Document zobmzrL72znDe8dxXOwO4Kwd3

iNWRJjMjJ-U9JHi<gWipWWIil|pili^WpMWP>.. IPII. 11. I.BJWI ISRSWBSPIIKPi VMpnti LIA15716 * ! ) ? i -- ------------------ Jtamrtca by - i NR. P. R. jxmanr President, Rational tine Company, lac. and President, American Zinc Institute, Inc. Pent1 amen: Welcome to the k5th Annual Nesting of the American Zinc Institute. Va art la Joint session with tin lead Znduatrlaa Aaaoclatloo this morning. With tha help of our distinguished speakers, wa ahall addrass ourselves to issues of more general concern. i Va ahall hear of problems, and of thine* that wait to ho Acne; wo face thea with confidence. Bualness Is hatter, and perhaps business for the raw aaterlals industries, to which ve belong, looks batter. Basle materials hare been tha stepchild of the business cycle for sane tins -- perbape we come to an evening-up of tha averages. But, chiefly, I think, there la confidence in our Industry becsuise tbs assurance is gaining ground that we are learning to aaster our own fate and future. And If ve are learning that, then largely due to the work for which wa hare have net; our c cusson undertaking to increase our usefulness, to develop our Markets, and to reassert, In so doing, our purpose and our responsibility as an Industry. i : Those who have watched our Industrlea at work In our Associations and Re search Program, must have taken new assurance that ve are on the right way. Ve have caught tight of new fields and markets, we know much better now what tools we need and hew to use them, we can Improve the tool* we have; ve all know that we are going to go ahead. Success in our market work as an Industry In our country, as an Industry with our neighbors to the north and south, as an Industry with many Tree World countries, cannot fail but abed some light on other industry problems. A year ago Nr. Vulllequer, then President of the Lead Industries Associa tion, told us that our Industries in the free World had done poorly in the balancing of production to consumption, and that the remedy in hit opinion was quick disposal of the excess stocks and, thereafter, production In line with demand. The soundness of the prescription la clear again today: even with good eonsvnptloa, ve gain little when the balance stay* overloaded on the production side. -i The year past saw the entry of a new factor on the scene: agencies of the U.8. government made public a designation of very large tonnages of lead and tine la the 0.8. Strategic Stockpile as 'surplus* and announced an Intention of eeUwg Con gress for legislation to dispose of thea. U. 8. Industry Is taking their stand la this matter through the American Hlnlng Congress; therefore, I shall limit myself to saying that the original announcement* from Washington were profoundly disturbing to Industry la many countries and that subsequent releases have fallan short of being reassuring. Otherwise the year brought some Improvement* In the statistical position, perhaps largely of a clrcMStantlal nature. We may not yet be able to point to a (Presented at the Joint Session of the American Zinc Institute and Lead Industries Association, Chicago, Illinois, April 30, 1963) i.j.awe'W-;mi.101 unen.imiu > j.iimyi!B)yj;^yiweBesjm>ew^(imffs^pp 3563 iiiapiifHHnpKm LI A15717 rnypi^y8^pwwmmimwmmw*mim>iwem^**mm*aimmr*imws*s**w*^* iiHMii iiiii i'i h suisi i. *. jgrip-------------------------------------- - a - - . *r lasting accomplishment, but on* can bop* w* art beginning to l**n> th* steps that will tak* us aloof tb* rlfht way. Statistically, th* mark of th* year ni th* large world-vids reduction la lead took*. 2a sine, Tree World producer itocki of refined natal (which do not In clude itoehe held by producer* la th* 0.8., aad possibly other eouatrl**, out*Id* of their tvn plant*) ro* by $0,000 short too*. This 1* not a serious lacr*a*, especially *lnc* stocks la th* haad* of coosvner* la Important eouatrl** fell durlaf the year, but statistically at l*ast, th*r* va* no profress. V* must adalt to other slfas of label anc*. It do** appear abnormal, whsn line or* supply 1* drawn down till It hurts while at th* saa* tiae stocks of unsold aetal are buildInf up. The effect la that the price rsmaln* wider pressure even when business laproves; and the aloes, tbs aoure* of all our ac tivity, do not obtain that return which is necessary to replenish or* reserve* -- or, the return to the aloes has to he furnished In a way which disrupts ths tens* of trade, and the econoales of the Industry. Building of new -- capacity, aany of us think, has contributed to such Imbalances. Bevertheless, even with the large number of producers which v* now have in tine, one can perhaps feel the spread of a conviction that production la with deaand Is the best way, and that It 1# la fact, a feasible way for Indus try to taka. The idea of puahlng production Irrespective of surrounding clrcuastanc** asy have run Its course. Such thinking, and the theory of the nechanIsa of fre* trade, night fit a world In which producers and constaers vers free agents, de pendent on nobody but theaselves, end responsible only to their pocketboeks. Of course, there it no such world. W* are, each of us, functioning as neaber* of political bodies which pursue their social alas and responsibilities with all the resources of their society. In less developed countries, nines will be kept fron shutting devn, and new Industries will he attracted and sheltered. In other places, communities that have gram up In the atmosphere of a mining or sneltlng economy will not be turned back to the prairie. They will, at ths least, be given protection to allot a phase-out over a period of tine that la socially and politi cally bearable. These natters to ny nlnd have nothing to do with government Interference In Industry or market*. They are Inescapable facta of social and Industrial organ! cation which on* Ignore* only to ones own, and to the Industry's detriment. Also, we have grasped, 2 think, that In our tins th* fate of an Industry is ruled by Its competitive usefulness In th* market place. Bow ve treat and win markets, hot useful we make ourselves to the advanced and well supplied economies of our day, that will determine our future nor* than anything ala* v* do. Th* tins Is past when our responsibility ended with what we do on th* production end. It Is In our markets that v* shall ultimately he Judged, and It seems that our natlooal and regional markets are on th* way to becoming one market. ever multiplying pressure of competitive materials and technique* is seeing to that, In one country after another. The force of that competition In shaping our markets Is mors Signi ficant, I submit, than cur differences In pries levsl of which so much Is mad*. Thus, as our market Is becoming one, our responsibility as producers is becoming a Joint on* also. wniPPRmifpnai W'lWPjWHIl IBP V LIA15716 3 ----------------------------------t.d.jbtot Z think v* nr* recognising th** facts and trend*, and ere make our decittool In their light. to In I*truing etch other* fact* of life, the International Study Group bM been a useful netting place. But when ooe coneldere the proceeding* of the Group, and the etatenente of theory and high principle with which gorerateeta are trying to defend what they conceive to be the need* of their induatrlea, X an foread to the conclutioo that for aone tine to cone there i* not going to be a useful under* tending between government* -- not for our Industrie* that are eo widely dletrlbuted in their source* and in their narketa and that are to Intlaately woven Into the economic life of ao nany different countries. To those her* or ehroad who look for government decision*, one other re minder nay be permitted. Obviously, the 0.0. government would have to be a major partner in any international treaty on lead and tine. One wonders bow it would be arrived at. Ve are experiencing in this country a shift of activity and power to th* Presidential office. Matters that once might have been considered and developed in the careful and deliberate Comlttee* of Congress or in the specialised depart i ments of the government which have a long familiarity with administrative aid eco nomic problems, are being draws into the overworked hand* of a chief executive and his immediate surrounding*, where they becae pawns in the awful game of ultimata responsibility, rather than being decided for their intrinsic to the af fected cltlxens. Under such conditions the outccme of government intervention In the basic structure of on industry turns into a gamble that, I believe, few of us would willingly promote. What would be helpful to us in the U.8. if we are to play our part In n . self-disciplined and responsible international industry, would be to have seme way of approaching the problems of balanced production in concert within the Industry. 1 If that remains forbidden, ve may Just possibly wake up one morning and find th* smaller enterprises in the industry gone down the drain and only those who control s large network of resources surviving. That would be a high price to pay for the satisfaction of having enforced the anti-trust idea to the last. After these remarks an our responsibilities as producers, X would say a word of the special role which our Trade Associations, particularly our American Associations, and the International Research Program, have to play. The American Zinc Institute has evolved from an association of old time producers into an organi sation specifically dedicated to the development of the American market for sine. Ve gave formal expression to that last year hy opening active membership to those engaged in production of sine outside of the U.S. who maintain a regular market her* and contribute on an equal basis to th* support of the Institute. Tou, the membership, will have the opportunity this afternoon to sanction these changes: we have already elected one foreiga member to our Board of Director*. Concurrently, v* hsve provided for our Board to include two representatives of nonU-S. supporters of th* International Lead, Zinc R*search Program. Oir* is, of course, not th* only Important market for non-ferrous metals, and significant new developments do by no mesas always originate here, but th* American market 1* the world's largest for industrial materials. It is a market of tremendous vitality and versatility where the battle between materials and applica tions, as veil as between producer*, alvsy* seems to be *t its hottest, never ceas ing to break out in new spot*. And thus th* future of a metal, or mterlal -- the f?, ljbsju. i in in lunium-. n 9m mmmmmmmiMii . ||.iuiiw,iwwwiiipwjBpiBp LIA15719 ; -- f. t. jvim ---- *k ipqpww-- kind of acceptance It Is going to have la world technology -- nay wall bo decldmd by It* performance la tbs American market. It la thus appropriate that foreign producers of laad and tlac partleipate with ua la the development of thle aarket and we velcane thea la that work. To develop the full potential of our aaurket v* need, and want, sane of their suppllea of ore and aetal, their Idea*, their know-how and resourcefulness. Za getting to knot the American Market, va think other produeera will caae to better understand our particular problem*, the probleaa of the 0.8. producers. They May cose to aee to what extent their Interest la the Aaerlcaa Market la tied op with our success In Maintaining a Bound domestic base of production, without which, we firmly believe, the full development of the American setrket would be In Jeopardy. In that connection, we are conscious of the trust which produeera 1m other countries hare bestowed upon us by keeping the administration of the Inter national Lead Zinc Be search Program associated with our Industries. That arrange* meat was a natural departure, since the Program took shape in Borth America, but I think It has turned cut quite an Ingenious arrangement In lte own right, at least for the time being. By having to live close with the realities of the Aaerlcaa aarfcet, the fcsearch Program Is gaining maturity and perspective. The representatives from other countries vho convene to run the Program at the seat of our Trade Institute*, learn about our whole range of activities, where they nay find many Interests la ccimson. But the most laardlate benefit of the Intimate association, I am sure, has been to our asm work here. Ve shall from tlas to time alter the administration of Industry research or redefine asalgnaenta between trade association and research work, as circumstances or experience any recamend. Whatever such organisational changes, they will leave with us the Impact that was created by the estahllat--nt In our nidst of research activity and resesirch thinking, that spoke with the au thority of an industry wide unuertaklng, research that was not primarily beholden to the producer's point of view hut that met out to orient these time-honored metals to the needs of today's and tomorrow's Market. As you look through the working papers of our organisation and attend their Ccomlttees, you find evidence of a new relationship with the consuming In dustries, a relationship where the endeavor of the fabricating Industries towards better and more competitive products Meets with our efforts to develop the full potential of our Metals through their products. To bring this shout, and ve are only at a beginning, required a new orientation, and "outside* point of view, notwithstanding the experience aectasulaied in the companies who hava been leaders In the Marketing and product field. The Research Program Is our newest tool. As we renew or reform our In stitutions, we shall strive for greeter efficiency and economy of means, as a natter of course, but when we examine our purpose and policy, Z think we shall concise that what ve need Is not to draw back any part of our Market development work under tbs closer Influence of the production process but rather that wa need to give Mre In fluence to the Independent, the scientific, narket-orlented point of view, if ve are to keep pace with our mrketa and our competitors sad If vs are to get the best return for our aaney. How much money vs want to spend at a given time and how we organise ourselves for the purpose. Is another question -- but not one Uat 1 would put aimed of our objectives. ..... n mgorTwrm essamwaa n Dimiwii HtkM HlM ltt wmm - ..-^-u-- ...... --- --............................... ........... . .. ,,.------------ ....^ ^ .^ .u .- .,,.,,. itin rn ~ LIA157 20 n^faiiri&WMiifa-m ' yin-^,i,.* ~^i -------- -5 - F. i. jxrmx finally, 2 believe ve Bust continue to do a major part of our aarkat development, including research, aa aa industry, through industry vids orgaalsatlon. There remains ample room for ths Individual producers; tha companies hsve an important field in taking on new ideas that cos* out of research, and giving thea tha industrial and product development they require to became practical aalas items. Kit in the vhols field of promotion, market service, Bales engineering and research we must have a strong industry effort and industry organisation -- more so than other raw material industries which are differently constituted. X think we are all agreed that we want strong trade association actlvlty; the vigor and success of the British Lead A line Development Association, of the Lead Industries Association and the Dine Institute, to name only those we are most familiar with, certainly apeak for theaselves. Ae to our work here in sine, you will listen with particular interest, 2 am sure, to the reports on ths Institute and Z.R.P. activities this afternoon and tomorrow morning, which will tell you haw the Institute is making Itself a market service center not only tor Industries that use sine, but also more and snrs for those that use articles made of, or protected by, sine. In this work, there will be new opportistltles, mew demands from our customers, for technical and scientific contributions from research. We already have on the record, of course, examples of that. The combina tion of trade association effort with industry research capability has broadened and hastened our being accepted by important consumer industries as partners in their own product development. 8uch approach holds great promise but it does for aa industry arsenal that includes research as well as our traditional weapons. For that purpose ths industry can call on ths integrity, the resourceful ness and the enthusiasm of the staffs of the associations, and of ths Research Organisation. Tour recognition Is due them for the results achieved. At the close of ay term of office, 2 wish to especially thank tha staff of ths American Line Institute and of the K.R.P. and their beads, Jack XljAerley and Schradm tedthe, for their cooperation during our two years of close association. # ## I u A mm mm