Document zGqe4zvp7aRg1mVXk1we0m7a

EXECUTIVE COMMITTEE MEETING New York, N. Y June 22, 1936. A meeting of the Executive Committee of the Lead Indus tries Association was held on Monday, June 22", 1936, at 12:30 P.M., at the Down Town Association, New York. Present Representing Clinton H. Crane, Chairman F. H. Brownell F. M. Carter I. H. Cornell F. Y. Robertson F. E. Wormser, Secretary. St. Joseph Lead Company American Smelting & Refining Co. National Lead Company St. Joseph Lead Company United States Smelting Refining & Mining Co. Inc. Mr. Clinton H. Crane occupied the chair. The minutes of the previous meeting of April 10, 1936 were approved. RESIGNATION OF DIRECTOR The resignation of Mr. W. Y. C. Hunt, Vice President of the Reynolds Metals Company, who, because he .had severed his busi ness connection with the Reynolds Metals Company, tendered his resignation as a Director of the Lead Industries Association, was accepted with regret. Mr. R. G. McKay, Vice President of the Rey nolds Metals Company was nominated to suceed Mr. Hunt, and was unanimously elected. APPLICATION FOR MEMBERSHIP The application for membership of the General Lead Manu facturing Company, Denver, was presented and approved, and the Secretary was directed to notify the applicant of his election to membership. MEDICAL RESEARCH - HARVARD MEDICAL SCHOOL The Chairman explained that the Harvard Medical School needed an additional appropriation in the sum of $2,000 to carry on its program on lead poisoning for the full college year, and that owing to misundprstending of Dr. Aub's requirements, an earlier appropriation of $4,000 was insufficient to complete the program of the School . Zt was thereupon moved, seconded and carried that the Lead Industries Association appropriate an additional $2,000 for the use of Harvard Medical 8chool in its lead poisoning research, making a total appropriation of $6,000 for the year July 1, 1936 to July 1,1$S7 / l~IA02(,C3 N 4125 Executive Committee Meeting June 22, 1926 RESOLUTIONt ON THE NORMAL STOCK METHOD OF CALCULATION OF PROFITS AND INVENTORY VALUA TION FOR CORPORATE AND TAX PURPOSES. Mr. Brownell presented a resolution, as follows, on the normal stock method of calculation of profits and inven tory valuation for corporate and tax purposes, which the Com mittee adopted and instructed the Secretary to forward to the members of the Association for approval: WHEREAS, in certain industries, among others, the re fining and fabrication of non-ferrous metals, the use of a basic normal minimum stock carried at fixed prices is a well-recognized, accepted accounting prac tice which, in the opinion of executives and account ants connected with those industries, most clearly re flects income. NOW, THEREFORE, BE IT RESOLVED, that the Lead Indus tries Association approves the use of a basic normal minimum stock carried at fixed prices as clearly re flecting the income of smelters, refiners, processors and fabricators of lead and similar metals and res pectfully requests and urges the United States Bureau of Internal Revenue to permit under regulations issued by it the use of this or.similar method of valuing inventoiy and costing sales in the computation of taxable income for purposes of United States Federal Income Tax, as an optional alternative to the method previously used. BE IT FURTHER RESOLVED that the officers of this Associa tion be, and they are, hereby authorized to submit copies of this resolution to such public and private bodies and agencies as any member of this Association may request. WHEELER ANTI-BASING POINT BRIEF The Chairman stated that with reference to the Wheeler Anti-Basing Point Bill, S.4055, the brief dated April 22, 1936, and attached as Exhibit "A*, had not been formally presented to Congress but was ready to be used at the discretion of the Execu tive Committee of the Board of Directors#* STANDARDS FOR LEAD PIPE TRAPS AND BENDS The Chairman requested the Secretary to explain the ac tion which the lead pipe, lead trap and bend manufacturers in .the Lead Industries Association had taken with respect to the estab lishment of a standard for their product. .LIOt oU^ The Secretary explained that owing to the large amount of inferior lead plumbing goods on the market, fabricators had found it necessary, for their own protection, to devise an ade quate standard for lead pipe, lead traps and bends, and to provide Executive Committee Meeting Page 3 June 2, 1936. for the c eation of some Association insignia which could be used on all merchandise meeting the Association Standard wherever manu facturers desire to procure licenses for that purpose. The Stan dard had been approved, without objection, by the members at in terest and was now ready to be acted upon by the Executive Com mittee, or Board of Directors. It was regularly moved, seconded and carried that the Lead Pipe and Lead Trap and Bend Standards, as established and approved by the Metallic Lead Products Division of the Lead In dustries Association, and attached as Exhibit "B", be approved and the Secretary be authorized to give the Standard widespread publicity and to proceed with the drafting of suitable licensing arrangements for the use of the Association insignia. The meeting adjourned at 2:30 P.M. Secretary. LIAO? 605 P Meeting yoT m rmizam. EXHI3IT sostidestial April 22, 1936 Eie Lead Industries Association represents the entire lead indus try from mine to finished product, that is, about 90 per cent of the lead miaB production in the United States, 100 per cent of the primary smelting and refin ing, plus a large portion of the secondary refining, plus 100 per cent of the lead pigments Industry, and perhaps 90 to 95 por cent of the metallic lead pro ducts, and 95 per cent of the metallic foil products industry. The Lead Indus tries Association believes that S.4055, The Anti-Basing Point Bill, would cause great confusion in the determination of the domestic pig lead price and in the buying and selling of lead ores and concentrates, pig lead, scrap lead, and in determining the prices of various manufactured lead products which are all based upon the price of pig lead. The present marketing method has gradually developed over the last 100 years, and price differentials between various consuming cen ters are still changing from time to time due to competitive conditions. A sudden change in the fundamental basis of quotations, however, would have re percussions in many directions, not the least of which Is that it would, as stated above, seriously disturb the present method of pricing lead ores and concentrates. To illustrate, a substantial volume of lead in ores and con centrates produced from innumerable nail operations in the Vest is sold to custom smelters, who pay cash to the miners for their product. Settlement for these purchases is made on quotations established by msnerous trade papers and published quotations covering the two important lead markets - Sew fork and Si. Louis. Vs believe that the passage of the Vheeler Anti-Basing Point Bill will makB it difficult to appraise the market price of lead at a point suitable for ore settlement contract purposes, because the trade papers will have difficulty In reducing the sales information they receive, and upon Aich they base their appraisal, to the Sew Tork or t, Louis market points. LIA 0?606 Pae 2 April 22, 1936, Zf it is the purpose of the 'Bill to do away with these two market points long used in the lead trade, then the miner will probably hare accept a provisional settlement 'for his lead from a smelter, constituting 'f-- only a fraction of the estimated value. The final settlement of tte lead would be delayed 60 to 90 days, or longer if the market were unable to absorb current production,which would be based by the smelter on the actual price re ceived for the lead. Small mines and operators on narrow margins of profits with insufficient surplus will be seriously injured and in cases where unable to borrow for payroll purposes, it may be necessary for them to close down. Further, the ultimate result of this would be the establish&ent of different prices of lead paid to shippers on shipments received at the reduction plants on the same day. *e consider New fork and St. Louis to be market centers similar to those established for other world commodities such as cotton, wheat and coffee. They are not basing points in our estimation. Moreover, it is to the advantage of the entire lead industry, from mine to finished product, to have a free and open market in pig lead which miners, fabricators and consumers can use. This is furnished by the New fork market which reflects not only in ternal business but also European competition, as expressed through the impor tant London quotation. Furthermore, New fork, over a period of years, is the principal port of sntry for importations of lead into the United States, that is, whenever importations may be profitably made into the United States from urope, a situation ^aich has occurred in the past and will, no doubt recur in the future. LIA0?6C7 Such being the case, we are convinced that, should this Bill be enacted into law, the New Tork price of lead would fluctuate quite radically as compared with prices In other sections of the country, dependent upon whether a prioe differential existed between the domestic and foreign markets which would allow the Importation of foreign lead. This would work an undue hardship on Page 3 April 22, 1936. the principal lead producing districts of the lest, whose freight rates on lead to Hew fork (which is the huh of the lead fabricating last) range from $12.50 to $13.50 per ton as compared with no freight at all to Hew fork, on which several important foreign producers would figure. In explanation of this last statement, these foreign producers must pay their freights from say Spain, Tampico, Vancouver or Australia to London, in order to sell their lead in their normal markets, and their frei^it rate to Hew fork would be no higher than to London. Therefore, the duty which has been responsible for keeping many of our domestic lead mines alive In recent years would be corres pondingly reduced in its effectiveness, particularly for those far-western mine8, a large part of whose product must be marketed on the Atlantic seaboard. The St. Louis market has grown by virtue of the fact that St. Louis District is a point of origin for the most important lead production in the United States, namely that from the State of Missouri. It is, therefore, a natural market point. Between Hew fork and St. Louis, the producer and con sumer has a close gage of the lead market. Chicago is another originating point for pig lead end has its own market, generally slightly higher than the St. Louis price, but not the St. Louis prioe plus freight* In the last analysis, the price of pig lead at any point is determined by competition, and this rule applies whether or not the point is an originating or consuming point, or both. a multitude of market points for pig lead, each represented by the locality of a refinery, would cause an extraordinary amount of confusion in LIA 02 608 the trade. Ve do not see how the lead miner, or fabricator, interested In the day-to-day price of lead could intelligently keep abreast of the lead situation if our present market points were outlawed, or their usefulness impaired. Incidentally, it is worth noting that Canadian, Mexican, Spanish German, Australian, and other world lead production to baaed almost wholly upon Page 4 April 22, 1936 the London metal market, which la a market place for the entire world. Prices in Belgium, Holland, Prance, and other Suropean countries are not the London price plus freight. Under the provision of the Bill, we believe competition for pig lead sales would be restricted to the lead refineries nearest to, or most easily serving the major lead consuming districts. Ibis would deprive some consumers of achoice in the eelection of their lead supplies, an important consideration when certain brands or grades of lead are required by customers as they now are. Suaeroua manufactured lead products are generally sold on a uniform delivered price basis so that the users of these products will all be placed on an equal competitive basis in the purchase of these raw materials. If this system is changed, there will be a relocation of numerous lead con suming plants to more advantageous places of manufacture, with results that, may be unfortunate both for labor and the cities in which these plants are now located. Some of the larger fabricators, with plants scattered over the United States, may be able to adjust themselves satisfactorily to this situ ation, but the smaller producer will likely be injured. Then again, there are numerous manufactured lead products, the sale of which is governed by the market flotations for pig lead in Sew fork or St. Louie. Tor example, the price of some lead oovered cable, lead oxides, storage batteries, and other load products qgjy frequently be based upon Sew Tork quotations. She entire rod extremely important scrap lead market re- ouires a Sew fork or St. Lottie market quotation for a settlement purpose. It is difficult to see how lead scrap could be bought and sold under the con ditions outlined by the Bill, originating as the scrap does in hundreds of cities rod localities. U1A02bcq Page 5 April 22, 1936 It is our opinion that the operation of the Anti-Basing Point 3111 will result in store erratic and generally disturbing pig lead prices than would otherwise prevail, which probably means lower average prices to the lead mining industry, and may consequently cause some lead producing properties to become unproductive with attendant unemployment and loss of tax revenue to the WeBt. Shis result is not pleasant to contemplate for an industry which has suffered severely during the past five years with record breaking low prices for its output and which we estimate is now operating at less than 60 per cent of normal. In the long run, the passage of this Bill might very well result in certain consumers of lead, or lead products, securing a lower price than they would receive under the present marketing system, but it would also result in certain other consumers paying a higher price. We can not tell which interests would be helped and idiich would be hurt, but we are certain that the confusion which would be c&UBed the entire Industry would be harmful to all members of the industry, producers and consumers alike. It is noteworthy that no one In the Association, composed as it is of both producers and consumers of lead ores and concentrates and pig lead, has complained about existing merchandising methods, fvsry one in the industry^ with whom the Bill ham been discussed^ le definitely opposed to lt^ Ve feel that however Idealistic the Vbeeler Anti-Basing Point Bill may iqppear, as attempt to change present selling methods would cause serious confusion in our Industry, and would accomplish nothing constructive either for the public using our products or the industries supplying them. Therefore, me respectfully request that tbs Bill exempt the lead industry from its provisions. LI 02 blO EXHIBIT *B" Lead Trap and Baad Meeting April 29, 1936. All lead fittings 'bearing the Lead Industries Association insignia shall he made in accordance with the Lead Industries Association Standard and any manufacturer shall forfeit his right to the use of the insignia of the Lead Industries Association on his fittings at such time as numerous complaints and evidence would tend to show carelessness or disregard of reasonable precautions or violations of the Lead Industries Association Standard* LEAD IKDUSTBIES ASSOCIATION STAHDAHP TOR LEAD TITTIKBS 1* Analysis: The lead used shall analyse at least 99.7 per cent pure. Maximum sine content shall be 0*008 per cent* 2. Accuracy; The wall thickness of lead traps and bends shall vary not more than 5 per cent above or below the specified wall thickness taken at any point on the circumference of the trap or bend. 3. Defects: Reasonable diligence shall be used in manufacturing operations to eliminate all defects in lead traps and bends* such as lamina-' tions, cold joints, pits, obstructions and inclusions. 4. Markings: The markings on lead traps and bends shall consist of the inside diameter of the fitting, weight per running foot, and manufac turer's identification mark at the end of the fitting. The manufacturer's identification mark shall be registered with the Lead Industries Association. 5. Weight: Lead fittings shall not be lighter than the following weights: Inside Diameter Weight per Running Toot 1-1/4" 1-1/2* 2* 3 4 4-1/2* 2 lb. 3 lb. 4 lb. 6 lb. 6 lb. 10 lb. 6* Tolerance in Weight: The total weight of each lead fittli^ shall not vary more than 5 per cent above or below the actual weights required by the Lead Industries Association Standard list, which is as follows: LIA0?fell N 4125.02  April 29, 1936 Exhibit *B" Pag 2 LEAP INDUSTRIES ASSOCIATION STaHDAg) LIST weksts o> tarn traps and bends Xad Trap and Bend Uaetlng REPOLAR (Special Medium Weight) Weight of lead per running foot Pull S 3/4 S 1/2 S or P Running Running T Bag Long Bend Short Bend 2 lb. 1-1/4 in. Lbf_t fllS-t. 33 2 13 2 12 25 2 11 3 13 21 19 3 lb. 1-1/2 in. Lbs. Oss. 4 14 46 4 3 13 43 6 37 2 10 4 lb. 2 in. I&b. test 8 75 6 12 5 15 69 9 15 .5 3 10 REGULAR (Extra Heavy Wi^h1;) Weight of 2-1/2 lb. 3-1/2 lb. 4-1/2 lb. lead per 1-1/4 in. 1-1/2 in. 2 in. running ft. Lbs. Ozs. Lbsa 0z8a 1*1)8 a OZS, Pull S 3/4 S 4 3 10 62 59 94 89 1/2 S or P Running 37 2 15 54 4 11 7 10 6 12 Running Y 32 5 7 8 Bag 4 12 76 11 6 Long Bend 28 42 59 Short Bend 1 11 34 43 EXTRA. LONG (Special (iledium) Weight) Weight of 2 lb. 3 lb. 4 lb. lead per 1-1/4 in. 1-1/2 in. 2 in. running ft. Lbs. Ozs. Lbs. Ozs. Lbs. Ozs. Pull S 57 8 11 13 3/4 S 4 10 6 13 10 1/2 S or p 4 2 5 12 8 12 Running Running T 45 48 67 6 10 91 94 Bag 5 14 8 12 12 15 6 lb. 3 in. 8 lb. 4 in. 10 lb. 4-1/2 in. Lb!*. Ozs. Lbs. Ozs. Lbs. Ozs. 14 12 14 2 12 22 8 20 9 17 2 31 29 12 24 10 14 13 10 19 6 16 2 20 5 31 7 23 12 29 12 43 84 12 14 18 8 64 9 13 14 4 EXTRA. LONG ( Extra Heavr--leiglit) 2-1/2 lb. 3-1/2 lb. 4-1/Ji lb. 1-1/4 in. 1-1/2 in. 2 in. Lbs. Ozs Lbs, Sau Lbg.t. Q.Z?t. 6 13 9 12 13 7 5 15 87 11 7 53 75 9 13 57 7 12 10 3 57 7 14 10 7 76 10 9 14 11 EXTENSION 3ENDS (Special (Medium) Weight) Weight of lead 2 lb per running ft. 1-1/4 In.1 Lbs. Ozs. Short Inlet 12" 29 Short Inlet 15" 31 ghort Inlet 18" 39 Short Inlet 20* 3 14 Long Inlet 12" 31 Long Inlet 15" 39 Long Inlet 18" 41 Long Inlet 20" 46 t 5 lb. 1-1/2 in. Lbs. Ozs. 3 14 4 10 56 5 14 4 11 57 63 6 11 4 lb. 2 in. Lbs. Ozs. 51 61 71 7 11 67 77 87 91 L I* CZ6 EXTENSION BENDS (Extra Heavy Weight) Weight of lead 8-1/2 lb. 3-1/2 lb. per running ft. 1-1/4 in. 1-1/2 in. Lbs. Oss. Lbs. Oss. Short Inlet 12" 2 15 4 11 Short Inlet 15" Short Inlet 18" Short Inlet 20" Long Inlet 12" Long Inlet 16* Long Inlet & Inn* Inlet 80* 39 43 4 10 3 12 46 5 6J 59 67 71 59 67 75 7 15 4-1/2 lb. 2 in. Lbs. Ozs. 5 11 6 13 7 15 8 11 73 85 97 10 3 6 lb. 3 in. X&la 82 9 10 11 2 12 2 10 2 11 10 13 2 14 2 8 lb. 4 in. Lbs. Ozs. 11 2 13 2 15 2 16 8 14 3 16 3 18 3 19 9 SZXXV8X0I8 Of LSAD TRAPS AID BSXD6 (Dimension* Taken as Shoim by Arrows) 1^* M\ FULLS. */4 S. t 'ASorP. RUNNING. REGULAR TRAPS IJi-in 2 3 4 4X Inlet Outlet 4X 4X 4h 4 SX SX inc"""hesIO*67 XH "" liH 12H Inlet Outlet 4* 4X in< be. 6SH 4X 7X k 10 11 13X Inlet Outlet | Inlet Outlet iB*:hes 6 7 V* 8 9X IS 10 tox SS74XXXXinche"""s SX 6X 7X 7X 8 "8 9X " 9X EXTRA LONG TRAPS 'til ........................................................... V* . .. FullS Length Over All 24 inches 24 " 24 " xs Inlet Outlet 4X inches 16X 4X " iSX 4X " 1SH X Sor P Inlet Outlet 4X inches 14X 4X " 14 *X " 14 Running Inlet Outlet 4X inches 17$$ 5$* ** 16)2 SX " 16 REGULAR TRAPS RUNNING V. <k SHORT BEND. LONG BENO. Inlet Outlet lK~inch......................................................... 1U * .................................................. 2 " .................................................. 3 " .................................................. 4 ".................. 4X " .................................................. 4X inches SX sx " SX " 7H 7Jj " 10 8 " 11 9X " ISX Length Over All I1H inches 13 IS 18$$ " 22X " 23X ** Center to Ends 6 7 inches " 43$$ IX " sx *X 10 ** 4X sx 11 ** sx Center to Ends 6 indies 1 7X " SX 10 It EXTRA LONG TRAPS Running Y Inlet Outlet j I " ................................. ...................... 1 * ..................... 4H inches 16U sx " isg SX " ISX Bag Length Over All 24 inches 24 ** 24 ** LIA02613 Tbe minimal goal for lead traps shall be 8" measured from the orown weir to the dip. *v exhibit *8" Lead Pip# Meeting April 29, 1936 All lead pipe bearing the Lead Industrie* Association insignia shall be made In accordance with the Lead Industries Association Stan dard and any manufacturer shall forfeit his right to the use of the in signia of the Lead Industries Association on his pipe at such time as numerous complaints and evidence would tend to show carelessness or disregard of reasonable precautions or violations of the Lead Indus tries Association Standard. T.EAD T1TOUSTRI.3S ASSOCI^TOH BTU-WnAlffl TOR LEAD PIPE 1* Analysis: The lead used shall analyse at least 99.7 per cent pure. Maximum sine content shall be 0.002 per cent. 2. Accuracy: The wall thickness of lead pipe shall vary not more th*n 0.008 in. under or 0.012 in. over the specified wall thickness taken at any point on the circumference of the pipe. The following is the Lead Industries Association Standard List of Lead Pipe Sises and Weights: T.EAS PIPE sizes LEAD INDUSTRIES ASSOCIATION. STAHDAHD Si 26 Inside Diameter 3/8" 1/2" 5/8" 3/4" _______ Classification_______ Outside Diameter East .West .... Inches D XL CL BU As AA xs AAA. xxs .549 .577 .631 .725 811 .688 D XL CL Bu As AA xs AAA xxs D XL CL BM As AA XS AAA xxs .666 .712 .756 .798 .676 1.012 803 .881 .853 1.019 1.082 1.137 D XL CL Bu A8 AA XS AAA xxs 940 1.006 1.068 1.156 1.212 1.336 _______ WeiAtJer Boot Pounds 1 1 2 2 1 1 1 2 3 1 1 2 2 3 3 1 1 2 3 3 4 Ounces 10 12 8 8 12 4 8 LIt0?6 8 8 8 4 12 4 8 12 Exhibit "3" * Pa<e 2 Lead Industries Association Standard Per Lead Pipe Lead Pipe Meeting April 29, 1936. Sise Inside Diameter 1" 1-1/4" 1-1/2" 1-3/4" 2" 2-1/2" 3" 41* 5" 6" _________ Classification________ East West D C 2 A AA AAA D C B A AA AAA D C B A AA AAA D C B A AA AAA D C B A AA AAA XL L U 8 XS XXS XL L M S XS XXS XL L M -S XS XXS XL L M S XS XXS XL L M S XS XXS Outside Diameter Inches 1.232 1.264 1.356 1*426 1.492 1.596 1.486 1.528 1.592 1.670 1.765 1.889 1.776 1.830 1.882 1.984 2.076 . 2.272 2.024 2.086 2,146 2.193 2.404 2.624 2.284 2.354 2.410 2.503 2.751 3.006 2.75 3.00 3.25 3.50 4.25 4.50 5.25 5.50 6.25 6.50 Weight Per Toot Pounds Ounces 2 28 34 4 4 12 6 28 3 3 12 4 12 6 7 12 38 44 5 6 .8 811 4 4 5 6 6 12 10 8 14 12 4 12 6 7 8 12 13 12 19 8 5 10 10 6 12 8 7 14 16 \ 6 9 14 20 4 11 13 24 2 LIA02615 i -<fTN Ixhlbit "B" Page 3 Lead Industries Association Standard for Lead Pipe Lead Pipe Meeting April 29, 1936. 3. Defecte; Reasonable diligence shall be used in manufacturing operations to eliminate all defects in lead pipe, such as laminations, cold joints, pits, pressure joints, obstructions and in clusions. 4. Markings: All lead pipe shall be stooped with the manufacturer's iden tification mark at least every 12 in. along the pipe, and the symbol for sail thickness and the inside diameter shall be stamped at least once on each coll of lead pipe. Manufac turer's identification marks shall be registered sith the Lead Industries Association. /\ Ll^02616 >