and they must .be made up In ;Buch a way that they can be put in the fac tory to be made up Into orders. In this way is the way of testing -chemical resis credit worth; facta that are absolutely necessary to the creditors; facts that only creditors hays, - All that is .required is creditor co operation and that you have in the mem- That you must have. It Is'evident that unless the majority of the members who are going to benefit from such a plan must co-operate* there Is nothing .to get.1 You can t obtain anything unless co operation la there and this ledger in several committees. At this particular point, I wish to state that I was!compelled to resign' as ohairman of thej group owing to the pressure of business iaffalrs and demands upon my time by mjr company, and Paul Kennedy tance of protective coatings* directly formation is pooled. ." . most graciously* was-kind enough to re concerned with industrial sales problems. The broad objective Is to ` Increase, net lieve me last April. Mr. Kennedy put In The New England club presented a very interesting paper about the protec tive and decorative coatings on new con crete floors. Perhaps everybody in this room has had some trouble . with the paintings of new concrete floors, and we feet that the work of this New England club is going to help you overcome a great . deal of that trouble. The Pittsburgh olub read a very nice paper, about the comparison of various pigmentB and vehicles, in.. rust-Inhibitive profits, bring them down *o that it could be best accomplished by a. reduction of your extremely large bad debt loss. You have had figures on that for over & number of years and I suppose the first real objective would be to reduce that bad debt last, and second, of course, to reduce your outstanding accounts receiv able* and lastly add to the scientific In formation and professional method by which your credit men may engage the credit worth of protective debts. a lot of hard work, practically subordi nating the affairs of his own company, as did the members of the steering commit tee In a smaller way, writing letters, 'nhonlng, telegraphing to a number of in dividuals in various parts of the country* * and inducing several outstanding men In the industry to accept appointments as chairman of this and that committee and/or members of committees. Ernest Trigg also played a very prominent part in tills respect. primers. Another paper which is di Just as a sidelight there, the national AH Must Work Together rectly concerned with industrial sales In that It might open up new markets for some of your products. . In closing* Mr, Kennedy, let me say that all of the members of our federation are young* and full of vim and vigor, and we are very anxious to help you in your work. Give us the Job and we- will try : to do it. ' And. Mr. Twlgg, I say the same to you, "We are very anxious to oo-operate in any way, for we appreciate that co-operation is the keynote of success. We in the plant must make our profit, and the sales, and we also must work together and we are very anxious to co-operate. Thank you. Chairman Kennedy! Thank you* very much* Mr. Anderson, I am sure that we will keep that in mind as the years go on. . They have had very Interesting re sults in the furniture. district with an Industrial sales credit man* and we will next hear from P, J, Gray, of the . National Association of Credit Men* on the accomplishments of the Industrial association Is co-operating with four hundred different groups,- and I suppose each one of them has a different plan. The four hundred different groups, some form of Industrial credit pran is used and from' experience with those groups* we can assure you your industrial credit plan will reduce your bad debt, We are honeful that It will eliminate it entirely. We are positive it will reduce your outstanding accounts receivable, and over and above that it will give the credit executives in your industry a scientific, a professional method of credit appraisal that will pay huge dividends. We are sure tnat the objectives for which this plan was designed will be reached. It has been a real privilege and pleas ure to meet with you here, and one that I appreciate very, very highly. you. Thank Chairman Kennedy :*^Thank you, Mr. Gray. In the old days when vaudeville was popular* I imagine most of us were .patrons of' that *and we al ways waited for the next to the -last To be sure, something has been accom plished to date, but we are still lacking in many acceptances to fill the commit tees as' we desire, *We simply have to have men- who are thoroughly enthusias tic and willing to lend a helping hand to put this proposition across, but unfortu nately tnoJe men most competent to serve have ; for one reason or other de clined. If we all mean business* If we are all serlpus about upbuilding the in dustrial finishes industry* then for God's sake let's pull together and do something about It without selfish motives* subter fuges, and- undue individual gain. But - there prevails an attitude apparently of. "To hell with you--I will look after my self," Such1 an attitude Is disastrous and simply will! not work in the long run. Comes the day (as has always come to sinners in our business) when they must give up and whether they be large or small* they cannot escape destruction any more than they can avoid death and taxes. |. I firmly believe that the paint, varnish and lacquerjindustry can well be regarded as a barometer of business in this coun sales credit men as it has actually act because that is where the star try* rather than steel around which worked out. We will now hear from Mr, Gray. Industrial Sales Credit Plan always appeared, I don't know why* but that was the spot on which the feature number appeared. Bo in arranging our program, we have our star number, next to the last everything seemed to gravitate up to re cent years. ; In a way the latter still is, but It has lapsed Into a lethargic state* and we seldom hear it mentioned nowa days as a measuring stick for permanent recovery and prosperity. By and large, on this program. The next speaker I our 'business can and should be estab Philip J. Gray:--It gives me great am sure, heeds no introduction to you, lished as the pivotal industry to deter pleasure to bring, to you the most cordial greetings from the directors* officers and staff of the N.A.C.M.* and to express the hope that your national convention here in Washington will be at the same time pleasant and productive of much that is valuable and worth while. The contract between our two associa Arlington Machine Works At the 1934 Paint Industries but he certainly deserves your com mendation, because-he is, and was the moving spirit in the formation of this industrial sales group, Without any further introduction, T would like to call on the "Daddy" of the industrial sales groun. Joseph Es mine the trend of general business condi tions throughout the country. This thought may sound absurd. If not fantastic, but It Is far from being either. You must bear in mind that the products of our entire industry go on practically everything we see or touch, be it steel, wood, fabric, or tinplate. About the only tions has been a long and pleasant one, and we are all deeply appreciative of the Show posito to p-ive us some slants on where we are going* ; thing we do not decorate* finish, or paint* is the hole in the doughnut. Then why OIL. PAINT AND DRUG REPORTER November 14, 1934 41 should we not only aspire to,'but actually achieve this result? Instead of dlsintegrating:, let's integrate, and if this sugges tion is accepted seriously, we will- soon reach our goal as the mainspring of busi ness. Perhaps among the millions of users eral discussion, and I wish you would take this opportunity to comment on the papers, or any other subjects of general Interest. In that connection, one subject which has been proposed to me is that some that if all of the other groups functioned as well as the metal finishing' groups was functioning, that a great many of our problems would be lifted. Chairman Kennedyis Wallace Bennett here? Would you mind telling us a word about the West I know that you directions as to what I should do, and I said, "Doctor, ;how about drinking?" He said, "Oh. I don't object to your drinking. I am pretty liberal about those things." .- . When he said that, he had said all I wanted him .to. say, and the prescription of our merchandise, there are not a thou sand people who do not look upon the activities of our industry as a "ra'ckotv'-. By gosh l It is becoming a racket and T" wonder who In this room dare argue that' it is not Off and on for many years, some bright statesman has tried to jam a bill through the State legislature compelling the man question would like to be asked upon the progress of the lacquer license sit- .nation. I know I had.three questions handed to mie, and if there is anyone else here from duPont they might have some. One question asked was "How the industry was progressing." are not so strongly interested in In . dustries out there, but possibly you will have- a message that would be of interest to the group. .' Mr, Bennett:---! was looking around the group for Goldberg. He ia here from San Francisco and he does an industrial business. I think that he might give you a much more intelligent discussion of that. was satisfactory and I asked no more, but.Mrs. Cornish being there said, "How much. Doctor?" Then the doctor proceeded to answer, "Two tablespoonfuls a day." That Is an other of my sorrows. Now, I don't believe that I ought to have an opportunity to meet by old friends in this association* without trying to say ufacturer of paints to print the formula on the label. The reason for a bill of this kind is obvious. When it has happened and when it hap pens again, hundreds of- paint man ufacturers literally go crazy and do everything in their power to prevent the passage of the bill; the effort In this di rection is generally believed to be quite successful, The point which- X am attempting to Another one was "How much of a threat is high-viscosity lacquers1'? An other was, "What do the members think of the present price schedule?" I suppose there are a lot more. Would you object to commenting on those questions? Lacquer Licensing . There are a lot of people who think that the Harlem River is the western boundary of the United States, and there are a lot of people that think that the Mississippi River is the western bound ary of the United States--but it Is a fact, that Salt Lake City is as far from San Francisco as Chicago Is from New York and for me to say anything on this situa- something. Still, I don't know. I have nothing in particular to say- to you, with the possible exception of this. I think that the depression--the fact that so many;people found their securi ties reduce in value, so many people loBt most of their ; savings--I think that has operated to improve the condition, the morale of the people, I don't believe there is a man In the United States who works, who would not welcome an op make Is that they have no one to blame H. E, Lackey:--Mr. Chairman, we portunity to work more hours than he can but themselves. In the industrial finishes started out on this lacquer license sit field the manufacturers of those products uation, and I think that there was a lot now get I am sure that they all want to work. . need have no fear of State or governmen tal interference of this type. Their fear of possible extermination Is the result of of scepticism In the industry as to first .on.the object'that we announced as being our objective, that is to * advance the i rJul! sure that there is a good morale in business. I am sure that those two things are going to improve the business ridiculous price-slashing, calling a piece cause of lacquer In the Industry so that of goods "synthetic* when it Is far from we could all make a profit, and second, conditions of this country, I have ap peared before this body many times in It, and many other methods of vending- as to the ability of maintaining prices. the last seventeen years, but I have al their wares, too numerous and stupid to mention. Finally, the selling scheme In which the moat flagrant offense is found I think I ought to say that we want to thank all 1 of our licensees and every body ' associated with us for their `co ways sounded a note of caution, I have always expressed a fear. Today I see absolutely nothing in the future that will and the worst abuse ever perpetrated upon a customer already suffering from other ailments born of the depression and other causes, is the one called "reciprocity." operation. I think that we can report that we are getting, absolutely, the co operation of all of our licensees, and the industry, and we are now making Proaperity of the people of the press statee 1 have no fears to ex- TrJi+j?cL `$ha* of the Evils of ^Reciprocity** a little money in lacquer, Chairman Kennedy:--What is the num united Statesj are loaning money at the lowest rate of interest that I have ever Ways and means and all sorts of dev ber of licensees? known in an attempt to get people to bor ices are employed by a number of manu Mr. Lackey:--Two hundred and forty- row money and increase their busi facturers in our line, in the attempt to five licensees, which I think comprises ness facilities. Of course. I know extract business from their competltore about everybody that makes and sells . when the banks found their se to the exclusion of a more worthy and low-visoosity lacquer. curities being; reduced and banks fail experienced maker of the products. The Ab far as I know, the customers, our ing ail over: the country, they also customer, influenced by the injection of customers have accepted >the proposition, a tesson. They learned that they the "reciprocity" serum into his system, of course, a little unwillingly because must have their paper properly secured, must, perforce (and with reluctance) take they have to pay a little more than they _che hammer blow on the chin and deal were paying, but I think the general that has made them careful in loaning money. with his purveyor on the basis of reci Idea is that the prices that were estab procity. If he were dlong a fairly nor lished are sound, and that they onty Credit Conditions mal business, he would not take it on the chin and be made to like It Herein lies the main act in a show called "racket" which I mentioned before. The reciprocity blow is not applied gently, but with the same violence use by the.racketeer in put ting his man on the spot. ' It Is needless for me to remind you that our type of business is highly spe cialized--necessitating considerable re . search---far more today than as recently as five years ago. As the present time the question is not what particular material will answer the customer's needs, but which'of many types will best serve his purpose---fossil gum, lacquer, or synthetic, and of the synthetics, which of a hun dred? Laboratory expenses are mounting daily, as is true of service charges. It is to be hoped that we will not soon reach the state where our factories become one great laboratory, populated by armies of service men and only a couple of millhands. Ail of these expenses must neces sarily be prorated against every gallon of material turned out and sold. The sell ing price must, therefore, be .commen surate with the total cost of development, production, servicing, and sales expenses and allow for a reasonable profit. The paint manufacturer is not by any means confronted with these same prob lems and difficulties; his Is more nearly a run-of-the-mine proposition, laborator ies and service men being definitely in a minority and not so important a part of the overhead as ia true In our line. There fore, when Industrial finishes are sold at the same margin of overhead as paints, the sensible and legitimate manufacturer of that product finds himself utterly, un able to exist. The only way he can catch up with himself Is to go Into the paint business in conjunction with industrial finishes and play the game the same as the manufacturer who 1b Interested pri marily in house paint, but dabbles In in dustrial finishes to the detriment of the represent normal profits to us. High-Viscosity Lacquers ' Chairman Kennedy;--^1 also have the question of "How much of a threat is high-viscosity lacquers?" Mr. LackeyHigh-viscosity lacquers are just as much' of a threat as you want to make them. Technically you know the difference be tween high-vlscoslty lacquers and low- vlscosity lacquers. in different fields there are probably different threats, X think that the main answer Is that you will supply your salesmen with economic answers, a high-viscosity lacquer In most fields will not be a threat. Price Schedules Chairman Kennedy:--Another question was "What do the members of the In dustry in. general think of the present price schedules?" have you, had many suggestions? Mr. * LackeyNo, we have had very few suggestions for changes in the price Schedule. . Chairman Kennedy:--Is there any body in the meeting that would like to ask questions about lacquer In the first place to get Mr. Lackey in front of us and have some authoritative source to ask these questions some of which, are of interest to all of us. Are there any questions on lacquer? Well, evidently everybody Is pretty well satisfied'with the situation. That is' one thing that Is ironed out In good shape. Thank you very much, Mr. Lackey. We are honored today, In having with us a representative from the coast and I think it would be of great Interest to all of us to get any slants which might come from that section. If S. Goldberg would be so kind as to step up and favor us with a few words at the microphone, I am sure that it would be greatly appreciated. E. J. Cornish tion In San Francisco would be like ask ing Frank Sulzberger to discuss the New iork situation. I know that there is an industrial busi-, ness out there, probably with the same problems that you have, but if you could find Mr. Goldberg, X think he could tell you about that. Chairman Kennedy:--We tried to find him but he had left. Are there any further comments? P. H. CallahanInasmuch as there Is nobody here from California, I might use the alloted time to speak a few words with regard to the climate of that State. I rise for an entirely different purpose, however. A couple of years ago, attending a con vention In Chicago, I think, as I was passing by, one of those younger people, remarked, "There goes old Colonel Callahan," and to add to my realization of my old age,.I was put upon the arbi tration committee, and with a chief jus tice at my side, we came In here rather late and missed all of the good things that were both enlightening and enter taining. I should remind some of these mem bers. however that I was the youngest president of this association, over twenty years ago, and I am now referred to as the "old man," as being on that arbitra tion board, and with Frank Chessman and "Chief Justice" Cornish, ahd I begin I presume they are careful, but the ^5, wlhln ^st three months the National Lead Company has been . offered by three different brokers, in New York, a million dollars or less for SLX TMntha or a lesser time, at the rate of three-quarters of one percent interest, plus the commission to the broker, has surprised me at the extent to which, the bankers of this country are trying to get people to take! loans, when they can prop erly secure them. 1 have no doubt, therefore, that you ar_f going to find money fairly free. To what extent the credits of the govern ment can take the. place of credits of 1 know' * <^n well be lieve that as -long as there is an uncer tainty as to wbhaectkhetrhyaotuyaorne fgooainngld tots^rett there will be a hesitancy In making in vestments to be returned in five or ten years. I recognize that that question Is becomI?!*,one, but J have no doubt 5SS &&"*aee 1116 troabIes ^ 'We will halve credit forthcoming for everything that ought to have credit. We have got the best morale in business that I have known for years. It Is the only time that, while I recognize all of the deficiencies of the present, recognize them fully, that I can not look into the future without seeing the Improvement coming to us very fart, p I think that Is the only message that I have to bring to my friends here. X thank you for the reception you have given me, and. I assure you that last night and today constitute one of the most Fnleasant times I have ever had. because am meeting: so many of my old friends. Now, of course, there comes a little pain when I look up and don't see Horgan; when I fail to find my old friend Chat- whole Industry. Is Mr, Goldberg in the room? Evidently to realize my years. field ; when Ludington Patton, one of the Let us, then, elevate our industry and give it the dignity it once possessed and regain the wholesome respect of the con suming public and Industrial users. There is not a possible chance of victory unless we all get together in one concerted ef fort, each and everyone of us accepting our Western friends have deserted na. Now, are there any other topics or thoughts that any of the gathering has in regard to our Industrial proposition? There certainly must be something in your, minds, and this is the best place and the most opportune time to get it oft your I think that we should appreciate the appearance of Mr. Cornish at thia moot ing ; last year he was unable to be with us X was highly complimented during the year, on a couple of occasions, calling on the trade, to have members say, "I missed you' and Mr, Cornish last year, with your shrewdest, keenest business men I have ever known and one of the most honest men in business that I have ever known, has passed to the great beyond. But my present pleasure, gentlemen, in feeling strong enough to come here, in meeting you, in receiving your greeting, the situation even more seriously than I can possibly describe, and taking an ac tive part in the promotion of the aims of the industrial sales committee. This ends my little talk, which I have purposely made very brief, but in these few words I sincerely hope I have con veyed the Imperative need to all members of the association in our group of getting . on the "band wagon" and helping the good work along. ' Chairman Kennedy:--"Product value and subcommittee activities." Is David Andrew here? Is L. F. Beatty here? Have you anything to report? Mr, Beatty:--I thought the mem bers might be interested In this. Since we have been only recently or chest. A C. Horn:--I expressed myself so much last night that I thought I would sit here and listen. Chairman Kennedy:--The wood group is arranged with another group this af ternoon. Is there any member of that committee here? Mr. Horn:--May I suggest that you call on Mr. Hasson to report the pro ceedings of the metal group. Chairman KennedyIs J. O. Has son, of Sherwin-Williams, here? No, he Is outside, Metal-Finishing D. P. Joyce j --1The meeting last night was the first meeting that I had the pleasure of attending, and I thought it usual controversies over nothing." We both have a fine regard for each other, and a mutual admiration exists between Mr. Cornish and myself, and we have, perhaps, In past days taken up too much time, hut as you know, Mr. Cornish haB Jumped Into the hearts of the mem bers of this association until we must recognize that, perhaps, he -is our first citizen, and having him here again this morning, to be frank, we didn't expect him to come back. It is a great honor to have him here, and I wish you would take recognition of that and ask him to occupy a seat at the table. Chairman Kennedy:--We would be de lighted to extend that honor, to you, Mr. Cornish, and I wonder If you would give us the pleasure of a few remarks. your smiles, your handshake, is one of the greatest pleasures I have ever had. Don't think that the breaking of my voice means weakness. It: Is the enormity of the emo tion that makes me weak, not the defi ciency in my body. Chairman Kennedy:--I am sure that Mr. Esposito will not be offended, if I say that we have Just heard the star act then. Thank you; very much, Mr. Cornish, and if 1 ma# voice what I feel, it was the greatest . bit of inspiration to me that I have .had personally in a long, while. And to you,: Colonel Callahan, for mak ing it possible to hear Mr. Cornish, and to be so thoughtful in the matter, I am sure that I convey the thanks of every body here. ; ganized, we have nothing to report. Just what form our activities will take I don't know. We haven't been organized long enough to give you the feeling of the thing, but I anticipate we will have plenty of suggestions the next year as to courses of action, and I hope that we will have* a good, busy year. The committee Is as follows: S. R. Matlack, H, C. Shedd, Lawrence Phil lips, Ben Patterson, and myself as chairman. That is the sub-commit tee on marine and industrial main tenance.; General Discussion Chairman Kennedy:--W. I. Longs-, worth is ill; C. L. Sullivan had to take a train to New York. Now the meeting Is open for gen was very constructive. We learned a lot from the very in teresting comments made by Mr, Horn on this activity of the metal finishing group, and I for one, and 1 know that all others present, thought that a good deal was done. We talked at length, and we discussed our problems at considerable length, and r know that everybody received a great number of Interesting Ideas, and we are all looking forward to further meetings of the metal finishing group, and I think unquestionably we are going to benefit ourselves as time goes on. X was particularly Impressed to hear the members present at the group meet ing comment on the improved conditions throughout the year as the direct result of the activities of the committee. I am sorry that X wasn't present at the other meetings of the groups, and I think that everyone there, all of the members present, felt that the work that has been laid out under the able direction of Mr. Andrew was very constructive indeed, ` and Z feel Prosperity Near at Hand Mr, Callahan:--Could I say a word here? Chairman Kennedy:--Surely. E. J. CornishI am glad that my invitation Is to attend the dinner. I have been struggling now for two years to reduce my weight, A doctor found out about two years ago I had a 240pound blood pressure, and he proceeded to send me to bed and hire a trained nurse to take care of me. About three weeks ago he told me that that blood pressure was down to 16S. Al though he Is competent as any physician I know of, I don't know what gave me high blood pressure and I don't know what has reduced that blood pressure, but I do know that for the last two years X have been trying to eat less--and if there is any real serious trouble that ever comes to a man, It Is to have a good appetite and be compelled to eat less, 1 also was a tittle unfortunate in the matter of drinking. When .1 was lying there In bed, the doctor was 'giving me Comment by Mr. Callahan Mr. Callahan: --X never though that such Inspiration from Mr. Cornish was possible, but it Is fine to receive this in spiration regarding the depression and the changes that it has brought up. I consider the last four years of my life to have been the most interesting, and I should say the most pleasant of' my career--meetlns these conditions person ally in my own fortunes, and meeting the disturbed conditions of our business, . and making ; efforts now and then to overcome these difficulties. American business men have been known to have accomplished wonders. They are supposed to be the masters of 'industry, and a model for the world, ; They have been confronted In the last few years with extraordinary conditions. Too many of them have been weeping: too many of them have sung swansongs; 44 A. November 14, 1934 ' OIL, PAINT AND DRUG REPORTER while on the other band they should have welcomed a formidable '.opposition to their program. They should have ap plied initiative and intelligence and In dustry to overcome these problems that have been confronting ue. We have had that advantage In the last four years. In many ways this depression has been a greet blessing; that is, a blessing, not to me or Mr, Cornish; we didn't have the advantage of an experience, like we have had in the last four years; things were very smooth-sailing. But. the younger men that I see around me who are rapidly taking our places, will remember this depression for the balance of their lives. They will be like the wise virgins, preserving their oil, and when we have another depression they won't be found like many of us were found, with little preparation for the difficulties we have been confronted with. So the new generation in business and the young people have had an Invaluable lesson from this economic depression, and even us older people can look around and feel how much worse we might be if we were in Germany, or the last twelve years in England which is now recovering for the first time, and in other countries throughout the world. : We have had a near-prosperity when they were suffering, and I am one of the hopeful beings like Mr. Cornish, I see nothing but better ^conditions when we can conform to a new social picture. We seem to be headed that way. Things have been Improving as Mr. Trigg re ported yesterday, and so I just want to say that the. depression will prove a great blessing in disguise. For Better Ways Chairman Kennedy;--I am sure that it would be most inadequate with the meeting at this pitch, to prolong it further, and In closing my remarks I two questions, that I would llke..to. ask you. They have just come to me as a result of what he said. One of them is the most Inspiring remark from such a source--that the likewise contribute beauty, charm, and happiness to every home--and in a sub stantial enduring way. That expenditures made for our mate rials do not cause or bring into being re curring or associated expense items for outlook is clear. I would- like to ask maintenance or operation but instead you this question. In the face of that:-- work in the opposite direction, and reduce Should we go on chiseling or trimming or should we set our ships In order and attempt during this year In the course of our industrial sales work, to Improve the price and marketing con ditions of the Industry or not? I the cost of living. That without grease to eliminate fric tion, and paint to absorb the destructive action of the elements and the wear and tear of life, no Industry could exist, and far less move forward. Our industry, gentlemen. Is a great in would like to have you answer that-- dustry, economically sound, definitely should we or should we not---in a good loud voice, (Cries of "Tea.") Chairman Kennedy:---The other thing is about the remark that Mr, constructive and beneficial from every standpoint--'beauty, protection, sanitation, and profit. And; yet, what is our industry position, as compared with other Industries which have originated and flourished during the Cornish made about the eating, and same period of time? what a terrible thing It is to have a What have we done?--How much have wonderful appetite' and not be able to eat the things you like to oat. Now, just as a crude Illustration, that reminds me of a meal that might be composed of bread and butter,-and a nice juicy beefsteak,, and personally' I don't know of anything I dislike more than spinach, so that will be the third part of the meal. Now, our bread and butter Is our we accomplished?--and where do we stand?--are vital questions which should be carefully considered, comparatively weighed, and constructively answered for the benefit of our future development . So let's examine our record.! The pain and varnish industry, as. you well know, started in America at the end of the seventeenth century, about the year 1692, and after 237 years of pioneer ing, organization, and developing, reached, overhead business that we have to in 1928, Its peak volume of 6261,000,000 have. Our steak is our specialty bus!-'; of trade sales merchandise. ' ness, on which we are entitled to, and should got margins, and the spinach, that Is the specifications stuff, the minimum price, and all of the chisel ing. Now, just answer this question for me, and we will close the meeting: A real volume of business, an' accom plishment of which to be proud, an ambi tion fulfilled--until we say, but what about other men, other companies, and other Industries?" That's the rub I The radio industry, for Instance, started ---Do we want to eat spinach? in- a limited way Just before the World (Cries of-"No.") Chairman Kennedy:--The meeting; is War, and In a commercial way about 1919.- Within ten years, or by 1929, It had'reached a peak volume of $592,000, adjourned. 000,. Shortcomings in Selling (2) Poor territory work, as Is best in dicated by the fact that our sales organi zations spend a very large proportion- of their time In account warfare and agency exchange, and but a limited and in most cases far too small a part of their time In creating business by using sound methods and personal effort to stimulate the final lines of distribution which lead from dealer to consumer. This may sound quixotic. Impractical, and visionary, but remember, gentlemen, that the maximum distribution of any product depends upon, the number, the soundness, the energy, and the ability of the distribution outlets, and the resulting consumer contacts made. That existing jobbers, dealers, and warehouses do not represent or make up this Industry's real market. That consumers and more outlets estab lished for the purpose of contacting and selling more consumers, alone do. (3) Poor sales direction, as is easily shown by the fact that but few dealers do little more than satisfy, or attempt to satisfy, the household consumer's de mand for paint, which represents but 24 percent of the total market. . The balance of 76 percent consisting of materials used by the painting craft and maintenance consumers, is too frequently overlooked' or unsought by concerns in a logical position to get the business, and in so doing,-, to render a real service, as a result of; the Inventory carried, leads fur- . nished, advice given, and help of every constructive kind offered. (4) Poor industry co-operation, as is best Illustrated by the chaotic, unsound, unjustifiable, unstable, and demoralizing price pattern which exists In this In dustry, turning many salesmen and sates organizations into horsetraders, destroy ing the profit, and in some cases the very existence of dealers, jobbers, and manu facturers. There is something pretty wrong : -- would like to borrow fro.yn what Mr. (The sessfon was adjourned at 1:00 The electrical and gaa refrigerator in (a) About any condition which con Cornish has said, two thoughts and . p.m.) . . - dustry, started In 1914 and within seven tributes to or makes for dealer mortality teen years, had reached a peak volume of of 10 percent to 16 percent per year, 6258,000,000. . (b) About any sales plan which makes Fourth Session--Thursday Afternoon The oil burner industry, which is only it necessary to completely renew the In active where we have cold weather,- dustry's existing distribution chain every started domestically In 1919 when Nokol seven to ten years In order to even hold Trade Sales Conference Introduced a domestic unit and by 1929, or within ten years, had reached a peak volume of $131,000,000. its own, (c) About any sales approach which turns merchandising establishments into [The fourth session, the trade sales conference was convened at 2;SO p.m. November 1, E. D. Peck, chairman of the national trade sales; committee, presiding.] ' Chairman Peck:--*It Is rare indeed that the time, the need, and' the man meet, but they certainly did when Ernest T. Trigg became president of ;the National Paint, Varnish and Lacqueij Association, Introduction by Mr. Trigg President Trigg:--Tour chairman's re marks embarrass me. I am reminded of a story which I think I; have told to some of you, but I am sure that some have Just another very fine and wonder fully constructive session, We are deal ing with new problems. We are going to consider this afternoon and put into effect actively, we hope and believe, and we feel sure, with everybody In this in dustry the closest .kind of co-operation with what I believe is the greatest thing the government has so far done In all of its many attempts to bring about recovery and restore business activity. I refer to the housing act, and we are going to put that before you. t Mr. Feck has been working on this, and I couldn't tell you how much time The mechanically rolled cigaret indus try started In 1972 and by 1930 had reached a peak of $749,000,000. The cosmetic and soap industry started, X guess, with Cleopatra, and by the year 1929 had reached & peak volume of ap proximately $1,000,000,000. Talk about the success of clean-up and paint-up and save-the-surface! Why, gen tlemen, what do you mean? And so It goes, through Industry after industry of every type and charactersmall purchase and large purchase; con venience and personal merchandise; serv ice ,:and construction produets.' And, yet, who In this audience Is pre pared to say that any Industry is as de serving of support or Is as worthy of vol hard and excessively price-conscious buyers, instead of active. Interested, and satisfied sales partners, who are contented with their gross, . and who -realize that real profit Is made on sates and not on purchases. . (6) Poor financing strategy, which has made it-necessary up to the moment for the consumer to pay $100, $200, or $300 on the line for decorating and paint jobs, as compared with the consumer's oppor tunity to buy and acquire other things needed, or at least equally desired, at $10 to $20 per month. "What a chance--and especially so with funds l.ow l Industry's Opportunities of the rest of you have not heard it, and therefore, I will take the liberty of repeating it. ;. One time, a year or two ago, l was up In Minnesota with a friend !of mine, and we were driving over some Of those coun try roads In that section, which probably many of you are familiar !wlth. In my ' friend's car, and as we made a turn In the. road we suddenly caught up with a couple of small boys leading a calf with a rope around its neck. The calf didn't lead very well, and It objected to being led and It just planted Itself obstinately Just where It was, and so my friend crept quietly behind' with the car. and after getting behind It he gave a couple of strong toots with hiB horn, and the calf launched ahead, and rushed on a bridge, jumped over the railing, and fell into the river below and wad drowned. And so of course it was a! great catas trophe. The boys felt very, much upset ume as Is the paint and varnish Indus try? Tour industry, gentlemen, and mine I ... But facts are facts. Playing Second Fiddle The net Is:--We are playing second fid dle to many Industries, far less deserv ing Industries manufacturing products which merely gratify some temporary or short-lived desire, are Immediately de stroyed or rapidly become obsolete, cost money to operate and do not in many or most cases add one single solitary thing to the protection' of that great institution --the American home, This does not mean that we condemn or belittle any or all Industries but ours, but it does mean at the expense of repe tition that many industries far less de serving than ours are getting a very much larger share of the consumer's dol lar than their service or product merits; And, yeh gentlemen, despite these weak nesses, it Is a fact that we represent one of the most- helpful and constructive in dustries this world has ever known. An industry that can and will do Its full part If we do ours. This means:-- 1. Better and closer co-operation be tween manufacturers, as well as between manufacturers and distribution outlets. 2. Sounder and more intelligent selling. 8. Cleaner-out distribution lines. 4. Adequate compensation for services rendered. 5. A reasonable, fair, and strictly main tained price pattern. 6. A competitive and deferred consumer payment plan. 7. An additional number of merchandis ing outlets. 8. More efficient distribution. 9. More creative ability applied to our distribution. and wondered what their father was going, that too frequently paint money Is spent We cannot lull ourselves to sleep with to say and what punishment he would for desirable but unnecessary things, the condition of consumer acceptance for mete out to them. They didn't criticize while the home crumbles and our volume our products under favorable conditions. my friend, but finally one of the boys falls to grow. We can no longer be satisfied with merely said, "Mister, X don't want ito say any Why? Undoubtedly for many reasons supplying materials which people of their thing, but don't you think that that was which all of us can think of--but certain own volition make up their minds to buy. an awful loud toot for such a little calf." ly out of the mass we stand convicted of We must stimulate new wants, new de 1 am glad again to welcome this group, X have been doing the welcoming all week, and It la especially nice to see the ladles here, lending their encouragement and inspiration by being here Interested/to t we are doing, because 'after all th ladles mean an awful lot to tnen In busi ness in the way of Inspiration and en E. D. Peck couragement and we are glad to have you all here. [. Chairman on Trade Sales "We have had some fine meetings, and X wish that every one- of you,' and I know . they have put on It. They have abandoned that many of you were here this morn their own business practically, In order ing, but I wish everybody In the paint to be able to bring here to you, to the industry might have been present-at the ' members of this industry-, and through you perfectly magnificent session that we had down to the rank and file, the jobbers, this morning of the industrial-sales group, the dealers, householders, and home to listen to the commonsensej talks made owners of this country, the opportunity by members of the Industry Ion technical which Is now before us, if we only have . subjects--synthetic resin, the ico-operatlon the courage and energy to take hold of of the production men in the Industry, this new piece of machinery to just In with our broader problems, 'and I want' crease our business. . to compliment Mr. Kennedy) the chair After all, X think the paint Industry man, on the wonderful monger In which is the primary beneficiary of the housing he presided and I want tp especially act as set up by the government, and as refer to the entirely spontaneous and most being conducted by the housing admin constructive conclusion of the meeting, istration, when Colonel Callahan In that perfectly delightful manner of his ajrose In. his place, and said, "Mr, Chairman, Mr, Cornish, dean of our Industry Is here with us today, and I think it would be nice If yon called on him," [ . . . -And so,-ladles and gentlemen, with Mr. Peck's permission I will welcome you here this afternoon, and I express the appre ciation of the. officers and the executive committee of the association for your at tendance at the convention apd for the Inspiration From Mr, Cornish Interest that you are taking, and 1 just So the chairman called on Mr, Cornish, and Mr. Cornish talked to iis probably ten minutes in a way more than anything that that ] Inspired us we could possibly have hoped for, and X am sure nobody hope and feel sure every one of us are going to get the greatest amount of good out of the work that Mr, Peek and his associates have been doing on the trade sales end of our huslnes. 1 dreamed of anything of that kind, and when Mr, Cornish told this meeting here this morning, that he. a man with the Chairman's Address experience that he has. and that looking to the future, with the Judgment that It Is a real pleasure to be with you and we all* respect, could see nothing but pros- a particular privilege to preside at a lerity ahead for American industry, well, ' meeting called for the purpose of helping if course, we just all went; wild With ' "a great Industry move forward," :hat statement from .him. . . - And especially so when you realize:-- It was encouraging and Inspirational, That our Industry is the guardian and uid 1 wish that we might all have protector of the soundest asset the aver :eard It, 1 age American family possesses. and condemned by five things-- sires, and Justify our existence by creat Poor salesmanship, comparatively speaking, both written and spoken, as is best evidenced by the consumer's prefer ence for other products in place For example, a recent survey of ours. covering ' approximately 230,009 families, showed that during the past three years only 28.6 percent had painted; whereas 68.04.per cent bad automobiles; 49.61 percent, ing. Our growth and success, gentlemen, as a nation and as an industry, in the final analysis, depend not upon the producers of raw materials, such as the farmer, the miner, or the woodsman, nor yet upon any body politic or governmental authorlty. They all help, of course, but our Immediate and ultimate success undoubt vacuum cleaners; 38.69 percent, washing edly'depends upon you and every other machines; 34.26 percent, pianos. sales and sales promotion agency creating a definite demand for more merchandise Pitiful, you say, but true, and largely and better merchandise, as. If attention due not only to the inefficiency of our is secured In-worthwhile, ana constructive Initial selling in transferring the owner products, attention developed into interest, ship of the merchandise from one distri and interest expanded Into desire for pos bution link to another, but also to the ter session and ownership' sufficiently strong rible weakness and loss In potential and to make men work harder, and more proper volume which occurs when the last .efficiently In handling their own affairs distribution station has been reaohed, and for the purpose of acquiring funds for consumer selling begins. ' the purchase of other , products, and, of This, gentlemen, is no indictment of the course, ours, factories can be run, men sales people located in the various mer employed, transportation facilities used, chandising establishments of America, as stores lease, and cur nation made con the basic and original weakness Is ours, tented and prosperous. and not theirs. . Gentlemen, our success is In the wood. We have talked formulation until we have become black and blue in the face. We have discussed raw material tests, manufacturing technicalities, and expert personnel until we have, by our own sales effort, convinced a large proportion of our We did not enter this Industry to fall, nor to be satisfied with a condition or mediocrity. We entered this Industry, my friends, to win. ultimate sales force of the fact that this Chairman Feck:--During the last must be the major consumer appeal and the line of thought to be used, If one as pires to paint and varnish sales suc cess. And, yet, during this , same period of two years the government through the present administration and Its various agencies has done much in numerous ways to prevent suffering and to assist time all of us knew, or should have known, In the rehabilitation of our nation, but that when people buy paint they buy of all programs devised, and efforts paint for.results; that they are not Inter ested In a can nor a top nor a label nor a color card, nor in some confused Idea of. plgment-vehfcle ratios, but In a beautiful satisfactory finish, and how to get it, on made, the national' housing act stands far In the lead. ' Xt Is therefore with great pleasure that I present the Honorable Albert H. the home, barn, wall, table, or chair, Deane, Assistant Administrator 'of the which will add beauty, give protection, Federal Housing Administration. Mr. contribute to sanitation, and conserve the investment. And, finally, that these facts can only be demonstrated and efficiently used by showing samples which reflect actual con Deane's knowledge, understanding, and thorough appreciation of the ' oppor tunities afforded and opened up under this act as a result of his many years' Now this afternoon wo are going to That our products not only protect but ditions. - experience will, I know, prove to be of OIL, PAINT AND DRUG REPORTER November 14% I&34 45 unusual and wonderful benefit to this fnrfnatrv Mr nw industry., mr. ue ne. 1V l st . * H AllClTiff' Apr linnnrninihPQ XlUIUmlg Hl/l vj/JlUl liuuuva , ._ . {Everybody arose and applauded.) Hon. Albert Xi. Deane --It is with great pleasure for me to greet the members or that we know from actual surveys are In need of repair and modernization, This is entirely aside from the business structures and other buildings which are In good condition. IE one hundred dollars on the average was spent it would mean one billion six hundred million dollars of new business and money cir- culatlng in the channels of trade. j don't have to ask you men to visualize cities of the country in the past twelve months before the Initiation of this ao.t, We tried to eliminate all of the instru- mentalities they had used, and the practfces they had followed, that had proved not to be successful and to retain those that had proved worthy and successful. In that connection we had the benefit through, the counsel of Mr, Emerson, of the experience of your clean up, paint up angles of the program, and when I say rhat, I mean; thoroughly familiar. It is surprising that in a lot of meet ings that I hive, attended, men have said tnat they were familiar with what we were driving) at and how the program would work, [and the different elements, but when we; got down to the cases, we found that there really wasn't a sufficient knowledge to! do a good sales job. this great Industry. Even before the actual passage of the national housing act, we had the benefit of the wise counsel ox the leaders of your association, your presl- dent, Mr. Trigg, Mr. Emerson, executive the fact that one hundred dollars on the average could profitably be spent on each 0j these buildings for your products a|one. This is entirely aside from the new con- and fix up campaign and that was very valuable to us, indeed. As a result we published a booklet explaining to local ' elements In a community how they could organize a successful campaign. continued SS SE tionship, and I would like to express today. the appreciation of our administration & ^--rtelnly early in the year This market for repair and modemizatlon alone Is larger in terms of materials every State some five hundred ^amn&lans Actually, after ten weeks^of this Program* Dealers Nteed Instruction Next, you should instruct your dealers, the retailers, If you will pardon me, from our investigation, I think that is the weak est line in the whole effort. It is neces sary for you, manufacturers to make a real concentrated effort to get th<,e retaflers first of all to understand what It is all about,' and bow they can benent by It and more [important to have them do for the work they have given . --------- It was perhaps natural that they were early to sense the importance of this act to the country as a whole and to your industry in particular. One cannot think of better housing without thinking of paint and paint products. and labor than existed in the devastated regions of Prance and Belgium at the close of the World War. Our program of the Federal Housing Administration Is now concentrating on the repair and modernization'market. In a TOattv of houra we expect to an- thirty-one hundred cWes haTM lte*ted such campaigns. They are in different stages but many of them are well along the road to real success. ^ rvnt.ir.o- tM* +,,*, ___________.. ., nWd^anks 5nt?y J&v?ac^tedo?r SSurStiS con It is hard to imagine a repair or mod- ernlzatlon'job, let alone new construction, where much or little of your products are not used. .. You 'men sense so clearly'till that Is Invelved In the term, "better housing'*, there is perhaps little use for me to give you facts and figures about the great potenttals that exist In the modernization of our existing structures' and new con- structlon that Ilea ahead. You know that if this work can be tin- dertaken, and the program that we have launched can be a success, that It will Put millons of skilled workers back on the payrolls. ' You know that it will speed up Indus- trial activity and make profitable oper- atlons again a thing of the moment, You know that it will reduce government spending for relief. You know that it will enable ua, If the program is successful, to approach the balancing of the budget and, to bring an enormous Increase in the output of all in- dustrial products including our own. We recently received a letter from a banker In one of the medium sized cities of this country, that so clearly states what nounce the rules and regulations under which mortgages will be insured on new construction and existing property that we believe will open up the field of new build- tract, and some nine thousand seattfirpd throughout the country in practically every city of any size and In everv state of the Union are prepared to make these x But today, I want you to concentrate on what I say to you on the repair and modernization program. This program has two parte. First, there Is the modernization credit plan. By Insuring the institutions, the banks and 2th^r Institutions In a position to loan ag^togt losses taken In connection with loans that they make for the purpose of repair and modernization, there &&& been made available throughout the country to the property owners and those loans. ,, . lt ^ Informing the Home-Owners We have prepared and distributed thlr- teen million copies of a booklet for the property owner, explaining to many how they can take full advantage of this cam- paigft. We have contacted manufacturers not only those manufacturing materials directly connected with the huiming indus- try, but manufacturers of everv tvSe ef product In the country, and I have Minted out to them the manner in which S! of good character and reputation money in sums from one hundred to two thousand dollars which can be repaid In from one to three years and In some cases five could tie into this complete TM*rkm to their own profit and benefit ana to the benefit of the program Itself Some fortvfive manufacturers are definitelyconcretL years at a finance charge lower than has ly co-operating in the measures timt we e'ver been available on this type of financ- have suggested that they take ut> mg before. The newurm.YvoTtr tha *** ul' The charge is based on a maximum, In- into the cSnpalmt'and as T am' ,, SjS eluding interest, and all fees of five dol- ' are'all awe tSe haB hJi, lars on one hundred dollars on a one-year of publicity Colne* 6out installment loan, with larger amounts and andothermedia th Uffh 4116 preBS longer time in the same proportion, , . , asss,TM0too SSSliSaSEfaSd'rCS ]oThc_p^kleIlt 0f this hank wrote as tel- pt beltevt Itte'eS'y. 2 "caeh good thing because it is putting men back to work. First, It provides immediate employment ci^ institution dto\jrfderM^nd^ the flnan` claJ ln3tItutlon to understan- Change in Pamt Guarantee of the Instruments.to .make.the campaign a success, and It Is the real effort that is i?l?^pr^r5? by those directly something ab6ut it This is very important, indeed, and par ticularly on the financing end which is a sales tool in 'connection with the results that will he obtained. ' Next, you din go ahead with your clean up, paint up and fix up campaigns. Don't assume that because this Better Housing Program is under way that there is any reason to drop the splendid work that your organization has carried on in the past in that connection. I would say that now is the time to re double efforts! on those campaigns. They will not only | get additional business for you, but wifi; be very helpful in giving impetus to. the balance of the campaign throughout the country. Next, you should try to educate the banks in those communities where they are hesitant to go ahead with this type of lending, ; , I would like to say this on the behalf of the bonks.! Generally speaking, I think that their cooperation has been splendid, beyond our expectations. Throughout the country there has been a very earnest and sincere desire on the part o the banks to tie ilnto this' movement and be helpful, but we are asking them to loan money on a different type of credit than most banks axe used to extending credit on, and it is hew, and in some cases they are hesitant JtQ go ahead, They feel a little fearful' bf the results, and only by getting them; activated to make some loans, and to get started on the thing, will that feeling disappear. It is very im portant' where you find cases, or the cases are reported to you where the banks are hesitant, that! you, having informed your self, tell the banks that this is a real con tribution to business, and to you, person ally, in your \ company, and get them to go ahead. l , . . Then, of course, everything in the na ture of special advertising and soles pro motional work, window displays, radio programs and! that type of thing will be "mnHu?^TMS!TMr%urnT"Tnd $S? ^"Second the payrolls thus created lmmediately Vppea? in the retail trade, ereatlna sales In retail stores which furnish employment for more clerks and make ?a?ms ?Si5SUhS5fithia!'Ml aSd tnteer o^'thatob whioK/rfcommeISS" tha! th! PI'0i)Brty owner secured from the thrrproyislons 8of" the11 DamtWieod|0mpe? Laus you a?? familiar w?th it hut i would mS toarJad te vmf th ch'.STM "TMe0 we'iu^orteed'Ind whteg . neipful in the campaign. a Vf'bS n'SSSS S Work with! tne local campaign com mittee. There are thirty-one hundred of your products,"and ?"would* like^te cities that have started these campaigns. They are all} be conducted through the fTMt`the '? a IPore specific way voluntary support of the leaders of tne eaoh one you community, and it is necessary that every IW0rttIn' anfl ln your make ""'a sS?cesi " Ind,ylduaI one interested-In the program should tie into those campaigns and make them a upon thfraSads ^d ^cSs tef more LhiSl `ySTTrt SSSd 'hB Wndltlons wlth * fTM'1 .mean a the eovern- success. 1 transportation. This new demand creates W,,r1 you are faTM* not, * success primarily for the. Start at' Home . new factory payrolls and farm income which . immediately appear as purchasing power In the retail stores, and the cycle . beglna again.- i ds, *?e (here f1,eatly yer- S,?S fle,V y ^h"*"aad women ex- chamEe the services that they are able to .^^ttsr?S!iir",rsaiS . The guarantee that we are recommend- ing that the property owner secure now reads as follows:-- nrprt . ` ` " Property Holder..................... "The undersigned hereby certifies that the work he contracted to perform for you iMatadat 5 . *iT^* b i a SUcoefl3 for yourselves, x?r ..wo:xkmen re-engaged, and all of it,6 7^* Profit by it. .. First of all, you must learn all about lfte?at`uTM wl' hive Yottijf /know^t Is burdensome, but I think it clLrlv uro- senta what we are trylna to do fa a ISai tTma^ teeCworldy Thh\shpTMce"sahasbeen T^!a^ afl7temid in3 S]ocked V/^ ara now encased in liberating It' from Ufis TamenteWe5 rcatralnL ' "Idleness of men^and maohlnftq is not slmolv fife reauk 5f Se denrasaSM Uaim oettln?nSSte work Jres.,,fp?v!,.ni^ettmgr men back to worlt is our whole Job. ` AddVesa......................city....................State''' for a total aum of ?.............................. has been completed in a Workmanlike manner, us- lng the materials which you have apProved or specified. The undersigned fur- ther guarantees said work against defects in workmanship for one year. . RimuA Signed..............contract^-'............... Niveeccessssixtyy fToorr Wwoorrkk . To Judge what this program may [fce able to do, I would like to have you visualize what would happen if only one hundred dollars was spent on each of the sixteen million homes in this country, (If t.h. e bv orrower does the work himself, no guarantee Is necessary.) *n launching the effort to make this program a success we went over and : studied, the campaign for modernization that' had been run in some eighty-four bme familiar with tte manner te wWch yo lit into the program. Farticu- larly, you should become familiar with `he modernisation credit plan so that yo}* understand It thoroughly, , Jfou- should approach this program, I believe, not from the standpoint of paint alone, but from the standpoint of better anS everything that.is Involved oinnlIyt,dibreeccatubsuet ItthsebIenndeirfeitcst tboenyeofuitsawreillnboet very very Important. . After you have become thoroughly familiar with it yourself, the next step Is to have your salesmen in your own organization thoroughly familiar with all Then you ! should make information about this plan; this program, available to your own employees, in your factories, and ln your offices. Many of them are home-owners*, they are on your payroll; they are getting recognition; they are the ideal type that we feel should go ahead with the repair and modernization of their homes at the present time. You can make It easy for them to get the information, and one suggestion that has worked out very successfully, that the manufacturer, i or some one In the office, appoint some One individual and instruct or advise the employees to turn to that individual for full Information about the program, and. how they can tie in and profit by It, Then you can use the sound pictures that the Federal Housing Administration has developed,; that explain various phases of the program. These are available upon request, with a very small fee for Its use, through the Western Union offices in al most every large city in the country and many smalleri cities. . Carborundum Company At the 1934 Paint Industries Show Johns-Manville Corporation At the 1934 Paint Industries Show Anderson-Prichard ! Oil Corporation At the 1934 Paint Industries Show 46 November 14, 1934 OIL, PAINT AND DRUG REPORTER Wfi have found that they are very h u c - ceseful In telling the story to groups of ''salesmen, to groups of employees, and to the citizenry In the various communities-- the property owners and! Whatnot- Then you can talk toj other manufac- , turers and, your friends Keep talking "The better housing' program." we want to get the country conscious of it. And the more It is discussed; the more it Is explained, the further it will go. Take an active part in- your local cam paign, in your community. It is said that "Every Institution is the shadow of a man". By- your leadership in your own community, in tying into this program you can inspire hundreds of others to do their part in it. That is very Important, Now if you will do all of these things, and every other person in the United States who can benefit, will do likewise, can there be any' doubt of the ultimate success of this program that has been launched? There is' a tide in the affairs of men which, taken at the flood, leads to for tune. Who knows but itnat this better bousing program will be the tide that will turn back the dark years of adversity. I believe it was Disraeli -who said "There Is nothing in the world so powerful as an Idea whose hour hasj struck." May I ask that you take mat thought as your guide. It will return thousands of men to self-respecting Jobs. It will hurry the end of government spending, and curb the high tide of: mounting taxes. It will bring you success and profits. I recommend this program to you because it is sound business. Thank you. Chairman Peck;--Every place you go, and every one with whom you contact, who has had an opportunity of visiting Washington and the head quarters of the Federal Housing Ad ministration, conies -back with a story that Mr. Deane and his associates are working day and night. I have been told, by one individual, repeatedly, that you can expect to have an appoint ment made with Mr. Deane at any time from nine.in the morning to probably three the following morning, and the only reason I am mentioning that is because of the fact that if we, as mem bers of this industry and as members of the complete building industry, will do 10 percent as much in the . way of spending time in fostering this, talk ing it, building it, implanting this Idea in other people, this Is going to be the thing that will put this Industry and all Industries back on their feet. We deeply appreciate, Mr. Deane, your comments today, and your lead ership in this entire matter. The next feature on our program is a play called "Glass Houses." For a play which interprets and dramatizes certain activities of the industry, this name may. sound unusual, but when we started to look around our indus try and among our friends for dramatic talent, we found a very real supply of unpublicized and latent talent, who could and would give us the answer, and taking our cue from that, we au- tomatlcally decided that that same thing might be true of our industry's great problem--Increased sales. And we consequently offer "Glass Houses" to you, on that basis. So if you will be kind enough to turn your chairs, so that you can face the stage, we will present the play. "Glass Houses" (The play "Glass Houses" was writ ten by Ivor Kenway, advertising man ager for the Devoe & Baynolds Com pany. It was acted by Miss Anabelle Zeller, of the Certain-teed Products Company; Mrs. T. Brooks Cross; T. Brooks Cross, of the Devoe & Ray- nolds Company; Deane Coulton, of Valentine & Co.; Daniel Jaeger, of the U. S. Color Company; and Kingsley Kunhardt, of the Guaranty Trust Com pany. The performance was enthusi astically received, and there was abun dant evidence that the point of the commentary on' the paint industry was not lost on the audience.) . Chairman Peck;---All right, will you please come to. order? President' Trigg:--I think, that you would he interested In having the cast of the play introduced to you*. . (Mr. Trigg introduced the cast. of the play.) ' President Trigg:--We are indebted to',the cast for the wonderful presen tation that they have made, and we all thank, you very much for the line play and what you have done -for us. Chairman Peck:--Before proceeding with the next part of our program, I .would also, in behalf pf our national trade sales committee, and our various dub committees, located throughout the United States, like to extend my appreciation, and our appreciation to the author, and director, and each 2 3 0 PARK AVENUE NEW YORK, N. Y. Plants: Terre Haute,-'Ind.j Westwego and Harvey, La.; Peoria, ill.; Agnew, Colif. BRANCH OFFICES' AND WAREHOUSES IN ALL PRINCIPAL CITIES : Ivor Kenway . ! . Author of 'Glass Houses' member of the cast of "Glass Houses*" it is really a splendid support and rep resents quite an effort and great abil ity, and I think- that it made possible a very entertaining and amusing hour. But in addition to that, gentlemen, I Would also like to announce that this play Is to be reproduced in a written form, together with all of the sup porting business, and details,- and that, it. is going to.be available to every paint club in every city of the United States. That is with the Idea In mind that, during the Fall months, or winter months, and early Spring months, when we have the- grand and co-operative club meetings that w bold, in the various, sections of the United States, ' this play may be put on by the vari ous representatives of the industry, in each community of the United States, with the feeling, fn the first place, that we are dramatizing an idea that we believe In. We are making it very easy to un derstand. It is very simple, after all is said and done, to negotiate a deal of that kind If the dealers organize and the painters organize and the Industry is .organized to help, and I think that we are. So that, gentlemen, as part' of this meeting, I certainly hope you take home with you a picture of what can be done, and thank you, as executives of your various - companies, and as leaders of the paint industry in your respective communities, that you get back of this, and have It done. ' You have got to remember that a lot of our good friends, in Kansas City, or Dallas, or San Francisco, or Chicago, or Boston, or Atlanta, haven't had the same opportunity that we have ' had today, which means that, unless we take home the right kind of a mes sage, with the right kind of a spirit back of it, to see that it is put across, G this thing that may be the vehicle for 7 a tremendous Industry movement, will fail. Its success, gentlemen, really I think rests completely in your hands. Mr. Jarden:--I think that we have all been greatly entertained- by this play, "Glass Houses," and I would like to move an official vote of thanks to the cast for their work and for this entertainment. Chairman Peck;---We now come to another part of our program, decidedly different, which Involves a distribution method, and distribution outlets, and a part of our program which should be intensely interesting to every mem ber of'the trade sales convention. If this. Industry is going to progress, It can only do so as a result of main taining, protecting, and developing our present distribution outlets as well as, at the same time, or coincident with that,' securing additional number of logical distribution points. But remembering always, that we cannot go forward by falling back three- feet for every yard gained. We simply must, gentlemen of the trade sales organizations of this In dustry, stop our account mortality by finding some way to be far more con structive than we have been in the past. For these reasons, we have invited one of the outstanding leaders in each .distribution stratum and activity to come before this meeting without gloves/ if you please, for the purpose of'telling us why he considers his par ticular functions necessary and valu. able, and what we can and should do to be increasingly helpful. It gives me great pleasure, there fore, to introduce as our next speaker Mr. Lynch. Mr. Lynch Is past president of the ^--------- -- i i . w - v S ^ ii'n iiirm i '- m OIL, PAINT AND DRUG REPORTER November 14, 1934 47 National Wholesale Paint Association, a paint merchant of the sterling class, who will talk to us on the subject of the importance and the. functions, broadly speaking, of the wholesalers. Value of Wholesaler E. P. Lynch:--Changes in methods of distribution are gradual, and one who has spent many years in one branch of the system runs the risk of inadvertently, con fusing spurtr&cks with mainlines. It may be well to occasionally get the objective view of an observer whose judgment has not been influenced by such experience as ie gained In actual contact with the prob lems. To this end I have asked a young student of marketing for a picture of the background and evolution of the Whole saler as it Is taught him in our higher educational Institutions today. His state- ' ment in which he advises that he more or less quotes Prof. Hugh B. Killough, of Brown University, is as follows: prevailed, the wholesaler select"'1 - chandlse the buyers must perforce sell, and the consumers use. He also financed the operations of both producers and dealers. We now have an economy of abundance In the field of production in which the function of credit Is taken over by the banks; and the producers through modern meane of communication, invention and trade marks have quite definitely prescribed the function of se lection. This transition has limited the field of activities of the individual wholesaler, His erstwhile control over source of supply and his "take it or go without1 preroga tive so long maintained In meeting de mand, has succumbed to the powers of advertising, accumulated capital, and quick transportation. However, there is need for an agency which will buy mer chandise In larger qua * <. j - mically sound for a retailer to buy and "In.the seventeenth and eighteenth cen turies, the commerce of this country was to a-very large extent waterborne. This continent' was doing its best to live up to its ' then current reputation.' of being a `howling wilderness.' . Therefore, it was much. easier and more economical . to ship goods by water than by land. The seacoast towns with good harbors rapidly became Important mercantile centers. The. important merchants of these towns were usually connected with the. shipping in dustry. As' the first lush profits of ship ping became less exciting, these men who had made their wealth out of rum, mo lasses, tea or the building, of . boats, began to enter another field. Thfe towns were large and still growing at this time, and they were good markets for the imports of the so-called "merchant princes.' "Quite naturally the imports were stored and sold' out to small dealers in the towns and surrounding country, the merchant not only performing the storing function, but also.being the source of credit for his cus- - tomers. An economy of scarcity prevailed in those days; the vast wealth of the in terior of this continent was hardly touched. As a result it was harder to get commodities than to Bell them, and the . merchants soon found themselves lending credit to small producers, whose output was needed by the tradesman. These pro ducers usually fabricated their commodi ties by hand tn small establishments.. "When the Iron and steel industry be gan to develop, and the railroads began E. P. Lynch to compete with the canals, the machine method of production began to gain head way, causing a tremendous spurt in the production of goods. The result was that the efficient producer concentrated on cheaper unit costs through the use of machinery and mass production. The market was there--all one had to do was to cut production costs to tap the market favorably. It was discovered that the concentration of production plants into larger and larger units was the most ef ficient method of cutting costs. These large , plants were usually set up as near the source of supply as possible, and great profits were made by these organizations, "As the frontiers of this nation pushed rapidly westward, new sources of raw ma terials were opened; rich farming lands were developed; and the population in sell in certain communities in smaller quantities than is economically sound for a manufacturer to sell. ' We are dealing In what 1b called con venience merchandise or commodity. The per capita consumption is small, two or three dollars per year, not of sufficient moment to charge the mind of the house hold consumer with necessity for shopping for price; therefore, it is brought In most convenient places, necessitating- wide dis tribution and prompt warehousing ser vice. The need for this service is demon strated by the 1930 census which indi cated that a large percentage of the tnerthandlse we sell in this country was nandled by wholesalers. Need f.or Wholesaler creased rapidly. Large cities sprang up in the Mldle West, and a large network of railroads became the nerve center of the largest active free trade area In the world. Along with increasing transporta tion facilities, there sprang up a bank ing system, first purely local; then State, then national In Its scope. "As the industrial machine of the nation grew older, it found It somewhat difficult to dispose of its products. Mass produc tion needed mass stimulation of mass markets. Advertising pointed the wayout of this difficulty to a large extent, but not much attention was paid to a scien tific study of how to market goods more economically until the beginning of this century. Since then manufacturers in many lines have begun to decentralize their plants, placing them nearer to mar kets and thus decreasing shipping costs. To those interested, to carefully Btudy the statistics as to wholesale distribution in the paint industry, we would recom mend Professor Beckman's analysis as published by the Department of Commerce. It will encourage the manufacturer who more or less controls his own distribution, *nd It will hearten the wholesaler who for years has been told that his days are numbered.' It will probably convince the disinterested observer that the function of wholesaling will continue to be performed by a variety of organizations. The census figures as to the wholesale paint business show as follows: Of the paint sales reported by manufacturers In 1939 for the year 1929, eliminating the In dustrial sales sold direct by the manu facturer, we find the following percent age as to the remainder, what we call trade sales-- . Effect of Developments "These vast and rapid changes have had a very important effect on the posi To-- Pf""m Manufacturer's wholeeftle branches.,,, 23.9 'Retailers ........................................................... 31,4 Manufacturer's retail stores..'................ 3.2 tion of the wholesaler, weakening his Household consumers or home-owners,. 2.ti economic position in many lines. In the Wholesalers ................. ............ ............. . ,.. 38.7 first place, national advertising has es tablished direct communication between the dealer and the manufacturer. Second ly, the size and strength of manufacturing organizations has increased relatively, and in some cases, direct-to-dealer selling has been encouraged by horizontal com binations. Thirdly, the old, general store has been split into many specialized stores. Fourthly, the rapid growth of ' large urban centers .and. big city stores has increased' the average size of orders. Fifthly, competition has cut the manu facturer's profits and sharpened sales competition. This has forced many manu No doubt a considerable portion of merchandise shipped to manufacturer's branches are In turn sold to wholesalers. While the glamour of the former whole saling entrepreneur is dimmed as the field of his activities is restricted and his func tions performed by manufacturers brokers, bankers and chain stores, we find that in our industry he still comprises a very considerable group of those perform ing the mechanics of wholesale distribu tion, . and, surprising as It may seem, there are indications that the relative demand for his services Is Increasing. facturers to have more definite sates rep Five hundred sixty-five wholesalers re resentation than wholesalers' salesmen ported the year In which their business can give to one product. Sixthly, the was organized. From these figures we greatly Improved transportation and com find .the 46 percent of the wholesalers had munication facilities, the rapid appear been organized within the previous decade, ance of public merchandising warehouses, previous to 1929, and that the greatest Improved credit rating facilities, and a rate of growth had been within the last growing tendency for dealers to depend . five years prior to 1929, Manufacturers In normal times upon the local banks and who sold in whole or In part through sales less upon long open-book credits, have branches reported on this point Twenty- made it easier for direct selling to the nine percent had been formed within the larger dealer. previous ten years. So far as can be seen "All these functions used to .be per from census reports whatever change there formed by the old-time merchant whole may have .been In recent years has been a salers. Increased per capita production, trend toward a relatively larger increase a growing excess in manufacturing capac in wholesale merchants than in manu ity, more and more emphasis upon style, facturer's branch warehouses. ' the greatly increased number of compet Approximately 24 percent of the whole ing brands of goods designed for the same uses, and a shift of more and more sale merchants of the country do a busi ness of'less than 60,090 each In net sales, of the risk of storage functions back upon accounting for but 2.9 percent of the total the manufacturer, have caused him to business. Incidentally 35.6 percent of the measure his market more closely, and manufacturers* branch warehouses did a have aided in bringing about hand-to- business in 1929 of less than $69,000 each, mouth buying. More recently .the rapid accounting for but- 1.7 percent of their growth of chain stores has In Borne lines weakened to a great extent the position, total sales. The cost of doing business for the group doing this volume was 28,2 per of the wholesaler.'* This sketchy outline of what a young cent for the wholesaler and 33.2 percent for the. manufacturers. . student of marketing Is taught in our colleges today does not seem to paint the 1 Bales; to Large Users picture of the individual wholesaler as a The business of the paint wholesaler particularly enticing field of endeavor. Formerly when an economy of scarcity differs from that of other types of whole salers In that the sates to large users of paint as distinct from retailers of palm dividual practices conform to rules that Is a considerable factor In his business. . ' corrected abuses ( the ultimate failure of These large users, painting contractors, such atte,rapts has been the result of real estate operators or agents, factory greed of industry able to affect monopolis maintenance consumers, not Infrequently . tic conditions; on the one hand, and In buy paint In larger quantities than many creased opportunity for chlselers willing dealers, and because of the size of their 'o break laws to gain Illicit advantage orders enjoy practically wholesale prices.' on the other.: . This condition works to the disadvan tage of .the dealer, who unlike the large consumer, carries at all time a stock of paints. It happens that the wholesaler or manufacturers branch warehouse or di rect factory representative will sell a dealer in a certain community, and then go out in the same community and en deavor to sell the largest consumers of paint In that community. The argument of the wholesaler under, such conditions is that if he does not sell this trade some manufacturer or other wholesaler will, and the result Is that we often In this way The success of this attempt will de pend upon whether or not we can sym pathetically envision, and with fairness meet, the demands of the consumers of our merchandise on the one hand, and the reasonable welfare of all those who are engaged in supplying this demand on the other, ! To this end may we all contribute our best Intelligence and endeavors. I have spent forty years -in this Industry, and have great faith In the motives and in telligence of Its leaders. Chairman ; Feck:--That is a great hinder the growth of the retailer.or drive talk, Mr. Lynch. him to seek connections with some manu Our next Speaker, ladles and gentle facturer who, not being represented in the district, will extend Wholesale cost prices to the dealer. It may happen that a manufacturer has an established dealer in a certain men, will discuss "Developing Dealer Business frotn the Wholesaler's. Stand point.1' He | is past president of the National Wholesale Faint Association, community does not compete 'for any president of the Standard Glass & other, part of the local business, but finds Paint Company, Des Moines, Iowa, and that dealer's business restricted because of competition from other manufacturers or wholesalers, and he may be Inollned to put that dealer In a position to get the . merchandiser of unusual ability and national reputation. It Is simply great to have Ross J. business even though In order to do so he Clemens, of! Des Moines, Iowa, with in some way absorbs the cost usually inci us. J dent to Belling a retail store account. This condition may account for the growth in numbers of wholesale establishments. It must be acknowledged that the func Developing Dealer Business tion of wholesaling carries with it cer tain costs, whether performed by the in dependent wholesaler, the manufacturer's branch warehouse, or the warehouse at the factory .swhere it is performed. How ever efficient or inefficient the Independent wholesaler may be, we feel tltet'he prob ably knows the cost ' better i3$han some manufacturers. With the 'wholesaler every cost must, be charged to the func tion. This ris not necessarily the case with all manufacturers; some may and often must absorb part of the function cost through charges against some other bookkeeping account. It is Impossible to conceive of the present variety of trade sales discounts as being' an Intelligent or scientific approach to the. application of function, costs. ' . The census indicates that manufac turer's branch warehouses on the whole perform the function of wholesaling at a cost of something like 3 percent less than the typical cost of the wholesaler. Ad mitting that greater efficiency may pos sibly obtain in the manufacturer's ware house, we believe the fact remains that the wholesaler Is called upon for ser vice Involving greater detail, a wider variety of merchandise, smaller unit sales, heavier stocks, and possibly greater credit risks. It is quite likely that executive expenses In the wholesale establishments are . larger than in the corresponding' manufacturer's branch warehouse in which sales and . credit functions and matters of general policy are prescribed by executives in central offices and the expenses pro rated among a number of warehouses. - How, Not Who, Is Problem Ross J. Clemens:--For a Midwestern wholesaler td discuss the matter of de veloping dealer business through the wholesaler, before a group made up largely of manufacturers, might be ciaeslfled under several headings; It might be called presumptuous, and again it might be termed plain weak-mindedness. In approaching the subject, I couldn't help thinking of the case of the Bmall boy in school who, for some reason which his teachers could not fathom, was not making progress. Finally after a conference on the subject they decided he must be sub normal and arranged to have him ex amined by the school psychiatrist. The boy was Judged competent and sent back to his classes. Next day, one of his classmates, telling of the occasion said. '/Sammy was- examined for an idiot and didn't pass." ; Be that as it may. It is pleasing indeed to many of us engaged in the wholesale -branch of this industry to note that this association has become Interested in the problems and practices of the wholesaler. Many of us believe that the wholesaler is, and will continue to be, a very important factor in this Industry. . Of course, when I use the term, "whole saler," I have in mind the real whole saler who performs all of the functions necessary to the classification and not to the more or* leas glorified retailer that some factory i has designated as a whole saler because of his ability as a buyer, or because of his location which permits him to compete locally with some legiti mate wholesaler. Various manufacturers have said many times that wholesalers or jobbers do not Since either directly or through branch warehouses, manufacturers are perform ing the function of wholesaling to a somewhat greater extent than wholesale merchants, their interest must equal that of the wholesaler In doing the job In render good service to the factories be cause they do not carry on a systematic plan of developing dealers, or for that matter, do net. so conduct their business as to maitalh. dealer accounts after the factory has 'developed them. It is our telligently and with profit. There is no opinion that Imost of this criticism origi real point In discussing the question as nates with the appointment as whole to who is going to do the job. It Is go salers, of concerns that cannot possibly ing to be done by manufacturers directly quality for the title. It is our further or through branches, and by wholesalers. opinion that this type of glorified retailer, I am inclined to Believe that for some time we In the paint industry have been thinking too much about who Is to per form the function of wholesaling and too little about how it should be performed)-- too much about whose province it is and too little about the way it should be or semljobbeit as some choose to call him, is the source of the Industry's greatest sales problems. Certainly, the type Is the greatest menace to the legitimate whole saler in his efforts to successfully serve his factories as well as the merchants in his natural trade territory. done. In studying the various functions of Capital and effort gravitate toward that a real wholesaler In. this problem of de activity in an industry which tends to veloping dealer business, It will be very show the greatest profit. The reason apparent wby there Is a vast difference there are as many if not more manufac in the value to the industry of the so- turers than there are distributors in the called "wholesaler" and the real whole country Is because In that way has laid saler. We are and have been for some the greater advantage to capital and ef time In an era of careful cautious buying fort, enough greater to enable the manu facturer to assume a large portion of the on the part -of the dealer. This means small and frequent purchases by the field of distribution along with his pro dealer and he must have instant service ductive activities. This trend has driven the wholesaler to seek sources of supply from manufac turers who are not competing in distribu tion, and accounts for the considerable number of small specialty manufacturers. Many of these smaller manufacturers de veloped from wholesalers, who having a market sufficiently large to warrant the Installation of small manufacturing equip ment, and in turn, more or less success fully seeking outlets for their excess ca pacity, have gradually added to their equipment. This evolution is paralleled In the wholesale field by the retailer who, as stated before, is placed In a position to buy at wholesale prices by-manufacturers unable otherwise to get distribution in a given territory. 4 The situation, so far as manufacturing is concerned is aided by raw material If he meets the needB of his customers. In order to do his buying in small quantities economically,' he must be able to buy many Items from the same source of sup ply; otherwise, the cost of buying and minimum transportation costs consume his profits. ; This Is one of the very important rea sons for developing dealer business through the legitimate wholesaler who is in position to render service on many sundries andj allied items, which cannot be supplied by Individual factories and certainly not; by a semi-jobber. Just as an- example to prove the point, may I say that In serving the dealers in the more or -less limited territory that is covered by our company, we find It neees- saxy to buy from more than 300 separate and distinct sources of supply. Advantages for Dealer manufacturers seeking new markets and assisting the new manufacturer with formula and instructions as to how to fabricate his raw materials. Under normal conditions the efficient merchan diser does not find these methods or sys tems of growth a bar to reasonable sue* - cess. The difficulty Is that in times of poor business the system is accelerated and the stream of distribution becomes cluttered. .. So long as there is regular demand, normally growing with population, little will be required m the way of restrictive measures In trade. Upset .this condition It Is my contention that because of this service on the part of the wholesaler, the profit position of the dealer Is Improved. Therefore, the manufacturer should be definitely Interested in this type of dis tribution for . his products. I do not be lieve it is necessary to emphasize the fact that profits are Important for the dealer as welt as for the other branches of the industry, ana that without profit there will result serious dealer turnover which we all recognize as a source of lost profits tn both distributor and manufacturer. In other words, I believe it Is possible, except perhaps in territory immediatelv adja either through abnormally increased or decreased production or demand, throw ing either greatly out of balance and un restricted trade practices tend toward de cent to a factory, to build a more per manent. and; consequently a more con tinuously profitable dealer business, through competent wholesalers than can moralization; .. Qur Industry. Is now engaged in an ex be built direct from the factory. The wholesaler who qualifies for the periment which is designed, to correct title .today realizes that hie ability to some of the evils, incident to a greatly render the beat service available in hts unbalanced economy. History . records previous attempts to force men In Industry to make their in trade territory Is the one thing, and the only one, that will keep him In business. Just as surely as he lets his service slip 48 November 14, 1934 OIL, p a in t An d d r u g r e p o r t e r Taack to whore it is only! on a par with the other fellow, or with a factory at greater distance, then as surely Is he on the way out. By service I don't mean buying business with unusual and un ethical practices. I mean, for one thing, having tile merchandise that the dealerwants and getting It to the dealer right now when his orders come in. As an evidence of how important I be lieve that one thing to be, permit me to .say that it is a requirement of our com pany that our warehouse ship at least B2 percent of all orders on the day they are received. Any manager who cannot meet that requirement :by keeping a stock adequate to do It, !and still get a .satisfactory turnover, has mo place In our set-up, because we are sure if we let down even slightly, someone will call strikes on us so fast we will be out be fore we can get the bat off our shoulder. The first thing a wholesaler should do before he starts out to ; develop dealer business is to make sure that he is in a position to meet the rigid requirements of serving the dealers in a^ sufficient trade area to make his business profitable. The .requirements are many, and they must be met; otherwise the result will be an other failure. One of the' first and most important requirements is quality mer chandise. To attempt to build dealer business on anything but high quality merchandise is on. the face of It a waste oughly familiar with alt of the merchan dise they are to sell* but should be kept informed of latest developments by occa sional meetings with factory salesmen and officials. Keep in mind a mediocre salesman produces expense accounts and alibis--a good intelligent, well-trained salesman produces not only sales, but profits, and as you have only a limited territory In which to operate, you cannot afford to waste any of it on anything but producers of profit Care in Selecting Accounts Many wholesalers In their haste to make sales permit their salesmen to sell any one who calls himself a dealer and who will allow himself to be sold, Re member, that you are operating In a re stricted territory and that future business is a factor to be considered. Survey each community in your territory and pick the best possible place for your line. If, after reasonable effort, you cannot close that prospect, take up the effort with the next best and so on down, to the point of a reasonably satisfactory outlet. You cannot expect 100 percent connections at'all point, -but you should aim as high as possible and wait for later develop ments rather than put your .lines in with consumer, painter, and maintenance calls. - to the future of this industry and as such, Show them how to do It and give them a they must have fair and equitable treat' taste of the -benefits that accrue. Don't meat. let your salesmen feel that' they have Chairman Peck; It may be that a done their duty by doing this' once for prophet is generally without glory In each dealer. See to it that they make It a regular practice three, or four, or more, times a year. Your benefits will be as great as the dealers'. This sort of dealer help Is one of the reasons for the existence of the whole saler, The attitude of your salesmen toward your dealers, the help that they his ownt own, but that is certainly not true of our next speaker, Thomas A Flynn, of the Butler Flynn Company, Washington, Mr. Flynn is also past president of the National Wholesale Paint Associa tion, and is a business builder of great give the dealer and the extent to which talent, who has had an unusual degree they contribute to the enthusiasm and of success In the painter and In the interest of the dealer in the paint busi ness, is a large part of the answer to whether or not the wholesaler is an important part of this industry. The smartest job of selling I ever maintenance field. It therefore gives me great pleasure . to Introduce Mr. Flynn, who will now discuss, "Developing Painter and saw flone in a email town was by a hard Maintenance Business from the ware dealer In a town of less than 600. Wholesaler's Standpoint." All Winter he carried a small notebook Servicing Maintenance Workin his pocket and to every customer that came Into his store, he asked one ques tion, "Are you thinking of doing any painting In the Spring"?* . Just that, and nothing more, except that he made a-note of the reply. Early In the Spring, he started to call on the T. A. FlynnWhen. I was asked to appear before you gentlemen and present a paper setting forth the desirability to you of having wholesalers service main ones that didn't say "No." Net result tenance work rather than through direct was the sale of several hundred gallons selling, I realized that I needed not only of paint which he shipped In at one time my Individual experience, but the experi and piled up in front of hts store with a ence of those wholesalers whose business of time, and will simply result either in . big sign on it. Further result was several was nearly 100 percent of this character. ultimate failure, or the necessity of do additional sales and a net profit greater Consequently, I wrote to several such ing the Job all over agajn. Price mer than he made out of hardware sales for large paint wholesalers. In setting forth chandise will not endure'< longer than it the full year. these ideas I am not putting, forth my takes the public to find Out that quality The Idea, was furnished by a whole own personal opinion, but the collective is not present. It may take longer to saler's salesman and the same salesman opinion and experience of those men, to develop a satisfactory volume on higher went out with the merchant on his first gether with the viewpoint of the members cost quality merchandise, [ but once it is day of farm to farm calls. What -do you of the National Wholesale Faint Asso ^developed, the Job is done [for all time. It think? Could one of your salesmen go ciation. is always much easier to displace a price out and take that account away from In Bpeakfng of maintenance work In line than a quality line. j that wholesaler and his salesman? this paper, I refer to the repainting of. Second, a wholesaler must be sure that his stock is complete. It is not sufficient Satisfy the Dealer . office buildings, apartment houses, Insti tutions, hospitals, factories, and other to have Just the best sellers--he must have the occasional sellers and he must have a satisfactory stock j control system to make sure that his stock Is complete at all times and that pijoper quantities of fast sellers and alow sellers are car ried. Otherwise, he will 'not be able.to render the kind of service it takes to hold the dealer's business after! he gets it and' also he may find without proper stock control that he has accumulated a lot of shelf warmers that cut his[ turnover down to a point where profit is impossible. Many wholesalers and factories make the mistake of promising unethical and Impossible things to get a dealer- started. This can have but one ending. Far bet ter make your connections through hon est sales efforts and produce better re sults than you promise. . A dealer who turns his investment and makes money out of his paint depart ment Is generally satisfied and not much of a target for competition, . . . Show me a dealer, in our territory* with a competitive line, who has been prom buildings of this nature. In studying this subject, we should take Into consideration the method of purchasing used by the buyer and his re- Stock Must Be Movable ised, even guaranteed, a volume twice Right here, let me eayj that I think overstock Is Just as serious a menace to dealer business as is understock. Nothing builds dissatisfaction and. sales resis what he has been able to secure, or who has been promised a lot of sales help that he did not get, and I'll show you. a dam good prospect for one of our lines. tance faster than old stqck with soiled Make the dealer feel that-he is part of labels and settled pigments. - your organisation ana also, part of the Just to make the rest of my comments factory organization. Encourage him to more direct and perhaps imore personal, suggest changes for Improvement in the I ?inS to Pretend that you are all line, in the sales help, if he does some wholesalers and refer to i you and your outstanding thing, have the head of your business rather than some mythical whole saler, The fact of the matter is that even Ross J. Clemens company write him a letter and com mend him; also, ask his permission to though you are a manufacturer, you are pass it along to your other dealers. The either selling to wholesaler or perform ing the service of a wholesaler yourself, and so you must have some personal in terest in the problem. i what you know to be only temporary con nections that may do more harm than good, . As a wholesaler, your office and ware- * house organization must be equal to the task of handling and filling orders . Don't overlook the fact that there are a great many potential paint merchants not now engaged in the paint business. If a promptly, and by promptly, I mean the satisfactory dealer connection is not same day they are received. Be sure you available from existing dealers, your keep those departments in Space with your salesmen should try to develop one from sales. .Don't try to build r a new organi the outside. The sources from which this zation each rusn season. Is possible are too numerous to outline,, Be sure you are lined: up with the right manufacturers who produce the qual ity merchandise we have referred to and who will back up your sales and service efforts with the right kind of co-opera tion, not occasionally when they have an idea they want to try outf but month, in and month out, year in and year out, be cause this thing of building dealer busi ness is a long Job and it must be as but a salesman worthy of the job will find them. Extreme care should be taken to make certain that proper financial and sell ing ability exist The percent of casualties among paint dealers is all too high for the good of the industry and the fault lies largely with the distributor or factoryWe should charge ourselves -with the re sponsibility for Improving this con sumed that one is building for a long pe dition. riod, otherwise it is useless to start. We are all anxious to build our sales And then, with that type oi co-opera tion from your factories, he sure you give them the same type of co-operation you expect from them, because without com plete confidence between; factory and wholesaler, the work of developing dealer business will be useless aqd will be time wasted, i volume as rapidly as possible, but it Is my opinion that one of the worst mis takes Is to eel) the dealer more stock than he can turn over satisfactorily with reasonable effort. Certainly, I 'believe In sealing him enough to make him feel the necessity of exerting reasonable effort, and it Is with feeling that he means something to you will add to his permanence, and out of permanence comes profit. Building dealer connections is a sort of pyramiding proposition. Once you have a few money making dealers established, you can use them to help sell others and the beat proof of the .profit possibilities of any line is the definite evidence of dealers already making a profit and satis fied with the line and the source of supply. . I f-uhmlt that a wholesaler who builds his dealer business along the lines 1 have suggested, and who never lets up on his efforts to help his dealers improve their business and profit, has a place in this industry and that many manufacturers will always be interested In. securing his business and working with him. I con tend also that the manufacturer who Is represented by that type of wholesaler will enjoy a greater volume of dealer business in that territory than he could secure direct. In conclusion, will you permit me to urge this association to use Its best efforts to eliminate from .the Industry one of its most destructive practices? .' I refer to the thing that Is perhaps the most discouraging to a wholesaler in his efforts to maintain dealer business. If you represent more than one factory, out question, advisable to sell him a wellassorted stock. The less vacancies you Competition by* Manufacturers UP your ,rnil?d right [from the start th&t there will be no substituting on dealer accounts, and do not permit rep resentatives of one factory to call on, or mterCere, with the dealers of another. Failure to enforce these two things will lose dealer busfness faster than a good force of salesmen can bring it in, .and leave on ithe shelves for competitors-' labels, the more permanent Is your con nection. Most worthwhile merchants are today conscious of the effect of slow turn over, and the 1 wise manufacturer or wholesaler will not overlook Its impor tance. Incidentally, that Is the local A wholesaler will establish a dealer, nurse him along with all of the attentions that I have suggested, and probably many more, and- in the course of a.few years the dealer Is developed Into a real paint merchant doing 52,000, $5,000, $10,000, or more, in annual sales, depending on the will also probably cause changes in your wholesaler's greatest argument to both lines which will mean further loss of manufacturer and dealer, because if the size of his community. Along comes a factory salesman, makes dealer accounts. ; wholesaler carries the* kind of stock he Mister Dealer a Jobber, or a eemUobber. I have referred to natural trade .terri should, he can, without question, increase and promises him everything up .to a half fy, and before you go far from home the dealer's turnover and materially re Interest In the factory. "We have them after dealer business, you1 should deter- duce his investment. out in our State In towns of 2,000 to 5,000, mine by careful analysis Just what terri After you have a dealer signed up and Some of them started on original orders tory you can serve profitably. You' will your goods on his shelves, your real work of less than $600 and most of them have waste the money you spend on dealer pro starts. Uh'eas those goods move off the gone backward in sales in place of for motion outside of the area in which you dealer's shelves rapidly enough to give ward. can render at least equal service with any him a satisfactory turnover, you have I have no argument with.any factory's other source of supply. -j made no progress and no profit. . effort to take any account away. from True, you can get som4 business out- aide or that area and any business is tempting, but if you are smart, you will develop the territory that! can be main tained on a profitable basis and let the reet of it go. Your net profits will be far more satisfactory even With a smaller Through your salesmen, the factory salesmen, and your office, you must help the dealer to become a real p?int mer chant. Putting a stock on his shelves and hanging out a sign won't bring in the sales and that'B what both of you must have for profits, . anybody else, be It another factory or a wholesaler. The .part which X think Is basically wrong, and which X believe the industry should try to eliminate; is the unethical propositions that are offered to the dealer to get him to change lines. I know that your code is aimed at sev erp I of. these to*'!*?, *vr ^ of your volume of sales. I Teach the dealer to make the best pos chlselbrs are still making jobbers and Your position with your factories will be far better If you do ar good Job in a limited territory than it will if you do a sible use of ail faetorv sales helps and advertising matter. Teach him to do intelligent local advertising, to hold paint semijobbers out of dealers in relatively small- towns because they haven't learned to sell their products through any other mediocre job In territory spread all days, demonstration days. Sell him on methods. over the map, and your dealer or ganization will be far- j more depend able if it be made up Of dealers who can get at least equal sehvice from you aa from any other source,! and, after all, continuous net profits are; what you are after in all your effort to develop dealer business. j With quality merchandise In proper as sortment, a satisfactory office and Ware house organization, a plan; of co-operation with dependable factories, and a terri tory in which you are sure you can ren der proper service, your [ next require ment is salesmen. It takes high-grade intelligent men, well trained, to develop the kind of dealrr organizations that will remain profitable over a period of years. STour salesmen should not only be thor the Idea of keeping paint in the front of his store. Train the dealer and his clerks to talk your products inte'llgently. Con vince them that the average paint sale and the profit resulting Is as . a rule at least equal to most items they have for sale. Be sure you don't overlook the clerks---they are most important to your success--and be sure, also, that your . salesmen educate the dealer to solicit . business in his community. Complete hours Jobs are worth outside soliciting and .no dealer- can expect to make a huee success sitting behind the counter waiting for trade. . The best way for your salesmen to educate your dealers to do outside solicit ing Is for the salesman to get out with the dealer or his clerics and make a few So long as you permit these concerns to hold membership In your association, and treat them r -s equals, and pass off Thtly-their nefarious practices, Just so long will yours and the wholesaler's sell ing cost remain too high and yours and your wholesaler's dealer turnover be out of nroportlon. . "Whenever this industry is ready to face facte and let the service performed be the measure of the proposition made the buyer, It will find that its cost of do ing business will improve and it will be able to give the public more value for its money without sacrificing the profit of the industry. X all you to .qonp'd^r t.hl* seri ously, because I believe that both the dealer and the wholesaler are important T. A. Flynn qutrementa. Because of the very nature of. the work it is Impossible, in many in stances, to plan the work very much In advance. Individual apartments are reno vated and so are individual offices at the time one tenant moves out and another tenant moves in. In many institutions of this character only one -painter is em . ployed, and the kind of work that he does varies greatly during any given period. Sometimes he Is varnishing a floor, an other time painting the walls or the wood work, etc. It is in the minority of cases where the work Is done on a large scale at one time and carried through from cellar to roof. For this reason, the institutional buyer is averse to carrying a large stock of ,any particular items. He wants to buy in small quantities as hts needs re quire and of necessity these small quan tities are of a varied character. Because of the smallness of his orders and their wide variety, he naturally prefers to buy the major portion of his requirements from one house. - Since' the material is needed quickly and in small unite, It la necessary that his source of supply be In a convenient place and quickly accessible. Naturally this handicaps the manufacturer who is at tempting to sell this class of business direct from'his factory. He meets with obstacles in selling because the buyer does not want to purchase in large quantities and the distance from the factory to cus tomer prohibits the speed of service that Is required, even with modern transpor tation. Because of the size of these orders, the consumer requires more constant sales contact than he would if he would buy In larger quantities, We can therefore see from the nature of the purchase that your jobber located in a large city la more ideally situated to handle this kind of business than Is the manufacturer who Is at a distant point. A wholesaler who Is doing the right kind of merchandising has a complete stock of not only the primary Item^ of paints, oils, and varnish, but all ' of the sundries needed by this c'ass of "buyer. For we must remember that In order to hold this consumer trade we must not only carry 'paints and varnishes, but in many instances kindred -lines of Janitor supplies. , L,, It is thoroughly possible for the whole saler to deliver his order within one to two hours after the receipt of the order. This gives the maintenance buyer the exact service that he requires and de mands. He receives from the whole saler numerous sales contacts, a wide variety of stock located In a convenient place and quick delivery. Y! All of this work, of course, is not in- know, purely for the purpose- of being Idually bought by the institution or >perty owner, but in many cases Is died through a real estate management or by a painter who specializes in ,,,, class of work, ,, Real estate managers because of the helpful, and they want to be even more helpful. So with your' permission, as :T have said, we will throw this open to a floor session for a short period of time. jtura of their business are usually With three stipulations only, if you ictive in all civic organizations. Consetoently they prefer, to buy their re* jdlreittents from local organizations emloylng local capital, rather than to deal 1th someone who Is located at a far Istant,point. So that we find that civic ride also enters into the mind of the 1 estate buyer and again is a favor please; ' One speaker at a time, and on his feet, announcing his name. Three min utes only to any one subject, so that, as I say, if you have anything that you want to ask, any point that you wish further discussion on, we will be ite reason why this class of sales should exceedingly glad to develop it to its $ handled by the wholesaler. fullest extent in that period of time. Question of Credit Does anybody have any questions? .'When we speak of the painter who Please don't leave this meeting tonight . peclalizes in this work, we naturally and say to yourself an hour from now, link of credit. The other night I sat "I wish' I had asked a question." kiwn with a painter who is specializing ejfh this kind of work and he showed me kt during' the course of the month , he lk over 125 small jobs ranging in price from 59 to 575 from a single manageto Stent concern. It is just as hard for this ` Irpe of painter to anticipate his require- Have you anything that you want to ask any of these three gentlemen about their angle in our present dis tribution scheme? All right, gentlemen, if that is your pleasure, we wiU call this meeting aents on this class of work as It is for closed within a very few minutes. We flte institutional manager who is buying be material direct. have, however, with us today a gentle man. by the name of G, M. Goldberg million dollars per annum and that the paint and varnish industry pays approxi mately one-half million dollars of this amount. Your committee now has the matter in hand in co-operation with the local associations, and it la our hope to be able to exempt the raw materials of the Industry from such taxation. Another subject of widespread impor tance to the Industry has been the at tempt on the part of certain Interests to incorporate in the area agreements re quired to be set up by the construction code, division of painting, paperhanging, and decorating, which would forbid or unreasonably restrict the use of cost-eav- 'SWSV. S'. I: the establishment of what might be called industrial solidarity and responsibility,, and your example might be followed with profit by other; industries In these days- when we hear 60 much about "regimenta tion from abovei" Even the best; paint maker in the world might fail for a. variety of reasons which have nothing whatever to do with the- making of paint--the stagnation of in- -estment, the paralysis of construction, the decline of agriculture, the widespread' halting of industry which we call depres sion. Hlg fortune h s bf*en tied in with the fortunes of others and goes up or down with thei general tide. Manufac ture has becomei a detail, although a very necessary detail; In industry and manage, ment, which looks to constantly widen ing horizons. ! It follows, as i a matter of course, that the individual paint maker, as well aa every other manufacturer, is concerned not only with his own situation, but the- situation of his industry In the general economic picture. a"d condition#* pre vailing In the broad segment of business activity in which he operates. If he takes' the ground thatch1* res'onaiMHtv end* at his factory doorstep, ho cannot justly complain when he Is jolted by. the impact of events originating beyond that limited' outlook. And I think he can rely upon- the- certainty th;at the less he does him When the painter buys from the fac of San Francisco, who would appre self to regulate) and control such events, tory he has the tendency and urge to buy k quantities larger than he normslly con soles in a given month, and consequently he la unable to meet his discount when the tills become due, and even In more In stances, even to pay them tn the net pay ing period. When he buys from a local wholesaler, who is able and willing to dsliver his daily requirements - as needed for his individual Jobs, he, naturally, aroids surplus stocks. Consequently at the end of the month he has only bought the paint which he is able to use. So that when he receives his pay ment from the institutional owner, or the real estate management concern he has sufficient money not only to pay his labor costs, but to pay his material bill when toe, provided, of course, he has figured the work correctly. . Incldentty, the local wholesaler, living in the same community with the painter and In almost dally contact with him, is bet ter able to judge of his capacity and char acter than is the -credit man .of the fac ciate an opportunity of presenting a message from the West Coast, Is Mr. Goldberg here? Mr. GoldbergI don't know what kind of -a message I have to bring from the West, although there is a little dis cussion as to what Is really the West. My friend, Wallace Bennett, said that he came from the "far and wooly" West, but if he did, I would like to know where I come from. I came a long way here, with my good friend, J, B, Kiester, and we had a very enjoyable trip of three thousand miles. I listened to some of Mr. KSester's stories for three or four days, and some I heard two or three times, but still they were pretty good. The trip waa worth the while, even just to be present here this afternoon and listen to Mr. Peck's won derful talk, and see this play that we saw, and I am going to take back to the Pacific coast the message of this meeting this afternoon, and. I am sure that the boys out there will be more than glad to Edgar S. McKaig Chairman On Legislation the more will be done for him. Indiffer ence of that kind Is fertile soli for sow ing the seed of jpolitlcal bureaucracy. The- alternative Is a strong, aggressive trade association which will shoulder the responsibilities that properly belong to an Industrv, and wiP co-r'T'n'*of* with other industries tn meeting difficulties common to all. Must Be Co-operation That is not iperely a theoretical word' picture, like so many that are being drawn for our .delectation, and possibly our discomfiture, nowadays, The neces sity and the opportunity for this kind of co-operation iwert; never more evident than at present Our experience has re vealed rather definitely that the deciding battle between \ recovery and depression will be fought in that sector held by what, for Jack of a -better name, have been called the ''durable" goods industries, especially the - construction industries. They are the flr;st to fall back before the tory located In a distant city. There fore, the wholesaler often sells your' mer chandise to painters because of this knowledge, whom you, yourself, would not care to credit. . .- ' Because of the extra amount of service- required for handling this class of busi ness, frequency of sales contact, the avail- abHSty of stock, and the quickness of calivery, as well as the credit risk, it-is essential that the margin of profit for this dess of sale be higher than the margin of profit ordinarily allowed on dealer sales. ' A good starting point to arrive at what hlB margin of profit should be would bo !o take the Department of Commerce survey on the cost of conducting a whole saler paint business. It is true that times and conditions have changed since this survey was made; hut, if anything Is wrong with the figures, they are too low because the shrinking value of the sales eren with reduced overheads has added to the percentage of costs. I might also eay that it always ap pears to -be a sign of weakness when a hear what I have to say of this conven tion. The only message that I have to bring to you from California is this:---If any of you gentlemen present this afternoon are in any way dissatisfied with the paint business, I welcome you to California, under two plans:--- One is the Townsend plan, of two hun dred dollars per month pension after sixty years of age, and the other one is the EPIC plan of Mr. Sinclair, of fifty dollars a month after fifty years of age. Ali of the "ayes," "ears/' and every thing else are on California elections Tuesday, and I am not going to make a political oration this afternoon on behalf of Governor Merriam, but I certainly hope that he is elected governor of Cali fornia, and If he isn't and Mr, Sinclair should get elected by any means, I am afraid we wilt all be out of the paint busi ness. I thank vou. . Chairman- Peck:--Our next speaker, gentlemen, is Edgar S. McKalg, the chairman of the legislative committee. ing machinery, Including spray-painting equipment. The proposal appeared -in the draft submitted In several isolated locali ties,- but in no large community. This in-, direct method of Legislation on a subject which Congress- and State legislatures have declined to legislate upon, was dis approved by the National Recovery Ad ministration and the provision was de leted from such area agreements. How ever, only a small number, comparatively, of the total of such agreements to be acted upon have, up to this time, been made public and it Is the desire of your committee that the members bring to our attention any instances of such proposals which, may come to their wiotlce. From Information we have been aftle to develop, the proposition does not-emanate from, or have the approval of, the contracting painting industry or their associations who have always co-operated towards preventing the enactment of unwise re strictive legislation of this nature. In the coming, year forty-odd legisla tures are scheduled for regular session. It advance of depression and the last to re spond to the stimulus of recovery. They reflect most accurately the difference be tween prosperity, on the one hand, and stagnation and1 unemployment on the other. When they regain the offensive and begin to pqsh forward, we may, I think, assume that the long struggle to rehabilitate ourielves fs nearing its end. The manufacture of paint and varnish, falls within thls-category. It is the hand maiden of the "durable" goods industries and next of kin to the construction In dustries, because it aims at the protection of what we are building end the observa tion of what we, have already built. The story of depression cannot be told more vividly than by- the unpainted house or bam whipped by the winds of adversity and silently yielding to the creeping march of decay.) Into this pivotal sector where the storm of economic battle now centers, the Fed eral government has thrown the weight of Its influence Ijy setting up, among other- measures, the housing act. It is a prac tical device which avoids direct govern manufacturer goes into a city and com is the hope of your legislative committee ment debt By; it the government does petes with the wholesaler at a price conriflerably lower than a wholesaler. Legislative Report that members of our local associations will vigilantly watch the introduction of not undertake to displace private busi ness initiative, but endeavors to supple Qualfty being anywhere near equal, it bills in their respective States, communi ment it. It does not assume command Tould certainly seem to us that the manu facturer's salesmen should be able, to get the same price for his product that the wholesaler gets ; although we all know of innumerable instances where this class of trade at the present time is not only sold at a price lower than the uniform dealer price, but at even prices equal to and lower than the lowest distributing costs. I know of one instance in particu lar where a painter Is buying a nationally Mr. McKaig:--I shan't detain you very long, The legislative committee has a very brief report to make, . Your Committee is pleased to report that conditions in the legislative field affect ing our industry have been quiet. There have been quite a number of extraordi nary. sessions of the legislatures of nu merous States, but because of the depres sion they have dealt with questions relat ing to unemployment relief and general cate the same to our committee, and con tinue to extend the ' same effective co operation which has, in past years, pre vented unreasonable burdens upon the industry, Our committee extends Its sincere thanks to the officers and staff at national head quarters and to the membership of ` our local associations for the splendid co operation they have given us during the past year. nor direct the strategy. The act goes to the root of unemployment by supply ing jobs where they are most needed and stimulating a lagging industry, or group of industries, not by artificial restora* tives but by natural means. We are learning, I think, that govern-* ment spending, although it may be a temporary antidbte for unemployment, ia not a cure. To `be permanently effective, spending must be an investment in the advertised brand of flat wail paint In 24lallon lots at 4:0 percent less than the krai distributor is. getting for carrying the fell line. Naturally the painter's goods are being shipped direct. We are frank to admit that there has taxation. . The aid of your committee was re quested by the local associations in Ohio towards preventing the enactment of* the liquid full tax law which imposes a tax of one percent per gallon, upon kindred raw Chairman Feck:--Before we close J would like to express the hope that you will be here tomorrow morning at ninethirty sharp. We have a relatively heavy program. facilities which tend to prevent the re . currence of unemployment or, at least, to soften its asperities when It does come. Grand pianos might be very desirable -cqulsitlons but the puchase of them when the roof needs mending is not to be en not been the complete harmony between materials. Your committee has thug far We must get finished with it in the couraged as a wise practice. I am afraid the manufacturer and wholesaler as might exist, and we are equally frank In saying that we believe that the wholesaler has been just as guilty as the manufacturer lh causing this condition. Bach side believes firmly that the other side Is wrong, but aa Mr. Trigg ably stated the other day been successful in dissuading the admin istration from proposing re-enactment to the legislature. Another special session Is scheduled- for November 19, but we predict that no unfavorable action will he taken. It is reliably estimated that this tax law yields a revenue of about ten morning and we do not want to hurry any speaker. In the meantime let's have a grand time tonight. The meeting Is adjourned, let's go. (The session was adjourned at 5:30 p.m.) that, as a nation, we have been extrava-. gant when we might better have spent our money for necessities. It goes without saying that If the "big push" in the important sector held by the durable: goods industries is to reach its objective, the industries them-, at luncheon, the old saying is that there selves must get'behind It. Government are two sides to every argument, but he believes that there are three sides--your side, my side, and the right side. Banquet Session--Thursday Evening may lav doyn a; barrage and blast away some of the more formidable obstacles, hut the Industries themselves must make It seems to me that the code authority for the manufacturers and the' code authority for the wholesalers could well sit' down and in a cairn, sensible manner discuss the differences or opinion between the two branches of this great industry and arrive, not at the answer you want, nor at the answer we want, but at what perhaps would he a middle course and what would be the right answer. ; I firmly believe that these manufac turers who make a real effort to sell their products to this class of trade through the wholesaler were in a far better posi tion to cash In on their efforts than the manufacturer who adopts the policy of selling direct. Do not forget this class of buyer must have frequent sales, con tact, availability of stock and quick service, and in these three things the wholesaler should and does excel, Chairman Peck:---This has been a comparatively long afternoon, and we do not want to hold you unnecessar ily. But to be sure that we are getting the most out of this meeting, and Henry I. Harriman, president of the Chamber of Commerce of the United States, was the principal speaker at the annual banquet of the association, held in the Mayflower ballroom, Thursday evening, November 1. Ern est T. Trigg was toastmaster. Mr. Trigg announced the establishment of a competitive membership award to be known aa the President's Cup, which will remain in competition for three years. The name of the leading club each year will be engraved on the cup. First honors went to the Philadelphia Paint, Varnish and Lacquer Associa tion for its aggressive membership campaign In the past year. Another honor award to be given annually for outstanding service to to H. J. Kuhn, of Texas, for his in dividual membership activities, Housing for Relief The topic of Mr. Harriman's address was "Unemployment Relief and Hous ing," and he dwelt at length on the nature of the housing act program and how the great paint, varnish and lac quer industry fitted naturally into the set-up. His address in full follows:-- I feel a certain measure of satisfaction In being permitted to address your asso ciation, not because T have a portentloue message to deliver or because I can add anything to your deliberations, but be cause I believe that gatherings such as this have a very important place In our national economy. Although some people may regard them casually, they represent a development of the highest significance and one which must continue, if our tra ditional policies are to be maintained and cur basic institutions are to be preserved. the advance. The organization of thatadvance is the Job of the trade associa tions. That 1b the kind of self-regi-. mentation to which every one can whole-.. heartedly subscribe. The "push" is already under way. The modernization nrogram has been launched. Equipment and building supply concerns renort Increases in the purchase of "modernization" notes of as much as 500, percent during the first part of October, Insured modernization loans have soaredfrom 117 In the first week the housing actwas put Into operation to more than 4.000 In the ninth week, and they ara stPl going up. Fortunately, also, the impetus has been extended to purely nrivate modernizing operations. Non-. Insured loans made by banks and buildingand loan associations have been stimulated and it is estimated that cash expend!*, tures for improvements are three or four times the volume of loans made for that purpose. In New Jersey the ratio has been six to one. Forward for Paint Industry The paint manufacturer, I have no many have traveled far to be here, we the association or the industry was After the experience through which We doubt, is going forward with this advance. would like now to throw this meeting open to a floor session, for the purpose of having floor discussion, and for the further purpose of giving you gentle men a full opportunity to ask any of the last three speakers any questions which you may have in mind. They have contributed much time to thinking about their respective sub jects, and have done so, as we all presented for the first tfme to William H. Jarden jr,, Philadelphia, chairman of the national membership commit tee, who spent much time in traveling in behalf of his committee last year. The St. Louis, New York, and Louis ville associations received honorable mention in the membership race, and special tribute was paid by Mr. Trigg have gone in the paBt five years, I do not think that any of us need be reminded that we are not sufficient unto ourselves. We have realized--somewhat belatedly, perhaps--that we are sheltered by the same economic roof and that when it leaks we are ali in danger of getting more or less wet. In your case a catastrophe was not needed to bring home this now obvious truth. You were among the pioneers In He, too, has felt the quickening Impulse. It Is to his Interest and' to the interest of the country as a whole to see to it that the momentum is not lost, but, rather, that It is accelerated and extended to the great housing program now about to be launched. That, too, Is a job for the trade association. Now al! of this is not merely a task to be done by the paint and varnish In* dustry or the construction industries or- 50 November I4t 1934 OIL, PAINT AND DRUG REPORTER the durable goods industries. It Is one aspect of the general problem. . This brings me to the important Prob lem of relief. According! to the 1930 Census, there were about forty-eight million potential workers in the country, and, at that time, between forty-five and forty-six million were actually employed: about two or three million; being out of work. This latter figure la'pilot far from the usual estimate for the unemployed who are moving from one task to another; who are physically or mentally unfitted for employment; or who, as young- men or women, have not secured their perma nent jobs. In-March, 1933, the Industrial Conference Board estimated [that the num ber of those employed had. dropped to thirty-three and a half 'millions, and they now estimate that about forty-two ana a half millions have Jobs or part time employment. But this includes at least five hundred thousand who are at work directly or Indirectly under the PWA. While there are no! accurate fig ures of unemployment, it is'probable that thirteen millions were unemployed . In March, 1933, and that between seven . and eight millions are now! out of work. T have quoted these figures, not only to show how many are still unemployed, but also to demonstrate `how far we have gone on the road to recovery. Yet despite an undoubted Increase In em tivity and enlarged the payroll of the nation but Here is no evfaence that the relief burden has been markedly lessened by these expenditures, except in the case of expenditures for roads, and for other lines of work employing a large amount of common labor. The evidence of this truth is found in the mounting relief costs accompanying mounting expenditures for public works. There does not seem to be a very direct connection between the dol lars expended on the Triborough bridge and the dollars required for an unem ployed worker. In fact, many experts estimate that a dollar expended In direct relief will give more aid to the unem ployed than three dollars expended on Triborough or Golden Gate bridges. - It is generally. leit that the CCC has been' a successful form of. relief and that life in 'the , open 'has had a good effect upon the physical and moral well-being of those who are thus employed. Thus far, the CCC has confined its efforts largely to. work In the forests, I wonder whether this organization could not well - The Industrial revolution made possible the age of plenty, and mass production made it possible for one man to produce more goods than could a hundred a dec ade before. I would not In any way check the industrial revolution, or the potential age of plenty which li ushered in. Iwould ask whether it Is not possible to so ' unite agriculture and inauetry tnat we may have the security which the former otters with the wlde-wealth producing ca pacity of the other. - I believe the long time remedy for unemployment is to de velop a form of life in which the worker Is, in part, Independent of wages and can raise a substantial portion of his own food in the garden surrounding his own home, in a suburban area on the out skirts of a city. To this I would add such security in Investment that he can be assured that his savings will be rea sonably secure. I therefore suggest that after completing the large projects now under way, we bend our energies to -the construction of suburban and country homes for the workers, to the construction of good roads, and, as an adjunct .to that, the elimination of railroad grade cross ings. To this program I would add some slum clearings In the larger cities, but only where it is possible by such recon-, structlon to largely reduce the number of people living in a given area. It do not -believe In the construction of. crowded apartments to replace crowded slums. ning should contemplate at least two acres around the home In order that each family may have some means of sub sistence when other means fail. All plan ning should contemplate the ultimate ownership of the home by the Individual. All planning must be carried forward with direct.- consideration of the people and their background and their experience. There must be no creation of areas of new homeB standing vacant or idle. The job to be done la great and the government's part Is In aiding planning, and possibly In rendering credit available. The experi ence and ability of our citizens who have engaged In construction and planning can not be matohed by newly created govern ment bureaus and must be fully utilized if waste Is to be avoided. The government Itself should go no further than to be responsible for the general plan, and for that assistance which will permit our builders, our ma terial dealers, and our manufacturers, to go forward in the performing of their own functions and thus increase the em- ployment they can give to the people who are now out of work.- The govern ment should point the way and set the conditions of Us material aid, but it should hot Itself take over the huge task either of planning or of execution. The housing act would seem to afford an existing means for the execution of such the as itio: : iqu: ,ch ipa t "tl : WT i wi > of : go[ cei :kli : ws ' it r fa [ lie is : ad ps ; di \ ar m : VJ ; h? :m ty ployment, the relief rolls have continued The basis of this program--a program a program as I have outlined. to gTow. This Is largely due to the ex haustion of financial reserves of the un employed and to the inability of relatives that would look to private industry for Its fulfilment and not to increase of government indebtedness-should be the Such a plan for the decentralization of labor must, of course, come as a gradual evolution. There are thirty million pi m or friends to support those1 who are out of work. Aubrey Williams, Deputy Ad ministrator of the Federal Emergency Relief Administration, has ' recently construction of workers' homes, largely on the outskirts of our Industrial centers. People are naturally social and I would suggest that, in many instances, these families in the United States, of which twelve and a half million are classified by the census as a "rural," and seventeen and a half million as "urban." For cen B p) y pointed out that more than : 13 percent of the people of the United States are now receiving aid. That meanls over three ' millions, six hundred thousand families plus five hundred thousand additional in dividuals, or a total of between fifteen and sixteen millions of people. 1 Indeed, it Is homes should be built In settlements,- of, say one thousand homes located where land Ib good, health Is assured, and trans portation by road or rail available. To a degree such workers' homes should also be buflt In existing towns, and many ex isting houses can be modernized. sus purposes '`rural" includes the families fi: in villages and towns up to twenty-five o: hundred population, accounting for nearly half the "rural" families. In 1930 there i c were in the country as a whole twenty-five s million . "dwellings," of which nearly 1 twenty-three million were one-famtly f\ estimated that this Winter- the total of Many types of workers' homes should "dwellings," But a "dwelling" In census V those receiving aid may reach twenty million people. The cost of relief fs huge. It includes be built The average home should prob ably be one ot approximately five rooms, located on a plot of not less than two terminology may be a boat, a tent, or a sleeping room In a factory or office building. t t the cost of direct relief, the cost of the acres. These homes must he well built, In. the period after the World War, CWA, the cost of the PWAj and the cost must be thoroughly insulated against heat when a housing shortage had accumulated, of the three hundred and fifty thousand loss, must have water, electricity, and a we built in a single year, I am Informed, men who are working In the forests In --bathroom and must be located on a hard as many as six hundred thousand houses, the CCC. The total sum '.expended for surfaced road. Such homes can be built A figure of three hundred thousand relief and public works since March, 1933, in mass production, but not uniform in. houses a year has been estimated as a by Federal, State, and local authorities, amounts to between three and a half and Membership Award appearance, for $2,000 or less, and can be sold to the worker on part, time pay normal annual need to take care of our ordinary requirements of - new houses In four billion dollars, and for the fiscal year ments which will enable him to own this country. In Great Britain, with Its 34-35 it will possible exceed'-three billions of dollars. :. I have Quoted these figures to indicate the magnitude of the problem, both from a financial and social standpoint, and to make clear that there will be little hope of balancing the budget ufitil relief ex-' be used In building small irrigation reser voirs In the far western states. I am not referring to the huge Irrigation reser voirs like that at the grand Coulee, but to the small reservoirs costing from onehalf million to two million dollars, and irrigating land at a cost of less than fifty his own home within, at the most, fifteen . to twenty years, and for a payment of leas than fifteen dollars a month---a sum much less than the rent he is now paying. Needed:--`Planning and Work . Broad planning will be necessary and pendltures are materially lessened. dollars an acre. There are many reser that devotion to matters ot detail and Basic Factors in Relief voir sites of that type scattered through complete understanding of the real prob out the western states ; but for every acre lem that Is essential to success. All plan- Recognizing, as I do, that those who are actually in want of food, iclothing, and shelter, muat be assisted, I suggest for your consideration certain [basic factors in the furnishing of relief. [ A. The relief Itself should not be en tirely furnished by the federal govern ment. Relief is largely si function of private charity and local government, and the function of the federal government should be to assist only when absolutely thus irrigated I would make It as a con dition that at least twenty acres of sub marginal land be returned to the national domain, .The Ufontana or Idaho farmer can make a good living on twenty-five acres of well-irrigated and well-located land. Better, Indeed, than he could make on twenty-five hundred acres of - sub marginal lands In the hills. The CCC might also extend Its program to grade crossings and to public highways. necessary. j . There are some who believe that unem B. The relief itself should be admin ployment relief at public expense should istered by local authorities who are most begin by putting unemployed persons who familiar with the needs of the applicant. are on relief rolls at work making the C. Relief should always be granted In connection with properly organized em* things whfch they themselves and others on relief require as necessities or com ployment exchanges, which will first make every endeavor to supply work in private industry for the men and women who are seeking relief. The English experience, and the experience of the City of Roches ter, N. Y., point to the siiccess of this method. No man or woman should re ceive relief if there is an available Job, or if the family of the applicant can fur nish relief. : D. It is of the utmost importance that all forms of relief, whether- direct relief, or work relief, or relief [through the operations of employment exchanges, - be under the centralized control of one body. Thus, and thus only, will the job and the man out of work be brought together. Personally, I believe it would be wise to have relief administered by a board of three or five, with various divisions headed by administrative officers. The task of relief Is so broad and Its facets are so numerous, and its policies so in tricate and varied, that Z feet a board rather than a single administrator would give the best guidance to the centralized program of relief.. ' E. .If the unemployed cannot be fur nished Jobs In private industry, then it forts of life. There is no denying the .benefit to the individuals, through their having something to do of a useful kind rather than existing In lldeness, There has been much success In affording un employed men and women a chance to have gardens In which they can Work. There' is much other work in every com munity that can be carried out to the advantage of everyone, and, moat of all, to those who would otherwise he unem ployed. Local co-operatives. have also served a useful purpose in a limited way. Blit, to attempt to place four or five million persona at work turning out In-, duatrfal products under a co-operative so cialized program would have a disastrous effect upon existing employment in the industries of the country, and seriously" affect the position of the Industries them selves at a time when efforts In the pub lic Interest should be directed toward adding strength. I do not believe In at* tempting to build up a socialised sector within a state operating under a privateownership economy. Let us rather bend every effort to bring.about the re-emplov- ment of these unemployed persons In the -regular channels or business activity, must be determined to what; extent direct * Program Suggested relief should be given in jthe form of cash, food, fuel, or clothing $ to what ex tent local public works, such ;aa those that were carried on by the CWA, shall beundertaken; to what extent! large public projects, such as those of the PWA, shaU be carried out, and to`what extent, May I now suggest a program for re lief which has, ae Its objectives, the stimulating of the construction industry, largely through the.use of private capi tal, and in a way which, in my opinion, will result 'In curing the basic - cause or unemployment We should never for one if any, the unemployed shall be given work In raising the food oi* making the Instant turn back the wheels of progress, or check the development and use of articles or rendering the services which labor-saving devices. Thus, and thus the unemployed themselves 1 require. only, can - be produced the added goods Direct relief in the form of cash, food, required by a higher standard of living. fuel, or clothing fs undoubtedly the most But thanks to the automobile, to good economical and the least burdensome to roads, and to various torms ot rapid tran the taxpayer. It Is the final form of re sit. It is now possible to unite the security lief which, after a long experience, Eng which comes from the ownership of a land has found to be most satisfactory, it is undoubtedly the most desirable form home and a two-acre garden to our mod ern Industrial life. - President's Cup population of forty-five million people, for. the period 1919-1933 there were built nearly two million and a half houses-- at an average rate well over one hun- dred sixty thousand a year, and in the twelve months ending last March, Great Britain had' built two hundred eighty- four thousand houses. ' With an accumulated shortage of hous- ' Ing in this country now, and with the undoubted impetus there now is to slum clearance and to more adequate housing, I believe a housing program that would contemplate the construction of even as many as seven hundred fifty thousand houses a year for the next ten years is not Impossible of attainment. The figure is consciously put high, but if at tained- would not place us beyond the 'housing-standards to which we may prop erly aspire.' It can . ho demonstrated that the manu facture of the material. Its-transportation, and its construction in the form of homes, can be done with approximately five hundred hours of- labor per home. That is the .work of two men for oner year, I. have-dwelt -upon this matter of eco nomic security, which will come through the marriage- of agriculture and industry, because' it is my firm conviction that political liberty, individual initiative, and democratic self-government are all de pendent upon the economic security of the individual. When times are -good and Jobs are plentiful, when men have prop erty, they are conservative, hut when famine stalks In the land, and - when millions are out of work, people turn to any nostrum that seems to. offer salva- tton. ' After all, what are we striving for in America, and what are the essentials of a happy and useful life? A job. for everybody who is able to work, jit fair pay with reasonable work ing hours, and with adequate time oft to enjoy; life* . Security against the hardships of un employment, sickness, accident, and- old age. - -. A political and economic liberty, which permits the exercise of individual Initia tive, and , -Security of our investments, and a-fair return on the same. ' These.are not the conceptions of a new deal or an old deal. They have their, origin In the Instincts of the race.. In this paper X have attempted to dis cuss with you a very few of the lm .portant problems of- recovery. These problems cannot be Ignored, neither can they be disposed of by the expedient of temporary legislation. They must be an swered In the light of enduring principles. In the spirit of our Institutions, in the trend of our national genius, and in the needs oL generations yet .unborn. I believe with the British Chancellor of the Exchequer, who is a devoted follower of Dickens, that "too long we have -been reading 'Bleak House' and that now we should scan the. first chapters of `Great , Expectations/ " of relief for short emergencies. But,. If Prior to the Industrial revolution, men relief must be given over long periods of time. It may be well objected to as tend ing to create a nation of mendicants, and lived largely on the land, owned their own homes, and produced most of their own food and clothing. Times in trade Friday, November 2 as building up a class who < come to feel might be good or bad, but the great mass that the government owes them a living without work. It Is a form of relief of the population of the world lived on, a very meager life. It Is true, but with Fifth Session--Friday Forenoon which. I feel Is most dangerous from a reasonable stability and security. The social standpoint. Relfef through a pro advent of the Industrial revolution gram of large public works [has been ad vocated by many economiflts.1 We adopted changed this form bf reasonably secure life. Factories were located in the cities, Trade Sales Conference that form of relief when weimade an ap propriation of three billion, three hundred million dollars as a part of! the recovery act and, later, when we mae an appro near the water powers or the coat mines or on rivers, and the workers lived near . them in city tenements. This .brought with It many hazards to the individual. I The second session of' the trade sales conference was convened at 10:09 am., November 2, E, D. Peck, presid to consider and tackle our next major problem--cheap paint. As this subject is one of terrific im priation of. about four hundred million dollars for the CWA. I Shift of Burdejn It cannot be denied that public works expenditures have Increased business ac Employment varied with the condition of business, with technological develop ment, or with the loous of Industries. The young.and the strong were wanted; the old and the w^ak found it difficult to earn a living.' " ing.] Chairman Peck:--All right, gentle men, we will come to order, . ' It Is great to see you all 'here this morning, on the Job and really ready portance to this industry, it Involves far more than a can of paint at so much per gallon, as Its sales success can only occur as the result of mis representation, and at & sacrifice of OIL, PAINT AND DRUG REPORTER ,November 14 1934 51 the industry's reputation for integrity; as well as the individual's satisfac tion in the use of .the material. We, of course could; and have no 'quarrel,, with the manufacturers of .cheap paint, if they frankly said, "This paint Is made of sand and chalk," and. "the sand and chalk is then mixed with benzin and fish oil and water. It will take two or three times as much of this material to do a .Job as with good paint and It will only last 20 per cent as long." We would have no quarrel with that kind of a presentation. If anybody wanted to buy material of that kind It would be all right, but when manu facturers of that type go out and pub licize the statement that such material Is first quality, supreme quality, any adjective you want to use, and com pare it with other products of very different physical makeup--then we are on a different ground, and we have a fight on our hands that we simply that the better business bureaus will wage a warfare to eliminate competitors who merely sell paint at'a price lower than his own, he is doomed to disappintment. The factor In . which the bureaus are Interested is the representations under which paint is sold. It will use every possible effort to correct inaccurate, mis leading or false claims about such mer chandise and will furnish the public with facts concerning questionable paint products. Example of Cheap Paint A panorama of action in a specific sit uation is briefly given in the following bulletins Issued by the Columbus Better Business Bureau during July, 1933. "Owner Factory Faint Store Arrested "Sells $1 a Gallon Watered. Paint "An excellent example of how the Co lumbus Better Business Bureau Is helping every day In the business recovery by agressively combating unfair competition in the various fields of business and at the same time protecting the public, can be found in the following*.--- . "In 1932 thousands of gallons of $1 troit, operating under various trade through moral i suasion to have him names: correct the objectionable practices. This "As the prosecuting witness against is successful in the great majority of Selman, I recommended that his sen cases. ; tence be suspended for two principal rea Prosecution is a last resort and only sons :-- used when other steps have failed. This "One waa that Seilman was not the prln- method builds jconfidence because some clpal in this unfair practice of selling watered paint, but merely was used by Lessen and his associates as an outlet here In Columbus. We were hopeful that Lessen would come to ColumbuB in defense of the case. In that event, he would have been tried. However, according to Selman, Lessen not only re ' advertisers may have may make an relied upon honest error or representations made to them by the manufacturers or Wholesalers whb sold them the goods. The bureaus' policy regarding the paint evil Is summarized as follows:-- . "The better business bureau does condemn all cheap paint Experts not ad vise that there are practical purposes fused to come to Columbus but refused to assist him in his defense. . l wherein cheap paint may be wisely used, such as for temporary buildings, etc. The "Our second reason for recommending suspension was' that' Selman has agreed bureau is interested In seeing that all cheap paint Is accurately advertised and to discontinue the sale of Lassen's paints fairly sold to the public without deception, and to go out of business by the end of the month. Due to the fact that the "The bureau win nt recommend to the public any particular brand, or brands, newspapers, radio stations, and other ad or kinds of paint. vertising media have refused his adver "The bureau will give such facts as It tising, after facts were presented by our develops in Its jialnt investigation to mem bureau, we believe Selman tells the truth bers of the publio. so that they may use when he states that his sales have been their own best judgment in making their very small and that he has lost money. purchases," each day that he has been In business in The education of consumers is a neces must win, because it is the most paint were sold by some of the new smaller this city. sary primary strep. The publicity sent out vicious kind of competition that we stores in the city. Much of this was ad "Selman reported to the probation of by your own association has been helpful have, competition based on false state vertised and sold in such a way to lead ficer this morning, We will continue to and has been jr-eprinted in whole or In ment and misrepresentation of every type and character. Therefore, with great pleasure, I am privileged to introduce to you. this the public to believe it was 190 percent linseed oil paint It was found that most of this paint was manufactured by a company In Detroit, the principal of which Is H. A, Lessen who told a bureau check Selman's activities carefully and, if any irregularities are discovered,' they will be reported to the judge promptly. "We are happy to state that as a result of our campaign, Columbus has been part in the bulletins of many of the bu reaus. They have also publicised facts about the cheap paint evil through news paper advertisements, by speeches and playlets over the radio, through addresses morning, Hugh Smith. representative that he operated under rather well cleaned up in this particular before consumers' organizations,' and In Mr., Smith is general manager of the about fifteen names, some. of which are field of merchandising. As far as we the. news columns of publications. Better Business Bureau of Philadel phia, and has spent the last fifteen years in one capacity .or another in fighting for and protecting the policy known tq be the following: Henry A Lessen & Co.; Detroit Faint Manufactur ing Company; Cadillac Faint Manufactur ing Company; Detroit Paint & Color Company; 'Wolverine White Lead Works; of. "Truth in Trade." It used to be Detroit Color Works; Reliance Faint & called "Truth in Advertising " and It Varnish Company; Kllmatlc Faint Com still may be, but I called it "Truth in Trade," and I am sure that you, will find Mr, Smith can give us many ideas which will contribute much to our thoughts and future actions in connec pany r United Manufacturers Products Company, Detroit; and Red Arrow Faint & Varnish Company. Lessen sells his ' paint through various individuals who have set up so-called 'Factory Paint Stores' in various cities in the Middle tion with this matter, Mr. Smith. West and. East, and through other re tailers;" Cheap Paint In the early Spring of this year, the better business bureau started upon a , program to combat' this form of unfair Hugh Smith >-- When a great industry moves forward, as this remarkable con ference shows that yours is doing, it does not tread a primrose pathway, but en counters many stubborn problems. One competition and resulting injustice upon the buying public. In this work the De partment of Foods and Dairies for the State of Ohio, under the direction of William D. Leech, which department Is of these is the practice followed by some . empowered under the law to enforce the manufacturers, probably not represented paint laws of the State, has co-operated here, of selling cheap paints to the pub- .on all occasions. v lio through misrepresentation. The de Investigators for the better business know, at the present time no water adul terated paint is being advertised and none sold, to any extent, in the city. We plan to continue our vigilance and to take action, if necessary, against other re tailers who may attempt to 'gyp' the public by misrepresenting paint either through advertising or selling." Another quotation taken from the July, 1934, "Fact-Finder" which Is the bulletin of the Better Business Bureau of Detroit, Michigan, reveals additional interesting points:--"Deception in Sate of Faints Exposed When Bureau Investigates Com plaints." Complaints, alleging fraud and decep tion in the sale of various bargain- priced paints, led to a recent bureau in vestigation. ' Purchases made by the bureau dis closed paint with liquid content 69 per cent water, and "white lead" which actually contained as little as 2.6 percent white lead. Warnings were issued and the following appeared over the bureaus signature In some twenty publications, the latter part of March Like an artillery barrage, however, it cannot alone win battles. The infantry must come through to take care of in dividual cases, : There Is no substitute for specialized case work in clearing up bad business practices. This briefly interprets the reported re sults, We claim no monopoly on them, Tour own association has done much in the national fl'eld and it has been our pleasure to co-operate with you in many instances. It 3s obvious that a united front will have greater effect than Iso lated efforts. : In closing let me say that the better business bureaus should be judged by your Industry i as actualities first, but more largely afl potentialities. The extent tjp which they may accom plish even the: most comprehensive pro gram Is limited only by the essential financial support. What has already been done is only indicative of what can be done. It was] accomplished with prac tically no financial support from your group. If it ls!to be continued effectively, It must have your financial as well as your moral support. structive effect of this practice is too well bureau purchased house paint made by known for me to discuss and my remarks the Cadillac .Paint Manufacturing Com will be confined to the methods which are pany of Detroit, advertised by the Ter being used by the better business bureaus minal Bargain House, a Columbus store in .assisting your association to combat of which Wert Heaton Is the principal, the evil. ' as pure linseed oil paint--99 cents a We are here for the purpose of getting gallon, with the statement that the for better acquainted so that we may learn mer price was $2.95 per gallon. The to ' co-operate more effectively in the paint, when tested by chemists at Ohio handling of this unsolved problem and others of a similar nature which may arise in the future. ' Better business bureaus, of which there are now fifty in the larger cities through out the Country, were created by business men to combat misrepresentation in the sale of merchandise, securities and' ser vices. They are non-profit and non-politi cal, deriving their support on a voluntary membership basis from business concerns in many lines of trade,. The officers and directors are selected by these members and constitute representative leaders In their respective branches of -business. For more than twenty years the bureaus have been rendering tangible and prac tical protection to American business and the American consumer. . I might hesitate there and say that each better business bureau - in its own city is a separate corporation, operated by the business men in that particular locality. . We have no national headquarters that dictate the policy, there is no national financing campaign or anything of the State University, was found to contain 56.73 percent water In the vehicle, or 25' percent or one-quarter of the entire gal lon of paint was water. Shortly after the above information was published in a bulletin and given wide publicity in repeated radio broad casts and newspaper stories, William Selman, Detroit, came to Columbus and opened the "Factory Faint Store" at 106 East Long street and prepared to ag gressively advertise ana sell $1 house paint. He featured what was 'called "Guaranteed House Paint" at $1 a gallon. This was purchased by Investigators for the bureau and tested and ft was found that 47.90 percent of the vehicle of the paint was water, or in other words, at least one-quarter of every gallon pur chased by the public was water. Facts were presented to the Columbus Citizen, the Columbus Dtspatchj and the Ohio State Journal. Each newspaper refused to accept the advertising copy. Some .ad vertising was carried . by the Columbus Star and when the facts were called to kind. their attention, . they refused additional These bureaus are all welded together copy. Community papers took similar in an association known ae the National action, , Association of Better Business Bureaus* Selman then put a sign oh his store, but each one operates as the particular telling the public that' the newspapers had needs are required for that community. refused his advertising copy, and. In In practice, the bureaus function on a vited them to listen to his radio program case-work basis, making Investigations to over local station' WAIU. The results of develop facts and following through In these tests made toy the State authorities every possible instance to a definite con of the paint Selman sold were presented clusion to get the desired correction. to the radio station and they cancelled the. They are not reform .organizations but radio contract. Selman then resorted to represent a concentration of- practical house-to-house advertising dodgers. One business idealism', Results are obtained through common sense methods and hard work. In appearing before this group of manufacturers of the paint industry I, therefore, do not come with any. ready made solutions. The best that may be done is to study the steps which have been taken and to attempt to interpret their significance for further application. advertisement was inadvertently ac cepted late at. night by the Ohio State Jeumat. In this advertisement Selman caused t6 be published the formula of a so-called "Durable House Paint" This . paint was purchased' by bureau investi gators, tested by State authorities and as a result, Selman was arrested May 4, 1933, after an affidavit had been signed Harmful Practices Many . by the manager of the bureau, charging him with violation of the Ohio advertising One thing which experience has shown is that there are a multiplicity of harm ful trade practices In existence and that statute. Selman -has pleaded not guilty and the case was set for trial July 6. despite the most favorable combination The Columbus bureau has made, com of circumstances, such practices, even plaints. to the Federal Trade commis with the aid of government backing and. sion and the Federal authorities have substantial budgets for code authorities, been active in collecting facta about the are extremely difficult to curb or.eradi . operations of Lessen and his associates cate. under his various company names. As business men continue to seek the most effective, economical -and practical Unfairness Harms Public means of combating the perennial crop of unfair trade practices, they are turning' more and more to the better business bureaus as the logical agency for such work. .- The bureaus, by virtue of their long experienced handling trade practice mat ters In many fields, have the facilities, which may be expanded indefinitely, and the experience of the past as a guide for the future. In the opinion of many sound thinkers In the business world the better business bureaus are on the threshold of their greatest development due to the awaken ing of business men to the greater re sponsibility which Is theirs in the proper conduct of their own affairs and the trade which they represent. In approaching the cheap paint prob lem the better business bureaus are not concerned with the question of price. If any member of your industry anticipates The consuming public and the legiti mate manufacturers and retailers In the paint business have suffered for years from unfair competition in the form of the sale of adulterated paint at very low prices which are attractive to the public particularly during the business depres sion. City and State officials elaewhere have struggled with this problem for years. The better business bureau is determined to use Its best efforts to stop this form of unfair competition in Columbus "To Those Interested in Paint:--We are enclosing an article which appeared in the Columbus Dispatch-today- (July 6), giving the results of our prosecution of William Selman who came to Columbus about two months ago and opened the Factory Paint Store, and -has attempted to advertise and sell the products of H. A. Lessen and his associates In De "Poor Paint, ' "Most paints look alike- in the con tainer and even shortly after application. Their difference doesn't become appar There is a definite method of combating the cheap paint evil. It is available to your industry if you desire to utilize .It. ' ent until they have been put into service, and It is then too late to rectify mis Cheap; Paint Discussed takes. Poor paint flakes, peels and cracks, not only requiring an early re paint-job, but neceesttatlng scraping or burning off in many Instances, before good paint can be properly applied. "Poor paint is high In water and vola tile solvents, and contains little or no linseed oil. It lacks film forming quali ties, and quickly evaporates upon expo sure to air. Poor paint is cheap because Its ingredients are oheap, and recent analyses of so-called 'bargain paint' dis closed 25 percent water. Other analyses have shown in excess of 60 percent. Need Chairman Feck:--Before we proceed with our next i subject, have any of you question that you would like to ask Mr. Smith? Let us make this meeting to day a real, open meeting. Have any of you anythings .on your minds? J. F, Kurfeea:'---Would It be possible for the headquarters office here, they have sent out a lot of valuable Information per taining to this cheap paint proposition, perhaps it would he possible for the asso ciation to get up a booklet, to send out I really believe there are a sufficient number of legitimate manufacturers In less to say, the purchase of such paint Is this Industry, to give that question great not economy, but extravagance. . publicity, and: I believe it would have 'Tou can avoid unnecessary lose of thlB more weight'coming from the association kind. InBist upon a definite analysis, headquarters, with the privilege of im either on the label or in writing and con printing on it If we wish. fine your purchases to dealers of known Then the manufacturers should send responsibility." that out by the tens of thousands, any "Deception continuesFlagrant decep thing that they can collect from this tion continued, and on May 12, 1934, a Bplendld report, and I believe that would warrant was issued for Louis Chad, pro find a ready co-operation along that line prietor of Davison Unclaimed Freight and among a sufficient number of manufac DIvlBlon Cut Rate Hardware & Furni turers to combat this. I think it Is one ture Company, 2733 East Davison, charg of .the greatest evils to our industry to ing false advertising. 'Bureau investiga day, and I would be' very glad if that tion had disclosed the sale of red or black could be done. ' I don't know that it could. barn paint, and, in another Instance, roof, But I believe if it could be done that it coating, when shoppers responded to the would go over.; concern's advertised offering of *House Mr. Monypehny:--I have been wonder Paint' at 4fl cents per gallon. "Advertising privileges were promptly ing for years .past, and I am still won dering why business people refer to low- suspended by tne newspapers and radio price goods as "cheap," because to my stations, and May 31 Chad appeared be fore Recorder's Court Judge John. A. Boyne and pleaded guilty to the charge. It was agreed that Chad's advertising would be placed under supervision, of an experienced agency, with assurances of unqualified co-operation, and sentence was suspended." mind the only, goods that are cheap are . good paints, and I think it is a misnomer to refer to this low-price trashy stuff as cheap. ' I was just wondering if we couldn't get some other word to convey to the public ' a better meaning, because certainly junk paint Is not cheap. These items, of course do not represent . . Department Store Paint a compilation at all of the work done In the paint field by those bureaus or by the other froty-eight bureaus. In the time allotted, I can only select these Illumi Mr. Jarden :i--It seems to me that the gentleman who just spoke covered the case of one very insignificant dealer. ' I think the important thing to combat nating examples. Is the cheap paint that is being adver Value of Better Business Bureau tised by the larger department stores. I think that Is the problem that we have Analyzing these two reports, we find to face more than any other one. that first of all, the bureaus were in an 1 have been scrutinizing some of the advantageous position to undertake the advertisements, and it seems to me that work because of available facilities; sec they just keep within the law. There is ondly, they had established themselves nothing that you can act on, but it seems In a position of complete impartiality In to me that tt resolves itself down to the their communities and had won the con point that the- manufacturers themselves fidence and esteem of the public as well as are at fault for selling trash like that. officials by their seasoned operations and We had an advertisement In the Phila Integrity over a period of time r third, this. delphia papers about a week ago. The removed any competitive aspect from their house paint was sold at 89 cents a gal work; fourth, they went Into the field and lon, I don't know who sold it to them, developed their own facts; fifth, these but it is one = of our prominent depart facte were applied to obtain the beat re ment stores, and it seems to me that that sult in the most effective manner; sixth, . Is the important thing that we should con the' findings of fact were furnished to advertising media carrying the copy and to radio stations; seventh, the aid' of proper local or state law enforcing authorities was enlisted ,* eighth, informa tion was also transmitted to the Federal Trade Commission to scotch the mis sider.- That ia to try to educate the buy ers of these large department .stores to buy good paint. I think we should have other comments on that subject. It Is most important, in fact, the most im portant thing we have to contend with today. j labeling at the source; ninth, the bureaus Chairman Feck:--Thank you, Mr. Jar obtained the desired results; tenth, the den, Are there any more comments? story formed the basis for publicity of Well, gentlemen, in our various local a protective character for the publio and trade sales committee meetings, the sub also served as a warning to other of ject of cheap paint is certainly one that fenders In the same area. should receive first place on every pro The deterrent effect on other dealers gram, and is undoubtedly something that who might consider similar practices Is we can do more effective work on locally obvious. ' than we can In any other way. Further, the- bureaus follow the con Certainly, we want to depend upon and structive procedure of first communicat use all the machinery which Is available ing with the offender and endeavoring for the purpose of helping us to. stamp 2 ' November 14, 1934 OIL, PAINT, AND DRUG REPORTER this out as fast as we can, and without question the unusually fine work which has been done and will be done by the Better Business Bureau, ;wlll be most heipful. Therefore, let us: tie Into this move, and Into this Bureau movement, and work together to correct this condition. President Trigg: -- Mr. Kurfeas* sug gestion appeals to me as a (very excellent one, and I want to say that it will be given every consideration, : Credit Matters Chairman Feck:--These remarks and thts picture might be termed a sales man's dream, but once upon a time-- it sounds like a fairy story--once upon a time a hard-boiled, tight-fisted, dis agreeable looking person sat in a dark and dismal corner of our respective organizations, gathering; numerous documents and multitudinous reports, profitable operations a jobber on a dealer has to cease doing business. As we a]l know, during-the past five years, the mortality rate .of jobbers and dealers In our industry has been unusually high, and one of the principal contribu tions to that high mortality rate has been excessive bad debt losses. Now, we know that the larger volume of our trade sales products sold, moved through the hands of the painter trade, and because of that, it is only reasonable that the larger portion of the had debts suffered by the jobbers and dealers would be represented In painter accounts. That is not surprising so much as the. fact that the liberal way In which credit has been extended In our Industry by al most all paint manufacturers during the past years, that has made a condition fill out an application for charge account form, From the Information you disclose in that form, plus the information that Is subsequently developed from the refer ences you furnished, plus the information they secure from their local credit bu reau, the department store credit manager is enabled to appraise your credit worthi ness and establish a line of credit for your account, and that line of credit is altered upwards or downwards, based upon your subsequent payment experi- encess. . Now gentlemen, If department stores who certainly have as nice a gross profit to work on as the average paint retailer, if they feel that that Is essential in order to make better profits, why shouldn't the same thing apply to the paint retailer? . Bainters can be classified in four dif ferent divisions. And while I might men tion now that the paint trade as a rule does not frequently furnish very much - financial responsibility, we all do know that over the period of the last five years strive to work off his delinquent obliga tions better than a control plan. Iri closing, gentlemen, I would like to emphasize that by more intelligent dis crimination tn the extension of credit by the paint suppliers of our Industry to the painter trade plus a well organized local credit control plan, in each local commun ity where a volume of paint is sold much can. be done that will profitably improve the showing of not only the dealer, the jobber, but the manufacturer. Thank you very much. HOLC Opportunities Chairman' Peck:--When our govern ment started its great humanitarian drive to prevent starvation Ini the midst of plenty, it likewise and simul taneously said, "and homes and homelife must be preserved." Our people can ill afford to sacri made nonunderstandable decisions, wrote terrible letters, and but seldom left his hole, and had : the words, "Credit Manager," boldly ^stamped- on the door of his den. But ;that time is there has been an excellent opportunity to build up a volume of historical data re garding the Individual performance and painter habits of the painter trade that should permit all of us to exercise more intelligent discrimination in the extension fice and unnecessarily lose their great est asset. It therefore gives me great pleasure to Introduce as our speaker, John H. Fahey, chairman of the board of directors of the Home Owners Loan past. The nightmare is over, and we of credit In the future. Corporation and associated organiza have awakened, I am sure, to a full realization of the fact that in the Four Credit Groups tions. He will, I am sure,, contribute much modern credit manager We have one Painters can be placed Into four credit to the knowledge of the great work of industry's best and soundest pro ducers. ; It therefore gives me great pleas ure to introduce as our next speaker, T. J. Kenny, chairman, oft. the credits divisions' 1. There is the successful painter or contractor, who has operated profitably and has built up financial equities repre sented in cash, accounts receivables, real estate and other assets. His payment being, done, and the opportunity it of fers its natural copartner, the paint and varnish industry. Mr. Fahey. Address by Mr. Fahey and collections committee of the National Paint Varnish atod Lacquer Association, who will discqss the sub ject, and It is a vital one, of "Credit Extension to Painter and Maintenance performance has been highly, satisfactory. He ls a very desirable risk. Unfortu nately, too few of this type exists in a paint market. 1 2. There is the painter who has resided In a community for a period of years, John ,H. Fahey:---I am very glad, In deed, of meeting hero this morning with you gentlemen, and to have the privilege of telling you something about the work of the Home Owners . Loan Corporation, Accounts." perhaps owns his own home, though It which may be of some interest to you Discussion by Mr. Kenny T. J. Kenny:--For the past four years It has been my privilege to present to this convention the report of the credit and collections committee. As you know, their efforts in the past have'been largely devoted to the formation of local paint credit groups, and to the development of " T. J. Kenny may be encumbered by a mortgage, meets his household obligations: promptly and has established reasonable lines of credit with one or more paint suppliers. He either pays for his material promptly, or on completion of a job, While he may not have succeeded in accumulating any visible wealth, he has demonstrated by past performance that he is honest, has a knowledge of his trade that enables him because : of your close association with home building and home maintenance and of your appreciation of its importance to the people of this country. As you doubtless know, the Home Own ers Loan Corporation came into existence by an act'of Congress in June of 1933. under the provisions of that act. the cor poration was authorized to issue two bil lion dollars of bonds, the interest of which methods and facilities that; would im prove credit granting in the. Industry, in Chairman on Credits and Collections to pay his labor and material bills, and secure a sufficient return to take care of was guaranteed by the United States gov ernment, and It was also provided by the so far as the manufacturer Is concerned. his living expenses. This class of painter treasury with two hundred million dol Gentlemen, today it was very gratify ing for me to learn from Mi. Gray, who was In charge of the trade group De partment of the National Association of Credit Men, that the paint industry to- . day has the largest number of subscribers to the national Interchange bureau of any industry In the country. possible that has existed, particularly when it Is considered that no attention seems to have been paid to fundamentals that must apply In our business. "While no national compilation has been prepared in certain markets where data of that kind has been developed, the In trade is very desirable, and is sold on moderate lines of credit. . 3. There ls the painter who has re sided in a community for at least sev eral years, and while he owns no home or other visible equities, has established a reputation for his honesty and moral re liability. He Is frequently sold on a job- lars of working capital. The task assigned to it was to take over mortgages on homes, where the home owners were threatened to lose their homes as a result of foreclosure; homes which could not be re-financed In other directions in order to avoid the unfortu nate development of foreclosure. That in itself, in my opinion, indicates formation disclosed has been very to-job basis, care being taken to carefully When the home owners loan act was that the manufacturers in our Industry startling. As an Illustration I have in record the material delivered to each job, projected and this legislation was enacted, believe in the frank and free inter change of credit Information.1 Furthermore, information that we have gathered this year that would also Indi cate an improvement In our! credit con ditions is the data that was ; compiled In our recent bad debt l&w survey. As you men may recall, from the year mind, data that was compiled by the paint and wall paper dealers association of a comparatively large market, they had one hundred and forty members. They decided to make a record of the bad accounts carried by their member ship. The total for that one market alone for This type of painter disposed of a nice volume of trade salee products over a period of a year's time, but care should be taken to Insure prompt payment of each job as completed. 4. There is the painter who has ac quired no financial responsibility, and has developed a bad payment performance. the fact of the matter was that appar ently few of the bankers and business men of the United States or mortgage lending executives had any real appreciation of the danger of the situation teat was then developing in its menace to real estate "alues In the country, and also the threat to our local financial structure. 1929, to 1932, bad debt losses in our in the one hundred and forty members, ex He Is fti debt to one or more local paint The foreclosure on your own homes; dustry' steadily climbed, so much so that - ceeded six hundred and seventy-five thou suppliers. His past record indicates that averaging seventy-eight to seventy-nine for 1932 they reached two arid six-tenths sand dollars. either through inability to properly esti thousand a year, .but as a result of the- percent of our sales volume. > Where similar data have been com For 1933, they were one! and eight- piled in other markets, the results de tenths percent of our sales volume. That would seem to Indicate that'; an upward trend has finally been curbed, and we have every reason to expect that over the next several years we should be able to get back to five or slx-tenthk percent of ?ales volume. : As 1 mentioned In the part, the com mittee's efforts have been devpted largely veloped have been comparative, losses have been unusually high. In fact, from my own observation it has been very common to see dealers' bad debt losses exceed five percent of their sales volume, and we all know that the gross profits that are available in the retailing of paint, will not Justify any - such excessive bad debt losses, Jtecently you gentlemen may have read :o improving the. credit fltruqture of the the survey that was prepared by Profes manufacturer. We cannot help but feel sor Converse of the University of Illinois, low that it Is our duty to do what we He made a survey of a number of oc ian to improve the credit structure of cupations, and hts data were rearranged the other units Involved, and for the. by the National Association of Finance ;omlng year our work will be in fortlfy- Companies, so that the figure 100 would ng the existing paint credit groups with represent a maximum rating. nformation that has been compiled for There were thirty-four occupations in he purpose of improving the credit struc- volved. The painters and decorators re ure of not only the manufacturer, but ceived the lowest rating with a percentage Uso all other units involved;in the dis of 38. tribution of paint, As we see our picture, in a:broad view, Liberality Not Beneficial ;he problem of the Industry : starts with Now, the fact that the painter and :he collecting of raw material by the decorator received the lowest ratfng, manufacturer, it proceeds aa| a finished does not mean that a greater degree of product sale applied to the {surface for honesty was involved In the other oc vhich it is intended, and it ends first vhen the paint contractor, when one has >een employed, receives paint !for his con:ract; second, when the jobber and dealer eceives payment for the ' material i and ;hird, when the manufacturers receive jayment for the material that has been lellvered to the jobber and dealer, * cupations. It emphasizes rather, the lib eral and unbusiness-like way In which the credit had been extended In our In dustry. We have all seen Illustrations that have arisen during the depression, where credit has been abused and we have seen in stances where credit has been abused by men with much wider business 'training, . mate his Jobs, or lack of sales ability to secure sufficient jobs, he has been un able to earn a living Income from his work, and pay for his material bills. Be cause of the risk involved in selling this class of painter, the experienced and com. petent credit granters In the Industry sell this type only on a secured basis. The usual method of securing the account, is to have the owner of the property either guarantee the material bill, or authorize the paint supplier to bill the owner direct. We all know, gentlemen, from a prac tical angle that Is a very difficult thing to do and still It ls one of the Jobs- that we must possibly overcome If we want to maintain as large a sale volume as possible through the painter trade. Very fortunately for us, there have been two government units that in my belief have been doing splendid educational work in this direction. I have in mind first, the Home Owners Loan Corporation. I know you men have witnessed instances where units of the home loan organization have made It a practice that at the time of paying over the contractor they Invite the material men to sit In so that his account Is si multaneously paid at the time that the contractor receives his money. Likewise some of the banks making loans on national-housing act are follow ing a procedure such as- this: At the time the loan Is approved to the home-owner, in place of advancing the money to the home-owner they place the money in This being the case, It would seem that greater experience than the average escrow with an officer of the bank, and developments with which you are all fa miliar j by 1932, the foreclosures on your homes alone had risen to two hundred and seventy-three thousand, the highest record ever reached, not only in this country hut any country on the face of the globe In any corresponding period. In the month in which this act was passed, June, 1983, the foreclosures reached a figure of above twenty-six thousand, which was the all-time peak for any cycle mojith In the history of the United States.1' In 1933, fori the full year, the figure was but slightly lower than for 1932 and was above two hundred and seventy-one thousand. Now anyone who starts to think about this for a moment will realize that facing, as we were, at the same time, the results of the commercial banking debacle, and almost unprecedented unemployment In this country, that if this on-rush of fore closures had been allowed to continue, the country would have been faced with so cial and political developments of the most serious character. Not only that but as you know, the government, and the government alone, made it possible by the mobilization of the power of all of the people represented through its government, to reopen the commercial banks of the. United States after the holiday of March, 1933, and to place them on such a basis of strength that It was possible to Insure, them, and restore the confidence of the country in our banks. The net result of those constructive he logical function for a credit and colectlon committee of an association such l s ours, should be to develop -means that painter. Now during the past several years, credit to the painter trade throughout the as the work proceeds and as material is furnished and labor performed, the bills for the material and labor Is forwarded measures, as you know, was that in less than four months, something more than two -mlHion . of hoarded cash returned to vould make It possible for the; industry to took a maximum volume of sales at a ninlmum bad debt loss, and a reasonable nvestment in receivables to sales volume or all units involved in distribution. Benefits Must Be General . Now, It Is apparent that iri the appli:atlon of any remedy, that Is af particular >eneflt to the manufacturer | alone, arid hat does not help or assist the dealer or obber, we are simply improving one inlt of distribution and we cannot pos- country has been extended with greater caution, . , I don't believe there has been a time, In at' least the last fifteen years, where as large ' a proportion of the painters have been sold on a cash basis. However, as conditions improve, as more house jobs arise as a result of the- activity of the national housing act, an ultra-cautious credit policy will unquestionably restrict sales. ' But on the other hand, If we would revert to the policies- that pre vailed prior to the- depression. It would to this bank officer.and he pays them..off .our commercial banks, and since then the after the approval of the home-owner/` ; i figure h&S'^risen to an Increased amount charging the payments or disbursements:- to the home-owners loan,- . of;btir-Lk$p a half billion of deposits in the first part of this year, and you will- Now the more that that Is done, gentle find the 'commercial banks of the country men, the more it will Impress upon the today in an unprecedented position, to mind of the painter that his prestige does serve industries and all of the people of not suffer when he brings the material man Into the picture with the home owner, and- anything that we, as indi viduals, can do through- our dealers to the United States. - The excess reserve is above two billions of dollars. That is a greater reserve than this. or. any other country ever before further that .movement is certainly a step in the right direction. commanded, and not fmly th*+ Mit the un used commercial credit available figures ibiy expect by that means fo book the ull share of the consumers' buying lower that the products of oiur Industry leaerve. !- While it is true that the manufacturers alesmen are largely responsible for plac- ng the products of the Industry on the obbers and dealers shelves, the Important ask of moving the products from the nanufaeturers to the ultimate consumer dust be and fs performed by !the organi- ations of the jobbers and dealers, and orttfled and directed by the manufao- urers representatives. j And if the Jobber and dealer In per- orming that function cannot earn a rea- onable net profit for his efforts, it seems eaeonabte to assume that the flow of rade sale products from the manufacturer o the ultimate consumer will be re- irded, and that retardation will be fur- her emphasised when because of un be far more unprofitable.- ' There Is a middle course that we can follow that should very greatly enable us to book a maximum volume of trade sales products through the painter trade, that if- adopted and advocated by the in dustry should result in greater profits to the. dealer, the Jobber and the manufac turer. . And .that middle course (s this, I am sure we all realise from much data-that we have read on credits, that there are several elements that must be considered in the extension of credit re gardless of the services or products In volved, and those elements are the char acter, . the business ability, the financial responsibility of the firm or individual seeking credit I am sure every one of us here has had the experience of applying to a de partment store for a charge account, and you will recall that you are invited to ` Credit Control Work One of the finest sales-jobs that I have ever seen has been -performed by Mr. .Sandhous on the Faclfiq coast, with his board of - directors. . . They have seventy-one firms. repre sented in their local control bureau. They have the large paint manufacturers, the small paint manufacturers, the Jobbers, the paint dealers, and the wall paper dealers, and they are co-operating-very effectively, under a-credit control plan in San Francisco that has been so success-, ful that Portland is now adopting it The "Convention Daily" of the Ameri can jpaint Journal fully describes the ac complishments of the San Francisco credit control bureau for the period of the last six months. Gentlemen, there is no method that will prevent pyramiding of eredlt in a com munity, or will influence the painter to between twenty-eight and thirty billions of .dollars. No country in any time, no banking system anywhere ever attained such finan cial strength as this. Relief Under Mortgagee But, gentlemen. If the government had not at the same time moved to deal with the enormous burden of debt represented by. the mortgaged-on our urban.'homes, ' which aggregates over twenty-one billions of dollars, a large part of the constructive work done to restore the commercial bank lng structure would have proven futile, The movement of depression, as It effects real. estate* and homes, and apart ments, and commercial buildings. Is lower and less spectacular than that effecting marketable securities which may be thrown on the market from day to day nd where the decline in prices at once Is apparent. 1 OIL, PAINT AND DRUG REPORTER November 14, 1934 53 But all of you gentlemen who are failUar with real estate values, and home > obstruction, know perfectly . well that reu In spite of the constructive steps ikon by our government as a result of ic developments before the Home Owners ' can Corporation became effective, the ffct on real' estate values was such that thas been only within recent months able a find a market for valuaoJe real estate aywhere in the United States, As I have tried to say, when this legisitlon was proposed, there were few, even, uaong the best informed students of the aortgage lending problem, who- had any Deception of the necessity for some relief institution of this sort, of the type repre sented by the organization of this parfcuJar corporation. It took about ten or twelve weeks to Ist up this organization In forty-eight States of the Union, and It was done iurriedly, and a good many readjustments hve had to be made, but since November, list, the corporation has been functioning rlth steady Increasing efficiency, and with she result that up to yesterday the corpoation disbursed about one billion eight iundred and twenty-five million of dollars, ind it has taken over the mortgages of methlng more than six hundred thou . and homes. If it had not so functioned, you will readily understand that by this time some tMng like two and a half billions of people ffould either have been deprived of their tomes or would have to be carried by the relief organizations or otherwise in ordfer to preserve roofs over their heads. A large proportion of them undoubtedly as a result of foreclosure would have-been dieted at a most unfortunate time to pre cipitate a crisis of that kind when we I were struggling with the other difficulties to which 1 have referred. I More than 90 percent of this vast sum of money, and I say, "vast sum/* be cause as a matter of fact, gentlemen, we have become so accustomed to talking In terms of tens and hundreds of millions of dollars, and billions of dollars, that we really have no adequate comprehension of vhat billion dollars means, and what the Attribution of already two billfon of dol lars in every one of the forty-eight States of the Uffion, really means in quickening tie currents of nusmesa and strengthening the financial structure. More than 90 percent of all of this ) money has gone to institutions, to commer cl&l banks, to the Insurance companies, to I building and loan associations and co operative banks, to the private mortgages co-operations. The effect has been to put them in a very much different position from that which they occupied a year and a year tnd a half ago. A large proportion of them now are approaching the point where they ought to be able to take over their norma! functions of financing the needs of the home owners of this country. The corporation has something like a 1 billion dollars left, but It has a total accumulation, as against that, of about three and a half billion demand* Purpose Misunderstood We know that a substantial part of this accumulation can never be translated into acceptable loans. A great many of the people have misunderstood the purposes of the corporation, tens of thousands have ; [ filed applications with us who are in no real difficulty so far as their mortgages are n concerned, who are able to pay the in ' terest on their obligations and also meetlag the principal pavments, but they have An Impression that this institution Is ready to take any kind of a loan, and lots of them would like to get a 5 percent interest rate'and have fifteen years to pay off the obligation* and as you understand these i re amortized loans. I think that you gentlemen will find In the years to come that the experience of the Home Owners Loan Corporation in refinancing these mortgages Is going to demonstrate to this country as similar operations have demonstrated to practlcally all of the countries of Europe that the only safe and sound kind of a loan against ; ;i home Is a long time amortized loan, - We used to believe that the short term loan commonly taken by the savings banks for three or five years for not more than 60 or 60 percent of the value of the property, a loan which the bank never exY pected would be paid but just renewed when it came due, was Just about the soundest kind of a security there was In the world,, but it remained for this depres sion to demonstrate that In many respects it was one of the weakest Kind of loans that a banking institution could have. On the other hand, the long term amortized loan which did not put too great burden on the home owner, and as a re sult of which amortization* he was steadily reducing hia obligation month by month, or quarter by quarter, placed him in a position where he could be taken care of to very much greater advantage, and safety to the institution, than if he were obliged to face an obligation which it was absolutely Impossible for him to meet, and where he must either find some way of having it refinanced, or else face the difficulty of foreclosure. I repeat that I think, out of this experi ence, we are going to find that all classes of mortgage lending institutions will con sider much more seriously this situation than they have In the past* the advantage of long time amortized loans, on. which the Indebtedness is reduced regularly* Already some of the large insurance companies, and a considerable number of saving banks which have never considered loans of this character * before are now offering them to those who care to refi nance, or to negotiate new loans. Future Moves Problematic What we may do after our present re maining resources of something more than a billion dollars have been used remains to be seen. That Is a problem for the President and Congress, The funds atlll at our disposal will probably carry the corporation well Into next Spring, with the present rate of disbursement of something more than two hundred million dollars a month, Now, of course, it is highly desirable that this government instrumentality should be re lieved of the necessity of carrying on this vast refinancing of home mortgages and as quickly as possible, and that the tens of thousands of private lending institutions of the country should themselves take up the work. Of course, on the other hand, It is unwise to build a bridge that Is three feet short, and unquestionably the Presi dent and the Congress will be ready to make such propositions as may be neces sary in the flies of the constitutions which exist, when we get around to the first of next February. We, all of ua feel, however, that in this as in other similar relief enterprises, evolved by the government as emergenev measures, that the normal and natural processes of dealing with these business enterprises should be resumed by the pri vate business Interests of the country as quickly and as thoroughly as possible. With the aid that hag already been given to these thousands of financial Institutions by the Home Owners Loan Corporation, we are already finding a large proportion of them ready and willing to make new loans, and to refinance loans which a year ago they felt tliey were unable to carry any longer. . As I have suggested, the Home Owners Loan Corporation Is an emergency insti tution and .was designed to be temporary, hut as you doubtless are aware, and in any event it Is possibly worthwhile for me to explain to you, the permanent steps which the government has taken for the encouragement of proper financing of homes, and building homes, are extremely comprehensive. Combined they represent a program such aa.no government in the world has ever undertaken within any corresponding period. Loan Bank System First of all, as you know, In the Fall of the year 1932, the Federal Home Loan Bank System came Into existence as a result of legislation- passed by the Con gress a few months before, The Federal Home Loan Bank System is a Bystem of twelve regional banks, all built along lines somewhat parallel to our Federal Reserve System and intended to serve the mort gage lending field by offering an oppor tunity for the rediscounting of mortgagee and the borrowing by lending institutions from this regional bank system for the purpose of lending again, or for the pur pose of meeting any demands upon them which may arise on the part of their shareholders and depositors. These twelve banks came into existence In October, and' It was a time when It was a serious handicap to their develop ment, and the Initial movement of. mem bership was rather slow. . Up to the first of January,' 1988, there were only one hundred and sixteen -mem bers Iii the bank'system,' YoU'will recall that In the early months of 1988, that they were full of difficulties Irk the finan cial field, and quite naturally the growth of the bank system was-not particularly significant during that period. Indeed, the real development of mem bership did not come until after the com mercial banking holiday, but In the period since the bank system has seen.a.very remarkable growth, It now Includes some thing like twenty-eight hundred Institu tions In its membership* They have total assets of more than three and a h&f billions of. dollars, Every bank of the twelve is now operating at a profit, and these twelve banks, haye already passed upon and allowed credits amounting] to nearly two hundred and fifty millions-, of dollars available to their institutions' members. Unfortunately. up to date, at the r*Ak, only one hundred, and twenty-five million of that was used, and the bank system has outstanding at present a little less-.than ninety millions of dollars. We are, how ever, extremely hopeful that these banker members will take fuller advantage of thene -laree. resources, of the -h^nk w stem in the months to come, and, indeed* we are gratified to find ft very definite trend In that direction now. The Federal government .to encourage the establishment of this system itself sub scribed one hundred * and twenty-five million dollars of capital to make possible Its establishment. The balance of the capital is subscribed by the banking insti tutions which compose Its membership. Each bank has eleven directors. Nine of them are elected as members of the board of directors in each case by the' member institutions. Two of these directors are named by the home loan bank board as public interest directors, .representing sole ly the public interests. Xt has always been a matter of great satisfaction to us that one of your most conspicuous and useful members and your president, Mr. Trigg here, has been a great tower of strength to us in one of the most important of the Federal home loan banks, that at Pittsburgh, and I want to tell you that he has rendered a service In helping to promote and develop this institution of the highest order, for which we of the board are deeply grateful, and for which every citizen who has at heart the welfare of his community and the pro motion of sound home ownership in -this country, also owes him a real obligation. I am delighted to have this opportunity of saying at least that much In recognition of the obligations that we, all of us, owe to Mr, Trigg. Aside from this bank system* which in my humble judgment is Just In its infancy, corresponding systems have been charac teristic of European countries for more than a century. X go so far as to say if we had had the advantage of an Institu tion of this sort twenty-five years ago, and It had time to mature, you never would have had anything like the difficul ties which arose following the panic of 1929. you will find the home loan bank system. In my judgment, growing in the years to come to one of the greatest and soundest financial institutions that the world has ever seen. It has unlimited opportunities to secure funds for the vast benefit of its membership, because offering debenture bonds as it may, with the combined strength of all of its membership, and the security of their total assets, the bonds which this institution can issue to provide Cor more funds for relending are without ---there is no comparison with them in the field of private finance, .and nothing ex cept government obligations to be found In the field of Investment that can com-, pare with them, I might remark paren thetically, that similar organizations of the same character in Europe oyer the last thirty to fifty years invariably sold on a level with government obligations and sometimes on an even better basis than that of the governments themselves in the European countries. Local Thrift Institutions In addition to | this prominent Institu tion which the. government has hacked, and helped to develop for the benefit of home-ownership in- the United States, the act-which created: the Home Owners Loan Corporation also .provided for the estab lishment of Federal savings and loan asso ciations In those j sections of the country where they were no facilities to encourage thrift and home-qwnership. A survey of the country had disclosed the fact that more than half ofi our twenty-two hundred counties. In the United States had no local thrift. Institutions, no building and loan associations or co-operative banks, no sav ings banks, no institutions of any character whatever interested in the development of thrift or saving, ior in the utilization of the money accumulated in the construc tion of homes arid the encouragement of home ownership. {The Federal government, in order to promote that movement along constructive lines, provided one hundred millions of dollari which It made available through our boartt to take stock in com munity associations, designed to fill this need. [ In other words, the government stepped Into the picture, prepared to put up dollar for dollar with those in local communities where there were no such facilities, to- make possible the accumulation of funds for the protection and construction of homes,. and fori their sound financing. Already something like six hundred Fed- earl organizations have been set going.. When the housing act was up last year, the [legislation was amended so that we were permitted in some instances, if it were desirable to do so, where the re organization of State associations was In contemplation, or whether the capitaliza tion of a new institution on a large scale desirable, that our board might even go so far as putting up three to one against the shares subscribed by local share holders. ! As I said, about six hundred of such Federate have now been organized. Some of them are State chartered Institutions which have been converted into Federals, ns a result of the conviction on the part of their managers and shareholders that there was a great opportunity to take advantage of the Federal charters offered here, and that particularly under present circumstances tne tederalization would have the effect of inviting new funds more rapidly than under existing circumstances tn many sections of the country. Confidence a Factor That has proved true In a great many Instances, undoubtedly a controlling in fluence in the community has been a con fidence and belief in Federal institutions which has been! strengthened greatly by the events of the. last year, and' to a certain extent, at least, a lack of confi dence In State examination and State supervision, and that Is a result of the unhappy developments in a certain num ber of the States* Please don't misunderstand me in re counting these ^experiences in this way. The great majority of the States of the Union, in my j Judgment, have done a reasonably good Job, so far as supervision is concerned, but it can hardly be said that the legislation of the States as a whole has been consistent or standardized. In dealing with the problem of super vision, on these savings institutions, into which the small savings of some ten or fifteen millions .of our wage earners and workers have .gone, we might Just as frankly face the fact that we have not until now provided the protection for these small savers which should have been given long since* : Another influence which is attracting attention to the advantage of these Fed erally chartered associations wherever there Is reasonable opportunity for them, is the fact that under the housing act* also, they are automatically made eligible for insurance, and they must be insured* The amendment of that act provided for the creation of the Federal Sayings and Loan Insurance Corporation, with one hundred million dollars of capital also provided by the Federal government. It Is intended to serve a field* so far as the mortgage lending institutions are con cerned, similar to that covered by the Federal Deposit Insurance Corporation, Joseph A, McNulty At the 1934 Paint Industries Show John D. Lewis, Inc. At the 1934 Paint Industries Show Advance Solvents & Chemical Corporation At the 1934 Paint Industries Show 5'4 November-14, 1934 OIL, PAINT!AND DRUG REPORTER serving the commercial banJts ot the country. Under the terms of that act, as X have said, the government has provided the capital to the extent of. one hundred millions of dollars, and1 these Institutions may apply for insurance and the savings and Investments of their members may be insured up to five thousand dollars against any possible loss In the event of failure or insolvency. They pay a rate of a'quarter of 1 percent, annually. .The board has a right to assess another quarter if It be comes necessary, but we! are satisfied that It is extremely doubtful If the occasion will ever arise to Increase that assessment beyond a quarter of 1 percent* Insurance Idea: Popular The regulations of the Insurance cor poration have lately been formulated, and applications for insurance are beginning to come in upon the corporation from all sections of the country. As a part of it, we are developing one system of annual examination for these Institutions, repre senting the bank system, the Federal asso ciations, and the Insurance corporation, and we are trying to simplify the practice and make it as practical and effective as possible. I am glad to say In this effort we are having the co-operatton of the State commissions and State regulating authorities, and we hope out of It to evolve a standardized system of examina tion which will greatly reduce coats and avoid a very considerable duplication of effort I have taken up tots .more time than I intended to, or indeed that 1 should, In describing, these operations, and In going into a little detail as to their significance. You are already award* tuat as a part of the work of the Home Owners Loan Corporation, we are called upon to ad vance very considerable sums of money for repair and rehabilitation, in the case of homes where we refinance the mort gages. I ought to say this further explanation, that we had the act amended early last Spring when the legislation was before Congress, so that we had Authority to use as much as three hundred million dollars of our resources for that type of rehabili tation and modernization work on the homes that we took over. Up to date we have received 289,230 applications for modernization and repair loans in connec tion with our refinancing. Our expendi tures so far In that particular direction amount to about seventy millions of dollars. _ It seems quite apparent from the trend and character of these applications, that on the remaining four or five hundred thousand mortgages that we will take over between now and next spring, the expenditure will probably run up to around $200,000,000. or $250,000,000. I rather doubt if it will run as high as the total of $300,000,000. . However, this effort is being supple mented on a very large: scale now, by the private lending Institutions themselves, without any assistance on the part of the Home' Owners Loan Corporation, with more funds in hand, and very much great er liquidation than they were as a result of the reset of this large cash volume of cash payments on the part of the cor poration. They are much; more ready to advance money in their own fields. Neglect of Homes As you know, the homes! of the country, as a result of the developments of the last five years, have been neglected to such an extent that there is no qustion whatever that their set value hae been very seri ously impaired. All of the facts and fig ures which we have been i able to gather checked by your work, and that of other similar associations, shows plainly enough that a large portion, probably as many as ten million of the homes of this country are today in need of repair, painting and rehablllation, and their value is steadily declining from week to week and month to month as their owners (have been un able to, or to date have 'been unwilling to undertake the expense necessary to put1 them in proper shape; Mortgag lending institutions are finding collateral steadily depreciated in value. As far as the Home Owners Loan Corpora tion is concerned, in self-defense if for no other reason, we have been obliged to rhabilltate and. repaint; and : refurnish and modernize the homes; that we take over In order to make our collateral of the character that it should be; Other lending institutions have been faced with exactly the same problem. The sooner that they appreciate that and are aroused to the necessity of carrying forward this fundamental work of repair and rehabilitation, the greater It is going to be for the Institutions! themselves as well as for the country as a whole. As you are well aware, the Federal Housing Administration IS in an excep tional position to encourage work of this sort, I imagine a representative of the Ad ministration will talk to you, or has al ready addressed you during this session, and made clear the character of their work. Certainly no government anywhere at any time ever offered more liberal terms for the encouragement of the kind of work which the time demands. Here are the commercial banks, and other lending institutions of the country, offering to lend money for j this necessary work, on very liberal terms, with a guar antee against loss on the part of the gov ernment up to twenty peri cent when all previous experience In this field shows that under the most discouraging condi tions the loss at fts worst has never risen above 3.5 percent. ; Happily, the full advantage Is now be ing taken of this opportunity by a very large number of the banking institutions. Outside of the loans that they are making, as X have said, many of the institutions without resorting to the guarantee at all are making loans on their! own account. Aside from this, gentlemen, I am con vinced that no thoughtful student of the subject can study the trends of the last five or six years without (realizing that we have In the making in this country now one of the largest housing shortages that the United States has ;ever seen. Lag in Construction You know the extent to 'which the con struction industry has declined during the last five or six years, much further than any other industry In the entire list. It is true, as the figures for the last decade or two have shown, that our population Is not Increasing at a rate equal to that of previous years. However, that experi ence is the same as the older experience of the older countries of the world, and likewise we are having the same experi ence that they have had. The number of families increasing pro portionately, the result is certainly going to be as.it has been in Europe. & demand for more homes. They may be, on the average, smaller homes, but the next decade. Is almost certain to see a great Increase In the demand for smaller apart ments and for smaller Individual homes. Now, of course, we all realize that there le a very real, element and danger in en couraging speculative building In this country on a basis which would not be warranted. If we overdid the thing, we would have a bad headache thereafter as a result There is no occasion for doing that There are sections of the country where there is at the present, time a very real need for new housing. There are other sections where we are already overbuilt and new construction should not be en couraged. In every section of the-country, however, there is a very real need for modernization; extension; and reconstruc tion of homes. ' - In that direction, alone, there are enor mous opportunities which should be of vital interest to you as well as to every body else who has any relation whatever to building and construction In this coun try; - - . ; I know that you have already felt, In many directions, as others have, the quickening revitalizing effects of some of this work which has already been done. I venture to -suggest that you will feel the- importance between now and next Spring. We recognize that you, gentlemen, all or . you, have cooperated whole-heart edly with us, and with other Federal In strumentalities with an effort to bring the. business of this country back to the level which it ought to have, There Is much yet to be done. It Will be done,- In my judgment, only as we tackle, the problem with courage and de termination. After all, there Is only one really .dependable way to-get business, and that is by going after it. We seldom accomplish anything by drawing the blinds and locking the door and waiting for somebody to pull the doorbell out by the roots. Business Must Be Sought There is only one way to get business in this country and there never was any other and that Is to go out after it Certainly there Is plenty to be had In this country of ours, and if we really let our imaginations take a look around the road into the future, we can, I think, hardly fall to realize as great as have been the achievements of the United States of America in the past we are really but at the beginning of what it is possible for us to accomplish. You gentle men come here from all sections of the United States and I know that those of you who travel across the country from Bast to West or North to South, and just look out the car windows, cannot fail to he Impressed with the fact that in truth we have hardly scratched the surface in developing the resources and the possi bilities of this country of ours. After all, we have here the greatest single piece of real estate there is on the surface of the globe, containing within Its own borders more of the natural re- rouces of the world than any other coun try possesses. It Is a virile, ambitious, Industries people, who talk, the same language, forty-eight States free of tariff laws, and an industry comparably greater so far as Its equipment Is concerned, and man .hour is concerned, than any other country in the entire world. It has a rail road system greater than any other land possesses, and financial resources under our control to be used to full advantage such as no nation has ever had. . Under these circumstances, why should we have any doubt about the future of the United States of. America? It is In our hands, in the hands of' the business men of the United States. They have received and are receiving help and encouragment from their government. But there is a limit to how far the government should go. or should be expected to go. There can in the last analysis be no substitute for the activity of government in keeping the -wheels' going and employment sus tained, exoept the energy and the Industry, and the ambition, and the determination of the business men of the United States themselves. So far as your industry is concerned, there is a great demand, and a very real demand for the products of your factories. There is nothing more valuable in pre serving the building and making It more attractive than the right kind of paint. If we do nothing else, in the year to come, but go out and paint every struc ture we had In the United States,- we would so brighten up this country, and encourage our people that , you wouldn't find any room anywhere for the gloom birds that we still have among us In some directions. Gentlemen, thank you very much for the privilege of talking to you. Response by Mr. Trigg President Trigg: Mr. Peck has asked me to say a word to Mr. Fahey in appre ciation of his coming here and talking to us. Nothing could possibly give me more pleasure than to be able to adequately convey to you, Mr. Fahey, the very gen uine appreciation which we feel for this wonderful talk of yours. It is informative, educational, inspira tional, and I don't know whether you-men all understand Mr. Fahey, who has re ferred to ray association with the home loan bank system which gives me an opportunity of saying to you that through my contacts with the Federal board, 1 have had an opportunity to -see a little something of the working of that board. The Federal board, consisting of five men appointed by the President of the United States, of which board Mr. Fahey Is the chairman, is handling and Is re sponsible for the home loan banking system to which he referred, Involving the millions of dollars he has told you of disposing of and arranging for and lend ing the three hundred million dollars to be used for improvements on the homes on which the mortgages have been taken over by-the Home Owners Loan Corpora tion, - 4 Almost two billion dollars so far ad vanced on those mortgages to property owners, thereby relieving the individual property owner and bringing the addi tional relief to the communities affected. The arranging for and investment of the funds in the Federal Savings and Loan Association is another one of the respon sibilities, the creation and handling of the corporation to insure shares,in,building, and loan associations to protect' the in vestors there--constituting, men,in reality a greater financial Institution, and set up. In terms of money involved and the number of transactions carried on than has ever existed before In the history of the world. No other financial institution in money value, in the far-reaching effect of what they are doing, and In the number of transactions, there .is nothing that has ever approached the job that Is being car ried on by these five men headed by Mr. Fahey and I have never known five men who worked more honestly, faithfully, without prejudice, and without favor, and without Influence, one way or the other, to carry out their obligations to the people of this country, and-so, Mr, Fahey, we appreciate your being here. We are under great obligation to you for the message you have brought, the Informa tion you have given, and especially for your concluding remarks in which you challenged us again to renew our courage and our confidence and to go forth and do business ourselves Instead of depending too much all the time on the govern ment to do it for us. I speak that to you on behalf of my associates, and I know they are going to second by responding to you all, If so please say "Aye." (Cries of "Aye.") It- Is not possible for the' dealer to carry the many duplications; there* fore, of necessity, he must use his Judg ment. as to which of the advertised lines would best fit Into his program and then put'his'sales effort behind that particular line. Faint is an Important line dor the dealer,-even-for those-who are not ex- elusive paint dealers . such as hardware and .wall paper1 men. Even for such dealers, paint and varnish should , not be ; simply-a-side-line but the main line, war- ' ranting the best display possible-and the ' maximum sales effort. Wherever pos- slble this department should be in the charge' of a competent paint man and f where this Is not practical as In the case of the smaller store, then everything pos sible should be done to Insure the intelli gent handling of the trade by clerks who are properly schooled in the sale of paints, and varnfshes and their application. Adequate Stock Essential .The manufacturer has the right to ex pect that the dealer carry a sufficient stock to properly serve the trade; that , this stock be attractively displayed and * that the dealer be in a position to render I intelligent and courteous service to the / public. Such a stock requires a con siderable investment because the time has gone by when a large volume of business can be done on a small invest ment. It pays the dealer to carry s complete stock and to be in a position to render real service. He can afford to concen trate on the paint line and to a large degree be a paint specialist, because, handled properly, it Is the most profitable line in his store. In return for this investment and this large portion of his time the dealer ex pects all possible co-operation from the manufacturer and also reasonable sales and territorial protection. Faint is an The Dealer's Place agency line, not simply a specialty line and should be treated as an agency line, { If the dealer is to concentrate his ac* ( Chairman Peck: I don't know how you gentlemen feel about it, but seri- tivltles largely on one line ot paints and L varnishes, and it Is good business for Y him to do so, then he In turn expects a I ouBly speaking, my main object in at reasonable territory in which to operate, 1 tending this convention was to find out one which will provide a return for thef new and better ways to sell merchan dise. But instead of that, after listen ing to Mr. Fahey's talk, I find, as I am sure you do, I am going to buy a very much bigger block of this thing called . time and effort that he is putting Into It j He also expects to be relieved of illegitf-1 mate competition. There has been a tend- [ ency- on the part of some manufacturers I and jobbers to reach down and take busi* ness that really belongs to the dealer. This . the United States than we have ever is, of course, not only true in the paint j dreamed of in the past. business but also In some other lines. The t We now return to a further consid eration of our distribution outlets and distribution methods, and are particu larly fortunate to be able to present as our next speaker, Frank Pekoe, dealer rightfully resents this and is pre paring to resist it. In various parts of the country steps have been taken by or ganizations to get the co-operation of the manufacturer In eliminating this unfair practice and some headway has been As Mr. Pekoe Is unusually successful made, but much still remains to be done. as operator of two very modem hard The dealer recognizes that there Is cer ware and paint stores In the city of Cleveland, he is past president of the Ohio Hardware Association, and a very important factor in the national hardware organization who have, as tain business that he cannot handle to advantage, such for example, as large industrial users, but he does expect full protection on such business as should properly be handled by him* A great deal has been done by the , i t you know, done so much in a co paint and varnish manufacturers in the ; operative way, and as a result of splendid leadership in setting an ex ample for the purpose of helping to improve the average operators condi tion and merchandising practices, and way of simplification of lines. The dealer realizes this and appreciates the very excellent results already accomplished along this line, to the mutual advantage of both the manufacturer and dealer. He believes that there Is still room for further prog : they have done it. ress, recognizing at the same time the Mr. Pekoe will speak to us on the need for a sufficient range of finishes, subject of "The Healer's Place in the Distribution System." Mr. Pekoe, colors and sizes to properly serve the trade. Some mention should be made here too Address by Mr, Pekoe of the paint and varnish code which, I believe, Is a good one and very fair to the I am very appreciative of the honor and am delighted to have the opportunity of speaking to you this morning on a sub* ject that has always been of great inter dealer. The dealer particularly appreci ates the code requirements in connection with the dropping of colors which Is a .great help to him. est to me, namely, "The Dealer's Place in the Distribution System.*' I am happy to welcome the manufacturers' and deal ers' standpoint. The dealer, as I see it, is the keyraan in the distribution of commodities, and as far back as history goes, there-have been dealers to carry on the exchange and distribution ctf goods. This Ib a necessary function, because with our complex civilization of today, it Is no longer practical to conduct our business affairs by simple exchange, as was the case with primitive man in precivilization days. Even the Introduction of money does not solve the problem. It is neither prac tical nor economical for the manufacturer of paint In Cleveland to reach, the house wife In Louisiana who wants to redecor- - ate her breakfast set and attempt to supply her with a small can of enamel for that purpose. That is the function of the dealer, who carries a stock almost at her door and can render paint service. This Is a common illustration which could be multiplied thousands of times. The paint business fs peculiarly a deal er's business. Paint is not a simple line, consisting of a few Items. The multi The "Penny" Sale Elimination by the paint code of penny sales, I think, is also a step In the right direction. The penny sale, broadly speak ing, Is not a bona fide sale, because. If a gallon of paint, for example, Is really worth $3 at retail, 'then two gallons of that same paint cannot be sold at $3.01. The penny sale as well as various other practices of that kind are usually simply a means of merchandising cheaper prod ucts by making extravagant claims as to ..their worth. The so-called,$3 paint, there* fore, which was offered bn the basis of two gallons for $3.01 was not $3 paint at all, but a special material of low cost, made - so to provide a profit on the basis of two gallons for $3.01. In sales helps, too, probably no in dustry has done more for the dealers than the paint and varnish industry. The dealer has paid for some of these helps but most of them have been without charge. They -have been a vital Influence in greatly expanding the use of finishing , materials In this country. From my ex parlance not only as a dealer but also [ because I was at one time in the employ r' of a large paint and varnish manufac plicity of colors and sizes of packages, to turer and have represented them on the say nothing of the large number of spe road and also had active charge of one cial lines of finishing materials, make of their stores, I know the time and the dealer essential In the scheme of dis thought as well as expense that is put tribution. The average consumer is not Into sales helps by the paint manufac well posted on .the various finishes, and turer and would be totally unappreciative their application, and is constantly in if I did not give recognition where it Is need of definite information and advice due. We are at present handling the line in order to get the results that he has of a company which la unusually active in mind. Frequently, too, the consumer in promotion In the sales of their deal needs suggestions or advice when he ers, and their co-operation is Invaluable runs Into difficulty in the middle of the to us. Job or he may run short of material be These advertising and sales helps not fore he finishes, let us say, the kitchen only sell more of the particular brand ceiling, and he is In no position, or mood either, to write to Cleveland and wait for his Information or material to reach hfm a week later. The paint dealer must be alert to his responsibility. He exists -only to serve, and when he ceases to serve then there Is no longer any Justification for his ex istence. He is the buyer for hfs trading area. In many lines, to be sure, the pub that is being advertised, but also actually create more paint business in the aggre gate. People are influenced through ad- ' vertlsing to do painting and varnishing jobs that might not otherwise have been done at all, or would at least have been greatly delayed. Customers brought into . the store through this advertising to buy : paint are also customers for other lines. ; , lic to a large degree determines the buy ing for him by what we can call demand. . This Is particularly true In various lines .on which a broad public demand has been built up by advertising and sates promo tion. In many lines, however, this still does . not apply and on such Items It is up to the dealer to decide what is best suited for his particular conditions. Even In for the case of the advertised lines Use of Sales HeTps The - dealer should therefore be urged to use these selling helps to the utmost. Home dealers perhaps ao not fully appre ciate the help that is available to them, but most of them do, I believe. Some would like more elaborate features, even If they had to participate in the expense, I am In favor of suggested resale prices. The company whose line we handle issues ; . t | OIL, PAINT AND DRUG REPORTER November 14, 1934 55 a very fine resale schedule and, while taking more and more pride in their and . excessive cash discounts are now trade sales accounts. With particular i.ere1 tiltf inei :hen uiai; here' and there are dealers who make some deviation from tne card prices, the fact remains that the putting' out of a suggested retail price has gone a long way toward establishing a universal fair retail price. Before we have retail price the cards every dealer more or less estab ex- lished his own resale prices, which varies 'ortf uek considerably, Jones would with the result that Mrs. find the price of a certain : be brand of enamel to be, say 86 cents at ar- one store and $1 at another store. "This thff was not good business for either the foa*' dealer or the manufacturer and caused the the customer to lose faith. ana In putting out suggested resale prices ase it is not intended, of course, that all os- paint lines should sell at a standard or :1U- similar price. It Is recognized that there pho' are various qualities' of finishing mate its, rials and that a gallon of a certain brand . may be worth more or less than a gallon of another brand. The idea is simply ex to maintain a reasonable and fair price ant basis on the identical brand of paint. iat It is also recognized that occasionally -nd there is a need for a genuine special. ier In other words, a moderate cut for :he some special sale, or event. In such m- special cases the manufacturer can help rne the dealer by making him as favorable of' a price as possible, in case-lot quantities. 3t- Some price atmosphere 1b needed in a paint department. Merchants should not form a habit of cutting on standard mer chandise but an occasional cut on sea sonable itemB like screen enamel and roof coatings Is desirable and profitable. It is Important that the dealer to exist must have a reasonable margin, and of necessity will select a line which will provide such a margin. I have in mind now a certain brand of coffee which is very highly advertised and on which homes and their furnishings and are more Interested in the use of paints and var nishes than ever before. I am reminded of an experience that one of my friends had just a very.short time ago. This man Is district manager for a large stove manufacturing company and he was sent into a Southern territory to determine what the tobacco growers were doing with their money when they sold their tobacco crops. He mingled among the growers at the sale and ques tioned them as to just what they were going to do with their receipts. Their Ideas differed, of course, as to what they were going to do with their money but at the very head, of the llet was a desire to buy paint to paint their homes. It seemed as if everybody had neglected painting and that was one of the things that they had in mind to do when finan cially able. Next on the lfst were certain household wants such as stoves, furniture, etc. There Is no question in my mind but that we have before ue the biggest poten tial paint market of all time. Because many people were reduced down to a bare subsistence level, a tremendous amount of painting has been put oft This will afford a wonderful market for some years to come, in addition we have the added Im petus of the HOLC, the Federal housing act, and various other Federal activities, moat of which involve the use of tremen dous quantities of painting materials. The dealer should prepare himself to take care of this market, and with the manufacturer's cooperation develop It to the maximum. This means complete stocks, highly trained sales personnel and a readiness and willingness to work with the manufacturer, he in return with deal ers, in every way with the view of doing as closely as possible a l&O percent paint virtually eliminated. We have touched upon trade sales policies but-we have ac complished little with respect to trade sales protection. ' . Things That Are Needed In categorical sequence, without respect to their Importance, I direct your atten tion to the following:-- 1. There is In every metropolitan cen ter a normal market for products of our industry and therefore, it is my judgment that care should be exercised in the estab lishing of new retail outlets for the spe cific purpose that the new does not de stroy both himself and his competitor at the expense of the manufacturer. 2. Close Imitation of established brand names and pack--* 3. No definite guide to distinguish dis counts that may cs allowed to dealer and ydbber accounts. 4. No interpretation of what constitutes a trade sales account for distinction in reference to painting contractors and maintenance accounts, it should be an established custom that In no instance shall they be [sold at a prlee less than 26 percent above the net price to the smallest dealer account. The 26 percent as suggested is to be applied only to the fastest moving [merchandise and should be increased In percentage on other items In accordance with the percentage of turn over on these [items. Fairness to All We all like to take large orders and I hope that the order I have given. you is not too large. The suggestions are entirely free from bias. We know, for example, that When I suggest a minimum of 25 percent on fast moving merchandise, it is the lowest possible percentage for which a legitimate dealer could afford to e^ll. The percentage is hardly enough for a manufacturer to profitably handle direct accounts. Statistics will show that It costs the manufacturer less money to sell his goods In a wholesale way to the Jobber and dealer than in small quanti ties to the consumer. Wq must keep before us the considera tion, not so much as to what the dealer and Jobber has done to us, but what we can do for them. We cannot afford to Ignore these problems nor can we afford to delay in `finding suitable solutions. Action must ibe taken before we drive the dealer and jobber from the paint field as distributing factors. If we act prompt ly and Judiciously, we will he doing something to encourage the dealer and jobber to put sustained selling effort back of their paint business and we will be putting thousands of additional sales men to work thus furthering the sales of the products of our industry. the manufacturer Is trying to create an merchandising Job. Chairman Peck:--Now, gentlemen, extensive demand. This brand is un if you have referred to your program, popular with the dealer because it is sold on an exceedingly small margin, which Is insufficient to cover hie cost of doing business. The result is that the average dealer carries only a small stock of this particular brand and sells it only when Manufacturers' Views ou die Industry's Future you will now find that we have by this time considered every type of distribu tion with the exception of the socalled "national" manufacturer, whose problems are diverse and many in his the consumer absolutely demands it. This Is certainly not a -happy spot for this particular manufacturer. Another manufacturer of a nationally known and advertised line of canned goods who formerly followed a similar Chairman Feck; I would like to thank you for the highly constructive analysis of our problems and your ex cellent presentation of it. Gentlemen, as it is, ^ know your de composite operations. It Is therefore a great privilege to present as oiir next speaker one of the industry's most outstanding execu tives, H. A.; Melum, vice-president of ' n policy has found it to his interest to change hie retail set-up so the dealer has an opportunity to make a profit on 'his line, and Is benefiting very mucn by this change in his policy. This particular manufacturer, by the way, Is now Issuing a printed suggested price list for the dealer, who has long felt this was nec essary to satisfy dealers. sire to consider the best illustrations of each condition and problem which is now facing our Industry, for the pur pose of reaching the right conclusion, and as New York is generally consid ered to be one of the industry's tough est markets, I feel sure that you will be intensely Interested In a picture to M. J. Merkin Bet-up between a painter operating a makeshift store and a legitimate dealer handling a full line of merchandise. the Benjamin Moore Company and Vice-president of the National Faint, Varnish and Lacquer Association, who will outline' the future of the paint industry from the standpoint of the national manufacturer. Address by Mr, Melum Inefficient Clerks In general, I would say that the paint manufacturer is extending real co-opera tion to the paint dealer and it 1b' up to the dealer to make just as much as pos sible out of the selling helps that are provided. I would say that in most cases the weakest link In the chain Is the paint clerk, whose lack of knowledge and experience in handling point prospects and painting problems frequently causes him to lose a sale that should have been made, or to Bell the wrong material or give the wrong information as to its use, all of which lead* to tost sales and lost customers, I am satisfied that there Is tremendous room for improvement among the thousands and thousands of clerks who handle paint customers and that much education Is needed to over come this difficulty. I do not think that I can overstregs this point I had long reit that this was the weakest spot, but In order to fully satisfy myself I made a test case last week In Cleveland, in which I engaged a competent shopper to interview a num ber of paint dealers, and check up on their handling of prospective customers who walk into their stores. Much as I would like to do so time will not permit me to-read this report In detail. It iB an Interesting cross-section of our dealer situation. This man was provided with' money and woutd have bought had the clerk waiting on him given him any real reason for making the purchase. He called on sixteen representative stores among which were exclusive paint stores, department stores and hardware stores. Would you be surprised to learn that in. only one store-out of 16 was he given any real reason why he should buy their particu be drawn of the future of the paint Industry from the standpoint of a met ropolitan manufacturer as presented by Mr. M. J. Merkin, New York, chair man of the trade sales committee of the New York club, and a manufacturer of outstanding success. Address by Mr. Merkin Having been asked to address this con vention, 1 have picked -a subject which to my mind Is one of the most vital In our Industry -- "The Problems Facing Trade Sales In the Metropolitan Terri tory." The problems in trade sales are identical the nation -over. The solution of some of these problems may be ap plied universally. There are but few trade sales cases from San Francisco to New York that are so dissimilar that we could not find some generalized principles of ' good business practice for their solution. At least in theory, It Is very problematical that the dealer in Kansas and the dealer in Hoboken are conducting their respec tive businesses along opposite lines and thus have separate problems. This Is not an assumption on tny part; on the con trary, I have Investigated and learned of the difficulties confronting the far West ern dealers, the dealers in the Middle West, and the dealers doing business here in the East. We must concede this point-- the fundamental problems In trade Bales from the dealers' standpoint are national in scope and Identical; and they must so be considered. ' -Every city today has become a metro politan area, and there are but few manu facturers who do hot concentrate their ac tivities In these metropolitan centers. The manufacturers' concentration In metro politan areas is one of the results of de 6. Direct Selling; The lowering of the entire industry resulting from the un warranted, uneconomic and unplanned competition that exists between the manu facturer selling direct to the consumer and the dealer's insistent demand for cheaper and still cheaper products of good quality to meet this competition. The crux of many of our difficulties may be found In the solution of this final point--direct selling. The Jobber and deal er ought to be protected In some form, and there ought to bB an established trade practice in our industry whereby, if the manufacturer does business direct with the consumer, he should neverless charge a sufficient amount over his cost so that the resultant Belling price to the con sumer would be practically the same as though the consumer bought goods of equal quantity through the jobber or dealer. While there are other problems such as price-fixing, co-operative merchandising, and advertising campaigns, etc., it Is my opinion that the essential difficulties are those I have mentioned, We cannot expect this convention or ten conventions to find adequate solution, to all the problems which, for the common good of the en tire industry must be solved. Our job is not to spend time in endless debate but rather to capitalize on this opportunity, consider only the principal difficulties ana attempt to find means of corrections. Composite Views It would he extremely presumptuous and Impolltlo for me to come before you armed only with my personal beliefs for the correction of the evils as outlined. I am not sure that I could not offer my own suggestions and that these suggestions would be without merit. But I have purposely made It a point to contact other A consideration of the future of the paint industry from the standpoint of a national manufacturer suggests many items of Interest: Products, distribution, markets, business conduct Indeed, it is so comprehensive that it includes a review of these and other factors during the development of the industry over a period of many years as a background for what the future may have in store. The achievements during this development need to be considered in an attempt to gain a perspective of what the future holds. These factors are even so varied that It undoubtedly would be difficult to reach a common agreement In different opinions that; exist In the matter of their appraisement. This Is readily appreciated because of the many Interests and types of minds that exist In our industry, and the consequent differences of opinions re garding the fixing of values. We have all been concerned from In dividual standpoints with the develop ment of our own business Interests over a period of years, and, we probably have even greater: concern In this regard with the future, because of the events and experiences of the past few years and the present-day Condition of business In gen eral. All qf these Individual interests have contributed to the welfare of the Industry as a whole and have established in this way; the factors which are re sponsible for the progress of the in dustry. ; On the one hand, there are those who measure the. progress which an Industry makes solely on the dollars and cents valuation of Investment and volume of business. On the other hand, there are those who sire inclined to measure prog ress on the i baslB of the operating per formance and purpose of an Industry In lar brand of. paint; that in most stores pressed conditions. We have all witnessed manufacturers In my own and other ter meeting what the requirement of the in no attempt whatsoever was made to sell declining prices and almost all of ua have ritories. I have talked with painters and dustry should be from the standpoint of him ;when he asked for a. brand that they did not have in stock; that with attempted to meet this deficiency by in creasing our volume. It was only natural consumers. At no small personal expense the service which It renders. This lat and at & great giving up of time, X have ter point of- view, it would seem, Is the one. exception- no proprietor or clerk dis for us to turn to the larger paint markets contacted dealer organizations to get one that most appropriately can be ap played any appreciable knowledge of even in the hope of increasing turnovers. The their views. plied in taking an inventory of the prog as staple an item as outside house paint. You have all heard of, and some of you have made consumer surveys, but .how many of you have made dealer surveys to learn how well your dealers and their clerks are prepared to sell your merchan dise -and represent you in their commun ity as you would like to be represented? You may spend a lot of time and money providing window trims, .color cards, panel racks and -other sales helps to the dealer, but all that is ineffective when in - the hands of a poorly-posted dealer and his . even more poorly-posted clerks. Along this .line you might be inter consequences must now be faced. Some of us have tried to get business directly from the contractor in the hope of creating a consumer demand whereby the dealers would, of necessity, stock our merchan dise, many of u b did not even consider the dealer and sold this type of business direct. In some cases, when the demand was created we could not get paint deal ers to carry our stocks and so we created new outlets ranging from lumber yards to drug stores. When we found that it was practical for us to send out salesmen for the purpose of selling home owners, real estate agencies and other property maintenance accounts, we did so. To cite an example--in the Greater New York and Metropolitan area there are some six or seven paint dealer or ganizations. Ah have been contacted by personal visit. In New York city we have a large, well-established and Intelli gently managed group known as the Faint Dealers' Protective Association. In contacting their board of governors, I received first-hand Information that Is partly embodied In the recommendations X will offer. It Is with thfg background and my own personal knowledge of the problems, that I respectfully submit the following proposals:-- ress which pur Industry. has made over a period of. years, because surely. If It is ' applied to the future operations -of our industry, there need not he much concern as to the results In dollars and cents Investment and volume of busi ness. : To some, 'this may seem to be highly Idealistic. With, them, I would have to agree If we: were considering only what might be achieved In a short space of time, but I would have to -disagree with them in a consideration of what the ac complishments would be over the period of years which are ahead. ested In knowing that just last week too, a large manufacturer of electric bulbs had a man in our store for several days to make a survey of our store, the . way we handle our trade, and the buying habits of the consumer along his particular line. Knowledge of the merchandise being . Some of us succeeded in grasping that elusive thing called "volume," but I be lieve we will all agree that the price has been much too high. With respect to trade sales accounts, we gave ridiculous con cessions, free deals, uneconomic terms, etc. We did not create many new demands 1. New stores and outlets.--(a) A set up should be created to ascertain in ad vance the definite financial responsibility and the ability to properly merchandise products of our Industry of any one de siring to open a new store, (b) New stores shall be required to purchase a Essential Factors Therefore,, it will not be my purpose to review what has transpired over the period of years in our industry from the standpoint of dollars and cents invest ment and volume of business In estab sold is extremely vital to the success of for paint products. What we did create full tine of merchandise including all sun lishing a basis whereby we may deter i the store, because It means more satee, quicker sales and better sales. By better sales, I mean sales that result In a highly satisfied customer. Customers like to buy goods where the salesperson behind the counter knows his business, and soon place full confidence in such a store.. was a highly competitive condition within our own Industry, Discounts, Jobber pro tection, dealer protection, territorial rights, and other fundamentals of good business were absolutely Ignored. We cre ated our own condition of "A Buyer's Market" and, frankly, none of us, includ dries on penalty of not being given full trade sales discounts. 2. Manufacturers should classify their accounts and arrange selling schedules at varying discounts. (a) Maintenance accounts--real estate, etc., where paints and allied products mine what may be expected In this regard. There may.be some who could compile certain statistics from thie point of view and present a most alluring and optimistic picture, hut I am inclined rather. In considering what the future holds In store for our industry, to recognize those Necessary Qualifications ing the buyers, are getting a break. The condition of a buyer's market Is prevalent are used for the repair and general main tenance of property. factors which have contributed to the growth andr development of our industry, The paint dealer and his clerks should m every metropolitan area- There is (hi Painters* and contractors* accounts. with a full 'belief that they will play not only be qualified to answer all ordi nothing urban or rural about it Neither (c) Dealer and Jobber. a most decisive part In the course which nary questions and make recommenda Is there anything rural about the manu (d) Consumer and retail accounts. lies ahead. Consequently, I wish those tions as to the use of the products, but also be qualified to suggest new and addi tional uses for paint and various ways of using them. The American people are facturers assembled here today. We have corrected some of our own mistakes in our code of fair competition, Free deals, long term credits, unearned In no Instance shall any type of buyer falling In any of the above classifications receive a discount from the full retail list greater than the discount gtveii to factors which I believe not only have been outstanding In the past operating activities of the manufacturers of our lndustry> but also will be of such vital 56 November'14* 1934 OIL, PAINT AND DRUG REPORTER importance to the future operations of each and every manufacturer that they will determine definitely both the future Course which the Individual manufac turer will take and the future course of the industry as a whole. ; Two outstanding and important factors' are products and distribution. To some they are the huh around which all other factors revolve. To others they are two factors, of course, but only two In a group of many, we can talk about these factors in a most inclusive way, even to the point of involving many others, and, as well, the matter Of performance and purpose to which I have referred. The period of the last: two or three decades has definitely been marked with the greatest industrial development that the world has ever known from the stand point of new and improved types and kinds of commodities. This has all brought about a change in the living conditions and the hanits of people, ana the business world has b.een forced to meet the changed situation. Whether or not we are entering into: another such era is impossible to foretell, although when we stop to consider what has been afforded to us in the past' comparatively short period of years in items that .have contributed to the necessities and com fort and luxuries of life, jit seems that so many changes cannot come about again and so much cannnot happen again in such a short space of years in the future; The manufacturers in our; industry have played no small part in this, program ' through the development of new and Im proved types of products of the industry and in meeting the changed situation. This I do not need to emphasize to you in any detail. In view of these facts, it does seem desirable, howbver, to pause to consider what changes have meant to the industry, and whether or not the standards of the industry have been in fluenced in any serious way because of it all. i Development in Products There are those products that have been improved and developed, which have not only added much to the con structive development of the Individual manufacturer, but also have contributed in a conspicuous way to the construc tive growth of our industry. And there are those products which have been manufactured and offered, for sals, as new and improved materials, which have possibly rendered some kind _ 1Pro"t to certain manufacturers, but which have brought about a lowering' of standards * of quality, and which have contributed in detrimental way to the growth and development of the industry as a whole. We have witnessed an increasing amount of technical work befng done amongst the manufacturers in our in dustry, which undoubtedly; accounts for the many changes that have taken place, and we are conversant with the many new raw materials which occupy such an important part in the formation of the products of our industry,;, and which, have been manipulated in various ways, according to the purpose of the Individual technician and manufacturer. There has been the opportunity to raise standards to a higher level In. produc ing materials designed to render greater srvice, and there has been the oppor tunity to produce materials that have the appearance of Quality merchandise, but which have been lower ln> quality and construetd primarily to seli;at a price. It is interesting to observe how, over the period of years, the demand for cer tain products of our industry, in certain sections has changed from ithoee of the higher standards of quality to those of the lower standards, and how much em phasis has been put on ttye matter of only price. Much of this has no doubt come as the result of individual manu facturers having introduced at some time or other new brands of merchandise at prices and qualities lower than the pre vailing standards. Such actions may give temporary advantages to an individual manufacturer who is introducing a new brand of merchandise, but I know of no such instances where competing' manu facturers have not in a very short time met the situation, and the' final result has been that the general demand.'in these sections has been changed to the lower standards of quality and the lower . price materia!. | Advantages Are Fictitious This kind of practice has a very defi nite influence on the growth land develop ment of the Industry because the manu facturers who introduce such new brands of merchandise are surety in no perman ently changed position in regard to their competition. They have created no per manently greater sales outlet through total increased consumption, and no more units are disposed of1, by the In dustry to the trade. j They have simply reduced the dollars and cents sales volume fox? themselves and all their competitors, as well as the dollars and cents sales volume for the Industry on certain particular typea of material in those particular: sections where this practice has been Sallowed, and the public has finally been the victim of such a practice by not having procured the best products obtainable for its needs. I place emphasis on 'this kind of development because it has been a factor In the growth of the industry over a period of years that has resulted to the detriment of the manufacturer, Jobber, dealer, painter, and consumer. . As I look Into the future} of this in-, dustry, I wonder how muah has been learned from the actual experiences of the past In this respect. The discontinu ance of these kinds of practices Would mean a constructive development whfch would result not only In benefits to alt members of the industry, but also In the service .rendered to the ultimate con sumer. i The technical developments and the adoption of the many new raw materials which have come Into general usage over a period of years have also brought about tremendous Changes in the Prod ucts of the industry, which j have Influ enced painting practices in a very con spicuous Way. ; The Increased hiding qualities of paint products have reduced theI number of coats of paint which are applied on-Jobs, and": the emphasis which has been put on hastening the drying and hardening qualities' of products of the' industry has reduced the time element considerably* That the-improvements made In. hiding and drying qualities have contributed to the constructive development of the in dustry, there-certainly can be on doubt, but I wish to point out most emphatically that certain abuses have crept In with this kind of growth that do not reflect credit to the Industry. It is a. rare occasion to hear of a three or four^coat outside. job being done In these days, and even more rare to hear of a multiple-coat interior Job being done. Because of the Improvement which has been made In the products of the Industry, so many coats may not be re quired today as there were years ago, but I am sure we will all be free to ad mit that there are too many one-coat jobs done that should properly be twocoat Jobs', and too many two-coat .Jobs done that properly should he three-coat Jobs if the dobs are done In a way to render the greatest value to the consumer through the satisfactory performance or paint firms and all the stress that is put on covering and drying rather than serv ice and durability. Manufacturers' Responsibilities Thus, I could continue this discussion in making observations regarding the changes that have taken place in the products of the industry. All of these, to my mind, show very definitely the course which our industry in the develop ment of products ia taking, and outline the responsibilities of the manufacturers of this industry in Ub growth and de velopment In the future. These respon sibilities point definitely to the need ot greater emphasis, first, on the featurcoi producing only those products that will render the greatest possible service to the users of such materials, and -second, on the feature of stressing the popularity and correct use of the highest quality products in sales activities. Efforts in this direction, bn the part or all manu facturers, will surely fix a course fprthe future of the industry that will lead to a most gratifying growth and devolop- mLikewise, white we are alt familiar with the problem and experiences in the matter of products of the ln,d.uJfy f-1} recognize certain undesirable situations in this regard that we would like to see corrected, we all are familiar with the problems and experiences in the matter of distribution, and recognize certain un desirable situations in that connection which we would also like to see corrected. The word "distribution,'' is suggestive, meaningful, and -significant in its applica tion to our industry. It can be interpreted to Include the consuming market and all the phases that enter into the activities of our industry from the time the fin ished products leave the factories until they finally reach the ultimate consumers, The market for the products of our in dustry is an extensive one, and the activ ities of various agencies which have been attempting to bring about better business conditions in general have indicated,, through various surveys and compila tions a potential market for the products of our industry that Is continually being brought to our attention on the huge Bums that are available for the rehabilitation of property, together with the figures that run into the millions on the number of structures that are in want of repairs and paint, I do not think there is any need on my part to add anything to what you already know in this regard, I must admit that some of these figures are quite staggering and somewhat diffi cult to comprehend, and at times I find them even to be responsible for the sug gestion of at least a hope that before long general conditions wIH permit the in dustry to participate In a large measure of realization and accomplishment of what these figures indicate. Although, quite naturally, this kind of knowledge arouses Interest and enthusiasm on the part o all manufacturers in order that regard less of the extent to which these demands will exist each will procure at least his share of the business done, the problem of distribution in establishing sales out lets and In having the products over- the period of many yeare have quite generally looked to the jobber and dealer as the recognized channels of distribution in this regard. These outiets have, played a very conspicuous and ;important part; In. the scheme of distribution of the- products of our Industry-oveu; a period of years and will no doubt continue to,perform. . Each individual manufacturer has a very- definite and. distinct obligation of putting forth greater efforts, toward build ing up-more- effective representation, which wilt result In greater sales volume, and of properly-recognising these outlets on the basis of the function which they per form and the: service which they render. Importance of Conduct Finally, there Is- another factor which Is basic to the success of any business, because it la a dominating influence that shapes all thinking, and all activities-- business conduct Under general business conditions, such as have been, experienced for the-.past sev eral years, when every possible effort has been put forth by the individual manu facturer to maintain sales volume, it Is probably to be expected that there would be some deviation in the industry from recognized practices and-.policies in the conduct of business. It is difficult, of course, to estimate the extent of such activities in the industry. ' I am- of the opinion that some time In the future, when, more normal condi tions will again prevail in the matter of volume of business, many of the unusual activities in the Industry during the past several years, which probably at times appeared to be insurmountable problems, will gradually become corrected through the application of straight and' clear thinking, backed up by the experiences of the many years of constructive growth and development of our industry. -. During the past year we have had the experience of attempting to fix certain rules and regulations in the conduct-of the business governmental code, and we have all been reminded again of how dif ficult, if not impossible, it is to have legist* latum governing conduct, Therefore, as we look Into the years You have a wonderful set-up in your that are before-us, to what seems to hold trader sales organization, starting with promise of hn industry Increasing In Im portance because of the service) -which it is called upon to render, and increasing in Importance in the industrial -world be cause of the strong indications for Its growth and development Is there not an Individual, obligation and responsibility resting upon each member of the-Industry in regard to the standards of' business practices and polfcles which are to pre vail? Surely if each one will recognize in the service which the industry is .called upon to perform, a requirement for the highest quality products which it Is pos sible to produce, and, furthermore, if each one will recognize a competitive- relation ship with one another as manufacturers, that calls for only the highest standard of business conduct and ethics--there need not be much concern about the achieve ment of the industry in the future,.. nOr its constructive growth and development. your national' trade sales committee and coming'down to each one of the com munities with local trade sales - commit tees, and let ns-use the machinery which we-have, and discuss these'matters among the manufacturers -In Ur particular area. And -then; through, the. chairman of your local committees, let the information and the ideas and the suggestions that you have In each community filter back to, and go- into the melting pot of the na tional committee, and out of it all, as we proceed along proper lines in the development of this work, we will eventu- ' ally be ab e to plan what Mr. Peck refera to so well as' a better, a more equitable and a proper price p*ctem for this In dustry -in the future. * r. Chairman Peck: have nothing to add to Mr, Trigg's final, and splendid closing remarks, with but- one exception, And I sincerely trust that as years come and go there will be an- increasing evidence of ft greater oontributfon toward higher standards and ideals in the competitive relationship of the members of our in dustry. if such will be the experiences, that exception is merely this. That thia Is a man-built world. It may have been divinely created, and it waa, but it cer tainly Is .a. man-developed world, and If that Is true, and if we want to accom plish the opportunity that exists, and Is I am sure the future holds much in store within our. grasp, we are going to do for our industry. . It only as a result of the brain power Chairman Peck: -- Hefore we close thto session even though the hour fs late, I am quite sure that we would that is applied to our problems, and -the only way that we can get that brain power and have it applied to our problems is by your action. appreciate hearing a few closing re marks and comments from our presl dent, Mr. Trigg. If you gentlemen will go back to your respective communities, and act Instead of going back to your respective communi ties and saying "That was a good conven- Comment by Mr. Trigg *iOSi ^ will go back to your respec tive communities and either call your President Trigg:- I am going to be very brief in what I have to say. Yester day afternoon and this afternoon have been full of most interesting discussions. The program was very carefully worked out by your trade sales committee, having in mind the accomplishment of a delib erate result, namely, to lay the foundation work through the presentation of the op portunities for business for all of us, Then, through a consideration of the Job ber's side, the dealer's side, and finally the manufacturer's sid, in this situation, in order that we might have before us today, yesterday and today* And as we trade sales meetings together, or see that It Is done, I want to tell you that the slogan for your next convention can be no* Helping a great industry move for ward, hut "Helping a great industry speed forward/? And that is what we want. - And so we. will now close this meeting with thanks to you, for your attention, and your consideration, and your thoughts, with ft-.further and final comment only, to the effect that Mr. Trigg has certain remarks that he wishes to make regard ing this afternoon's session. Thank you, and good. luck. go home and- get reports of these ad dresses, and these meetings, and study Appreciation for Committee them over, considering the facts that have been presented, which come from the most authentic and dependable sources avail able, then to turn over in our minds, whether the direction in which we have been drifting for the last few years Is right, or whether we ought to stop and check up a little bit on where we arc going, and maybe correct our course to some extent at least for the future. Ai K-StoMon: I think it would be moat unfortunate If we did not express today--and I think in making this state ment I am expressing the sentiments of aU--<iur appreciation for the sincere work wli?T y02? ana 3rour committee have done Now that the seseions have come to a dose, I think they vindicate the Judgment and the far-reachiner thought of our Presldent in shifting up these activities into the I want to say to you men that from Industrial and trade sales activities. the trade sales standpoint, some of the things that have crept into our merchan dising methods, such as the question of direct selling, the question of making job ber's prices to dealers who are not en titled to it, the question of making prices to consumers in many cases, maintenance accounts, and so forth, as low or lower I have Just this one suggestion and this r,r:l,bo toone statement to make. I believe it etteisr follow through and do the things which you ask us to do. if there was provided for us and made pos sible through the reporting services, or front the reporting services, bnt through the national association office, a copy of than the dealer's price--all of those things t?faoi.SrSS,eie??,Jsa wo would follow we must realize are gradually tearing the plan which Is used in some associations down the established distributing sys whereby members may purchase from tem, so far as paint and. Varnish are setwlees1011 a topy of the reporting concerned in this country, and if per sisted in can only result in the eventual It Is true that we get some of these driving out of the distributing field of ffte^5;?a<thr?UEh the trade press, but after those factors, the jobbers and dealers, alt that Is piecemeal. that are so Important to the continuance If we could get ft all in one hook or of our volume of business. one place, -I believe there would be a On the other hand, if by reasoning the thing out, if .by considering .the facts demand for that, and it would be- for ua more easily to carry through. that have -been presented, and . that we know do exist, If we can so shape our Thank you very much; Mr, Sheldon. Your suggestion is splendid; course for the future that we recognize jd these speeches can be secured, and the legitimate distributing sources, that we put them in a position where, based upon: the services which they render, they are going to have a renewed enthusiasm and courage and determination . to go ahead presenting their paint departments, giving' more attention to- that side of their business, it Is going to result in our putting back to work as salesmen for the products of our1 Industry literally thousands of dealers and Jobbers through wiu be obtainable In the way you suggest* S3ud as a matter of fact If in the various trade sales meetings that are held In the different localities of the United States, if an orgMiised program is arranged for a series, of meetings, so that each, one of tne subjects can be taken up and 41bcuS6d^separately and fully, or several of them within an evening, I am sure that you gentlemen in this great industry of ours are going to. come back with recom mendations that will really help us scat out the country, wlw- today, many of some place. Thank you very muotu e them at least, are somewhat passive In their attitude toward the promotion of their paint departments. Now we have a wonderful field of op portunity. We have had it portrayed here to us. The business Is watting for us to go out and get It, but the manu facturers of this country cannot hire people enough to go to the final' con sumer, go': down to the property owner in every community; We have got to have the set-ups in the cities and towns throughout this country, through our Job bers and dealers, to go after that busi *uFTiB!Sent Tri8reL 1 want to speak about thia afternoon. This afternoon will be the last session. It will not be a long session . B We will have Mr. Rlohberg here, ..and as you know this afternoon, according to the newspapers, In. the last few days? he oas become even of greater Importance in SSh,mSE"rt,*SM "ft Probably-being the ,-TVUmber, One Man.'? now so far as the administration is concerned, next to the President of the United States. He is a busy man. He Is working, on a very tight schedule. Mr. Hlchberg will be here at ness with a fine-tooth comb,' to go down two o clock, or Just as quickly after two to the property owner and solicit the as is possible for him to get here. He business and cash In on the possibilities nwtf-ke-slightly delayed, bnt I want' to that exist and come back! to us with a register that hour of two o'clock with you volume of business that .will be put Into so^that we will air be here and tell the our plants*. . otber people to be here,' because we want And so' the appeal that we are making to this industry Is to consider-this situa t glyo Mr, Hlchberg the best audience we possibly can.- tion, to recognize the importance of the Ms. Rlchberg will have a message to distribution, the distributing factors that we have, and let us so shape our course give to us that will Interest everybody and we want to show him our interest fn hie that we are going to make it possible for all of them to continue In the paint busi coming here by having everyone on the Job, ness. And we are going to make It at tractive for them, to put more of their time and effort and thought Into the paint side of their business rather than to continue to consider It as too much of a side line. Now all of this discussion, and what we have done for the last two sessions, yesterday and today, is to lay the founda tion work for that. ' And then, too, we need you because thore are certain* amendments to the by laws and constitution which will be pre sented at this time, that is, at the after noon session, certain parts of which re quire a three-quarters vote of the associa tion and we need the attendance here to give that to us,, so please, men, be here fl-f (wo o'clock* LThe session was adjourned at 1 ;00 p.raO Final Session--Friday Afternoon [The final session of the convention was opened at 2:30. p.m., November 2, President Trigg presldlng.l . President Trigg: :"We will please come to order. ' , The first subject on this afternoon's program will be the report of the com mittee of constitution- atid. by-laws by Mr. Howard. 1 Action on Constitation and By-Laws H.. M, Howard: I hope to be through long before Mr, Rlchberg- gets here, so If you will bear with me, 2 will try to be OIL, PAINT AND DRUG REPORTER November 14, 1934 57 as expeditious and quick as possible on this dry subject You remember at the preliminary re port I announced that the amendments along with the present forms had been printed, and ask you to take copies of them, and I feel certain that you have all been spending many hours seeing that every "t" was crossed and every "1 dot ted, and probably given up social activ ities' to do it, so we come fully prepared, . Seriously speaking, although I don't want to read every section, X know you don't want to have me do it, we have given a great deal of consideration to the changes and in co-operation with the Washington office they have been very seriously considered. , With your permission I will not read any that simply change the language and do not change the import, but if you want me to read it and doubt whether I am giving it to you as it is printed, speak up, (Mr. Howard read the report of the committee. See page 18.) President Trigg: We will continue with the reading of the report, . Mr, Howard: Article III, section 5. The old form sets for the election of a general manager. Inasmuch as we now hav.e no general manager on our set-up, the amendment eliminates that section. X move the adoption, Mr. President, . President Trigg: Is there any objection? If not, all those in favor will please say "aye"; it Is adopted. (Mr. Howard continued the reading of the report through section 14, executive committee meetings.) Elliot S. Phillips: I have a question to raise in conection with that. May I ask the committee why they felt that It was necessary for the executive committee to meet right after the con vention, or within two weeks of the time? Why could that not be at the call of the president, as well? Mr. Howard: The old form reads that they shall meet immediately after the convention, and we have stretched that out to two weeks. I understand that Is for organization purposes. . ' Now, it is essential that the organiza tion should be put into operation as soon as possible. It was too quick right after the convention, so we thought .two weeks made it mandatory to do it within that time, but gave ample time for it to be done. Mr. Phillips: I know it is to be changed, and I am familiar with it, but we are Just wondering about the fact of whether we couldn't be a little more general on that, and leave it to the call of the presi dent. That is all. I would like to make such a motion.. President Trigg: If there Is no objec tion,' that will be changed to read that the executive committee shall meet im mediately following the convention, or at the call of the president, for organization purposes. Mr. Phillips: That is the point I am making. President Trigg: That is an amendment and if there is no objection, it is ap proved, . Mr. Howard; Those are all of the changes in the constitution. In order to make this legal, it calls for a vote on it all. President Trigg:.Now you vote on the whole thing. Mr. Howard: I move Its adoption. (The motion was seconded,) President Trigg: The motion has been made that we adopt all of these amend ments to the constitution. All In favor will pleaae say "aye"; contrary ''nay." It Is adopted. . We will now have the reading of the report of the by-laws committee. ,, (Mr- Howard read 'the changes In the by-lawa.) Mr. Howard: I move the adoption of the report, ` President Trigg: Is there a second to that motion? (The motion was seconded.) President Trigg: Unless there is some objection, the motion is carried and the report is adopted. Mr. Phillips has a matter to bring before the meeting. . Membership for Wholesalers Mr. Phillips: I have a resolution to present to this convention .which was drawn up. from yesterday morning, to be presented today. This was drawn up very carefully by our corporation counsel, and Mr. Trigg and a lot of the members. It concerns a matter that Is of very great importance to this asso ciation, and to the industry. k The matter is something that the ex ecutive committee hasn't had time enough yet to give a very great con sideration to, so in presenting this resolution, we are doing it, and asking you to give us a certain authority to go into the situation involved, and then we expect to come back to this con vention next year and we have made up our minds what is to be done, and get your approval first. . So if you will bear that in mind while I am reading this resolution we will do that, . "Whereas, the executive committee of the national wholesale Paint Association has proposed that the members of such asso ciation be admitted directly Into the mem bership of the National Paint* Varnish and Lacquer Association, Inc., and that a division within this association he created for such members; and Whereas, definite consideration and action on such proposal of the wholesale association must be given prior' to the next annual meeting of the National Wholesale Faint Association in February, 1935; be it . .; . Resolved: That this matter be referred to the executive committee for considera tion, and If said committee deems such action advisable, it Is hereby authorized and empowerd to accept the proposal of the National Wholesale Paint Association and make such arrangements on behalf of tht* association as may appear neces sary and appropriate. Now I believe every one of you here realizes just as well an I do that the paint distributor Is certainly a very, very vital part Of our industry, and this la a definite proposal from the dis tributors association to come into our association, as a division, .operating under our constitution and by-laws, our rules and regult&ions and be a member of the whole paint industry family, and I offer it to you with that thought in mind, Mr. Howard: I would like to second that. President Trigg: Is there any dis cussion? Are you ready for the ques tion. All in favor please signify by saying "aye," contrary "no." It is carried. Simplification R, W. Elton: There are two com mittee reports containing recommen dations. The report of the simplifica tion committee. I shall not read the report as It is printed. (The printed report was as follows.) In view of the code for the Industry and the program for the committee as deter mined last year to devote this year to complete adherence to the simplification program as contained In the code, your committee has taken no action toward the development, of new recommedations, al though they have co-operated with the code authority in the interpretation and smoothing out of certain phases of the simplification program. . One specific problem has been under consideration, namely, the possibility of limiting the number of colors In lacquer and synthetic enamels to be distributed among jobbers and automobile reflniahers to fifty shades. It Is, of course, apparent to all manu facturers handling this class of goods that there is a great deal of loss, obso lescence, etc,, In dying to.supply jobbers and reflnlshere with all shades they'may ask for as is being done by many today, and certainty if this waste of the industry could be eliminated. It would be good for everyone concerned. However, we are confronted with the problem that automo bile manufacturers use many hundreds of different shades of color, and that many of them, either through their service de partments or their demands upon their supplying manufacturer, insist that these colors be available to their distributors and dealers. It, therefore, seems to your committee that to try to remedy this situation through simplification would mean in effect that we were trying to dictate to the automobile manufacturer the number of colors available for his use. After due consideration, your committee finds It impossible to render a conclusive decision on this proposal. We, therefore, have referred the matter to t,-,e natuuvit trudo sales committee for their considera tion end recommendaMone to the Incom ing committee on simplification. It also recommends to the new commit tee' that they consider clarftcatlonn a)id revisions of the present simplification pro gram. As an example, Item No. 1, A and B, provides for no two and three-pound cans in any line, which means there Is nothing to prohibit 2%, 3 Vi and 4-pound cans, and this same thought could be car ried to many other items in various sized detainers. It la believed that by a change in wording, discrepancies of this kind could be cleared up. In addition to this, there should be some provision to take care of paste products, such as lead In oil, on which subject there has been considerable correspondence be tween your chairman and the Department of Commerce. Mr. Elton: The committee recom mends the approval of the recommen dation. President Trigg: The chairman rec ognizes a motion to approve. All in favor pleaae say "aye," contrary "no." Tt is adopted. Trademarks Mr. Elton: The report of the trade marks committee comes next. Mr. Elton read excerpts from the committee's printed report which was as follows:-- The past year has. witnessed the con tinued activity in your trademark bu reau as a most useful ' adjunct of the National Faint. Varnish and Lacquer Association. The constructive service rendered to manufacturers in the in dustry by the bureau Is now recognized as of inestimable value to the industry. During the past year your trademark committee addressed a letter to all manu facturers in the Industry, inviting them to list with the bureau all trademarks or brand-names recently adopted by them; this resulted in an Influx of ap proximately bo o new names of which we -did not previously have any record. In addition, the bureau subscribes to a service-of the United-States Patent Of fice, whereby we procure copies of gov ernmental registrations pertaining to our Industry. These marks are also made a part of our file records. . Thus, it wilt be readily seen that we endeavor In every way possible to keep our .records right up to the minute eo that when any one wishes to know whether a certain mark Is In use, we will be able to consult the most authentic and complete information that Is possible. . There is no other source through-which manufacturers In our Industry can obtain this information, other than In the trade mark bureau of your association.' . Your committee, we are sure, does not need* to impress upon members the great importance to them of. always . availing themselves of the records and services of the bureau, and yet we always .try to publicize Its facilities in every way pos sible, so that they will be a constant reminder of the fact that the bureau's records are always available* whenever occasion arises for consultation. We now have a record of about 25,000 trademarks used in the industry and this Includes all United States Patent Office registrations. This list represents the most complete record anywhere to be found for trademarks In our industry, so every one should feel free to use them whenever contemplating the adoption of a new name, and, after the name has been selected, by all means see that the bureau Is advised of Its use. Time and again the bureau has been instrumental in averting the adoption of Infringing names, saving the infringer. In many instances, hundreds of. dollars which he would otherwise spend through Innocent selection. The likelihood of In fringement can he very greatly cur tailed if this preliminary precaution Is always taken before a mark is chosen. In addition to this fundamental serv ice, the bureau continues to make known to members all marks which have been Charles J. Caspar Chairman on Trademarks passed for registration in the United States Patent Office through the medium of the association's publication--"The Open Door," Thus, our members are in position to protest the granting of any registration which they feel is infringing on their marks. Public notice Is also given in "The Open Door" to marks which have been registered in the trademark bureau of the association. Notices of Expirations Another service of the bureau is to ad vise members of tradmarks which they have registered in the United States Patent Office, which expire. A notice Is sent to such a member In order that the marks may be registered and his rights and ownership of the name duly pro tected. These supplementary functions of the bureau have proven of great worth to members and they will be continued In the future. When your trademark committee was appointed this year, an Investigation was conducted Into the services of the bureau to the industry, and, after surveying them, your committee Is of the opinion that they.are of inestimable value and as such should be maintained. We believe, however, that It is pos sible to simplify at least one phase of the bureau's work, and that is in con nection with the report service, whereby all Information pertaining to same or similar marks Is noted. In the past,' when theBe reports have been written, an endeavor was made to make it as inclusive aB possible. With the many manifold activities now engaging the attention of the associa tion's staff, it has not been possible at all times to maintain promptness of serv ice to the members asking for the re ports, due to the fact that at certain times during the year the applications for the reports are quite heavy. As can be appreciated, promptness of service is essential if the manufacturers are to pro ceed In the matter of the selection of a proper name. . Often these reports contain two and three pages of typewritten matter, and your committee is of the opinion that the recipients of them do not require such complete detail with respect to some names which might be considered irrele vant. With those in charge of the work at association headquarters having other functions to perform, In addition to that of the trademark bureau, It appeared de sirable to simplify the details by briefing the reports to the extent of giving full and complete information with respect to same or similar marks, and merely men tioning that other somewhat similar names are used--and so list them--and about which more detailed Information may be secured. Your trademark committee submitted this recommendation to the executive committee of the association--in accord ance with the provisions of the by-laws ' --with the result that this procedure was approved. Therefore, begining with the new association year, this modified form of report service will be instituted. In this connection, however, it should be pointed out that the new procedure does not contemplate any change in issuing the recording certificate itself, as your committee Is of the belief that this Is an essential feature of the bureau's serv ices, and as such should be continued. At this time we should like to record our appreciation , of the editorials and news releases published' by the trade papers of the industry; their assistance In publicizing the bureau's activities is keenly appreciated and has been largely instrumental in bringing the bureau's services to the attention, of manufac turers in the industry. . . New Supplement to Book The latest published trademark direc tory of the association comprises the 1927 trademark book. Wo did issue the 1929 and 1932 supplements to the 1927 edition, but the supply of both supplements Is now entirely exhausted. Your committee Is of the opinion that It will not be necessary to issue another complete trademark directory (combining the 1927, 1929 ' and 1932 issues), but we are of the opinion that a new supplement should be issued in order to brfug these published lists iup to date. There is a generous demand for these lists, as, in many instances, manufac turers in the, industry desire to have copies before them in order to make a preliminary search In the selection of a trademark, and also for reference in or der to determine who manufactures a certain product in the industry. Therefore, your trademark committee recommends that another supplement be issued to the 1927 trademark.book, com bining therelnl Information contained in the present 1629 and 1932 supplements, together with marks which have come to our attention Since the latter edition was published, thiis bringing our list up to date. ; We believe this will serve its purpose, and it appears to your committee that this is the most expeditious and the least expensive w&j "in which to handle it. There Is an ample supply of the 1927 trademarks books on handjto last another year or two, at the least, ' , Your committee would once again like to place as much emphasis as possible on the urgent necessity of every mem ber of .the industry writing to the trade mark bureau at association headquarters when the * selection of a new name is under consideration, for. In so doing, members are I not only protecting their own interests--in choosing a mark which is distinctive j from others--but they are taking.cognizance of the rights of owner ship of others to a trademark which should not be: Infringed upon. During the (year association headquar ters was visited by Messrs. Edgerly and Murray and the chairman, at which time your trademark bureau was inspected,. arid this report would not be complete and the chairman would be remiss in appreciation, did he not here make refer ence to the splendid system and records maintained at association headquarters under the management and supervision of Robert K. Shannon, and it Is your committee's desire here to pay tribute to Mr. Shannon for the complete and readily accessible records he has maintained, and for. the courtesy and promptness with which he has always handled all regis trations ana correspondence In connec tion with the bureau. Mr. Shannon has supervised thje bureau, for a great many years, and has demonstrated, by ms re search work [in the bureau and his re ports to our. members, that he nas a splendid grasp of trademark matters, and we arc fortunate Indeed to have this de partment under his able and enthusiastic management,; President Trigg: Is there a motion to approve that recommendation? A motion has been made. All in favor please say "aye," contrary "no." It is carried. (Other reports presented to the con vention in pamphlet form were the following.) Arbitration There has been submitted to your com mittee on arbitration, during the year just closed, only one case for arbitration, FL P. Cheesman Chairman on Arbitration and we hope to be able to decide this case during the time the convention Is In session at Washington, but at the present time we have no report to render on it. Chamber of Commerce A representative of your committee at tended the 'twenty-second annual meet ing of the Chamber of Commerce of the United States in Washington, May 1 to 4, 1934. ' The first :day of the convention was practically- taken up in connection with' the nomination and election of the na tional directors. Our association was only Interested indirectly In the election of two directors, they being friends of some member of our Industry, and I am glad to say that both gentlemen were elected, namely, Major T. J. Strickler, Kansas City, Mo., and William P. Witherow, > 58 November 14, 1934 OIL, PAINT AND DRUG REPORTER Pittsburgh. Other duties for that day Were merely routine. Our industry had no particular pro gram to offer at this convention, It seems as though an industry as extensive as ours should have some problems of national Importance to present at these conventions and feel that consideration should be given this line of thought be fore the United States chamber's next meeting In 1935. Your director attended as many of the round table conferences as possible, and most of these had to do with the recov ery program. found in many Instances an undercurrent of feeling against some of the government's activities In connec tion with the industrial recovery program. The subjects discussed having particular bearing on our industry j were "Refln- ancing Home Ownership,J*i "Transporta tion," etc. i In view of the iacK of any definite pro gram for your national councillor, his duties are extremely limited, consisting principally of sitting in at the various meetings and absorbing, as far as possible, the trend of conditions existing in the various lines of industry, j It would be useless to make a detailed account' of such meetings in this report as each sub ject was given wide publicity through the dally press at the time, i i Membership Your national membership committee is pleased to report that it has gained the goal for which It planned; and worked. When entrusted, at the beginning of the thirty-fifth association year, with this most important duty, the quota set for us by our leader and president, Mr. Trigg, of 750 members, seemed like an impossible task. :. When it is taken Into consideration that at no time in the past had the member ship of the old association exceeded much more than 200, it must be [conceded that your committee had Its work cut out for it. . We- realized, however, that the thing most needed was a powerful organiza tion in both members and; personnel, in order to make It possible for our great industry to carry forward a constructive program and to accomplish the things which the clear vision of' oiir national leader had in mind, ! We realized that our organization was fairly strong numerically in certain sec tions, but woefully weak in others. Our plan was to enlist new members from all parts of the United States and Canada, and to have a national associa tion in fact as well as name. Our national membership committee was organized with subcommittees, each headed by a local chairman. These Were augmented by other members, who were to take care of various raw material groups. A great membership drive was then launched, A cup was offered1 by our presi dent to be known as the President's Cup, to be awarded to the subcommittee mak ing the best showing. Friendly and good- natured rivalry to win the cup was in evidence, and intense interest was main tained throughout the drive. ..E"2Lwas ,a ?aIes *obt biit we had a product to sell--"membership In the National Paint, VarhishUnd Lacquer Association"--and in selling that to our Prospects we were sure to receive their lasting gratitude. ; As your committee now gives an ac count of their stewardship, It is our pleas ure to report a great united industry, numbering 750 members, as covered by the attached list. : y New states, new cities and towns are now represented which were never repre sented before. Most States have fallen in line with their quota of members, and what time and effort your committee has spent is fully compensated for ip seeing our great industry- moving forward to still greater accomplishments, : . In dosing oar report, we! wish to ex- s)noer* appreciation for tho JESMJS?*1 sui)prt ?lvTM or committee by and edftortaS8 bth tl,elrfewa article! appreciate the splendid co-operation of the staff at headquarters : the sugees- tlons and help of other members of our national association; and last, but not least, those In our various offices, our secretaries, who have so loyally and en thusiastically helped in this Work But our task has not yet begun. Now that We have reached our goal, our association must retain this member ship and press on to a still larger en rollment, We must keep alive enthusiasm, Interest, and drive home the value of a membership in our association. To this end, the Incoming membership committee should thoroughly canvass the prospect lists furnished by 'our national headquarters and be on the alert for new comers in our industry. i Today it may be truthfully stated that the National Paint, Varnish land Lacquer Association truly represents pur industry, but our position can be further streng thened, and to this end we feel that very definite plans should be made by the in-' coming committee to work toward a goal of 1,000 members. ! In addition to the personal efforts of this committee, we recommend that asso ciation headquarters continue their direct mall campaign to every eligible concern Cor membership in the national associa tion. May your chairman be permitted to add that it has been one of the finest ex periences of his life to serve -as chairman of a committee composed of men who have given so generously of their time and tal ents In the interests of our great Industry, Membership Showing, October 15, 1934 New England . Local committee and New Old chairman-- members, members, Boston, Betishaw Smith, jr.... . 87 S Eastern Zone 1 Baltimore, Burch C. Atbey.... ' 5 Buffalo, H. Vernon Smith,.,,.-! 7 New York, Maitland Dwight.., 334 Philadelphia', T. A. Williamson. ; 73 Pittsburgh, A, E. Daum............... ij.0 Rochester, George Anderson..., .1 Syracuse, Howard Williams.... 1 4 Washington ........................................ : 3 5 8 24 10 5 .. 1 .. Southern Zone Atlanta, W. A. Woodmansee,.. Birmingham, Vf. Aj. Currie___ Louisville. Sevier Bonnie........... Memphis, M. G. Heins................. New Orleans, M. G. Smart____ Richmond, Fred Gunn, Jr........... Savannah, A, A. Stevens......... South Carolina................................. Florida .........................................,,, West Virginia ............................. North Carolina ........................ Mississippi ........................................ Texas territory, K. J. Kuhn.... 8 1 12 8 7 ti 2 2 u 3 I 1 17 Central Zone Chicago, Dwight Bennett........... 42 Cincinnati, A. F. Winstel...... 7 Cleveland. S. C. Wagenman.... 30 Columbus, H. J. Schnorbuo.... it Dayton; D. J, Kern................................2 . Detroit. Thurlow J, Campbell... IS Indianapolis, H. G. Sargent.... 14 Kansas City, H. V. Higgins..., T Milwaukee. G. A. Mohns........... 11 Minneapolis, H. L. Wakefield.., 7 Omaha, G. 9. Nelson................ 4 St. Louis, Oliver J. Biddle......... 31 Toledo, J, G. Ludey.............. 4 Idaho ..................................................... 1 Iowa ................ 2 South Dakota,............................ 1 . ' 'Western Zone Seattle. D. M. Schindler.,,,...- .8 Loo Angeles, 9. C. McClellan,, 28 San iFratielaco, Robert S. Beall. .25} Denver, R. J. Foley.................. 3 Spokane. W. C. Moore............... 3 ForttEnd, Ralph M, Grady......... 6 Salt Lake City, B. W. Butler... 1 Montana ........................................... 1 ' Canada, W, A. Chown................... 4 Totals ........./,.................................. 622 Total.......................... 759 .. .. 7 .. 8 1 .. 2 1 ., ., .. 2 10 5 12 3 2 8 2 8 S 6 5 & .. .. .. .. .. 3 & 2 .. 3 - .. 137 Memorials It is with a feeling of profound sorrow that the memorial committee records here the names of those who have departed from our midst within the year. They were men whose lives and activities had been closely related to the upbuilding of the paint Industry and of our association, some over a long period of years, Bach filled an Important niche in the general scheme of life and of business, and each gave freely of his talents that all might prosper. They will be missed in their homes, their communities and from our meetings, but they have left behind them a heritage of leadership and fidelity in business principles and practices, which must be an Inspiration to all who come after them. Acker, Fred C. Athey, C. M. Ayers, Charles p. Barber, W. H. Bautz, Robert A. Behr, Herman Binks, Joseph Bohn, William B. Bone, Clifford C. Botts, James M- Eradlee, John R. Brodrick, Alfred H. Brown, Addison Burnside, Frederick W. CassHly, Louis V. Cooledge, Edwin Coyne, William Cudding, Harry A. Dannebaum, Sylvester R. Dickens, Earl S. Dunne, Frank W. Bakins, John B. Fortmeyer, Fred R. Hamilton, Richard E. Holssapfel, Charles A. Jagle, George W. January, James A. Jordan, Harry F- . Keieker, Edward W. Lersner, .Richard H. McCarthy, John A. McClintock, George C. Mackenzie, George W. MacNiohol, Charles . Maxiion, Lawrence M, Marks, Marcus M. Metz,. Herman A. Munro, Albert E, Nance, T, Howard Nice, Eugene E. Parker, Ira Parker, John Farr, William J. Patton, Ludington Rainey, Henry'S, Rheinberger, Edward F. Rice, William J. Riley,- Marlon A. Rockelman, Edward J, Rosevear, Charles R. Scheel, William H. Schumacher, Emil C. .Sheffield, George Vernon Shirley, Charles M. Smith, Sinclair ' Stack, Thomas Marshall Steele, Mark Stewart, Henry C. Sullivan, Thomas V. Suydara, M Bedell Thompson, Milton S. Tobey, Elmer Everett . Westerbeck, Fred L. Wood, Lewis H, ` Tariff The outstanding development during the past year in regard to tariffs was the passage by Congress of a law giving the President the power to negotiate recipro cal tariff agreements with foreign coun tries, and the machinery has been set up to carry out the alms of the administra tion. The act transfers the tariff-making power entirely to the executive branch of the government, so that the President, with the aid of the various government departments, may proceed to a tariff mak ing policy. Co-operating with the Presi dent In this work is a group known as the Executive Commercial Policy Com- ' Lawrence Phillips Chairman on Tariff mlttee, presided over by Francis B. Sayre, Assistant Secretary of State, and consist ing of representatives of the folowing government organizations: State, Com merce, Agriculture, and Treasury depart ments ; Office of the Special Adviser to the President, George Peek; Agricultural Ad justment Administration; National Recov ery Administration; and Tariff Commis sion. This committee shapes the general policies to be followed in the negotiation of trade agreements and sits as a' court of appeal in the settlement of particular issues which may arise. Responsible to this committee, and functioning under its general direction, ie another committee known as the Foreign Trade Committee; which performs the actual work of con structing the text of each trade agree ment. This committee, presided over by Henry F. Grady, Is likewise -composed of representatives of the various departments of the government, each one chosen for hia qualifications as a technical expert. A third committe, known as the Com mittee for Reciprocity Information, and, presided over by Thomas. Walker Page of the Tariff Commission, is also made up of a membership drawn from the vari ous government departments. This com mittee may be referred to as the hear ings committee. It is the group to which business men, whether importers or ex porters, may come and present their ar guments as to the treatment which shall be given to the various commodities in which they are interested. In addition to the three standing com mittees referred to above, there will be other special and temporary committees, known as country committees, each one specializing on a detailed analysis of our economic relationships with Its assigned country. For example, one committee . may give all of its time to a study of our trade relations with Brazil, in order that accurate and minute information on all pertinent matters may be made quickly available to the hearings com mittee and to the Foreign Trade Com mittee. Another committee will be doing the same work for Belgium, another for Sweden, and so on. Reciprocal Procedure The procedure to be' followed is as- fol lows:--The first step takes the form otf what is known as exploratory conversa tion, carried on through the diplomatic representatives of the State Department, with the co-operation of the foreign serv ice officers Of the Department of' Com merce, in the particular country under consideration. Based on these -conversa tions,. a tentative draft of a proposed agreement Is prepared. At this stage, the appropriate country committee makes an intensive study and reports Its findings to - the'Foreign Trade Committee 'When It becomes evident that the negotiations are likely to be successful, the President will make a public announcement, formally notifying American business men of tho intention to negotiate a treaty. Business enterprises .presumably Interested 'in the outcome of the negotiations are then free to appear. before the hearings com mittee and plead their special interests, either in the form of written briefs or by oral presentation.. From the hearings committee, these representations are passed on to 'the Committee on Foreign Trade Agreements, to supplement the in formation . they have already received from the special country committees and such other sources as they have drawn upon, ` After the hearings have been completed and the Foreign Trade Committee has embodied in the treaty auoh provisions as are acceptable to Itself and to the foreign nation concerned, the agreement Is ready for the-final approval of the Executive Commercial ' Policy Committee, after which It awaits the decision of the Presi dent. - It should, however, be pointed out that the hearings referred to above are not public. In order to be represented, it is necessary to follow the notices in the press. When It Is stated in the press that negotiations are under way with any individual country, a brief should be sent immediately to the Committee for Reci procity Information, presenting any ar guments for maintenance or Increase at the existing tariffs on the products or our industry. Accompanying the brief, a request may be made for permission to attend the hearings. This request must be made at least three days before the hearing is to be held. At the hearing, the written brief may be supplemented by further arguments either in written or oral form. * Unfortunately, the press notices regard ing proposed hearings do not specify the products to be considered but only the country with which negotiations are un der way. Therefore, it must be merely assumed that some paint product will be discussed, and : if any information is available as to why the present duties are inadequate, information to this effeot should be prepared in advance. The brief to be presented must follow the form and manner- prescribed, as follows:-- . '`Form and Manner of Presentation, Information and views shall be presented to the Chairman, Committee for Reciproc- . tty Information, United States Tariff Com, mission, Washington, D. C., in the form of written statements. Such statements shall be duly sworn to and shall be either typewritten or printed, In sextuplet, ana each of the six copies shall be legible. If the statements relate to duties or other trade restrictions affecting more than one product, each product must be treaced separately and statements with respect to each product shall begin on a separate . page. '^Supplementary Oral Presentation. Sup plementary views may be presented orally only upon application to the Chairman and after written statements have been submitted in proper form. Such applica tion may be made in writing to the Chair man and shall set forth concisely the rea W. 5 sons therefor. Also the application shall state whether it is desired to present sup plementary information and views con cerning tariffs or other trade restrictions of the foreign country with respect to which the Secretary of State has given public notice of intention to negotiate a foreign trade agreement or concerning tariffs or other trade restrictions of the United States. The Committee will con sider the application and inform the appli cant whether or not It is approved. "Oral statements shall be made under oath, "Any oral presentation of views here under shall not be In the nature of a public hearing, , ri "Time Limitations. The time limits within which information and views in writing and applications for supplemental oral presentation of views shall be sub mitted, as well as the time for supple mental oral presentation of information and views, will be prescribed by the Com mittee in connection with each proposed , foreign trade agreement, and will be made public in behalf of the Committee by the Secretary of State simultaneously with his ' notice of the intention to negotiate each proposed agreement/' Treaty With Cuba The first hearing under the new law was held on July 23, 1934, and was in connection with the reciprocal agreement being negotiated with the Republic of Cuba. Through correspondence by in terested members of-our industry and by the secretary of the tariff committee, the following points have been accomplished in the way of reducing tariffs on United States manufactures of paints, vaml&hes, lacquers and enamels entering Cuba: 1. Circular No. 11. issued during the Machado regime, has been cancelled, with the result that paints as we know them are now permitted to enter Cuba under the paint classification and are not being assessed as. enamels where it Is found that a small amount of resin or varnish is present. , 2. Oil enamels and varnish enamels, formerly classified as fine enamels, are now classified as paint enamels and are payfng the same rate of duty as ordinary ready mixed paints, , 3. The'United States has been granted a preferential duty which Is 30 percent lower than the general tariff, so that today we are paying at the rate of 57 per 100' kilos for paints and enamels as op posed to 517,60 per 100 kUos formerly assessed. Representatives In Havana of United States manufacturers of paints, varnishes, lacquers and enamels are now endeavor ing to obtain a preferential of 50 percent with good prospects of success. In preparation for further hearings to be held, the secretary of the tariff com mittee has obtained from the Tariff Com mission and from the Department of Commerce schedules of the present import duties of the United States on paint varnish and lacquer materials, and of similar duties levied by the principal for eign- countries on such products Imported into those countries. These schedules are available to members of the industry who may desire to use them as bases for the preparation of briefs: ... .' Thu committee on artists* canvas has prepared and filed a brief with the Tariff Commission, protesting against any de crease in duties on Incoming shipments of prepared artists' canvas. It was clearly shown that the'difference in duty between prepared artists* canvas and the raw linen necessary to make It was only 5 percent Any reduction would mean the elimination of the artists* canvas Industry In this country. Unprepared linen which -Is abso lutely essential In the manufacture, of artists* canvas Is not, and can not, be woven In the United States. This is duti able at 40 percent; If It were brought in' as prepared artists* canvas, tho duty would be 46 percent. . The reduction In duty on artists* canvas would not in Itself be ao objectionable, provided sufficient, reduction on unpre pared canvas be made to allow for a com pensatory. working margin. . ' A committee on artists' colors, repre senting prominent manufacturers of these colors In America has also prepared and file.d. a brief Intended to .protect their Interests.! b Ir : d ' Vj i t OIL, PAINT AND DRUG REPORTER November 14> 1934 59 lOt . Miscellaneous la ) Through the efforts of the Tariff Cotn- ha a ilttee and interested members of our in39 ijlastry, the subterfuge of importing; lln- :iy. eed oil containing minute amounts of at -Jthopone, under the classification of a :I- if [tain, thus avoiding the payment of the r- ' * tiity imposed on linseed oil, has been Of urrected. Protests have also been made of gainst the imposition of a duty on im- f. rts of tung and perilla oils, as proposed (j the dairy interests. The whole subject of tariffs on oils was uvered in a report of the Tariff Com : nlssion to the President for such action '! i be may decide to take under the flexible provisions of the tariff act. The contents if this report will not be made public until be President takes action on it. 6 In conclusion, the committee feels that 6 l should again stress the importance to " die Industry of reciprocal tariff agree- y ; nsnts with foreign countries both because d .the possible great importance to the 3 stirs Industry of the effect which such 3 igreements may have upon import's", into S f Oils country and because of the effect such f - ifreemetits may have upon the business 1 tew being done In foreign countries by . nembers of the industry who are engaged b export business. It must be realized flat reciprocal agreements may well re milt in the lowering of tariff barriers | gainst competitive products and thus in troduce an element of competition in this wintry from which the Industry has here tofore been relatively free. In view of current rapid changes in the relative value of foreign currencies, im port advantages arising not only from . lowered tariff barriers but deteriorated foreign currencies as well, make it essen Hal that the industry do everything pos - atble to protect itself. The committee feels tlat this is particularly true because of tbe present relative unimportance of im ports of industry products which might make tariff concessions attractive to the ' Executive Commercial Policy Committee t and the. Foreign Trade Committee re1 ferred to earlier in this report, since front a bargaining standpoint these committees might consider that concessions might-well be made in import duties on paint, var nish and lacquer products In return for corresponding . concessions by foreign countries with respect to export items of American manufacture which may occupy i more important position in the foreign i commerce of this country with the foreign nation. On the other hand, it is obvious f [hat it is of interest to those members of the Industry engaged In export business that foreign tariff barriers to our exports te reduced wherever possible. Consequently, the committee is of the uplnion that in the coming year the situa tion must be watched carefully and to this end has arranged with the headquar ters of the association in Washington to maintain constant contact with develop ments and to be prepared to advance arguments on behalf of the industry on every possible occasion. It is recom I mended to the association members, there fore, that all those who may desire to express their views in connection with possible reciprocal agreements with any foreign country, communicate them to Dr. Henry A. Gardner as secretary of the tariff committee in order that he may be In a position to submit these views at the proper time and in the most' effective manner to both protect and advance the Interest of the industry. Resolutions Adopted unanimous vote of the Philadelphia Paint, Varnish and. Lacquer Associa tion:-- Industrial Disturbances Whereas, we believe that national re covery has been and is being seriously threatened and hindered by the strikes, lockouts, and other manifestations of in dustrial warfare, now epidemic, fre quently resulting in what amounts to civil war, with attendant loss of life, suf fering and culpable waste, and . Whereas, the President of the United States has publicly announced his inten tion to confer with groups truly repre- S. C. Dunning Chairman on Resolutions sentative of large employers and of or ganized labor, with the purpose of estab lishing a period of industrial peace;, now, therefore, be It. Resolved: That the Philadelphia Paint, Varnish and Lacquer Association hereby heartily commends and endorses this sug gestion of the President's, and recom mends to the National Paint, Varnish and Lacquer Association that at Its forthcoming convention, representing a great industry employing many people, it pledge to the President hearty support of the measures designed to end strife and secure mutual agreements concern ing wages, hours and working conditions, or, in case of disagreements, to submit them to mediation or arbitration of State and Federal agencies. ' President Trigg: Tou have heard the motion, gentlemen, is it seconded? We will postpone this order of busi ness until after the address by Mr. Richberg. (The resolution was subsequently approved without discussion.) i President Trigg: While we are National Recovery Movementwaiting for Mr. Richberg the resolu tions committee can report. Mr. Dun ning will you report the resolutions of I the resolutions committee? . Mr. Dunning: Tour resolutions ..1 eommittee have two resolutions to sub , mit. Because of the very unusual and ilgniflcant nature of the first one, we ; are asking the president to submit It, i President Trigg; The following Is the resolution: President Tries': Well, gentlemen, the real climax'and the .culmination of our .three-day sessions Is now at hand. We are favored by having with us this afternoon, the Hon. Donald R. Rich berg. who has the title of "Director of the National Emergency Council, Di rector of the Industrial Emergency Council, and the Executive Secretary of the Executive Council," In Memory of Ludington Patton We have all watched with the keen est Interest, the keenest possible self Whereas, Ludington Patton, a former interest, Mr. Rlchberg's activities in president of the Paint Manufacturers* i Association of the United States and an active leader of this industry for more 7 then three decades, died at his home In j Milwaukee on Saturday, October 20, and t Whereas, Mr. Patton's life work was a source or Inspiration and value not only to this Industry, but- to th,e entire In dustrial structure of the country, and connection with recovery measures, especially the national recovery act. I think we are all agreed that his con structive treatment of that subject, his sympathetic feeling with the af fairs in' an impartial way, has given us confidence, given us assurance that the future under his guidance, under Whereas, his loss through death is in deed an irreparable one; therefore, be It his care, and that of the men who are associated with him, is in the best kind Resolved: That the National Paint, , Varnish and Lacquer Association in con\ ventlon In the city of Washington this of hands. Mr. Richberg Is an; awfully busy man. It Is a sacrifice to him to be here second' day of November, 1934, hereby this afternoon to give' us this time, but expresss Its deep sorrow at Mr. Patton's he has consented to do so, and we are passing and that suitable resolutions be drafted to convey to Mr. Patton's family our message of deepest sympathy. highly honored, Mr. Richberg, In hav ing you- here, and we appreciate your ' This resolution needs no further coming, and without further introduc ; comment, I am sure. It is signed by' tion, I will present to you now, the Hon. all members of the resolutions com Donald Richberg. . mlttee. Mr. Patton--no man was more (The audience arose and applauded)'. faithful in 'his attendance at eonvenilons and all other meetings, always Address by Donald Richberg taking an interest in a collective way, Hon. Donald R. Richberg;--I am not and his loss is a great one, not only sure of all that I may say today, and to this association; but to the paint in when X start that way I have the premoni i dustry and to industry in general. He tory feeling that before I get through I was . always constructive, also in spirational, and always helpful, and Always doing his full part. I take this ' means of presenting the resolution to may regret some of the things I have said, I couldn't prepare myself entirely to ad dress you on all of the subjects concerning which I would like to talk, regardless of v\ you, with the suggestion that it bewhether you would like to hear me, and 9 acted upon now. What is your pleas so I have tried to simply confine myself ure, gentlemen? to a few items that I thought might be Mr. Chessman seconded the resolu- . tion. ' of particular interest at .this time. This industry, like every other is, of course, deeply interested in the progress President Trigg: It has been duty of the reorganization of the NRA. Tou moved and seconded that this report may not be able to learn so much as for will he adopted. It will be submitted in proper form to Mr, Patton's family. All in favor of it will please Indicate ft. by rising, , ' (All arose.) Mr. Dunning: This resolution is merly from the newspapers, but I trust what you do learn will be better cal culated to inspire confidence in the wis dom and tasting value of what Is being done. ' '' '' In the developing period of NRA there was exciting news every day .in the shout submitted to your committee' by the ing and wailing of an infant prodigy that climbed mountains and stumbled over thresholds with equal ease; that roared like a sucking dove and cooed like a lion in every crowded hour of crowded nights and days. . Many a man who lived through the dramatic period of the birth and amazing growth of NRA, made his prayers "even as you and I": first, a prayer that he might serve well in a great cause; and second, a prayer that he might be de livered from any involuntary servitude. For more than a year I worked with throngs of business men who earnestly wanted to find methods of co-operation, and just as earnestly feared they might be subjected to some form of exterior control. Frequently although my co-operative heart yearned to call them brother, my competitive mind yearned to call them something else. But always I sympathized with their perplexities and uncertainties, because I had plenty of the same kind. Now we have reached a new and more peaceful phase of our adventure In eco nomic self-government. The newspaper cartoonist portrays the golflsh bowl occu pied only by clams. The question mark has replaced the ex clamation point, and I face this audience with a feeling that If X paused for breath or Indicated the slightest receptivity I should receive a shower of questions that might resemble that long prophesied and eventually delivered shower of dead-cats. So I shall attempt to anticipate your questions to some extent. NRA Not Passing Out First, the NRA is not on its way out-- but is on Its way up. It is growing stronger every day. That silence In- the room where the doctors have gathered means only that they have prescribed a diet and treat ment appropriate for a period of con valescence. The fever has broken. The crisis has been passed. The recovery of recovery is under way. .. Second, the various operations which have been prophesied from time to time as necessary to remove certain malignant growths will probably not be necessary, since the patient may be expected to im prove considerably under constitutional treatment. To speak quite specifically, the same problems which NRA sought to solve still present themselves for solution; and the fundamental principles of NRA are still sound. It is necessary today, &a It was in the Spring of 1933, to provide the means for preventing many varieties of unfair competition which, so long as they persist, will keep business unhealthy and steadily undermine the security of invest ments and of the livelihood of the work ers. In modern industrial civilization the well-being of ail depends upon the con tinuous operation of essential enterprises, and upon the maintenance of an Increas ing purchasing power to meet that in creasing volume of production, which means commercial health and social se curity. We can no longer afford to leave business expansion and contraction, the volume of production and employment, and the national standard of living, to be determined as a mere by-product of an unbridled,. ruthless competition for in dividual gain. We are seeking to pre serve a system of private enterprise, re sponsive to private initiative and moved by the incentive of private profit. But we cannot permit that system to breed the germs of its own destruction, , A human being needs food; but he can overeat. He needs exercise; but he can exhaust himself. Business needs the stimulation of men who love adventure and are ambitious; but business can be destroyed by gamblers ana men intoxi cated with love of power, In the beginning some simple objec tives were laid down in NRA. We sought . to eliminate the worst evils of labor competition, In working men- for long hours and at starvation - wages and in exploiting the labor of children. But we did not expect to bring about ideal labor conditions. General - improvement would be left to the managerial and labor policies developed particularly- through collective bargaining. We sought to elimi nate dishonest business practices -- those universally condemned. We did not ex pect the transformation of business over night from a fierce competition Into a friendly co-operation. ' We sought to prevent destructive pricecutting--not occasional selling below cost or the sacrifice of surplus production-- but a out-throat policy of destroying a market, either in blind disregard of- con sequences or from a deliberate purpose to ruin competitors and' so to gain- an ultimate advantage. We-sought also to prevent the waste of natural resources. Theory and Perfection Rampant These were fairly simple objectives. Perhaps they could not ail be attained, but It was worthwhile to try to achieve them. Unfortunately, when the doors were opened to -business men to come in and write their codes, all the theorists and- perfectionists came in--and I have learned there are just as many of them In the business field as In' the colleges. There were men who for years had cherished the delusion that, if they could Just regulate prices and production they could all make money, Some of them had heard about the European cartels j but they hadn't heard enough about them to know what mistakes they had made and what failures they had proved. As a result of the pressures from busi ness. organizations which thought they knew what they wanted, a great many provisions were written into codes which are of doubtful value and extremely dif ficult- of enforcement. For example, in the Case of one code over which there has ..been much dissatisfaction and -a great deal of litigation, there still stands In the record a report of the legal divi sion, made last August and signed by me personally, in which we refused to recommend the approval of the code un less further evidence of its economic soundness could be produced and of its practical, as well as, legal enforceability* Necessarily, however, In the effort to bring all Industries under codes within a short time it seemed wiser to test the value of many provisions by practical operations, rather than to make a deci sion solely on the basis of theory. The Administrator was more or less forced to act on this basis. I have reviewed this phase of code development because I wish now to speak briefly, but cheerfully, on the subject of compliance. The problem of compliance with code requirements is entirely different from the enforcement of statutory law or - ad ministrative orders in an old field of governmental action. It Involves the making of a mass of precedents in -a comparatively new field of law. It in volves not only. a multitude of difficult legal Issues, but' also intricate questions of fact, calling for the careful weighing of evidence. Problems Novel and Numerous The problems presented by the national industrial recovery act, to the Federal Trade Commission and to the Department of Justice were novel, difficult, and multi tudinous. Any criticisms of delays caused by deliberation In action would be un warranted. Co-operation between all con cerned called for a sympathetic under standing and adjustment of many dif ferent points of: view. It is only fair to say that so long as grave uncertain ties or Inconsistencies existed within NRA as to its own policies, the task of other co-operating agencies of government was made exceptionally difficult. When also NRA Itself undertook an impossible administrative burden, as, for example, that of obtaining compliance with certain of the service codes, it did not ease the strain or lighten the burdens on the Department of Justice. In recent weeks, however, rapid prog ress has been made in co-ordinating many government activities, and I am particu larly glad to say that effective co-opera tion has been definitely promoted by a series of understandings reached between representatives of NRA and other federal agencies. The problem of compliance with codes of fair competition has been receiving intensive and continuous consideration. It can now be stated that a good under standing exists between the NRA and the Department of Justice as to methods and policies In the enforcement of code re quirements. I mention this particularly because those Interested In not comply ing with legal obligations are likewise often Interested in circulating misinforma tion of alleged disagreements and con flicts between government agencies which are responsible for law enforcement. It should be recognized that there are provisions in some codes which their in dustrial sponsors should themselves seek to revise. It is hardly-fair for those sup posed to be "truly representative" of an industry to seek and to obtain official approval of code`provisions which are in tolerable to a substantial fraction of their industry. Sometimes such efforts are only mistakes of Judgment. Sometimes they are the product of pressure groups seeking to ad vance special interests. We should only write Into a taw those obligations which the great majority of those concerned would voluntarily fulfill if given a fair opportunity. We cannot soundly write industrial laws to compel substantial minorities to bow to the opinions of majorities concerning what are just or wise business practices. Before customs .or ethics are general'y approved they are not ripe for embodi ment in law. If we are to write industrial law, we must write it a all other sound law is written--as the translation Into a compul sory rule of a custom so well established that It has almost universal support. : Rights: of Minorities And then we must be sure that even such a rule does not Invade any equally well-established * concept of a minority right to be free from majority compulsion. Trade laws need more solid foundations than trade agreements. When codes have been written, or| when they are revised in conformity with these principles, the problem of compliance will be much sim plified and. greater assurances of uniform enforcement can be expected from all arms of the government--including the judicial. It Is my conviction that many sound .principles > of NRA have been ob scured in pop_ular vision, and even among industrialists,' labor representatives, and government officials, because of a wellintentioned, but mistaken effort by busi nessmen themselves, frequently encouragejtL'by public officials, to move too rapfdly in the direction of Ideal business and labor conditions, instead of seeking only to move step by step in the establish ment' of better rules of the game, which will be generally accepted and can bo practically enforced. Now, I don't wish you to feel that be cause I am addressing this particular audience, that what I have said la related particularly to your individual problems or code, I say rthat because It is quite Impossible for me to make any general statements without giving adequate con sideration to alii the types of codes and industries which:may be affected, and in making statements here I want to avoid any . assumption that they are particularly directed to any of the problems of this industry. Legal Problems of Compliance . I would like to say a word or two more on the general subject of compliance. The legal questions Involved ate very compli cated. The question of the field of Fed eral authority in the regulation of Intra state commerce Is not a static thing, it is a developing process. The concept of the extent and scope of the Federal authority has . been continually expanded by the necessities of actual conditions. It has become more and more clear, year by year, that it was harder and harder to draw the line to trhere transactions which might appear In 'themselves purely intra state, nevertheless had such a definite' effect upon interstate commerce that they must be subject I to the same regulation that It was necessary to protect and pro mote Interstate commerce. All of the retail outlets of manufactur ing processes, although they may seem to be located in particular States, affect very strongly Interstate commerce Itself, 60 November 14, 1934 OIL, PAINT. AND DRUG REPORTER The old distinctions lri the earlier cases, - an the supreme court, have been wiped out, many of them by the court itself, and we can fairly say that more and more they are in process of elimination. Where the line is to be eventually drawn, It Is hard to say. With the de velopments of the last twenty years, the inter-relation and interdependence of every variety of business activity has been so Intensified that it is very hard to tell where the line can be properly drawn. That Is one of the problems that the legal division of NRA has been struggling with for the last year. Maybe it seems perfectly dear [n one Instance, there is no question of the power of the Federal courts, and In the next case it is such a fraction away, such a small distance away, that you say, "Well, If this is true, then this must be true," and you can keep on moving on until as a matter of fact you have covered practically the gamut of all business. Now, the only way that we can arrive at sound legal determinations, the matters of problems presented by the courts, is by pricking out the lines of advance, day by day, and year by year, in actual changes of economic conditions, as those changes are reflected in judicial opinion, and' that judicial opinion must be based upon the adequate collection and presentation of economic facts, of vast complexity. That is the reason why in the develop ment of the codes we have been forced over and over again, as; in the instance I gave, to go back to the economic group,- to go back to the business statisticians) and say, "We need more facts. You may be right, but we need -more facts. We need a better factual basis for determina tions as to tbe legality and enforceability of this particular provision.'' Then there is another;type of fact very difficult to arrive at. In a decision of the supreme court many years ago, the exer cise of the police pow^ was defined as extending to all of those matters--I am not quoting exactly, but substantiallyTM to all of those matters ^supported by the preponderant opinion as! necessary in the exercise of the police power of the State. * To a large degree, the determination of what is fair business practice, what Is un sound practice, must be a matter of pre ponderant opinion, must be a matter of the gradual determination by business it-. self. You can't sit down In a study and write the thing out, and say, "This is good, and this is bad." You can't get a conference of the most able business men in their line, and ask them to agree upon what Is fair trade practice and then say, because they agree this is it- The country is too vast, the interests are too complicated. You do your best to ascertain what is a Concert of opinion on such a question, and we go forward with a code, and it raises difficulties that no one anticipated; it raises oppositions, It raises Issues of fairness and Justice that were not discussed and were never raised before--not because they were concealed, but because people didn't realize they would arise. ' Legal and Factual Bases Necessary Now, ail of these factors affect the en forceability of the code when It is adopted, because when you come down to the necessity for litigation,; you have got to build up your legal authority on the one hand and your factual basis on the other hand, and you. have to build a strong structure if you are going to enforce a . penalty of either line ! or imprisonment against anyone for disobeying the re quirements. That is the reason X want to empha size to you the importance of drawing a distinction between those matters that could soundly be made the basis of trade agreements, and upon which you could ob tain a general agreement as to fair prac tices, and those matters which could soundly be made the basts of a compul sory rule, and enforced by process of law. Now I want to say just a word or two on a broader situation. '. Emphasizing what I have tried to say recently on two or three occasions, it seems to me that with:the experience of the eighteen months through which we have passed, we have arrived at the pres ent time quite definitely at a period ripe for a real economic advance. T have been saying to a. good many of my friends who talked about uncertainty and confusion, and lack of confidence the last months, I have said, "Perhaps you forget that we are going through a na tional election." There jnever is a period of a national election in which confusion and uncertainty and lack of confidence wasn't created in large quantities, because that is the busineg of an alert opposition. Now, there is nothing partisan in what I am saying here. I am not passing upon the merits or demerits] of the conflicting claims--I am" only saying that in the period of a national ' election we know that partisanship runs ihigh, and it is to the great interest Of a ;large and influen tial fraction of the population to empha size the factors of uncertainty, to' charge mistakes, to criticize, to raise worries and fears and bugaboos. It;doesn't make any difference what party It Is, but that is exactly the procedure ] that will follow, and it is quite Impossible' for us, just being ordinary human! beings, not to be affected day by day iwith the sort of thing that we read in the newspapers. Now, fortunately, that particular cause of uncertainty and confusion. may be temporarily allayed to' some extent within the next week, and then perhaps we Can sit down and ' look rather straight forwardly and honestly ;at the actual facta in the situation, and what we will find is, if we will just look back over where we came from, to where we are, that we have achieved an enormous advance in every thing in this country that should promote confidence in the last eighteen months, . Reasons for Confidence . We have a bank system * restored to sound health, ample-credit available. We have organizations for; self-help through out industry and agriculture, to aid in promoting the interests of those in their particular fields, . We have organizations for the ^relief of financial pressures upon millions of in dividuals and thousands of Institutions. We have organized methods for relieving the immediate distress of the unemployed. We have a far better condition as a whole in employment in induetry, conditions of employment, and in the conditions from the standpoint of investment and manage ment than we have had for many months, I might say for many years. Certainly, there is a vast difference in a condition In which we were steadily going do.wn hill, and a condition In which we are going steadily up hill. I have talked with men who ought to know in various parts of this country, and I have yet to he informed of any sound reasons for hesitation in moving forward with normal business operations along normal lines. I have heard a great many complaints things that might be better, but those complains h,ave been with us always. For a hundred years people have wished we might have better labor and employment relations. For - the last fifty years we have had a con tinuing difficulty over employment rela tions, and relations of organized labor and employers. Those conditions are no worse, aa a matter of fact, they are far better today than In many times In the past. I hear talk of uncertainties as to money policies, as to curency measures, and'all kinds of complaints. You are familiar with them. When you iron them down, there Isn't in one of them any par ticular reason why an Individual man shouldn't go ahead In his business. He Ib not concerned, as a rule, In his In dividual business, with the theoretical problem which is presented, and nine times out of ten I frankly think when you analyze It down it Is nothing more than the reasoning that you and I adopt because we don't do something when the real reason we don't do something is be cause somebody else isn't doing It. It is just a question that we are pretty sheep-like. If everybody is going forward with courage, then we have got increased eourage. If everybody looks gloomy, then we begin to feel gloomy. In other words, it seems to me that all w$ need is the common opinion among business men and among bankers, that our conditions are just as good as they are In fact, and they will move to take care.of our problems as they should, I don't think this is a thing to be postponed. Waiting indefinitely for "George" to do it will not help. The problem of - unemployment has not been growing worse, it has been growing bet ter. It has been improving. It is still with. us, and it is a tremendous prob lem. It can't be solved in any way satis factory to our people and to our future except through Increased employment in private enterprise. It isn't a problem that Is going to be solved by continuing public relief ap propriations or continuing tbe expansion of work under public financing and pub lic control. If that work which is financed by government is not in the field of pro ductive enterprise, then the limits of ex penditure are clearly visible, because the governmnt can no more go on pouring out hundrds of millions of dollars into providing either direct relief or work relief without any return than a private corporation could. Relief Through Private Enterprise In other words, productive enterprises must be established and carried on to furnish employment to the unemployed. Those enterprises are here with us, they are private enterprises, and their expan sion Is entirely possible by those who control them, when they work in the uni son and co-operation of which they are capable. If that expansion does riot take place, what is the inevitable second choice? Government, having the obligation to take care of the unemployed, the gov ernment being faced with the limitations of unproductive expenditure must seek in some way to use funds In productive expenditure, and If so, is it not then in evitably moving either in competition or in substitution into the field of private enterprise? Now, that Is what we don't want to do. The American people do not want to do it; their public officials do not want to do It; but if that is to be avoided, the answer is that private enterprise must . take up the job Itself. I suppose there is no group that fa more Interested than you afe in many ways, in the better housing program, which I see referred to before me, and `the better housing program is in the stimulation of private enterprise, but 'be yond that better housing program there is a need and an opportunity for re building homes in America, for providing new and better housing for masses of people who have Inadequate housing, and for the rehabilitation of obsolete plant and equipment, which could utilize our facilities for the production of capital goods, which have been languishing and employ-a large percentage' of the unem ployed In that work. Now, the work is needed. The develop ment of housing and the improvement of our Industrial plants is an obvious Job Jh front of us. It is a Job of private enterprise, and I for one, want to ex press the hope, when the confusions and uncertainties of a distinctly politi cal period have passed, that through the machinery which under NRA has been 'organized for co-operative action, it may be possible for the trades and Industries of this country .to get together-in a com mon effort,:to move into the solution or this problem, 'to move into its solution through' private -enterprise and not through reliance upon, the government. Thank you. ' President Trigg: Gentlemen, I know I express your appreciation to Mr. Richberg for this splendid talk. President Trigg; Mr. Dunning will continue that report. . Mr. Dunning; I have finished read ing that resolution and it Is now on the floor. ' President Trtgg: There was a mo tion to approve it, is there any discus sion? All in favor please say "aye"; con trary, "no." Thank you, Mr, Dunning. % President Trigg; Now, Mr. Peters, will you announce for the nominating -committee? . Officers Are Elected Secretary Elton: The election has been , cast of. Mr. Bennett Mr, Peters. That completes our ticket 1" Mr. Peters; It is quite a chore-to immediately follow such a speaker as we have just listened to, and if any of you have any doubt about that I will be very glad to change places with you. but the nominating committee would like : PJ to congratulate the association on t1h not willingness of these able gentlemen ft ried serve you, and we want to congratulate these gentlemen on the opportunity tor .e service which is theirs in the year to J Mr. JUohborg, however, Mr. Chairman, come. has done two or three things for me. , He thrilled me with his talk us he did Officers Installed pie this audience, caused me to forget mine, and provided me with an audience. Pre_s_i_d_entffT,1rigg: I want to call on e I appeared before you Wednesday after noon for the nominating committee, and presented its preliminary report, and I have great pleasure, Mr, Chairman, In one of these men who has been elected ft A office to make a speech not over thirty minutes in length, Htti (President Trigg introduced the n P telling you that I appear before you again, . members of the executive committee), ing and we have not changed our mind-since President Trigg: I would like to in* ]Vrtl! Wednesday. . We have to elect, now, gentlemen, six members of the executive committee, .a troduce Mr. Roh. the 1 Treasurer Roh: Mr. President aid V A Members: I am torn between two thoughts gry committee which, as you know, is com in accepting the treasurer's Job for the posed of eighteen, six of whom must be ' next year. The one which I thoroughly " elected at this time. believe in, and which I want you to feel Your nominating committee, consisting of A. F. Brown, J, El. Ingram, l>on Hanline, -V. Wurtele, Wallace F. Ben nett, your president, Mr. Trigg, and my self, have met and submit for' you the names of the following gentlemen, whom we are nominating now to serve for a period of three years, which le the normal term of the executive committee. These same six gentlemen have just completed one year of service on this committee, and we are renominating them at this time for the reason that they have served but one-third of the normal period, and for the second reason that each. Individu ally, contributed so much, in co-operation in your affairs that we have the great pleasure In nominating them for the nor mal time of three years. The nominees are it_ A. Plumb, J. Heath Wood, O.- J. j . de Bran, W, C. Dabney, S, C. Dunning, and D. W. Figgis. Mr. Chairman, I have great honor to move the election of these six' gentle men of the executive committee. - that I- do believe in it, and that is flat m*' .1 am depriving some fellow in this organ!- opt zatlon of a fuller knowledge of the trees- wit .urer's responsibilities, I do feel that Si cot accepting this job again, that perhaps i 0I over-stepping the bounds of reasonable re in. election, yfr ' It just seems to be an old story, Oi l<y the other hand there is the other thoughl of that-1 want you to know, and that is tha offi I do get a real kick and a real thrill -on yoi of being the treasurer of this aesoclattoi ha r think if I was asked to use what talent , 1 had In sustaining the president and th +rt present board, that there is no other plaa I would like better to serve it than in w Ul' thing that I probably am most familial Pr' with, and that is the financial stroctur ` of the association. - se> ' It has been a very happy job, and j very nice association that I have had li having a part' in the finances of the ot gardzation during the last several yean and particularly has that been true li this last year. I have felt that I hadifar little part in it, j7fo President Trigg; You have heard the I wanted to do it for more than oml ti< motion, is there a second? reason, because in the early days when I vc (The motion was seconded.) came into the association work my owi President Trigg: Are there any other nominations? chief told me that he wanted me to keet In mind the fact that the .association, aul ai The chair hears none. 3s there a motion to authorize the secretary to cast one ballot expressing the opinion or the desire of this meeting for the election of these six men? Is there such a mo tion? Mr, Phillips: I so move, Mr, President. President Trigg: The motion is duly made and seconded, will you' please an nounce who has been elected, Mr. Sec retary? Secretary Elton: The following mem bers have been elected members of the executive committeeR, A. Plumb, J, Heath Wood, O, J. S. de Brun.. W. C. Dabney, S. C. Dunning, D. W. Figgis. President Trigg:' Now, Mr. Peters, will you proceed? Mr, Peters; We have nominated for treasurer C. J. Boh. This, as you know, Is a renomination, and it would needlessly take up your time for me to say the things I would like to say about Mr. the industries, were bigger than our com pany, and that as long as I had in bust- w ness vitality or any talent I should rendu tb the first to the association and the indus-l sl try and I have been very happy in fulflIM *_ ing his desires. 't I want to pledge you, Mr. President, myl full co-operation. : President .Trigg; Thank you, Charley. (President Trigg introduced the zom vice-presidents.) President Trigg: Now, finally, I warn to call on our new association vice-presi dent, 'Wallace Bennett, and In calling on him Z -just want to say to him, that weI Y arc delighted to have you sit in with in' on this work and come up here and show yourself a minute and say a word to all of us. Mr. Bennett: Gentlemen, when Mr. Peters stood up following Mr, RIchberf somebody made the remark that the bald* headed fellows did all of the work thie afternoon, so I feet perfectly at home. Roh, except to say that the nominating committee are especially honored and grateful to Mr. Roh for the privilege of presenting hlB name to you again, for treasurer. ' Mr. -Chairman, I move the election of Mr. Roh as treasurer for a term of one year. President Trigg: Is there a second? (The motion was seconded.) President Trigg: Are there any other nominations? . After this very spirited election which I won by one vote, I feel very much re lieved, and hope I can agree with Mr, Richberg that business can now settle down Into a normal course. I realize that when he chased me all over the great Pacific- Northwest, Mr. Peters was not so much chasing me as chasing the Western zone, than in honor ing me with this position he is honoring through me the fine bunch of fellows in the Western zone, who so seldom have aa The chair hears a motion to authorize opportunity to take part in the delibera the secretary to cast one ballot for the tions of the national association, and I election of Mr. Roh a treasurer, realize that In giving me this opportunity Mr, Phillips: I so move, Mr. Chair they are giving me an opportunity of man. taking, through close association with you President Trigg: All in favor .please say "aye" j contrary, "no."- It ' Is so here In the East, the spirit of the asao^ elation to the men in the Western zona ordered. I live on its eastern fringe and I atn Secretary Elton: The ballot has been cast for the election of C. J. Roh for treasurer. going to have an opportunity to visit most of the clubs, I hope, during the coming year, and if I can have the chance of Mr, Peters: We have, as you know, coming East often enough to partake of five regional vice-presidents of tbe asso the spirit of the executive committee, and ciation, and your committee submits to get at first hand a knowledge of ho-? you the following gentlemen as nominees things are run, and what the real moving for these various regional vice-presi dencies * spirit of the association is, I hope I will have a chance to take that to the fellows For New England, Wilbur Rice. For Eastern, J, S. Wolf. For Central, D. P. Joyce. . For Southern, D. C. Burnham. . For Western, R. H. Oakley, I move the election of these regional vice-presidents. , out on the Pacific Coast. . My father-in-law says that the crown? prince is never In favor with the king. I hope that won't be. the. case in oci association, Mr. Trigg, and I hope I will be able to measure up to the responsible Itles you see fit to place on me, and I pledge the association and you, -Mr. Trigg, (The motion was seconded,) my wholehearted support and co-operation. President Trigg: Are there any other Expressions of Appreciation!nominations? Mr. Howard: I move the nominations -be closed.' - President Trigg: All In favor will please say "aye"; contrary "no." It is so President Trigg: Now, one mou ordered. thing, : I would appreciate it if you Secretary Elton: The ballot has been would, if somebody would move, and cast for the following zone vice-presidents: Wilbur Rice, New England; J, W. Wolf, .Eastern: D. P. Joyce, Central; D. C. Burnham, Southern; R, EL Oakley, Western, . . ' Mr. Peters: As vice-president of -the you would adopt a resolution authoriz ing -the president to write a letter of appreciation to every person who was on ouv program during this convention. I am going to write the letter, anyway, association, .and-as announced on Wednes hut I would like to he able to honestly day, your committee thought that It might .be desirable to move this office somewhat farther West in our country. As you know, we submitted the name of Wallace Bennett, of the Bennett Glass & Paint Company, Salt Laws City, Utah. In this connection, 1 should like to say that Mr. Bennett was a member of the nominating committee, but never attended say in it that the convention adopted this resolution and instructed me to do iso. . ; Does somebody want to make such a resolution? E. V. peters: I am very happy to make such a motion. -' - . President Trigg: It is carried. any of our meetings, and Mr. Bennett was most active In suggesting the names of a great many other people, to take this position, and I had to chase him from Salt Lake .City to Seattle to San Fran cisco and finally caught him there. Mr, Bennett liked these other gentlemen, and. Now, this first annual convention is about to come to a close. . Treasurer Roh: I have just a thought, Mr. President. I heard today that a member, of our association is sick in Mount Sinai Hospital, New York. Per had to be drafted for this job, and it gives haps he hasn't given a lot of years, but me the greatest of pleasure to nominate as vice-president of this association, Wal lace Bennett, Salt Lake City. President Trigg: Is there' a second? (The motion was seconded.) President Trigg: All In favor of having the secretary cast a unanimous ballot please say "aye"; contrary "no." It Is so ordered. those, years he was associated with the induetry, he gave unstlntingly of him self to it, and now finds himself in misfortune, and in a hospital bed in the Mount Sinai Hospital. ; I refer to Henry Caiman, and I would like to make a motion that we send Henry Caiman a word of greeting, Mr. 3 OIL, PAINT AND DRUG REPORTER November f4, 1934 61 jei rcsldent, and I make that as a mo- (n, ike President Trigg: All In favor of that :M Btlon will please say "aye"; it is car ed. . r6\ M. Arnstein: Might I mention that toor.' if same thing ear friend, H. should be done to our L. Wilkinson, who is ' Ira sick. He is just recuperating from j leumonia, and several of us got to- ether and sent him a telegram, hut think that he would be overjoyed, I ty in sure, if the association sends a ; Rtle encouraging message. ,w President Trigg: All in favor of do ' lif the same thing for Mr. Wilkinson n- rill please say "aye.tJ It is carried. Is tere any other business? id `Adam E. Daum: I can't make a flow- ts. fjr speech, but I wish I could put in ^e; iords what I would like to say. Our .a? Resident is here, our executive cora- at:n!ttee and the staff who have co- LU operated with them, and have done s-Jrithout doubt the most wonderful and inicmstructive work that has ever been tei&ne for our association, and I would ^.llflre to see appearing on our minutes ,nllor this session, that a vote of thanks t/fol this convention should go to your itioficers, the executive committee, and riirwr staff, for the wonderful work they Mhave done. lM President Trigg: I think we will, have irito bring up our new vice-president on (ef tin job right now. Modesty forbids my ' presiding during the voting, Vice-president Bennett: Is there a second to that motion? . (The motion was seconded,) Vice-president Bennett: It has been moved and seconded that we express our great appreciation to all of the paid af&nd unpaid officers of our association, for their splendid work at the conven tion, Let's vote on this with a rising Tote of thanks. (The audience unanimously arose and applauded.) President Trigg: Now, gentlemen, we will conclude and bring to an end f \ this convention, and I hope and feel ' I sure that the thoughts that have come ' I from it and the acquaintances are go - * iig to do us a lot of good during the wming year. We are going to serve you in every vay. Let's make your headquarters kere your own headquarters in Wash ington, and we will always be' on the job to look out for you. Thank you very much. The meeting is adjourned. J (The meeting was adjourned at 4:30 |p. m.) I Committee Meetings Roh's report as treasurer was pre sented at a later session of the con vention as a whole. Executive Comittee The executive committee met at 9:30 Tuesday forenoon and discussed numerous matters, including the sta tistical records of the United States Bureau of the Census, the proposal of a processing tax on linseed oil, and the activities of HOLC and the FHA. Elliott S. Phillips, chairman, pre sided. A subcommittee, consisting of L. P. Moore, Herbert W. Rice, and Ernest T. Trigg, was named to draft resolutions in memory of the late Lud- ington Patton. Joseph D. Patton was elected to fill the unexpired term of his father on the committee. Dr. Henry A. Gardner, director of the scientific section, gave a preliminary report on his recent trip to Brazil, with special reference to the value of olticica oil to the Industry. A resolution for closer co-operation with the railroads of the country In finding a solution to their distressed financial conditions was made by E. A. Leveville, director of the traffic bureau of the association and this was ap proved for presentation to the conven tion. ' Advisory Committee The national advisory committee, which is composed of presidents and special representatives of the local or ganizations, met at dinner and dis cussed the activities of the committee for the past year. Plans for improving the work of the local associations were discussed, and a request for a field man in the New York area was considered. Ernest T. Trigg presided over the meeting and the major report was made by C. K. Stodder, chairman of the national program committee. He stressed the importance and the func tion of the local paint, varnish and lacquer associations under the "New Deal," and also the value of member ship in the organized industry and the many services which are rendered to their members by local associations In co-operation with the national associa tion. Also, Tuesday evening, members of the national membership committee, under the chairmanship of William H. Jarden, Jr., and representatives of local associations met as an acquaintance committee and perfected arrangements for adequate introduction among mem bers of the Industry attending the con vention. . Recovery Board Prior to and during , the period of the N. P, V. & L. A. convention, .many meetings of executive and special groups were held in the Mayflower hotel. Budget and Finance , Tuesday forenoon, October 30, the bndget and finance committee met at breakfast, under the chairmanship of Charles J. Roh, treasurer. An excellent financial condition due to a largely In creased membership was reported. Mr. - Another Tuesday meeting was that of the Paint Industry Recovery Board which was addressed by Charles R. Baxter, administration member of the board, who also answered various ques tions. A motion that existing estab lished consignment accounts would not be eliminated June 1, 1935, which was passed by the executive committee, was ratified by the board. After study by the board, the executive board deemed it advisable to allow these ac counts to continue. The members pres ent stated that the code had been of great advantage to them in their busi ness, , At the meeting were Wallace F. Ben nett, Salt Lake City; Frank Bownes, Chelsea, Mass,; Andrew S. Butler, Buf falo; W. C. Dabney, Louisville; O. J. S. deBrun, New York; S. C. DunnLng, Staten Island, N. Y,; L. V, Fox, New York; E. A, Foy, Cincinnati; H. O. Gibson, Cleveland; W. D, Gilman, Chattanooga; E. H. Hancock, Louis ville; A. E. Horn, Long Island City; P. S. Kennedy, Newark; J. F. Kurfees, Louisville; E. R. Kyger, Kansas City; R. W. Levenhagen, Cleveland; J. B. Lord, Boston; H. A, Melum, Chicago; Rudolf Neuburger, New York; J. K. Patterson, Cleveland; E, S. Phillips, New York; R, A. Plumb, Detroit; J. V, Reardon, St, Louis; Chas. H. Reed, Cleveland; Gilbert Spruance, Philadel phia; C. L. Sullivan, Dayton; F. L. Sulzberger, Chicago; W, H. Seney,'St. Paul; H. E. Webster, Buffalo; J, Heath Wood, Chicago; H. JBraith Davis, Bal timore; S. R. Matl&ck, Philadelphia; Ernest -T/ Trigg, president; Laurence Kiefer, secretary; M. Q. Macdonald, general counsel. Roof Coatings The roof coatings and roof cement division met on Tuesday night under the chairmanship of H. O. Gibson. Other Meetings Wednesday evening, manufacturers especially interested in industrial sales held a meeting under the chairman ship .of Paul S. Kennedy. Other group meetings and their leaders were: water-paint manufacturers, J. Vincent Reardon; marine and industrial, C. F. Beatty; driers, Dr. C. A. Knauss; rail road finishes, C. L. Sullivan, Jr.; putty, O. J. Biddle; synthetic resins, R. M. Banks; wood finishes, W. I. Longworth; metal finishes, David Andrews. Paint Wholesalers Meet The annua! convention of the Na tional Wholesale Paint Association will be held in New York. In February, it was announced by. the board of direc tors following their meeting In the Mayflower hotel, Washington, Novem ber 2. The directors held several ses sions in the course of the manufac turers' convention and members were active participants In the meetings, three papers having been delivered. To formulate a plan for closer co operation between the two organiza tions, the following committee was named to confer with the executive committee of the National Paint, Var nish and Lacquer Association: R,. F. Rainey, chairman; R. J. Clemens, T. A. Flynn, A. F. Winstel, and C. F Watter. . A resolution was introduced in the manufacturers' convention proposing the establishment of the wholesale group as a division of the association. Further consideration will be given by the executive committee. ' The executive committee of the wholesale paint code authority also met during the convention. Entertainment Features Splendid entertainment marked both of the Washington conventions. The Federation's annual banquet and show have become noted for their gayety, and this year was no exception. The ballroom was filled with manufacturers' delegates, as well as production men, and they hugely enjoyed the thrusts at operating heads made In the burlesque skit, "Ernest Efforts, or the Production Manager Twenty-Years Hence." The committee for entertainment of the National Paint, Varnish and Lac quer Association was composed of T, A. Flynn, Washington, chairman; John Henry Coon, Baltimore; Dr. C. A. Knauss, Elizabeth, N. J.; T. A. Wil liamson, Philadelphia; F. J. Sampson, Richmond; and Robert K. Shannon, Washington, with Mrs. Flynn, Mrs. Coon, Mrs. Williamson, Mrs. Knauss, and Mrs. Ernest T. Trigg, in charge of entertainment for the ladies, which in cluded a musicals, a tea, and a bridge luncheon. Wednesday night everyone turned out for the Hallowe'en dance in the main ballroom which was appropriately dec orated. On the following night came the annual banquet, advanced a night from previous 'schedules so that those- ' wishing to depart immediately after the business sessions closed on Friday need not miss this feature. "Glass Houses" While listed as a number on the reg ular afternoon program of the Thurs day trade sales conference, "Glass Houses," a playlet on the sales possi bilities of the Federal housing act, was of distinct entertainment, as well as educational, value. When word went around the corridors that it was ready . to go on, the ballroom was rapidly filled, the ladies of the convention also attending. The playlet, written by Ivor Kenway, advertising manager of the Devoe & Raynolds Company, was de scribed. by all as the -best piece of prop aganda writing they had seen, The theme was the universal desire; of human beings for beautiful and at tractive surroundings. A young girl, played by Miss AnnabelTe Zeller, of the Certainteed Products Corporation, was fairly, ashamed of her home because of the impression ^ its condition might make on the man with whom she wasIn love. Her mother, played by Mrs. T. Brooks Cross, was as eager as she to redecorate, but the father was cramped for money and could do nothing.! How a paint dealer revealed to the family what the local bank could do for them under the terms of the act and how a painting contractor was shown how to go after such work formed the story. Others in the cast were Kingsley Kunhardt, of the Guaranty Trust Company; T. Brooks Cross, of the Devoe & Ray nolds Company; Deane Colton, of Val entine & Co.; Daniel Jaeger, of the U. S. Color Card Company. The play and. the author and cast were warmly applauded by the au dience. : 4 Paint, Varnish and Lacquer Sales: September Sales of paint, varnish and lacquer products In September were valued at $22,234,400, compared with $24,350,736 in August and $19,097,803 in September last ) year, according to the monthly report of the Bureau of Census based upon | data received from 536 identical establishments. Total sales for the first nine 1 months of the year were $221,363,869 against $171,426,563 for a like period of 1933 'r and $222,760,965 in the entire year of 1933. Details of trade sales and Industrial sales in September, a comparison with preceding months this year and a com parative record for the past two years, follow:-- 1934. , January . February March ... it 4J>ril .... 1, May .... V June .... September r--Classified sales reported by 944 establishments--^-\ Unclassified Total sales Trade sales sales re- reported by Industrial sales------------------ , of paint. ported by 596 eatab- Paint and varnish and 242 estab- llshments. Total. - varnish, Lacquer. lacquer, llshments. $6,915,030 - $4,290,923 $1,724,107 $7,470,517 $7,168,112 ...... 17,716,447 - 5.639.413 3.714,128 1,925,286 0,260.162 5,319,872 . 7,105,176 4,768,864 2,336,3)2 8,604,097 7,683,223 ............. 27,76^,932 . -7,589,828 5,256,548 2,383.280 10,846,963 9,338,141 8.091,723 6,824,403 2.207,320 14.079,824 11,507,330 ........... 28,794,352 7,629,806 . 5,465,366 2,174,500 11,313,031 9.850.565 7.449.074 6,254,402 2,104,682 8.461,401 7,573.006 ........... 24,869,726 6,678,872 4,499,35G 2,079,510 9,502,007 S.269.84T ........... 22,234.400 5,268,057. 3,722,691 1,545,366 8,903,543 8,057,800 Totals (9 mos. >.$221,863,869 $61,867,039 $42,786,771 $18,580,268 $85,343,346 $76,153,485 January . February ........... $11,275,396 ........... 11.665.734 ........... 13.578,568 June .... July .. ... September ........... 27,313,233 ...... 20,629,811 ........... 19,097,803 $3,629,886 $2,380,947 3.423,033 - - 2,445,378 3,391,947 2,484.550 4,077,309 3,143,803 5.991,938 4,298,455 6,827,500 4,832,561 6,406,184 4,493,516 6.328.476 4,754,701 5,544,688 8,976,917 $1,142,939 977,635 907.397 1,536,506 1,693,483 1.994.968 1,912,668 1,603,774 1,868,769 $4,168,200 4,771,700 5,738,213 6,582.411 11,783, St s 12,443,998 S.e27,400 7,840,359 7,402.11$ $3;577,260 3,470.995 4,398.408 6.784,007 - 8,460,683 8.641,720 7,056,603 0,450,977 6,091,004 Totals October .. November \ December mCU?.1.$171,420,56S ..:... 18,944,106 ........... 16,156,962 I ' Totals (year)....4222,760,965 \ 7932. / January . February March ,.. April .... May......... June July ..... Aatrust . $spteiber ........... 16,806,712 .i B October .. i December ....... 15,602,'377 ... 12,492,818 .........9,464,529 $46,115,067 - $32,815,818 4,949,755 3,721,420 4.656.353 3,466,174 i 4,418,028 - 3.428,870 $00,140,098 $43,431,788 $13,900,149 1.228,335 1,190,179 989.047 $16,708,310 $71,473,033 7.370,012 6,560.157 8,167,607 $01,572,700 Comparable atatietlca not available, . $4,085,899 3.793.245 3.851,028 8,980,664 . $3,617,719 $1,067,680 2,900,707' ' - - 892.536 8,067,096 793,932 3,113,303 867,261 $8,784,830 0.668.813 6.918,059 7,210,748 3,996,600 8.599,819 3;222,7T0 9,036.328 2,639.362 2,136,706 960,177 959.957 1,036.004 . 6,610,0)1 6,)90.T90 8,506,715 $53,857,563 0,018.339 5,011,724 6.580.472 $71,048,098 $6,217,620 4.578,664 5.262.754 5,608.400 4,985,800 8,690,733 2.755,035 TfttaU (year).. .$03,323,315 Plastic, Water Paint, Calcimine Sales: September Sales of plastic paints In September were 390,777 pounds with a value of $37,314, against 340,461 pounds valued at $26,293 In August, and 293,732 pound's valued at $31,330 In July, according to the monthly report of the Bureau of Census on plastic paints, cold water paints and calcimines gathered from flftythree manufacturers. Details of sales of these products In September, a com parison with August, July and June,, follow:-- Plastic Paints Total-- . September, Pounds ................. Value .......................................... $27,314 Paste (lead, mixed paints# and . emulsified types)-- 1 Pounds ...... . 42.639 Value ..................... . $3,478 Dry, total-- Pounds "Value ..................... . 343.138 '. . $23,836 Casein bound-- Pounds ................. . 233.243 Value ..................... - $18,645 Glue bound*- Pounds ,,............. 114.895 - "Value .................... . $3,791 ' August. 340,461 $2S',2B2 28,746 . $2,342 338,715 $22,050 212,100 $17,350 101,069 $5,666- .' ----- 1934--:------- July.' 293,722 $21,330 , 22,383 $2,048 271.339 $19,282 185,220 $14,820 80,118 $4,458 June. 354,052 $23',782 21,280 $2,220 333,303 $23,562 215,417 $17,2)9 117,946 $6,343 May. 553,045 $39,823 . 82.253 $2,762 520,792 $37,063 291,524 $24,319 229,263 $12,744 Cold Water Paints (in Dry Form}' Total-- Pounds ................. . 1.089,853 1.128.534 3,007,482 1 Value .......... .. , $71,328 $71,299 $63,442 Exterior, total-- Pounds ................. . 501,834 467,120 471.638 Value .................... $34,790 $32,524 $83,024 Lime and/or cement bound--. Pounds ................ . 346,615 275,205 270.426 Value ........... . . $25,931 $21,903 $21,791 Casein bound-- ' Pounds ................. . 135.219 101,921 201.218 Value ......... . $3,865 $10,021 $11,233 Interior, total-- Pounds ................. . - 508.019 ' 059,408 535,844 Value .......... .......... .. $37,032 - $38,775 $30,413 Casein bound-- Found* ................. . 334,130 223,402 159,799 Value ..................... . $08,394 $22,023 $10,886 Glue bound-- . 263,883 434,006 ' 376,045 Value ........ .. . $8; 638 $15,852 $13,532 Total- Pounds ......... ... Value .............,.., Hot water-- Pounds ............... .. Value ..................... Cold water-- Pounds ................. 1 alue ................... .. CalcS mines . 0:033,648 . $259,136 . 3.301,466 . $133,850 . . 2.672,182 . $120,260 5,287,457 $285,325 2.828,820 $117,433 2,458,631 ' $117,012 4,750,545 $211,782 2.204,757 $05,026 2,545,788' $115,856 1,208,514 $77,454 610,023 $41,886 370,110 $28,128 248.907 $13,758 049,491 $35,368 183.353 $19,464 406,133 $10,104 1,349,025 $93,204 722,749 $52,966 480,531 $39,773 242,218 $13,196 626,670 $40,235 201,083 $29,070 ' 864,801 $11,160 0.318,301 $277,547 3.223.268 $139,313 S.005.033 $138,234 7.137.724 $322,583 8.712.588 $168,651' 8.425.136 $153,032 62 November 14, 1934 OIL, PAINT AND DRUG REPORTER* PROCEEDINGS OF THE Federation of Paint and Varnish Production Clubs THIRTEENTH ANNUAL MEETING f Washington, D. C., October 28 to 30, 1934 With 352 members, guests, and exhi bitors registered, the Federation of Faint and Varnish production Clubs held Its biggest convention on record in the Mayflower hotel, Washington, from Sunday, October 28, to Tuesday, October 30, jmder the ^presidency of F. C- Atwood, Boston. The previous at tendance mark was 276 at Chicago last year. Roy B,, Anderson, of the Brook lyn Varnish Company, was elected president to succeed Mr. Atwood, Running concurrently with the fed eration meeting wag ithe third Paint industries Show. Established In the same hotel as a feature of the 1232 meeting, this exhibition of materials and processes has attained extraordin ary growth and success. . Mr. Atwood, in his: formal address, commented on this growth and ex pressed the opinion that it might bo advisable to take steps to guard against the show's development to un wieldy proportions. He gave a report of the continuing closer relationship ` between the federation and the Na tional Paint, Varnish and Lacquer Association and spoke of the vital part which the federation was able to play by aiding the Paint Industry Recovery Board with its code and market re placement cost work, ' Mr. Atwood's address was as follows: President's Address It Is a very great pleasure to address you officially as your president at this, the thirteenth annual convention of the Federation of Paint and Varnish Produc tion Clubs. This pleasure Is very genuine and sincere, since it Is derived front at least two substantial sources. One can not but derive a great deal of satisfac tion in reviewing,. the,.accomplishments of an organization during a: year when there was much to be done and much to ac complish. These accomplishments came in part from the service; rendered by the constituent clubs in the further develop ment of'techn-leal' knowledge and techni cal information of value to the Industry as a whole, as well as in the furnishing of Information of value ;to the economic side of the paint Industry, all acting for the common good. ; in addition our accomplishments came from serving the other organizations in the industry when we were called upon for such service. A second source of pleasure to me. personally. Is the fact that having discharged to the best of my ability a duty which-you commanded of me when you honored me with the presidency of the association, I will shortly be free to relinquish that dirty to my successor and be free to assume my own personal activities and fortunes. According to the constitution and by laws of our federation, the president has a fourfold duty to perform. He shall act throughout his term as the executive offi cer of the federation. He shall also act as chairman of the executive committee. I have performed these ' duties through out the past year and little remains to be done along this line., The president shall also preside at the .annual meeting, and that is now being done, but, with such lieutenants as responded to ray calls throughout the year end particularly those who are so active and have been active for many months in making this convention a success, this duty is far lighter than It might otherwise be and far lighter than the job some of my predecessors have had to struggle under at a convention of this; kind. In this connection I want to refer par ticularly to the extraordinarily success ful activities of Edward .Maloney and V. C. Bidlack as chairmen respectively of the paint industries show and the pro gram committee. The extent of the re sults of their activities; are so obvious that I scarcely need mention them. The fact that such successful results as you observe can only come j as a result of months of active work and preparation must be recognized ahd commended. They can tell you better (than I how well their associates on those committees have worked with them, but there Is in evi dence, of course, the activities of the Baltimore dub, under the able leadership of George Sutherland, who are our hosts at this convention. As a final duty, the president is called upon to furnish an annual report. As I mentioned in the November, 1933, Digest, I have tried to anticipate this duty by furnishing you from time to time in the Digest, reports of current activities so far as it was possible for me to do so and so far as such results and activities could be furnished in a printed report There' are always bound to be many activities and results which take place within an organization of this type, which can best be accomplished with a mini mum of publicity. On the other hand, such activities and accomplishments as will inspire the constituent clubs of the federation to further and better efforts and will convince them of the unity of our organization and the .fact that many of our accomplishments are - brought about by such unity, then all possible publicity-should be given such activities and-this has been done, not only through my own reports but through the very capable, help and activities of your -vice president, Roy Anderson, Were it not for the constitutional re quirement that the president furnish an annual report. It would be better for me to concur with the statesmanlike-' works of Mark Anthony that we come here not F. C. Atwood The Presiding Officer to "praise Caesar but to bury him.'* This is in effect the burial ceremony of. your executives for the past year and little can be accomplished by reviewing our activities and accomplishments. History, however, has Its principal value In that. a study- of past events and the political motives behind the - policies actuating them often point our future paths. Lessons from the Past In addition, a brief study of immediate past activities may point more clearly to the deficiencies, omissions, and to some extent, lack of accomplishments by whfch we may be guided In the future. It is with that thought in mind that I would call your attention briefly to the chronol ogy of my administration and apologize for much that I would have liked to have done for the organization and hope to see accomplished In the future. ` The past year has seen the federation treading many new paths. We have blazed a trail of co-operative activities with other organizations in our Industry, the National Paint, Varnish and Lacquer Association, which I believe was well worth all the time and effort required in blazing such a trail. In spite of a per sonal modesty which hesitates to speak much about the work for the past year and which would -minimize the require ments of time and energy for such work, yet I feel it only fair to point out that your executives this year were called upon for work and have had to devote time to such work substantially in ex cess of that required of your executivea in the past. - It is probable that your future execu tives will continue to have to spend sub stantial amounts of time attending to their duties and furthering the aims and purposes of your federation. The honor you confer upon them, by choosing them as your executives, demands in return an unselfish and whole - hearted service. Such demands are no more and no greater than may come to anyone in the line of professional activities and the very fact that he has chosen a profes sion--and ours can certainly be called a professional.society--this very fact, I say, of his being a professional man, requires that be return to his fellowmen service in return for the knowledge and informa tion of his profession gained from others who have preceded, him in this profession. Hundreds' of years ago Francis Bacon very aptly spoke of this when he said: "I hold every man a debtor to his pro fession; from the which as men, of course, do seek to receive countenance and profit, so ought they of duty endeav our themselves by way of amends to be a help and ornament thereunto." I, therefore, commend, urge and even Suggest that it is the duty or each one in our federation to the best of his ability to return- in some way to his associated members, information and knowledge F.P.&V.P.C. Officers and Executive Committee Members--1934-35 President Roy B. Anderson, ol the Brooklyn Varnish Manufacturing Company, Brooklyn, N, Y. Vice-President R. C. Stark, of Pratt & Lambert, Inc., Buffalo, N. Y, facturing Company, of which his father is president, in 1915. He was president of the New York and New Jersey Varnish and Paint Plant Managers As sociation In 1930. Mr. Anderson and Miss Agnes A. England, were married in 1920 in Treasurer Clarence W. Clark, of E. I. du Pont do Nemours & Co., Everett, Mass. Secretary . George B, Heckel, of Philadelphia, Pa. Executive Committee V. C. Bidlack, of the McClostey Varnish Company, Chicago. J. F. McMenamin, of Felton, Sibley & Co., Philadelphia. J. F. Meyer, of the Steelcote Manu facturing Company, St Louis. P. M. Waldron, of the McClo&key' Varnish Company of the West, Los Angeles. Roy B. Anderson, president of the Federation of Paint and Varnish Production Clubs for the 1934-35 year, is assistant secretary of the Brooklyn Varnish Manufacturing Company, Brooklyn, N. Y. He is also president of the Wipon Corporation, manufacturers of reflnishes for furniture and floors, Brooklyn. He has been associated with the paint industry for nineteen years, Mr, Anderson was born in Brooklyn, . December 1, 1862, the son of William J. and Sadie M. (Wilson) Anderson. He lived In Brooklyn until 1924, He is a graduate, with the degree of bachelor of science, of Rutgers University, class of* 1914. Hla first employment was with the Brooklyn Rapid Transit Cor poration, in engineering work. He went with the Brooklyn Varnish Manu Roy B. Anderson New President, Federation of Paint and Varnish Production Club. Brooklyn. They have two children, Adelaide J. and Roy B,, Jr., and reside In Garden City, Long Island. Mr. Anderson Is a . member of the Garden City Masonic lodge, of the Delta Phi Fraternity, and of the Garden City Country Club. He . is . an enthusiastic golfer. through work in hie associated club oi *1 < committees and even to strive for servto ^ 1 in the national organization, in spite 4 I; 1 the possible time and effort it may requto 'fr > and certain .sacrifices which he may b i.. 3 called upon to make, -in return for bot \ the benefits oonferred upon him and tb / ' knowledge he gains as a member of ou^V federation. If everyone of our nearly <m thousand members can be actuated by tb-. spirit of service, we need have no hesits tion nor fear as to the future growth ao value, of the federation. r . -Work on Code Costs Returning now to the more specific fad related to this year's administration, TT . had no sooner stated to our associate organization that the federation was no1 ' ready, able and willing to contribute It full share in promoting the welfare of tb paint Industry, than we were called ujw by Mr. Trigg, as code authority, 'to assbt and in fact to carry out a great deal i work connected with the code and in par ticular with respect to the cost provision/ article XXII. Throughout a long serisS of conferences, committee meetings aw discussions and, in spite of serious culties which arose all along the waj these efforts finally matured and the re suits were published as the "Market Re placement Cost Schedule/' the first publi cation of which was on May 14, this year, at approximately the same time the pro cessing cost schedule was published. Whatever may be the final results and achievements of the NRA, we believe that there has finally been assembled and col-j lected for the benefit of the industTM working material which will serve as j guide and a starting point for future word on costs and costing. The very assembly by name of materials used In the produr- tion of products of the industry and thi collection of market replacement price., for such materials, which would serve-tW industry in all Its branches and in all parts of a country as large as oura, - re quired the assembly of information which I found previously had been available to no single individual or group, and in fact much1 of it was-very obscure. The publication of these data, while in some cases It worked a hardship on raw material producers because of the pub licity given to trade practices as regards pricing. In various pacts of the country, yet it certainly gives anyone who studies it a most complete picture of our industry throughout the country. Xn addition, by the very enumeration and segregation of raw materials used throughout the paint trade we see a picture of our industry In all its ramifications when we carefully studied this picture with some Imagina tion. For years we have attempted to have our industry adopt accounting methods which would show clearly, the processing: costs involved in manufacturing the various items which we, as an industry, offer for sale. The fact that it was ex tremely difficult to bring this about and it had not been brought about was very evident When attempts were made to col lect and assemble such processing costs. The tremendous variation in accounting methods .used by such companies as did keep careful costs emphasized many rea-1?, sons for genuine low bid figures. The f` philosophy of many of these accounting ' systems would put the user of one system substantially ahead of the user of another system In close competitive bidding. The fact was also clearly brought out that .. there were still a vast majority of com- ! panles using little or no accounting prac tice in their organization. 1 Still Some Gueseers In spite of these code activities, we even now hear of many companies oper ating wholly on the basis that they buy some material, make some goods, sell the goods, pay their bills and have some money left over, which they draw out at the end of a week or a month, and then they feel that they are making money, without considering the deterioration, the wear and tear, the future upkeep and all other overhead Items which must be con sidered by any company which is to be successful over a reasonable period of time. The very fact that we have collected some processing costs, and they have bees- pushed as part of the code of fair com petition, this fact, to that extent at least, has advanced our industry In its path of progress. In arriving at the information so pub lished in these cost schedules, we nave had an excellent example of the way in' which the various Individuals, as well as the associated clubs, can co-operate and furnish such information when requested. In particular. I have during the year, pointed out the way In which the Cali fornia club responded to an appeal for information and helped, us out with com mendable promptness. A very close bond has been established between the federation and the National Paint, Varnish and-Lacquer Association. This bond began from the moment we were able to show the president, Mr. Trigg,- the way In which we conducted our meetings at Chicago, as well as the scope and aim of the federation paint show, . Co-operative activities have been conducted in every possible way and through many different channels. It Is difficult to enumerate all of these activi ties apart from the code, but such con tacts -have been carried out not only by 3 OIL, PAINT AND DRUG REPORTER or icfl of tire be otb th j ut vnd: >n,f s-- pour executive officers but through the are utilized wholly for the promotion of excellent example of co-operative meet the best Interests of the paint Industry ings which many of our constituent clubs and particularly along educational and have had with local clubs of the National technical lines. Paint, Varnish and Lacquer Association, as well as with salesmen's clubB, I cer Extra Expenditures tainly recommend that these contacts be As an example of expenditures with fostered and promoted in ever increasing1 number not only for the better under standing and strengthening of the federa which we may be faced from time to time, the extra efforts we have had to put In on code matters and other items tion but for the greater benefit of the have this year called for some extra ex industry as a whole. , penditures, The Digest has had so much Change in By-Laws good material offered It that the. publica tion of this material has Increased our In order that such contacts may be expenditures beyond those of last year. fostered and in order further that our Because of the time spent on these other by-laws may be brought up to date and activities I did not have an opportunity dropping such sections which are out to visit all the constituent clubs which dated by the dissolution of the American should have been contacted. Such con Paint and Varnish Manufacturers' Asso tacts will in general take traveling ex ciation, your by-laws committee, after a pense on the part of your president or great deai of hard work, submitted to the other executive officers beyond what they federation a very acceptable proposed con can. expend from their own funds. stitution and by-laws. Because of some question of the legality of the adoption by the methods we proposed In the May issue of the Digest, the final adoption of these by-laws has been held over to this meet ing, even though most of the clubs have already signified their acceptance of them by their unanimous vote. I recommend, thererore, that the re port of your by-laws committee be ac cepted as quickly as possible in order that an even more necessary step may be taken now. So far as possible the con stituent clubs should adopt a more uni form constitution and by-laws which will bring them in line with the constitution There are probably many other matters which might be brought to your atten tion concerning the work of the past year, but whatever they are, you can be sure they have been undertaken and carried forward with the idea that they were for the best interest both of the individual members and the collective activities of the federation. Such ties as we have made with the National Faint, Varnish and Lacquer Association have been for our mutual benefit and for the betterment of the paint industry. We believe that at the beginning of the year, through our greater contact with a greater number of of the federation and of the other asso members of the paint Industry, the fact ciated clubs. The by-laws committee have that many paint companies directly or recommendations to make in this respect Indirectly were members of the federa and I believe- the constituent clubs should tion opened the way for them to accept adopt their suggestions at the earliest pos membership in the National Faint, Var sible moment, in order that the mechanics nish and Lacquer Association. ' of our federation may be simplified and brought into better working condition. It Is quite possible that the tables arc turned at the present moment. The na Paint Industries Show tional association has at least caught up with, if not gone ahead of us In this mat In pointing out the growth and achleve- ter of membership. There are but' one or ments of the Faint Industries Show, I am only pointing to sometnmg which Is ouite obvious to those of you present here. How ever, it seems a far cry back to the eve ning some time over two years ago, when I suggested such an exhibit to Messrs. Clark and Maloney, then of the New Eng land club. This suggestion, after adoption by the advisory committee at Pittsburgh, and the responsibility for the success of such a show, was, of course, promptly thrown back at me by the then president of the federation, Mr. Kortuzn. In a spirit of "now it can ho told" it should he said that we literally sweat blood to make the first .show In this hotel two years ago a success, first, because we sincerely believed in its value to the federation and to the paint industry as a whole, and second, because of the very sincere opposition to such a show which two localities left where there might still be constituent clubs organized for the federation. If there be such localities, we can do our best to help in their organiza tion. On the other hand, there are prob ably many companies now in locations where we have clubs who have no mem. bers in the federation. That will, un doubtedly, be an activity your new execu tives can foster. Mention should be made here of the new prizes offered during the year by Drugs, Oils and Paints and by the Paint and Varnish Production Manager* These prizes were accepted and applied to ac tivities whieh your executives felt would most benefit the federation, I can still think of one or two activities which might be very well promoted by the furnishing of prizes or awards and, if any of you we encountered in unexpected ouarters. know of any organization or group who The .show was a success at .that time be can furnish such prises, I am sure they cause of the combined efforts of a great can be used for the better welding to many members of the federation, hut, we * gether of the federation. made it a success literally, bv the skin ' Outside of the federation are a great of our teeth. We gained sufficient mo many technical men engaged In the pro mentum. however, to make the second duction of materials of benefit to the show last year a fairly substantial suc paint industry but not entitled to mem cess and, as a result, this year It might be termed an overwhelming success, It fs sometimes dangerous to limit the growth of any activity. On the other hand, nursery men know that the be^t fruit and the best flowers eoffie-as a result of careful and intelligent pruning and limitation, it is in that spirit that I now make the suggestion that no further attempt be made to Increase the size of our show. It is a little doubtful whether In the limited time at our command at our annual meetings, we can intelligently Study more than the forty-odd exhibits which we have in this year's show. It la in keeping with our original aims that so far as possible new developments in the paint Industry be -brought forward through the medium of this show and, to a certain extent, that small companies be bership in our federation because of their industrial connections. Many of these technical men are as sincere in their re quirements and desires as are our own members. They have gradually been welding themselves together in the paint and varnish section of the American Chemical Society,' This may perhaps be the best answer to this question but I look forward to some solution which will bring them in closer contact with ourselves - without serious change in our own objects and by-laws. I appreciate sincerely that there are many circumstances which would prevent certain individuals from thoroughly, appreciating the sound basis of our activities but I look forward to some method being found by which all technical and plant men engaged in the offered an opportunity of presenting to manufacture of materials and products the paint industry, In the slmpltest way used in the paint Industry, can be asso and at the lowest cost, new products ciated together. which they have to offer. This, then, concludes the personal .re I belfeve that this year's chairman will marks and suggestions I would make to recommend to you that future shows be you In this annual report No doubt it limited to this size and that so far as is not as complete as some might make possible they be selective with respect it but In any case, I believe It touches the to the exhibitors. In this, way we will high spots. With a final word of appre entirely and Anally eliminate the Impres- Bion which originated somewhere that our paint show was organized as ft racket to help out the federation treasury. The only racket your federation executives are concerned with is that the show shall bring the maximum of technical knowl edge and benefit to your membership, and at the same time be of maximum helpful benefit to our associates in the raw mate ciation to all those who have assisted unselfishly in this year's work and with a recommendation that all of you, when ever called upon in the future, serve in such activities as may come your way, I offer you this report and thank you sin cerely for the opportunity you have given me this year to serve the Federation of Paint and Varnish Production Clubs. rials field. I hope the .genuine and sin cere value of the paint show is finally accepted as a fact by all who know about It; and, If there be. any sceptics still George B. Heckel, secretary, in his report told of the increase in member ship by sixty-nine to a total of 959. His left, it should be the duty of every federa report follows: tion member to light the lamp of under standing In this regard. The Faint Industries Show will, un Secretary's Report doubtedly, show a profit this year, and it Is for your advisory committee to say At our last, annual meeting I reported how this profit shall be used, Admitting a total membership of 890, comprising:-- that the show may be financially profit Clubs, 765; associate members, 60; sub able to the federation is in no way an scribing members, 65, of whom 15 were admission that the show Is being under taken for the sake of this financial profit. It can hardly be said that as a sound business, proposition the show would ever be profitable to the federation, limited to Its present size. The actual or book profit comes about only because a great many Individual members of the federation have co-operated whoTe-heartedlv with your paint show committee, under the chair- foreign. . This year we have a total of 959, a net Increase of 69, the present membership being divided as follows r--Clubs, 820; associate,. 61; subscribers, 78, of whom 11 are foreign. . Because of the many problems presented by the requirements of the industry's code, which became operative only a few days manshiu of an able leader, and these after your last convention, this has been volunteer, unpaid efforts combined with a very busy year for your officers and similar efforts from friends of our's out committees, and especially for your presi side the federation, Includftig the trade dent, who has given unstintlngly of his magazines, who have given generously time on your behalf in that work. The In the matter of publicity and other help satisfactory performance of that difficult --all these combined efforts result In an but essential work has achieved for the excess of Income over expenditure for the federation a cordial recognition of Its undertaking. value and importance never hitherto ac If, however, we were to depend upon corded. The federation Is now recognized a paid staff or other professional means for promoting the activities of the Bhow, as a necessary and useful part of the general scheme. it Is verv doubtful whether we could en joy the benefits we now derive from the show without dipping heavily Into our other federation finances. I believe we must all consider, therefore, that such profit as Is made is gained wholly by the unselfish efforts of our own membership and our friends. Because of this fact It is up to u b to euard carefully the funds so accumulated and see that they At a meeting of your advisory com mittee, held In New York city in Febru ary, last, in conference with Ernest T. Trigg, president of the National Faint, Varnish and Lacquer Association, several new and Important decisions were reached, but by far the most important result of the conference was the co-operative spirit evidenced by your representatives, on the November 14, 1934 63 one hand, and, on the other, Mr, Triggs cordial rcognltlon of the willingness and desire of the committee to be helpful. It resulted also in a closer coordination and integration of the respective functions of the two organizations, New Prizes Provided During the past year, in addition to the standing award of the American paint joutmal for the "most constructive paper" among those presented at the annual meeting, two additional awards have been accepted on your behalf by the advisory committee--the Drugst Oils and paints award of $26, $15 and $10 respectively to those individuals who at the annual meet ing present in the heat manner the best resumes of their club papers; and the Paint and Varnish Production Manager award of the same separate amounts to those local club secretaries adjudged to have furnished to the Official Digest dur- George B. Heckel Re-elected Secretary much constructive work of a permanent character, at considerable personal sacri fice of time and thought The report of R. C. Stark, treasurer, showed the federation had spent $800 in excess of income on code work dur ing the year, but that it was generally in a good financial condition. Kenneth J. Howe, chairman of the constitution and by-laws committee, in his report, explained the new member ship classifications as follows: Active,--Active production or technical men employed by reputable firms. Contributing honorary,--Men formerly In such positions. Temporary."Teehnical men co-operat ing with constituent clubs, membership to exist only during period of such work. Honorary,--Persons who have rendered signal service to the federation. To avoid disqualification of present members, these provisions are not re troactive, according to an amendment adopted at the convention. The services of the federation to the industry were praised in an address on "The Code asllt Affects the Production Man", by Ernest T. Trigg, president of the National Faint, Varnish and Lac quer Association and the Paint Indus try Recovery | Board. In addition to the technical papers by the constituent clubs there was an open forum Tuesday afternoon devoted to discussion of practical problems. Among the matters considered were the following: Straining of enamels, paints and lacquers; minimum amount of mixing required for various pig ments before grinding; relative mer its of monel metal and stainless steel in varnish manufacture; relative merits of Seitz filter and conventional filter press; flooding of phenolic resin synthetic enamels; method of handling high percentage iron blue pigmenta tions in quick drying liquids; variation In characteristics of aluminum stear ate; reliability of panel exposure tests; code differentials and processing costs; equipment and obsolete material ex change among manufacturers; smalt orders, from stock paste colors versus small Individual grinds; house paint failures: minimum number of dryers required in modern paint or varnish plant. ' Ing the past year, the "moBt Interesting and valuable reports of their club meet ings, within the limit of 500 words.'* Both of these awards, It will be noted, are Individual--one to the men who best present their club papers at this meeting, and the other to the secretaries of local clubs, . The Official Digest has, as heretofore, been issued regularly every month, except Ing July and August and-1 believe that you will have noticed a considerable in crease in the practical value -of its con tents, Including the reports of club meet ings. You may have noticed that the cur rent Issue reached you earlier than usual. This was due to a recommendation of President Atwood, that it might reach you In advance of this meeting. Prizes Awarded The American Paint Journal award of $100 for the most constructive paper of the year went to the Detroit club in recognition of Its paper on "The Drying Qualities of Soybean Oil." Hon orable mention was' awarded to the ' Baltimore club for its paper entitled "Practical Mill Dressing Studies; De termining Factors Controlling Output and; Fineness- of-Grind." A, F. DeRavIgnon was the winner of the first prize for effective presenta tion of his club's paper. Second prize went to R. E; Troutman, St. Louis; and third prize, to Harry Feinberg, Balti Revision of By-Laws In the May issue the proposed new con stitution and by-laws were submitted to the constituent clubs, and in order to avoid delay the clubs were requested to authorize, by unanimous vote, suspension of the by-law requiring that proposed amendments be submitted to the clubs at least sixty days before the annual meet ing, and also to vote on the immediate ac ceptance of the new by-laws. The vote In favor was nearly, but not quite unani mous, therefore final action was neces sarily deferred until the present meeting. At the proper time the matter will be presented for your decision. It should be clearly understood that all of the changes recommended by your by-laws committee, acting in concert with the advisory committee, are designed`to ef fect the essential correlation of the work of the federation with that of the na tional association. It Is hoped and ex pected that your approval will be given to the proposal substantially as submitted. The by-laws committee, to the same end, at the suggestion of the advisory committee, has submitted to the constitu ent clubs a revised form of ioval by-laws', conformable to those' of the federation, the object being not only the obviously desirable one of conformity to those of the federation, but also the still more desirable one of insuring uniformity in the practices of the local clubs. It Is per haps unfortunate that it was necessary to submit a second request of this char acter so soon after the clubs had so loy ally revised their own by-laws In con formity with the recommendation of the advisory committee; but you will realize that no one at that time could possibly foresee the development that so quickly followed. The "New Deal" and the code, which came upon us out of a clear sky, necessitated many drastic revisions or thinking and practice, and the whole tend ency of this movement is toward closer co operation and more uniform practice, in other words, we are expected henceforth . to think rather in terms of the industry as a whole rather than of local units thereof. In the early Summer a resolution from the Golden Gate club, proposing a definite uniform advance in charges for special small quantities of products was submitted to the constituent clubs. The proposal met with general approval, but it was generally felt that it was a matter for action by the national association, rather than for this federation. It will, accord ingly, be brought before that body at their meeting which follows ours. As their reports will clearly demon strate, your officers and committees have served you generously and faithfully dur ing the past year, having accomplished more. D. N, Finck, Baltimore, wen first prize for excellence of reports by secre taries of local clubs. Edwin Edelstein, Cleveland, won second prize, and T. E. O'Connor, Chicago, third prize. The Northwestern club retained the golf trophy which was awarded by the Toronto club in 1930. The new officers were installed at the banquet Tuesday evening. Among the guests Introduced on that occasion were J. B. Lord, who, as president of the National Varnish Manufacturers Association, organized the plant man agers committee, the predecessor of the federation; John R, MacGregor, also active In the early days of the organization; Dr. H. A. Gardner, direc tor of the N. P. v, & L. A. scientific section; George Sutherland, president of the Baltimore Club; and Edward F. Maloney, chairman of the Paint Indus tries Show Committee. A feature of the banquet was a humorous skit, "Ernest Efforts", or "The Production Manager -- Twenty Years Hence," produced by members of the "New York Live Stock Com pany" and depicting the experiences of the "Neverlast Paint Company" Parti cipating in the skit were Kenneth Howe as a production man, A, E. Staudermann as impersonator of a stenographer, Robert Bonnev as a mechanical foreman, Ralph Everett as the president, Roy Anderson as a sales manager, Malcolm Pratt as a chemist, and J. McE. Sanderson and Robert Moore as salesmen. Satire approaching burlesque kept the audience in roars. The technical papers pre sented at the 1934 meeting of the Federation of Paint and Varnish Production Clubs are printed on the following pages. 72 November 14, 1934 OIL, PAINT AND DRUG REPORTER1 ably increases the number of attacking points for the alkali and water, at. the same time reducing the. sealing action of the Aim Itself. The vehicles which best resist the action of the water and alkali 4n the cement are for the most part poor wetting agents for pigments, and when they are used settling becomes a rather important consideration. Examination, after standing four Weeks, of the enamels containing plaster of parts, gypsum, and anhydrous calcium sulphate, showed very bad caking, Manipulations in formula to solve this difficulty were hot considered to be within the scope of this in the construction of swimming pools and concrete tanks. Paints applied over panels made in that manner, did not show to any better advantage than over the regular concrete panels <table 10). How ever, better results would undoubtedly be obtained If sufficient time were allowed before painting for the ruatlng reaction of the iron to take place. Very small blisters were noted on the last set of panels on IIIiu b which did not show failure In any other form for a long period of time. This fs possibly due to moisture condensation on the surface of the panels during the first days of immer- ing high viscosity. In order to arrive at painting consistency, considerable volatile reducer must be added. When such ve hicles are pigmented to opacity, the re sulting enamels have rather poor gloss and sealing properties under subsequent coats. It has been the intention throughout this paper to generalize--not to provide specific formulas---but to present the sali ent points established during this study of new concrete floors. The technical committee wish to i. the members of the Hew England dabij their help and co-operation In the prepad tion of this paper. We are also indellj to those raw material manufacturers'!' have contributed most generously of t` time, advice and materials. References: I>onald W, Howe, land Cement Association; Prof, Grl . Jones, Harvard University; "Industtl Chemistry/' Thorpe ; "Chemistry in Indfoj try," H. E, Howe, editor. Table 10 Table 7 Variations in Concrete (30% Pigment Volume Throughout) Primer Study Using Chlorinated Rubber, 100% Phenolic, and Oil-Modified Cumar Types -Pigment Volume Total Non-Volatile Volume Vehicle Coats Before Immersion 24 Hrs, 48 1 10 2 Hro. Week Days Weeks 5% Titanium Dioxide 3% Titanium Dioxide 10% Plaster Pans 5% Titanium Dioxide 6% Titanium "Dioride 10% Plaster Fare 6% Titanium Dioxide 6% Titanium Dioride 10% Piaster Faria ' 24 24 1 24 24 25 25 ' 25 : 25 ;1 1 l 1 1 Dark'Yellow G H H H H 2 Dark Yellow T QT H H H 1 Dark Yellow OK GT G G G 2 Dark Yellow T T OK OK OK 1 OK 2 OK JJ J JJ JJ J JJ 1 OK 2 OK TLTTT TLTTT OK 2 OK T G HJ X T G HJI X I OK OK O K OK Q I GI 2 OK wT T OK O K Vehicle No. 23 1 2 22 1 2 11 2 23 2 22 2 1 2 24 48 3 4 5 6 1 S 10 11 Immersion Hrs, Hrs. Days Days Days Days Wk, Days Days Days Regular Panels line OK ox OK OK OK OK OK G G H TT H OK OK OK OK OK OK OK OK OK G G Cl OK O K OK OK Cl K OK GT X X X. X X OK OK OK OK OE OK OK T T X X X' OK OK OK OK OK OK OK OK OK G qwv X OK OK OK OK O K O K OK OK OK OK T T OK OK ' 6K OK OK OK No Calcium Chloride OK OK OK OK OK OK OK OK O K OK OK OK OK OK OK OK OK OK OE OK OK OK OK OK OK OK O K GIV G.TV X OK T L L OK OK OK G OK OK OK T OK O K OK OK OK OE OK OK XX OL X G HIMV T GT X X X GT X X X GT 1 ; ? r Iron Filings paper. Those enamels containing slJex or titanox C could be broken up without sfon when the humidity was high and the enamel films were comparatively new and 23 2 OK OK OK OK O K OK OK O K OK OK G GG OK OK OK OK OK OK OK OK O K OK 0K'I undue stirring. , Better results were obtained with the regular concrete panels used in the last soft. The committee received at a late stage In their work pigmented enamels, of the 22 1 OK 2 OK O K OK OK O K GTV H.TV V X OK OK OK OK T T L LG X X XX XX series of tests (table 11) than at any other time. The explanation seems to lie In the fact that these last panels were pllollte type and of the vlnyllte type of resin, designed for use on new concrete fioors. Rather than make another table, 1 2 OK OK OK O K OK 0 K OK OK OK OK GVI X O K O K OK O K OK OK O K OK OK. G X G made when the weather was very hot, and these enamels were listed along with the It was not possible to trowel the concrete mixture as much as usual. The less a clear vehicles In table 1. The results of our tests are shown in table 11. In view Improperly .Trowelled concrete mixture is trowelled the weaker of the limited experimental work possible the concentration of calcium hydroxide Is with the pllollte and -vlnyllte types of 23 2 O K O K O K O K O K O K O K O K O X OK OK OK 0 K O K O K O K O k O K O K O K O K O K O K OK Table 8 Plaster of Paris Study 22 2 2 o K O X o K o K o K o K O K. o K o K G GTV X o K o K 0 K 0 K 0 K o K o K 0 K o K O K OK O o K 0 K 0 K 0 K 0 K 0 K o K o K 0 K OK OK OK 0 K 0 K o K 0 K 5 K 0 K o K 0 K 0 K OK OK OK Pigment Volume Total Non-Volatile Vehicle Coats Volume Before Immersion 24 Hrs. 48 Hrs. 72 His. 96 Hro. 1 Week 5% Fleeter Fans 18 1 2 OK OK OK OK G OK H OK H OK X G X (9 days) 10% Piaster Paris IS 1 2 OK OK OK OK OK OK OK OK OK OK OK, X (3 weeks) OK X (3 weeks) 2Q% plaster Paris IS 1 Slightly Dull OK OK OK OK OK X (3 WMlm) 2 OK OK OK OK OK OK X (4 weeks) 30% Plaster Paris IS 1 Slightly Dull OK o k : OK OK OK X (4. weeks) 2 Slightly Dull OK OIL OK OK OK X (6wIl) 23 2 22 1 2 2 23 -F* 2 22 ] 2 1 2 OK 0K OK OK OK OK Lean Mixture O K OK OK O K OK OK OK O K Q O K O K 0 K OK OK OK O K OK OK OK OK OK O K OK OK O K T T TfO GTIV X X O K OK O K OK OK OK OK T T G T GT n K OK OK O K OK OK OK O K O K OK OK OK OK O K OK OK OK O K T T TT OK OK OK OK OK OK Panels Three Months Old OK OK OK OK T T T T OK OK OK T T T T T OK OK T T T T T T OK OK T T . T T L L O K O K O K O K OK OK OK OK OK OK OK OK OK OK OK T T T T L GIV T T T T L X T T T T L X T For Control, Bee 18-A---Table 2, near and at the surface. [ Hence the su perior results obtained with these July panels of regular compositions, and also with those comparatively! rough panels which were purposely Inadequately trow elled (table 10). ! The good results obtained over a lean mixture of concrete (table 10) can be accounted for by the smaller amount of cement, and therefore calcium hydroxide, present resin the committee prefer not to express any definite conclusions regarding their efficiency on new concrete floors. One of the points of interest noted In connection with the tests on the vlnyllte type of vehlle was the fact that while the film Itself appeared to resist the ac tion. of the water and alkatl satisfactorily, It exhibited a rather poor seating action underneath the green paint stripe. These enamel films also had rather poor build Composltlon of panels (parts by weight) Rexuter--Cement, 1 port; sand, 2 parts; calcium chloride, 0.S part. Iron flllnsfa--;Iron filings, 7 parts; sand, 02 parts; cement, 31 parts. Improperly trowelled--Cement, 1 part: sand, 2 parts. Ho calcium chloride--Cement, 1 part; sand, 2 parte. . Lean mixture--Cement,, 1 part; sand, 4 parts. Aged panels (3 months)--Cement, 1 part; sand, 2 parts; calcium chloride, 0.3 part. Table 11 Clear Vehicle Check Test, Also'Tests on Vlnyllte and Pllollte Enamels Table 9 Before Vehicle Coats Immer sion 24 48 3 4 6 6 Hrs. Hra. Days Days Days Days 7 Days S Days 10 Days 11 2 ' Days Weeks Comparative Efficiency of Various Forms of Calcium Sulphate (30% Pigment Volume) i | Vehicle Coats Before Immersion 2-1 48 I ID 2 Hrs. Hra, Week Days Weeks 23 1 OK OK OK OK O K G G G H H VHIM X 2 OK UK OK OK OK OK OK OK G G G G 25 1 OK O K O K OK O K OK OK OK OK OK OK O K 2 OK OK OK OK OK OK OK OK OK OK OK OK 19 1 OK OK OK G H H V HV H X X X X 2 OK OK OK G G HV H V HJV X X X X 70% Anhydrous Calcium Sulphate 30% Titan. Dioxide l* l 2 70% Gypsum 30% Titan. Dioxide 70% Plaster Paris 30% Titan, Dioxide 18 ;2 IS 2 100% Titanox "C" is i 2 OK OK OK OK OK 0K OK OK OK OK T J OK OK OK OK 0K OK T L 0K OK OK OK I OK G T GI GJ QJ l I. gr QI GI GI X X I I X X X X IS 22 1 16 XE137 Vlnyllte 1 2 1 2 2 2 2 OK OK OK OK OK OK OK OK OK OK OK OK G H TT HJV X X X X X OK OK T GT GT HT HJJ0V X X X X OK OK OK OK OK G H HIV X X X OK OK T T GT GT HT HIVT X X X OK G G G H OK OK OK OK G H G H H H VHIM X HHHHH OE OK OK OK G QT HT HT HT HT HT OK OK OK OK OK OK G G G G G OK OK O.K OK OK G H H H X X OK OK OK OK OK OK GIV HIV HIV X X Iron filings, included In the concrete mix, Is supposed to give the flnal con-Crete surface superior waterproofing qual ities, the iron oxide .formed, forcing Its way Into ail possible voids In the con crete. thus making it more solid in com- ' position. This method is sometimes used and gloss even when two coats were ap plied. (The same characteristics were noted to a lesser degree with chlorinated rubber films.) The most plausfble explanation is the fact that the solids of this type of vehicle are highly ` polymerized with accompany- XE 227 Vinylite Flint!te R-I02-401 1 2 1 2 OK OK OK OK OK OK OK a G G H H: OK OK OK OK OK OK OK OK OK G G H HP HJP x- X OK OK OK a H H HMV X H OK X X HP OK X X HP OK X X iR'l OIL, PAINT AND DRUG REPORTER November 14, 1934 73 Pigment Dispersion eluded that the 12-by-SO three-roll milt operating on the standard -paste should yield 185 to 236 pounds per -hour. plants were largk, some medium size and others Bmall. : Not all' the plants co-operating were New York Paint and Varnish Production Club The technical committee of the. New `ark. production club unanimously de- Ided that the club's work this year nronld deal with a practical factory probtem which would be of real interest and ralue to the men in charge of produc tion, Many of the federation papers re'cefttly have had a tendency to emphasize jlchemlcal, rather than practical, producitloti' problems, Therefore, the subjeot of ' ment dispersion, or, as it is commonly Jed, pigment grinding, was selected as e of the year's problems. This was Elected because it is one of the most expensive operations involved in the manufacture of paint, and carries a large part of the factory overhead, due to ex pensive equipment and large power con[sumption. " Several now types of grinding equip ment have invaded the paint m&nufac- to this degree of dispersion. The fol lowing information was requested, to gether with a representative sample taken from the final grind on each test:--> 1--`Type of mill used. ' 2--Type of dressing, 3--Condition of dressing. _ 4---Number of pounds per hour ground. B--Temperature of paste during grind ing operation. 6--EtPM at which the mill' was oper ating, 7--Horsepower consumed. No specifications were given to the factories co-operating in the grinding tests on either speed of mills, type of mill dressing, or manner of operating, as it was desired to secure results of grind ing the standard paste under actual fac tory practice. jPive-roIler mill.--The three mills on this test were practically new and alt In good condition. The grind on No. 1 mill was considered but slightly finer than the standard and the grind on No. 3 mill was very slightly coarser than the standard. It was felt by the committee that the five-roll mill operating on the standard paste should yield 1,100 to 1,250 pounds per hour. j?ifty-palloti pebble -mill.--Only one mill could be secured for this test and no com parisons, therefore, could be drawn be-. tween operators. The yield of '48 pounds per hour compares fairly close to the 20-inch single buhrstone mill.' The very low labor coat Involved should not be overlooked.. Naturally, the yield per hour depends on the size of mill. Banbury mixer.---The only Banbury Im mediately available was the midget model. A large operator of both the midget and plant size Banbury informs the commit tee that there is entire correlation be- able to supply the exact horsepower con sumed by the various types of mills In these. tests. However, a number of the plants supplied the horse power consump tion of their mills, which had been period ically taken oni various types of grinds. The figures for| horsepower consumption for the various ] types of equipment used In table 2 were Carefully estimated by the committee from all available information. The figure used for the five-roll mill is the actual horsepower consumption taken dur ing the test grind. [Table 2 Relative Mill Efficiency (On ^standard parts) Lbs. Lbaper h.p. perhr. h.p.hr. ' Tandem buhrstone milt___-6%0ft 245 37.7 .. 'Single buhrstone mill.........33ftft 128 89.4 26" Tandem buhrstone mill..... 4ft 156 82.8 23" Single buhrstone mill.........-2Sftift 80 29 20" Single buhrstone mill.........2 2 68 29 Table 1 12"X3<T Three-roll mill... . 6' 210 85 Pigment- Teton. of vehicle Pounds ' paste, Horae- No. Mill. ratio. per hour deg. R.P.M. power. 80* tandem.............. . 70-30 245 . 140 45 6ft 1 301 single............... 70-30 87 210-230 ' 40 8ft 2 30' single................... .. . 70-30 90 108-111 .40 3 30' single,,,...................... 70-30 101 120 40 - 8ft 8ft 4 3CT single.............................. 70-30 128 120-140 40 3ft 6 30' single.............................. . 71-29 148 120-130 84 3ft l 29' tandem............................ . 70-30 60 4ft 2 26' tandem............................ 70-30 150 86-138 40 4ft K 26' tandem............... 70-30 102 180 45 4ft 1 26' tandem........................ . 70-80 196 180 40 4ft .1 26'. single.............................. 70-30 71 185-210 40 2ft i 26' Blngle............. ................ 70-30 79 140 45 2ft a 26' single............................ 70-30 128 176 40 2ft l 20' single.............................. 70-30 62 126 eo 2 2 20' single........................ . 108 120-180 39 2 8 0' stogie............................. '111 ' 120-140 39 2 4 20* single.............................. 64 140 49 2 1 12x30 roll........................... Li Mill roll,............................ 70-30 170-30 146 185 125 125 20-00-180 7 3 Mill roll............................... . 70-30 234 1 5 Roll mill............................ . 70-30 1000 ISO 7 70 10 2 5 Roll mill............................ , 3 6 Roll mill............................ . 70-30 70-30 1140 1855 70 74 10 Pebble mill. 60 gal........... . 03-87 48 S4 2 Midget Banbury......,. . 70-30 2.6 Production Banbury*.,. . 70-30 150.0 Colloid mill, lab, size-- Clearance .030................ . Clearance .020......... . Clearance .018......... . 70-30 70-30 70-30 81.0 130 40.0 145-155 28.0 160 8450 8450 8400 fffttt Colloid milt prod, size-- Age of Closeness to . ... Pounds paste her dressing. No. 3 North std.. Average for type o 80 hours..................... OK 245 200 hours................... Slightly finer 300 hours..................... OK ' 110 170 hours.................... OK ' 200 hours........... Slightly finer.' 100 hours................... OK ' Poor condition........... Slightly finer '- 175 hours.................... OK OK - 169' 350 hours..................... Slightly coarser . 200 hours................... 176 hours..................... OK OK 850 hours................. .... OK 800 hours..................... Slightly finer 92 New dressing..,.,.. Slightly coarser New dressing............. Slightly coarser 83> 150 hours................... Rolls fair condition. OK Rolls fair condition. , OK . Rolls fair condition. . OK Rolls fair condition. . Slightly finer 188 Rolls fair condition. . OK Rolls fair condition. , Slightly coarser . , 1168 . OK . OK 48 2.6 . OK 156.0 . Slightly coarser . OK . Finer (North std. Nos. 1-2) BO-Oal. buhrstone lined pebble mill ...1.......... . %2 48 24 Five-roll mill ...j.................... ,..10 1176 117.5 .Banbury midget !...... 2.6 Banbury production ... 105.0 Colloid mill (lab: Size) clearance 0.030"......... . 81 108 clearance 0.020"........................ ft 40 S3 clearance 0.0IS" .................... . "ft 28 84 Colloid mill (production else) clearance 0.0057 .......................... 1ft 120 80 clearance 0.010" ............ 1ft 328 212 It is interesting to note from table 2 that the production and horsepower con sumption of ail types of mills show a very similar ratio with the exception of the five-roll mill. The committee is not in position to say:: that this same comparison will exist wlth|`all types of pigments and vehicles. ' ' Wetting Agents The subcommittee conducted consider able experimental work to determine if possible the vblue of wetting agents as an aid to dispersion. The first series of tests utilized the same vehicle and pig ment as the faietory testa. The materials used as wetting agents were, 2 percent benzoic acid, 2 percent crotonic acid, 3 percent vatsol M, and 5 percent blown linseed oil, all;based on the solid content Clearance .006..-............. . 70-80 Clearance .010............... . 70-30 320.0 140-150 1720 628.0 120-125 1720 1ft 1ft . OK (very slightly coarser) , Coarser (North std. No, 4) of the vehicle.: The wetting agents were incorporated * Results on production Banbury estimates from midget mixer run. In the vehicle-and the paste mixed in a small Werner & Efieiderer mixer for ten minutes. The pastes were then run turing field in recent years. The com mittee believed it would be very advan tageous for the production man to have definite Information on the relative values of such equipment in addition to that supplied by the mill manufacturer. . The selection of vehicles with good wet ting properties and the use of dispersion or wetting agents suited to the particular pigment In question wag considered a very important factor in reducing grind ing costs, and the committee believed it advisable to include some work along this line. It was felt that this problem would offer an excellent opportunity to test .the practical value of -the North standards of fineness (American Paint and Varnish Manufacturers' Association, Circular No. 423, November, 1932, "New York Club Paper Standards for Fineness of Pigment Grinding"), and it was decided that the subcommittee would use one of the North standards in its grinding tests. The subcommittee appointed to carry : out the work on pigment dispersion fully realized that the subject could not be : covered In one paper, as it required more - work than could possibly be accomplished .la one year. It was felt, however, that a definite start could be made and suffi cient data gathered for a preliminary paper. . Outline of Problem' i Paste Used The subcommittee conducted grinding i; tests, using one pigment' and one vehicle ; on as many types of grinding equipment ' as were available. The pigment selected . was tttanox C, and the vehicle a 27-gallon ester gum varnish containing 54 percent of solids. The oil content consisted of 86.75 percent linseed oil. The varnish con tained 0.5 percent lead and 0,26 percent Experimental Data Thirty-Inch tandem--Only one' test was obtained on this mill; the output, 245 pounds per hour, with 46 RPM, compares favorably with that of the other mills. Thirty-inch single mill--The low yield on No. 1 mill was apparently due to im proper feeding and improper mill adjust ment, indicated by the temperature of paste and grind finer than standard. The low yield Qn No. 2 mill was apparently due to the type of dressing. The dress ing of this mill was five furrows 3 Inches wide carried to 4 inches from edge of stone; veins 3-33 inch wide and 1-16 inch deep carried to edge of stone. The three mills showing the largest production were dressed as follows:--Twelve furrows 2% inches wide running within 3 Inches from edge of stone; veins 1-16 inch wide, % inch deep and % inch apart running to edge of mill. The somewhat lower yield on No. 2 mill was undoubtedly due to underfeeding, as the final paste was slightly finer than the No. 3 North standard, The committee draws the conclusion that a 30-inch mill properly dressed and properly operated should yield between 128 and 148 pounds per hour when oper ating on the standard paste. Twenty-six-inoh tandem mill. -- The low yield on No. 1 mill was undoubteiy due to poor condition of dressing and improper feeding Indicated by the fact that the grind was slightly finer than the standard. Mills No. 2, 3, and 4 were similar to each other, all differing from No. 1. It was believed that the slightly high yield of No. 4 mill was accounted for by a slightly coarser grind. It is concluded that 150 to 162 pounds per. hour is approximately the correct yield of standard paste to expect from a twenty-six-inch tandem mill properly op tween runs on these two sizes. He states that if the midget type produces 1.21 pounds paste in twenty-eight minutes, the plant equipment will produce 156 pounds paste in twenty-eight minutes. While the Banbury ground the standard paste to desired fineness, it is the opinion of a large manufacturer using this type equip ment that It is unsuitable. The cost of the Banbury equipment and operation makes it unprofitable for ordinary paint work or enamel grinds such as the above. The advantage of the Banury is In the grinding of pigment In synthetics, espe cially those containing volatile solvents, and.for nitrocellulose lacquer gloss pastes. In such pastes perfect dispersion is ob tained even on difficult pigments, such as iron blues, ' Colloid mills.--The colloid mills used were the Effenbaeh mills, The laboratory type of bronze has a capacity of 1 to 10 gallons per hour. Dimensions, 17 by 17 by 38 inches, using a ft horsepower Uni versal motor for HO volts. The gap Is adjustable and can be locked at any required setting and permits the mate rial to be circulated for batch mixing. The turbines produce immense pressure, which forces the material through the grinding gap. The production type Effenbaeh colloid milt has a capacity of 10 to 75 gallons per hour. It requires a 11/3 horsepower motor at 220 volts, 8-phase, 60-cycle. The amperage Is 4.1 running at 1,740 K. P. M. The grinds on the colloid mills as shown In table 1 were of considerable interest. It was found possible to use the standard paste containing. 70 percent pigment and to disperse to a satisfactory fineness at a yield of 120 pounds per hour. Another large user of colloid mills of through a three-roll laboratory mill. None of the above wetting agents showed any appreciable increase in dispersion. The pastes were examined after mixing as well as after grinding, and it was concluded that the vehicle used in the testa was a Yery good wetting vehicle and the addition of further wetting agents had very little effect ' i A second series of tests was conducted using the following vehicles: (1) Standard varnish as previously de scribed. (2) A varnish of the same composition and cooked in approximately the ' same : manner, but containing no metallic salts; acid number 7-6- (S) A varnish of approximately the same . resin and oil composition, no metallic salts, cooked with careful manipulation and' using low acid oil to produce a product with an acid number of 3, 4 (4) Refined linseed oil, acid value under (5) A mixture of 2 parts of refined lin seed oil, 1 part of blown linseed oil. ' (6) A mixture of 96.15 percent refined linseed oil, acid value 8, and 3,85 . percent benzoic acid. All pastes were mixed ten minutes in a laboratory mixer and ground on an 8-inch laboratory buhrstone mill. Each test was carefully checked to the No. 3 North standard * The following table shows the results of these tests:: ; Table 3 Re lined (Pounds paste per hour) Effect of Variations in Vehicle on' Grinding Efficiency - lime, Introduced during the cooling. The viscosity of the varnish was H on Gard- tier and Holdt viscosity tubes. The acid value of the varnish was 7.7, A 79-30 pigment vehicle ratio was used for grind ing. The mixing operation was carried out in a standard type lead mixer. Mills Investigated The subcommittee was fortunate In se curing the co-operation of twelve paint manufacturers in the metropolitan area. The following equipment was utilized In erated and in good condition. Ttoenty-six-inch single mill test,--The two mills In this test were dressed accord ing to the usual practice :-r-Ten furrows, 2J4 inches wide, running to within 2% inches to 3 inches of the edge of stones; veins, ft inch apart were 1/16 inch wide and between % Inch and 1/16 inch deep, cut parallel to deep edge of furrow and running to edge of mill. The stone adjust ment on No. 1 mill was apparently not correct, as evidenced by the Increased temperature. It was felt by the commit Standard vsh (l) 44.8 Special vab (2) 34.5 Special vah (3) 16.6 the Premier type telle the committee that it would not -be practicable to run to the above standard of fineness in the colloid mill. He states that It is too- delicate an operation- and that varnishes of the type used above have given poor re sults, ' Refined oil (4) Paste was too thick to grind. and blown Refined oil oil (5) benzoic acid (6) 38.5 41.0 Discussion No. 2 shows, a decrease of 23 percent In production, compared with the standard. This decreased mill production Is believed to be- due to the absence of the metallic soaps present in varnish (1), which con sist of 0.5 percent lead and 0.25 percent the tests:-- tee that a twenty-six-lneh mill, If in 30-inch tandem buhrstone. 30-lnch single buhrstone, 26-inch tandem buhrstone. 26-inch single buhrstone.' 20-inch single buhrstone. 60-gallon pebble mill, buhrstone lined, flint pebbles. 5-roll, 12 inch by 30 inch steel mills. 4-roll, 12 Inch by 30 inch steel mills. Banbury mixer, . Colloid mill, laboratory size, Eppenbach. Colloid mill, production size, Eppenbach, good condition, and properly operated should yield between 75 and 8ft pounds per hour of standard paste. Twenty-inch single mill. -- The wide variation m the yields of'the twenty-inch mills can only be accounted for by the difference in dressing. Mills No. 1 and 4 were dressed as follows j--Ten furrows running to within 2 Inches of edge of stone; veins 1/16 inch wide, ten between furrows and about 3/32 inches deep run ning to within % Inches to ft inches of edge of stone. No. 2 and 3 mills had There was no production size Banbury the bottom stones dressed as above, except mixer available. However, the specified the veins were cut to the edge of the tests as well as some additional tests stones. The top stones of these mills were carried out on an experimental lab had the furrows feathered out to the edge oratory size Banbury mixer. of the stones. The veins were the same Procedure as the bottom stones. The paste from No. 2 and 3 mills was .slightly coarser In order to make the tests as uniform than .the standard, although the com as possible, the titanox C was ordered in . mittee considered it passable. It was felt one lot and distributed in the various by the committee that the type of dress plants. The total amount of varnish re ing used on mills No, 2 and 3 was highly quired was made at one time and care desirable from a production standpoint for fully analyzed and then distributed. medium grade architectural enamels, etc., Everyone co-operating in the tests was but could not be used for the finest In requested to mix the paste in a standard dustrial finishes. ,,. type lead mixer for one hour, The mills Three-roll 2Q-&1/-30 mill. -- The low were to be warmed up under normal oper yield on No. 1 mill was undoubtedly due ating conditions at least one hour before to faulty operation, The increased yield starting the test. The number three of No. 2 mill la accounted for largely North standard was selected for the de by efficiency of operation and very good sired fineness, and each operator ground condition of rolls. The committee con- Conclusions on Grinding The grinding problem involved in these . tests was comparatively simple. The com mittee purposely selected a relatively easy grinding pigment and a good wetting ve hicle UP. that no unusual difficulties would be encountered by the operators in obtain ing uniform results. However, entirely too great a variation was shown on nearly all types of equipment. As It has been previously pointed out, it was the opinion of the committee that four important fac tors contributed to this lack of uniformity in results;-- 1--In correct type of dressing. 2---Worn condition of dressing, 3--Improper adjustment. 4--Imprloper rate of feed. All of these factors are entirely within the control of the production man The subject of milt dressing was ably discussed by the Baltimore club at the 1933 conven tion (American Paint and Varnish Manu facturers Association Circular No. 445). Improper rate of feed refers to a frequent tendency of operators to allow the paste in the eye of the mill to run dry. This not only cuts production but if not Immedi ately filled may necessitate renewed mill dressing. It is felt that the plants which conducted these tests fairly represent the paint plants of the country; some of these lime, introduced during the cooking of the varnish. Varnish (3) shows a decrease of 65 per cent in production. This decreased mill production is; believed to be due to the poor netting properties of the vehicle which in addition to lacking metallic soaps also had a low acid value. The wetting properties of the refined linseed oil were so poor that the paste would not feed through the mill. The fifth test using 2 parts of refined oil and 1 part heavy-bodied blown linseed oil with an acid value of S showed a de creased yield of approximately 15 percent, but is infinitely inferior to the refined oil alone. The acid value of this vehicle was 3.3. The sixth test using approximately 4 percent benzoic acid in refined linseed oil showed a ylejd only 3.5 percent less than the standard. It is interesting to note that 4 percent benzoic acid gave even bet ter wetting than 33 1/3 percent blown lin seed oil. The committee feels that this series of tests indicates the value of wet ting agents in a grinding vehicle, and plans to continue the work on broader lines during the coming y-'sarB. Summary In summalrlzing the above work the committee wishes to point out to the pro duction men the possible economies to be 74 November 14, 1934 OIL, PAINT AND DRUG REPORTER ' effected in the grinding1 department by the proper selection of vehicles, the use of wetting or dispersing agents, thorough * mixing, adequate mill dressing and proper operation. Attention is also called to the relative mill efficiencies as shown in tables 1 and 2. Grinds on the newer live- of each type of stone mill used Is largely determined by the skill of the operator in controlling his grinding operation. It is very apparent from the results of these tests that many paint plants can re duce the cpste in their grinding depart ments from 25 to 50 percent. Since grind to decrease as the turpentine was in creased and the linseed oil decreased in the priming coat The difference,in results with primers 1-1, 1-?, and 1r8, however, was so small that they may well be con sidered equally serviceable. Reductions 1-4 and 1-6 were on the whole distinctly that for woods like redwood and red cedar, Which absorb paint oils quickly, a slight]- lower' pigment concentration may be ai visable In order to avoid unduly lor spreading rates and difficulty with paint ers1 laps than Is appropriate for sueh woods as Norway pme, southern yellow roller mills, colloid mills, and the Ban ing costs are one of the most expensive Inferior, although on redwood 1-4 was still pine, and Douglas fir. Nevertheless the. bury were Included as of special interest at this time to the production men. A study of table 1 shows that the efficiency Items In the factory budget, it behooves the production man to give careful con sideration and study to this department. proving nearly as good as 1-3, The re ductions of series 2 when used in two-coat work revealed a definite superiority of present Indications are that a single ommeqdatlon for reducing priming cost* .] for. all kinds of woods is entirely practical the reduction 2-1, made with linseed oil- and probably advisable. The "easily and no turpentine/ over those In which paintable" woods probably differ from the there was linseed oil and turpentine. Of "difficultly paintable" ones chiefly in do* Priming-Coat Reductions for Painting New Wood Surfaces the two reductions of series 2. used for three-coat work, the one containing more grees of sensitiveness to departure from the optimum reduction, that is, less dam-, oil and less turpentine proved somewhat age to the serviceableness of the costing Northwestern Paint and Varnish Production Club _ (F. L. Browne, for the Test Fence Committee) The principal object of this study is to discover the optimum priming-coat reduc tion in applying common house paints to softwoods and tp determine whether the priming coat should be reduced differently, according to the nature of the softwood painted. The experiments were described In detail in a. first progress report pub lished in American Pafnt anci Varnish Manufacturers' Association, scientific sec tion, Circular' 404 ; 596 (1931), A second progress report appeared In Federation of Paint and Varnish Production Clubs, Offi cial Digest No. 121, 1065 <1935)' and a third report in American Paint and Var nish Manufacturers' Association) scientific section, circular 445, 454 (1933) ; Oil , Pa ii-t t a j j d Du it g Re p o r t e r 124, 6S (Nov. 36, 1933) ; Pa,int, Oil and Chemical Review 95, 67 (Nov, 2, 1938/. ' Four woods and three paints were used In the experiments `on priming-coat -re duction. The woods were Norway pine, northern white pine, western red cedar and redwood. The paints 'were white lin seed oil house paints that differed only In the nature of the pigments. In one the pigment was entirely basic carbonate white lead, in the second the pigment contained 60 percent by wefght basic car bonate white lead, 30 percent lead-free zinc oxide, and 10 percent magnesium silicate: and the pigment of the third contained 60 percent tltanox B, 30 percent lead-free zinc oxide, and 10 percent mag nesium silicate. Al] three paints were made in the form of semipastes, one gal lon of which consisted of 0.436 gallon of pigment and 0.565 gallon: of linseed oil. For the various priming coats these paste paints were thinned with linseed oil, tur pentine, and paint drier, as indicated in tab's. 1. Some of the painting was done in two-coat work and some in three-coat work. For the final coat In: two-coat paint ing the puste paints were thinned with 0.655 gallon of linseed oil, 0.036 gallon of turpentine, and 0.036 gallon of drier per gallon of paste paint, making paint of 26.4 percent pigment volume. For three- coat work the second coat wag made' by mixing 1 gallon of paste paint, 0.213 gal lon of linseed oil, 0.437 gallon of turpen tine, and 0 036 gallon of. drier, making paint of 35 9 percent pigment volume; for the third coat the mixtures were 1 gallon of paste paint, 0.946 xallon of lin seed oil. M36 gallon of turpentine, and n.*36 gallon of drier, making paint of 22.4 percent pigment volume. ` . tested on subdivisions of the same boards are grouped together. Priming reduction 1-3 was repeated on each set of boards In order to reveal differences due to char acteristics of the boardB in different pan els of the same wood and to furnish a basis for comparing priming procedures tested on different panels. - Since the third' progress report was written there have been' two formal In spections of the fence, one in June and the other in October, 1934. At the last inspection the coatings were 38 months old. The writer also inspected the fence, in August, 1934. In company with a group of visiting paint technologists, but records were not made at that time. At 38 month's the coatlngn on the south side of the'fence were failing in Integrity sufficiently' to, reveal distinct differences caused by the variations in prlmlng-coat reduction. On the north side of the fence, however, the coatings remained Intact except for cer tain local eases of moisture failure men tioned in the third progress report. The present report is concerned chiefly with the trends in durability of the coatings on the south side of the fence. Effect of Priming-Coat Reduction . Table 1 records the ratings of the coat ings in Integrity at age thirty-eight months, the durability in months of those coatings that had become unserviceable and vfere in the period of paint neglect, and an arbitrary estimate of the dura bility of those coatings that still remained serviceable. The estimated durabilities are based on the assumption that coat ings rated "Poor pius*' at the last Inspec tion will remain serviceable three months longer; those rated '*Falr minus/' six months longer; and those rated "Fair, nine mbnths longer. The estimated dura bilities calculated in this way greatly facilitate discussion of the results' but they are far from accurate predictions of future behavior. Less than one-third of the durabilities recorded in table 1, however, are estimated in this way and for that reason the relative merits of the various priming procedures are as. clearly revealed as they will be when the teats have continued until all of the coatings are unserviceable. In table 1 the priming-coat reductions numbered 1-1, 1-3, 1-8, 1-4, and 1-6 were mixtures in which the concentration of pigment Is suitable for three-coat paint- superior. ' may be expected if the painter falls to It should be noted that, In three-coat work, reduction 2-2 was slightly superior to 1t 3 in t^e cases of wnlte lead and use the optimum reduction in painting redwood than will result when painting Norway pine. tltanox and zinc paint and qllgthly in ferior in the cq.ee of .lead and zinc paint. Order of Failure on the Four Woods q 0 In other words,' reductions 2-2 and 1-3 The order of failure of the three paints Ap on the whole proved about' equally service op the four kinds of wood is indlcated'ia able. The pigment volume in 1-3 was 22,2 table 2, which records in each case the percent (of the nonvolatile), and thO ratio average durability for all 'priming-ceat re of linseed oil to turpentine by volume was ductions of the white paint. Certain about 2,6. In 2-3 the pigment volume was physical properties of the boards of each 30.2 percent, and the ratio of oil to tur of these woods, were reported in table 1 of pentine 3-4. Reduction 1-4, which was the third progress report. On cedar, white | st. Inferior to 1-3 with all Paints, had a pine, and Norway pine the average dura- ' st. pigment volume of 29.4 but a ratio of oil btlit? of the three paints was inversely Fs to turpentine of only 1,4. It seems, there proportional to the average density of the iv2J; fore, that the ratio of oil to turpentine Js boards of those species. The durability on more significant, at least within the range redwood, however, was about as great as of desirab'le reductions, than is the pig- It was on red cedar although the density ment' volume. Apparently a good primer of the boards was nearly the same as the should have at least two and one-half density of the white pine. These results times as much linseed oil as turpentine are entirely in accord ' with results pre and It is questionable whether there need be any turpentine in the primer at all. The pigment volume in a good primer for three-coat painting presumably may be viously reported by the Forest Products Laboratory (Federation of Paint and Var nish Production Clubs, Official Digest No. 95, p. 106 (1930) ). p tT lo al tt Table 2 ai a: Order of Kind of wood. . RvdWood ................................ Rod cedar.............................. White pine .................................. Norway pine ..................... Failure Density of wood Lbs. per ou, ft. 2a.2 21.6 26,9 28.9 of Paints on the Four Woods ----Average durability in months of coatings of:- -- . .. white lead paint. 38.4 38. S 35.6 80.0 ' Lead and zinc paint. 38.S 37.4 33.6 se.s Average Tltanox and for all zinc paint. three pah 88.8 38.8 40.6 38.0 80.5 33.2 24.3 30.3 m tt .tl * pf U pl te uf al anywhere In the range of 20 to 20 percent but for two-coat painting practical'con siderations require that the pigment vol ume be fn the upper portion of this range. Order of Failure of the Three Paints The relative behavior of the white lead paint, lead and zfnc paint, and titanox and zinc paint during the first two years fo Reductions for Different Woods of exposure was described In detail in The notion has long prevailed that the optimum priming-coat reduction differs according to the kind of woed painted. There is no published evidence In support of such a belief, and Its soundness may well he doubted in view of the contradic tory recommendations often made when writers try to give specific priming-coat formulas for different woods. The data, of table 1 suggests the same optimum prlmlng-coat reduction for all woods, namely, reduction with linseed oil and little or no turpentine. The results are not at all consistent with the view that the reduction for red cedar or redwood the third progress report. Since that time all three paints have been, chalking freely enough on the south side of the fence to dislodge most of the remaining dirt, and the white lead and lead and zinc points at thirty-eight months were nearly as clean and white as the titanox and zinc paint. On the north side of the fence the titanox and zinc pafnt .still remained almost as clean and white as it wag on the south side, the lead and zinc paint had thrown off most of the dirt previously accumulated and was only slightly more gray than the tltanox ana zinc paint, but the white lead paint still retained much dirt, was very spotted in T 1 discoloration, and was still rated "Bad" Table 1 in appearance. On the south side of the fence at the Results Obtained with Different Priming-Coat Reductions and with Aluminum Primer After Thirty-eight Months, ' Facing South . Figures for durability (enclosed in parentheses) era estimated on the assumption that the additional life of coatings stlU serviceable at the last Inspection will be nine months if last rated "Fair," six months If last rated "Fair minus," and three months If last rated "Poor Plus." last inspection the characteristic reticu late cheeking of white lead paint was readily visible on close examination with out a magnifying glass. The checking was then undoubtedly deep. The lead and zinc paint was likewise checking visibly and the checking was gradually Reference: Prlmlng-coat reduction * Number :: Rating in integrity at ^8 month*. and durability on -- : Average nuaber ---------- ---------'----------------:of ovate::------ -- ------- ---------- ------- - ----------- ------------- --- ---------- {durability '1 gallon of paste paint nixed wlth-jof paint:: Norway pine : White pine Red oedar : Redwood on all " -------------------{applied -- ! ----------J ----------------------- woods JLlneeed Turpentine:Palnt:Pigment Integ- :Dura- :integ- :Dura- ilnteg- :Dura- ilnteg- :Dura- i oil :drier: volume : rity :bllltyi rlty ;blllty: rlty Ibllityi rlty fbllity: becoming reticulate. The titanox and zino paint remained.free from checking. Disintegration of the white lead paint proceeded entirely by crumbling. The lead and zinc paint and the titanox and zino paint disintegrated by slitting or cracking followed by curling and flaking. V t) : Oal;" dal. Cal.: Peroent months: ;Uonthe: : Ifonthe: .Months: Months Chalking of the tltanox and zinc paint had reduced the thickness of the film enough to impair the opacity observably White lead paint: although very close inspection was nec essary to'disclose that fact. There had, 1-1 1-2 1i4*3 1-5 : 1,168 : 0 :o.o4s: : 1.0$ : .292 : ) .0+1: : .'*75 : 563 : .oj: .728 : : .027: 10 t .675 : : .oil; -J aluminum primer 20.0 21.1 22.3 29.4 43.4 3 ri Poor 36 : Poor 36 Poor* 41) : Poor* (*1 1 39.5 3 1: .Poor 36 : Poor- 36 : Poor* ; poor* 41} i 39.0 3 l: Poor 36 *. Poor- 36 . Poor* [41) ; Poor* (41 * 39*0 3 :: Foor- 34 : Sadi- 34 : Poor 38 : Poor* (41) : 36.6 3 l: Bad 26 i Sad- 26 : Bad* 34 ; Poor- 36 s 31.0 3 :: Falr- (44) : poor* (41) . Fair- (44) : Falr- {44J : *3*3 however, been no washing of the chalk over the black' identification numbers with which* the teat areas were marked. The extent to which disintegration of the three paints had gone after thirtyeight months may be seen by referring 2-1 : .655 : 0 : .OJ6: 26.2 2-2 : .*37 : .292 : :..026: 30.2 1-3 : .9*6 : .563 : : .036: 53.3 2-3 : .219 : .583 : .023: 35.6 2-2 ! .437 J .292 ; : .026: 30.2 2-3 : .219 : -.563 : .023: 35.6 2 : : Bad 26 : Poor 2 ;: Bad- 26 : poor- 3 Bad '26 ; poor 2 Bad 24 l Bad* 3 ri Bad 26 : Poor 3 Bad- . 24 : Poor- 36 : Poor* 36 : Poor 38 : Poor 34 : Poor38 : Poor* 36 ; P.oor (41) : Poor- 38 : poor- ,3 : Poor : Bad* (Si) : Poor 38 ; poor 36 : 36 t 38 : 36 t ' 38 1 38 i 35-6 34.0 35-0 :8 34.0 again to table 2.' On redwood and red cedar they were proving practically equal in durability but on white pine and Nor way pine the titanox and zinc paint had disintegrated earlier than the other two paints. ' As a result there was a greater variation in durability on different woods with the titanox and zinc paint than with Lead and tine paint: l-l 1-2 1-3 1-4 1-5 :1.168 0 ! :0.045k 1.06 ; 946 : :.292 ; .041: .583 ; .036: -475 : .726 : .027: 0 : .875 5 : .014: aluminum primer 2-1 2-2 1-3 2-3 2-2 4* -J .655 : 0 : .036: ; ;,437 .292 l .OZ61 ; 946 J :.219 t l :.437 .583 .583 .292 1 ...00m3186i:: .219 : .583 ; >023: Tltanox and elno Mint: ` 20,0 21.1 22.3 29.4 43.4 :3 :' 3 :3 t3 :3 3 28.2 30.2- 2325.-36 30.2 35.6 :: : :i ; 2 2 3 ' 2 3 3 } :ri Poor 38 Poor :: poor 38 . Poor- :: Poor : 38 : Poor- t : Poor : 36 ; Bad :: Poor 1 36 Bad- t1 Pair- : (44) Poor- i::: v1 :: Poor- Bad Poor* Bad Poor : : ::: 34 30 (41) 31 38 if Poor i 38 * Poor: Bad* Poor. Bad : Poor- i Poor- 38 : Poor* : 141) 34 ; Poor* ; S+1! :34 : Poor* : (*) 30 : (41) :26 : poor t 38 33 fair- i (44) 30 29 32?6 : Poor* : Poor :i Poor Bad* :::: (41) W 38 26 29 : Pwr : 34 Si) : Tmr- i K Fair- : Fair-* i li4! ! Pair- i tt*l ! Poor* : (41) : :Poor i 38 : Fair : (47) ' 4o.3 39.3 39.3 37.5 35,0 42.0 Poor PoorPoor* Bed* t:: ; 3J48 (41) 32 .i::: Poor t 3.8 : Poor : 38 : 35.8 32.6 38.0 28.8 34.8 34.3 either of the other two paints. As was pointed out In the third progress report, there was more difference in dur ability between any one of the paints on the four woods than there was between that of the three paints on any one wood. It is also true that there was more dif ference in durability between the best and the worst priming-coat reduction with any one pafnt than there was be tween that of the three paints on red wood, red cedar, or white pine. Two-Coat and Three-Coat Painting With the white lead paint and the tltanox and zinc paint the best twocoat Job (prlmlng-coat reduction 2-1) proved equal or superior in durability 1-1 1.168 : 0 :0.o45: 20.0 1-2 1.06 : .292 - : .041: 21.1 1-3 .946 : .563 i : .036: 22.3 : '1-4 -475 -728 : : .027: 29,4 1-5 0. : .075 : .014', 43.4 aluminum primer 3 ;: poor- : 26 Bad* 3 1: Bad* : 22 ; Bad* 3 Bad : 21 : Bad* : :3 : Bad 21 : Bad : v :3 Bad- 1 22 Bad- : :3 :1 Fair- (44) Poor 26 : Fair- : (44) Poor* : tt1! ` 34 Poor* s tt1! . Poor* *, (41) : 34 22 22 38 : poor* :r Poor Poor- : Fair- ::: : (41) 3a 34 (44) . Poor* 1 :Poor* :Poor: Pair- i t(4t11)) 36. (44) !:: 1 34,3 34.5 34.3 32S8.-5S 42.5 on the whole to the best three-coat Job (with white primer) applied on the same boards. With the lead and zinc pafnt the best two-coat Job was slightly infe rior to the best three-coat Job on the same boards except on red cedar, where it was better. Table 3 of the first prog 2-1 ' 2-2 1-3 2-3 2-2 2-3 -655 .437 .946 .219 .437 .219 : ::::; O ' ;:.292 ;-583 :.563 , :.292 : :-583 .036: .026: .036: .023: .026: .023: 26.2 30.2 22.3 35.6 30.2 35- : :2 i: Fbor :2 i: Bad* ; :3 Bad : : :2 : Bad * :3 ri Bad* ; ;. 3 j Bad. 38 Poor 26 : Poor 22 Poor 21 Bad* 26 Poor 22 i Poor ; : :Fair- (44) : Poor* 3* : : : : 34 i Fair- (44) Poor : : ; :34 Poor* : (41) Poor : : :27 5 Poor 38 Poor- : : : ; =34 poor* (41) Pwor : ; : ; :34 poor* (41) Poor- (41) 38 38 36 38 36 1 i 39-3 35.5 33.8 30*5 34.8 33.3 ress report recorded the total amounts of paint applied in the two-coat and three-coat jobs and showed that, by rea son of the higher pfgment concentrations and lower spreading rates followed In the two-coat painting, roughly similar total quantities of paint were applied in the two-coat and three-coat Jobs. It is evi r dent that two-coat painting when done in the manner followed in these experi Panels were attached to ;both sides of test fences, providing both northern and southern exposures. The panels were made of boards of bevel siding, 12 feet long, so that groups of six matched test areas, each two feet long, were- provided on which six variations in priming-coat re duction were tested on the i same boards. In table 1 the six priming procedures ing, ranging from 17.2 to 33.2' percent by volume of the mixture (including vola tile), Reductions numbered 2-1, .2-2, and 2-3 had a higher concentration of pig ment, . 4.1 to 26.3 percent, suitable for two-coat painting. Among the reductions of series 1 the best results were obtained with, l-lf in which no turpentine was used, and the tendency wag for the durability should dUter from the reduction for white pine or Norway pine. It should be recognized, however, that the present experiments were concerned principally with the proportions of linseed oil and turpentine in the priming- coat and did not cover possible variations in pig ment concentration as adequately as could be desired. Farther research may show ments is thoroughly practicable and gives coatings that closely approach good three-coat work in durability and prove distinctly better than poor three-coat work. ' . i.l Aluminum Priming Paint Table 1 indicates that the best results were obtained with aluminum priming ', PAINT AND DRUG REPORTER November 14, 1934 . 75 followed by two coats of white -t On all woods except white pine costings- of all- three paints over -:num primer 'were still rated Fair ua" or better in Integrity at the last ::ction and in all cases except that of `and zinc paint on white- pine the1 ting over aluminum primer was rated :bigh or higher in integrity than the iicoating over- a white primer on the t boards. On ten out of twelve panels "^coating over aluminum primer had highest rating, on 1 panel its rating air minus") was equalled only by 5 priming-coat reduction 1-1* and on Ml- St was- distinctly superior' to -re- "tons. 1-4 and 1-5'but inferior to Mtlons 1-1, 1-2, and 1-3. On the last The-reason for faster disintegration of the paints at St. Paul is unknown, blit the fact that there 1b : unmistakable evi dence of some moisture failure, on the north side of the fence, os pointed out in' the third progress report, Suggests that moisture getting. Into the fence, at some time- may `have hastened disintegra tion on the south aide even though the moisture conditions were not severe enough to result in typical blistering or other developments clearly, recognizable as moisture failures. It has been reported to the test fence committee- that at one time during the winter of 1932-33 enow drifted- against- the. fence, to. the. extent of practically covering one side,- This snow was not shoveled away and there Table 3 _ orison in Durability Between White Lead Paint and Lead and Zine Paint died with Priming.Goat Reduction 1-3 at St. Paui and the Same. Paints Applied Very, Similarly in- Teste at Fargo and Madison mrss In parentheses are dnrablllttes estimated for. coatings still serviceable at 38 months. Durability In months with respect to-integrity of costing for Station White load paint on:Red White Norway Lead and sincjMint on:-- Red White Norway Paul, Minn,1........... (Paul, Mien;1........... >, N. 1),*........... la&n, Wls. ......... Redwood (41) 38 52 54 cedar <> 33 pine pine Redwood (44) (41) 49 51 Cedar (41) pine48 pine m Class .3 : Metting Points Akco resin, extra hard;,.,..............I40*-143a0 Amberol-K-12-A .............................,.148*-m*C Bakellte XR2993 .................................ia8*-l&0C Eeckacite. H0O ...................... 127*-1429C Backedto 1106 ...................... .127*-142SC liawlsol N2 ............ ,,130"-1&5PC Robert .Rauh ,N2.-...............*............186l45 aC Q, D.- No. 1.................... 135*-14fi*C Q. D. K..................................... 140-1C0C After selecting the resins desired from, the chart- of, melting points, then we suggest you tests them by the following method. 1 Testing Method Prepare.a varnish of.each, say 2B gal lons of oil to 100 pounds of resin, 22gallons ofehinawood oil and 3 gallons of linseed cooked as you desire so long as both- are handled' in the- same manner. Add the same amount of thinner1 and drfer. Determine the speed., of dry and the ultimate - hardness of film by any method you desire, Then, , taking the- same resins, again prepare another series of varnishes either' cutting down on the wood oil and increas ing on the- linseed, keeping the oil and gum ratio constant or increase on the linseed only leaving the wood oil and gum ratio constant. Compare the. speed of . dry and ability to come to a definite hardness of film, ! We are sure > the harder the resin, the greater Its ability to harden increased amounts of linseed oil,- Gas-proofness and skinning can be taken.; care of after selecting the resins by method of' cook to secure the former and by choice of isolvents to prevent the latter, '< We have tried 1 to use only published data and to let .you use your own method of cook so. that we cannot be said to favor any one group- or to enter Into contro versy with anyone as to definite procedure or results. ; . Iii the foregoing' paper wo have tried to give you what we think is a good method , of selecting a resin and hope in doing so have aided you in your everyday task. . ) ' Comparison of Various Pigments- and Vehicles in Rnst- ElSte Paul there were two test areas on each wood painted with each -paint using priming-coat auction 1-3; each of these areas la reported separately, A .., jtta for Fargo and- Madisonr are average-durabilities-for 19- test areas of .each wood plated tflh each paint. ' Inhibitive Primers Pittsburgh Paint and. Varnish, Production Club No*. however, failure was confined to j of- the four boards- which developed. ' grain, toward the end on which the ntim primer was applied but not on Is a possibility that entrance of moisture within the fence took place when it melted. Miscellaneous. Tests: end that received reductions 1-1, 1-2, In addition to the main portion of the 1-3. This panel, therefore, was not test fence there were two unite added SIpexception to the rule that the alumi- for the purpose of trying the effect of iflt primer in these tests tended to hold' special .primers-made with white pigments K. coatings intact longer than any of in thfe bakellte varnish used as a vehicle ^priming-coat reductions of. the white for the aluminum primer on units 1 to $, and for trying the recommendations for lutUfllly Early Failure of the-Paints thinning white lead paint made by the National Lead Company and the Eagle- failure of the coatings in integrity took Plcher Lead Company and certain paints fee- unusually rapidly on the St. Paul suggested by the New Jersey Zinc Com lit fence. Coatings of the white paints pany and the Titanium Pigments- Com M should he expected to remain servioe- pany. The condition of these paints with k in the Lake States region for at least respect to integrity of the coatings at the years on such woods as red cedar, last inspection is recorded in tabte 4. (wood, and white pine, yet the failures Of the special primers made* with white & place In less than four years. The pigments In bakellte varnish the one made Table 4 In last year's paper we gave data obtained as a result of salt spray, weatherometer. and. exposure tests. This yeari the> paper will deal with results of exposure tests only. These panels, when last inspection was made, had been.exposed one year, and ft is interesting to note how the rating of the panels.changed from time to time, but we believe that at the end of a year's exposure fairly accurate conclusion may be drawn. As rusting progressed and it became evident that the primer was no longer affording protection to the metal, the panels were removed from the test fence and photographed. They were then exposed again untllj ultimate fail . ure of the finishing- coat takes place: Under Exhibit No. 1 we give the varfous pigments and vehicles used. Exhibit No. 1 1, Red . lead. | 2, Blue- lead j sulphate. 3j White lea;d carbonate. 4. Basic lead chromate. 6. Zinc chrotnate. 6. Zinc cfustJ ' 7. Zinc oxide. 8: Black magnetic Iron oxide. 9. Antimony; oxide. 13. High zinc! sulphide lithopone_ 14; Aluminum bronze. 16', Ferric oxide. A. Raw linseed oil B 60 gallon ester gum C 60 gallon phenolic D Phthalate varnish E Iodized oil jfiylts After Thirty-eight' Months' Exposure Facing South for Miscellaneous Tests on Units 7 and'8 of the Fence Rating in Integrity on:~ Exhibit No. 2 Description- of coating fc coat* of white lead paint over priming little Whlte pine "' cedar Redwood Report of Inspection of Panels on Test Fence Exposure wait of:-- -. White lead in bakellte varnish . ' Poor- VZInc oxide In bakellte varnish Bad Tltanox E in bakellte varnish Poor we coats o-f linseed oil paints having the Mowing white pigments:-- { White lead paint, as recommended by Na> : tlonal Lead Company Poor White lead paint, as recommended by JSagle* Ploher Lead Company Poor Cryptone, leaded zinc oxide, Inert, as recommended by New Jersey Zinc Company Poor-j- Tit&nox, -white lead, zinc oxide, inert, as * recommended by Titanium Pigments Company Fttlr-- Poor Bad-t* Poor Poor+ Foor-- Poor+ Foor+ Poor+ Poor+ Poor-f. Poor+ Poor-fFoor+ Falr-- Poor BadPoor-- PooHFooHFftlr-- Fair 12-19-33 - 1-A 0,K. O.K. 2-A O.K, O.K. l-R 1-C 1-D 1-E O.K. . O.K. Chalking O.K. Spot ruating O.K. Chalking O.K. 2-B 2-C 2-D Chalking O.K. 26% rusted 0,K. 40% rusted O.K. 3-A Chalking and start- _ ing spot rusting O.K. 3-B Spot rusting ; O.K. 1- 3-C Spot rusting--least O.K. 3-D Spot rusting--worgt O.K. 4-A O.K, . O.K, 4-B O.K. 0,K. 4-C O.K. .O.K. 4-D Spot rusting O.K, 4-E O.K. O.K. foitigs of white lead paint and of lead 'I zinc paint applied with priming-coat luctlon i-3 as recorded in table 1 may lonably be compared with certain tests the Forest Products Laboratory In Mch the same paints were applied with 1 r similar reductions and on some of same kinds of wood at Fafgo, N. D., at Madison, Wis., in 1930. Table 3 >rds data suitable for comparing the ilts with those at St. Paul'. with zinc oxide gave distinctly Inferior results. The ones made with white lead and titanox were better, but by no means so good as the aluminum primer reported In table 1. The type of failure of the white lead- paint over these primers was not the same as that of white lead paint over white lead primer or over aluminum primer, -but took the form of flaking as distinguished from crumbling over the bands of summerwood, 6-A 5-E 6-C O.K, O.K. Slight edge ruating O.K. Edge rusting--spot rusting ` O.K. 6-D 5-E O.K. O.K. O.K. O.K. 6-A 6-B . 6-C Spot rusting O.K. Best--slight edge rusting O.K. Second--slight edge rust ing O.K. 7-A 7-B 7-C Best--spot rusting O.K. Spot rusting O.K. Spot rusting O.K. 6-D 6-E io% rusting 0*K, 16rusting--spot rusting i 7-D Spot rusting i O.K. : 7-E 30% spot rusting ' O.K. New Slant on Synthetic Resins Philadelphia Paint and Varnish Production Club ..ijs club, in again turning its mind to The film could not be accurately for abject of Interest to the practical man, hardness with any absolute certaintv, and on, among several other things, the different people would have different views r present field of synthetic resins. on the dry. Everyone interested in the varnish end It would be Impossible for one person 1 iroduction knows from experience that to.cook and test the whole lot of resins eady stream of new resins is always in several different ways. jlng through his laboratory, and hard- There we are. ' What now? ;b day goes by but that he hears of We could not or would not ask the gum s new type or another. manufacturers for samples of varnishes [f we were to take the raw material all ready made up, and If these were iouiactorers> or his representatives* procured who could evaluate the hard id for claims pertaining to the gum, ness of film, adhesion, and most of the would be constantly changing our prod other properties by any concrete method ucts and with such a number on the and express their results by a number or tarket you can well imagine where we degree with some definite certainty? refold be. The gum manufacturers would be -Xow, with the usu*l kind assistance of around our necks should we disprove any ' friends A. W. Van Heuckeroth and claim they might make, and who could ;H. A, Gardner a paper was published contradict them, lacking definite con May, 1933, circular No. 430 by the crete data? (entitle sections and If you have. not ' <We proposed however the following ;etl over the tables in the first two classifications and types of test for select you will be surprised to hear that ing your own choice of resins, hoping that are or rather were eighty-three In so doing, we are aiding you by "short on the market for.paiijt and varnish cutting" your work. . :lng. Some new ones have appeared .0 this paper was published. Comparative Melting Points It Is true that some resins are in a class In view of no measurement of hardness themselves, namely, the 100 percent we are taking the published melting inolic and the loo percent alkyd or re points, from the previously mentioned cir ed alkyd together with the cumars and cular, and although some have later been fene refllns, but with these we are not corrected by their manufacturers we feel be so vitally interested in this paper, that this list can serve for our purpose. will concern ourselves primarily with modified phenolic types of which there Class 1 e twenty-three mentioned in the afore- Melting Points 80C-m*C ed* circular. Amberol Bai .........................................0&M10*C Snags in the Way |ln starting out on our work everyftingr looked fine for such a .series of isle and results, but then we struck a Bakellte BR352 .................................. Bakellte BR2072 ............................... 8d- 9l*C Beck&cfte 1101 .....................................102J.12C Beckaelte 1102 .....................................102*112"C Beckaclte 1113 .....................................10$*112*C lag or rather several of them, . ^Starting with the physical tests of P&lns alone, some are carried out without Class 2 Melting Points I10DC-118*0 ^result that could be definitely or numeri- Akco reein, hard.........,.......................I28M30C illy expressed-; for instance, hardness, . Amberol FT...........................................U8*-I2S*C jWlth different people cooking the ijlos, using various wood oils and differt fires, the human equation would enter, Amberol 220 ................................... 117"-1R8*C Amberol 301 ........................................11T"-1B3*C Beckaclte 1112 .................................... 110*-i2s*C Lewlsol No. 3.........................................lSNJ'-llW'C l different results be obtained, favoring Parana], hard ...................................... ) and not others. . Paranol, extra hard.........................UW^C 8-A S-B 8-C 8-D 8-32 O.K. O.K. Best O.K. Spot rusting OK Spot ruating O.K. 60% spot rusting O.K. 14-A 14-B 14-C 14-D 14-E Rust starting O.K. Rust starting O.K. O.K. O.K. O.K. O.K. O.K. O.K. . 9-A ^First-Slight spot rusting 9-B Second O.K. 9-C -10% spot rusting O.K. 9-D Slight spot rusting O.K. 13-A 13-B 13-C 13-D 30% spot rusting O.K. Slight rusting O.K. 50% spot rusting O.K. Failed O.K. 16-A 15-B 16-C I6-D O.K. O.K. O.K, O.K. O.K. O.K. Spot rusting O.K. Upper report for each panel refers to single coated portion, Lower report refers to aluminum top-coated half, ! ] - Exhibit No. 3 Report of Inspection of Panels on Test Fehce Exposure 3-7-34 l-A 1-B 1-C 1-D 3-E Best O.K. Second--Chalking O.K. Third--Chalking O.K. 20% Rusted O.K. Heavy chalking O.K. 4-A Slight chalking . O.K. 4-B 5% Spot rusted O.K. 4-C Chalking O.K, 4-D 30g Spot rusted 4-E Chalking O.K, 2-A 2-B ' 2-C . 2-D Best--slight chalking O.K. Slight spot'rusting O.K, 20% Rusted O.K. ' 70% Rusted O.K. 6-A Slight chalking O.K. ' 5-B 5% Spot rusted O.K. 6-C 6% Spot rusted O.K. 6-D lOg Spot rusted 6-E Slight chalking O.K. 3-A 3'B 3-C 3-D Chalking O.K. 5% Spot rusted O.K. Heavy chalking O.K. 20% Spot rusted O.K. 6-A : 6-B ' Spot rusted, chalked, pitting O.K. Chalking, slight edge rusting : O.K. 6-C Chalking, slight edge rusting : O.K. : fi-D 10% Spot rusted, : slightly pitted O.K. 6-E 60% Spot rusted, > olnias 76, November 14i'1934 Exhibit No. 3--Continued 7-A Chalking O.K. 7-B 3% Spot rusted j . o .k . : 7-C Chalking O.K. . .; 7-D 7-E 5% spot rusted, chalking O.K. ' Chalking, pitting, 90% spot rusted O.K- ' I3-A 13-B 13-C 13-D 76% Spot rusted, chalking O.K. ; 50% Rusted, no ' chalking : O.K. , 60% spot rusted, _ chalking O.K, 1 80% Spot rusted, chalking O.K. 8-A S% Spot rusted, slightly S-B : Challtlng ' o .k . . S-C l^^Spot rusted " .::.. ! 8-D 16% Spot rusted O.K. 8-E Film entirely rusted away O.K. 9-A 5% Spot rusted, chalking O.K. . - 9-B - '80% Spot rusted, ...................chalking .. ..........O.K. . ' ' "&*C`70% Spot rusted, '' chalking ' O.K. 9-D 25% Spot rusted, chalking O.K, 14-A 10% Spot rusted O.K. . . .. 14-B 19% Spot rusted. O.K. 14-C Good condition, excellent O.K. 14-D 10% Spot rusted O.K, 14-E 2% Spot rusted O.K. 16A. 3% Spot rusted, slight chalking O.K. ' a 15-B -20% Spot rusted, slight chalking O.K. 15-C 3% Spot rusted, chalking - O.K. 15-D 25% Spot rusted, slight chalking O.K. Exhibit No. 4 Report of Inspection of Panels on Test Fence Exposure 'i 4-19-34 !. . 1-A Best 1 1 2-A Best--*chftlklng O.K, O.K. . 1-B Second : ' f2-B Rusted . .. . . O.K. 1-C Chalking i 2-C 40% Rusted "' ' \ O.K. , . O.K. ' ' fl-D 26% Rusted . ; 4*2-D 80% Rusted ' O.K. 1 O.K. : 1-E3 Spot rusting O.K. 4-A Best O.K. : 6-A Slight chalking . O.K. . 4-B 6% Spot rusted > O.K. 4-C 4-D Chalking--one rust spot O.K, 6% Spot rusted : O.K. ; 4-E Chalking O.K. ` ; 6-B 5% Spot rusted O.K .... 5-C S% Spot rusted Spot rusting starting 5-D 10% Spot rusted O.K. 5-E Slight chalking O.K. 7-A Chalking O.K. . 7-B 7-C 7-D *7-E Chalking--3% spot rusted O.K. i ; Chalking--edge rusting O.K. 5% Spot rusting- chalking Spot rusting start ing 95% Rusted O.K. 8-A 8% Spot rusting O.K. S-B Chalking ' O.K. t8-C I5g Spot rusting tS-D 20% Spot mating O.K. *S-E Completely rusted--no ' film remaining on ^mnel . 3-A Chalking O.K. 8-B lo0|_ Spot rusted ' a-C Heavy chalking ' O.K, t3-D 25% Spot mated : o .k . 6-A 6-B . 6-C ' *6-D *6-E Fitted--slight spot rustlng~chalk- ing O.K Chalking Spot rusting start* Ing Chalking Spot rusting start Ing 20% Rusted--pit- fng 0,K. 60% Rusted-- pitted O.K, 3-A 10% Spot rusted-- chalking O.K. S-B Comptete failure-- spot rusted O.K. 9-C 80% Rusted O.K. ffi-JD $9% SpotVuated-- chalking O.K. OIL, PAINT AND DRUG REPORTE^o] . Exhibit No. 6 Report of Inspection of Panels on Test Fence Exposure 7-2-34 i-A i -b 1-0 *1-B O.K. O.K. O.K. ; '. O.K 6% Spot rusting O.K, 55% Spot rusting O.K. 6% Spot rusting O.K, *3-A 25%' Spot 3 ; : o .k , . 3-B .25.^ Spot rust *3-C Spot J 4-A 0.K O.K. 4-B 20%. Spot rusting E-A O.K. O.K. . 5-B c?,Spot rustiae 4-C 4-B . Edges spot rusting O.K. . O.K. O.K. 5-C ' *5-D 5-E 10% Spot rusting Spot rusting starting 20% Spot .rusting' . 10% Spot rusting 3% Spot.rusUng . O.K .; " ' `.' 6-A 6-B 70% Spot J O.K. . 15% Spot i. Spot rusting s Ing _. 80% Spot rusUaj 8% Spot rust"` 7-A -8% Spot rusting O.K, 7-B 6% Spot rusting ' O.K. : 7-.C 3% Spot rusting .. O.K.' .. *7-D 10% Spot rusting Spot rusting start . ing 8-A 8-B 26% Spot rusting O.K . . O.K. ' O.K, : 9-A 40% Spot ruatinj , . . * O.K, 14-A 40% Spot rusting O.K. * 14-C O.K. . ! O.K. 15-C Spot rusting * Panels removed from fence 7-2-34. Upper report for each panel refers to single-coated portion. Lower report to aluminum top-coated half, . - At the last examination of the panels, July 2, 1934, panels still remaining on the fence were as follows:-- Ked lead........................ 4 Blue lead.......................... ....................................., 1 White lead carbonate......... ...................... 3 Basic lead chromate......................................... 4 Zinc chromate.............................................. 5 Zinc dust......................... 3 Zinc oxide.,.,.......,........................ 4 Black iron oxide................................................... 2 Antimony oxide..................................... ;. 1 Aluminum bronze........................................ 2 Ferric oxide........... .................................... 1 From a pigment, pointof view zinc chromate, red lead, andbasic lead ' chromate rank first, with zinc oxide in second place. Blue lead, ferric oxide, and antimony oxide are in the poorest group, with blue lead being the best in this group, ferric oxide being interme diate, and antimony oxide the poorest. Considering the individual panels in the zinc chromate group--one is in perfect condition, one shows only very faint sigma of failure, two slight fail ure, and one considerable rusting. In the red lead group--two are in perfect condition, one shows slight signs of failure and one is badly sp rusted. ' In the basic lead chromate grou] two are in perfect condition, one sto slight signs of failure and one sho^ some spot rusting. In the zinc oxide group--three slu slight signs of failure and one is som'i what spot rusted, . . . The number of panels on the fei? July 2, according to vehicle compoj tion, was as follows:-- Raw lfnseed oil.'..............................................d 50 gallons phenolic varnish........ 50 gallons ester gum varnish............ Iodized linseed ofi....................................... Fhthalate varnish.........................................;;;v 'J In regard to the above figures tfy refer to the priming coats only. ,; On the lower half of the pane] which were second coated, the failutV were as follows:-- Phthalate varnish.......................................Vr Phenolic varnish..,............................................ Ester gum varnish............................................. Linseed oil.,........................................................... Iodized oil was not considered sine Exhibit No. 7 Seven Months' Exposure *13-A 80% Rusted O.K. 13-B 90% Rusted O.K. I3-C 6% Rusted O.K. 13-B 90% Rusted O.K. 14-A ISJSSp.otrustsd : r t!4-B 40% Spot rusted O.K. . 14-C Excellent condition O.K, tl4-D 40% Spot rusted i t!4-E 60% Spot rested ! 15-A fIE-B is-o f!5"X> Chalking--5% spot rusted O.K. 30% Spot rusted-- chalking O.K. 3% Spot rusted-- chalking O.K. 25% Spot rusted-- chalking Spot rusting startIng * Panel* removed from fence 4-2-34. . t Panels removed from fence 4-10-84. Upper report for eaeh panel refers to single-coated portion-and lower report to aluminum top-coated half. All of the panels removed from the fence 4-2-34 are a complete failure on the single-coated portion. The half covered with aluminum Is`still* In good condition, although each has ac cumulated considerable dirt. No rust spots whatsoever. Exhibit No. 5 Report of Inspection of Panels on Test Fence Exposure 5-24-34 1-A 1-B 1-C 1-E O.K. O.K. O.K. O.K. Spot rusting 3% O.K. Spot mating 60% O.K, r : ; : 1 2-A Spot rusting 2% O.K................... ............... 4-A 4-B O.K, : O.K. Spot rusting 20%.. O.K, 5-A O.K ' . ... 0,K. ^ ..B-B- Spot.rusting-10%-- ... ..... O.K. _ . : . 4-C Spot rusting edge ' only O.K. = 4'E o'.K. 6-C Spot rusting 10% . Spot rusting starting 6-D 6-E Spot rusting`20% Spot rusting starting Spot rusting 3%- , O.K ` . .7-A. 7-B 7-C Spotrusting 1% : Spotrusting 5% ; Spo_trusting 1% : .8.-A.. Spot ruating.26%............. O.K. 8-B O.K. ' , ' O.K. 7-D Spotrusting 7% i Spot rusting start ing t 14-A Spot rusting 30% 116-A Spot rusting 6% O.K. i | 'O.K. ) 14-C O.K. f 15-C Spot rusting 10% O.K, ' | , O.K. .. ' . 3-A Spot rusting1 S?6' - O.K,- : 3-B Spot rusting 15% O.K. 3-C Spot rusting 1% O.K 6-A Spot rusting 60% O.K .6-B .. Spot.rusting.1%.. Spot rusting start ing 6-C Spot'.rusting 50% Spot rusting start- : Ing 9-A. Spo.t rusting 26% Upper report for <*ach panel refers to Lower report to altimlnun? top-coated half, Upper half of panel--second coated with aluminum Lower half of panel--priming coat only Upper haif of pane!--priming coat only Lower half of panel--second coated with aiumitnin' 78 'November 14, 1934 OIL. PAINT AND DRUG -RE] most of the panels had failed and "were That a properly made SO-gallon ester removed prior to our last examination. gum vehicle should be ranked In sec Conclusion . orid place among the vehicles used. meter syringe upon a glass plate, and a measurement made of the diameter of the area covered by the paint. The results are shown in table 1L 'the-other paints, that from nated castor oil mix being louder than that from the dtethy mix.' The rattle of the pebfeta That as a group red lead, basic lead chromate, and zinc chromate appear to Acknowledgment The technical committee desires to Table 2 deserve the highest rhtihg aa rust inhibitive pigments. ! That linseed oil merits a higher rat acknowledge the help, co-operation and advice received from the techni cal staffs of the Watson-Standard . Consistency Rating, on Finiched Lithopone Paint, Addition agent Diameter in cmB. ' ' in vehicle ' of S cc, on glass ing than any other vehicle used in the company and the James B. Sipe Com Blown linseed oil.................................................................................. 7.2 teats. !' pany in conducting these tests. D.G. llthopone (no agent)............................................. Linseed fatty acids.............................................................................. 6.4 >1.1 Roaolln ........................... 4.9 Twltchell base 266................................................................................. 4.0 Effects of Wetting Agents on Pigment Dispersion Sulphonated castor oil............................. 2.0 > Muni'S Portions of the paints were set aside ethyleneglycol batch was also St, Ljouis Paint and Varnish Production Club in glass jars for settling tests. After more evident than in the batch co: three months all had considerable super no wetting agent, but any 1: . In the grinding of paints It has often double- bond at the center of the natant liquid, but It, as well as the degree grinding was too slight to be of i ( been observed that the {addition of small chain; stearyl alcohol is a Cia satur of packing, was the same for all paints. quence. The curve for diethyleneri amounts of various substances profoundly affects the ease with j which a desired degree of pigment dispersion may be ob tained. Many of the. .dry pigments' in common use have beep treated during their manufacture with Wetting agents which enhance their mixing and grinding characteristics. Yet scientific literature, replete with studies ofj the phenomenon of wetting and references to materials vaguely described as possessing wetting properties, give to a paint manufacturer no information as. to {whether different wetting agents are ^required to aid the dispersing of different pigments, no data on the relative efficiency!of various agents with a specific pigment, and no conception of the magnitude of the increased diaper- sion or rate of dlspers.on that may. be expected. .' . Despite the almost m mberless possible combinations of pigmei ts, vehicles, and methods of dispersion it was felt that empirical testing, using practical paint materials and machinery, was the best method of attacking theSe problems; con ated alcohol. . `In an attempt to correlate the action of pebble mills and roller mills a few runs were made on both paint and laboratory three-roll mills. As the study is not com plete, and no particular methods were adopted, the procedure in each case la in cluded with the data. Data and Results . Data pertaining to the porcelain jar pebble mill:-- Pebble charge {approximately 217 pebbles) ................................... .............. 7 lbs. 7 oz. .Capacity of jar........................... ... 4 quarts Volume displacement of pebbles.. H4 quarts Liquid to fill to J. Inch above pebbles iw quarts Speed of mill., .66 K.JP.M. Constants of the alkali-refined oil used for a vehicle as follows:-- : Acid number.......................... ^. 0.56. Saponification number................ 100 ' Iodine number (Hanua)...................................174 _ Specific gravity......................................... 0.1)81 Formala for the lithopone Faint Another portion was treated with naph- thenate drier' so that a metal content based on the oil of 0.5 percent lead and 0.1 percent cobalt was obtained. Faint- outs revealed no differences in drying or gloss. * . Having found that several agents were effective when using low-acid oil as a Vehicle, to ascertain whether any bene ficial effects would be obtained from these agents when added to a better wetting vehicle, an attempt was made to run some tests in varnish, A 50-gallon ester gum varnish was cut with mineral spirits to the same viscosity as the alkali- refined oil as measured at room tempera ture with the Gardner-Holdt bubble Vis cosity tubes. Two batches, one wife this varnish, which contained 35. percent non volatile matter, and one with the varnish plus 2 percent blown linseed oil were tried. Three samples taken during the first eight hours.pf the. run showed no difference between the grinding, of the two batches, but a slightly faster grind ing rate than, with any of the alkali- was not continued beyond twentx*fjij hours because the finished batch coata many particles as coarse as North n her 4. A check grind was made 1-"' same results. It was concluded 1 extreme hardness, of the particles andth fact that they Increased rather than diplf Ished during the grind that the pehtl were chipping. The intensity rattling emanating from the mill made this explanation quite plaudbl Figure 3 gives the results of griiHUi with and without' sulphonated castoh c in the 50-gallon ester gum varnish redua. to 35 percent nonvolatile matter, whid gave an exact match for the alkall-refltug oil when measured by the bubble twin at room, temperature. As with the I' seed1'oil, the' addltlon -of the *lpr castor oil resulted in an abnormsbulMlj ing of the pebbles in the mllL The x for alkali-refined linseed ting agent is reproduced oil In wfiigthurenozx purposes of comparison. ' The relative viscosity of the finish! sequently work was undertaken to' meas ure the ease of grinding of several pig ments and vehicles upon the addition of Av. Untreated llthopone,.......... 32.00 Alkali-wflned linseed oil...... 24.00 Oz, 7.224.8 refined oil batches. At the next inspec black paint as measured by a plunger tyu tion both mixes were found to be llversd viscometer at a .room temperature of 3d some of the common wetting agents. The effects of the wetting agents upon such essential qualities or paints as drying, settling, and consistency] were also noted. Theoretical factors were given only sec Wetting agent............. 0.40 *0.5 Mineral spirits (added after . grind).., ................................. 1.23 1.5 *Approximate. Vehicle 2% wetting agents Table 3 Compatibility of agent with oil Surface Relative tension Interfaclal dynes/cm tension ondary consideration, ] Procedure Of the three most prevalent types of grinding equipment--the [pebble, the roller, and the stone mills--because of Its more constant operating characteristics, the . The above formula was used for all mixes except that containing benzoic acid, where, instead of 2 percent, only 0,27 percent of the vehicle was wetting agent. ' ' The batch containing aikali-reflned oil alone and those containing pine oil, Refined linseed........ ROzolJn ............................ Linseed fatty acids.,, Hercosol No. 80............. Pine oil.............................. Blown linseed................. Ocenol .............................. Lord ................................ soluble - soluble soluble soluble ' al. ppt, on aging soluble soluble 87.40 37.00 37.25 36.10 37,10 37.10 37.00 87.19 63.0 18.5 26.0 29.0 31.5 33.0 34,6 38,0 pebble mill was chosen as the most con venient starting point in a determination of the effects of wetting]agents upon pig ment dispersion. A laboratory mill carry ing two identical porcelain jars was used. The vehicle was poured into the jars; the pigment added without any preliminary mixing; the mill put into operation and solvenol No. 1, hercosol No. SO, dipentene No. 122, lord, ocenol, benzole acid, ethy leneglycol, diethyleneglycol, and sodium oleate were too heavy and plastlo to grfnd. The pebbles could not break through the mass enough to grind the pigment. Even vigorous preliminary mix ing by hand followed by twenty-four Sodium oleate................. Sulphonated castor.... Twltchell base. Bonzoic acid (0.27%). Bister gum varnish... Solvenol No. ..............., Dipentene No. 122... Ethyleneglycol ........... DJethyleneglycol ........ si. soluble very cloudy soluble soluble . soluble soluble Immiscible 87.00 . 86,90 36.80 45.0 60.5 180.0 run continuously until a good grind was hours on the mill failed to produce any obtained, stopping only to remove small results, - and the run was discontinued. A check F. Is given in table IV. This vfscometet| samples at suitable Inter /ale. At the end of the run the mill was d...r.a...i.n...e...d.._using a The results of the batches containing sulphonated caBtor oil, rozolln, linseed on the viscosity of the actual varnish wan not of standard make. used in the batches revealed a very small amount of mineral `spirits as a wash fatty acids, blown linseed oil, and slightly lower viscosity than that of the liquid. I . Twltchell base 265 are shown In figure 1 oil, which was probably responsible for Table 4 . The agglomerate size] of each sample was determined by comparison with North standards3'j well ground pastes of ziuo oxide and refined linseed oil with aloxite of varying degrees of fineness stirred into them. To make the particles stand out more sharply when examined, the stand ards made up as specified1 were diluted volume for volume with a mixture of half raw linseed oil and half heavy-bodied blown linseed oil For jthe same reason most of the samples had to be diluted as curves of the North number rating on pigment dispersion plotted against hours of grinding in the pebble mill. A curve obtained using dispersion grade lithopone, processed during manufacture to give easy wetting, ground with no wetting agent In the vehicle, Is shown for comparlson. The few large particles causing such a poor rating for the rozolln samples taken at about thirty-five hours were quite evidently a contamination of some sort, probably a chipped pebble. the more rapid grinding; ' The physical constants of the vehicles used are given in table III. Formula for Carbon Black Faint .* Av* os Carbon black (sutler spectra).. 1.00 Alkali-refined linseed oil...........80.60 Wetting agent................................ 0.62 Mineral spirits (added after ' grinding) ....................................... 1.23 FI. os. 0.5 SI. 5 0.0 ; "Approximate, ' , Viscosity of Blaok Paints Expressed t Time for Plunger to Descend 20 cr with a Total Load of 60 Grams ' Second! . No ,wetting agent........................................ 9,4; Pine oil .............................................................. 0-0 : Solvenol No. I..................................... &0 ? Hercoeol No. 80.................................... 8.0 ; fe- ..Dipentene (No. 122.............................. 4.0 ; 3 with a little blown linseed oil. For the measurement of samples coarser than Fineness--North Number Figure, 1 .Roxolltj ,........................................ . ;' Lorol ........................................ 9.0U 8,0 North standard No. 6 two samples called No. 7 and No. were [adopted. These were selected so that the! previous grada tion of fineness between numbers Was Ocenol ................................................................ 8.0 Benzoic add ................................ Ethyleneglycol ............................................ 3,8 11.2. approximately maintained. Diethylene glycol ......................................... 10.4 The standards and samples were com Twltchell base 265.................................... 7.0 pared by drawing a straight edge over a ' bit of each placed side by side on the low end of an inclined depression in a steel , plate, so cut that by this manipulation the paints were spread, into wedge shaped films 2 inches long, varying in thickness from 0.005 inch' at one end to zero at the other, When viewed obliquely the par ticles could be seen distinctly, the larger the particle the thicker the film in which It was visible. Standard No, S showed particles over the entire j& inches of film. By this method fairly accurate Interpola tion between the standard ratings was possible, especially sinbe the various paints were compared with each other as well as with the standards. . To accentuate the effects of the wetting agents in the first tests. It was considered advisable to employ inert, rather diffi cultly wetted pigments and a poor wetting vehicle. Untreated litftophotie. carbon black, and alkali-refined llinseed oil were chosen as .suitable. Thfe precentage of wetting agent added was arbitrarily fixed at 2 percent of tha.vehiclje by weight In A few cases this proved excessive and had to be reduced. To determine whether the grinding efficiency of a vehicle might be predicted from Its physical constants, de terminations were made of the acid num ber, relative surface tension using a Du Nouy tensiometer, and re atlve interfaclal tension against water btf the method of Gardner.* The following materials were selected as being representative of prod ucts reputed to posses wetting proper ties : Linseed fatty acids Blown linseed oil Bencoic acid Fine oil Solvenol No. 1 Hercosol No. SO Dipentene No. 122 Diethyleneglycol Ethyleneglycol Sodium oleate, slight excess of oleic acid. / Rozolin {sodium oleoabietate) the so- dlum soap of* abiotic @0 percent, oleic 66 percent, stearols IE percent. Twltchell base 265, a sulphonated min eral oil. I <.- - Sulphonated castor oil, {contains 50 per cent water. Lorol, a mixture of saturated fatty1 al- cohola Cw Cm, On, and Cw In "which C]S and Ci* predominate. Ocenol, a mixture of o]eyl alcohol and stearyl alcohol. Oleyl alcohol, Gib, is an unsaturated alcphol with the T. ' That the fineness ratings may be more significant to those not familiar with the North numbers, the degree of fineness obtained in different types of products by various manufacturers Is shown in table I. It was-Impossible to measure many of the outside whites on hand because of the granulation that, had occurred, ' In- the case of sodium oleate, because with 2 percent so much remained undlesolved, only 0.5 percent based on the vehicle by weight was added. The ben zoic acid was also lower, being 0.12 per cent of the vehicle by weight. ' The results of the run are Bhown in figure 2 where, as with the lithopone Table 1 North White flat wall 7` .7 7 6 5U Number of Savoral Outside white 6 6 5 Typo* and Brand* Light gray porch and deck 5 4 of Paint* , Interior gloss and quick d.r.y...ing- wh it`e enamieilfsl 2 2 2 II There was considerable difference in the consistency of those paints which were ground successfully. As no Vis cometer was available at the -time of grinding {later they seemed to have thinned - somewhat), the finished palnta were given an arbftrary rating on a- scale of l to lo and also,- as a measure of plasticity, squeezed from a 5-cubic-centi- palnts, the North number ratings of pig ment dispersion are plotted against hours In the pebble mill. The paints with die. thyleneglycol and sulphonated castor oil are the only ones which deviated appre ciably from the one which contained no wetting agent. While these two paints were grinding the sound from the tum bling of the pebbles waB louder than with Sodium oleate ............................'................. 7.4 Blown linseed oil.......................................... 10,4 Linseed fatty acids.........................................10.4 Sulphonated castor oil........................... B.0 'Ester gum varnish (no agent).................. 7.0 , Ester gum varnlah (sulphonated cas tor) ........................................................ 6.0 Since several of the wetting agents had proved effective tn the pebble mill grinding of both black and white paints, several runs were made on a 12-inch laboratory three-roll , mill In an attempt to see whether similar results might be obtained In roller mill grinding. As it was impos sible to grind the untreated Ithopone Ip,, the different vehicles at the same pigment concentration, each paste was made up to a good grinding consistency, each as similar to the other as the varying times of consistency permitted. All the pastes were given equivalent stirring by band and then run through the mill which bad been previously set and locked In posi tion. The'paint at the ends of the rolls, poorly ground because of the grooves worn by the guides, was discarded. In taking the viscosity measurements all the -ground pastes, were reduced two volumes to one volume of alkali-refined linseed oil so that all might be measured on the plunger type apparatus. Results are given In table V: Table 5 Grinding of Lithopone Paints on s 12-inch 3-Roll Mill A--Untreated lithopone...............,...........24 ox, Alkali-refined linseed oil............... 21 fl, of B--Untreated lithopone ..........................24 oz,' A. R. Unseed with 2% Twltchell base .....................................................12 fl. of, O--Untreated lithopone..............................24 oz, A. R. linseed with % blows' lln- .Beed ....................................... 14 ft. os. D--Dispersion grade UthOpone.................24 ox. Alkali-refined linseed-oft...............12 fl, o& Total toad Total load on mill North Consistency In seconds Time Flnenew Baste A B C D. 58 grams no travel 50 2.4 2.0 108 grams 2.2 8.0 1.0 1,0 in seconds 784 188 280 100 number 2 SU 3 4 As-the comparison between the Twltchell base 265 and the blown linseed oil was rendered indeterminate by the difference In. grinding time, two more batches were run with slightly modified formulas and a OIL, PAINT AND DRUG REPORTER ., | November 14, 193.4 79 setting of the mill. Results are given, .la table VL ... linseed oil and Twitcheil base a- Na 3 grind may be obtained with.each in font hours, but.If a Wo.. $4 grind Is desired, . Table 6 Grinding of Lithopono Paint. on a the Twltchetl base requires ten hours while the blown linseed oil requires twenty hours. The effectiveness of the wetting 12-inch. 3-Boll Mill agents in general is apparently not con E--Untreated Ifthopone.....................a-.-26.doz. A.R. llnneed with $ Twitcheil fined to any particular period of the grind ing process, . ' liue...,.,,,,.,,....,..,,,,,,,, 14,0 fl, azr , In five of the six mixes the grinding F-Untreated Itthepone......................... 26.15 oa. is proportioned to the consistency of the A.R.-linseed with 2%, blown Jtn- mix, but In the case of the Twitcheil baBe, * **b*I.................................. Conaiatency of unreduced in seconda:'-- Total Total Total Total Joed toad load load Time on Fineness Jaate. SS5 612 CCS 712 roill-ln North r- ro. pn. gm, gnu eeconda, number. 14o.0ne11. o0f2.the heaviest, yet the easiest grind ing paste, shows that the mechanism of the dispersion Is not simply a secondary effect of wetting caused -by defloceul&tlon of the pigment accompanied by lowered ? JHo 10 10 4- 245 3 consistency and hence more vigorous ac 43 2.5 2 242 8 tion of the pebbles. ^_ , The results . of grinding two carbon black pastes on the roller mill by the The surface tension, lnterfaclal tension against water, and acid number show no relationship to the effectiveness of the ve- The 1934 Paint Industries Show The 1934 Paint Industries Show was tures of most o!c the exhibits appear in the most impressive and colorful of the thvee which ha bee ^ slncc it was established in 1932 as. a concurrent feature of the meeting of the Federation of Faint and Varnish Frolotion Club*. F. C. Atwood u,, chair- this issue. One of the outstanding ex- Lacquer Association, .intended to. give the members ja picture of the year's record in research and development MS KS man of the committee which arranged the initial exhibit, Clarence W. Clark managed the second one at Chicago ,a,,, ,, .- , . , last year. This year's show was In charge or Edward F. Maloney, There were forty exhibits, thirty- seven of which dealt with materials were displayed. The booth was in charge of Jv JEL Stewart and A. R. Van Heuckeroth, of the scientific staff, Prize drawings for radios were won by E. j, Probeok, of the Jones-Dabney Company, Louisville, on. the first day; Q. W. Rundle,! of the New Jersey Zinc Company, Philadelphia, on the second Flneneas--North Number Figure 2 and equipment. These were fully de- scribed in the October 22 issue of the Oil , Pa in t a n d Dr u o Re p o r t e r , and pic- day; and James H. Abraham, of Meyer & Loewensteih, Long Island City, on the third dayi . . . Stiff t CrlndlBf Cu mi BUok fM uwmu _ _________ _______ __ _________ 1 Mr. Maloney made the following re ------________________^ 1___________________port on the [show to the federation pounding of the pebbles was' excessive in both cases. ir xami a Holler Mill Grinding convention:--1 ' The paint show committee of 1934 reapectfully submits the' following report of its activity,] to date,'to- the members i______ 0-3uXpherutd CMfew Oil OrDiethylen# flljool ` The data on roller mill grinding are of the Federation of Paint and Varnish obviously Insufficient to show all the ef- Production Clubs. 4i PlJi Oil 94Solvenol H 0Herooinl So.'3 Dipntpn* Ko L2 fects produced by the wetting agents but are included because of the several features of the problem which they bring. to light In table V, judging efficiency by the time. required and .the fineness at- Because of .the careful consideration of the 1933 paint show committee, this year's committee was given a splendid Start as the result of a questionnaire circularised among last year's exhibitors cwanel Bncoia Alil 2 *65Ethjiend aiycio 1 Twieoh*ll ih S&dlua Olht .Llnaed Oil Wldt . talned in grinding the same- quantity of pigment, untreated lithopone and Twitcheil ' base are superior to >,<. lithopone and no wettlng agent. The others are indeter* mtnate. In table VI the use of blown Unseed oil and Twitcheil base is shown to produce equal results. In. the pebble and sent out before the new committee took control ; This questtonnairre indicated the satisfaction of the 1933 exhibitors with the! results obtained by them and an intention on the part of a large majority to again take advantage of the show in 1934. jA suggestion was repeated N mill also with these two agents an equal by a number ^f them, however, that beexpendlture of mechanical effort was cause ot the contents and educational na- 3 neecsoary to produce a No. 3 grind. In ture of their displays, they believed that the grinding of carbon black, as ehown in the national association should be' given table VII, sulphonated castor oil proved an opportunity to view the exhibition and slightly beneficial, although the improve- that they specifically recommended tnat X --41 ' ment was not equal to that obtained in the paint show be held over through at the pebble mill for the- same degree of least a part of this second, convention, dispersion. How the setting' of the mill Tour committee is therefore pleased to and resultant changes in fineness would report that arrangements were made with affect all these results has not yet been the national association whereby the paint "k- determined. ' . show will hold over during October 31, The plant batches ground on roller mills the first day of the national association's pebble mill are of course, not comparable to any convention. j. laboratory batches because of the pres- Active work on the present show was ence of the inert plgroentB, The expert- started by your committee during the naame methods as the lithopone pastes are j shown in table 7. ` Table 7 If Grinding of Carbon Black Paint* on a ; 12-inch 3-Roll Mill G--Carbon black (super spectra. .., 1.14 os, Alkali-refined linseed oil................. 16 fl. 02. H--Carbon black (super opectra.ih os. . A.Ri. linseed with % aulpbo- nated castor ................. ................ ig ft. consistency in seconds of paste, reduced 2 to :1 by volume, with A.ft. UnBeed oil. ,,^ . _, Total Total Total Fineness Time North _ . toad load load <m mill num- ; Paste. 208 gro. 256 km. 306 gm. Id seconds, ber, 101 12,6 3,6 475 .57 10.0 6.0 465 2%- P...JJi*1?!* ** grinding of ten consecutive- t plant batches of a paint consisting of ccarbon black, silica, and asbestine in a 65- ^gallon, 65 percent nonvolatile material, -.varnish or low acidity, records were kept wh batch of the time required on & three-roll mill and the degree of dis- Iperston obtained. Blown linseed oil and |.linseed fatty acids were added to several gjf the batches. The times varied from ;-i'.fcrar to seven hours, and the fineness of r$712&-J:ema!ned practically unchanged at "MS1 fii* The time on those' batches containing wetting agents varied and were intermediate with respect to the hide as a grinding medium. That surface tension and lnterfaclal tension against water are not indicative of the-tendency! for a liquid to wet a solid 16 also evident! frS? 1},e A*** of Bartell and Osterhof," _.The liverlng of the untreated lithopone with low-acid ester gum varnish suggests that enough alkaline.material might nave 3M'?len* 60 form soaps with the agents and that re suits might have been somewhat different with a completely inert pigment Sodium oieate soap, however, when added directly seemed to possess no wetting properties. ments, however, do Illustrate the importance of manipulation of the mill and the extreme difficulties of measuring the Offects of wetting aide In such a variable process; . . - uonemsiona A few of the InfluencA* rrf w a+h t u t bagyetnhtes doantarolbleurt mtheil*l einerImfnte^i^Stm father Inadequate to JfneJiJi EJSSnSTX?"ay be BUhS^ffSS andptpnewt 8 MUWntratkJn Pebble Mill Grinding, of Carbon Black o black, as repre HSSSSSsented py the curves in figure 2, presents two rather striking features--<1) The Sent S tL vahhSa between tlle number or agents for which some wetting X20I/*%8 iSall5ed: which have' no effect. P Tn til, nshhi, mfii meats were^cotfduetii^n +*,,, ,, tTMi2;Lih^aftJthat* the only helpfui agents, sulphonated castor oil and dtethyleneglycol, are two that gave poor grlnd- ingwjth lithopone. The physical constants of the vehicles bear no relation to the grinding times. MtlanrtT*!?1 than weald tlm? hut if,'la *1 ^ P. * ^ro?n similar tllat mSs?rJuE"wfli obtained on Even the consistencies of the paints' show no significant variations. The differences MiTMblTM comblnattons38]?,^nilSneJt8. vehicle ?e^lt> wfa. two Z?re. Prt)bal>iyt due to slightly dif two vetildes aeem^ Bomewha?emeeaKcr ^n- ferent thinnings obtained by variations-in the completeness of drainage of the wash gfoernmearatlloiznatiuopnos.n wThheicIhndtiocatbioanses,1 shwoweeepvienrg^ Unfortunately, this was sufficient to mask variations in the grinding- pastes, which must have been Pi*ment the cmcieticy of different wetting a??nta jM.jsrinding aids varies consider- middle of June, when each .previous exhibltor was given a preferred opportunity to reserve spate at the 1934 show before a general announcement was broadcast to new prospective exhibitors. About the middle -of July a list of over five hundred prospects were approached by a circular latter, individually addressed, and accorapan,lnesdert caontfaloinoirng*lapT1h'otwogitrtal pPhri5ccerseparnod ductlons of each display at the 1933 show. L5^ ^reoted'^naMdualty tSa^aps^caily "S SSESS ever, contact;was made with the' May- flower and arrangements made whereby 016 two booths held for the scientific section of thi national association were transferred Into this convention hall and the DPen booths taken by other exhibitors, Three of our exhibitors are using two apaces each or Its aquivalent. 1116 ^ncrenee tn siae of your paint show since its Inception, two years ago. Is sh0TM ^ `be; following statistics i- 1032 ., I1 J,,JIJS,vh S'.S.S.iIBxffhl'iShit.sSbty.rsfluup". l"ne?sSly? &5$Sl . 25 " 01 17 S Fineness--North Number tr- Figure 3 ably. Of the agents tried, Twitcheil base 235 proved to be the most effective with an? sulphonated 111.........................:-- 81 ?! *****..........................-- 40 87 This eu'argement of the paint show - Flcar 3 beB^-wlth carbon black. has caused your committee to recommend i-fiiaMiTf f#5?2Aorr^p<l^^ncea^etwee11 that because ;the purpose of the show is CrlD&inc of extern Xlaak Ej ",,Jim w,ettingl 2rt!5h?i^liwiSt,5Jfr1Sen? an educational one, intended to place beThe fore the members of our industry inter- a!^e^ ,^y eating developments, during the few days VAflHISH - HO WETTING . AQENT. OYASHISR- 3ULPH0HA7ED * CASTCft OIL S-ALftA3.I REPIUEB LINSEED-' n o irerniio as w t !^i dlethylenegly- J?Va*wElJiWrB,^ia ikl1?1*0116 5l5S i?85' tll-0'iTtl linI &0i.ds,' rt>zpllh, and .rpfc* 1 fulfihfmated castor oil. !i^s*.*ir~rerLGe ln grinding time effected agents with untreated litho- Pn enough to be -of considerable Importance. In some cases to obtain a certain fineness only one-tenth, the time SKLJS,llr!!?ifu,r * ' agTMA^hat ?as uecessary . with, another. With . carbon black the differences in grinding times wre not so great but. were large enough to Se*?.E T)rfl'ct{cal consequence in actual Pr<>"hctIon. 1 * value, surface tension, and relative lnterfaclal tension against water are not indicative of the grinding efficiency of & vehicle. v ASSESS?ft?rem*5t ls to Arthur the members ;are gathered in convention, serious coneideration be given to limiting the size of future shows to forty exhibits, with preferred attention given to the edu- catlonal nature of exhibits, and that In general, as competition -for space becomes more keen, rio attempt be made to take advantage of ithis condition to Increase the average price of space, Your committee could not feel satisfied in concluding this report without expressing Ita ^sincere appreciation to the companies In our industry who so generously contributed time and service to the administration of our endeavors, to the trade journals who have b o effectively -co-operated with us, and to the officers 0f the federation and previous paint show committee chairmen who have given us unlimited assistance, Later, M*. Maloney, for the paint termance^a* part at'thta^Sir^ show committee, issued the following Hours Id 10 pebble mill -tn limiting times. Nine more batches of the ?-mtwere ground on another three- I??,1, By changing the setting of the mm the grinding time was varied from three to eleven hours without appreciably altering the number. 4% which was ob- if 'IS4 V 9*L a tlSht, roi'I the first haif ot the hatch came through with an lm- . proved grind, but taken aa a whole the batch was not improved,- Pebble Mill Grinding of Lithopone That the time necessary to obtain a specified grind with untreated lithopone varies considerably with the addition agent is evident from the curves In fig ure L It is also worthy of note that this difference in time depends on. the grind that Js desired, For instance, with blown bo very slight. Measurements made on the roller mill pastes with and without aulPbmmted castor oil indicate a slightly thinning action of the sulphonated castor oil. It Is a matter of Interest that the effective agents were liquids immiscible with the oil and that ethyleneglycol, the other Immiscible agent tried, also caused a slightly increased tumbling of the peb bles. From figure 3 it may be seen that the sulphonated castor oil also aids when used with a varnish vehicle, and it is believed that in the latter stages of the run improved grinding was actually ob tained but was obscured by a slight chip ping of the pebbles, as in the run with diethyleneglycol and an oil vehicle. The nection with his work at Washington Uni'verslty. Materials were graciously s u p- plied by the following companies:__ Certain-teed Products Corporation Missouri Paint A Varnish Company. Steelcote Manufacturing Company AP.. DTt.eGbbeionrsgeVVaanrinsihshcCSommn^aynyv` Markay Manufacturing Company, Spencer Kellogg & Sons Inc Chemical & Figment Company. G, S. Robins A Company Mallinckrodt Chemical Works E. I. du Pont de Nemours & Co Carbide & Carbon Chemicals Corpora- tion, Hercules Powder Company Glyco Products Company ' . Literature Cited `American Paint and Varnish ManufacctuurlearreNoA.s4s2o2c.iation scientific section e1 fr- * Gardner, H. A., Physical and Chemical Examination of Paints, Varnishes, Lacquer, and. Color, sixth edition, p. 538 (1933, * Oaterhof, Industrial and msirnerHg OhemUtry IS, 1277 (1927), . *S^eeaioTl hibltors at the paint show and otheis who had contributed to the success of thj year's exhibition:--- We want ; to take this opportunity, through the trade press, of thanking each wanhdo, evweirtyh ecxohridbiiatol,r aanndd tthhoeuirghtcfouwl ocrkoenr-s pideratlon, helped to put over the work of the paint; show committee and make the paint show the success it was. It has been a pleasure to the committee to perform the -work whmh the administra- tion ths show requires, but it became a Pleasure only because the exhibitors made it so- . To other friends, including particu- larly- the trade press, we also wish to extend our sincere thanks for their hearty and willing co-operation. ------------------------------------ ml * A. . .. ., Members of the association were kept ,J1 touch with the outside world, so to spoak, by the "Good Morning!" service of the Anderson-Frichard Oil Corpora tion. which'1 distributed copies of the n >w York Xerald-Tribme %o thfl rooms v. 80 November 14, 1934 OIL, PAINT AND DRUG REPORTER- Those Who Attended the Washington Meetings A Abbott. John, Imperial Varnikb & Color Com pany, Toronto. , Abraham, James H., Mayer Sc Lowenstein; Long Island City, N. Y. ,, Adams. R. F., Paint, Oil and Chemical Re view, Chicago. i Allegaerfc, John, United -Color Figment .Com pany, Newark. Allen, A. O., A. C, Horn > Company. Long Island City, iN. Y. 1 Alwyn. T. E., American Can : Company, Phila delphia. i Anderson, Arthur, West Paint; & Varnlah Com pany, Everett, Mass, | Anderson, George, Anaconda 1 Sales Company. New York. , Anderson. R. B., Brooklyn Varnish Manufac turing Company, Brookyn. ' Andrew, David, Ferbert-Scliorndorfer Com pany, Cleveland, . Armstrong, W, G,, Certain-teed Products Cor poration, St. Louis. Arnateln, M,, Arnesto Paint: Company, New York. : Arrington, W. T., Southern Shellac Manufac turing company. Memphis. ' Ashman, G. W,, New Jersey iZinc Company. A-twood, F. C.. Atlantic Research Associates, Inc., Beaton. ; Auchlncloss, W. S,, Oil. Paint and Drug Re porter, -New York. ` Austin. -A, P., Canadian Industries, Ltd., Toronto, ; Ayrault, John, Jr., Larkin Company, Buffalo, N. Y. : . B! Babcock, Stephen,General? Plastics, Inc.. North Tonawanda, -N. Y, ! Baechle, J. E., American Can Company, Chi cago, | Bailey, W. H,, Alcatraz Company, Richmond, Virginia. ! Baldwin, W. S., John W. Masury & Son, New York. : Bale, A. C.. Sewall Paint & Varnish Company, Kansas City. j - Dantes* R. M., American Cyanamld & Chemical Corporation. New York. > . Barlow, Hugh W., Marietta j Paint & Color! Company, Marietta, Ohio. ; Barlow, G. W., Marietta Paint & Color Com pany, Marietta, Ohio. : Bates. Howard C.. John D. Lejvls, Inc., Provi dence, I Bealtes, H, L,, Kentucky Color & Chemical Company. Louisville. | - Beall, K. S.. -New Jersey ZincjSalee Company, San Francisco. i ' Beatty, C. F., Socony Paint j Products Com pany, New York, j - , Becker. Lawrence. R. A. Becker Varnish Com pany, Cincinnati, ! Beer, Fred A., Western Dry polor Company. Chicago. : Beialer, w. H., Crown Cork Si Seal Company, Baltimore. ! Benedict, P. A., Godfrey L. Cabot, Inc., Bos ton. i BendelarJ, a . E., Eagle-Picher[Lead Company, Cincinuati. f. Bennett, J, C,. Wilson & Bennfett Manufactur ing Company, Chicago. ! , Bennett, March G., Samuel Cabot, Inc., Boston, Bennett, Wallace F.r Bennett i Glass Sc Paint Company, Salt Lake City. ,i Biddle, O. J.. Biddle Company,',-St. Louis. Bidiack, V. C., McCloskey Varnish Company, Chicago. j Binswanger, Jack G., Thomson Wood Finish ing Company, Philadelphia. ` Etfsbee. E. C., Blebee Linseed Company. Phila delphia. ; Black. C. H., American Can [Company, New York. ' Blackleage, E. S,, Devoe Sc Raynolds com pany, New York. i Boetter. W. H,. American Can Company, Cleveland. i Bonnie, Sevier, Kentucky Colin* Sc Chemical Company, Louisville, Ky. ; , B^nney, R. D.. Congoleum-Naim, Kearny, N. J, i Inc., Bonstedt, f . A., Binney & Smith Company, New York. ; Booker,.S. E., PeasleeGaulbert Paint & Var nish Company. LouidvtlJe. Ky. Boomer, G. E., Lowe Brothers! Company, To ronto, Can, t Boesert, J. W.. United Color Pigment Com pany, Newark. ; Eoughton, G. W,. R. T. Vanderbilt Company, New York. \' Bownes. Frank,Frank Bownea Company, Chel sea, Mass. ; Bradley, E. A., Perlseal CompaViy. New York. Brennan, T. F.( American Can 'Company, Bos ton. : Brigham, L, M.. American Palni Journal com-' pany, St. Louis. ! Brock, J. W,. Canadian Industries, Ltd., To ronto. j Broecker, John. F.. Krel Figment & color. Corporation. Philadelphia. \ Bricker. W. E.. . Atlantic Refining Company, Philadelphia. ' [ Brooke, Fred L., Chicago. Brown, Allan. Bakelite Corporation. New York. Brown, Charles W., Gould & Cutler Corpora tion, Boston. j Brown. Arthur F,. Imperial 'Color Works, Glens Falls. N. Y. i Brownell. A. W,. American -Paint Journal Company, st. I.ouin. Binder. T. A., M. A. Bruder & Sons, Phila delphia, : Bungart. C, H. A.. Headquarters PaintSc Var nish Company, Brooklyn. ! , Bunting, C. C., John P. Cochran Company, Cleveland. i Byrnes, James W,, James W. feyrnes Shellac Company, New York. *! Callahan, P. H.. Louisville Varnish Company, Louisville. Calo, P. E., General Naval Stores Company, Chicago. ; 1* Came. G. L., Resinous Products & Chemical c.Company, Philadelphia. ! Campbell, A., Acme White -Lead & Color Works. Detroit. j Campbell, Donald, Hooker Glass! & Paint Man ufacturing Company, Chicago., . Campbell, Thurlow J., Berry Brothers, Detroit. Carllngton. I. T,, Egyptian Lacquer Manufac turing Company, New York. ! Carlson, S. F., Acme White Lead & Color Works, Inc., Cleveland, I * Carter, F, M., National Lead Company. Now York, \ Cary, Robert, George B. Caryl & Son, Inc., Chicago. : Case, F. O., International Lead ^Refining Com pany. East Chicago, III, } Caspar, C. J., Pittsburgh Plate Glass Com pany, Pittsburgh. | Caspar, J. p., Pittsburgh Plate Glass Com pany, Pittsburgh. j Cavanaugh, j,, F., Thompson Hayward Chem ical Company, Kansas City. ; Chamberlain, A. J,, Gueder FaBsohe & Frey Company. Milwaukee, '; C. M., St. Joseph Lead Company, New ^ Cleveland?" I>'' B*1Hnfrs-CbapFfn Company, Chase, H D., E, & F. King & Co., Boston, Chase, W, S,,. Harahaw Chemical Company, Cleveland. ' Chessman, F. P., Cheeaman-Elllot Company, Brooklyn. Chitds, Sam D., J, C. Fushee Sc Sons, Minne apolis. Chinery, F, L,, Eagle-Picher Lead Company, Cincinnati. ' Church, J. W., Pure Calcium Products Com pany, Painesvllle, Ohio, Clark, C. W.. E. I. duFont de. Nemours & Company. Everett,. Mass. Clark, J. T. Eagle-Picher Lead Sales Com pany, Cincinnati, Clark, R. O., Jewel Paint Sc Varnish Com pany, Chicago. ' Clarke, Frank, Pittsburgh Plate Glass Com pany, St, Louis. Clarke, Kenneth E.r Charles R. Long, Jr., Company, Louisville. Clemens, R. J., Standard Glass & Paint Com pany, Des Moines. Clement, C. H,, Clement Coverall Company, Camden, N. J, Coerdt, Robert- H., Ansbacher-Slegle Corpora tion, Cleveland, Cohen, A, J., C. A. Woolsey Paint & Color Company, Jersey City.- Coleord. H. F;, American Can Company, New York. ': 1 . * Cole,:-E. J!,: Manufacturers' Varnlah .Company, ' Brooklyn.- * ............................................. > Collins, -Russell 3.. Plastic Products Company. Detroit! , y Wmf E. E&sterday, H, E,, Andersoit-Prlchard Oil Cor poration, Akron, Ohio, Eastwood, Charles W., United States Gutta Percha Paint Company, Providence. p.bferhart. M. J., American Can Company, Chicago. Eberman, Fred. Werner G. Smith Company, Cleveland. Eddy,' P. S., Porter Paint Company, Louisville. EdgerJy, D. W.. Titanium Pigment Company, St. Louis. * Edwards, H. G.. American Company, New York. Elde, A. C., American Zinc Sales Company, Columbus. Eitet, Paul T., Sterling Paint & Color Com pany, Louisville. Riser, G. T., Benjamin Franklin Paint Sc Yar- nlBh Company. Philadelphia. ** Elton, Reuel W., Washington, D. C. Elwang, W, B,, Sanders Brothers Company, Richmond. Emmons. Thornton, American Zinc Sales Com pany, Columbus. . Esposito, J. R., Ault Sc Wiborg Corporation, New York. . Everett, Ralph II., Keystone Varnish Com pany, Brooklyn. : .F , Falrbrother, E. M., Mobile Paint Manufactur ing Company. Faolg, E. W., Lowe Brothers Company, Day ton. Feinberg, Harry. H. B. Davis Company, Bal timore. - Felton, Horace S., Fel^on-Sibley Sc Co., Phila delphia. Fenton, W. F., Enterprise Paint Mnnufactur- lng Company, Chicago. Ferguson, George M.. Standard Ultramarine Company, Huntington, W. Va. Figgis. D, W., American Can Company, New York. . . FInek, David N,, Hanllne Brothers. Baltimore. Fitzsimmons, H. S,, Krebs Pigment Sc Color Corporation. Flaumenhafe, Irving, Lacquer & Chemical Corporation. New York. Fleming, J. P., J. -Lee Smith & Co., New York; Flynh,T. A., Butler-Flynn Company. Washing ton, D. C. Fontaine, V. H., Jr., Imperial Paint Company, Louisville. Forde, H. E;, Forde. Vogt Si Co., Malden, Mass. . Foss, C. P., Wooster Brush Company,- Wooeter,, Ohio. ' Fox. Louis V., M. Ewing Fox Company, New York. Reuel W. Elton Secretary Collins, T. R., Pittsburgh Plate Glass Com pany, Newark. Colllater, L. f ,, Sherwin-Williams Company, Cleveland. Conklin, L. H.( Flood Sc Conklin Company, Newark. Cook, Charles Rr, Cook Paint & Varnish- Com pany. Kansas City. Cooke,. G, W., Reslnoua Products St Chemical Company, Chicago. Cooledge, H, n ., ' F. J, Cooledge & Stfns. Atlanta. Georgia. .-! Coon. John H,', Pittsburgh Plate Glass Com pany. Baltimore. Corbin, A. H., Arco Company, Cleveland. Corcoran, John C., Aiabastlne Company, Grand Rapids. ' Covert, A, D., Plastic Products Company, Detroit. ] Craig, M. D., Murray Oil Products Company, Philadelphia, - Creary, A. V., Continental Can Company. New York, Crowley, J. L,, Thompson & Co., Pittsburgh.-. Dabhey, William C., Jones Dabney Company, Louisville. Dali, W. A., National Lead Company, Cin cinnati, Daly, C. E,, Flormon Manufacturing Company, Pueblo, Col. Dsnahey, Thomas F., F. J. Donahue Varnish Company. Detroit, Darby, Charles A.. Brookline, Maas. . Darling, I, L.. France, Campbell & Darling, Inc., Brooklyn. . Dauler. H, N., The Neville Company, Pitts burgh. Dauler, H. N., The Neville Company, Pitts burgh, Baum, Adam E.,- Impervious Varnish Com Pany, Pittsburgh. Davis, H. B., H, B. Davis Company, Balti more, Dayls, H. L,, D. H. Litter Company, New York, Depew. H. A',, American' Zinc Salea Company, Columbus. . Derr., H, a .,' Marietta Paint '& Color Com pany. Marietta. Ohio. Derrick, F. J,, Perry Sc Derrick Company, Cincinnati. ._. DeVos, A. R... Breihig Brothers, Inc.r Hoboken, J. .. Dewar, John B,, Master Painters, Pittsburgh. Dewees, Vincent E.. Calbar Paint & Varnl3h Company, Philadelphia. * Doggett. H. G.. New York. Doggett Stanley H,,. Stanley Doggett, Inc., New York., Donalrue, p. J.; The F.' J. Donahue Varnish Cotnoany, Detroit. ' , -Donaldson. L, H., Anaconda Sales Company. New York. DonnoIIy, R. E,, F, 0. Pierce Company, New York. Dougherty. W. W., DeMert & Dougherty. Chicago. Dowdy, Henry R.,, Dowdy Brothers, Philadel phia. Drake, L, L.. paint & Varnish Production Manager, New York,. Dresser. C. H.. AndersonrPrichnrd Oil Corpor ation, Oktahoma City. Dunford. G. B., Interooastal Paint Corporntion, Chicago. . Dunn, Yr. F,, Matz Paint St Varnish Com pany. Madison, Wia. Dunning; H, E., American Commercial Alco hol Corporation, New York, Dunning.' S. O., Muralo Company, Gtaten Island., N. Y. ' : Dunpliv, .r. p., New Jersey Zinc Company. Dwfpsht, Maitland, Edward Smith Sc Co.. New York, . W, C. Dabney Executive .Committee Foy, E. A., Jr., Foy Paint Company, Nor wood, Ohio, ' Frayser, P. C,, Martln-Senour Company, Chi cago. Frederick, G; W., Smith-Alsop Paint Sc Var nish Company, Terre Haute. Ind. Frederlckson, J. A,, Joltn W, Maaury Sc Co., New York, Frendllch, J. C., Standard Oil Company of New Jersey. ' Frltsch, W. R,, Kentucky Color & Chemical Company. Louisville. FVi'tts, Frank A., Baker Paint & Varnish Com pany, Jersey City. Fuller, A. G., Bush wick Can Company. Brook lyn. G Gardner, H. A., National Paint Varnish and Lacquer Association, Washington, D, c. Gerke, W. II., Sargcnt-Gerke Company, Indianapolis. Gibson. H. O., The Gibson Homans Company, Cleveland. Gilbert, H. I,, Capitol Paint Sc Varnish Works, Inc., Brooklyn. ' Gillespie, J. T.. GlHeaide-Rogers-Pyalt Com pany, Npw York. Gillespie, Louis. GllleHUie-Rogors-Pyatt Cont- ' oany. (New York, Gilman, W, D., Jr., Gllmnn Paint & Varnish Company, Chattanooga. Goetz, Alvin C., Eagle-Picher Sales Com puny, Ihpston. Goldberg, Garrett, Oun'ett M. Goldberg, Sun Francisco, Gnldflchmltt, Charles. Chicago, Goldsmith. MStchol, Armstrong Paint & `Var- nlrh Works, Chicago. Gompf, Harry, Llnrteman Wood Finish Com pany. India narolla. . Goi'don. John B,, Bureau of Raw Materials, Washington, D. C. Gordon. W. W,, Norfolk. Va. Gorrell, W. A., John Lucas & Co., Philadel phia. Gott, E. L,, Gilman paint & Varnish Com pany. Chattanooga. . Grav, E. T., Devoe & Raynoltls Company, Chl- . cago. . Grantz, R. L., Rockford Varnish Company, Rockford. 111. Greene, D. W,, Oliver Johnson Corti|>any, Providence., . GrljTIn. C. W-. Colonial Works. Brooklyn. .. H .. HafCner, E. L., A. Kurdsal .Company, Indian, apolls. '' Haines. Edward, George D, WettrerlLl Sc Co, Philadelphia. Hallett, R. L.a National Lead Company, New York, Hambrpck, Louis, Thorp-Hambrock CompaDjr, Ltd., Montreal. Hancock, E. H,. Louisville Varnish Company, Louisville. : Hanllne, Leon S., Hanllne Brothers, Baltimore,' Hartman, O, L,, InterooaBtal Paint Corpora tion, Baltimore. Hasson, J. O., SherwIn-WilUams Compaoy, Cleveland. HaatSngfl. Arthur A., Hastings Paint Company, West Springfield. Mass. Hasting*, J. V.j Jr., Hastings Sc Co., Phila delphia. H-aun, Oliver K., D, H. Litter Company, Phil adelphia, Havey, M, L,, New Jersey Zinc Company, New York. Hawxhurct, G. T., S, Winterbourne Sc Co.,. Now York, HayeB, C. rM., Ferbert-chorndorfer Company, Cleveland. Hayt, W. H., Eagle-Picher Lead Company. Chicago. ' Haze, Harry S.. Ciricago. Healy, D. J., Spencer Kellogg & Sons, Phila delphia. Heckel. G. B., Secretary, Philadelphia, Heckel, G. B., Jr., Drugs, Oils & Faints, Phil adelphia. Heckel, J, E,, R, T.- Vanderbilt Company, -New York. Heins, M. G., True-Tagg Paint Company. Memphis. Helltari W. G., Sturgeons. Ltd., Toronto. Helwig, F. S.. Monad Paint & Varnish Com pany,' Philadelphia. Hendrickson, H. E,, S. Winterbourne & Co., New York, Hense, O. P,, Eagle-Picher Sales Company. Hermann, Grover M., Wilson & Bennett Man ufacturing Company, Chicago, Hess, C. W., Detroit. Hillman, H. R.r Eagle Paint and Varnish Works, New York. Hinz, J. H., J. H. Htnz Company. Cleveland. Hlrahberg. Milton, Hirshberg Paint Company, Baltimore, .Hock, H. W.. Hock Paint & Chemical Works, Inc., Phoenlxville, Pa. Hodgson, F. R,, Eagle-Picher Sales Company, Cincinnati. Hoffman; H. J... Baker Castor OH Company, New York. . Holkesvlg, C, A., Sherwin-Williams Company, Cleveland, Holland, R. L., Uatry Hutland & Son, Chicago, Holley, C. D., Sherwin-Williams Company, Detroit. Holton, R. F.. Lindeman Wood Finish Com pany, Indfanapolle. Hongier/ Joseph A., Murray Oil Products Com pany, Philadelphia. Horn, A, C., A. C. Horn Couipony, Long Island City. N. Y. . Horn, A, E., A, C, Horn- Company, Long Island City, N. Y. Hose, W. -O., Patterson-Sargent Company, ' Cleveland, ' ' House. G. W.. DeSoto Paint & Varnish Com- oany, Memphis, Howard. H. it.. Thihaut & Walker Company, Long island City, N. Y. Howard, 0. MacG., Paint, Oil S; Chemical Re view. Chicago. Howe. H. E., American Can Company, Ihdlan- anolfs. Howe, K. J,, Thibaut Sc Walker Company, Long island City. N. Y. Hull, Q, C,. Anglo-American Varnish Com pany, Newark. Hursh, Robert. New Jersey Zinc Sales Com-: pany. New York. Hutcheon. R. L., Paseonno-Hutcheon Com* nftny, Cleveland. Hyland, e . r*,, Pittsburgh Plate Glass Com-* pany, Pittsburgh, l Iddlnaa, Carl. Muralo Company. Stnten Island. N, Y. . Ingram, ,T. E.. Pittsburgh Plate Glass Com pany, Pittsburgh. Innes, 0-< G., New York. ,J Jackson, L. N., L, N. Jackson fe Co., New York. Jacobs, A. E,, Mac Lac-Kasebier-Chatfleld Corporation, New York. ,. Jaeger, Daniel. United States Color Card Com- t'Ony, New York. . Jakob. O. G., Continental Can Company,- New York. . Jarden, Charles P,. Sherwin-Williams Com pany, Philadelphia, Jarden, Wt- H.. Jr.. McCloskey Varnish Com pany, Philadelphia. Jeffrey. F, G.., Sargent-Gerke Company. Indi anapolis. Jensen, Fred A.., Ctrlcngo, Joachim, Beniamin, Joachim Research Labora tories, Brooklyn. ' . Johnson, A. W., M-'iit* Paint & Varnish Com-, nany, Madison. Wfe. Johnson, C. 0.. Sewall Paint & Varnish Com pany, Kansas City. . Johnson, H, G.a Middlefleld, Ohio. Johnson, JET. M,, Beck! Koller & Co.T Newark. Joyce, D. P.^ Glldden Company, Cleveland. K KaPtan, J., Reliable Leather Dressing Com pany, Long Island City, N. Y. KeaD'. J. T.. Blnney St Smith Company, New York. Keating, J. R., BInney Smith Company, New York. Kelater. J. B., National Lead Company, San Francisco. ' Kelchner, Edward F., Devoe Sc Reynolds Com pany, Brooklyn. Kelley. N. W,, Southern Varnish Corpon*,- tion, Roanoke. Va, Kdlly. L. E,, Krebs Pigment Sc Color corpor ation, Kelly, N, W,, Southern Varnish Corporation. Kelly. Ralph JX. Chtcavo. Kempf. * Joseph. Wilson Imperial Company. Newark, N. J. Kennedy, Paul Murphy Varnish Company, New. York, . Kenney, X. A., Barrett Company. N>w York. . Kenny. T. J., Devoe Raynolds Company, Brooklyn. ' Klngsborough, Harry, Krebs Pigment & Color * Corporation, Cleveland. . KirknatrSok, Arnold, Mosantn Chemical Com- nany, St. Louts. Klein. Samuel, Caleo Chemical Company, New York. - -. Kfeinman, J,, G. A, Wharry Company, New York. .^ _ Klotz.-J, R. M., Stancb. Inc.. New York.' Knaup, G. S., Imperial Color Works, Inc., Glens Fells. N. Y. ' Knausc, C. A,, Noudex Products, rnc., New ark. Knoke, F. J.; American Zinc Sales Company, Columbus. Knhr, D A., Lowe Brothers Company, Day ton. , !K ;B K I I t I .1 I ) i OIL, PAINT AND DRUG REPORTER November 14, 1934 81 Kcrttim, J, E. i Jooes-Dafaney Company, Louls- Tllle* Eountze, deL., Devoe ft- Raynolds Company. New York. . .Krech, K, G,, Atlantic Refining Company, " Philadelphia. . Knrfees. J. F., J. F. Kurfees Faint Company. ' Louisville, Kurfees, J, F., Jr., J. F. Kurfees Company, - Louisville. JCuater, W. F., Carpenter-Morton Company. Everett, Maas. Ereer, E. ft.,, Sewall Paint & Varnish Com= pany. Kansas City, LaGava, L>. J., Continental Can Company, Mew Tk. Lackey, H. E., E. I. duPont deNemours & Co,, Wilmington. 'Ladd. E. V., Densol Faint Company* Clove- ' land. Landsn, C. J., Sterling Faint & Varniah Com- - pany, Malden, Mass. ;Lane. -Franklin J., Boston Varnish Company, : Boston. laub, Henry, Jr., Rising SUn Color Works, ' Philadelphia. laughlin, Thomas, Edward Smith & Co., New York. Lawler, W. P., S. C. Johnson ft Son, Racine, Wis, .Lazarus, J. L., Crescent Bronze powder Com- ` pany, Chicago, .Leake, Austin, Jr., Semet-Solvay Company. New York, ' ,Le(tlnrwell. L, M,, Archer-Daniels-MIdland > Company, Minneapolis. ALegg, John G., Integrity Paint Company, New .1 Haven, Conn. . Lehman, B, G., Wetherlll ft Bros., Fhiladel- ! pMa. Leininger, C. C., Valentine ft Co., New York. ;Leonard, C. E., Reichard-Coulston Company, New York. lePeaii, N,, Goheen Corporation, Newark. . `Levellle, E. A., Chicago. Levenhagen. R. W., OUdden Company, Clove- ,j- land. 'Lewis. David. Falk ft Co., Chicago, Lewis, G. A., L. Martin. Company, Fhitadel- ; v phia. . ; Lioata, Frangia J., Metasap Chemical' Com- = pany, Harrison, N. J. ,. Lindsay. R. W.. Pratt ft Lambert, Ine., Buffalo. .Litter, D. H., D. H. Litter Company, New .1 York. 'Lodge, H. F., George 8, Mepham .Corporation. East St. Louis, III. - tLong, J. S., Devoe ft Raynolds .Company, Louisville, i'Lcrd, J, B., Boston Varnish Company* Boston, iLotz, P. L., Socony Faint Products Corpora- tlon, New York. .Loud. Fred EL. Murray Oil Products Company, j Philadelphia, . ... Lucas,-J. 8.. Kentucky Color ft Chemical Com pany. Philadelphia. Lundy, J. A., R.. J. Brown Corporation of New York. Lurie, Jacob, Fifaeloid Corporation,. Indian Orchard, Mass. Luesky, Clifford. Progress Paint Manufactur ing Company. Louisville, Lynch, E. P,, E. P. Lynch. Inc,, Providence, Lynch, G. W- Boston Varnish Company, Everett, Mass. M +Maedortald, M. Q., Association Headquarter*, Washington, D. C. ' .' iMacGregor, J. R.. Eagle-Plcher Sales Com pany, Cincinnati. ' , Maguire. E. C., carborundum Company, N!a- y gara Falls. * Maloney, Edward F., E, I. duPont deNemoure ; ft Co., Chicago. :Mangln. Joseph J., United Color ft Pigment Company, Newark, N. J, :;Mann, Harold, Lelatid Moore Paint ft Oil Com- ' pany. .Marling, Paul E,p Thomas ft TTochwalt Lab* ; oratories, Dayton. Haroney, W. K.. Briggs Maroney Company, ( Everett, Mass. ' ; Marshall. Gordon P.. H, Newton Marshall . Company, Boston. [Masse, A. N,, Dean ft Barry Company, Colum- 1 bus. fMaston, Wllllard E... Eagle-Plcher Lead Com- 1 pany. Cincinnati. iMattack, 8. R., George D. Wetherlll ft Co,, i Philadelphia, iMattiello, J,, Hilo Varnish Corporation, Brook lyn. Me liMcCorkle, G. A., Krebs Pigment ft Color- Cor poration. McCorkle. J. B., United States Gypaum Com pany, Chicago, McCrea, J. S-, Blnney ft Smith Company, New York. McDaniel. Giles, McDaniel Paint ft Varnish _ Company, Chicago, JMcFadden, W. L.( La/wrence-MoFadden Com pany, Philadelphia. iMeGhee, Walter, Pittsburgh. * McGovern, James P., Industrial Alcohol InstJ* ' tute, Washington, D. C. i'Mdntyre, William G.. Boston. lUoKalg, Edsar S,. Samuel H. Fretush Paint Company, Philadelphia. I McKay, R* S.t Dean ft Berry Company, Co- 6* lumbus, ,'McKlm, W. A., Pittsburgh Plate Glass Com- rY pany, Newark. F MeMen&nvln, J, F., Felton, Blhley ft Co., ,,g Philadelphia. J | McNulty, F. B,, Joseph A, McNulty Com- *(.? pany, New York. . (j'fMoQueen, F* E.( A. (Burdsal Company, In- 1 diana-polls. , Melehetoier, L. A;, Titanium Pigment Com- > panyy New York; ' U Melvin, G. A., GIllesple-Rogers-Fyatt Com ' pany. New York. Malum, H. A., Benjamin Moore ft Co., Chi- oago. K MerkSn, M. J., M, J. Merktn Faint Company, New York. : Messer, Ira, Watsoa-Standard Company, Fitts ' burgh. tt? Meyer, Fred L., J. Meyer ft Sons, FhllaSel- phi a. : Michel. George J., C. A. Michel ft Co.. Flttsburg-fa. Mleland. M. L., Barker Rust Proof Company, ` Detroit. Miletl, Otto, Chas. R. (Long, Jr., Company, HiOUieville. Milllken, -M. G., Hercules Powder Company, Wilmington. Mlnkoff, Harry, Peerless Faint, ft Varnish Corporation, Brooklyn. 1* Minta, John J., Advance Paint Company, In dianapolis. Mitchell, James A,r A. Burdsal Company, In dianapolis. Moneypenny, T, F., Imperial Varnish ft Color Company, Toronto. Moore, J. C,, Sinclair Reflnlng Company. Moore. R. J., Bakellte Corporation, Bound Brook, N, J. Morgan, L. E., Illinois Faint Works, Chicago. Morpeth, W. R., Krebs Pigment & Color Cor poration, Newark. Morris, C. P., Blnney ft Smith Company, Philadelphia, * Morris, W. H., Areher-Danlels-Mldland Company, Minneapolis. Morton,. E. B,,. Carlpenter Morton Company, Boston. Hueser, B, &,* J, M, Lehmann Company* New York, MuUaly, A. ti.* Advance Solvents ft Chemical Corporation, New York. Mullen, T. J., United States Bronze Powder Works, New York. Munn, R. - J., Lilly Varnish Company, In dianapolis. Murray, DayM, Crafton Company, Boston. Murray, J,, Anaconda Sales Company, Now York. . Murray, K. 8. C-, -Spencer jKellogg ft Bone, Buffalo. \ . Murray, Walter J,, Anaconda Sales Company, New York. N Nalrne, T, I,, Certaln-teed Products Corpora tion, St. Louis. . Nelson, H. J., New Jersey Zinc Company, Palmerton, Pa, Neumann, R, M., New Jersey Zinc Company, Chicago, Nledt, George E., Steelcote Manufacturing - Company, St. Louis. Nixon, A. K,, Hercules Powder Company* Wilmington. North, W, B,, Thlbaut ft Walker Company, ' Long Island City, N. Y. Novak, Charles A., Charles Novak ft Son, Chicago. NumAw, C, H,, Ohio Paul Company, Middle- field, Ohio. O Oberdorf, Charles H., F. H. Levy Company, New York. O'Brien, George L,, O'Brien Varnish Com pany, South Bend, Ind, O'Connor, C< J., Beck* Roller ft Go., Detroit. O'Connor, Charles T,. General Plastics, Inc., North Tonawanda, N, Y. O'Connor, E,, J,, Continental Can Company, New York. O'Noll, C. J., Johns-Manvllle Corporation, New York. O'Shea, William J., Fatterson-Sargent Com pany, Cleveland. Outcault, Harry E., St. Joseph Lea-d Com pany, New York. P Palmer, Fred C.,.New Jersey. Zina .Company. . Parker, Dean H., E. I. duPont de Nemours ft Co,, Philadelphia. Parrott, C. W., Lo-we Brothers, Dayton. PasBof, Harry A.*- Paramet Chemical Corpor ation, Long lalejjd. City,, N. Y. . , Paesonno, Fred J,, Paasoimo-Hutcbeon Com pany, Cleveland. Pastordeid, W. B,, Monad Paint & Varnibh Company, Philadelphia. Patterson, W. A., G. W, S. Patterson & Co,, New York. Paul, M. Rea, National Lead Company, New York. Paulsen, H. A,, Armstrong Paint ft Varnish Works, Chicago. , Dwight P. Joyce Regional Vice-President Pearce, W. T,, Resinous Products ft Chemical Company, Philadelphia. Pearaon, Hugh W,, New York, ' Peck, E. D.* Devoe ft Raynolda Company, New York. Perkins, C. A,, Rutland Fire Clay Company, Rutland. Vt. Perry, Raymond A.* Warren Paint ft Color Company, Memphis, Peters, E. J., Pittsburgh Plate Glass Com pany, Pittsburgh, Peters, E. V., St. Joseph Lead Company, New York, Peters, Martin C., F. J. Donahue Varnish Company, Detroit, Peterson, T. <H,, Hersh&w Chemical Com pany, Cleveland. Pettit, J. H,, Varcum Chemical Company, Niagara FaJls. Plarrer, F. H., National Cash Register Com pany, Dayton. Phillips* Er. 3., Devoe' ft Raynolda Company, .New York. Pierce, D, L.r F. O. Pierce Company, New York. Pine. Milton K., Muralo Company, Staten Island, >N. Y. . Pitt, w. j., DeVilbtss Company, Toledo, Plumb, R. A.* National Clean Up ft Paint Up Campaign Committee, Detroit, Pohl, R. J,, Oxldermo Products, Inc., Detroit, Praeger, Charles H., BraUshaw-Praeger ft Co,* Chicago. Pratt, Malcolm F., Socony Paint Products Corporation, New York. Prior, H. R., Prior Chemical Company, New York, ' Price, Burr, Oil* paint ft Drug Reporter* New York. ' Prleet, G. H., American Paint Journal Com pany. St. -Louis. Frobeek, E, J,* Jonea-Dabney Company, Louis ville, Puffer, Bruce, American Commercial Alcohol Corporation, New York, Pushes, George H.p G. C. 'Pushes ft Sons* Boston, Futorbaugfa, Lon, Thresher Varnish Company, Dayton. R Radcliffe, R. S., Krebs Pigment ft Color Cor poration, Rainey* R, F,, Pittsburgh Paint Supply Com pany, 'Pittsburgh, Ramsay, David P,, Paramount Paint ft Var nish Ran, cC, omFrpeadn,y,MFciChllloasdkeelpyblVaa. mleh ' Company, Philadelphia. do Ravlgnon, Armand F,, Frank Bownes Com pany, Chelsea, Mass. Reardon, J, V,, Reardon Company, St. Louis. Relzensteln, L. J,, New York. Reeves, S, French, John T. Lewis ft Brothers Company, Philadelphia. Reynolds, Paul B., John W, Masury & Son, New York. Rhue, S. N., Pittsburgh Plate Glass Com pany* Milwaukee, Rice, Herbert W., United States Gutta Percha Company, Providence. Rice, Waylond W.j United. States Gutta Percha Paint Company* Providence. Rice, Wilhur U, United States Gutta Percha Paint Company* Providence. - Ridh, Carter B,, Towns Paint Company, Buf falo. Rile, J. H., Hercules Powder Company, Wil mington. Ritchie, William A., Standard Ultramarine Company, Huntington* W, Va. ' Robers, R. E., James B, Slpe Company, Pitts burgh. - Robertson, D. W., Titanium Pigment Com pany, New York. Robertson, William A., Hanlon ft Goodman Company, Belleville, N. J. ' Roemhlldt, R.. Roemhildt Company, Dayton. Roottker, E. 9,, B. H. Roettker, Cincinnati. Rollins* R. C., Jones-Dabney Company, Louis ville. Romaine, E. V.* General Naval Stores Com pany:, New York, Roosevelt, R ,M,, Eagle-Plcher Sales Com pany, New York. Rowe, Harold, National Lead Company, New York. Rowland, H. A,, Elliott Paint ft Varnish Company, Chicago. Rueht, Elmer J.. John Ruohl ft Co., Ciacln-. natl. Rundle, G, W,, New Jersey Zlno Company, Philadelphia. Spitz,. R. J., General Naval Stores Company, New York. : Sproule, C. D.t Pratt & Lambert, Inc., Chi cago. ! Spruanoe, Gilbert*! Gilbert Spruance Company, Philadelphia. Starin* J. A., Valley Stream, N. Y. Stork, Robert Ci, Pratt ft Lambert, Inc., Buffalo. Starkle, T. J., Wlehnlck-Tumpeer, Inc., New York. . Stouderman, A. E,,Devoe &Raynolds Com pany* New York. Steams, Frank N.* Keystone Varnlsb Com pany, Brooklyn,; St^g^^W.^F,, Commercial Paint Company, Steplhen, A. C., Devoe ft Raynolds Company, New York. ^ Stetson, C. B., R, T.Vanderbilt'Company, New York. , Stevena, John D., Aluminum Company of America, Pittsburgh* Stewart, James J K., Anderson-Pxlehard Oil Corporation* Chicago. Stewart. J. R., ; National Paint, Varnish ft Lacquer Association, Washington. Stewart, S. H.* S. H* Stewart Company*'Chi cago. ; Stodder, C. K,, Savograp Company, Boston. Stonemau, W. Hj-i CT>utltry Gentleman Prod ucts Company* Albany, N. Y. Streaen-Reuter, F. A., Frederick A. Stresen- Reuter, Inc., Chicago. . 3tulb, J. R., Schrack ft Co** Phlladelgihla. Sullivan, C. L,, i Jr,, Tresher Varnish Com pany, Dayton. ; Sujzburger, F. L., Enterprise Paint Manu facturing Company, Chicago. Sutherland* Geofge, H, B. Davis Company. Baltimore. Suwall.. Felix S.* Harsbow Chemical Com pany* Cleveland, Sweney, W. Homer, St. Paul "White Lead ft Oil Company,- St, Paul* Swisher, P. L.f Beck, Roller & Co, Detroit. jT Talhm^lL^A., ^Aluminum Company of Amer- T*ue*lg. *T., Monroe, Lederer ft Taussig, Inc.. Philadelphia. < Taylor, Joseph M., Bail. Chemical Company* Pittsburgh. ; TYorkBr H. Kemp Company,. New D. W. Figgis Executive Committee Rutherford. J. J., - Bradshaw-Fraeger- Com-- pany, Chicago.. . Ryan, L. W.. United Color ft Pigment Com pany* Newark.. . . ' ' 's' ' ........ Sampson, Frank J., Sampson Faint. & Color Company, Richmond- Sanders, Stuart, Sanders Brothers Company* Richmond. ' Sanderson. J. MoE.* American Cyanamid ft Chemical Corporation, New York. Saphler, Julian, Robert Ratfh, Inc., Newark. Sargent, Harry G,, Harry G. Sargent Paint Company, Indianapolis. Saunders,' W. G., Southern Cotton Oil Com pany, Savannah* Sawyer, F, K., Werner C* Smith Company, Cleveland. - Sawyer, George B., Ferbert Sohorndorfer , Company, Cleveland, Schafer, Harry, C. M, Athey Paint Company, Baltimore* Schaffer* Joseph H*,. Socony-Vacuum Gil Com pany, Philadelphia* Schantz, J. M,, Hercules Powder Company,* Wilmington. Scherer* T. M., R. J. Brown Company, St, Louis. . Schelling. A. A.* John M. Masury ft Son, ^Brooklyn. Schinke, Carl H., Blebee Linseed Company, 'Philadelphia. Schumann* Carl, Hilo Varnish Corporation, Brooklyn. . Sohmanti, Frank M,, Hilo Varnish Corpora tion. Brooklyn* Schmutz, Fred, New Jersey Zinc Company. Schneider. George W*. Jr., -Foy Paint Com pany, Cincinnati. Schneider, William A-., True-Tagg Faint Com pany, Memphis* ' Schuftll, Harry J., Gil* Paint & Drug Reporter, New York. ScObee, M. F,, SPeaslee-GaUlbert Paint ft Var nish Company, Louisville. Sebrlng, R. hL, American Can Company, De troit* ' ' Seebaoh* E. J,r Ragle-fPlcber Soles Company. Shannon, E. J., E. J* Shannon Company, Cln- clnntal* Sheldon, Albert K,* Albert K. Sheldon Com pany, Cambridge, Mass. Shuger, Herman H., Baltimore Point ft Color Works, Baltimore. Sidford, H. iG., National Lead Company, New York. Sllberman* Israel, Paragon Paint ft Varnt&h Company. Long island City* N* Y. Bime, W* W., United States Color Card Com pany, Chicago. Simmons, C, W,, Chester- Enameling Com pany, Chester, Fa* Simonson, M. j., Standard Ultramarine Com pany, Huntington, W. Vo* Sinclair* N, Murray, Malcolm Sinclair Com pany* -Ltd., Toronto. Skeen, F, S., George D* Wetherlll & Co., Philadelphia. Sklara, Leo, United Color & Pigment Com pany, Newark. Slocum, Clarence W.,' Beckwith Chandler Company, Newark. Smith, Southern Shellac Manufacturing Com pany* Memphis. Smith, Byron J.* Indianapolis Paint ft Color Company, Indianapolis, Smith. Casper, 'Smith Chemical ft Color Com pany, Brooklyn, Smith, H, Vernon, MeDougall-Butler Com pany, Buffalo, Smith, Robert J,, Indianapolis Paint ft Color Company, Indianapolis. Sobel, A. A,, Masco Chemical Company, Brooklyn, .Sobl, George T., Resinous Products ft Chemteal Company, Cleveland, Sollnsky* R, S,, Continental Can Company, Chicago, Sorenson, S. O., Areher-Danlels-Mldland Com pany, Minneapolis. Sorgs, K* I,, General Paint ft Varnish Com pany, Chicago. ... Sorrlek, K* M., Oxldermo Products, Ine., Detroit. Sorzano, Julio F., Detroit Graphite Company, Detroit, Sparrow, E, E., Imperial Varnish ft Color Company, Ltd,, Toronto. Thompson, D. Lj, Washington* D. C. Thompson, J. V,,; Thompson & Co: Pittsborgh. Thompson. S. Wi, Thompson, Weinman ft Co,. New York. ' Throm, C. H.p Rolls Cbemloal Company* Buf falo. * .. Todd, J. D., Ozark Smelting & Mining Com pany. 1 - To*ms-l"in.sflon' S-'' Archer-Daniels-Midland Company, New! York. To t t u s * George P,, Town Faint Company, Buf falo, " *j Traak, Warren T,, Gender, Faeschke ft Frey Company, Chlchgo. . ?rIies; T- Predawt National Paint, varnish & Laoquer Association, Inc.. Wash ington. ; TrOtt, L. H., New Jersey Zinc Company, Troutman* R. E,, Certaln-teed Products Cor poration, St. Louis. Truxal, I., American Can Company, Cleveland. V Valance, E. Spenoer Kellogg ft Sons Sales Corporation, Buffalo, v& Heukeroth,' A. w., National Paint. Var nish ft Lacquer Assoolation, Washington. WaSlli^"x"' I"I'erIal C`r Work8' Verbyio, Albert |E,, Standard Varnish Works, New York* i Vernon, Franklin* Savogran Company, Wash- lngtoct. I Vesper, H* G., Standard Oil Company of Cali fornia. Volt, Frank T,,; French-Wolf Paint Products Company* ' - Voss, A. F.* American Paint Journal Com . pany, St. Louis. iw Waga* J, C*, ' Patterson-Sargent Company, Cleveland* ' Wagenman, S. : C., S. C. Wagenman Paint Stores Company, Cleveland, Wakefield, H. A*, Imperial Color Works. Glena Falls, N. Y. Whkefield, H. L.. Minnesota Linseed Oil Paint Company, Minneapolis, Walden, Gbarles F.* Thurston ft Braidloh, New York. i Walker. R. G., ThJbaut-Walker Company, Long Island City. N. Y. Ward, James SJ. West Paint ft Varnish Com- liany, Everett^ Hass, - Watson, J. D.-, Watson-Standard Company* Pittsburgh* ; Weatherford, W, B., Harwood Brothers* Inc.* Richmond. . Webster, H. E,, Pratt ft Lambert, Inc., Buffalo. i Wehrle, P, W,, S. C. Johnson ft Son, Inc., Radne, Wls, Wendling, Albert C., Larkin Company, Buffalo* Wenrick, H. KJ, J. E. Harris Company. Werthan, Sidneiy, New Jersey Zinc Company, Palmerton, Fa, Wettz, F. A.,; Varcraft Works. Pottstown, Po, * Wheeler, J. N.| Krebs Pigment ft Color Cor poration. Newark. White. G, D., i Pittsburgh Plate Glass Com pany, Newark. Whiteway, P. J., George D. Wetherlll ft Co., Philadelphia. r Whiting, H., Bisbee Llneeed Company, Phila delphia. ' Whlttan, F. P,-, John Luoas ft Co.,. Philadel phia. ; Wieland. E. A.; American Cyanamid Company, New York* . Wlesel, J, B,, Herculea Powder Company* Wil mington. . Wilbur, S. I., Baltimore. Wilkinson, W.: H., Oliver Johnson ft Go., Providence. : Williamson, T.` A., Charles H. Howell Com pany, Philadelphia, Wilson, Ivan V., Monsanto Petroleum Chem icals Inc., Daytoh*. Wlnstel, A. F.: Wishnlck* Robert, Wishnlck-Tumpeer, Inc., New York. , Wittenberg, A.: J., Stroock ft Wittenberg Cor poration. New York. Wolf* James S., Standard Varnish Works* Now York. Wood, J. Heath, Standard Varnish Works* Chicago. Wood, K, H*. Sherwin-Wiltiams Company. Woodlock, H. . J,, Schroeder paint ft Glass Company. Detroit. Wooleon* C. A., Feriseal Company, New York. Wright, Fred C., Barrett Varnish Company Chicago. : Wurtele* V,, ; Minnesota Linseed Oil Paint Company, Minneapolis. Y Yarnell, Walter P,, Yarnell Paint Company, Philadelphia. Yoder, W. W,, Norfolk, Virginia, -Z Zappert, T. H.( Chemical ft Pigment Company, Scranton, Fa* Zimmerman, E. E., Pittsburgh, Zinsser, Rudolph, William Zinsser ft Co Now York. : Zinsser, W. H., William Zinsser ft Co*. New York. i Zlnt.l, W. M*, 5E. I. duPont deNemours ft Co Wilmington. Zoller, Myles M., Eagle-Fieher Lead Company. '82 Novstither f4, 1934 OIL, PAINT AND DRUG REPORTER * Contents of This Issue I National Paint, Varnish and lacquer As sociation .................. 3 Officers and Executive Committee................ 3 . Activities of Production Clubs....................... 6 Clean Up and Paint Up Campaign................. 5 Report on Clean Up and Paint Up................. 7 Local Associations -----------------'.................. 10 Report on Programs........................................ 11 Scientific Section .. i:............. .................. 13, Saving the Surface.;...................................... 13 Traffic Bureau ...................................;.. 14 Traffic Committee Report;................................. 16 Tariff Activities. ...................................... 17 ' Treasurer's Report ...................................... 17 Constitution and By-Laws..................... .. IS Nominations ................................... Master Painters' Code............................i,'V... 23 President's Address ......-----.........'... . i.... 25 Address by NRA Counsel.............................. 30 Code for the Paint Industry................................. 30 Code Diseussion ....!............... ........................ 81. Industrial Sales Conference.............. 34 Introdnction by Paul S. Kennedy................... 35 Nomenclature of Synthetic Resins................... 36 Manufacturers' Viewed............ .'..................... 36 Consumers' Views . .L....................................... 38 Cooperation of Federation;.......................... 38 Industrial Sales Credit Plan......................... 39 Where Are We Going?................-.................... 39 General' Discussion, Prosperity Near at Hand....................... 41 41 Membership ....................................................58 Memorials. .......................................................55 Trade Sales Conference.................................... 44 Chairman's Address:..................................... . 44 Housing Act Opportunities............................... 46 ``Glass Houses"................................... Value of Wholesaler............................................ 47 Tariff ................... ................. -........................ 53 Resolutions ........................................................59 Address, by Donald Richberg...........................59 Election of Officers............................................ 60 46 Committee Meetings ........................................ 61 Developing Dealer Business.............................. 47 Servicing Maintenance Work.,......................... 48 federation of Faint and Varnish Production Clubs................................................ 621 Banquet Session 49 Officers ......................... ...................... ....... ..... 621 Housing for Relief................................................ 49 President's Address ..................... 62 I Secretary's Report ............................................. 63 j Trade Sales Conference......................... 50 Prizes Awarded .....................................................63 Opening of Second Session....................... 50 Technical Papers:-- Cheap Paint ..........:.............................. '............ 51 Cr2e2dit Matters ....;................................. Baltimore Club ............................... ......... ..... 64 j 52 Chicago Club ............'..................................... 65 HOLC Opportunities .............................. 52 Cincinnati-DaTton-Indlanapolis Club..........66 The Dealers' Place.................................. 54 Cleveland Club ........................................ ... 67 Manufacturers' Views on the Industry's Detroit Club ............... ..',,67 -- ' Future ...................................... Lo6u5isville Club....................... ,,.......69 Pinal Session ................................... Action on Constitution and By-Laws......... 66 . Membership for Wholesalers......................... 57 Simplification ....................!......... ......... 67 Trademarks ........... 57 Committee Reports:-- , Arbitration ....................................................... 57 Chamber of Commerce................................... 57 N56ew England Club....................'...... .............. 69 . New York Club....................... ..._________73 Northwestern Club..-.....................................74 . Philadelphia Club...................................... .. 75 Pittsburgh Club....................... ...................... 75 St. Louis Club...................................................78' Third Paint Industry Show.. 79 Legislation ....................................................... 49 Convention Attendance List. 80 Advance Solvents & Chemical Corp.,..____ _ 2 American Can Co............:........... 40 -Archer-Daniels-Midland Co................................... 32 Beck, Roller & Co., Inc..............!........................ 16 Binney & Smith Co............................................... 16 Chemical & Pigment Co., Inc............................... 20 Commercial Solvents Cdrp..................................... 46 Eagle-Picher Lead Co. .[..-................................. 8 Fezandle & Sperrle. Inc.L..................................... 3 Index to Advertisements Franeo-Ameriean Chemical Works'................... 28 Hamilton, - A. K..................... \............................. 28 Imperial Oil & Gas Products Co......................... 24 .Industrial Oil Products Corp_______Front Cover Kelloggs. & Miller, Inc........................ 36 Lavanburg, Fred L,, Co..................................... 24 Mantrose Corp......................................... Baok Cover Murphy Varnish Co............................................. 16 Murray Oil Products Co...........Front Cover National Lead Co.................................................... 4 National Painters Magazine........................... 42, 43 Pennsylvania Alcohol .Corp,....................... 28 St. Joseph Lead Co...................... ...;................. 12 Sherwin-Williams Co.,........................ 37 Spruance, The -Gilbert, Co......... ............. ........... 32 Stroock & Wittenberg Corp.................. 6 United Carbon Co.......... ............. .. .Third Cover U. S. Bronze Powder Works, Inc.,................... 8 Vanderbilt Co., Inc., R. T................. 32 i