Library Collections: Document: Full Text

March 24, 1943
Mr. O. A. Friedman
2102 West Pierce Street Milwaukee, Wisconsin

My dear Mr. Friedman:

I am enclosing herewith a report on the Convention of the National Association of Waste Material Dealers held in Chicago March 16 and 17 and desire to personally thank you for your courtesy in making it possible for me to attend this convention.

I trust that the attached report will be of some value to our Industries throughout the country, particularly those that are dealing in salvage in fairly large quantities.

Yours very truly, (SIGNED)
P. J. Trevethan Supervisor

The National Association of Waste Material Dealers annual convention at Chicago, March 16 and 17 this week broke all records for attendance. Though I do not know exactly the number at the banquet, it was probably around 600. Every session was heavily attended, and the program was arranged with the intention of providing every division of the waste trades with a vital speaker on war problems, including several from the War Production Board, the Office of Price Administration, and the War Manpower Commission.

David Feinburg of Medford, Massachusetts, was re-elected president. All the divisional meetings were attended by dealers and consumers from all parts of the United States.

Paul J. White of the Great Eastern Packing and Paperstock Corporation, New York, was re-elected President of the Waste Paper Institute for the ensuing year. J. V. Spachner, vice-president of the Container Corporation, discussed prospects of waste paper and paper board in various sections of the country. He anticipates consistent heavy demand for waste paper throughout the balance of the year. He also predicts that the raw material situation in the South particularly with reference to pulpwood is serious for the kraft liner industry of that area.

Janes T. Flannery, chief of OPA's Waste Paper and Rag Unit in the Paper and Paper Products Division, declared that the industry has supported OPA regulations well and that there have been only minor violations of the schedule. OPA will strive to protect those dealers who are careful to observe regulations, he promised. The inference from this remark might mean that OPA will prosecute such violations perpetrated by dealers whose actions thereby are harmful to the business of others.

Louis A. Spiess, attorney for the National Waste paper Industry Committee, urged the trade to take their price troubles to the proper authorities.

Louis Marcovitz, president of the Associated Rag Industries, presided at the meeting of that group, which includes woolen rag graders as well as cotton rag dealers.

James T. Flannery expressed the belief that ceilings have prevented inflationary prices in old cotton rags, and have permitted dealers to operate profitably. Harris Goldman of New York was elected president and J. Solotken of Indianapolis, vice-president.

Carlton B. Overton presided over the meeting of the Cotton Rag Industries Council at which waste paper council attorney Speiss described his arrangement with the waste paper trade through which he represents their interests at Washington. It is proposed that he do the same for the cotton rag dealers. A fund has been collected by the larger dealers for this purpose.

William G. E. Creaser of the Wool Waste Unit, Textile Leather and Apparel Division of OPA, declared that prices of wool waste materials by which he meant woolen rags and wool clips had risen 50% from January, 1939, to pearl Harbor. That was the primary reason for the price "freeze" at that time he said. He complimented the industry for its cooperation with the OPA and promised that his office would continue to try to make adjustments towards a more equitable and workable instrument.

William Spellman of the War Manpower Commission declared that the one solution for manpower shortage was to "hire more women". Nearly 65,000,000 persons will be in war plants or the Army, Navy, Marine Corps or Merchant Marine by the end of this year. Another 5,000,000 will be needed for war plants plus unknown numbers for agriculture; many of these will be women. That is why they should be trained wherever there are operations in scrap warehouses that it is possible to do so.

President David Feinburg's remarks on manpower were particularly timely. He said; "As Selective Service has reached further each day into the available manpower of the country, the problem of how to keep our plants in operation has been growing in importance. It was because of this situation that I felt it necessary., if at all possible, to confer directly with Paul V. McNutt, Chairman of the War Manpower Commission. This was particularly important in view of the so-called order to get into an essential business or fight, which brought into our headquarters telegrams and telephone calls to the effect that employees with dependents were becoming very much concerned and were already looking for jobs in war industries. I feel that members generally will agree that as the result of the conference which I arranged with Mr. McNutt in Washington and the notice; we were able to send to members immediately following that conference, they were able to quiet the fears of some of their employees.

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'I want you to know that in approaching the War Manpower Commission and in our discussion with Mr. McNutt, we were not basing our request for consideration on any question of selective service. We took the broader and perhaps more patriotic position that without a thorough understanding that the industry was essential, our inadequate labor supply would be unable to produce the tremendous tonnages of necessary scrap material. I believe the manpower question concerns every member of the industry. There is undoubtedly much more that will have to be done not only with the War Manpower Commission but with the National War Labor Board, and you can depend upon this organization to do everything possible to secure for the trade the manpower which it must have and should have as an essential industry. We have already literally given of our blood and tears, but now we must do our part and actually physically sweat with our labor to produce results. We must SCRAP, SCRAP and SCRAP to lick the Jap."

Two telegrams of importance were received and read during the convention, one from Donald M. Nelson, Chairman of WPB, in which he congratulated the industry upon its achievements in 1942 and urged the collection of all possible salvage material in 1943 with particular emphasis upon the collection of scrap copper. The other telegram was from Prentiss M. Brown, Administrator, Office of Price Administration, expressing his appreciation for the cooperation received from the waste material industry.

In dealing with the problem of manpower official notice was given of Category No. 12 of the War Manpower Commission essential industries in which the Waste Material Industry is treated as follows: Scrap Iron, Scrap Metal, Salvaging and Processing of Scrap; Collection, Sorting and processing of waste material.

The Index slates that its primary purpose is for the guidance of Selective Service Boards and United States Employment offices. In connection with the deferment of essential workers it was pointed out that the military services are now drafting men at the rate of 20,000 per day and this will continue throughout the rest of 1945 and while due consideration will be given to workers in essential industries the demands of the armed forces are still paramount.

In dealing with the woolen rag situation it was pointed out that "reworks" are still restricted because of government regulations and the only hope of improvement for these grades except knits which are now at ceiling was the development of civilian and lend-lease business. The outlook for this activity is not good. Some low value woolens were being sold for special wiper uses.

In the old cotton market wiping rags are strong and the demand is good. It is indicated that a regulation requiring the payment of at least 40cts per hour to workers in all sections of the wiping trade will be issued shortly and this will affect all Goodwill Industries making wiping rags.

The outlook for roofing rags is also good and it is expected that the ceiling price will hold firm the next several months.

The outlook for waste paper of all kinds is good. Ceiling prices on mixed and news are prevailing east of the Missouri River and collections are not excessive. It is thought that present conditions do not warrant a national waste paper campaign but local drives may be organized in areas where shortages may occur. Goodwill Industries Executives will do well to keep in close touch with local and state salvage committees.

The need for scrap metals of all kinds will continue and we may expect ceiling prices to hold firm for the next few months at least.

It was also pointed out during the several meetings that considerable salvage material is going overseas with the likelihood of its return almost nil. For instance, the paper container industry must set aside 25% of its total production for military use. A large part of this tonnage is in the form of the so-called "V" cartons, a special waterproof container developed to government specifications. Under ordinary conditions we could anticipate that from 40% to 60% of this tonnage could be salvaged and returned to the mills. Under the export conditions this tonnage is gone and is bound to affect the supply 90-120 days hence.

Another item of interest appeared in this week's issue of "Textile Age", relating how the U. S. Government had set up in Belfast, Ireland, a salvage depot to make from discarded army outfits uniforms for German prisoners. Using American machinery the depot is saving the War Department an estimated 5 million dollars annually and is also providing the British war industries thousands of tons of wool, cotton and rubber which formerly was a part of our export trade. These items are not likely to return to America for salvage use again. All of which adds up to a gradual strengthening of the waste material market.

During the convention there was considerable discussion relative to the possibility of the rationing of clothing and sentiment seems to favor a 50-50 chance of no rationing of clothing before July 1, but a 70-30 chance of rationing before September 30 this year.

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Goodwill Industries will do well to proceed on the premise that waste and discarded materials, from the long-term viewpoint, will become increasingly difficult to secure and all possible efforts ought to be made now to secure adequate supplies for as long a period ahead as it is possible to do so.

LETTER TO MANPOWER COMMISSION

March 8, 1943
Mr. Royden A. Blunt
Director of Baltimore Area
War Manpower Commission Baltimore Trust Building
Baltimore, Maryland

Dear Sir:

The Baltimore Goodwill Industries, Incorporated, submits the following statement in relation to the 48 Hour Week Regulations.

The Goodwill Industries, a member agency of the Community Fund of Baltimore, is a philanthropic enterprise conducted entirely without profit to any member or stockholder. Its operations consist of collecting discarded material from contributing homes, repairing and renovating such articles as are reclaimable, and selling these at stores accessible to the poorer sections of the population of Baltimore. Through its operations, the Goodwill furnishes employment and rehabilitation to persons who by reason of old age or other physical or mental handicap are unable to secure employment in normal industry. Incidentally, the Goodwill performs an important function in the salvage of materials, and through its stores is enabling persons of limited means to purchase goods at low prices.

The Goodwill payroll averages about 150, of whom all are handicapped workers with the exception of less than ten essential staff and key employees. These staff and key positions are held to an absolute minimum, and there is no possibility of reducing the number of such employees by an extension of their work week. The handicapped workers are not fitted for normal industry, and an extension of their work week is impracticable anyhow by reason of their physical limitations. The Goodwill is performing a valuable function in training and rehabilitating such workers, so that within the past year 44 of them have been enabled to go out and take jobs in normal industry. In view of the low wages paid by the Goodwill as compared to normal industry, this transfer to normal industry is practically automatic, the worker being quick to take the opportunity for higher wages as soon as he is trained and fitted.

From the above statement, it will be manifest that an application of the 48 Hour Week to the Goodwill would be impracticable, and that it would in no wise serve the purpose of releasing workers for war industry. The Goodwill Industries therefore respectfully requests exemption.

Very truly yours, (SIGNED)
John S. German
Superintendent
JSG:S

REPLY FROM MANPOWER COMMISSION

Office for Emergency Management
WAR MANPOWER COMMISSION
48-Hour Week Division

March 11, 1943
Dr. John S. German, Superintendent
The Baltimore Goodwill Industries, Inc.
1713 East Pratt Street
Baltimore, Maryland

Dear Dr. German;

We acknowledge receipt of your letter dated March 8, 1943, with reference to the 48-hour minimum wartime work week law as it applies to your business.

After considering the information given in your letter, it is our opinion that as practically all of your employees should be exempted from the 48-hour week because of physical limitations, we believe it would be practical to exempt the organization as a whole, as we feel you are doing an excellent work in training handicapped workers so that they can then take regular positions in industry.

We are, therefore, pleased to grant Goodwill Industries exemption from the requirements of the 48-hour minimum wartime work weak law.

Very truly yours,
Lawrence B. Fenneman
Area Director for Maryland
By: Harry Hardie