Document xd5Oe3QXZLnXwdM2k0991xZem

'' \ 'j s MINUTES r ' NATIONAL PAINT, VAPNISK AND LACQUER ASSOCIATION INC. Drake Hotel -- Chicago,Illinois January 2Sth, 1936 The organization meeting of the Executive Committee of the National Paint, Varnish and. Lacquer Association,Inc., convened at ten A. M. Tuesday, January Loth, 1936 in the Drake Hotel, Chicago .Illinois, wit'* Hr. I. S. Phillips presiding and the following in attendance W. ?. 3EKNETT F. M. CARTER S. C. DUNNING D. T. 'FIGGIS E. D. GRIFFIN M. L. HAVSY L, ?. MOORE E. ?. PHILLIPS C J itOh F. L. SULZ3LR0ER IRSE3T T. TPlIGG H. E. VE35TSR J. HEATH 'GOOD GUESTS ?ABLER FULLER H. A. MSLUM UIL3UR L. RICE HILLI AM ZINTL ASSOCIATION STAFF DR. A. GAPONER M.Q.MACDONALD H ILTON .ABSENT T. C. DABNEY 0. J. S. DS 3RUN J. B. LORD -ELLS MART IN S. R. MATLACK R. A. PLUMB H. ff. RICE UILLIAM RICHTER CALL TOORLSR The meeting was called to order by the Chairman, Mr. E. S. Phillips, with the statement that the first order of business would be the election of a Chairman and a Vice-Chairman of the Committee* ELECTION OF CHAIRMAN It was moved by Mr. Trigg, seconded by Mr. Nebster that Mr. S. S. Phillips be elected Chairman of the Executive Committee. Motion was out by President Trigg and wa3 unanimously carried* ELECTION VICE CHAIRMAN It was moved by Mr. Trigg, seconded by Mr. `.Tebster that Hr. F. L.Sulzberger be elected Vice-Chairman of the Executive Committee. 'lotion carried. NCA o 02722 N 4167 MINUTES C? LAST 1GSTING The Secretary reported that the minutes of the previous meeting had been mailed to all members of the Executive Committee, and that there was no unfinished business in those minutes not taken care of in the agenda for this meeting. The Chairman stated that if there were no objections the minutes would be approved without reading; hearing no objection the chairman declared the minutes of the previous meeting approved. REPORT OF 3UDGST AND FINANCE COMMITTEE Mr. C. J. Ron, Chairman of the Budget and Finance Committee reported that the Bud get and Finance Committee held a meeting last night at which time a proposed budget for 1936 in the amount of approximately $205,000.00 was thoroughly considered. Mr. Roh explained in detail the make-up of the budget, commented on the anticipated in come for 1936, and moved the approval of the budget as presented; the notion was seconded by Mr, Figgis and carried* Chairman Roh advised that the Budget and Finance Committee had given consideration to the type of leadership given to the Association by President Trigg since the organization of the present Association in 1933* and stated that the Committee felt the services rendered by President Trigg were so entirely different from services rendered by other elected officers that the question of his engagement for an additional period of time should be given attention at this time. Mr. Phillips stated that due to many interests involved it was both desirable and necessary to insure the continuance of Mr. Trigg's services as a full-time salaried executive, and he suggested that if the members of this Committee deemed it advis able tlney could refer the ouestlon back to the Budget and Finance Committee for consideration and with authority to arrange with Mr. Trigg for Ms continued ser vices. It was moved by Mr. Carter and duly seconded that the suggestion as sub mitted by Mr. Phillips be approved. Motion carried. ___ . REPORT 0? TEE TREASURER The Treasurer, Hr. Charles J. Roh, presented a statement of income .and expense for a period from October 1st to December 3^st, 1935* and a b<alar,ce sheet showing assets, liabilities and surplus as of December 3^3^ 1935 (copy attached). The Chairman explained the statement in detail and pointed out that the Associa tion's cash and asset position has been greatly improved over last year,that market able securities carried at their face value of $109,000.00 have a book value of approximately $120,000.00, and that the surplus carried by the Association is several thousand dollars higher than it was last year; he pointed out that for the first t'-ree months of the current fiscal year the association has operated well within its income. The Chairman stated that losses in membership during the year had been less than normal. On notion duly made and seconded the report of the Treasurer was approved as read. NCAREPORT OF THE SCIENTIFIC SECTION 0 0272 3 Dr.Gardner stated that due to present interest in the subject his report would be principally on the subject of perilla oil. He stated that he believed it night be advisable for the industry not to oppose the tax on perilla oil proposed in H.R. 10502 presented in the House of Representatives on January 22nd,1936. He ^ated that he believed that perilla oil would be of great value to our ind.usti^f'*' in future years, and that its domestic ''evelopment should be encouraged in every way possible. Dr.Gardner stated that he had arranged to bring in a quantity of . perilla seed to be distributed,with instructions for pianting,through 2- - ' agricultural interests in approximately twenty different states; he stated that arrangements had been made through the Arch e r-Uan i e1 s -Mi dl an d Company to secure three tons of perilla seed from a shiment which has just recently arrived on t?ie Pacific Coast. Dr. Gardner stated that he believes seme work should be started as soon as possible in research in the field of developing synthetic oils for the paint industry from petroleum bases. He displayed a number of oor.els which had been coated with paint* using a synthetic oil made from a petroleum base on a nrocess developed by him about ten years ago. Dr. C-ardner stated that he believed a program for the development of synthetic oils would be an expensive one*reouiring a minimum of one hundred thousand dollars a year for a period of five years,and that for that reason he believed the program night better be handled by individual manufacturers who have research facilities sufficient to engage in this type of program. He stated that he was preparing to publish a report on a Bussian experi ment in t~is field, and he suggested the advisability of making a study of all literature available on the subject, for the purpose of publishing in a circular, for distribution to our members and to petroleum companies, such mertinent , information as night be developed. ?iet7n President Trigg stated that he believed the industry should oppose any duty on perilla oil at this time, recognizing that if it develops later that the crows can be grown in this country in commercial quantities, then mrotection would be necessary; he requested instructions from the Committee as to what position the Association should take in this matter. President Trigg pointed out that Dr. Coulter, formerly head of the North Dakota Agricultural College, and former chairman of the Tariff Commission in Washington, had stated that -erilla oil is a by-product in Japan where the ^erilla cake is used as a fertilizer for the mulberry tree on which the silk worm feeds; he pointed out that the Japanese could sell perilla oil at any price or could even give it away if need be. Mr. Phillips stated that Dr. Dare and Dr. Long had expressed the opinion that it would take a considerable amount of time to prove whether or not oerilla can be raised in sufficient quantities in this country to meet domestic needs. Mr. Phillips stated that he believed there is a reasonable feeling that it may not be necessary to place a tariff on werilln oil at this time, keeping open however the possibility of protection at a later date. Mr. Webster expressed the belief that the industry should oppose a tariff on perilla oil on the general basis of policy affecting the importation of raw materials. Mr. Moore suggested that in view of the fact that the country is passing through a critical stage at the present time, nrd that the only reason for the proposed tariff is to raise Doney for the government's budget, it night be advisable for the Association as such to keep out of the political arena as much as possible, and instead of formally protesting the Tariff go to the Farm Eoard, Granges and like organizations to make our opposition known in an educational manner. Dr. Gardner pointed out that there are in the membership of the Association large crushers of oil whose interest night be in opposition to the interests of paint manufacturers in this case and who might disagree with the actionD-of this committee. Mr. Sulzberger pointed out that only twenty per cent of tho linseed oil used by the maint and varnish industry is raised in the United States and he expressed the belief that the paint industry need have no fear in frankly stating it** position with regard to competing oils; he stated it as his belief that ^'greup can decently and openly oppose anything on which they are agreed, just -3- NCA 0 02724 properly as can individuals. He stated that he did not believe waint manu facturers should be coerced into using any product merely because someone wished to sell that product. He stated that in his opinion the industry should strongly oppose the imposition of the proposed tax on perilla, Mr. Griffin stated that in view of the fact that we may need protection eventually on perilla, it might be difficult to reverse the industry's position in the matter if too active a position is taken at this time in opposing this protection. Mr. Phillips pointed out that the industry's position in connection with tung oil is not so different from that which may now develop in connection with perilla; he stated that the industry had opposed a tariff on tung oil but that with the domestic crop increasing yeprly it may be advisable to seek protection in the near future. . *f / Q President Trigg stated that it seemed to be the sense of tnis meeting that the Association should oppose/any duty on perilla aV thlv-tl-ae and that in the absence of any further instructions the Association officers would oppose such duty confining their efforts if possible to educational methods as'suggested by Mr. Moore but with the understanding that if it seemed necessary to success fully oppose it they would do so with Congress and the committees thereof. It was moved by Mr. Webster, seconded by Mr. Puller, that the officers of the ^ Association be so instructed. Motion carried. Dr. Gardner stated that he believed the Scientific Section of the Association could be helpful to manufacturers in their research in the field of synthetic oils if it was the wish of this committee that the work be undertaken. Mr. Sulzberger stated that if any large expense were involved in the general distribution of information developed by the Scientific Section, he believed the distribution might be confined to those manufacturers whose research facilities would enable them to make use of the information developed; he stated that members of our Association want oils rather than credit for having performed a fine piece of work. Dr. Gardner stated that practically no additional expense would be involved in the study which he recommended. Mr. Webster suggested that Dr. Gardner contact, and offer to work with, such firms as Standard Oil of Hew Jersey and other oil companies interesting them in v making their own studies in the development of synthetic oils; Mr. Phillips ' stated he believed that was the procedure contemplated by Dr. Gardner. UNPAIR COMPETITION COMMITTEE President Trigg read the following section from the By-laws of the Association regarding the appointment of the Unfair Competition Committee: "This Committee shall be appointed by the President in collaboration with the Chairman of the Executive Committee subject to approval, by the Executive Committee." The Secretary read the following list of members recommended for appointment on the Unfair Competition Committee in accordance with the provision in the By-laws: V NCA 0 02725 -ii- MR. H. E. NE3STER, Chairman, Pratt & Lambert,Inc. Buffalo,N.Y. ICR. 17. C.' DABNEY, Jones-Dabney Co., Louisville,Xy. IS. 0. J. S. DE BHUN, Egyptian Lacquer Mfg. Co.,New York,N.Y. MR. JOSEPH D. FATTON,Pittsburgh Plate Glass Co..MilwaukeeWisconsin MR. E. S. FHILLIPS, Devoe & Raynolds Co.,Inc., New York,N.Y. MR. CHARLES J. BOH, Murphy Varnish Co..Newark,N.J. MR. P. L. SULZBERGER, Enterprise Paint Mfg. Co.,Chicago,111. MB. W. M. ZINTL, E. I. du Pont de Nemours & Co,.Yilnington,Delaware It was moved by Mr. Harming, seconded by Hr. Griffin that the appointment of the Unfair Competition Committee as announced be approved. Motion carried. NON-EXCHANGE AGREE-SNT On request by President Trigg Mr. Macdonald read and explained a list of" suggested changes in the non-exchange agreement. Following considerable discussion regarding the responsibility under the non exchange agreement of Class E (wholesale) members and several other possible additional changes the proposal was referred back to Association headquarters for clarification and reference to the Executive Committee for action by nail vote. AMERICAS TUNG OIL CORPORATION President Trigg reported that all outstanding shares of the American Tung Oil Corporation had been accounted for with the exception of four single shares held by four parties, and stated that as rapidly as certificates are being received at Association headquarters they are either accepted as a donation or are cancelled by check in the amount of $12.00 per share in accordance with the agree ment previously presented. He expressed the belief that the stock of the corporation would soon all be in the hands of the National Paint, Varnish and Lacquer Association, putting the Association in position as owning the American Tung Oil Corporation. President Trigg stated that the directors of the Tung Oil Corporation desire to keep the corporation alive to protect the name and for educational purposes'and that the charter might be changed from a profit to a non-profit corporation to enable the continuance of educational work. > Mr. Phillips pointed out that the By-laws of the National Paint, Varnish and Lacquer Association do not provide for the voting of stock of subsidiary organi zations and it was moved by Mr. Uebster, seconded by Mr. Havey that: '.THEREAS the National Paint, Varnish and Lacquer Association.Inc., is owner of certain shares of stock in the American Tung Oil Corporation, a corporation ereated and existing under the laws of Florida, BE IT RESOLVED that the President of said Association, or in his absence the Vice-President, be and he is hereby appointed the lawful agent and attorney of said Association fully authorized and empowered to vote for and in the name of / the said Association at all meetings and adjournments thereof of the said American Tung Oil Corporation, and with full power to act for ancl-on behalf of the said Association in the transaction of any business which may co * before such meetings, in accordance with the number of votes the said Association would be entitled to cast at any such meeting. Motion carried. Mr. Bennett suggested that a copy of the resolution regarding the stoc^of G-j the American Tung Oil Corporation be referred to the By-laws committee in order *'' X Y1 -5- NCA 0 02726 that such amendments as nay be necessary in the By-Laws can be prepared for presentation to the next annual meeting of the Association. P50PUCT LIABILITY INSURANCE President Trigg stated that during the past few years many claims for bodily in jury, illness or death have been brought against members of the paint industry from causes claimed to have arisen through the use of the products of the industry and advised that a type of insurance has been developed to protect members of the industry against this jazard. He stated that this type of liability insurance is comparatively new in the paint field and that insurance companies have had very little experience in this field so far. President Trigg stated that the insurance can be carried at the present time at the very low rate of two cents per one hundred dollars of sales based on total sales, or approximately `$200.00 per year per million dollars of sales. He'expressed the belief that if a substantial number of members of the Association are interested, a desirable group proposition might be developed through some reliable insurance company, the insurance to be made available only to members of the Association, but involving the Association in no responsibility in the matter. President Trigg read a letter which it is proposed to send to members of the Association regarding product liability insurance and listing a number of cases of action against members of the paint industry (copy attached) and stated that it is hoped this letter will develop whether or not there is sufficient interest among members of the industry to warrant the development of a group plan for this type of insurance. Mr. Pood referred to a study made by the Steering Committee of the Industrial Sales Division of the National Association in connection with the use of "oaution labels", and stated that they had been unable to find an insurance company sufficiently reliable and with sufficient capital to protect the industry's interest in this field; he expressed the belief that the entire indus try should adopt "caution labels." President Trigg stated that Dr. Gardner, through the Scientific Section, had been urging the adoption of caution labels for the past twenty years, but that the Association had received little cooperation from members of the industry in this particular field. Mr. Figgis suggested that information regarding "caution labeling" be added to the letter to be sent to members of the industry regarding product liability insurance. ` President Trigg expressed the belief that no manufacturer in the paint industry can afford to disregard the proposed protection, at its present low expense. He stated that unless a good reliable insurance company can be found to carry this proposed grouw product liability insurance the Association would have no cart in the promotion of the project. President Trigg stated that possibly the National Association'could be helwful to its members through an information service, and he referred to-a type of insurance carried by Devoe & Baynolds which provides for the payment, by the insurance company, of any dealer's account to Devoe & Baynolds if that dealer should have a fire. Mr. Fuller expressed the belief that the Association could render valuable service to its members by acting as a clearing house for insurance information. * NCA 0 02727 Mr. Zinty-stated that the du Pont company carry product liability insurance on some specialties and stated that he would send to President Trigg the name of.the insurance c'omoany carrying this risk. Mr. Bavey suggested that the large baking companies have had considerable ex perience with product liability insurance, and could undoubtedly furnish informa tion regarding some of the companies writing this type of insurance. Mr. Phillips stated that if there were no objections the proposed letter to members of the industry would be revised to include information regarding caution labeling. Mr. Febster suggested that the use of benzol be included in the comments regarding requirements for caution labeling. PAINT INDUSTRY RECOVERY BOARD As a matter of record Mr. Macdonald reported that the Paint Industry Recovery Beard was dissolved in the State of Delaware on December 2Sth, 1335* ' LINSEED OIL PROCESSING TAX Mr. Sulzberger pointed out that the Ferguson Bill, H. R. 10502, providing for a tax on perilla oil also provides a processing tax on linseed oil. President Trigg stated that, unless this committee advises to the contrary, association headquarters will continue to oppose any proposed tax on linseed oil in accordance with past instructions. WISCONSIN STATS PAINT FACTORY President Trigg advised that the State of Wisconsin has established a paint factory as one of the industries in the State Prison at 'Taupum, the University of Wisconsin having suppliei specifications for paint products to be sold to governmental units. President Trigg stated that the subject was being presented merely as a matter of information, and expressed the opinion that there was nothing the Association could do about it at this time. Mr. Griffin reported that the Milwaukee School Board is also manufacturing paint for public school buildings, and stated that the Wisconsin trend seemed to be in that direction. President Trigg reported that the State of New Jersey is making plans to manu facture automobile tag enamel and road marking paint, and that a meeting of the New Jersey paint manufacturers has beos planned in an attempt to head off this activity in the State of New Jersey. In answer to a question by Mr. Figgis, President Trigg stated that State Senator Clee appeared to be the person responsible for the proposed development in New Jersey and Mr. Roh, Ur. Figgis and Mr. Moore expressed the opinion that other interests were undoubtedly back of Mr. Clee and they expressed complete confidence in Senator Clee's integrity and ability. Mr. Sulzberger pointed out that the development of the paint manufacturing busi ness by the State of Wisconsin started as a relief measure, but gave very little employment and suggested this example might be used in opposing the development in New Jersey, -7- N C A 0 02728 Mr. Fuller and Mr. "ennett reported attempts to develop similar projects in California and Utah, the California attempt being a relief measure, PAINTER'S LICS!,TSS BILL President Trigg reported that there has been introduced into the present session of the Kentucky legislature a bill to license master painters; he stated the Association would proceed to oppose the passage of the bill. DEFERRED PAYMENT PLAN' President Trigg reported that as a result of a mandate from the last national convention, arrangements had been made with the National Tomes Finance Corporation making available a deferred payment plan for use by members of the paint industry. President Trigg stated that the entire thought in offering this modern method of merchandising was to sell more paint, and he made it clear that there is no competition between the plan as presented by the National Somes Finance Corpora tion and any other plan being used by members of the paint industry. He stated that the effort of the Association in connection with deferred payment plans would be to promote sales without reference to specific deferred payment plans. President Trigg stated that about twenty-five members of the Association have, indicated their intention of using the National Homes Finance Corporation plan. Mr. Phillips stated that the paint industry over a period of years had been practically conreting with other industries on the basis of painter's credit, a condition which has materially limited the sales of the products of the ind.ustry. He stated that while partial payment plans were just getting started throughout the paint industry, and were therefore playing but a small part in the industry at the oresent time, they would undoubtedly have a definite bearing on the future development of the industry. He stated that in his opinion Title I of the Federal Housing Act, which,unless it is extended, will expire on April 1st,has been df more value to members of the paint industry than any other New Deal activity, and he expressed the belief that members of the industry should do everything possible to bring about the passage of the Duffy Bill,which provides for the extension of Title I, F. H. A. 1936 CONVENTION The Secretary read invitations received from local paint associations in Milwaukee, St. Louis and Toronto and referred to the various communications from Mayors, civic organizations, hotel associations and the like, which accompanied these invitations. Mr. Moore stated that there has been some suggestion that the 193^ convention be held at White Sulphur Springs in Hest Virginia. President Trigg suggested that he believed the convention this year should be held somewhere in the mid-west, and this suggestion met with the approval of other members of the committee. He further suggested that it might be advisable to devote the morning sessions of the convention to business affairs and the afternoon and evening periods to entertainment and the opportunity to get acquainted. Mr. Roh pointed out that in spite of large enrollment at recent conventions very few have attended the business sessions, and he expressed the belief that many members attend the convention principally to renew old ac quaintances and make new acquaintances. Mr. Figgis stated that in his opinion there would be more of a desire to get together in social gatherings in 'Thite Sulphur Springs than in any of the cities in which conventions have recently been hel4` NCA 0 02729 Following#<^one further discussion it was moved by Mr. Moore, seconded by Mr. Havey th#t the 1936 convention of the National Paint, Varnish and Lacouer Associa tion be held at White Sulphur Springs, West Virginia or at such other place as may be decided upon by President Trigg# Chairman of the Executive Committee Phillips and Vice Chairman Sulzberger. Motion carried. SAN FRANCI SCO IN 1958 The Secretary read a communication addressed to President Trigg by Garrett M. Goldberg, Western Zone Vice President, inviting the National Association to hold its annual convention in San Prancisco in 1938 at the time of t?ae World Fair held in celebration of the completion of the San Francisco Oakland Bay Bridge and the Golden Gate Bridge. Mr. Farmer Fuller stated that the manufacturers on the Pacific Coast would appreciate an opportunity to entertain the National Convention in 1938. It was moved by Mr. Trigg and duly seconded that the Committee express its thanks to the industry on the Pacific Coast through Mr. Goldberg for this invitation and advise them that the invitation will be given consideration. Motion carried. MEMBERSHIP The Secretary read a list of resignations pending and it was moved by fir.Trigg, seconded by Mr. Sulzberger that the following resignations be accented: VAnti-rust Paint Company of Louisiana ^dUlvgren Faint Supply Co New Orleans, Louisiana St. Paul,Minn. iX^S1elknap-Moran-Allen Co.,Inc. Brroo oklyn, N.Y. IVtfirard Paint and Varnish Mfg.Co, Phil adelphi a,?a. i^Brooklyn Putty Works,Inc. * Brooklyn,New York i^^E. V. Crandall Oil & Putty Co. ^ ^Brooklyn, N.Y. i^Ellico.tt Paint Co.,Inc. Buffalo,N.Y. ^VTlsley & Held Company New York,N.Y. ^Southern Mineral Products Corp. l^'Piney River, Virginia v^Pdx Manufacturing Company (/^Brooklyn ,New York Motion carried. CLEAN UP AND PAINT UP The Secretary read a communication addressed to President Trigg by Hr. R. W. Emerson to which was attached a resume of clean up and Paint Up activities (copy attached) for consideration by members of the Executive Committee. Mr. Phillips stated that all members of the Committee had received copies of this presentation and he requested each member to read, the communication carefully and to advise Association headquarters of any suggestions which they might wish to submit in connection with clean up and Paint up Activities. At the suggestion of the Chairman the Secretary was directed to express to Dr. Plumb the committee's sympathy for the loss he hats sustained in the recent death of his mother. N C A 0 02730 * NEXT MEETING The Chairman stated that-the next meeting of the Executive Conittee would be held in Washington, D. C. sometime during the month of April, MISCELLANEOUS At the suggestion of President Trigg Mr. Puller commented informally on the serious situation which has developed on the Pacific Coast with regard to marine labor. He commented on the terns of agreement through which the 193*+ marine strike was brought to a conclusion, and stated that while these terns are being lived up to by management they are being disregarded by labor; he stated that there are hundreds of small strikes occurring constantly and that industry on the Coa.st was fearful of another general outbreak. The meeting adjourned at thr AEJCWENMEOT SECRETABY -10- NCA 0 02731