Document 15ZM48jL1emkkYzDmqrM1D6VE

FOOD. DRUG AND COSMETIC PACKAGING MATE RIALS COMMITTEE :s responsible ior surveillance of techni cal and .egal aspects of Food and Drug Administration, 'ggu/o- and reicted egislcvon affecting the plastics packaging industry The Committee responds .n anting or verbal testimony uihen such regulations might affect the -ndustry It continually works with FDA to establish criteria for continued safe use of food containers, films. and con liners At meetings of this Committee, members are appraised of sig nificant developments in the area of FDA regulations, including the submission of SPI comments on proposed PVC regulations. Housewares Exemption, plastics bottles for carbonated bever ages. and the A8S Prior Sanctions. A new Internanonal Com mittee to research and report on world-wide packaging regula tions was established. The Committee produced a "Freedom of Information Man ual." The book is a guide and introduction to understanding the public information regulations of the FDA. INTERNATIONAL COMMITTEE prepares testimony for U.$. Government committees and develops industry position statements. It sponsors educational conferences, seminars, workshops.- and collects and distributes statistics on international plastics trade. The Committee's Government-Liaison Subcommittee is pro viding guidance to member companies in cases of unfair compe tition under the Generalized System of Preferences. Dumping and Safeguards, by providing information concerning (he prop er steps to take. It also is working with the International Trade Commission on tariff nomenclature and harmonization of indus try statistics. The Subcommittee has taken a position on the re tention of the Domestic International Sales Corporation (DISC) and against the change of present regulations requiring tax only on remitted earnings on foreign operations. The Program and Education Subcommittee is cooperating in the updating and expansion of a new publication. 'Internation al Plastics Resins Statistics." The Subcommittee is also issuing a newsletter to cover International Committee activities and plans to promote the International Committee to non-member com panies involved in international trade. The Trade Shows and Foreign Opportunities Subcommittee is assisting NPE with the International Visitors Center at NPE/76. They will also work with the Department of Commerce in pro viding assistance for export promotion, foreign trade shows and missions. In addition, a long-range calendar of overseas exhibits and trade shows as related to the plastics industry is being developed. PLASTIC BEVERAGE CONTAINER GROUP operates in association with PAC The group selects, prepores, and cor nea out programs of a technical, legal or public relations nature, supporting and preserving government approval and enhancing public acceptance of the use of barrier resins for carbonated bev erage. beer and wine containers. A program was adopted to support legal services for court challenges by independent adversary groups and unfavorable agency actions. A small portion will be devoted to developing and publishing positions papers for member use in countering unfavorable publicity PLASTIC JERRY CAN COMMITTEE publishes technical performance standards. The Committee is promulgating an N8S standard through ASTM. Members of the Committee have cooperated by provid ing needed background information. The Committee is devel oping information on additional quality control test procedures PLASTICS WASTE MANAGEMENT COMMITTEE researches projects and promotes programs to aid municipalities m managing their solid waste problems -- especially the recovery of plastics waste. From June 1975 to January 1976 the Committee funded a research project at the National Center for Resource Recovery INCRR). This project involved the study of material balances on plastics streams in NCRR's municipal solid waste processing test facility in Washington. DC. Samplings from this test site are now undergoing chemical and physical property analysis by some of our member companies. The Committee is currently evaluating possible research pro jects including an update on energy recovery from M5W. sepa ration of plastics MSW fraction into generic types, and markets for these products. The Committee is also planning to make an appraisal of the role of plastics in the concept of source reduction of solid waste SAFETY AND LOSS PREVENTION COMMITTEE develops fire testing programs for plastics warehouse storage. safety awards programs; publishes industry safety bulletins, industrial accident data; and provides guidelines on develop ment of machinery safety. The Committee is reviewing all phases of the warehousing of plastics program completed at Factory Mutual Research Corpo ration and is discussing the next category of materials that are traditionally stored in commercial warehouses, specifically those which have a longer life cycle than the first group. The Commit tee decided that three underwriter insurance earners. Factory Mutual. Kemper Insurance and Industrial Risk Insurance should contribute to the cost of the fire tests, and commitment has been made by the three underwnters to support SPI's last series of testa. Activities with the National Fire Protection Association includ ed a presentation made by an SPt member at NFPA's annual meeting outlining the results of the Committee's fire tests, and as a result of the presentation. SPI has been invited to place a member of the Fire Test Committee on the NFPA rack storage committee. Safety Awards, sponsored by the Committee, were given to 44 companies who had no loss work day accident cases and nine companies received awards for having an accident fre quency rate of below one percent. TRAFFIC COMMITTEE represent* the industry before the Interstate Commerce Commission and other Governmental agencies concerning regulations or other matters affecting (he plastics industry and further represents the industry before the rail and motor comer tariff bureau* and before the Interstate Commerce Commission with respect to rule and rote changes In pursuing its pnmary function of protecting the industry from unreasonable and prejudicial rate increases, the Committee protested to the ICC (he application to plastic resms of a seven SPI-22135 percent general rail freight increase published in early 1976 The increase, limited principally to resins moving within the East, has since been found to be unreasonable by the Interstate Commerce Commission and ordered cancelled It is estimated that this deci sion will save the industry more than $2.5 million annually The cancellation of the ncrease on plastic materials was the only rate cancellation ordered by the ICC ;n its review of the rail earners' general increase. The Committee has been involved in four rule making pro ceedings before the Interstate Commerce Commission of signifi cance to the industry In one proceeding, the Committee suc cessfully petitioned the ICC to establish a tanff publication rule to enforce the national classification as the maximum reasonable basis for common carrier rates and charges. Motor carriers have frequently acted, both individually and through their regional tariff bureaus, to publish higher ratings and rates prejudicial to producers of light density plastic products; and the rule adopted by the Commission is intended to preclude further similar tanff provisions. In another proceeding, the ICC had adopted a rule pertaining to the extension of credit by motor earners requiring carriers to assess a service charge of one percent, minimum $10 00, for late payment of freight charges. The Committee petitioned the ICC to reconsider and rescind the rule change and has partici pated in an informal ICC conference concerning this proceed ing. This proceeding is pending a decision. Additionally, the Committee is participating in proceedings at the ICC to develop rules to implement the Railroad Revitalisation and Regulatory Reform Act of 1976 and another rule making pertaining to the adequacy of motor carrier service for small shipments. The Committee has been involved in several motor carrier classification proceedings of substantial interest to the industry. A proposal entailing a restructuring of truckload charges and a proposed 20 percent penalty charge to be applied where the average weight per package in a shipment is less than five pounds have been defeated. Additionally, favorable disposition has been made of a proposal for substantial increases in the rat ings pertaining to light density plastic products. A fourth motor carrier classification proceeding, involving a proposed revision to the description and ratings for plastic pipe in coils, is being contested by the Committee. SPECIAL PURPOSE GROUPS APPLIANCE COUNCIL monitors legislative and standardsmaking activities, conducts Appliance Awards competition, and serves as an information source for home economists and writers. The 1975 Appliance Council Awards presentation was made in conjunction with the SPE NATEC Meeting. Attendance was excellent, and a great deal of favorable publicity resulted. In (he past year the Appliance Council responded to numer ous queries regarding the use of plasties-in-applianees and provided the basis for articles beneficial to the plastics appliance industry. HOUSEWARES MANUFACTURERS GROUP serves as spokesman for the plastics housewares industry. It monitors regulatory activities and is represented at hearings and standardsmalting bodies to offer input and obtain information. The Group was represented at National Fire Protection Asso ciation and American National Standards Institute meetings on proposed standards (NFPA 3Q3A, 56J; ANSI Z61.ll, and worked with agencies in Colorado and Oregon to promote favorable regulations regarding plastic trash cans. PLASTIC DRUM INSTITUTE develops specifications on various types of plastic industrial containers and drums. The Institute maintains /iaison with Federal and state agencies con trolling transport of liquids and solids in the U. S- At the Semi-annual Meeting of the Institute, reports were pre sented by liaison committees dealing with the Department of Transportation, Office of Hazardous Materials, the General Services Administration, National Motor Freight Committee, Petroleum Packaging Committee of API, Uniform Freight Clas sification Committee, Bureau of Explosives and the Manufac turing Chemists Association. Continuing liaison with these agen cies and associations is of great importance to the Institute s members. At the Winter Meeting, recommendations and proposed requirements were discussed for all types of containers which are a result of the Federal Transportation Safety Act of 1974. The Institute's Annual Meeting concentrated on consideration of proposed standards on closures. The Group is also endeavor ing to get a tariff classification for all plastic fifty-five gallon drums by presenting their recommendations at a hearing of the National Motor Freight Classification Committee. PLASTICS FOR TOOLING-SPECIAL PURPOSE GROUP. The major activity is sponsorship of the "Plastics for Tooling Conference" held annually at Purdue University. The 17th Annual Conference at Purdue University took a complete turn to a general plastics engineering program. This differed from previous concentration on tooling. PLASTICS IN CONSTRUCTION COUNCIL aids in ex panding and maintaining the market for plastics building prod ucts by initiating changes in building codes, standards and test methods. It develops informative publications and maintains a Speakers Bureau. Committees presently active are: LightTransmitting, Interior Finish, Insulation, Pfumbing Fixtures, and Trim. The Council continues to be active through its several stand ing committees. The Model Building Code Chapter on Light-Transmitting Plastics was adopted by the Southern Building Code Congress International in the form presented by SP1 and is included in the 1976 edition of the Standard Building Code. The same text was later accepted by the Building Officials and Code Administration International. Finally, the SPf recommendation has also been submitted to the International Conference of Budding Officials for consideration as a major amendment to the Uniform Build ing Code. The Interior Finish and Trim Committee has been active in monitoring the safe passage of a number of code changes effect ing performance criteria for wall coverings and extrusions used as moldings and trim. NATIONAL PLASTICS EXPOSITION AND CONFER ENCE. This Committee conducts one of the largest industrial expositions in the U S. and it is the plastics industry's principal showcase, featuring raw materials suppliers, tool, die and moldmakers, molders, reinforced plastic processors, film and sheet ing processors, macninery manufacturers, equipment suppliers, research, development and testing laboratories, and others. The show is held every three years. A National Plastics Conference. featuring experts on many phases of the industry and its mar kets. is conducted concurrently. The drawing for exhibit space was held last year and a record 298 companies committed themselves to 251.000 square feet of exhibit space. 3y the end of May. the number of exhibitors had increased to 378 firms representing 269,500 square feet of space sold which ensures that the 1976 NPE will be the big gest ever A dominant location for the SPI booth has been selected: The SP! booth will emphasize the many services it performs and it will be used to attract non-members. The objectives of the public relations and advertising cam paign have been to obtain a high number of pre-registrations for the show and conference, and to identify and communicate with vertical end-user markets served by the plasncs industry. This includes a massive circulation of pre-registration cards, a direct mail program aimed at vertical, end-user markets, a multi lingual brochure being distributed overseas, and a number of press releases in the process of being distributed will be con tinued until show time. The Conference program has been finalized and an outstand ing timely program is planned, supported by excellent speakers. A special Friday morning educational presentation for college level students will be conducted on the last day of the show. Attendance will be by invitation only. In the past, separate registration fees were charged for the exhibition and conference. This year there is one fee. $7.50 for advance registration and $10 on site. This single fee entitles you to attend all conference sessions as well as the exhibition. In addition, the fee provides for unlimited shuttle bus service be tween the hotels and McCormick Place. POLYSTYRENE SAFETY GROUP conducts tests on the fire behavior of end-use polystyrene products, studies environ mental and toxicity health issues and is concerned with the development of safe-use guidelines. Onginally organized as an ad hoc committee of the SPI Fur niture Division, the Polystyrene Safety Group now functions as a self-funded unit under the aegis of the Public Affairs Committee. Since the Group was formally constituted it has expanded to nine member companies and other eligible polystyrene pro ducers have been contacted. Combustibility, EPA, FDA, and OSHA committees have been established. While operating as an ad hoc committee, the polystyrene producers completed a preliminary series of large-scale bum tests at Southwest Research Institute. A second, more intensive combustibility research program has been Initiated with South west Research Institute. The project, which will be controlled by the Polystyrene Safety Group, will involve investigation of enduse polystyrene articles. The Group has also approved the concept of a program to be conducted at the University of Houston to investigate the mono mer level in injection molding and extrusion operations. Also to be explored are the monomer and oligomer content in fabricated polystyrene articles, and environmental problems concerning polystyrene. URETHANE SAFETY GROUP conducts research and test ing programs on the safe uses of polyurethanes, and communi cates such information to legislators and regulators, the fire community, and polyurethane users. In the past year, dozens of presentations on the subject of safety in application and installation of urethane foam insulation have been made by members of the group to audiences in the continental U5A. Alaska and Europe. The general slide presentation on urethane foam as insula tion. has been revised, making it more effective. A new slide presentation especially directed at the interests of the fire com munity has been prepared. A bulletin on spray-on thermal barrier coatings for use over intenor installations of ngid polyurethane foam insulation was prepared and is being distributed. Fire safety guidelines covenng the storage and handling of flexible polyurethane foam for seat ing and bedding will be distributed in the course of 1976-77 An article for 250 trade journals was prepared and issued, giving safety guidelines for those using torches in the vicinity of poly urethane foam insulation in new construction or renovation work. A report was prepared at the request of the Federal Trade Commission, explaining the meaning, derivation and the use of "K" Factor information as an attribute of urethane foam insulation Interviews with trade press editors have resulted in excellent editorial matenals on urethane foams and the activities of the USG appearing in editions of Roofing/Siding/Insulation and Progressive Architecture magazines. The Group is now distribut ing a Stanford Research Institute summarization of the South west Research Institute and Rubber and Plastics Research Asso ciation Fire Tests results on flexible urethane foam. A report on a mini-comer fire test method will soon be avail able and the comer wall combustibility programs continues at Factory Mutual Research Corporation Other testing on com bustibility and toxicity is being carried out by the FTC-Products Research Committee at the suggestion of the Urethane Safety Group. The Technical Committee of the group has been investigating penal institution fires involving polyurethane foam mattresses and consulting in depth with fire marshals and correctional officers. VCM AND PVC PRODUCERS GROUP provides the in dustry an interface with the various government agencies devel oping standards and regulations on vinyl chloride monomer and polyvinyl chfonde plastics. Organized in the Spnng of 1974. the self-funded Group's initial activities were directed at the tech nical and legal considerations relating to the OSHA Standard on vinyl chloride that became partially effective April 1. 1975. SPTs comments on FDA's September 3rd proposed rulemaking on vinyl chloride polymers were submitted to FDA in a report on December 19, 1975. The comments stated the indus try's position, that presently available grades of PVC contained such low levels of vinyl chloride that it is not possible to detect vinyl chloride in PVC packages by extraction with food-simulat ing solvents using FDA laboratory testing procedures. FDA had not issued a final regulation on PVC for food packaging at the time of this report's publication. The industry is also awaiting the proposed EPA standard which was published on December 24. 1975. and classified vinyl chloride as a hazardous pollutant. EPA is yet to issue a final standard. The group has approved an action program designed to pre sent the positive facts on VCM and PVC to selected media, environmental organizations and the general public. Members of the group have visited six major cities and met with the news media to correct misconceptions and counter misinformation concerning the vinyl chloride/polyvinyl chloride situation. The plastics industry is continuing to operate under the full OSHA standard of April 1, 1976, with many innovations and controls that provide the industry with a safe work environment. SPI-22138 W BALANCE SHEETS May 31. 1976 and 1975 ASSETS Cash in checking account and on hand......................................... Time savings deposits....................................................................... Short-term investments, at cost (which approximates market) Receivables: Membership dues, less allowance for doubtful accounts, 1976, $15,000; 1975, $30,000..................................................... Other.................................................................................................. Prepaid expenses and other assets............................................... Deferred charges--1976 National Plastics Exposition............ Fixed assets: Furniture and equipment............................................................... Leasehold improvements............................................................. Less accumulated depreciation and amortization.................. Total assets LIABILITIES AND FUND BALANCES Liabilities: Cash overdraft....................................................................... Accounts payable and accrued expenses...................... Unearned membership dues.............................................. Deferred revenue--1976 National Plastics Exposition Deferred revenue--other..................................................... Total liabilities............................................................... Fund balances: General fund: Unappropriated............................................................... Appropriated (note 6)....................................................... Special projects funds.................... ........ Total fund balances.......................... Total liabilities and fund balances. See accompanying notes fo financial statements. 1976 $ 2.600 302,503 2.550,000 1975 $ 220,529 -- 1,805.357 147 39,285 11,523 358,838 241,309 72,440 313,749 116,478 197,271 $3,482,167 4,493 120,968 5,901 132,200 165,316 31.749 197,065 91,894 105,171 $2,394,619 $ 49,323 439,937 12,182 613,956 7,852 1,123,250 $-- 437,224 65,618 -- -- 502,842 123,355 1,530,687 1,654,042 684,875 2,338,917 $3,462,167 362,360 1,209,147 1,571,507 320,270 1,891,777 $2,394,619 SPI-22139 STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN GENERAL FUND BALANCES Years ended May 31, 1976 and 1975 Revenues--operating: Membershio dues . Interest............................................. Sales of literature............................ Special projects................................. Other..................................................... Unappro priated 1976 Appro priated 53.486,148 176,555 42,302 2.278,066 1.964 5.985,035 5-- -- -- 400 400 Expenses--operating: Direct: Membership Services: Legal and consulting.............................. Communications (public relations)... Reasearch and development................ Administrative.......................................... Membership promotion........................ Directory.................................................... Special projects--research, development, legislative, public relations...................................... Service operating units.............................. Divisions and groups.................................. Regional offices.......................................... Public affairs committee............................ Chemical Industry Trade Advisor............ Plastics Education Foundation.............. indirect program, administrative and general: Salaries and employee benefits.............. Office supplies and expenses.................. Rent expense................................................ Auditing and computer services.............. Provision for depreciation and amortization........................................ Provision for doubtful accounts.............. Relocation expenses.................................. Other................................................................ Less allocation of administrative expenses to National Plastics Expositions............................. ....................... - Excess (deficiency) of revenues over expenses from operations... Fund balances at beginning of year................ Appropriations...................................................... Fund balances at and of year............ ............. .. 440,431 83,624 -- 72,415 25,756 8,897 2,278,066 124,607 64,647 116,834 1,232,434 2,000 11,250 1,059,272 213,990 97,121 49,701 24,584 4,477 -- 26,574 5,930,680 75,000 5,861,660 123,355 362,360 ( 362,360) $ 123,355 41,123 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 97 41,220 41,220 ( 40,820) 1,209,147 362,360 $1,530,687 Total 53,486,148 176,555 42,302 2,278.066 2,364 5,985.435 481,554 83,624 -- 72,415 25,756 8,897 2.278,066 124,607 64,647 116,834 1,232,434 2,000 11,250 1,059,272 213,990 97,121 49,701 24,584 4,477 -- 26,671 5,977,900 75,000 6,902,900 82,535 1,571,507 -- $1,654,042 1975 Total 53,193,545 248,195 45,959 2,168.455 3.334 5,659.488 432.668 79.676 70,000 86,696 26,769 57 2,168.455 111,851 76,028 89,806 979,196 2,000 17,975 945,374 164,957 81,300 55,009 14,661 27,084 15,000 12,975 5,457,537 75,000 5,382,537 276,951 1.294,556 -- $1,571,507 See accompanying notes to financial statements. SPI-22140 STATEMENTS OF CHANGES IN SPECIAL PROJECTS FUNDS Years ended May 31, 1976 and 1975 Balance at beginning of year................................... Additions: Assessments.......................................................... Meetings and conferences................................... Sales of literature.................................................. Contributions for support of special programs Other.......................................................................... Deduction transferred to general fund revenues and expended Balance at end of year.......................................................................... See accompanying notes to financial statements. 1976 $ 320.270 1975 $ 201.041 2.147,436 399.111 45,827 45,900 4,397 2.642,671 2,278,066 $ 684,875 1,891,601 298,186 42.572 55,325 -- 2,287,684 2,168,455 $ 320.270 Peat. Marwick. Mitchell 8c Co. CERTIFIED PUBLIC ACCOUNTANTS 343 PARK AVENUE NEW YORK. NEW YORK 10022 Tha Board of Directors The Society of the Plastics Industry. Inc.: We have examined the balance sheets of The Society of the Plastics Industry. Inc. as of May 31. 1976 and 1975. and the related statements of revenues, expenses and changes in general fund balances and changes in special projects funds for the years then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other procedures as we considered necessary in the circumstances. In our opinion, the aforementioned financial statements present fairly the financial position of The Society of the Plastics Industry. Inc. at May 31. 1976 and 1975. and the results of its operations for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis. July 16. 1976 SPI-22141 NOTES TO FINANCIAL STATEMENTS May 31. 1976 and 1975 1. Summary of Significant Accenting Policies The accompanying financial statements have Oeen prepared on the accrual Oasis of accounting and include all material accounts receivable and payable, other liabilities and deferred charges. The special projects funds represent receipts from certain members of the Society participating m selected industry projects. Such funds may only be utilized in accordance with the purposes established by the partici pants and are m contrast with general funds, over which the Board retains full control to use in achieving any of the Society's purposes. Special proiects funds are reported as revenues and expenses when utilized for their intended purposes. Fixed assets are stated at cost, less accumulated depreciation and amortization, which are oe*ng provided for over the estimated useful lives of such assets on a straight-line basis. Certain 1975 amounts have Oeen reclassified to conform to the current year's presentation. Other significant accounting policies are set forth m the financial statements and the following notes. 2. Retirement Pfan The Society has a non-contributory trusteed retirement plan for all employees who meet age and length-of-service requirements. Costs of the plan are funded currently, and for 1976 and 1975 aggregated $96,400 and S96.3S0, respectively, including amortization of past service costs. At May 31, 1976 and 1975, the assets of the fund exceeded the value of the participants' vested benefits. 3. Products Research Committee Funds Effective Oecemper 3, 1974, the Society executed with the Federal Trade Commission a consent order which, among other things, required the establishment of a Products Research Committee for the purpose of conduct ing research into the uses and hazards of cellular plastics products. The research is to be funded over a five-year period by various other respondents to the FTC proceeding. The Society is custodian of the Committee's funds and. at May 31, 1976. held $1,247,249 ($998,068 m 1975) in checking and savings accounts for use by the Commit tee. Such funds are not included in the accompanying financial statements. 4. Contingent Liabilities The Society has been named or advised that it will be named as codefendant in several lawsuits. These actions, in the nature of product liability suits relating primarily to the combustibility of foam plastics, seek judgments for substantial damages. Counsel is of the option that the likelihood of unfavorable outcomes is remote. 5. Commitments The Society's lease commitments for office spaces areas follows: Year ending Msy 31 1977 1978 1979 1980 1981 Commitment $130,987 129.701 124.371 121.442 109.961 These amounts include the lease of the Society's executive office spaces at an annual rental, including charges for electricity, of $107,500 per year. The lease expires in 1965; however, the Society has the option to terminate such lease as of April 30,1980 upon payment of an additional option fee of $140,000. Certain leases are subject to escalation provisions based on real estata taxes. 6. Appropriated Qeneral Fund Balances Appropriated general fund balances consist of ths following: Purpose Directors' special reserve: Public Affairs Committee Capital improvements Other National Plastics Exposition Public Affairs Commitee 1976 1975 S 79,500 $ - 13,667 -- 1,438,500 311.261 -- 792,107 -- 105,779 Si .530,687 $1,209,147 SPI-22142 2 LaVemA. Nled/eidt C Rex Scott 1976-1977 OFFICERS AND DIRECTORS Chairman STANFORD H. SHAW Shaw Plastics Corp Berkeley Heights. New Jersey Vice Chairman IVER J. FREEMAN Package Machinery Co East Longmeadow. Massachusetts Secretary LaVERN A. NIEDFELDT Technical Plastics Corp Santa Cruz. California Treasurer FRED C. SUTRO.JR. USS Chemicals Pittsburgh. Pennsylvania immediate Past Chairman C. REX SCOTT Phillips Chemical Co. Pasadena. Texas SECTION DIRECTORS Eastern Section HARRY USSERY Allastics Norcross. Georgia Midwest Section FRITZ A. BACKSCHEIDER Recto Molded Products. Inc. Cincinnati. Ohio New England Section GAGEOLCOTT Dow Chemical U-S.A. Wellesley. Massachusetts Western Section ROBERT K. HALUDAY Wilson & Geo. Meyer St Co. Los Angeles, California DIVISION CHAIRMEN Cellular PFasflcs Division HERBERT NADEAU The Upjohn Co. North Haven. Connecticut! Custom Sheet Extruders Dfimor* M.L. CHRISTENSEN Adas Plashes Corp. Cape Girardeau. Missouri Expanded Poh/ttyrene Division EVERETT OPTEDAHL Expanda-Foam. Inc. Antioch. Illinois Fluorocarbons Division SAUL RICKUN Dixon Industries Corp. Bristol. Rhode Island Foam Cup and Container Division MARK H. DONNELL Mars Cup Company. Inc. Huntington Station. New York Foam Tray and Carton Division RAYMOND VERSHUM Mobil Chemical Co. Macedon, New York Furniture Division HARLEY D. HENRY Styrex Industries High Point. North Carolina Machinery Division WILLIAM MERICLE Cincinnati Milacron Co Cincinnati. Ohio Moldmakers Division JAMES McWILLlAM Ivanhoe Tool and Die Co Thompson. Connecncutt Moiders Management Division RICHARD McKIBBEN Modem Plastic Co Compton. California Organic Peroxide Producers Safety Division DONNELL A. BALLARD Qxirane Corp. Houston. Texas Plastic Bottle Institute DONALD POLLOCK Consupak. Inc. Morristown, New Jersey Plastic Pipe institute THOMAS CHRISTY Robintech, Inc. Lake Elsinore. California Profile Extruders Division WILLIAM F. MILLER. JR. Johnson Plastics Corp. Middlefleld. Ohio Reinforced Plastics/ Composites institute ROBERT M. VOGELEJ General Motors Corp. Warren. Michigan Rigid Plastic Container Division PAULTROW Dart Industries Ludlow. Massachusetts Thermoplastic Extenor Building Products Division KENNETH R. VALLESKEY Mastic Corp. South Bend. Indiana Thermosetting Resin Formuietors Division LLOYD A. DIXON Dexter Corp. Industry. California Vinyl Dispersions Division FRANK JONES Michigan Chroma & Chemical Co. Detroit. Michigan DIRECTORS AT LARGE June 1. 1974lo Moy3I. 1977 JACK M. FLYNN Dow Chemical USA Midland. Michigan 1VARL LUNDGAARD E. [. du Pont de Nemours & Co . Inc Wilmington, Delaware ROBERT S. MORRISON Molded Fiber Glass Companies Ashtabula. Ohio CHARLES E. O'CONNELL Gulf Oil Chemicals Co Houston, Texas CLYDE RUSHING Peco Manufacnjnng Co. Portland. Oregon KENNETH 5CHOEN The Valspar Corp Milwaukee. Wisconsin June l. 1975 to Moy 3J. 1975 T. E. BRANSCUM Gott Manufactunng Co Winfield. Kansas ROBERT GERDES Plastic Moldings Corp Cincinnati, Ohio CHARLES GRANT Hercules. Inc. Wilmington. Delaware JAMES S. HEARONS Owens-Coming Fiberglas Corp. Toledo. Ohio JEAN F. MALONE B. F Goodrich Chemical Co. Cleveland. Ohio EDWARO G. SLATCHER Container Corporation of America Wilmington, Delaware June i, 1976 to May 31. 1979 RICHARD A. BRADBURY PMS Consolidated of California Gardena. California WALTER BUSSART Eastman Chemical Products. Inc. Kingsport. Tennessee F. REED ESTABROOK. JR. Brook Molding Corp. Norwood. Massachusetts JACK G. FULLER. JR. Polymer Machinery Corp. Berlin. Connecticut GEORGEKAULL Premix. Inc. North Kingsville. Ohio RALPH M. WINTERS Amoco Chemicals Corp Chicago. Illinois SPI-22143 STAFF RALPH L HARDING. JR. PRESIDENT CALVIN GREEN Public Relations Manager THOMAS J. McGRATH general manager JULIETTE LANG CAHN Staff Director Appliance Council Furniture Division Housewares Manufacturers Group Profile Extruders Division Thermoplastic Extenor Building Products Division Traffic Committee Committee on Distribution Polystyrene Safety Group fPAC> JEROME P. CARROLL Director of Safety Coordinating Committee on Consumer Safety Organic Peroxide Producers Safety Division Safety & Loss Prevention Committee (PAO Film Wrapped Palletized Products Committee Radio Frequency Heating Committee PVC Meat Wrap ad-hoc Committee Thermosetting Resin Formulaiors Division Vinyl Dispersions Division ARTHUR B. CHIWI5 Executive Director Urethane Safety Group WILLIAM A. DIRZULA2T1S Director of Administrative Services National Plastics Exposition RAYMOND DURAZO Executive Director Plastics Pipe Institute LAURA E. JONES Administrative Assistant to the President, Secretary to the Board HOWARD M. KIB8EL Statistical Analyst JOHN R. LAWRENCE Technical Director Foam Tray St Canon Division Plastics Waste Management Committee (PAC) VCM/PVC Producers Group Polyethylene Refuse Bag Committee Acrylonitrile Copolymers Product Group ad-hoc Combustibility Safety Committee ROBERT MALUA Controller MAUREEN MIGDALEN Administrative Assistant to the General Manager Joseph s. McDermott Staff Director Plastics in Construction Council Reinforced Plastics/Composites Institute JOHN MALLOY Director of Packaging Services Foam Cup & Container Division Plastic Bottle Institute Rigid Plastic Container Division Plastic Jerry-Can Committee Food. Drug & Cosmetic Packaging Materials Committee IPAQ Plastic Beverage Container Group CariMarbary Administrative Manager A. B. Hunter Southern Flefd Representative StanMruk Assistant Technical Director Frank Reinhart Technical Director Anthony L Scatano Midwest Field Representative ALBERT J. EVANS Director o/Statistics Financial Management Committee Intanational Committee Committee on Resin Statistics BERT S. MONTELL Staff Dtrector Button Group Cellular Plastics Division Custom Sheet Extruders Division Fluorocarbons Division Plastic Drum Institute Machinery Division New England Section Vinyl Film Group E. S. NUSPUGER Dtrectorof Public Affair* Pubtic Attain Committee C RICHARD TITUS Manager, Government Relations Washington, D C. Office VIVIAN WITTMAN Office Manager EASTERN SECTION P O Box 416 Hewitt. New Jersey 07421 201/697-7342 RICHARD FROCK Eastern Regional Manager MIDWEST SECTION 3150 Des Plaines Avenue Des Plaines. Illinois 60018 312/297-6150 ROBERT W. SHERMAN Midwest Section Manager Mold Makers Division Moiders Management Division Processors Committee Plastics for Tooling Special Purpose Group MARGARET A. SHALLCROSS Assurant Midwest Section Manager Expanded Polystyrene Division Melamine Dinnerware Group WESTERN SECTION Saddleback Square Suite 124 12440 Firestone Boulevard Norwaik, California 90650 213/864-2793 LLOYD N. DARDEN Western Manager HERB OSBORNE Assistant Western Manager Lego! Counsel KELLER* HECKMAN 1150 17th Street. N.W. Washington. D C 20036 JEROME H. HECKMAN (SPl General Counsel} ROBERT R.TTERNAN WAYNE V. BLACK MARTIN W. BERCOVK3 DR. DANIEL S. DDtLEH (Techntcai Consultant) JOHN B. DOBECK PETER M. NEMKOV JOSEPH E. HADLEY PETER T. SMITH The Societyof the Plastics Industry, Inc. 355 LEXINGTON AVENUE-NEW YORK, N.Y. 10017-(212) 573-9400 SPI-22144 SPI-22145 5 1994 1993 1992 199,1 1990 1989 1988 1987 1986 , 1985 1984 1983 1982 1981 1980 1979 1978 ANNUAL REPORT 1977 THE SOCIETY OF THE PLASTICS INDUSTRY, INC. SPI-22146 The Cover The photograph on the cover (courtesy of WideWorld Photos), taken at the Mount Wilson and Palomar Observatories, is of a diffuse Nebula m the constellation Casseopeia --representing mankind's future Plastics has a great part in that future, and SPt recognizes that tact. This 1977 Annual Report will in part deal with some or the goals, issues and problems .n SPI's future and therefore m vours In these pages vou will read about the founding of SPI 40 vears ago. the highlights of the past year, including SPE.76, and reports from the divisions and sections discussing future goals and issues, as well as accomplishments for 1977 Table of Contents Chairman's Letter Highlights Annual Meeting SPI 1937-1977 NPE 76 SPI Public Affairs Committee Operating Units' Coals Financial Statements Directors Staff Officers 1977 1 3 4 5 6 6 1: 16 nside Back Cover Chairman STANFORD H. SHAW Shaw Plastics Corp. Berkeley Heights, New Jersey Wee Chairman IVER J. FREEMAN Package Machinery Co. East Longmeadow. Massachusetts Treasurer FRED C. SUTRO, JR. USS Chemicals Pittsburgh. Pennsvlvania Secretary UVERN A. NIEDFELDT Technical Plastics Corp. Santa Cruz, California Immediate Past Chairman C. REX SCOTT Phillips Chemicals Co. Houston, Texas SPI-22147 Chairman's Letter Rather than attempt to summarize events and achievements. I want to devote these two pages to some plain talk about present and future needs of this mdustrv and of its Societv My qualifications as a 'plain talker"f My experience now covers 31 years m plastics, and mv father was one of SPI s charter members forty vears ago For ten years I have served m various capaci ties on vour 8oard of Directors, and during the past year I have been privileged to be your Chairman. As an independent custom molder, I have also had a unique opportunity to participate m and benefit from the phenomenal growth of our industry By all rights, I ought to be quite satisfied, but I'm not I see too many misunderstandings and missed opportunities and too much misguided complacency As an industry, we have not yet proven our ability to deal with our problems We have not demonstrated our capacity for future growth. Do we really deserve the kind of growth opportunities predicted for us? For example, among my fellow processors, there are still far too many otherwise astute businessmen who do not fully understand the value, indeed the necessity, of an industry that is united and agressive in preserving and promoting its interests. The processors who belong to SPI clearly represent the "cream " of the industry, in terms of total employees, total volume, and especially responsible leadership. They participate in SPl's pro grams. take advantage of SPl's services, support its legis lative activities -- and benefit from belonging. But what of those processors, custom, proprietary, and captive, who choose to stand aloof? It's not so much a matter of free-loading as of missed opportun ities We continue to hear misguided criticisms that SPI is too big or is dominated by resin suppliers. In these days of big government and big labor, pressure groups, and criticisms of industry, we need every bit of collec tive clout we can muster Further, because SPI is a federation, each special interest group within our indus try can pursue its own interests. As for resin supplier domination, let me remind you that the materials companies represent just about half of SPl's dues income. A majority of our membership and of our Board of Directors are processors. Speaking as a processor, I wish that our big com pany suppliers would take more active roles on behalf of plastics -- indeed on behalf of the chemical industry. From my vantage point, I see an industry that until now has been relatively sheltered from criticism and exces sive regulation and appears to be unequipped to cope with current and future pressures. The whole stream of chemicals and all of its tributaries need, but do not have, a forceful, united, and effective voice to cope with its energy and feedstock uncertainty, its regulatory challenges, and its bad public image. Because they cannot function effectively as part of the chemical industry, our resin suppliers have been forced to look to the Society for more and more of their concerns, often funding their solutions through addi tional self-assessments over and above their dues We processors can oniy encourage such activities, in ;he in terest of continuing availability of materials Still, I must point out that the resin suppliers' par ticipation m SPI varies widely from company to com pany, even among some of the largest dues-pavers This is a twoway missed opportunity The industry misses the valuable personal input, leadership, and support, while the individual and his company are not taking full and proper advantage of SPl's programs and services Meanwhile, I cannot sav enough about the support of our members who are the machinery builders and mold suppliers for this industry. Each group has its own specialized programs, but both provide strong support to many regional and divisional activities of the Society The leadership provided by these suppliers makes possi ble our highly successful National Plastics Exposition Despite the divergent interests and involvements of our various members, there clearly is a need for a strong association to represent the plastics industry if there were no SPI today, we d have to form an industry-wide organization as quickly as possible to deal with our many problems Product liability is not ]ust a machinery problem. Toxicity concerns are not the exclusive worry of resin suppliers And processors have every bit as large a stake as the chemical companies in ample feedstock supplies. Now, if SPI were being launched today, we might not have as many individual operating units and activi ties. However, we view this diversity as a strength rather than a liability. Through the 22 Directors representing the various divisions and sections and the 18 Directors elected at large, the Society's Board is truly a represent ative body. In confronting the issues, we often begin our discussions with wide differences of opinion. Through the Board's committee discussions we are able to recon cile those differences and to develop sound industry wide policies and programs. Thus, in addition to being a necessity, SPI functions effectively. As described elsewhere in this Annual Report, whatever and wherever the challenge or the opportunity may be, representatives of SPI will be on hand to protect and promote the best interests of plastics. This past year has been highly successful for your Society by every measure save one. Our public affairs program has coped with the issues, our on-going pro grams have expanded, and our National Plastics Exposi tion last December was an outstanding demonstration of the industry's confidence in its future. Finances represent the one area of present and fu ture concern. Thanks to the sound management of pre vious administrations, we began the past year with more than adequate reserves. Recognizing that 1976-1977 dues and other income would be insufficient, we bud- SPI-22148 geted for deficit operations At year's end. our total operating income was 56.021,821, with expenses of 56 211.689 and a resultant deficit of 5189.868 plus 511.405 on special product liability activities. Thanks to the net income of 5575.596 from the 1976 National Plastics Exposition, our reserves rose by $374,323 The key point is that 5PI is currently living beyond its means, depending on surplus and on NPE to fill the gap. Your Board has projected another deficit budget for 1977-1978, this time without the NPE cushion. Your Directors have resolved that the 42<T dues rate will con tinue in 1977-78, but they recognize that a day of reckoning is approaching. While reserves continue to be adequate, we are determined to bring SPl's operations back into balance just as soon as possible. We intend to be more aggres sive in recruiting new members, especially among cap tive processors. We may well have to cut back on cer tain activities now covered by our budget. Considera tion is also being given to raising the dues levels for those companies now paying at the maximum bracket levels. The ultimate solutions are likely to be a combina tion of all three courses of action. SPl's members are indeed fortunate to be repre sented by outstanding Directors, who take their respon sibilities seriously. Each year, inevitably, the turnover causes us to lose key, involved, experienced men; but each year they are replaced bv men who are equally concerned and qualified. On your behalf I want to thank everyone who has served and congratulate all of our new Directors. Each year also brings greater maturity and exper tise to the Society's staff, who do far more than arrange meetings and write minutes. More and more, your staff is called upon to represent you in a great variety of situations and on every issue. Steps were taken this past year to strengthen the staff in several positions and more changes are contemplated. The seemingly perma nent nature of the problems makes it more appropriate 2 to add to our internal capabilities, rather than relying so heavily on outside supporting organizations. A year ago, when I took office I called your atten tion to some five year objectives adopted by your Board. While I can report progress, I am not vet satisfied that we will accomplish each of them in the next four years They bear repeating here: 1. Expand membership to 2,000 companies via special membership campaigns and via the establish ment of at least one more geographical section served bv a new regional manager. 2. Through effective programs, up-grade the repu tation of this industry and its products, as measured bv periodic opinion surveys. 3. Make substantial and widely-recognized tech nical contributions towards the solutions of national problems involving ecology, fire technology, toxicology, consumer safety, and other areas of vital importance to plastics sales opportunities. 4. Participate actively in support of industry and Government programs to solve our nation's energy problems, thereby assuring the availability of the feed stocks needed for future plastics' growth. 5. Through active representation to Congress and administration leaders, help establish a practical doc trine of "acceptable risk" in all national policy matters involving all industry, whereby Government officials recognize their responsibility to 'balance the interests" on behalf of the general public, workers, and industry 6. Maintain the Society's operations at the levels our industry is willing to support. Now, if all of us who earn our living in plastics really care about our own future and pitch in, then we can achieve these six goals -- and more. How much do we care? STANFORD H SHAW Chairman SPI-22149 Highlights The oast vear has produced numerous high spots for SPI The National Plastics Exhibition and the Annual Meeting are cohered elsewhere, and the Report or the Public Arfairs Committee roilows on page 6. with more extensive P4C news Covered on these pages are major activities or $Pi and sectional and divisional news as well as .iterature puchshed in the past year The Board of Directors of SPI voted a new Fire Safety Policv calling for active suoport of programs to reduce fire losses including the approval or reasonable and |ustifiable classification and regulation of plastic products m proper end uses. Seven new industry notables were added to the Plastics Hall of Fame They are John M Debell, John Delmonte. Daniel W Fox, William C Goggm. Herman F Mark, Arnold E Pitcher, and Earl S Tupper Their induc tion during NPE 76 brought the membership m the Hall of Fame to 35 A great many successful meetings were held Among them the SPI Western Section Conference drew national media with the appearance of David Frost within 36-hours of his first Nixon interview; the New England Sections 32nd Annual Conference took on a Meet the Press format with the presence of the major plastics trade press editors. The Eighth Annual SPI Mid west Conference featured speakers who dealt with a wide range of topics directly relating to business opera tions, including marketing tips, patent infringement, and cash efficiency tips Division Highlights Continual expansion and reorganization of existing groups within SPI are part of the process of dealing with the growth of SPI membership and new industry con cerns. In the past year, these new groups included: The Polystyrene Safety Group, established to rec ommend safe practices for the use and handling of poly styrene products. The Committee on Third Party liability, formed by the Machinery Division, to determine the necessary actions to be taken to reduce the number of such suits faced by plastics processing machinery manufacturers. Molders and Moldmakers formed a New York Chapter due to increased area interest and participation. The Urethane Safety Group has merged with the Cellular Plastics Division to form the Urethane Division. In the Molders Division, the Plastics Cutlery Croup has been formed. Increased growth and the desire for area meetings has led to the formation of the Southwest Chapter of SPI for the Texas area. More US demand for plastics windows has prompted the Profile Extruders Division to form a Plastic Windows and Sliding Doors Committee. The Reinforced Plastics-Composites Institute has established a Sheet Molding Committee SPI's Plastics Pipe Institute has completely reorgan ized in order to make it more flexible in concentrating on specific markets, m forming new units, and m raising funds for specific goals PAC Highlights "The Fire Fighter and Plastics m a Changing En vironment," produced with a grant from the Public Affairs Committee (PAC) of SPI bv the National Fire Pro tection Association, is an uniikelv candidate for a sell out. However, this tape and cassette presentation sold out tn its first issue of 1,000 and 1,500 more had to be ordered The life-preserving possibilities of the program make it a must for fire fighters and rescue squads. Further fire safetv research continues with 14 of a total of 18 tests completed on polystyrene and polyethy lene, especially on the short life-cycle applications The 6th Annual Combustibility Symposium fea tured John Bymgton of the U S Consumer Product Safety Commission. The main topic of the Symposium was combustibility hazard assessment and codes and regulations for uses of plastics and synthetics The Symposium was open to representatives or other indus tries and government. The Toxicology Committee, a subcommittee of PAC, held a Toxicology Conference, m Washington, DC It was part of an effort to coordinate research efforts on toxicology by member companies Continuing concern over energy conservation has prompted a major survey of energy use m processing operations. The survey resulted m a wide data base on energy consumption by major plastics processors and 61 energy-saving ideas being used by one or more processors. At the end of the year a follow-up energy audit was sent out for completion In an effort to broaden its scope. SPI's Plastics Waste Management Committee has become the Plastics Resource Recovery and Conservation Committee Staff Changes and Publications SPI has had some staff changes in the last year G.C. "Polly" Barnes was named SPI's Public Relations Manager; Pat Toner was named SPI's Assistant Technical Director; and the position of Membership Director was created and John Weigly was named to fill the spot. New Publications; The Public Affairs Committee has come up with an interesting booklet on "Answers to Questions Most Frequently Asked About Plastics " The 4th Revised edition of SPI Plastics Engineering Hand- 3 SPf-22150 book has been published bv Van Nostrand Remhold Co. The 1976 edition of the SPI Orrectorv and Buvers Guide and Facts and Figures of the Plastics Industry are avail able. The PP! has brought out its Plastic Piping Manual and the PPS member Company Product Directory SPI Reinforced Plastics.Composites Institute has made avail able the Proceedings of its 32nd Conference and the RP'C Exhibited Products Guide The Statistical Depart ment's Financial and Operating Ratios Survev No 15 1976 is ready, and the availability of the SPI Financial Management Manual for Plastic s Processors, edited bv Ernst & Ernst has been announced Also from the Statis tical Department are the Annual Labor Survev --1976 and the Salary Survey No. 10, 1976 Annual Meeting The Eighth Annual Meeting of SPI was held once again m Washington, DC, at the Mayflower Hotel dur ing March 21-23, 1977 An impressive array of speakers, including U S Representatives and Senators, repre sentatives of the media, and administrative leaders, covered a wide range of timely and relevant topics such as energy and product liability Members had the oppor tunity to exchange ideas and views of the plastics indus try among themselves and between legislators and industry leaders. The Society's Voting Representatives re-elected Stanford H Shaw for another one-year term as Chair man of the SPI Board of Directors The following officers were also re-elected: Iver 1 Freeman as Vice Chairman. LaVerne A. Niedfeldt as Secretary, and Fred C. Sutro. Jr as Treasurer In addition, six new Directors-at-Large were named: Ripley W Cage. Richard W Coodrum, Ivar A. lundgaard, Kenneth F Schoen, L. William Sessions, and R. Peter Toohy Each Director will serve a three-year term, beginning on J une 1,1977. The highlight of this two-day event was the "Visit Your Congressman" project where each attendee was urged to visit his Representative and Senator on Capitol Hill SPI was the vehicle through which each member had the opportunity to present his points of view, his problems, and his ideas to his legislator, both as an industry representative and as an individual constituant. The Congressional Reception afterward was an equal success. Many Congressman attended the Rece^ tion, including such notables as Senator Edward Ken nedy, Rep "Tip" O'Neil and Rep. "father" Drinan. 4 SPI-22151 SPI 1907-1977 Nylon hadn't been invented vet, but a number of plastics such as phenolics, polyvinyl chloride, and cellu lose acetate. Had become common and popular materials. The industry was relatively young and very individualistic, but plastics were about to come of age. in May of 1937, a group of businessmen --resin NPE/76 Despite winter storm conditions and freezing temperatures, the 1976 National Plastics Exposition was not only the biggest but the best ever Almost 40,000 visitors braved the December cold to see the 291,000 square feet of exhibit space and 469 exhibitors. More foreign countries were represented than ever before--3.200 overseas visitors came from as far away as Turkey, Morocco, Nigeria, New Zealand, and Singapore. According to an NPE/76 exhibitor survey, the Show had the greatest audience impact ever A small sam pling indicates that selected exhibitors believe about $2 billion in NPE/76 aftermath sales are attributable in large part to the Show's educational value. Eight to nine times this amount looks like a reasonable overall projec tion. They also felt there was a higher proportion of decision makers present than ever before. suppliers and processors --in the vouthful and hearty plastics industry got together m Shawnee-on-Delaware to form a society The original idea was that they should lust sit down and talk and socialize --get to know one another --and maybe discuss some mutual problems Within a year, this group Had become more organ ized and was putting on educational programs for the membership. They had even begun to think about what the Society of the Plastics Industry. Inc might be doing for the industry as a whole. It was decided that they should choose a few proiects and do them well It was difficult to choose only one direction because the indus try was growing rapidly and no one could predict its course. Very shortly outside forces would provide the impetus for the activities of SPI World War II and the introduction of new types of plastics were the forces that began the headlong rush in the plastics industry that has brought SPI to its present level and type of activities. For the first time the NPE Conference was under the management of NPE as a subcommittee. The confer ence of NPE/76, due to the outstanding quality of sub ject matter and speakers, played to standing-room-only crowds, and some of the programs had to be repeated because attendance exceeded fire safety standards Altogether. NPE/76 was the best ever. s SPI-22152 SPI Public Affairs Committee In fiscal 1976-77. the Public Affairs Committee (PAQ, under the Chairmanship of F Reed Estabrook, Jr. continued as the industry's front line defense against public issue attacks on it. worked to develop the tech nical data necessary to confront public issues, and worked toward improving the recognition bv kev pub lics of the essentiality of plastics to our economy and to our society. It was a particularly active year, with the number and intensity of the public issue problems we face at an all-time high. Legislative/ Regulatory Activities In the 1976-77 fiscal year SPI/PAC'c early warning system provided fast, accurate information concerning proposed legislation and regulatory measures of interest to the industry in Washington. D C., and the 50 states. By analyzing political intelligence quickly and. thereafter, taking timely and appropriate action. SPI/PAC helped to sidetrack or defeat restrictive legisla tion that could have caused the industry to lose millions of dollars in potential production and sales. SPI/PAC Legislative Bulletins reported throughout the fiscal year on more than 800 bills that were screened from upward of 140.000 introduced in state legislatures. With the exception of two bills--one in Hawaii and the second in Minnesota--no legislation extremely damag ing to the industry generally was enacted into law. In Hawaii, a litter bill containing a provision to ban the sale of beverages in plastic containers died in the 1977 regular legislative session. However, it was re introduced in special session and quickly enacted, al though no public hearings were held. SPI/PAC has initiated a special legislative program to have the ban re moved from an otherwise good law before it be comes effective January 1,1979. PAC Technical Activities The technical activities of the Public Affairs Com mittee are coordinated and supervised by Mr. Peter Toohy, Chairman of the PAC Technical Committee and SPI Technical Director, John R. Lawrence. Working through the PAC's Issue Coordinators on Combustibility, Resource Recovery, Toxicity, Energy and Feed Stocks, and Product Liability, liaison is provided to all SPI pro grams in these areas. Specific research projects relating to the combus tion of plastics, resource recovery and conservation, safety and loss prevention, and toxicity are developed and monitored respectively by the Coordinating Com mittee on Consumer Safety (CCCS1 the Plastics Resource Recovery and Conservation Committee (PRR&CC1 the Safety and Loss Prevention Committee, and the Toxicity Committee. Some of the specific achievements of these programs are cited in the High lights section of this report (page 3). The overall objec tive of the PAC's technical activities is to provide the technical information required to educate and control those external influences that might otherwise restrict the market opportunities for plastics Information Programs Throughout the 1976-77 fiscal year. SPI/PAC con tinued to direct its information programs toward greater public awareness of the industry's essentiality to our way of life. The essentiality theme was intensified m communications efforts directed toward print and elec tronic media. To promote the positive benefits of plastics and plastics products, SPI/PAC continued its extensive pub licity campaign which reached an estimated 200 million readers and covered such areas as the home, health, medicine, agriculture, transportation, and leisure activities. To respond quickly and authoritatively to any crit icism of the industry, SPI/PAC continued to monitor print and electronic media. Congress and the state legis latures, federal and state regulatory agencies, and the major environmental and consumer organizations, SPI/PAC directed a continuing flow of informa tion--wherever possible and appropriate--on such vital issues as combustibility to the nation's firefighting com munity; on energy-saving aspects of plastics to members of Congress and the state legislatures; and on other major issues such as toxicity and product safety to key audiences including civic leaders, environmentalists, consumerists, and officials at all levels of government. The highly-publicized saccharin issue and the con troversies over plastic-related issues such as vinyl chloride and acrylonitrile attracted the attention and concern of the general public and decision-makers in government toward the entire area of food additives, thus reaffirming toxicity as probably the most serious foreseeable problem confronting the industry. In addition, there were definite indications, par ticularly in the first five months of 1977, that a broad legislative assault on plastics packaging at the state level was developing and would continue throughout 1977 and into 1978. For the most part, the assault is pre dicated on a general misunderstanding of the energy and environmental aspects of plastics and will require a positive program of communications to turn around legislative thinking. SPI/PAC has been structured to deal with and keep current on each important issue and to concentrate its efforts on formulating informational and publicity pro grams to support goals and objectives established by the Issue Committee of SPI/PAC. In Minnesota, SPI/PAC carried out an extensive legislative action/communications program to defeat a bill to ban the sale of milk m plastic containers. Despite the industry's convincing defeat of the environmental arguments posed by proponents of the bill, it was 6 SPI-22153 enacted into law in Mav 1977 The Plastics Packaging Strategy Group of SPI plans to challenge the law m the courts. fn the 50 states and in Washington. DC, where immediate and positive measures were called for. SPI.PaC responded bv developing industry action pro grams that involved one or more of the following: Presentation or the industry's arguments by SPI and.or industry spokesmen at legislative regulatory agencv hearings Participation in interindustry efforts, where proposed legislation or regulation threatened or would affect several related industries Initiation of special action programs to provide imme diate visibility and relief where the industry's inter ests were being imminently threatened. Activation of special legialtive counsel to represent the industry in states where potentially adverse legisla tion had been introduced, the legislative climate was overtly hostile, or where the sheer volume of bills potentially threatened the industry's contin ued manufacturing and marketing of its products Refinement and development of SPI/PAC's Legislative Support Program in specific states--such as Cali fornia, Indiana. Minnesota, and Oregon--where potentially restrictive legislation recurs yearly The future success of SPI/PAC's legislative pro grams depends greatly on member company support and participation, which adds strength, versatility, and mobility to the industry's effort wherever problems surface. Washington Activities Enactment in 1976 of several major new laws in such areas as toxic substances control, solid waste, energy, and consumer affairs together with a complete changeover in the political leadership in the White House and Congress, have made the Washington pre sence of the plastics industry increasingly important and valuable. While many of the major industry issues --legisla tive. administrative, legal, and public relations--are holdovers, the new political leadership has determined a new agenda of priorities. In typical fashion, few of the problems go away, rather they tend to take on new dimensions and possibly, assume a higher or lower priority depending on a complex mix of social, economic, and political pressures. Specifically, for in stance. last year's concern with the passage of the Toxic Substances Control Act and the Resource Conservation and Recovery Act has now shifted to the administrative arena at the Environmental Protection Agency. The Washington Office has coordinated SPI in volvement and response to proposed regulations as well as actively participating in public meetings and work sessions with EPA staff in an effort to achieve workable and reasonable rules by which the laws will be imple mented. SPI initiative in response to requirements of both the toxic and the solid waste laws has been con structive and meaningful. The Washington office has been directly involved m a wide range of important issues put before Congress These include unfair taxes on feedstock supplies and process use of energy: proposed encouragement of un wise conversion of feedstock Svnthetic Natural Cas (SNC) to residential heat, wholesale changes m the svstem of electricity rate charges, natural gas deregulation, and oil company divestiture; product liability, consumer protection proposals, various environmental proposals, proposals for changes m voluntary standard-setting arrangements, possible modification or the Delaney Clause, creation of a Federal Energy Department, reform of OSHA. labor relations reform, discussions of worker exposure to carcinogens, support for recognition of the special needs of small business, and develop ments in such areas as minimum wage, unemployment compensation, foreign trade, and others SPI is involved in the broad spectrum of the product liability issue through the activities of Ralph L Harding, )r. on the United States Chamber of Com merce Panel on Product Liability and the Steering Com mittee of the Multi-Association Action Council. Maior activity in the early months of the new 95th Congress has focused on President Carter's National Energy Plan. Extensive effort has been applied to pro tect piastics and the petrochemical industry from harsh taxes and other punitive measures Closely related to this basic concern are proposals to encourage construc tion of SNC facilities that would use scarce feedstocks for fuel purposes, proposals to alter the current system of pricing the use of electricity by raising the cost to in dustrial and commercial customers; and proposals to deregulate natural gas and to force major oil companies to divest themselves of certain of their energy activities Contact with key members of Congress, congressional staff, and the White House by SPI members, Washing ton representatives, and others has been a major ele ment of this effort joint efforts with member compan ies. other trade groups, and special organizations to represent our views has been effective. Possibly one of the most significant developments so far as effective representation of SPI to government decisionmakers was the establishment of a Washingtonbased Government Relations Committee to serve as a coordinating arm for PAC. Membership on the Commit tee includes representatives of both major companies and small businessmen. Significantly, the Committee unanimously decided to orient itself to the needs of plastics fabricators and processors and to approach questions of policy and strategy from this perspective The combined expertise and experience of these govern ment relations specialists wilt be of invaluable assist ance in doing the best possible job in Washington. Other functions performed by the Washington Office include daily coverage of congressional hearings, administrative proceedings, and press conferences. Every bill introduced in Congress is monitored, analyzed, and acted on as is appropriate. SPI is actively represented on several issue groups and similar organi zations responding to or initiating action with the government. 7 SPI-22154 Operating Units' Goals SECTIONS Eastern Section The Eastern Section has established 13 obiectives, and growth is stressed in each, a 20-member Member ship Committee to get 50 new companies to |oin SPI in the section area during the first year and the continued growth of the Mid-Atlantic (previously the New lersev Chapter) and Southern Chapters along with the estab lishment of a New York Chapter are immediate goals. Other goals are the ongoing result of our purpose: to bring SPI policy and objectives to the local level, to give local members the opportunity to be heard on a na tional level, and to examine and act on local issues In the past year, the section membership has grown to 312 companies and 576 individuals, and the Section has moved to larger quarters to handle the increased activity Midwest Section The Midwest Section has completed the reor ganization of its Board of Directors and Has written new bylaws in order to allow it to become more active in state legislative activities and to be directly supportive of SPI divisions on regional programs and problems. At present, m addition to successful confer ences and meetings, the Section has been able to provide input to the Illinois legislature on revising state workmen compensation laws and is now pro ceeding with the same type of program in the state of Michigan. New England Section A major objective of the Section is increased com pany membership throughout the six New England states. The Section has established a Model States Pro gram under the SPI Public Affairs Committee within the State of Massachusetts. A similar program is now being considered for the State of Connecticut Western Section The Western Section hopes to bring the total members to 500 companies in the next few years. The Western Section and the plastics industry in the West will continue to grow as migration to the sun belt continues. Plastics growth will be more than commensurate with the growth anticipated for the next few years in the 14 Western states. During 1976-77, the Western Section established new chapters in the Southwest and Rocky Mountain areas. The Section had its first bi-annual Corrosion Resistant Structures Conference in 1976 and is plan ning its second one for 1978. DIVISIONS Cellular Plastics Division The SPI Urethane Safety Croup is now a part of the Cellular Plastics Division and the Division will change its name to the Urethane Division. The Structural Foam Croup of the Division is now in the process of organizing a separate operating unit within the SPI to be known as the Structural Foam Division. Future objectives include additional fire research, development of additional specifications, increased Division membership, and expanded public relations Custom Sheet Extruders Division During the year the Division invited the 15 com pany members of the Plastics Safety Glazing Manufac turers Committee to become a part of its organization. It also changed its name to the Sheet Producers Man agement Division. The Division will concentrate on additional recom mended Standards on material used in sheet forming expanded publicity on suitable applications; and periodic future meetings with both thermoformers and material suppliers to consider pertinent problems Epoxy Resin Formulators Division The Epoxy Resin Formulators' "Guide to Classify ing and labeling Epoxy Products According to Their Hazardous Potentials," has been forwarded to the Amer ican National Standards Institute for review, which should publish the updated standard later this year. The Technical and Test Methods Committee will recom mend that the Division contact ASTM for the publica tion of a collection of ASTM methods pertinent to the epoxy industry. Expanded Polystyrene Division The Expanded Polystyrene Division continues its major work on product testing, communication, and education in the fire area. In response to the insulation qualities of the product and the need for energy saving, a new maf* keting program is being developed to promote the many positive aspects of expanded polystyrene. The Division has launched a scholarship pro gram for new design and new applications of their products. Fluoropolymers Division Important actions taken by the Division in the past year include a change of name to the Fluoropolymers Division, the development of additional specifications and test procedures on fluoropolymers, and the sponsor ship of two Division Conferences. o SPI-22155 4 Foam Cup and Container Division During the next half-decade, members of the Foam Cup and Container Division plan to continue their pub lic campaign to establish foam cups and containers as beneficial contributors to the consumer's convenience lifestyle, while also helping to educate the public m , proper solid waste disposal methods Foam Tray and Carton Division |ry- The continuing goals of this group --members pro duce meat trays and egg cartons --are to maintain an Open market by opposing laws and regulations restrict ing the use of foam packaging and to develop guidei ines for the safe storage and handling of foam products Furniture Division The Furniture Division's main goal is to upgrade and promote the use of plastics m furniture. In accord ance, the main activity of this Division will continue to be a periodic Plastic Furniture Conference and presenta tion of Poly Awards for outstanding contribution to the "lastics furniture industry Machinery Division .; " The Machinery Division's objectives include final preparation of 25 proposed Safety Standards on the varous types of plastics processing machinery and auxi- ryl equipment, additional statistical programs, reparation of product liability proposals, and increased {vision membership. ^1976-77 saw the establishment by the American ational Standards Institute of the Division's first Safety tanoard which deals with the Construction, Care, and $e of Horizontal Injection Molding Machines. ojder's Division |The Molder's Management Division has written a set of by-laws and changed its name to the Molder's slon. Its objectives in the next five years are the elopment of programs and support for smaller qers, many of whom are presently not members of M [he Melamine Dinnerware Committee under the Sr's Division has developed a new standard for i pine and will be introducing their new product to v orld during die january Housewares Show. A major : relations and promotion program has also been [fed in support of this effort. maker's Division he Moldmaker's Division has revised its objectives 'Prentices to launch a new Apprentice Pro* which, for the first time, the Division will be yInvolved in curriculum guidance, he Directory of Moldmaker's Services has not expanded to include the large number of new >ers, who have joined since the Division has beactive, but now incorporates a Buyer's Cuide. Organic Peroxide Producers Safety Division The Organic Peroxide Producers Safety Division has appointed two new representatives to an NFPA Committee, which is developing a standard on the stor age and handling of organic peroxides The Division considers large scale testing of pero xides critical The Division also has representation within the U S delegation to the United Nations, concerning packaging of peroxides, storage temperatures, and classifications which the Department of Transportation can incor porate into its existing regulation The Plostic Dottle institute For at least the next two. and probably three, years the Plastic Bottle Institute will be continuing to trv to get the news media, state, federal, and local legislators, and the general public to understand the role of plastic bottles in the energy, solid waste, and health and safety questions. The Division should grow in membership as more bottler producers, including packagers involved in pack age manufacturing, recognize the need to support a mutual defense of plastic bottles Plastics Pipe Institute Last year the Plastics Pipe Institute conducted a major reorganization. Previously, all funds and activities were centralized, but the new structure has a staff um brella organization. The PPI's Executive Board will establish policy and coordinate its activities. A unique feature of the new organization is the potential to establish market divisions which will be responsible for the marketing and technical activities needed to increase the use of plastic pipe in that partic ular market. To date six divisions have organized: Plumbing Products. Gas. Sewer, Irrigation, Flexible Small Diameter, and Flexible Large Diameter. The members of the new Executive Board plan a vigorous program to re-establish the prominance which PPI once held. Each division is in the process of defining its goals and objectives, and PPI's, activities and personnel per formances will be measured against the objectives. Profile Extruders Division In the future, the Profile Extruders Division plans to develop standards and guidelines on tolerances and trade practices in terms of size control. It will cooperate with state and local authorities in the development of suitable environmental and workplace standards. It is projected that the membership of this Division will increase as a result of stepped-up activity and im proved conference programs and that the Window and Sliding Door Committee will continue to grow with the possibility of becoming a separate operating unit * SPI-22156 Reinforced Plastics/Composites institute The Reinforced Plastics/Composites Institute has defined a number of goals for the next few years. The In stitute will accelerate RP Committee activities to cor respond with new and changing markets. It further plans to provide mdustrv-wide recommended work practices as fiber glass fabrication becomes a regulated industry. Specialized services will be developed for diverging sec tions. e g., captive press molding, open custom pro cesses, pipe manufacture. The capability for increasing international activities will also be developed. Over the past vear, the RP'CI has presided over ex hibit and publication innovations at the 32nd Annual Conference m February and initiated health studies and work practices in preparation for the OSHA standard. The Rigid Plastic Containers Division During the next five years, producers of rigid plas tic containers should begin efforts to develop a better understanding with packagers of the versatility of thermoformed and iniection molded containers and should see increased use of these packages for a variety of products. During the past year the Rigid Plastic Container Division has developed a Standard Practices Manual. Vinyl Dispersion Division In the past vear the final report on Vinyl Powders and Coatings was submitted, effectively establishing vinyl powders and coatings as part of this Division Vinyl Siding Products Division The Vinyl Siding Products Division will continue to grow as new members join the fold and as all members continue to realize the benefits of attacking industry wide problems as a group vitally interested in their solu tion. Included among these problems will be fire safety, insulation systems, the introduction of metric measure ments, and new specifications for new products. Some of the Division's goals are to achieve absolute leadership within the prefinished siding indus try, to increase sales by 20 percent per year over the next five years, and to conduct intensive promotional programs in order to accomplish the foregoing. COMMITTEES Committee on Distribution The Committee on Distribution's main goal is to ex pand the membership of the Committee to include better representation of liquid resin suppliers (it cur rently is composed mainly of resin pellet suppliers). Further, the Committee intends to educate the membership in the use of the computer in distribution, to inform the members of 5PI on matters relating to con version to the metric system and to hazardous materials 10 regulations, as issued, and to continue the study or '.arious modes of transportation --marine, railroad, bulk truck, and common carriage truck. Committee on Resin Stotistics (CRS) The Committee on Resin Statistics has a number or goals set down. They include studyng and developing an effective svstem of converting the resin statistical program to the metric svstem. beginning work on the development of a proposed worldwide resin statistical program; inaugurating an annual five year sales fore casting program Coordinating Committee on Consumer Safety The Coordinating Committee on Consumer Safetv has had an active and successful vear At the National Fire Protection Association (NFPA) Annual Meeting the Plastics Information Center was again operated for three nights, with an estimated 1000 visiting. Also at the NFPA Meeting, a move to restrict the use of PVC con duits in exposed applications was defeated through the coordinated action of this committee and the PVC Fire Safety Committee Financial Management Committee The Financial Management Committee plans to continue to develop and improve all financial and com pensation surveys and to complete and successfully in troduce the Financial Management Manual for Plastics Processors. Food, Drug, and Cosmetic Packaging Materials Committee Coals of this Service Committee for the next five years should continue to be focused on developing, m cooperation with the U S. Food and Drug Administra tion. expanded and improved regulations covering plas tic materials for the packaging of foods, drugs, and cosmetics. A proposed generic standard for high density poly ethylene drug packaging was established m the past year, and a new meeting format--to include an educa tional seminar --was initiated. International Committee The International Committee has specific goals for the next few years. The Committee is scheduled to inau gurate a videotape Export Promotional Program in 1978, and is to start effectively organizing International as pects of NPE/79. There are , further, the long range goals of organizing a Trade Mission to the U.S.S R. and Eastern European countries and starting development of plans for a Trade Mission to the Peoples Republic of China. In the past year, the International Committee has completely reorganized and revitalized the Committee, including revised By-laws, significantly enlarged mem bership, and improved meeting attendance SPI-22157 Plastic Beverage Container Group These producers of beverage bottles and barrier resins plan to establish full governmental and public acceptance of plastic bottles for carbonated beverages and beer, on both the federal and state level, through education about the favorable environmental impact of these plastic containers Whenever this is accomplished, the Croup's objective will be met and thev will disband Safety and Loss Prevention Committee The Safety and Loss Prevention Committee re ported the results of the current tire tests conducted at the Factory Mutual Research Center at the Sixth Annual Combustibility Symposium and at the SFPA Confer ence. It is felt that four to six further tests are required before a satisfactory standard can be written for the storage of plastic m warehouses. Traffic Committee The Traffic Committee has established a number of goals. The first is to minimize transportation costs con sistent with sound business practices and technological developments The second is to improve and promote the status of the plastics industry with governmental transporta tion agencies and carrier organizations. The Committee has had a year full of accomplish ments. It has participated in over 30 proceedings before various regulatory agencies and freight rate-making bureau, securing appreciable changes. SPECIAL PURPOSE GROUPS Appliance Council The Appliance Council plans to conduct an Appli ance Awards program with the emphasis on develop ments involving plastics in appliances resulting in energy conservation, This Council will continue to function as a clearing house for information of mutual interest and as a moni toring agent to alert members to threatening legislative and regulatory activity. Housewares Manufacturers Group The Housewares Manufacturers Croup will moni tor and suggest action on key issues including supply of raw materials, state and federal regulations which could limit the sale of members' products, and product liabil ity It will also continue to be represented at the Coordi nating Committee of Consumer Safety meeting, to hold periodic meetings in conjunction with the Housewares Show, and to increase membership participation National Plastics Exposition and Conference The NPE committee has already begun planning for the next show The dates are )une IB to 22, 1979. McCormick Place. Chicago The Committee plans to top NPE.76 m size by increasing the exhibit space bv 30.000 to 40.000 square feet over the nPE/76 total of 291 000 square feet. Other than increasing size and attendance, the scope of the 79 Exhibition will be broadened through greater participation from material suppliers and pro cessor members Plostic Drum Institute The Plastic Drum Institute now represents every U S manufacturer of the 55-gallon all plastic drum Division obiectives include more effective liaison with such organizations as the American Petroleum In stitute, the Manufacturing Chemists Association, the Military Services, the General Services Administration, as well as the National Freight Classification Boards Plastics in Construction Council The Plastics in Construction Council has three major goals: provide a code recommendation or standard for each major plastic building product not al ready codified, implement the new SPI Fire Safety Policy, and as a result, enhance the credibility of the in dustry with code and public safety officials. If two new Federal agencies, the National Institute of Building Sciences and the National Commission on Fire Prevention and Control, supplant model building codes, the Council's programs may change significantly Plastic Packaging Strategy Group Newly formed in 1977 as a support group for the SPI Public Affairs Committee, the goal of the Plastic Packaging Strategy Croup is and will continue to be de fending against concentrated attacks which threaten to have a major impact on the consumers' freedom of packaging choice and the free market opportunity for all packaging forms to compete. Polystyrene Safety Group The Polystyrene Safety Croup, in addition to its ongoing goals of publishing know-how as it becomes available, developing guidelines wherever possible, and using data to seek modification of regulatory action when necessary, intends to continue to generate tech nical data that is or may be needed in response to regu latory actions or public emotion. It also plans to com plete data on the combustion issue within two years and to complete data on the health and environmental aspects of use and disposal of polystyrene within four years. ti SPI-22158 Financial Statements Balance Sheets May 31,1977 and 1976 ASSETS Cash in checking account and on hand. Time savings deposits . .. .................... . .. Short-term investments, at cost(which approximates market) Receivables: Membership dues, less allowance for doubtful accounts. 1977, SI 8.338; 1976, $15,000 ........................... Other Prepaid expenses and other assets................................................. Deferred charges -- 1976 National Plastics Exposition . Fixed assets (note 2): Furniture and equipment Leasehold improvements.............................. Less accumulated depreciation and amortization .......... Total assets . ............... .......................................... 1977 $ 3,999 1,047,857 2,594,033 1976 (restated) (note 2) $ 2,600 302,503 2,550,000 2.449 40.789 12.445 -- 147 39.285 11,523 358.838 114,115 72.440 186,555 36,560 149,995 $ 3.851,567 105,855 72,440 178,295 20,229 158,066 $ 3,422.962 LIABILITIES AND FUND BALANCES Liabilities: Cash overdraft............................................................................... Accounts payable and accrued expenses................................ Unearned membership dues....................................................... Deferred revenue -- 1976 National Plastics Exposition .... Deferred revenue -- other........................................................... Total liabilities............................................................................. Fund balances: General fund: Unappropriated........................................................................... Appropriated (note 7)................................................................. Special projects funds................................................................... Total fund balances................................................................... Total liabilities and fund balances........................................ S 26,107 $ 49,323 577,084 439,937 33,099 12,182 -- 613,956 -- 7,852 636,290 1,123,250 286,632 1,702,528 1,989.160 1,226,117 3,215,277 $ 3,851.567 134,028 1,480.809 1,614,837 684.675 2,299,712 $ 3,422,962 See accompanying notes to financial statements. SPI-22159 Statements of Revenues and Expenses Yeora ended May 01. 1977 and 1976 Revenues Membership dues Interest Sales of literature Special projects Other 1977 1976 (note 21 $3,334,083 194,551 64,739 2,405,161 23.287 6.021,821 $3,486,148 1 76,555 42,302 2,278,066 2.364 5,985 435 Expenses. Direct: Membership services: Legal and consulting................... . Communications (public relations)..................................... Administrative....................................... ...................... Membership promotion .................................. Directory ......................... Special projects --research, development, legislative. public relations ................................ Service operating units ........................................................... Divisions and groups ............................................... Regional offices . . ...................................................... Public affairs committee ................................................. Chemical Industry Trade Advisor. . . . ............... Plastics Education Foundation................................................. Indirect program, administrative and general: Salaries and employee benefits............................................... Office supplies and expenses.................................................... Rent................................................................................................ Auditing and computer services............................................... Provision for depreciation and amortization (note 2).......... Provision for doubtful accounts............................................... Other ........................................................................................... Less allocation of administrative expenses to National Plastics Expositions.............................................................. Excess (deficiency) of revenues over direct and indirect expenses............................................................................. Product liability expenses................................................................ 1976 National Plastics Exposition revenues, net of related expenses of $1,567,418................................................................ Excess of revenues over expenses........................... 430,868 80.282 98.645 33.156 19.186 481,554 83,624 72,415 25,756 8.897 2.405,161 154,058 71,426 131,342 1,406,719 3.000 8,475 2,278.066 124,607 64,647 116,834 1,232.434 2,000 11,250 1,164.591 215,746 103,417 57,289 19,340 9,677 39,311 6,451,689 1,059,272 213.990 97.121 49,701 13.911 4,477 26,671 5,967,227 240,000 6,211,689 75,000 5,892,227 (189.868) (11,405) 575,596 $ 374,323 $ 93,208 -- _ 93,208 See accompanying notes to financial statements. 13 SPI-22160 Statements of Changes in Fund Balances Years ended May 31.1977 and 1976 1977 1976 Ceneral funds Special projects funds Ceneral funds Special projects funds Balances at beginning of year (note 2) Excess of revenues over expenses (note 2) . Special projects funds additions Assessments Meetings and conferences Sales of literature Contributions m support of special programs ... Other................. Special projects funds transferred to general fund revenues and expended . . . Balances at end of year $1,614,837 S 684.875 51.521 629 $ 320.270 374.323 -- 93,208 -- -- 2.143,418 -- 2.147,436 -- 462,999 -- 399.111 -- 71,077 _ 45 827 -- 262,405 -- -- 6.504 -- 45.900 4.397 -- (2.405,161) -- (2.278.066) $1,989,160 $1,226,117 $1,614,837 $ 684.875 Notes to Financial Statements May 31. 1977 and 1976 1. Summary of Significant Accounting Policies The accompanying financial statements have been prepared on the accrual basis of accounting and include all material accounts receivable and payable, other liabilities and deferred charges The special projects funds represent receipts from certain members of the Society participating in selected industry projects. Such funds may only be utilized in accordance with the purposes established by the participants and are in contrast with general funds, over which the Board retains full control to use in achieving any of the Society's purposes. Special projects funds are reported as revenues and expenses when utilized for their intended purposes. Fixed assets are stated at cost, less accumulated depreciation and amortization, which are being provided for over the estimated useful lives of such assets on a straight-line basis. Other significant accounting policies are set forth in the financial statements and the following notes. 2. Adjustments to Fixed Assets Based upon a thorough review of detailed records in support of fixed assets, the Society has determined that it should have removed $135,455 of fixed assets, less accumulated deprecia tion of $65,576, from the accounts as of May 31,1975 or prior. Accordingly, the fixed assets and general fund balance have been reduced by $49. 878 as of May 31,1975 and depreciation ex pense for 1975-76 has been restated (reduced by $10,673) in the accompanying financial statements. 3. Retirement Plan The Society has a non-contributory trusteed retirement plan for all employees who meet age and length-of-service requirements. Costs of the plan are funded currently, and for 1977 and 1976 aggregated $110,250 and $96,400, respectively. There are no unfunded past service costs. At May 31,1977 and 1976, the assets of the fund exceeded the value of the participants' vested benefits. 4. Products Researdi Committee Funds Effective December 3.1974, the Society executed with the Federal Trade Commission a consent order which, among other things, required the establishment of a Products Research Committee for the purpose of conducting research into the uses and hazards of cellular plastics products. SPI-22161 The research is to be funded over a five-year period by various other respondents to the FTC proceeding. The Society is custodian of the Committee's funds and. at May 31, 1977 held SI.426.771 ($1,247,249 m 1976) in checking and savings accounts for use by the Committee Such funds are not included in the accompanying financial statements 5. Contingent Liabilities The Society has been named or advised that it will be named as codefendant in several law suits. These actions, m the nature of product liability suits relating primarily to the combust ibility of foam plastics, seek judgements for substantial damages. Counsel is of the opinion that the likelihood of unfavorable outcomes is remote. 6. Commitments The Society's lease commitments for office spaces are as follows: Year ending May 31 1978 1979 1980 1981 1982 1983-1985 Commitment $131,501 124,371 121,442 109,961 107,500 313,542 These amounts include the lease of the Society's executive office spaces at an annual rental, including charges for electricity, of $107,500 per year The lease expires in 1965; however, the Society has the option to terminate such lease as of April 30. I960 upon payment of an addi tional option fee of $140,000. Certain leases are subject to escalation provisions based on real estate taxes. 7. Appropriated General Fund Balances Appropriated general fund balances consist of Directors' Special Reserve funds for Public Affairs Committee Capital improvements Product liability Other 1977 $6,796 38,595 1,657,137 $1,702.528 1976 $ 78,500 13,687 - 1,388,622 $1,480,809 Peat. Marwick, Mitchell 8e Co. CERTIFSBD PUBLIC ACCOUNTANT! 349 PASS AVIKUt NEW YOKE. NSW YOU* 10033 The Board of Directors The Society of the Plastics Industry, Inc.: We haye examined the balance sheets of The Society of the Plastics Industry, Inc. as of May 31,1977 and 1976, and the related statements of revenues and expenses and of changes in fund balances for the years then ended. Our examinations were made in accord ance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. in our opinion, the aforementioned financial statements present fairly the financial position of The Society of the Plastics Industry. Inc. at May 31,1977 and 1976, and the results of its operations for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis. luly 12. 1977 is SPI-22162 Directors Section Directors Eastern Section HARRY USSERY Southeastern-Kusan. Inc Creenville. South Carolina Midwest Section FRITZ A. BACKSCHEtDER Recto Molded Products. Inc Cincinnati. Ohio New England Section GAGEOLCOTT Dow Chemical U S.A. Wellesley, Massachusetts Western Section ROBERT POET Silmar Division. Vistron Coro. Hawthorne. California ROBERT K. HALLIDAY* Wilson & Geo Meyer & Co. Los Angeles. California DMsion Chairman Cellular Plastics Division HERBERT NADEAU The Upjohn Company North Haven, Connecticut Custom Sheet Extruders Division LEO FUMING Alma Plastics Corp. Alma, Michigan M. L CHRISTENSEN* Atlas Plastics Corp. Cape Girardeau. Missouri Epoxy Resin Formulators Division LLOYD A. DIXON Hysol Division, Dexter Corp. Industry. California Expanded Po/ystyrene Division EVERETT OFTEDAHl Expanda-Foam. Inc. Antioch. Illinois Ffuoropofymers Division WILUAM J. HUBER Modern Industrial Plastics Division Dayton. Ohio SAULRICKUN* Dixon Industries Corp. Bristol. Rhode Island Term ttgired in 1977 16 Foam Cup and Container Division mark h. ounnell Mars Cup Company Huntington Station. New York Foam Tray and Carton Division ROBERT WOOD Mobil Chemical Co. Macedon. New York Furniture Division HARLEY 0. HENRY Styrex Industries High Point. North Carolina Machinery Division WILLIAM MERICU Cincinnati Milacron Co. Cincinnati, Ohio Mold Makers Division JAMES McWILLIAM Ivanhoe Tool and Die Co. Thompson, Connecticut Mo/ders Management Division DANIEL HIDDING Dana Molded Products, Inc Arlington Heights. Illinois RICHARD MdCIBBEN* Modem Plastic Co. Compton, California Organic Peroxide Producers Safety Division DONNELL A. BALLARD Oxirane Corp Houston, Texas Piastre Bottle Institute Division WILUAM J. GRAHAM Owens-Illinois. Inc. Toledo. Ohio DONALD POLLOCK* Consupak, Inc. Morristown, New jersey Plastic Pipe Institute Division GERARD R. QUINN U-BrandCorpAshland, Ohio CHARLES DOUGLAS* Ceianese Piping Systems Hilliard, Ohio Profile Extruders Division ADOLPHE}. DeMATTEO Thielex Plastics Corp. Piscataway, New Jersey WILLIAM F. MILLER, JR.* Johnson Plastics Corp. Middlefield. Ohio Reinforced P>astics,Composites Institute Division ROBERT M. VOGELEI Chevrolet Div.. Ceneral Motors Corp Warren, Michigan Rigid Plastic Container Division PAUL TROW Dart Industries Ludlow. Massachusetts Vinyl Dispersions Division ernest e. McClellan Plast-O-Menc Waukesha. Wisconsin FRANK JONES* Pyramid Plastics Hope, Arkansas Vinyl Siding Products Division WILUAM P. HAMMOND GAF Corp. New York, New York KENNETH R. VAUESKEY* Mastic Corp. South Bend, Indiana Directors at Large June 1,1974 to May 31.1977 JACK M. FLYNN Dow Chemical U S A. Midland. Michigan IVAR A. LUNOGAARD E. 1. du Pont de Nemours & Co.. Inc. Wilmington, Delaware ROBERT 5. MORRISON Molded Fiber Glass Companies Ashtabula, Ohio CHARLES E. O'CONNELL Gulf Oil Chemicals Co. Houston. Texas CLYDE RUSHING Peco Manufacturing Co Portland, Oregon KENNETH SCHOEN The Valspar Corp. Milwaukee. Wisconsin /one 1,1975 to May 31.1978 T. E. 8RANSCUM Gott Manufacturing Co Winfield. Kansas ROBERT GERDES Plastic Moldings Corp. Cincinnati. Ohio CHARUS GRANT Hercules, Inc. Wilmington. Delaware JAMES S. HEARONS Owens-Corning Fiberglas Corp Toledo, Ohio JEAN F. MALONE B F Coodnch Chemical Co Cleveland. Ohio EDWARD G.SLATCHER Container Corporation of America Wilmington, Delaware June l 7976 to May 31. 7979 RICHARD A. 8RADBURY PMS Consolidated of California Cardena. California WALTER BUSSART Eastman Chemical Products. Inc. Kingsport, Tennessee F. REED ESTA8ROOK, JR. Brook Molding Corp. Norwood, Massachusetts JACKG. FULLER, JR. Polymer Machinery Corp Berlin, Connecticut GEORGE KAULL Premix. Inc. North Kingsville. Ohio RALPH M. WINTERS Amoco Chemicals Corp. Chicago. Illinois lune 1.1977 to May 31,1980 RIPLEY GAGE Gage industries Lake Oswego. Oregon RICHARD GOOORUM Ethyl Corporations, Vis-Queen Division Baton Rouge, Louisiana IVAR A. LUNDGAARO E. I. du Pont de Nemours & Co.. Inc. Wilmington, Delaware ^ KENNETH SCHOEN Norco Plastics The Valspar Corp. Milwaukee, Wisconsin WILUAM SESSIONS American Can Co. Greenwich, Connecticut R. PETER TOOHY Shell Chemical Co. Houston, Texas SPI-22163 t* Staff Thomas ). McGrath CENERAL MANACER G. C. BARNES Public Relations Manager JULIETTE LANG CAHN Staff Director Appliance Council Committee on Distribution Furniture Division Housewares Manufacturers Croup Polystyrene Safety Croup (PAC) Profile Extruders Division Traffic Committee Vinyl Siding Products Division JEROME P. CARROU Director of Safety Coordinating Committee on ^Consumer Safety ' Resin Formulators Division ^Wrapped Palletized `^cts Committee t "Je Peroxide Producers fety Division Wrap ad-hoc ittee icy Heating ittee & Loss Prevention ijttee (PAC ions Division i RALPH L HARDING, JR. PRESIDENT |OHN R. LAWRENCE Technical Director Acrylonitrile Copolymers Product Group ad hoc Combustibility Safety Committee ad hoc PET Safety Committee PAC Technical Committee Plastics Resource Recovery & Conservation Committee Polyethylene Refuse Bag Committee PVC Safety Committee ROBERT MALLIA Controller WILLIAM A. DIRZULAITIS Director of Administrative Services National Plastics Exposition ALBERTJ. EVANS Director of Statistics Committee on Resin Statistics Financial Management Committee International Committee LAURA JONES Administrative Assistant to the President, Secretary to the Board HOWARD KIBBEL Marketing Analyst (to be named) PPI Executive Director Plastics Pipe Institute A.B. HUNTER Southern Field Representative STAN MRUK Technical Director JOHN MALLOY Director of Packaging Services Foam Cup & Container Division Foam Tray & Carton Division Food, Drug & Cosmetic Packaging Materials Committee Plastic Beverage Container Croup Plastic Bottle Institute Plastic Jerry-Can Committee Plastic Packaging Strategy Croup Rigid Plastic Container Division JOSEPH S. McDERMOTT Manager Plastics in Construction Council Reinforced Plastics/Composites Institute MAUREEN MlGDAlfN Administrative Assistant to the Ceneral Manager BERT S. MONTELL Staff Director Button Group Fluropolymers Division Machinery Division New England Section Plastic Drum Institute Sheet Producers Management Division Structural Foam Division Urethane Division Vinyl Film Croup E. S. NUSPUGER Director of Public Affairs Public Attain Committee FRANK REINHART ANTHONY L SCARANO Midwest Field Representative C. RICHARD TITUS Manager, Government Relations Washington, D.C. Office PAT TONER Assistant Technical Director |OHN WEIGLY Membership Director VIVIAN WITTMAN Office Manager Eastern Section 1575 Route 23 Butler, New Jersey 07405 201/838-2222 RICHARD FROCK Eastern Regional Manager Midwest Section 3150 Des Plaines Avenue Des Plaines, Illinois 60018 312/297-6150 ROBERT W. SHERMAN Midwest Section Manager Midwest Section Mold Makers Division Molders Division Processors Committee MARGARET SHALLCROSS Assistant Midwest Section Manager Expanded Polystyrene Divisior Melamine Dinnerware Croup Western Section Saddleback Square Suite 124 12440 Firestone Boulevard Norwalk, California 90650 213/064-2793 LLOYD N. DARDEN Western Section Manager HERB OSBORNE Assistant Western Manager Legal Counsel KEUER & HECKMAN 115017th Street. N W. Washington, D.C. 20036 JEROME H. HECKMAN (SPI Ceneral Counsel) ROBERT R.T1ERNAN WAYNE V. BLACK MARTIN W. BERCOVICI DR. DANIELS. DIXLER (Technical Consultant) JOHN 8. DUBECK PETER M. NEMKOV JOSEPH E. HADLEY SPI-22164 THL SOCIfc I > OF- F M L HI All TICS P.Dll'i I H V \\> t . i .1 it n S> ( r: r r i J.: Ml s. i 111 n 1111 r i I) i; or SPI-22165 sfi 19/8 Annual Report Plastics: The Emerging Giant 0? ' f Table of Contents Cha'orar $ Let:er 1 SPr Public Af`a rs Committee 2 Leg.siative Regu'atory Activities 2 PAC Technical Activities 2 Comoustio.nty 2 Occupational Safety and Health 3 Toxicity 3 Resource Recovery Material Conservation 3 Information Programs 3 Washington Activities 4 NPE. 79 4 Operating Units 5 Sections 5 Divisions 5 Committees 9 Special Purpose Groups 10 Financial Statements 11 Directors and Officers 15-16 Staff inside Back Cover Officers 1977-1978 Chairman STANFORD H. SHAW Shaw Piastres Com Berkeley Heignts New Jersey Vice Chairman IVER J. FREEMAN Package Machinery Co. East longmeadow. Massachusetts Secretary LaVERN A. NIEDFELDT Technical Piastres Com Santa Cruz. California The Cover The Plastics industry, characterized as `The Emerg ing Giant." began to make its voice heard throughout the land during this past year. SPI served as the focus point through which a powerful, unified Plas tics Industry raised its voice. As the Industry has grown, SPl has emerged as a strong Society through its involvement m pudlic affairs, its diversity, and a strong leadership {Cover ohoto courtesy ot ACF Shmpers Car i_.ne Division ) Treasurer FRED C. SUTRO, JR. USS Chemicals P'ltsourgn. Pennsylvania Immediate Past Chairman C. REX SCOTT Phniips Chemicals Co Houston, Te*as SPI-22167 891-22'ldS LiBUJJ'BgO MVHS H OdOdNVlS spueq poo6 ui si Ajaoos moA 'sdeqs punos ui 6uiaq oi uoiiippe ui Aji|iqisuodsj /vsau siqi joj pajed -0jp A|inj pub Ajjsnpui jno ui paioadsaj AnesjaAtun puB uwou>i A|0piv. si 9h uBiuaajj jaA| 'puauj poo6 Auj 03 j0ao diqsueujjieqo aqi ujnj 01 pa;q6tiap we 1 'AuBuy sanssi leoquo ajnmj aoej oi saojnosa; 6uojis a^eq mou 8m juapijuoo ujb i jjejs aiqe Aj$a e qjiv. pue diqsjapBai siq uJ!AA ucujsa^ods leoouud s/ujsnpui aqi sb paBjawa seq aq auji] IBqj 6uijhq jaoijjo jjbis jaiqd s Ajaoos Ml SB JBaA qjue) Siq paiaidwoo Buipjen qdiey jeaA ised siqi fiuunQ `UOOS xay pus ipiajpaify ,.pay,, ojing pajj 'ueuuaajg j9a| ui sjaoijjo jo dnojB Buojis e 6uiAeq ui aiBunjjoj Aubio ease sew. i apniijej6 Aw pue jnoA paujea aABq Aaqi pue jieqaq jnoA uo awn aiqeniBA jiaqi jo lunowe aiq -Ejapisuoo e jaajuniOA Aaqj_ naw os Ajaoos aqi paAjas 3Ae,, oqv sjoiobjiq aqi jo ne oj s^usq; ieioads A^ uoiiBjado Buiu -ur.j uiooujs pue leuoissejojd e si \\ jjbis s Aieoog qi Due sjoioajio jo pjboq jnoA Aq papiAOJd uaaq seq ieqi oaj 8u; *a -`.sea apeuu uaaq seu aioj Ajaj sjeaA 0am ised as8_. ue^^iBqQ jnoA se aAOs 01 aw joj ajnseaid e pue a5a. oc e uaaq seq Aubsj 31 Ajaoos aqi ui uouedoii jbo Au- uuoq pa.ijuaq pue paAolua oaeu Aiuieueo 1 sujbjB -ojd jno j'eiuie^ 0; leiuassa si saAaiiaq pjeog jnoA uDiq/v aujoou iBiOi aqi sn ajnsse ueo ujaqi 30 auou jb; snqi jnc sn 01 paisa55ns uaaq babu seAiieujane Auey\i sjoioois sane s Ajaoos aqi Apms 01 Bumuuuco 0S|B s p-.eoc jnoA sajnssajd AjBia6pnq asaq; ajOssQ Aiaso.O uoneniis sol jDHuOlu 01 anuuuoo him pjBOg mcA sjeaA ajnin^ u aji aqi ptoq 01 unojjip 8jow pue sjOjj 80 mV ji ucue ju u6'U BuinuijuOD jo aoe^ aqi ui S8 l.'.'lOE wa_ jO. jC saOueOuilUCO jGj UO SiaOjO Ou qliv GOD 08? rS is isBpno paojeieq e aojo; 01 sasuaaxe o 5_ .so e mo p,eog jnoA jeaA ibosi, 6m8u6. aqi joy $ gc.g a.jo sew ss-masa, 30 asn jno 000 28rS .I D81Sv- Sn__ 10l 825S )C oDuB-JEa. aiGEOAB) 19- 2 v Dus c. see a,av sv i^a^aBB^Biu asuaoxa poop jc ssnao-ao p-e ia5pnc jac oapaaoxe ajjoou. asneoag su?.::-: d. od^c rc ueij bl- 0; 00G'S8t-S Aq ssajss . m; - v Dp v s o o: paioupnc /,I 'Ejib j c av '9u6. :A?.', - -- w.; cr - ''9' 9-. -= 896 66: S SE-V iuO lisocxg me - e jo 1B\ 8-.. a ooqi 8-uoou jS1-' sas>jadx& SS80 *.8 jno 6. 1 EdS:, u, 8.^;Oj jn c ueui 8j0'-- . pu ag s v^S9 g a''E- a,v PuCjIS Aj9 S uO-1 :SDG ,E OuB- me uo _ :.a 0 -j 0-, Jr,0 Aq q 00)5^0 pjn A m, ao 3 p89 _ ;: P ^ . ,^ 3 c * 0 E E'-B- 03,8 9.V A]0.OOS a-i moos Q . 1 ^ 9 3 0. s *4 w' y E S'-Eu 8v s;obibo uc a, uV. Aneiiueisqns dn sbm s6uiiaaLu jno jo Aueu- ie aouep -uaue 'isajaju' jaSuojis pue suoijipuoq ssauisnq aiqe -joabj qioq Buijoauay ssajBojd aiqejapisuoo pawoqs sjiun Buiiejado sdouba s Aiaoos aqi 30 sujejBojd IBuoijipBJi jo JB|n6aj aq) -paz.oiiqno ssai qBnounv Aouod jaoueo lEjapai e BuidoiaAap u: paAiOAui Auoajip isouj sa:o -uaBe aqi qjiM Aneoadsa 'mojB oi panuiiuco seq luau, -aAlOAui uoiBuiqseM jno hbmbh ui uaAa pue iseoo oj ISBOp luoj) saieis aq) ui pue uoiBuiqseM u: paA|OAui aje e ajaqM 'sjib^v ui uaaq asmoo 30 'babu saijiAii -oe s Aiaioos aq) jo 6ui6ubj-jb) pue aiqism isouj auj. saAfasujaqi joi >feads 'jjoaay ienuuv siui u1 paquosap siuaiuaAaiqoB pue sauiAiioe s jbsA ised siqj. 'Stounoo pue `saauiujLuoo 'sdnoj5 suois -iAip `suoiioas snoueA jno jo suiBj6ojd aqi u6nojqi 'Aia ioos jno 30 luamdAiOAui qidap pue Ajisjsaip aui az^u -Booaj 01 Ajisnpui siqi ui paisajaiui uoAjaAa jO) iubuoo -uji si 11 jaBuojjs 6ui8B pue--ajojac jaAa ueui Aepo; ja6uojjs si Ajaoos jno* 'Ajissaosu jc pue unsaj b s^ jaqiaBoi 6ui>ijom jo aoueuoduji aqi uaas 8ABq sjeq -Luauj jo spuesnoqi AnBjam 'saBuaiieqq aqi 01 asuocs -aj ui 'Aneuy ujaiqojd aqi jaAajaqM pue jaAaieqM diqsjapeai aAiioejja pue pauiujjaiac jo aouajaujs aq] uaaq seq uoseaj puooas aqi ajnjnj iqBuq jnc asoi oj paiuBMaMSsaiun aooqo ou peu e^. sasuoass. aAiioaiioo oiu: sn paqjoj sanssi aqi jc ajnjeu pue az:s Aj9a aqi 'jsjy uoiuido Auj ui Ajaoos ui 1 ssaoons aq] 01 sjoinqujucd leooqud aqi uaac aABq sjoioej sa;qi uoaeoossB Aji -snpui aAijoajja pue 6jDjis A>sa b dOiSAap c; peu sabu sw soi)SBid jo sujbu poo aqi sioujojo puB oaicjd oi japjo ui ieqi pa2iuBooej aAeq a/;A ueA8jo Aiaieujii.n him pue adoo 1 haa Ajjsnpu souseio aqi uueoojd aq; iBqv. jaUBo-ou ieqi jaiiaq aui ejninjaqiu qiiej pajsuiujipun jno jo; uosbsj jaqioue Sr a^aq; aAanaq AiS^aouis 1 Aujcuooe jno jo sieuaiBu. iBiiuassa am ajou- pue ajou- auuooaq -i'^ son -sBid ieqi uomu5coaj s ajaqi 'LuniuaujoiL pue leauaiod Aiuc iou S' ajaqi jaASMOh sueio uoisueaxa jno pue qjsiujiiao jno uaauep pav La* iqfoiiu sujaocjo asaq; jo ssausnouas aqi saoueisumojo jaqic- /apuf, Ajoixoi jc 'juau-uDjiAua Ai'ioei icnpoja A>eus Ajmoiisnaujco jc seaje aqi ui sn Oieq iou op ieqi su.aocjo ae-ji 8A'i e6au iBioaos aiuos aABq--s>ioo;spsa, ujna-.ojiac ujOj. A.jsncu leoiu-auC aqi Aq pao"poo -- sdiise.y qiMOj jno jjiv aoed ias> ubji joiu sabu Ajisnpu jhc up sejns -sajc iBujaixa aui ieM; iob^ aq] ei osap is s>ao -us^uo s -uBOxe pue lus.lUi]oc siqi ic m--' uOiSuBCxa ,aqim. c: 6u.)no;jiuOO SJB Aj8ui-0Bu- P0'-OjO-j due SuiSe. PoACjO-- o S3 ]ijO),ooco SOOuJ8_ jossaoco mo ia>wB_ >,8-8 u .(vo.; pu .oe:Ojq 80 0. ^CSE8. Aj8'>8 S'.8,, 8v 8."]'. 9,,; 0, ^ >001 0 IS _ ICC U-E ; SjOSB8. 3 --ES8,,. c509030^0 mvq.io s.nm, js e mo e-cwc'S .* isro _o Au~ lOw psseo s.^. mooe o.;s._:o: _e me doc 8-- lO 5u IS^A 'Pn^-ir e JE3- S'U. jp. &_8_, 8,8 ooooi A.jgno.jEC E SEA' UBir 5^io_3 8..-- SO 1SB,C. J0H81 S.UBLUJIBqQ SPI Public Affairs Committee Legislative/Regulatory Activities As - cast. PAC has coKed at eve^y ciece of ecsiatcn rmoGjced at the Federal level, n toe 50 states arc ^P-ertcP'co pAC has analyzed each `or ts cc:en: a. moact cn t^e oiastics mcustry. monitored the C';t cat ci'is tnrc-gncut rneir history, and reoorted cn me oert;nent legislation monthly, through the PAC Legisla tive Bui etm :n `iscal year 1977-1978 perhaps 300 000 proposed cr mfoduced Oil's were reviewed. Whereve' :eg siation that would seem to affect our ndustny partic-iany was being seriously considered. PAC took the ^ecessary action. PAC has engaged local counsel n several state capitals. Staff has submitted oral or written test-mony and/or supplied pertinent tecnnicai information to scores of 'egisiative and reg ulatory hearings Upon occasion PAC has taken advan tage cf the listing of member companies that have volunteered support for Government Relations. PAC has called upon SPi-mitiated. independent Plastics in dustry Public Affairs groups which now exist m five states PAC has also established careful liaison with other industries and other organizations which have similar interests m legislative proposals. Success m all these efforts would be impossible without wholehearted member company participation, which PAC has had. SPI member companies nave come to realize that they have a stake >n any legislative or regulatory activity that would adversely affect the plastics industry, even though they may have little direct interest m the specific material or products under ques tion They now realize that an attack on any segment of the plastics industry is an attack on the entire industry. Generally, the end results in 1977-1978 were excel* lent The successful conclusion of a PAC lawsuit (with several member companies and interested non members) against the State of Minnesota did result in a Court decision that declared that State's ban on non- returnable plastic milk containers unconstitutional, and therefore invalid. PAC was unable to secure legislation which would have repealed the ban on plastic bever age containers in Hawaii but is continuing its efforts. The industry has not been seriously damaged during this period in spite of an equally record number of threats. For the future PAC sees several unmistakable trends. PAC is convinced that more legislation and more ref erenda to place mandatory deposits on beverage con tainers will be forthcoming. A new trend is noted in many states to require special packaging and/or label ling on plastic insulation. PAC sees an encouraging interest in the states toward legislation that would pro vide some sort of relief on product liability. PAC further sees--at the state level--a "rush to regulation" trend. More state regulatory agencies are being created, sometimes with inadequate knowledge of what they are required to regulate. In this regard, technical informa tion supplied oy member companies has been invalu able. and more will be necessary in the future. PAC Technical Activities The technical activTes of the Pji>c Affairs Cc^m : tee a'e coordinated and sucervised oy Mr P<=ter 'rcorv Chairman of the PAC Tschr cai Cc^n-it^ee anp SP1 Technical Director, _onn p Lawrence Th'cugn tre PAC's issue Coordinators or' Comcust'C.i ty Resource Recovery. Toxicity. Energy and Feec Stocks anc 3roduct Lability, liaison is provided to ail SP1 programs Specie research protects relating to the comcus;icn of plastics, resource recovery ana conservation safety ana oss prevention, and toxicity are oeve'oped ana monitored resoectiveiy by the Coordinating Committee on Consumers Safety (CCCS). the P'astics Resource Recovery and Conservation Committee (PRR&CC) me Committee on Occupational Safety and Health, and the Toxicity Committee. Some of the specific achievements of these programs are cited m this report. The overall obiective of the PAC's technical activities is to provide the technical information required to educate and con trol tnose external influences that might otherwise re strict the market opportunities for plastics Combustibility The SPt Fire Safety Policy approved by the Board of Directors m 1977 was fully reviewed by all SPI operating divisions during the year with respect to the need to conduct hazard analyses and develop soecific use recommendations. It was found that a number of divi sions have already conducted such analyses and other divisions are planning to become involved in similar activities. The responsibility of monitoring and en couraging work along these lines has been delegated to the Coordinating Committee on Consumer Safety. Firefighters snouid always use face masks SPI-22169 'C.'edrci try at me Crossroads' was tre theme of *^e 7th Annual u,cmbLstiDinty Symposium conducted by me P'jD; c Affairs Committees t'PAC'i Cccrc raring Committee on Consumer Safety cCCCS) on Apm 13-14 n 3ostor T''e meeting brought together cver .50 cas hes rGust'v gcve'-ment. ang `ire community 'ecre- semames *o a<am:re suen .mgertant issues as (|re "azam ys.s o asnes comcust'b.iity technology, r sk .s oene'es t-e Vat era u're Oats System ife safety svstsms me 'e at cms-'C Qt` re tests tc rea' Ve s-tua- cns. a^d product iac iity Another significant achievement r the area of Ve tec-nccgy A/as tne comciet on of a two year project sponsored oy me SP; and the National F're Prevervan and Control Administ'atcn ;NFPCA) at the Harvard School cf P'jDuc Health mvoivmg the ana'ysis of gas samples taken by firemen durng over 200 actual fires A final report on this study will Oe issued before the end of '978 Out results aiready show conclusively that `iref-gnters should always use respiratory protect cn SPl's support of the National Bureau of Standards Center `or F're Research continued with Research As sociates on !oan from the plastics industry contributing to programs involving the development of tests for ease of gnition fiame spread and burning rate, and rate of neat release Work was -nmated by the CCCS to deter- mme the relevance of an NBS combustion toxicity pro tocol to real fire situations The CCCS is changing the emohasis n its programs so as to complement other national programs directed toward the reduction of the frequency and severity of the nation s fire osses. Occupational Safety and Health The Warehouse Fire Test Program sponsored by SPl over the last several years was completed and reported on tc me National Fire Protection Association which has the resoorsibitity for establishing standards for the storage of elastics U is expected the information from this testing program will enable the establishment of much more realistic and reasonable storage standards. A survey conducted Oy the Committee on Occupa tional Safety and Health (COSH) has identified a strong interest by processing members of SPt in an industrial safety training program for plastics processing plants. A major effort to follow up on this interest and develop such a program has been initiated by COSH. Toxicity For several years major programs have been earned out by various self funded special interest groups within SPl in resoonse to regulatory problems relating to the toxicity of materials such as vinyl chloride, acrylonitrile, and most recentiy styrene Meanwhile, the PAC's Toxi cology Committee has been reviewing the most up-todate information on all the principal materials used by the plastics industry to identify areas where information is lacking or where the possibility of regulatory action may exist. The review of toxicology information on all of the major volume substances used in the plastics industry was completed during the year and. m general, adequate data has been developed to assure the de- veiooment of safe ^se procedures m several cases more rformat on s ce ng scucm cr the resu'ts of tests cur-entiy underway me awaited to fuT/ character ze tne toxicty o` ~a:e'"as used by the piashcs ndusny m order to maxe avaiiade previously -ncLtvs'fec studies by various memcer companies. SPl has estacisned a toxicccgy data He fer use cy a i SP' '-e'-'ce's A major 'escor.se to 0Si--1 As crcccsec ge^e* o car. enogen reguiahcn was maae cy 5P' A-m edemas.s O'aced cn tre reed for an ,act,c!" eve ' or p-cc-c: exemotion fer processing operations w~er9 exposure levels are suon that health nsxs oo'-ct e< st arc re cost of compliance activities ;s not justified Resource Recovery and Material Conservation The PAC's Plastics Resource Recovery arc Conser vation Committee has continued to monitor federal -eguiatory activities on solid waste and resource 'ecovery it has also developed position statements suemttea to ERA m opposition to the concept of a fecerai scud waste product charge to offset the cost of handimg waste disposal. A study of the contribution to the duality of ;ife made by selected plastics packaging products was com pleted and a final report will be oubiished shortly. information Programs Throughout its oast history PAC has had tc fecus its information program on reaction--quick anc sensible response to irresponsible charges made against the industry in the press. The necessity 'or this activity persists and our mechanism to respond remains m place. Now, however. PAC is tending toward a more anticipatory action. We fee) that if a large percentage of the thought leaders and the general public knew more about the essentiality of plastics to their current society and to the future, there would be fewer attacks upon us. Accordingly, PAC has begun to implement a total promotion program based upon the essentiality of plas tics and some of these elements are already operative. For example, PAC has expanded the Public Relations staff, developed a Speaker s Bureau, and written and produced several pertinent self-contained slide film presentations which can be used by anyone in the industry to address audiences from the size of a smgfe legislator through Garden Club and Rotary Club meet ings and larger audiences that may present a platform PAC has produced several pieces of literature addres sing the answers to the most common criticism of the industry, the history and importance of the industry, and more is being planned. A system for informing proces sors on how best to address representatives of the Dress and legislatures is available for use at plastics industry meetings. We are informing tne public througn the press of the contributions to the general wellbeing that have been made through the technical programs described previously. Plans for a stepped-up informational program to in clude an industry logo and television advertising will be considered by the Board during the coming fiscal year SPI-22170 Washington Activities Over tre oast year me SPi Washington Office con'rL=d to ~on:to' deve-cc-n'e''ts and to -epresent re castes -dostry cn Capitci Hni .n me Federal agen cies 3r^ r re Execute O'anch on a orcad spectrum of CuC m ss^es and Government 'egufanc's -igriic^'s r T'S /ear 3 activities -nc ude active car- hcraticr n 3 -vee -arge of ^egis.atve and -eguiatory et`orts "nese nc ude nvoivement n me areas of `eecstccK energy sucoiy. natural gas de'eguiatior crccuct Haoihty reform product charges and beverage container cepcsits. 'abor law reforrr. 'eguiation of inse rtion me American industrial Heaim Council's :AIHC) aiterratwes to the Occupational Safety anc Heaim Ad ministration's (GSHA) carcinogen policy. the Con sumer product Safety Committee s (CPSC) initiatives in the chronic hazards area, protection of the special needs of small business' implementation of the Toxic Substances Control Act (T$CA) and cancer policy, and procosais to reduce inflation and reorgamze govern ment. Major activity m the early months of the second ses sion of the 95th Congress focused on the long-awaited resolution of the proposed National Energy Plan and rescivement of the gas pricing stalemate. Of special interest to SPi memcers is language m the energy compromise which protects industrial process and ?eeds;cck -se's Horn unnecessary c'jr:a-i~eri: cr supc'ies oy mediate oipennes. 'n the ragu atc'y a-era me CPSC aaccteo guicennes :c estacusn oency and crccedu'e `or rassif'cation. evaiuat'on and 'eguianon of rvo'kpiace car- cnocens Aisc r me ad-"' rrstranve agencies. He was tes industry s actively 'ecesemed n re Enviror.menai Protection Agency 3 eifcrts `0 mc^e^ent re T3CA T~e Wasnmgtcn G'?,ce cc~; rues :c monitor EP^s Re source Ccnservatcn Committee acf-my n re area of procuct charges and ceverage container Geccsns The SPi nas piayec a premrent 'O e n me ro e""entation of RCPA. EPA -s <eot aware of cur p ashes cos ticn and reminded of the sensitivity of the ss-es n this area as well as the impact of plastics on me nat on 5 economy. To effective'y represent SPi memcers in Washington the Washington-based Federal Government Relations Committee was exoanded. Compnsed cf legislative and public affairs experts, the Committee >s organized to provide liaison with Government poncymakers The Committee assists m coordinating the development of strategies for the presentation of SPi positions to Con gress. As an arm of the SPI Public Affairs Committee. (PAC), the Federal Government Relations Committee functions as the chief instrument for the implementation of PAC legislative priorities and policies m Washington NPE/79 Among its broad spectrum of promotional and ser vice activities on behalf of the plastics industry, SPI's most spectacular effort is the National Plastics Exposi tion (NPE) conducted every three years. NPE/79 will be held June 18-22.1979 m Chicago's McCormick Place. NPE/79 is clearly slated to be the largest ever, with over 400 companies from all over the nation, as well as from Canada. Mexico. Europe, the Far East, and South America expected to participate. At the drawing this past Apni. 357 companies bid for exhibit space, repre senting a 20% increase over the 298 companies that made commitments for the last National Plastics Expo sition in 1976--a new record at that time. These exhibitors reserved 303,129 square feet of exhibit space, a 21% increase and another record when compared with the 251,000 square feet assigned at the space drawing for NPE/76. This also exceeds total space sold for NPE/76 of 291.000 square feet. The phenomenal growth of the National Plastics Exhibition wilt be reflected m the first-time use of a third floor (the Concourse Level) for NPE/79. which will add 44,000 square feet of exhibit space, in addition to many former exhibitors having pledged their companies to increased space compared with their previous show participation, 58 companies that did not exhibit in NPE/76 have declared themselves for NPE/79. An in teresting trend is noted m the resumed participation of a number of plastics resin producers. Show week will include the Plastics Hall 0* Fame Dinner and a National Plastics Conference with a s ate of nationally known authorities from the Plastics indus try. government, research, education, and manage ment, as well as from leading piastics-consummg mar kets. important events m the Plastics Industry and sig nificant influences from government and the market place will pe examined closely. While the attendance at this show is continuously growing (50,000 expected for NPE/ 79, compared with approximately 40.000 for the 1976 exhibit) statistics extracted from a post-1976 show survey shows a pur chasing influence of $17 billion dollars represented in the show audience--a real measure of success. James R GiOson. (center), vice presiOent. marketing, Van Dorn P'astic Machinery Company, ;s congratulated oy Ralph L Harping, jr 'or having won first draw for preferred exhiDii space at NPE. SPI-22171 Operating Units SECTIONS divisions Epoxy Resin Formulators Division The 7ecnnicai Committee com-ues ce tne cac^cone of me Ecc*v ~es r Fprm,,ia!0rs C S'Cn r"9 ^C'65S'nC accoe r cc.='--'em 'ecu-atcr occucies 're attest on cf re Comr-v. tee ecem zc- . i es rc ode a rev ew r the Toxic S-cstarces Ccn-i-c -cts " entofy 3ecor*ng =eoi_.'e'-'e''!s ceding Trace^arK ^econ-^g as ,-ev e'ate tc me c,~- ater a -ev-ew or ,r-e Department of ' anscc'tai'cn a^c ernetransportaticn -egu'atiOrs on 5r:CC "g and aceimg eooxy products and p'e'immary deveiooment of guice^nes 'C' prepar ng OSHA Form 20 Mater,3 Safety Data Sheets Attendance at many SP' meetings was up suostantia'iy during me past year Eastern Section Due orncipaiiy to the opening of ts -ew offices and expanded staff, the Eastern Section has achieved its three year objectives within me past year. Section imencership has continued to grow and involvement has mcreased n the sixteen Eastern and Southeastern states which comorise the Section ECON li. ;ne Sections third Annual Conference, successfully focused on government 'ssues and included speakers from the Environmental Pro tection Agency and the Consumer Pro duct Safety Commission, as well as some of me giants of industry. A new chapter was formed covering the Greater New York Area. The South ern Chapter is undergoing administra tive reorganization and expanding into new areas An Eastern Chapter of the Moidmakers Division is forming and the Mid-Atlantic Chapter continues to grow. Midwest Section in the past year the section has redi rected many of its objectives in support ot state legislative action programs. A 'Plastics m Minnesota Action Commit tee' 'S moving fast with the first state organized program of positive publicity about the plastics industry. Indiana is oemg organized along similar lines. New chapters have started m Michi gan with a one day mmi-conference and plans can for three per year. The section members nave provided major input nto the proposed Occupa tional Safety and Health Administration carcinogen regulations and actively opposed the labor reform pin New England Section "Free Enterprise versus Taxes and Governmental Regulations' was the theme Of Thirty-third Annual Confer ence. sponsored by the New England Section ana held in New Hampshire m October with 300 people attending. Recruitment of new members has been of paramount importance Twenty companies |Omed SP! and the Section during the past fiscal year. The SPi Board of Directors approved funds for the Section to retain part-time services of an individual to continually work on membership matters The Section instituted, on a periodic basis, a policy to disseminate informa tion on the New England plastics indus try to editors of the daily papers m the six New England states. Western Section The Western Section conducts an an nual conference for its members m the 14 Western states each spring. The 1977 conference, held May 4-6. was highly successful, with over a thousand atten dees. including wives. In addition, five active chapters spread throughout the region hold frequent meetings in north ern and southern California, the Pacific Northwest, the Southwest, and the Rocky Mountain area. Members of the Pacific Northwest Chapter were instrumental in organizing ihe independent Model State Program At the committee level, the Section con tinues to be active in combustibility education, international commerce, personnel and industrial relations, scholarships, and a speakers bureau. Expanded Polystyrene Division The 'irst studeni scholarship program for new design and application was 'aunched ana 65 entries received Six students were awarded scholarship^ While continuing work on ngzard analysis of products used r construc tion. a wnoie new area of acuviy "as developed The Federa> ~ace Com mission. several other Fecerat agenc es and numerous states have introduced programs aimed at protecting me con sumer from false claims of insulation oeformances Because of tne data available from round robin testing, this Division has been able to provide posi tive input and guidance in the develop ment of these regulations Next step is the consolidation of an data into a 'white paper" addressing me performance characteristics Foam Cup and Container Division Highlights of the Foam Cup and Con tainer Division Public Relations Program during the past year included the de velopment of a major environmentallyoriented position paper, explaining the positive contribution of the industry to consumers' preferred nfe style, and answering concerns about energy use and litter. The proiect also included plans for member company representa tives to be available tor media inter views and community group meetings to present material from me position paper Another highlight was the com pletion of a cooperative test program with a major fast-food cham, featuring an educational comic-coloring cook with an anti-iitter message SPI-22172 C, Foam Tray and Carton Division Witn the orinary thrust of r<s Group 5 efiOrts aimed at preventing pischminafory- state and deal 'eg-siaton agams; `oar1 --eat t-avs. :"e mgh1 grt of tKe oast year .vas t-e signo carry mprovec egisiat ve e mate -es- tmg -cn -^emC9rs stro-g e:,or$ Past .vorK nas ceen r:gmy 5UCC3$5`ui r eeccer5tdn wth the 5P! Puoi'C -rairs Committee 'he Divs'on -nerroers nave new dec ced 'o investigate me need ;or new programs, predominantly m. tne market'r.g ana customer eaucanon areas Fluoropolymers Division The F uoroooiymers Division held an Annual Conference and a Semiannual Division Meet'hg as wen as a number of Techntcal Committee meetings m fiscal 1977-78. A highlight was the Annual Meeting and Conference in April, which included presentations on 'New Mate rials." Fluoropolymers Overseas." `Environmental Considerations of Fluoropolymers.' and a report on the "National Institute of Occupational Safety and Health Recommendations for Fiuorocaroon Processors involving the Workplace and Exposure to De composition Products of Fluoropoly mers " Technical activities of the Division in clude the preparation of recommended procedures of quality testing of fiuoropolymer coatings and linings. A yearly statistical program on production and sales of fiuoropolymer resins is of definite value to Division members. Furniture Division a cememsd P'astics-;n- = urn,t_re Conference and Poiy Award P'esenta- f'cn was "e'd Ore 'urdred `ifty `jrmture rdviShy --er'cers atte^ced the -rten$,ve twocav Come'Shce ne'd m Ncvemper 197? r Char cue. Norm Carol ra The theme of the Ccnferece was '=jmi;u-e--a New -ocus ' ~~e curcose :he Con'o'orzs was '0 provide ey furniture oeepe wi;n a oette- -nperstaneng of new oiasfcs can offset ^sing wage oasts -educe energy consumpticn and ead :o nigner profits 'he 50iy Awards, wnich we^e pre sented in conunction with the Confer ence. honored significant contributions inoividuais. companies, publications, and products made to the use cf plas tics n furniture M L. Sagenkahn. of Shell Chemical delivered the 'eature presentation. 'Energy and the Furniture Industry" A great deal of puOiicity resulted and the Conference nas ceen credited as contrioutmg to me upswing in the plas tics furniture market. Machinery Division During the past fiscai year, the Machinery Qivision. through the Ameri can National Standards institute, had its recommended safety standard on care, construction, and use of horizontal in jection molding machinery officially estapiished as ANSI 0151.1 Preparation of 24 additional recommended safety standards on various types of plastics processing machinery is underway. Cwisch cosoc-screc 'ee de duct L.aoimv 3e'r,',ar5 n ,arc.-s areas of the U S :o educate ~ac- -g-, -a''- ufacturers and processors zr ns -oortant prcciem T-e D'V'S:on s 'cw n mg process of creat ng a data ca-- c` egai precedence cn procuct ac;- ty 'ratters fer me ^se of Dw son --epee's Th,s -format-on wi.i pe .coated a yearly oas.s The D'viS'C'' 'eccmi-e-cec 'p "'e SFl Board o` Cirec'crs acco-a; o` a de ducts L acuity Ccm--ittee _nqer ~e Pupi-c Arfars Cc--m>rtee '-e Com--ittee -s compr-sec ot 'we 'ec'esenrat-.es 'rom eacn of tne roi-cwing groups --ateiai companies processed comparves and the Machinery Civ sen The Division a;so estabiisnea a Con sensus Committee to consider com ments from processors anc Tiacnmery manufacturers on proposed safety standards Sixteen new companies icmeo the Division bringing its total memoershiQ to '44 memper com panies Molders Division The Molders Division published a `Di rectory of Molder Services' listing all memoers capaoiiities equipment sizes, and speciaii es This information did not exist m any of the many com mercial directories puonsned. The Division heid its first annual con ference in February 1978 and is plan ning the second Subcommittees of tne Division are Cutlery and Melamine Dmnerware The Cutlery Group has developed a statisti cal program and is now addressing en- SPI's Furniture Division presented Poly Awards m recognition ot outstanding contributions to the use of plastics in furniture. Armstrong Furniture Company, Appomatox, Virginia, received an award for design excellence and innovative manufacturing techniques (left) SPi also held a New Product Design Competition at the Sixth Annual Structural Foam Conference. First place nonors were awarded to. Grumman Fixibie Corporation for a cantilevered polycarbonate seat for the firm's new Model 870 oty transit bus. 6 SPI-22173 ' r~' eniai ssLes o- 3 sccsac es T-e Ve'amire D'-rs-*are Gf0,^D SUCCSSSiuily ntrocbced ts -gw 'ire of dmne'ware at re January housewares -h,CA _-v'^ 3 cess c-eaK'as; ara c '3 3ccc *overage -as nee- ocra.-ea - --e "ace press Moldmakers Division -c ~c,c.,e -- __-ca:cr. .re Mo o'--a<s'3 D 5 on cc'ducted a seres c* Voice? Me dma*er pang. jji$:^ssr-s aerss me county Out of rese discuss.ons a -ew mod quotation `o'm ,vas oeverceo ;o setter oenne -ecui'ere-ts Over 20 00C ferns nave seen districted smee Publication A mold cassT'catcn guice was vvr tten aef nng types of mold construction anc anticipated performance Thg Divi sion continues its active panic paron :n tne deve'opment of new aporentice cu'ncj'Ln n cooperation with me Society of piast.es Engineers, re National Tcoi Die and Precision Macnmmg Associa tion and me Tool and Die institute Organic Peroxide Producers Safety Division The Division directed many of is ef`orts 'Owards new and better test methods and c assiication of organic peroxides nto a system oemg de veloped oy the National C|re Protection Association Three Comm-ttees were established and are working to design arge-scaie ournmg test procedures. The uiviS'On estaoiisned a Cornmittee to wo'k on detonation testing To date, an outside testing organization has made tests on several products The Division is planning `urther large-scale lagoon tests in cooperation with the Bureau of Mines. Cooperation is planned with Euro pean and Japanese producers who are nterested m new test methods de velopment and large scale fire tests. Close cooperation with the Department of Transportation is ongoing, especially m providing technical information and advee on organic peroxide for the U.S. Representative to the United Nations. Continuing programs include The Toxicological Data Bulletin, which was updated and will oe reissued, and the Worldwide Literature Survey on Organic Peroxide Toxicity, which was approved in principle and will be issued next year The Plastic Bottle Institute During the past year, the PBI con ducted a highly successful ouDiic rela tions program Aimed at educating newspaper ana television representa tives on the positive and beneficial role or cast c cctfes Ts message aiso 'ac:^a iy a-s.vS'ec concerns acout Oiastic cemes anp 'eaitn safety and sc:io waste RQi ~emcer scoesmen v-s-ted 22 st.es ana -te'vewed '08 --eoa ec'esemat'.es "wei-vy-mne mousarc ccc es cf a cccnve ant red Cac:s accut =,3src Bottes' .vere aistncutea t-'Ougn -"emcees e^ons 'c employees a-ic -r'ue^r 3- common ty C'OuCS Dur-g -e com -r; rear ceater emc,"3s s w.i ce oacec on meet ng wT educators and environmental g'Cups Plastics Pips institute Expansion of tne many markets `or oiast'CS erne s -ejected m the 'nceas,ng nvc.vement of me P'astics P'pe nStitute m governmental ana professional activities The Fuel Gas Division de veloped sucoort for a proposal soonsored by me Amercan Society of Mechanical Engineers concerning me use of piast'C pipe n gas distribution systems The Large Diameter Poiyciefin P'omg Divis on engaged a consultant to estaoish cost and practical service life of re pairs involved 'h sewer reiining The Di vision developed a 'elated audio-visuai suae presentation and a supporting brochure `or presentation to local, state, and fecerai environmental protection agencies. The Technical Advisory Committee continues to offer expertise and considers technica'i prod'ems common to ail Divisions. PPl plans to pursue several avenues with other associations: for example, to work with the Extrusion Division of the Society of Plastics Engineers to provide a program on plastic pipe and fittings Another program being planned 'S a pint seminar with the American Society of Chemical Engineers on bunedplastic pipe. PPl is currently involved m the possi ble development of a Polyolefin Piping Manual, the establishment of a policy on fire sprinklers, and roadway drainage piping and piping material selection. Polymeric Materials Producers Division At its April meeting, the Board of Di rectors approved the formation of this new Division, made up of the basic resin suppliers of the industry. By vote of the prospective members of this Division, appropriate Dy-iaws have been ap proved and an organizational meeting will be held m early September Profile Extruders Division The Standard developed by the Pro file Extruders Division. "Specifications 'e- cr 3-c`i-e E<!r-,,S:C-S ,v = i 2CC'0.eC cy A-rg-'can Scoey 'Cr er-g Mate-ais "-e D'v s on puc 'Sneo 3 coo- e='3c:css jf Pastes C-s:cm = e-5 wnicn -cc'pc'ates a r ext^sion `erms "re pock et wrc- s an -1stcr'c31 -eccn on '-e ?rgr""'-: 'ec-- ca* arc ~rer prac: css c* o-s- 'o'- ext-uce'S 3 ^ year je~5rc a (Virdcw 3ro Dec' Ccmm ::gg was crgan'zeo ana -as *rze~a<en ce- -e'COm.ert o' ;'anc2fCS 'C' -3"-. ca^ative-v "'ew o-cc^c: a jo-^c -eo 33-iprorce -vit- me / ny 1 S'C'-g = ,c ducts Divis-on s co-e'Sd 0 'ne 'sco'- cr :nal Divis on Reinforced Plastics/ Composites Institute During SPi's i977-73 `iScai /ea< '-e -emforced plastics ndusuy set 2 -ew -eccrd. edgmg ever me two-on ion- pound mark in sruoments While eacn of me nme market caiegor.es 'ecoroed gams automot ve uses of 'emforced piasncs accounted 'or most of ts surge m growth SPl S RP C Institute Annual Conference program m Feoruary -e- hected this nign-prct'ie aeve'oomentoy emphasizing 'Automotive Day Gu'mg >ts week-iong meetmg Full-time activity in me occupational health area has laid tne groundwerk `cr major advances m promoting a 'atonai approach to controls on the manufactur ing work environment With consulting services of health service professionals, me RP-'C institute conducted studies of workplace effects on workers neaith ana 'S preparing a 'eoort on engineer ing controls which wni oe needed to cope with new Federal standards Among the many programs of the RP'C institute's eleven product commit tees. the panel council has organized a maior promotional effort m its solar col lector. greenhouse, and sign markets Activities include institutional advertis ing. booths at the Original Equipment Manufacturers trade shows, and the tailoring of performance standards to each of these market segments Rigid Plastic Container Division The regular technical programs of the Rigid Plastic Container Division con tinued to result m substantial progress during the past year, and included pub lication of a Standard Practices Manual for injection Molded Containers Tn,s will be of considerable assistance to mjection moider members m educating customers ana prospects on the ver satility of rigid plastic containers m ad- SPI-22174 SllZZ-ldS 5j'SsaoovCJ jSDjO saies 6uiseg0jnd UC S'SEuOujS 1010005 g]'W JuSLU6euBl^ S E j9]B^ Sje^CD 901^10* g]jnO) L|J. 5uiuue,d uO S>9lu9D aujniOA pjiqj 8gi uOiJEj9DiSuOO jO, SjOIOBj GuiOud PUB 6u:jeujiJS3 1S0Q g]<w. op 01 sbu |i Siun ioa Pub saidouud pjiuoo isoq Buunj oepuew sjgaoo i sujniOA uoiieoiiqnd ;B9|-9S00| sujniOA-jnoj b . sjosseoojd sonseid jOj ienuew jueiua6Bue^ ieo ueuy. sn uoijBOiiand egi peueis eei I'ujujoo iuauja6euey\ leoueuy egj. 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S^0ui0-'" jC ^20:0^-^ u0. j832;C 8-. J2 uCJEj33/22^ 0-- ^ uO.i^SilE S\| 'IV d'iO-0 '05:'-0t aooo e pajS' ob;ss os'? jo s vO a->s j ;eoo dje ueo. ejegie-- 9oe. oje oo- oojs x.oz j ,,,,bic jo, asec e ,,s .09:53 C. ,SOjC U' SS..ijngO00C PUB SujeiaOJC jC .lipr-v /.SaiE-ig. t u DsiE-oi;.co s,so^e^ uos '.I- e,,, jomc P jCCjt'Ci' of a 'our- /c.me --rancia Manage--em Manuai 'or Pastes P'ocsssors' was stanec wur /oi-^es i ana i. C'OCuC'-cn screcuiipg. and nventory corfc 'ecnnia^es Eac* of the vciumes w-i ce nrocucea m-ougn a seres of two-day "-deoth Financial Managerent Woms"ocs n central c;t es rhrcugnoot :"e country FecogniZ-ng tne growing trenc towaro n-"ouse cr cactive piast'c pro cess ng operations cy some Of the argef manufacturing concerns .n the U S me Committee 'S planning on deve'op ng statisbcai surveys, educationa conferences and nfc'maton data oanks tc service this segment of tne industry "he Committee concucted .ts Annual Laco' ard Financial and Operating Patio Surveys among plastics proces sors ana D:ans are proceeding to 'ranze the pienmai Salary Survey Food, Drug and Cosmetic Packaging Materials Committee With an increasing volume of Federal regulations and other activity impacting on piastic food packaging, this service Committee expanded ts meeting for mat to mc'ude and react to the greater membe' need for information. High lights of the year were highly successful and we'i-attended Suocommittee work shop sessons during the winter meet ing. which covered Drug Packaging Materials Foreign Packaging Regula tions and Technical Regulations, and a very popular and highly informative seminar heid m conjunction with the summer meeting The seminar featured three key officials of the Food and Drug Administration International Committee The international Committee mauguratea a video catalog exnioition to go to Tehran Iran Baghdad. Iraq. Damas cus Syria and Thessaiomki Greece >n Octcoer 1978 The Committee also worked 'r acotersi ."dectace ex-vc crs h ,r-e "ie'es; of excancmg mer-31 cnai :-3Ce :cr SP' "emcers ~~e Eo'"~'l!tee organise te mat SP'-SOOhiC'SC ""'30 0 VI 3 S: C n 3rd ~a - r : 3 7 e ~ ' a - c Moscow arc _sn "crac . S 5 2 sc-ec_ ed 'cr Oc- 'crer "S"3 D'sc-ss C"S we-e oegur SC3re "0 3 'ecm C51 Se1- _a' ~r "ace V 33 0^ `0 me -ecc es aecuc c m " zer ^-2: on w;m me j 3 Ceca-:me"t cf Commerce me Cc-n--..|;e9 WOfK0C 0" COSCC^SOrShi0 O' 3 'J 5 atahc a: me -ntemationai T-ace =air *cr P'asfcs and Puocer .n Dusse-ocn west Ge'mary n Cctccer '979 Continuing wof< of tne Commutes nvcives ceveiooment of plans :or an as pects of ntemancnai visitors' attend ance at the National P'astcs Exposition iNPE) ip Ch'cagc n June 19T9 The Commitee was aiso actve -n dealing with changes m me import ana exoort commodity classification sys tem Tuese 'evisions are cart of an overa-i attempt oy the U 3 Government to harmonize U S fading practices with these Of Our fading partners in the con tinuing world trade negotiations Some memcers of the international Commit tee are personally providing technical expertise to tne U S negotiators through a Plastics industry Advisory Committee Membership Development Committee Memcership in SPI increased n the 1977-78 fiscal year from approximately 1230 companies to a memoershio of over 1270. Recognition oy the SPI s Operating units and Section Officers of their vital roie m promoting memcership had a positive effect on SPi's success m this area. Recognizing the importance of oubhcizmg the names of new members of SPI. the Membership Department was successful m its efforts to nave a monthly announcement of new mem bers published m the Journal of Com merce. m addition to Wews Briefs. The Department rewrote two pam phlets. `What's m it for me as a member'^'' which explains the benefits of memoership m SPI and `Now that t'm a Member which explains me vari ous activities of SPI so that a member can obtain me maximum benefit Total memoershio 'S now 1413 Plastic Beverage Container Group This grouo expanded its function to include positive action against manda tory aeoosit ton beverage containers) Sea; : -c asmc 3" ana ouo-'C acrects'ce "es :or camc-atec ce.e Ad Hoc Plastic Microwave Oven Cookware Committee -> -a -^at-.e-v mef r cn .\m C" "3S `SC e d--cocxwa',e me -- c'cwa-e me" ^an.Lmcture's -es ^ s-oc e-s '-eta erS 5nG "cn-e 3CC~ Zr~ 3'5 --''3; 30rresseo 3 :'tca 33.e ccz-z' satety 'neso-ca1 so "3 :ac 't nas deve'eoed a"d ssuec tarn ace- ,eccmmenaatiOhs *o oe -sec manufacture's on mer o'coucts tc me consumer against ccss.c e ~ Suse estacnsrea laiscn wtn ctne' ntgrestea carries, agreed on catena `c hr-m O'oduct oe,formarc9 standard deve-ooment Work on estac'-sn.ng -ee- vant test methods s wei' urder way Ce veiooment cf 3 program `or consumer education on tne jse of piastic mic- owave cco*ware nas ceen nitiated Appliance Council The Council COntmues `0 wm memcers of me -iousewares Ma^'ac- turers Grcuo m furtherTg me "terns; of the plastics microwave oven cookware industry The Council 3iSO monitors -eg- uiatory activity 'e'atmg to o'ast-c appliances and aiefts memcers to threatening 'egisiation Housewares Manufacturers Group The Group monitors standards and regulations and prepares testimony on behalf of olastics housewares manufac turers for presentation to Government agencies Traffic Committee A maior Committee effort has been directed toward ensuring reasonable rail rates on a wide range of containers, dmnerware. and related items in creases m the range of 30% were first orooosed by the Eastern carriers and SPf opposed the orooosai White the Eastern Railroads adcoted their ongmai proposal, the Committee nas success fully prevailed upon the raii carriers out side of the East to take an adjustment of no more than 10% Tne Eastern Rail roads nave not yet cuo'-sned me<r in creases in tariff form nowever wren this does occur the Committee is oreoared to protest to me 'me'state Com merce Commission SPI-22176 Dufng the oast year the P'astic Bottle 'nstnuie conoucteo a higniy successful public relations program aimed at iniormirg meca rec'esentatives of tne oeneticiai roie of piasiic Dottles deft' These plastic pipe fittings (right) weigh one-sixtn as mucn as metai Mtrigs Expansion of markets `or plastic pipe >s refiected in tne 'ncreasmg number of PPl programs SPECIAL PURPOSE GROUPS Plastics in Construction Council This year the Council's six active cede committees |omed together to hold an Annual Meeting m Chicago on topics of general concern. Since each product within the Construction Coun cil's scope has some 'elation to fire safety ana products of combustion standards, the national exoerts m those fields comprised an open exchange oanei The dialogue with industry memoers was progressive and mutually in formative. The most active Committee within the Council--insulation--turned the corner m its model building code problems last year. This year has been one of viewing codes as an opportunity, since national standards and even local ordinances now take into account the benefits of foam elastics for fuel and energy con servation. The Committee's 'field rep resentatives.' comprised of membercompany experts on polystyrene and poiyurethane. now appear regularly in state and city council hearings to de scribe the benefits of proper use of these materials. In an example of now SP1 operating units cooperate, the Council considers one ot its mam achievements this year to be its implementation of SPI's Fire Pol icy. This top-level mandate from the Board of Directors has enabled the Plas tics industry to show the construction market ana regulators mat it is m a leadersnip position m trying to reduce human and property loss through fire. Each of the Council's Committees has rated itseif according to the Policy's six-pomt analysis, then described its evaluation to the product users and the public. Plastics Drum Institute During 1977-78. the Plastics Drum In stitute held four meetings to give atten tion to Federal and state regulations af fecting the use of 55-gaiton plastic drums in transporting products m in terstate commerce. The members ap proved three technical bulletins on di mensions and tolerances for drum openings. The Institute formally petitioned the U.S. Department of Transportation for incorporation of 55gallon drums in its Specification 34 which authorizes use of various types of containers. The Institute also petitioned the Occupational Safety and Health Administration, requesting an amend ment to existing regulations to permit plastic drums to De used for flammable liQuids m capacities up to 55 gallons. At its Annual Meeting in April, the Institute approved a resolution to consider invit ing material supplier companies to jom the group Polystyrene Safety Group A Polystyrene Safety Group Bulletin entitled "Fire Safety Guidelines for Polystyrene Kitchen Cabinet Doors" was published ana distributed Com bustibility testing of a living room con taining polystyrene furniture was com pleted. Another objective of me Group is the investigation into occuoationai exposures and environmental dis charges during the extrusion and njection molding of polystyrene. Plastics Packaging Strategy Group The goal of the Plastics Packaging Strategy Group, a support unit of the Public Affairs Committee, is to defend against attacks on the consumers free dom of packaging choice and against external action that poses a special threat to plastics packaging. During the past year, PPSG funded and adminis tered a successful court challenge against Minnesota s ban on nonreturnable plastic milk containers. Al though the State of Minnesota is appeal ing the court's decision, the beneficial ramifications of this win have been widespread. PPSG is continuing its ef forts for revocation of the Dan on plastic beverage containers m Hawaii wnich is scheduled to go into effect on 1/1/79. PPSG agreed to fund an SP' Ad Hoc Plastics Packaging Risk Assessment Committee to gather toxicological, epidemiological, exposure data on a representative plastics packaging material for the purpose of preparing a comprehensive assessment of the risk associated with packaging materials SP1-22177 Financial Statements Balance Sheets May 31,1978 and 1977 Assets Cast-1 n crecKing accounts and on -and Savrgs deposes Short-term investments at cost ;-.vhicn aDproximates market) ReceivaO'SS. Membership dees, ess allowance for doubtful accounts. f978 SI9 021 1977 $13338 Accrued interest Other P'epaid expenses and other assets Deferred charges--1979 National Plastics Exposition Fixed assets. Furniture and equipment Leasehold mprevements Less accumulated depreciation and amortization Total assets Liabilities and Fund Balances Liatnuties: Cash overdraft Accounts payaoie and accrued expenses Unearned membership dues Deferred revenue--1979 National Plastics Exposition Total liabilities Fund balances: General fund: Unappropriated Appropriated (note 6) Special projects funds Total fund balances Total liabilities and fund balances See accompanying notes to financial statements 1978 $ 6,433 18,796 3,053,273 4,675 58,879 17,260 16,033 310,018 158,382 72,440 230,822 57,400 173,422 $3,658,789 $ 47,942 487,871 57,154 73,845 666,812 323,161 1,495,286 1,818,447 1,173,530 2,991,977 $3,658,789 '9" 3 3 999 1 55" 2 594 333 2 -U9 21 343 19.446 12 445 -- 114.115 72.440 186 555 36 560 149 995 $3,851 567 $ 26,107 577.034 33.099 -- 636,290 286.632 1,702.528 1.989,160 1.226,117 3.215.277 $3,851 567 SPI-22178 i Statements of Revenues and Expenses Yearsended May 31,1978 and 1977 -events vie"oet3r',c n;erest Saies o? denature Sceciai cr0;ec:s Oliver Expenses Direct: Membership services. Legal ana consatirg Communications (public relanors) Administrative Membership promotion Directory Special prefects--research development, legislative and Duplic relations Service operating units Divisions and groups Regional offices Public affairs committee Chemical industry Trade Advisor Mastics Education Foundation Accounting Manual indirect program, administrative and general: Salaries and employee benefits Office supplies and expenses Rent Auditing and computer services Provision for depreciation and amortization Provision for doubtful accounts Other Less allocation of administrative expenses to National Plastics Expositions Excess (deficiency) of revenues over direct and indirect expenses Product liability expenses 1976 National Plastics Exposition revenues, net of related expenses of $1,587,418 Excess (deficiency) of revenues over expenses See accomoanying notes to financial statements 1970 53,785,235 254,959 55,294 2,834,494 29,071 6,959,053 1?" S3 324 183 oj 55 - pj 2 46* 23 257 5 97` 32' 476,235 84,422 124,406 32,209 18,560 2,834,494 162,819 73,747 159,443 1,396,567 2,000 6,357 50,000 1,316,229 278,832 115,299 57,570 20,840 8,355 49,508 7,267,892 150,000 7,117,892 (158,839) (11,874) -- S (170,713) 43C 368 8C 282 98 645 33/56 19 136 2.355/61 154.053 7' 425 131 342 1 4Q6.719 3 0C0 8 475 -- 1.164,591 215.746 103.417 57 289 19.340 9.677 39.311 6 401.689 240.000 6.161,689 (189,868) (11.405) 575.596 $ 374 323 12 SPI-22179 Statements of Changes in Fund Balances Years ended May 31,1978 and 1977 Baances at cegmnmg of year Excess (aet'c:ercy) of revenues over expenses Scecia' projects funds aaditions Assessments Meetings and conferences Sales of literature Contributions m support of special programs Budgetec general fund appropriation Other Special projects funds transferred to general fund revenues 3nd expended Appropriated funds expended Balances at end of year See acccmoanying notes 'o financial statements General funds 1978 Special projects funds $1,989,160 (170,713) $1,226,117 -- -- 1,877,860 -- 655,720 -- 119,383 -- 115,540 -- 150,000 -- 8,062 -- -- $1,818,447 (2,834,494) (144,658) $1,173,530 dele's 07' S"ec a< z'z ec:s U'CS 51 614 837 374 323 5 634 875 -- -- 2.-43 4'9 -- 462 999 -- m 077 -- 194 3C2 -- 68 103 -- 6.504 -- -- Sl.989.t60 (2.355.161) (50 000) $1,226,117 Notes to Financial Statements May 31, 1978 and 1977 (1) Summary of Significant Accounting Policies The accompanying financial statements have been prepared on the accrual basis of accounting and mcuce ail material accounts receivable and payable, other liabilities and deferred charges. The special projects funds represent receipts from certain members of the Society participating in selected industry projects. Such funds may only be utilized in accordance with the purposes established by the participants and are in contrast with general funds, over which the Board retains full control to use in achieving any of the Society's purposes. Special pro jects funds are reported as revenues and expenses when utilized for their intended purposes. Fixed assets are stated at cost, less accumulated depreciation and amortization, which are being pro vided for over the estimated useful lives of such assets on a straignt-ime basis. Certain 1977 amounts have been reclassified to con form to the current year's presentation. Other significant accounting policies are set forth m the financial statements and the following notes. (2) Retirement Plan The Society has a non-contributory trusteed retirement plan for all employees who meet age and !ength-ofservice requirements. Costs of the plan are funded currently, and for 1978 and 1977 aggregated $90,243 and $110,250. respectively Unfunded past service costs amounted to $59,726 at August 31. 1977, the most recent plan valuation date. Such costs are being amortized over a ten-year period. At August 31. 1977. the assets of the fund exceeded the present value of the participants' vested benefits. (3) Products Research Committee Funds Effective December 3. 1974. the Society executed a consent order with the Federal Trade Commission which required, among other things, the establishment of a Products Research Committee for the purpose of conducting research into the uses and hazards of cellu lar plastics products. The research is being funded over a five-year period by various other respondents to the FTC proceedings. The Society is custodian of the Committee's funds and. at May 3t, 1978. held $1,991,823 ($1,426.771 in 1977) in checking and sav ings accounts for use by the Committee. Such funds are not included in the accompanying financial state ments SPI-22180 13 fJ> Q) (4) Contingent Liabilities The Society has been named or aavised that .t wii be named as codefenoant m several lawsuits T-ese ac tions. m the nature of orcduct -latjn ty suits 'e atrg pnrran'y 'o the combustibility of `cam ciastics seeK ;udgem,ents`cr substant'ai damages Counsel s of the ooinion mat the -kei.hcod of ^rfavoraoe outcomes is -emote These amounts "Cude me ease z' :re meet, s executive office spaces at an anruai -emai np v;:r charges`or eiectncity. of $*07 5CC oer year >e ea$ expires m * 965: however, me Scc.ety "as me cct cr m terminate such ease as of Apr: 30 f930 _ccr cay-em of an addit onai opt cn se cf S' 40 000 Certain 'eases are supiect tc escaat-on provs.crs oased on real estate taxes (5) Commitments The Society's 'ease commitments foresee spaces are as `oiiows Yar ndlng May 31 1979 -980 198'982 1983 1984-1985 Commitment 3136.611 130.518 11 7 34Q 107 500 107 500 206.042 (6) Appropriated General Fund Balances Appropriated general `und oaiarcss cons.st of elec tors Special Reserve funds fcr Cactai mprovements product nacii'ty Other 1978 3 29 -25 26 "21 1 439 MQ 1977 3 5 "36 38 595 1 65" ' 2 ~ S' 495 236 3i '02 523 Auditors' Report Peat. Marwick. Mitchell <3s Co CERTIPtEO PUBLIC ACCOUNTANTS 343 PARK AVENUE NEW YORK. NEW YORK 10034 The Board of Directors The Society of the Plastics industry, Inc.: We have examined the balance sheets of The Society of the Plastics indus try, Inc. as of May 31, 1978 and 1977 and the related statements of revenues and expenses and of changes in fund balances for the years then ended. Our examinations were made in accordance with generally accepted audit ing standards, and accordingly included such tests of the accounting re cords and such other auditing procedures as we considered necessary m the circumstances. in our opinion, the aforementioned financial statements present fairly the financial position of The Society of the Plastics Industry, Inc at May 31, 1978 and 1977 and the results of its operations for the years then ended, in conformity with generally accepted accounting principles applied on a con sistent basis. July 7. 1978 14 SPI-22181 Officers and Directors 1977-1978 OFFICERS Cha.pman STANFORD H. SHAW 5^aw P'asrcs Cofc 5er*e'ev --egr-ts vJe ,ersey yCCHA PVAN iVER J. FREEMAN ^aoage Macmre'y Co East LOhgneadow Massachusetts 3eC?=rARY UVERNA. NIEDFELOT Technical P'astics CorD Santa Cruz California TREASURER FRED C. SUTRO.JR. JSS Chemicals Pittsburgh. Pennsyivama MMEOlATE PAST CHAiflMAN C. REX SCOTT phniips Chemicals Co Houston. Texas SECTION DIRECTORS EASTERN SECTION HARRY USSERY Southeastern Kusan. me. Greeneville South Carolina MIDWEST SECTION FRITZ A. BACKSCHEIDER Recto Molded Procucts. nc Cincinnati. Oh'0 NEW ENGLAND SECTION QAGE OLCOTT DowCheimcai U S.A Wellesley. Massachusetts WESTERN SECTION ROBERT POET vlstron Coro Hawthome. California DIVISION CHAIRMEN EPOXY RESIN FORMULATORS LLOYD A. DIXON OexterCorp industry. California EXPANDED PQivSTYPENE EVERETT J. OFTEDAHL xcanca-rcam ire Arfoch l-roiS PROFILE EXTRUOERS ADOLPHE J. de MATTEO T^-eex P'astics Coro P scataway. New Jersey =;-UCRCROLXMERS WILLIAM J. HUBER ~ue Cunroh CO'O Davton Qhic REINFORCED PLASTICS. COMPOSITES INSTITUTE ROBERT M. VOGELEI Gene'ai Motors Coro ,Varren Michigan FOAM CUP &CONTA-NER MARK H. DUNNELL Mars Cue Co P G'D PLASTIC CONTAINER PAUL TROW Huntington Station New york Dart industries pOAM TRAY & CARTON Ludlow. Massachusetts ROBERT M. WOOD SHEET PRODUCERS Mocii Chemical Cc MANAGEMENT Macedcn New York LEO R. FLEMING FURNITURE HARLEY D. HENRY Aima P'astics Co. Aima. Michigan Styrex industries URETHANE High Point. North Carcna HERBERT G. NADEAU MACHINERY WILLIAM MERICLE Upionn Co North Haven. Connecticut Cincinnati Milacron Co VINYL DISPERSIONS Cincinnati Ohio ernest s. McClellan MOLDMAKERS JAMES MeWILLIAM P'ast-O-Menc. me Waukesha. Wisconsin ivanhoe Tool 4 Die Co VINYL SIOING PROOUCTS Thompson Connecticut WILLIAM R HAMMOND MOLOERS DANIEL R KIDDING GAP Corp. New York. New York Dana Molded Products, inc. Arlington Heights. 'Uinois DIRECTORS AT LARGE Term exp/res May 31, 1978 ORGANIC PEROXIDE PRODUCERS SAFETY DONNELL A. BALLARD Oxirane Coro T. E. BRANSCUM Gott Manufacturing Co Winfield. Kansas Houston Texas ROBERT W.GEROeS Plastic Moldings Corp. PLASTIC SOTTLE INSTITUTE Cincinnati. Ohio WILLIAM J. GRAHAM Owens-Illinois. inc. CHARLES A. GRANT Toledo, Ohio Hercules, me. Wilmington. Delaware PLASTICS PIPE INSTITUTE GERARD R. QUINN JAMES S. HEARONS U-Brand Corp. Owens-Corning Fiberglas Corp. Ashland, Ohio Toledo. Ohio JEAN F. MALONE 3 F Gooanch Cnen-icai Co Ceveiard Oh`0 EDWARD G. SLATCHER Container Cord OfAmgr'ca W mmgton Delaware 'er'n sxcfes May 2^ '9*9 RICHARD A. BRADBURY PMS Corsoiidateo Garcenia. California F. REEO ESTA8ROOK, JR. Duval Corcoration Dedham Massachusetts JACKG. FULLER, JR. Polymer Machinery Coro Benin Connecticut GEORGE H. KAULL Premix. inc North Kingsville. Ohio RALPH M. WINTERS Amoco Chemicals Corp Chicago, nmois Terrrexoires May 31. i960 RIPLEY W. GAGE Gage industries nc Lake Oswego. Oregon RICHARD W. GOOORUM Ethyl Corp. Baton Rouge. Louisiana WILUAM H. GUTHRIE Phillips Petroleum Co Bartlesville. Oklahoma KENNETH F. SCHOEN Norco Plastic Oivision of The Vaispar Corp Milwaukee. Wisconsin L. WILLIAM SESSIONS American Can Co Greenwich. Connecticut R. PETER TOOHY Shell Chemical Co Houston. Texas SP1-22182 Officers and Directors 1978- 1979 OFFICERS 1978-1979 CHAPMAN IVER J. FREEMAN 3acKage Machinery Co East Longreadow Massachusetts VICE CHAIRMAN IVAR A. LUNOGAARD E.i du Pont de Nemours 4 Co. me Wilmington. Dei. SECRETARY UVERN A. NtEDFELOT Technical Plastics Corp Santa Cruz. California TREASURER WALTER R BUSSART Eastman Chemical Products, Inc. Kingsport, Tennessee IMMEDIATE PAST CHAIRMAN STANFORD M. SHAW Shaw Plastics Corp. Berkeiey Heights. New Jersey SECTION DIRECTORS EASTERN SECTION WILLIAM B. BRADBURY JR. PMS Consolidated Somerset. New Jersey MIOWEST SECTION ROBERT L SLAUGHTER Anchor Brush Co., Inc. Mornstown. Tennessee NEW ENGLAND SECTION JOSEPH F. O'BRIEN, JR. Gibson Engineering Co.. Inc. Norwood, Massachusetts WESTERN SECTION ROBERT POET Vistron Corp Hawthorne California DIVISION CHAIRMEN E?OXV (3=$.N FCRMULA'CRS FREDERICK E. MEYER 'nermosei O'ast'CS !rc :nc aracoiis 'nciana EXPANDED POLYSTYRENE J. MICHAEL MURRAY EPS !rC'_i5tr'es ,nc Wichita Kansas FuUOROPOLvMERS WILLIAM J. HUBER The Duriron Corp Dayrcn. Ohio FOAM CUP 4 CONTAINER WAYNE W. THOMPSON Owens-nimois. Inc Toledo Ohio FOAM TRAY & CARTON ROBERT M. WOOO Modi Chemical Co. Macedon. New Y&rk FURNITURE HAYMONO A. MATTSON Southeastern Kusan. Inc. Greenville. South Carolina MACHINERY SAMUEL J. RUPERT Hoover Universal, me. Saline. Michigan MOLDMAKERS W. JOHN GALVIN Burton Tool 4 Die Co Inc. Leominster. Massachusetts MOLDERS OANIEL P. HIOOINO Dana Molded Products. Inc. Arlington Heights. Illinois NATIONAL PLASTICS EXPOSITION H. R. HUTCHINSON Pennwait Corp. Philadelphia. Pennsylvania ORGANIC PEROXIDE PRODUCERS SAFETY ORVILLE L MAQCU Pennwait Corp. Buffalo. New Ybrk PLASTIC BEVERAGE CONTAINER PERCY M. STONE Continental Plastic Beverage Bottles Stamford. Connecticut PLASTIC BOTTLE INSTITUTE WILLIAM J. GRAHAM Owens-"'inoi5. 'nc. Toledo. Ohio PLASTICS PIPE INSTITUTE IVAN K. DeBUEU E. i du Pont de Nemours 4 Company. Inc Wilmington, Delaware PROF'LE EXTRUDERS ADOLPHE J. de MATTEO -hie'e.-< R'ast'cs Coro R'scataway. Newje'sev POLYMERIC M-1TR'AL5 RaOOUCRS WILLIAM E. KENNEL Amoco Chemicals Co-c Chicago iimois RE-NFCRCEO PLASTICS. COMPOSITES iNSTi-jTE JAMES S. HEARONS Owens-Coming F-berg as Corp Toledo Ohio RIGID PLASTIC CONTAINER OONALD R. WEN2 Dan industries Ludlow Massachusetts SHEET PRODUCERS MANAGEMENT LEO R. FLEMING Aima Plastics Co Alma. Michigan STRUCTURAL FOAM DOUGLAS I. HANSON Hanson Pattern 4 Moid Corp Ludlow. Massachusetts URETHANE WILLIAM C. OARR Mobay Chemical Corp Pittsburgh. Pennsylvania VINYL DISPERSIONS ERNEST E. MCCLELLAN Piast-O-Meric. me. Waukesha. Wisconsin VINYL SIDING PRODUCTS WILLIAM R HAMMONO GAF Corp. New Ybrk. New York DIRECTORS AT LARGE Term expires May 31,1978 T. E.BRAMSCUN Gott Manufacturing Co. Winfield. Kansas ROBERT W. GEROES Plastic Moldings Corp. Cincinnati. Ohio CHARLES A. GRANT Hercules, 'nc. Wilmington. Delaware JAMES S. HEARONS Owens-Coming Rbergias Corp Toledo. Ohio JEAN F. MALONE B. F Goodrich Chemical Co. Cleveland. Ohio EDWARO G. SLATCHER Container Corp of America Wilmington. Delaware Vm expires May 3? '9T3 R1CHAR0 A. BRADBURY MS Consolidated jarcenia. CaMcmia F. REED ESTA8ROOK, JR. Duval Corocat CP Dedham Mas3ac"-se't2 JACKG. FULLER, JR. Pc vmer Mac'mery Coro 3e''-n Connecticut GEORGE H. KAULL P'emu nc NcT Kingsvn.e ChiC RALPH M. WINTERS Amoco Chemica-5 Cere Chicago 1 !ino*s Term expires May Jr '980 RIPLEY W. GAGE Gage industries, me Lake Oswego. Oregon RICHARD W. GOOORUM Ethyl Corp. Baton Rouge. Louisiana WILLIAM H. GUTHRIE Oh'iiipS Petroleum Co 3artiesviie Oklahoma KENNETH F. SCHOEN Norco Plastic Division of the Vaispar Corp. Milwaukee. Wisconsin L WILLIAM SESSIONS American Can Co. Greenwich. Connecticut R. PETER TOOHY Shell Chemical Co. Houston. Texas Term expires May 31.1981 JOSEPH E.BIAPORE Rubbermaid. Inc. Wooster. Ohio T. E. BRANSCUM Gott Corp. Winfield. Kansas DONALD E- DEBACHER General Electric Co. Pittsfield. Massachusetts WILLIAM F. MERICLE Cincinnati Milacron Co Cincinnati. Ohio JOHN E. PEPPERCORN Gulf Oil Chemical Co. Houston. Texas JOHN M. SCHROEOER Crescent Plastics, me Evansville. Indiana SPI-22183 Staff RALPH L HAROING, JR. PRESIDENT THOMAS J. McGRATH general manager Staff Oirector Plastic Beverage Container Group Plastic Packaging Strategy Group Poiymenc Materials Producers Div CHRISTINE BENTON Administrative Assistant to tne President Secretary to tne Board JULIETTE LANGCAHN Staff Director Appliance Council Committee on Distribution Furniture Division Housewares Manufacturers Group Ad-Hoc Microwave Oven Cookware Committee Polystyrene Safety Group Profile Extruders Division Traffic Committee Vinyl Siding Products Division JEROME R CARROU. Director of Safety Staff Director Committee on Occupational Safety and Health Coordinating Committee on Consumer Safety Organic Peroxide Producers Safety Division PVC Meat Wrap Ad-Hoc Committee Radio Frequency Heating Committee Vinyl Dispersions OiviSion EDWARD J. COLLINS Director of PuDi'C Relations Staff Oirector Public Relations Committee NINA M. COLLINS Administrative Assistant to the General Manager WILUAM A. DIRZULAfTIS Director of Admir.'sirative Serv ces Staff Director National P'astics Exposition ALBERT J. EVANS D'rector of Statistics Staff Oirector Committee on ^esm Statistics -mane ai Management Committee international Committee JOHN GRAHAM Communicat'cns Sceoanst. Puc o delations HOWARD KIBB6L Marketing Analyst STEPHAN E. KLAMKE Executive Director Plastics P'pe institute JOHN R. LAWRENCE Technical Director Staff Oirector Ad-Hoc Combustibility Safety Committee PAC Technical Committee PVC Safety Group Plastics Resource Recovery and Conservation Committee JOSEPH S. McDERMOTT Manager Plastics m Construction Council Reinforced Plastics/ Composite institute ROBERT MALUA Controller JOHN MALLOY Director of Packaging Services Staff Director Foam Cuo 4 Container Division Foam Tray 4 Carton Division Food. Drug & Cosmetic Packaging Material Committee Plastic Bottle institute Plastic Jerry-Can Commirtee Rigid Plastic Container Division MAUREEN MIQDALEN Assistant Staff Director BERT $. MONTELL Staff Director Ffuorooolymers Division Machinery Division New England Section Plastic Drum Institute Sheet Producers Management Division Structural Foam Division Urethane Division Vinyl Film Group DEBORAH MULLON Assistant to the Manager. Federal Government Affairs STANMRUK Technical Director Plastics Pipe institute E.S. NUSPUGER Director of Public Affairs Staff Director Public Affairs Committee AMY STRAVTTZ Office Manager C. RICHARD TITUS Manager. Federal Government Affairs PAT TONER Assistant "ecmica1 Director Staff Oirector Acrylonitme Cocciymers P'ccuct G-pi Ecoxy aesin Formuiatcrs Ag-HCC PET StuCV Group 'ox,co|cgy Comm r'ee JOHN WSIGLY Memoership Director Eaatem Section '69 Union Blvd. Totowa. New Jersey 075'2 201/790-1870 RICHARD FROCK Manager Eastern Section Midwest Section 3150 Oes P'ames Avenue Des Piames. nimoisoOOiS 312.297-6150 ROBERT W. SHERMAN Manager. Midwest Section Staff Director Midwest Section Moidmakers Division Moiders Division MARGARET SHALLCROSS Assistant Midwest Manager Staff Director Cutlery Manufacturers Gmuo Expanded Polystyrene Division Melamine Dmnerware Group New England Section 355 Lexington Avenue Newark, N.Y 10017 212/573-9*00 Weetem Section Saddleback Square Suite 124 12440 Firestone Boulevard Norwalk. California 90650 213/664-2793 HERS OSBORNE Manager, Western Section ALTON DREW Assistant Western Manager Legal Counsel KELLER A HECKMAN 115017th Street. N.W Washington. D.C 20036 JEROME H. HECKMAN (SPl General Counsel) ROBERT R. HERMAN WAYNE * BLACK MARTIN W. BERCOVtCJ PETER M. NEMKOV JOSEPH t HADLEY JOHN B. DUBECK JOHN S. ELOREO DEBORAH S. THINKER DR. DANIEL 3. DIXLER DR. BRUCE W. MORRISEY (Technical Consultants) SP1-22184 The Society of the Plastics Industry, Inc 355 Lexington Avenue, New York, New York 10017 (212)573-9400 EASTERN SECTION 169 Union Blvd. Totowa, New Jersey 07512 (201)790-1870 NEW ENGLAND SECTION 355 Lexington Avenue New York, New York 10017 (212)573-9400 MIDWESTERN SECTION SPI-22185 sfi ANNUAL REPORT 1978-79 Plastics SPI-22186 Table of Contents Chairman's Letter 1 SPt Public Affairs Committee 2 NPE 79 6 P'astics nail of Fame 7 Ocerat-rg Lr 'S 8-13 Sections Oivsions 8-11 Committees 11-13 Special Purpose Groups 13 Financial Statements 14 Directors and Officers Staff 18-20 nside Back Cover VA" ONAL =LAST cs 5<=CS." C H. R. HUTCHINSON 3er'wa.: Co'c =* aae'D^a. psrnsv.a''ia ORGANIC PEaGX-CE 3=CCUCERS SAF=~v ORVILLE L. MAGELI Core 3ui`ao New 'or*. 3UiST:C BE'vE= AGE OON'A.NER PERCY N. STONE Cent neniai R'as: c Beverage Betties S'amfora. Conrecr Cut LASTIC 30T~_E NS' WILLIAM J. GRAHAM Owens-iiiinois. me Toieco. Ohio 1978-1979 Officers and OFFICERS CHAIRMAN IVER J. FREEMAN Package Macn.nery Co East Longmeacow. Massachusetts VICE CHAIRMAN IVAR A. LUNDGAARO E I du Pont de Nemours & Co . Inc Wilmington, Delaware SECRETARY LaVERN A. NIEDPELDT Technical P'asncs Coro Santa Cruz, California MEASURER WALTER P. BUSSART Eastman Chemical Products, inc Kingsport. Tennessee MMEDiATE PAST CHAIRMAN STANFORD H. SHAW Shaw Plastics Core Berkeley Heights, New Jersey SECTION DIRECTORS EASTERN SECTION W1LUAM B. BRADBURY, JR. PMS Consolidated Somerset, New Jersey MIDWEST SECTION ROBERT L SLAUGHTER Anchor Brush Co,, Inc Morristown, Tennessee NEW ENGLAND SECTION JOSEPH F. O'BRIEN, JR. Gibson Engineering Co , me Norwood. Massachusetts WESTERN SECTION ROBERT POET ViStron Coro Hawthorne. California Directors DIVISION CHAIRMEN EPOXY RESIN FORMULATORS FREDERICK E. MEYER Thermoset Plastics. Inc naianaootis. maiana EXPANDED POLYSTYRENE J. MICHAEL MURRAY EPS 'ndustnes. inc. Wichita, Kansas fluoropolymers WILUAM J. HUBER The Dunron Corp. Dayton. Ohio FOAM CUP & CONTAINER W. WAYNE THOMPSON Owens-Illinois, inc. Toledo, Ohio FOAM TRAY & CARTON ROBERT M. WOOD Mobil Chemical Co Macedon, New York FURNITURE RAYMOND A. MATTSON Southeastern Kusan me. Greenville, South Carolina MACHINERY SAMUEL J. RUPERT Hoover Universal. Inc Saline. Michigan MOLDMAKERS W. JOHN GALVIN Burton Tool & Die CO me Leommster. Massachusetts MOLDERS OANIEL P. HIDOING Dana Molded Products, me Arlington Heights, ittmois PLASTICS PIPE INSTITUTE IVAN K. DeBLlEU E 1 du Pont ae Nemours & Co . me Wilmington. Oeiaware POLYMERIC MATERIALS PRODUCERS CHARLES A. GRANT Hercules. ;nc Wilmington, Delaware PROFILE EXTRUDERS ADOLPHE J. de MATTEO Thiele* P'asucs CorD Piscataway. New Jersey RP/C INSTITUTE JAMES S. HEARONS Owens-Cornmg Fioergias Coro Toledo. Ohio RIGIO PLASTIC CONTAINER DONALD R. WENZ Dart industries Ludlow. Massachusetts SHEET PRODUCERS MANAGEMENT LEO R. FLEMING Alma Plastics Co. Alma, Michigan structural foam DOUGLAS I. HANSON Hanson Pattern & Mold Corp. Ludlow. Massachusetts URETHANE WILLIAM C. OARR Mooay Chemical Corp Pittsburgh. Pennsylvania vinyl DISPERSIONS ernest e. McClellan Plast-O-Menc. inc Waukesha. Wisconsin VINYL SIOING PRODUCTS WILUAM P. HAMMOND GAF Corp New York. New York DIRECTORS AT LARGE "ofT =jtC`'e5 j' 13"9 RICHARD A. BRADBURY =MS Consc ica'ed 3arde3 Ca.`d"'a F. REED ESTA0ROOK. JR. Gear Mcr 0"S Ce"ram Massachusetts JACK G. FULLER. JR. aO'.'"e' Vac- _er'r Ccc 3er''n Ccn-ec:cu GEORGE H. K.AULL a-omK -C Norm < ngs. >e C" c H. F. TOMFOHROE. Ill _,n.on Caroide Ccrc New vOr*. New vO'< RALPH M. WINTERS Amoco Chem-cais CerD Chicago 'unois Term expires May 31 '980 RIPLEY W. GAGE Gage maustres. nc Lake Oswego. Oregon RICHARO W. GOOORUM Ethyl Coro Baton Rouge, uouis ana WILLIAM H. GUTHRIE Phillips Petroleum Co Bartlesville. Qkiancma KENNETH F. SCHOEN Norco Plastic Division of the vaispar Corp Menommee Fans. Wisconsin L. WILUAM SESSIONS American Can Co. Greenwich. Connecticut R. PETER TOOHY Shell Chemical Co Houston. Texas Term expires May 31. 7981 JOSEPH E. BIAFORE RuDbermaid. me. Wooster. Ohio T. C BRANSCUM Gott Corp Winfield, Kansas OONALD E. OEBACHER General Electric Co Pittsfield, Massachusetts WILUAM F. MERICLE Cincinnati Mitacron Co Cincinnati. Ohio JOHN E. PEPPERCORN Gulf Oil Chemical Co Houston. Texas JOHN H. SCHROEDER Crescent Plastics, me Evansvnie. maiana SPI-22187 Chairman's Letter Ourvscal year enairg May3i. 1979 was very suc cessful. Dy every measure As Cesc' cea elsewhere m mis Annual Pecor. this ~as ceen 5" actve arc product.ve year for ail of pjr various sec: crs a.vis.ors. groups. councils, arc com mittees As ,vtn -"e noust-v :-eD'esents. SP' s a very diverse organ.z-2tcr -vm 3 g-eat variety of 'r!erests. concerns programs. arc services Tn.rpugnout 1978-79 there were extens.ve prepara tions !or :he June 18-22 National Plastics Expos.t on m Chicago Although technically m the new fiscal year, this maior event is being covered n this PeDort. rather than a year ater New records were set in the number of exhioitors (504), by the 47,500 attencees. jd 20 8% 'rom the 1976 show, ana by the enthusiasm and ootimism of everyone involved. Our public affairs concerns continued to receive spe cial attention, and progress was made all aiong the ime by our Public Affairs Committee. With the "energy cri sis" and feedstock availability emerging as the industry's largest problem, a special Energy Task Force was formed early m 1979 A special report entitled "The Energy Saver" is being widely distributed in order to document the essentiality of plastics We are fully pre pared to make certain that this industry continues to receive its full and fair share of available petrochemi cals. Further evidence of progress is the slow but steady growth m the number of companies which support SPl A total of 140 comoanies joined us in 1978-79. How ever, for a variety of reasons, 106 companies resigned, resulting m a net total increase of 34 Total SPl member ship now stands at 1400. Because several income categories exceeded expectations. SPl achieved a net excess of income over exoenses of $242,122 during the 1978-79 fiscal year. These results, along with existing reserves, place your trade association in a very sound financial position. During the past year, SPl has benefitted from much closer cooperation and liaison among the associations related to the chemical industry. We are delighted by the new programs of the Chemical Manufacturers Association and by their new spirit of openness and cooperation. We believe it is very important for SPl to be an active participant in the American Industrial Health Council and ,n me Council of Chemical Assocatons Cespite ail the good newsacout SPl. mis sro-.re'or complacency Not only me "energy crisis out a so a 1 of me other environmental issues continue to cemarp cur -er/ oest collective efforts According 'o -nos: econo mists, our country s r,eadmg Tto a r9cessiQp. a-o-^g with contm.uec nfiat.on While rdusrv sa!es were ;r a ' Sing trend throughout me oast year we <row "~a: a turndown is imminent Both the-ncustry and tsasscciation are prepared to coc-e. Furthermore, we know that SPl itse'f r"ust keep cace with the continuing arc rapid cnarges withm me mc_stry. The present organization and By'aws "ave remained largely the same for 10 years, anc me dues Structure has held firm for five years. As announced to the membershio m the spring, your Board of Directors has appointed a special "Blue Riboon Committee of Past Chairmen and Treasurers to audit the orgamzat cn and its policies and to seek improvements m the dues structure. This Committee, assisted by staff and by consultants from Ernst & Whmney. has concluded that more specific operational objectives are needed-- clearer definitions of what SPl can and will cover effec tively, withm the limits of members perceptions of what they are witling to pay. We don't expect me dues to be higher, but we believe they can be made more equita ble. Serving as your Chairman has been a cnai'engmg but worthwhile experience for me during the past year l look forward to another year in this capacity with special pleasure because of the opportunity through the orga nization and dues study to help make SPl even better Having been active in this association and m the Society of Plastics Engineers for many years. 1 continue to be impressed by the number of industry leaders who are willing and able to help this industry progress. Those men serving on your Board of Directors volunteer a great deal of time and effort on your behalf. We have a very strong group of Officers and Directors, and I am grateful for their continuing support. Two key men who completed their terms of office on May 31, 1979 desen/e a special note of appreciation: L.A. (Red) Niedfeldt and F. Reed Estabrook, Jr. Red Niedfeldt served on our Board for a total of eight years, as a Director at Large. Treasurer, and Secretary. Reed Estabrook was with us for six years, with three years as Chairman of our Public Affairs Committee. Both were outstanding and tireless in their leadership. I also want to congratulate Ralph Harding, Tom McGrath, and the entire SPl staff for their good work on our behalf. From close observation l know why the SPl staff is so highly regarded Dy their peers m the associa tion field. For every reason, I am very confident about the future of the plastics industry and its association Whatever the challenges may be, we'H be ready. Mr. Freeman with Senator Edwara M Kenne<3y{0em -Mass) at the SPl Annual Wasnmgton Meeting. IVER J FREEMAN Chapman SPI-22188 Threats and Opportunities PAC Mobilizes Industry Resources The 3'jCi'C Aha:.rs Comm-tree fPAC) >s an SPi 3oard Committee formed. as stated .n re Byiaws. to 'prov de 'eade^shiD m nop Z"~g ana coo'dinating the r&- sources of The Society anc ts members `or the most edect^e economca! haraimg 0f broad public >s- sues affect rg the plastics ncust-y " 'he Puduc Affairs Committee is by definition issue- oriented m organization and ooerauon Members of PAC are designated as issue Coordinators. As such, their primary assignment is the observation, study and analysis of the issue m question, and the recommenda tion of programs and policies SPI should adopt in re sponse to the issue Assistance of an issue Specialist (a member of the PAC Public Relations Committee), ap propriate technical committees, outside counsel and SPI staff are available to him Activities of PAC The activities of PAC are divided into three general areas--legislative/regulatory work, technical research and information programs. Legislative surveillance includes monitoring every piece of legislation introduced at the Federal level, in the 50 states and m Puerto Rico. Hundreds of thousands of bills are examined during each biennium, analyzed for their specific impact on the plastics indus try and--if they are directly pertinent to the industryreported m PAC publications promptly and regularly. When action by the industry appears necessary, PAC is equipped to initiate whatever measures are called for--member participation, professional lobbying, liaison with other industries, written and oral testimony or others. Results for this year have been excellent-- market opportunities for the products of the plastics industry have been kept intact. Technical research is often required to establish the true values of plastics products and to refute some of the irresponsible cnarges made against them. The best technical expertise in the industry is organized under PAC to form the various committees that concern them selves with the technical aspects of the various issues that confront us. The overall objectives of all PAC tech nical activities is to provide the technical information that will educate and control those external influences that might otherwise restrict the market opportunities for plastics. This information is gathered from both in ternal industry sources and research projects financed by SPI and conducted under the direction of the PAC's technical committees. information programs have been develbped for both industry and external audiences. The internal program strives to equip industry members with the material and enthusiasm needed to participate m a long range effort to inform and convince the external audiences of the value and essentiality of plastics. The external audi 2 ences delude Congress, state eg'Siators federal and state regulators, organizes acor. environmental sts. print and electronic media arc :ue general oucc Some of the elements of tre rterna' program 'nc-uce a Speakers Bureau, p'epacxaged ccns; tuency semi nars, regular placement of `eatures ,n me piast.es trade press, many issue-criented cubi'canors and a ~ew Publication designed to motivate industry memoe's at ail levels of employment to become active m me promo tion of the ndustry External acton programs include a method for quick response to charges against :ne ndustry and various `orms of communication of SPl's positions on the vari ous -ssues. Also, during the year, an industry hallmark was developed (see cover and beiow) and testing of a senes of TV commercials was begun. For the first time m the history of the oiastos industry a hallmark has been developed to reflect the tremendous diversity of the industry The Plastics industry Hallmark was selected as one whtch symbolizes many aspects of today's plastics--such as their strength, light weight, and versatility. The mark will be used by companies which supply plastic resins and films or make machinery/equipment chiefly for use m the plashes industry, as well as companies which manufacture plastics products to identify their use of plastics. The hallmark will be a maior factor m developing public awareness of the plastics industry and its contributions to our society. The hallmark is a plastics industry, not an SPI, logo and is for use by both SPi members and nonmembers to promote the industry. Issues As we have said, the basic thrust of PAC activities is organized around public "issues.'' The following defi nitions of the principal issues confronting the industry and PAC's response strategies may be helpful to you m understanding PAC's charter . Ensrgy The growing shortage of petroleum supplies has a direct impact on the manufacture of plastics, most of which are totally dependent on petroleum feedstock. These petrochemical feedstocks for plastics consume less than 1 5 percent of our annual supply of oil and natural gas. The availability of petrochemical feed stocks is being increasingly squeezed as the result of Environmental Protection Agency and Department of Transportation regulations changing the composition of gasoline. This situation will continue until new supplies of crude oil, new technology and new refining capacity become available in the short term, however, actions that increase gasoline supplies can nave an adverse impact on the plastics industry. Although energy has been a PAC issue since the SPI-22189 Case stucies *nicn -eveai ~cv* oiasi'cs carse^e energy a^c :~e '-corar'ce o(aceQua:esucc-'es of `eecsrocKs `o' "' C'as;ics "Cusiru ar zd~s'sc r '~ese SPi OuO'icat oos E"ec: ve COrn^'jn.caf'Or' Of ff'S r,rorr'a!'On '0 ndust'v Temce's. :re gcve^nmert aro ;ne cduo :s "!e naior goal of ;ne En ergy task Eorce -n :r>e immediate future 1973-74 oil embargo, no specific action programs had seen undertaken from then until the Spring of 1979. At that time an Energy Task Force was formed to develop appropriate programs. This Task Force has developed a statement of objectives and purpose, to mobilize the entire plastics industry m constructive efforts to assure the availability of adequate supplies of feedstocks, to articulate the essentiality of the plastics industry and its products throughout the nation s economy, to call for correction of regulations that discriminate against plas tics and to identify the shifts m gasoline requirements which threaten the availability of feedstocks for plas tics. and to coordinate our positions and strategies with other petrochemical/polymeric groups whose interests coincide with ours. Programs supporting these objectives have involved the preparation of the basic position paper "Plastics and the Efficient use of Energy" and the case studies which reveal how the use of plastics saves more energy than it consumes. The effective communication of the information m these reports to members of the industry, the govern ment and the public is the major goal of the Energy Task Force m the immediate future. Combustibility With the increasing national concern regarding life hazards and property losses due to fires there has been increasing attention given to the role of manmade mate rials in the built environment. Too frequently the charac teristics of plastics are misunderstood at some stage in me chain of events from their design and manufacture through their use and involvement in actual fires. SPI's involvement in fire issues has been long and varied. The fire performance of specific materials and products has often been handled by individual SPi divisions, e.g. the Urethane Division, the Reinforced Plastics/Composites Institute, the Plastics Pipe Institute and the Furniture Division. The general fire issues of the industry have been followed by the Coordinating Committee on Consumer Safety (CCCS). SPI's role has been to provide an inter face between plastics producers and processors, the fire community and the general public. The thrust of SP' s position in these activities has been to build an accurate record of the hazards or cast cs r res ara -c encourage me industry to act responsucy Tc S'pfc'ce the SPi s position on fire issues an ad noc committee was organized >n 1976 to review the association s ac tivities and recommend wnat new actions, if any. shcu'.c be considered The outcome of this review was the development of the SPi Fire Safety Poncy which was adopted by me SPi Board of Directors m 1977 This policy cat'ec for actior oy all SPI divisions wnicn nave materials or products which might be nvclved n fire s.tuations "he steos to be Wowed ca.'ea for "aza'c analysis and evaluation--to determ,re me ootenyai `or hazard: safe use actions--to promote stancards --aKmg or information whicn would foster me safe use of plastics m areas of potential fire, and commun cation and advocacy--to be certain the 'oie of plastics n potential fire situations is property understood by reg ulators and other authorities. As of the spring of 1979 it was reported that me operating divisions had conducted some type of fire hazard analysis and issued some form of use recom mendations based on these analyses The responsibil ity of monitoring further work on such programs has oeen delegated to the CCCS Packaging Strictly speaking "packaging" should not be consid ered an issue. However, it is treated separately be cause it bears the brunt of charges that are based on nearly all our issue areas Solid waste, litter, energy, health, etc., are all used as reasons for restricting or banning plastics packaging of one sort or anomer Packaging is a highly visible form of litter. As such it is wrongly thought of as the major portion of our solid waste stream. Beyond that, the benefits of, and the necessity for, our system of convenience packaging has never been adequately or convincingly presented to the nation's thought leaders, including legislators There has been nearly a decade of legislation and/or regulation aimed against the packaging industry Plas tics packaging has been a special target for legislative attack on the special grounds of being nonbiodegradabie and energy intensive. The most common types of packaging legislation are: mandatory deposits on beverage (beer and soft drink) containers: bans on plastic beverage containers; bans on loop connectors that are not biodegradable: levies on items most commonly found in litter; bans on nonreturnabie plastic milk bottles, establishment of au thority to review and perhaps ban any new packaging introduced in a state, and bans on certain types of meat trays. PAC uses its legislative monitoring and surveillance at state levels and the services of SPI's Washington Office at the Federal level, to keep track of this legisla tion. As necessary, SPI engages State Counsel to aid m and direct our legislative actions in response. Packag ing legislation is reported to members through the monthly Legislative Bulletin, and beginning m February 1979 a report called "Friday Wrap-up." which covers legislation involving plastics packaging only, has been mailed each Friday to members with packaging in terests. SPI has responded differently to each type of pack aging legislation, according to established priorities SPI-22190 and available resources Specie activities of some of :ne 3P( divisors "ave ceer instrumental m controlling trese egisiative activit.es and are recorded m me follow ing division reports P'asncs Packaging Strategy Group (p 10), Plastics Beverage Container Division (p 9), and DtastiC Bottle institute (p 13). Products Liability in rece": /ears ncreasirg curdens "ave ceen p.aced or SPi 'i-emcers charged in iiacwty cases with -esccns c-''?v `cr niufy. css of life and loss of property ""he rese t nas cee a heavy pur-den of egal expenses, .laonity pavrnerts and ncreased insurance costs $Pl nas ceen involved .n the effort to 0rng some semptarce of equity ana justice to the area of products iapiiity laws. Among other things, SPi has cooperated with the Task Force cn Products Liability and Accident Comoensanon oy submitting data concerning the ad verse 'fnpact of recent trends in product .lability law on members of the oiastics industry SPi. m cooperation with other organizations, has also been nvoived m the effort to seek fair and meaningful .egislative reforms at the state level, it has also worked closely with Commit tees of the U S. Congress in the national effort to achieve tax ana other reforms aimed at helping industry to cope with the added economic burdens presented by the continued erosion of defendants' rights m the area of products 'lability. in July 1978 a Products Liability Committee was or ganized under the auspices of the PAC. The role of the PAC's Products Liability Committee is to recommend policy on product liability Essentially it makes recom mendations to the Board through PAC on such items as: specific legislation relating to products liability and follow up as needed: insurance underwriting issues; the need for tort reform at the state level and the types of reform needed: educational programs (specifically, the products liability and products safety seminar); work man's compensation reforms, and such areas as in dustrial safety and occupational diseases. in actions to date the Products Liability Committee has conducted five seminars to instruct members and gam industry support. Resource Recovery and Conservation Although plastics wastes form only 4 percent of the total municipal solid wastes generated in the United States, considerable concern has been expressed over the environmental damage and nonrecyclability attributed to plastics. The problems associated with plastics m the solid waste stream have been long and varied. With actions ranging from legislation to ban or tax the use of certain plastics products to charges of insults that plastics presumably contributed to the solid waste stream, the plastics industry has been a favorite whipping boy in the environmental arena. With the re cent emphasis that the EPA has placed on resource recovery and conservation of materials, new pressures have been placed on plastics which suggest that the use of fossil fuels for the manufacturing of plastics is wasting a valuable resource for products which could be made of natural materials. The 1971 New York City tax on plastics packaging provided the stimulus for the organization of SPt's Pub- 4 ip Affai'S Council--jr.e c^ececesscr or **e C'ssem Public Affairs Committee Tns crai'erge wr cn SP1 was successful m having set aside trrcugn ccun actom orovided a mocei for cositwe response oy SP' on a,\ solid waste ssues. The early formation of me P'asncs Waste Manage ment Committee provided a means of deve'ccng technical sucoort for the industry s positions a seres of position paoers ana technical -ecorts were de veloped under this committee s supervision hciucmg Plastics ard Sanitary Larafnis. P'ast.cs =rp 'rcmeration, Reclamation. Recycling and Reuse of R'as; cs Plastics and Degradability. Recycling Plastics. Re source and Environmental Profile Analysis of P'asncs ana Non-Plastics Containers ana imcacts of Se'ectec Plastics Products on the Quanty of Lie In 1976 the Plastics Waste Management Committee was renamed the Plastics Resource Recovery a^a Conservation Committee. The maior objectives and re sponsibilities of this committee are ire development acquisition and aiding in the dissemination ot data ana technology: to demonstrate when the use of plastics products is m the public interest and resuits m societal benefit and overall net reductions m the use of re sources and generation of wastes as observed, to pro mote resource recovery, reclamation, or reuse of plas tics materials, and for proper ultimate disposal of waste plastics materials Studies for use n our energy issue programs will be made in the area of energy conserva tion m the manufacture and use of plastics which are listed in the Resource and Environmental Profile Analyses (REPA). Toxicity Toxicity has become an issue in the plastics industry as a result of the increased industry, government and public awareness of the potential for adverse long term effects on health and the environment due to exposure to chemicals. Industry concern has been manifest by increased research on the toxic effects of cnemicais The enormity of the scope and cost of the data gather ing effort has spurred the desire to develop cooperative programs within the industry. The increased public and government awareness has been manifest m laws such as the Toxic Substances Control Act (TSCA) and specific regulations such as the OSHA and EPA regula tions of vinyl chloride. SPI has responded to this issue through the PAC Toxicology Committee and the various Polymer/ Monomer Safety Groups. The Toxicology Committee is the "generalist" committee m the areas of toxicology and health m the context of occupational and environ mental exposure. The Toxicology Committee reviews, and when appropriate, responds to government-pro posed generic policies on behalf of the plastics indus try; provides stimulus and the means for the collection, review and dissemination of toxicity data on plastics and plastics precursors for industry-wide use and pro vides the opportunity for joint testing programs, and provides an organizational network through which seiffunded specific interest, committees or groups can be organized, e.g. PVC Safety Group, ad hoc Epichiorohydrm Committee, Vinyl Acetate Task Force The PVC Safety Group was formed m 1974 to re spond to the situations which developed and continued SP/-22191 ;o arise smce it vvas 'earned that VCM had caused angiosarcoma in workers exoosed to very high levels in addition to vigorously commenting on the OSHA and E?A regulat:ons for vinyl cnionoe. the group published capers on^'PVC and health and '`What Every Empicyee Should Know Apcut PVC and What You Should Teu Others 'rhe AN Po;ymers Group was formed in 1977 to re spond to ar OSHA crooosai *o regulate acrylonitrile as a carcinogen wn c1-1 Kad caused tumors m ;afcoratcry arimais The Group effort was successful m obtaining a tpugn cut reasonable standard for occupational expo sure to AN The OSHA Standard also exempts ABS and SAN resins on the basis of establishing tnat no senous worker exposure occurs in the handling of these mate rials. The PET Safety Committee was organized m 1976 to ensure there >s sufficient data to defend the use of PET resm `or food contact use--primarily beverage con tainers. The Epicrloronydrm (EPl) Committee was formed m 197Q to respord to the OSHA request for information on. epichlorohydrm The Styrene Vlonome' Group has been `o/m.ea to assist m tne coordination Of the industry response to any proposed new standards for occupational expo sure to styene Several existing comm trees withm $Pi nave Kad activity m ;n,s area -- me Bemforcec Plastics^Composites institute's Occupational Sa`ety and Health Committee and the Polystyrene Sa`ety Committee The Vinyl Acetate Task Force is sponsor rg a SuOchronic study of the toxicity of vinyl acetate at haz'eton Laboratories (U k ). The Task Force nas oeen success ful m enlisting support from the European and Japanese producers The participants constitute over 90 percent of the world's production of vinyl acetate Washington Activities As a result of the past trend toward increasing gov ernment regulation of business and industry, this year the SPi Washington office increased the scope of its activities on Capitol Hill, in the Federal agencies and m the executive branch. More active participation by sev eral SPi member companies on a variety of issues has fortified the presence of the plastics industry m Washington. The SPI Washington office continues to coordinate industry involvement and response to pro posed regulations, as well as actively represent the industry at public meetings, hearings, and legislative proceedings. While activity on product liability, TSCA, OSHA, cancer policies and small business concerns con tinues, energy and feedstocks availability again has emerged as the top priority at present for the plastics industry, in this area, SPI Washington launched several successful efforts, including efforts on Capitol Hill, at the Department of Energy and elsewhere. SPI's Washington manager of federal government affairs re cently testified before the Environmental Protection Agency (EPA) supporting its proposed rulemaking to suspend enforcement of the 0.8-gram per gallon lead phase down standard. He testified that `'it is important EPA understand that the impact of materials shortages and escalating prices is felt by literally thousands of small companies and their employees." Further, he explained that "the negative ripple effect on the economy of unmet production commitments, cost es calation, slowdowns, lay-offs and the like directly result ing from shortages caused by the aromatic gasoline competition could be very serious." He recommended that "EPA m its rulemaking give stronger consideration to the needs of the petrochemical industry and seg ments dependent thereon." In addition to this effort at EPA several SPI members contacted their Con gressmen and influential Energy Committee members to urge priority treatment for all petrochemical feedstocks and a guaranteed sufficient supply of raw materials so critical to the plastics industry. These special SPI requests for individual action on key legislation and regulation have generated em couraging responses and further increased SPi recog nition in the government relations area. As a result, Congress is better informed as to the vital needs of me plastics industry, particularly as related to feedstock needs and vulnerability to materials supply interrup tions. Another highlight m the energy area which has Oeen monitored by the Washington office is oil decontrol and the windfall profits tax. The House just recently adopted a Jones (D-LA)/Moore (R-IA) substitute to the Ways and Means measure H.R. 3919, by a 236 to 183 vote. The alternative would lower the tax rate of the extra revenues to 60 percent and would phase out the upper tier oil tax by 1990. The bill would net the government an estimated $23.3 billion over the next five years which is two billion more than the President's program but 4.5 billion less than the Ways and Means version. In addition to liaison with Washington policy makers, the Washington office has monitored over 5,000 House and Senate bills this session providing analysis and helping coordinate SPI activity and response on issues. Coverage of the Washington scene included atten dance at an estimated f 00 days of congressional hearings, extensive contact with member company Washington offices, liaison with special issue coali tions, related trade groups and others >n addition to White House contacts on Wage/Price control and infla tion. The climate of scrutiny of industry will continue m 1980. With continued environmental and health regula tions emerging, the SPI Federal Government Relations Committee in conjunction with the Washington office is challenged with a broadened mandate to coordinate the development of strategies for the presentation of SPi positions to Congress as well as providing a mechanism for the implementation of the Public Affairs Committee priorities m Washington. SPI-22192 N PE/79 Following 2'/2 years of incense preparation and expectation, the National Plastics Exposition opened its doors in June 1979 with a record 47 473 registrants visiting :he show during the `ive-aay period. Held in Chicago's McCormick P'ace, NPE/79 set new records 'n all categories including the record attendance, which averaged nearly 10 peop'e per minute visiting the show This was a aramatic 10 percent increase over the previous record of 43.013 postea for NPE/73. and a significant jump over the 37.559 attendance mark set at NPE/76. NPE/79 was truly international, with over 4,000 foreign visitors from 60 countries, including a delega tion from the People s Republic of China. Records were not only set m attendance but also by exhibitors, topping the previous record of 469 set at NPE/76. This year's show saw 504 exhibitors utilizing a total display space of over 330,000 net square feet. For the first time in NPE's history all three levels of McCor mick Place were used. The previous record display space was 290,000 net square feet during NPE/76. it was the general consensus of NPE exhibitors that the show was a great success, based on the number of inquires, the canber of visitors, and the potential busi ness prospects visiting each of the booths Heid con currently with NPE was the National Plastics Confer ence This highly educational conference drew nearly 5,000 people for the 16 sessions spread over a four-day period. The SPI booth at NPE/79 featured Energy ' A mockup of an oil Darrel was used to dramatically illustrate the fact that plastics products, generally -egarded by sci entists as one of the most efficient uses of oil and natural gas. require less than 1.5 percent of these resources to produce the raw materials from wnich plastics are made. SPI literature on energy available in the booth included information on how plastics save energy and what industry members can do to help achieve an energy-efficient America and to attain adequate sup plies of available petrochemical feedstocks for plastics. The Plastics Industry Hallmark was introduced at the exposition with information on its use made available m the SPt booth. Show week also included the Plastics Hall of Fame Dinner, which featured former President Gerald R. Ford as guest speaker. Ribbon cutting ceremony marked the 0parting 0t NPE/79. Officiating at the ceremony were (top left photo, left to ngnt): Ralph L. Harping, Jr.. SPI president; Frank Sam. president of the Chicago Convention Bureau; H. R. Hutchinson. NPE/79 chairman; John Sevcik. general manager of McCormick Place, representing Chicago Mayor Jana M. Byrne; SPt chairman Iver J. Freeman. Package Machinery Co.. NPE/79 vice chairman Ray Ross. Cincmnatt Milacron, ana SPI gen eral manager Thomas J. McGrath. The SPt booth featured "Energy " A mock-up ofan oil barrei(a! bottom leftfshowed that only t S percent of oil and gas consumotion is required to produce tne raw materials from which plastics are made. Mr Harding discussed the energy situation with 6. J. Fisher of American Cyanamid. Exhibitors at NPE/79 (above) set a record. At the snow. 504 exhibitors united a total display space of 330,000 net square feet. For the first time >n NPE history, alt three levels of McCormick Place were used for display SPI-22193 Plastics Hall of Fame ir Ocrccer f972. the P'astics Hail of Fame was estaohsned to recognize those individuals whose accomciisnmems have conr'cuted most sign.ficantiy to me growth and success of the plastics ndustn/ Each year nominations are sought for iv rg or posthumous canciaates A selection s made based on the most outstanding Qualifications resented P-esentation of the Han of Fame sculptural award accompanies induction election to the hail of Fame s a distinct honor 'mat sets ts rec:cents apart from their peers Originally established oy Modern P'astics magaz re -n cooperation, with me Scc.ety of the P'astics industry, the Han of Fame has been sponsored and administered by SP1 since 1977 in 1978, seven cardicates were eiecteo to me P'astics Hail of Fame mauction of me seven men took cace during the Hail of Fame Dinner, helc during NP&79 C- WILLIAM CLEWORTH offered outstanding support to the development of new machinery and materials dur ing the critical years of World Ward 'ntheDOSt-waryears, he provided strong encourage ment for plastics innovation and market development. A pioneer in plastics communi cation. ne started the Cieworth Publishing Company in 1942 PAUL J. FLORY developed lechniQues lor measuring and improving me constitution and properties of plastics, rubber and fiber His research m industry and academic sur roundings led to Ins oemg awarded the Nobel Pnze tor Chemistry m 1974 His contri butions on polymeric materials nave been essential to the growth of the plastics industry W. BRANOT GOLDSWORTHY 15 Oest known for his pioneering ana continuing work ,n me development ot puitrusion He also developed muen o< me lechnology used m modern hiament winding processes, me use of plastics m automotive applications and matched metal die molding for rein forced plashes He holds 60 patents. JAMES FRANKLYN HYDE earned Out the first successful research leading to commer cial production ot silicones. He was also a leader m fundamen tal as wen as practical research in the field of organosiiicon compounds Dr Hyde was named Perkins medalist m 1971. one Ot the highest awards for applied chemistry m me United States MILLER G. SHERWOOD was a pioneer m m|ect>on molding production and introduced many plastics products into the automotive and appliances fields He is known as a 'help ing hand' throughout the Mid west because ot his counseling on moifler management. He founded Michigan P'astics Products. me m 1946 ISLYN THOMAS, 0 8 E . an industry leader m the mold and die industry, was active m the production ot essential prod ucts during World War II He also contributed to the devel opment ot the toy and housewares markets. He is the author of the first book pubiisned on injection molding, m/ection Molding of Plastics CARL H. WHITLOCK de signed and developed original materials handling equipment that helped tne plastics indus try move into mass production These include the pneumatic hopper loader, the first re mote-powered vacuum hop per loader and tne iirst multiple loading system using smgie vacuum pump SPI-22194 Operating Units SECTIONS Eastern Section Now acrrimsterea rrcn more eff'cent and convenientiy ccated offices r To:owa. New Jersey, me caste"! Section started prod'-ct.on of a s ice.cassette program dealing wth the plastics indus try n me stated New Jersey This will be a test program, and 'S intended to im pact on egisiators, prospective indus try employees and me general public, if successful, 'be program will be followed n other states densely populated oy in dustry The sect on s annual conference, cal led "E-CON." has grown rapidly during ts five short years of existence E-CON IV featured speakers from the Depart ment of Energy, private industry and consumer advocacy groups, and was considered the most successful yet. The section's Southern Chapter had 'ts first mim-conference type meeting, and will make this an annual function. The Mid-Atlantic Chapters fourth an nual mim-conference attracted a record number of participants. Midwest Section Work continued on the development of Michigan and Northern Ohio Chap ters whicn, it is hoped, will be fully oper ational by mid-1980 it was decided that the section, m cooperation with the Financial Manage ment Committee, will promote and sponsor seminars on "Cost" throughout the Midwest m conjunction with the Financial Management Manual. A "traveling road show" was devel oped on "Energy Feedstocks and the P'astics Processor" Public affairs con cerns on energy and packaging legisla tion in the midwest states have been a key memoer activity in the section. New England Section Following the SPI Board of Directors' approval of the establishment of a New England office, Patricia Brooks was hired as New England section manager. A concerted membership campaign was undertaken within the section. Seven different mailings were made to nonmember companies m the six New Ergiand states To date, 12 companies have |omed SPI to participate m the af fairs of the New England section. The Annual Spring Conference at tracted 75 registrants. Presentations were made on technical and manage ment sublets 8 A heavy schedule of meetings and conferences -efiected the ever-increasing activity of ;ne many ocerating units which make uD SPI Western Section Among the section s most notable ac tivities was a number of legislative brief ings intended for members to establish liaison with state assemblymen and senators One such oriefing, held m Sacramento, was cosponsored by the section's Plastics Industry Response Committee and the Southern California and Northern California chapters. The bnefing featured 30 displays of member companies' products. More than 200 industry representatives spent the day visiting legislators, and hosted 50 legis lators and other government figures at a reception that evening. The Section's Molders Division spon sored a bill m California that would allow molders to legally dispose of obsolete tooling; the obsolete tooling was the source of severe storage problems for many molders. The Dill (SB 451) unani mously cleared the California Senate and the Assembly with no opposition, and was signed into law by Governor Brown. The. law becomes effective January 1. 1980 The Western office was active m a letter writing campaign in support of a California law which makes it illegal m that state to duplicate a product by the direct molding process and then sell <t. The legislation became effective on July t, 1979. The resuit of a reorganization, the Odors, Emissions and Combustibility Committee was set up to handle prob lems m those areas. The section's 36th Annual Confer ence drew more than 1.000 partici pants DIVISIONS Epoxy Resin Formulators. Division The Division expanded its activities to 'Pdude regulatory affairs, test method development, and market statistics analysis Recognizing the need for internal technical training m formulating with epoxy resms. the division is preparing a formulating "primer.' This is intended for use by formulators to assist m de veloping qualified personnel within their own laboratories The initial efforts will be directed towards the compilation and categorization of existing nonprop* netary technical information. The Regulatory Affairs Committee continues to be the backbone of the Division. Market statistics and end use concerns are two areas with increasing activity. Expanded Polystyrene Division The divison's annual conference drew a record audience. A contingent from the British EPS Association was present, and groundwork for promotion of international standards was laid during a joint meeting of EPS Executive Committees and United Kingdom representatives. Membership continues to grow m both the Shape and Block Groups of the divi sion, with a 20 percent increase over the past year. Work was militated toward pub lishing the first EPS industry Directory A Speakers' Bureau was established SPI-22195 the objective of educating plastics engireers on FS -ecnroiogy P'ans were approved for a new marveling program on expanaea poiysryrene as an nsuianon material. T>e SfocK StarcarGs Committee contin ued to assist :he government engineering firm charged <v :H 'esporsibmty for -evision of me Cecerai scecxation for EPS nsuiaion ocara ~"er~ai 'esinc prcceeced with 20 moicers cane catirg Resets wni pro-.;ce vauacie bccumemst'or for me PedSr3' T'ace Ccmm.sson a '"3' 'u.ing on thermal rsuanen value c:aims The Technical Committee contracted with Southwest Pesearc- to conduct com bustibility tests on extenor sheathing and roof constructions The Sheathing tests wm provide 'hout to Feoerai Department of Housing and U'ban Development, and the roofing tests wui estactish safe use data consistent with proposed changes to the model codes The Code Committee was active m pro viding testimony at numerous state code hearings, as weil as input irto the building fire insurance 'ate problem The Shape Moiders formed marketing ana technical committees, to develop the industry s production sophistication and improve ts knowledge of its advantages over other materials. Fluoropolymers Division The ongoing membersnip campaign brought four new members into the divi sion. The poiytetrafluoroethyiene resin statistical report was revised and proved highly successful. The division developed a report, writ ten m layman s language, on recom mendations from the National institute for Occupational Safety and Health on decomposition of fiuorocaroon prod ucts. The Technical Committee's six sub committees and five task forces were very active, especially m tubing, tape, expansion joints and bearing pads, where proposed standards were de veloped for submission to the American Society for Testing and Materials, Foam Cup and Container Division The division continued its public informa tion program aimed at answenng ques tions on environmental issues, in addition, the use of large foam cups for cold dnnks was promoted. Aimed at fast food outlets, this program points out the advantages of these cups, including one cup conven ience for hot and cold drinks. Case histo nes are placed m trade magazines, and stores are provided with pomt-of-purchase material to increase the public's awareness of the advantages of foam cups. Foam Tray and Carton Division The group cortinuec to moniior state and local attempts to car the use of `oam '"eat 'rays th-ough aws 'eauinng e'ear trays Several -ew programs cesgred to promote the w'der use of foam trays ana canons n rew markets as wen as a>'eady estaciisned areas are oeng oiarred Furniture Division The Civ'Sior cortinuec to work ciose-y with the Polystyrene Safety Group n planning and executing ?SG teshng projects Tests conducted by the South west Research institute or a c:ose;y packed, fully fumsned living 'ocm pro vided `avorabie data on the igntion and combustibility characteristics of poly styrene and wood living room furniture. Much of the division s activity was centered on planning for its next confer ence ana Foiy Awards program Poly Awards, presented every two years for Outstanding contriputions to the furtherance of the plastics furniture industry, stimulate interest on the part of furniture manufacturers Machinery Division The 1979 annual division meeting was the largest division meeting ever held. Four companies were admitted to division membership at this time A seminar on products liability was he'd during the Annual Meeting. Work continued on products liability matters, and on the data bank on legal prece dents m products liability cases, pre pared by the SPI legal counsel Five recommended safety standards on various types of plastics processing machinery were formally submitted to the American National Standards Insti tute for eventual promulgation. Twenty-one others are under prepara tion. Moiders Division As a result of the successful Second Annual National Moiders Conference, the division confirmed this meeting as an annual event. The popular manual. "Standards and Practices of Plastics Moiders" was reviewed, updated, and reissued. The manual covers commercial and admin istrative practices: contractual obliga tions. production and handling of tool ing. charges and costs, inserts, component parts and materials, pack ing and shipping, limitations on inspec tions. claims for defects, and patents. Engineering and technical standards are covered for 18 materials, and keys to successful design of plastics molded parts are discussed. Working with the Machinery Division, *,e Moicers D'v-s.C'" ^ave: "a accc.ai `0 'eccmmencec 33fery s'anoaras -c' auxiliary ecu.pmen: ana aLlorratic compress.OH ana :'3-sfer moiamg equipment Moldmakers Division A survey of moidmaxer memoe's esuited n a ccmpiere rewrite oi me Moic Buvers Gu'Ce 'He -oaatec* ms ouC'icar.cn will oe -e ssued as 'Cuspms ara P'ac' ces cf me McdmaKng ndustry. ard s excec:ed off me pass es Dy early 'an `979 A Second Lacoi 3u%ey got uncer*ay The statstes *nen comca'ed with those from me previous -,ea' wui provide Key direction .r moidmane' per sonnel development The Division eiected to camcagn `or the adoption of a national apprentice training program with a common cuncuium method of evaluation and testing The obiective 'S :o establish 'ecognizaDie |ob skills to overcome the man power shortage. Organic Peroxide Producers Safety Division The Division filed comments with the Department of Transportation on the advance notice of proposed rulemak ing. and supponeo me -eduction of ac tive oxygen from 11 to 9 percent m MEK products, in so doing, the CPPSD re affirmed 'is commitment to tne safe handling, storage and transportation of organic peroxides An m-depth search for toxicity litera ture on specific organic peroxides was begun The ultimate purpose of the search is incorporation of the literature mto the SPI data gathering program for all toxic substances. The Plastic Beverage Container Division The Division had an active year build ing its organizational structure, which now includes an Executive, Technical. Public Affairs and Information, and Re cycling Committees. Permission was granted by the SPI Board to institute legal action against the state of Hawaii because of its ban on plastic beverage containers. A suit was filed, and a hearing wifi be held. Financial support was given to other packaging organizations m battling mandatory deposit legislation in a number of states. This includes ihe Beverage industry Recycle Program (8.1 R P.) of Maryland. The committee is participating on a trial basis with the organizers of B.l R.P to take back PET beverage containers from the consum ers. The Recycling Committee held a SPl-22196 9 numcer of meetings arc s n com munication wth 'ecyciers The corrrrir:ee s montcmg me quanty of post consumer cone scrap with a view :oara recorrmenping sceci'icanons ara s -nvesngatfng secondary uses for ire bo:,!e scrac '"e comm-ttee .s enccuragec ^:r re resuits to date The Plastic Bottle Institute p9i exoarcec r$ 'g.-iy successful -`or^aro- c-og-a-^ -q rc vce oacKg'Ourc briefings wen ~a;cr con sumer a"a environmental organiza tions. "his 'S in aOCitiCn ;o the continuing effort to reacn major newspaper and TV editors with reformation on tre 'ole of plastics comes relative fo me major is sues of energy, solid waste, neaitn and safety During the past year, a film strio for junior and senior high school stu dents was deve'ooed FBI's technical program included the Duplication of 14 new ana revised Qual ity control test methods, which received wide acceptance m the dome producer ana user industry Plastics Pipe Institute Throughout the past year, the Plastics Pipe institute sought to further define its function withm the industry Although a nunoer of prior PPi activities now fall m the domain of other groups, those that continue are not only important to the groups that PPi represents but also to the entire industry Recognizing that the advancement of plastic pipe mto various markets is cased on the continuing education of designers, specifiers and installers, the Fuel Gas and the Large Diameter Polyolefin Piping Divisions embarked on a major educational and promotionai program The Fuel Gas Division pegan to develop a five-phase slide program on recommended installation practices for gas distribution systems, designed to support and assist the utility com panies m their compliance with man dated Federal programs, The Large Diameter Polyolefin Piping Division began assembling an audio-visual slide program and supporting brochure for presentation to local, state and Federal environmental protection agencies. Among the many other ongoing ac tivities of PPi. the Statistical Program as well as the various technical activities, and technical reports continued to pro vide a much needed service to the in dustry. Diverse programs, such as the updating of literature, the Hydrostatic Design Stress Committee, the con tinued participation/representation with numerous standards-wntmg organiza tions and Federal agencies continued to express PPI'S commitment to the plastics pipe industry. 10 p-oauc: design competitor's were a ":gngnt ol mgry 3?l commirtee cor(ererces t>-s 'eaesigrea Dumper system was me Grana Design Award winner at the PP-'C 'nst.tues 34th d.nruai Conference Mo.cea Dy the WooOai Cwision. LQF P'ast'cs. `np the system incorporates a sheet molding compound oumcer face Dar and two diago nals Polymeric Materials Producers Division Due to a reorganization, the Chemical Manufacturers Association's plastics group requested operating status withm SPt The SPi Board granted the request. Two meetings were held this past year, Doth devoted to basic organiza tion. SPl activities were explained, and the groups Executive Committee con sidered what programs 4 should under take Profile Extruders Division The Division s October meeting fea tured a presentation by the president of a major tool and die company and cov ered developments in the manufacture of small to medium size dies and stamp ings. Also featured at this conference was a speech by Sid Gross, editor of Modem Plastics, who discussed "Economics. Regulations and image," and SPI Constituency Seminars on "How to Deal with the Media" and "Working with Legislators and Reg ulators." The annual combined meeting of the Profile Extruders Division and the Vinyl Siding Products Division included pre sentations on European technology and design m building products, vinyl foah technology and melt temperatures m extruders. The Wmaow and Door Committee continued to be active with everincreasing interest by industry mem bers. The Standards Development Subcommittee is progressing rapidly m the development of standards. A first draft was written and contact with the American Society for Testing and Mate rials was established Reinforced Plastics/ Composites Institute The irsttutes occupat-ora. ~eaim program made signf'cart str ces `crwara tms past year The ` fst ~,eciC3i study, reoorted by the Unive'Sitv of C.nc '-fati Medical School, nc cared mat no 'CenMiaoie adverse health effects ex-st among agrcuD of fab'catcn workers ooerat-rg under present standards Other studies continued rcuc ng a state of me art SLr\ey of ranufacturmg tecnno'ogy "he mst-tute s me `oca1 point `or a $1 4-m,ii;on `una '3 $mg e"0d oy me industry m support cf mis reaim ana safety activity in me meantime staff ana officers nave assisted Occu pational Safety and Heaim, Administra tion personnel m working f e'd sessions n the southeast ana northwest T*e institutes annual conference drew a record attendance, with an mcrease of 30 percent from the previous year rhe annual market report announced at the conference reflected a banner year for product shipments ,n each of nine user markets, with overall growth of 11 percent for 1973 The Corrosion-Resistant Structures Committee published 16 product stand ards througn the American Society for Testing Materials, with 42 other titles m draft form. This committee also put maior effort into its cooperative program with its customers, preparing a compre hensive Quality Assurance Coce The RP'C Distributors Committee consolidated its identity withm SPi by holding several meetings and outlining growth plans The Press Molding Com mittee attracted several hundred atten dees to each of two different piant tour conferences m the Midwest. Rigid Plastic Container Division A "Blue Ribbon" Committee was formed to analyze Division operation and recommend future programs and organization. Member recruitment was emphasized, including material sup pliers for the first time it was decided that meetings wilt em phasize educating and informing mem bers of industry developments and government activities that will impact on their business operations and market ing efforts. Oivision programs will be developed as necessary to react to situations not directly covered by other SPI activities. Meeting programs now include several speakers on manage ment, industry activities and new pro duct developments from suppliers Sheet Producers Management Division The Division revised and expanded its statistical program, wnich is now conducted on a monthly basis Mem- SPI-22197 cers"'D n re d-'/is.cr was e^carced to rciude resip suoDne's ; .vas agreed rat ris associate 'T,emcersno categopi would rciude vourg privileges it was decioea rat ce'ore adopting re orcoosec AcrvoritMe-BuiadieneStyfene Sheet Standard, a 'estmg progran-^cucoe ^ce^er'ea a reaoesi was ~aae "'at 3ac''Cr5i data oe ocaired ce'cre -rs. c^g `e croposea i3ci'remyere 5ree: Si-a-aard Structural Foam Division 'Te dr Annual Ccarr. Conference and Pans Cornoetit.cn was reia with 2S0 representatives attending. Twenty one presentations were T-ade on apoiicat ons ana technology n the structural foam mauStry Awards m re structural foam parts competition were given for functional application, nnovat;ve de sign and the Conference Choice Tne Division cegan a comoustiOHity program on structural foam procucts whtcn is fce>ng conducted at Underwrit ers Laboratories m West Gloucester BI Urethane Division A position paper was developed on flexible urethane `oam r various appli cations The statement will now be pre sented and discussed with interested organizations ana agencies, such as the Consumer P'oduct Safety Commis sion. the National Fire Protection As sociation, the Carpet institute, tne Na tional Association of Bedding Manufac turers and others. it was decided to launch an ex panded informational, communications and educational program to puoiicize the urethane industry position to impor tant consumers ana users, as well as code bodies, the fire community, ar chitects, and engineers. A promotional program to publicize the merits of flexi ble urethane foam in bedding and cush ioning continues. A publication entitled "How to Use Polyurethane Foam Safely" was prepared and approved for wide spread distribution to users and the general pucnc. The Division worked with the En vironmental Protection Agency to pre vent restrictions m the use of fluorocar bon blowing agents m the manufacture of urethane foams. Vinyl Dispersions Division Technical and management issues were examined during the 61 st Busi ness Meeting of the Division. Discus sion included those issues which are of general interest to the membership for further study, including dispersion and powdered resins and environmental regulatory and legislative concerns. Vinyl Siding Products Division A newiy estacushea Code Comrvttee empaled on a coce ooay raison oro3'am "he c'dccsed 3icmg standard. D3679. was 'earshecanc sschecjied `or second cai Oting oy me Amercah Society `or Testing and Matenais ~-e Technical Committee completed several stud es nvowmg fire tests Hazard araiys.s s an ongoing orogran oi 'e Safe Use Subcommittee 'nsuiaTon Studies rv.oiving a.ummum anc /1nyi siding were ccmpietec arc a repon sucm'tted 3hase i of the stLdy to develop an accelerated weathemg rest nas oeen completed Tne Weainerabiiity Commit tee iS working on an interim recon re flecting two years of data coi'ecnon and study Tne annual combined meeting with tne Profile Extruders Division neid .n Fecruary attracted 200 members COMMITTEES Committee on Distribution This past year the Committee di rected its efforts to two maior areas; specific projects to support, service or promote the plastics industry's distribu tion efforts, ana programs and confer ences to educate and inform industry distribution personnel. A survey was taken of committee members on their companies' metrica tion efforts m the areas of packaging, labeling, orders and related shipping and distribution documents. Two surveys were conducted on dis tribution performance measurement methods. The first was a quantitative survey aimed at developing valid statis tics pertinent to distribution patterns and the relative cost of distribution and customer service m the plastics indus try The second survey was a qualitative survey to ascertain what measurements and criteria are being employed by member companies to measure and control distribution performance. A three-year historical analysis of tank and hopper car utilization reports was compiled for major product groups. The compilation and the supporting survey reports showed a deterioration m rail road service. This formed the basis of the Committee on Transportation's suc cess in limiting the railroads' rate in crease in 1978 to 5.5 percent, rather than the original seven percent re quested A joint committee was formed to study the feasibility of consolidating the Ccr' ':'tee on '2-'SCC''3' c* o" '~e -CHri-gg q(- g,s;r c.: or- Educator programs ana oci-'ererces conducted jur-'g '-e oast .ear nciucec an mventory Marage^e-t arc Conrroi Conference ana A'crxshcc brother rreetmg `ea'urec E"'ergehc< Response Systems n Ac: on Financial Management Committee P;annr-g. vo-ne Of '"e *Cuf/c ume F-nancra.' Varage^en vta^ua.' `or P'ast'cs Processors was cue sred Thi$ volume covers the :ecnr goes ara cocedures that are e"ec: ve " c:a<-h'^g a company s operations 'ncucea are discussions on cov pianm-g and budgeting, capital investmen: piannng. ana cash management The nighty successful two-day worksnoos. designed ro 'nrroduce each of :ne four volumes comprising tne Finan cial Management Manual, were com pleted The committee agreed :o aeveioe a repeat of these workshops for 1980 A series of four, three-nour sessions, collectively entitled `Managing for Prof it. was presented at tne National Flas hes Exposition The senes was well at tended ana very favorably received The Fortieth Annual Labor ('978). the Eleventh Biennial Salary (1978). the First Insurance (1977). anu (he Six teenth Annual Fmanoai ana Operating Ratios (1978) Surveys of piastics pro cessors were published The committee also continued to explore means by which it may be of greater service to captive processors Food, Drug and Cosmetic Packaging Materials Committee Washington activity m developing the idea of nsk assessment held great in terest for this committee Meetings fea tured discussions on the topic, plus Government speakers on other critical policies of the Food and Drug Adminis tration and the United States Depart ment of Agriculture which will affect the development of indirect food additives regulations m the future. Continued committee programs in cluded monitoring of activities at sev eral government agencies which are concerned with packaging materials. International Committee Two overseas trips were sponsored by the committee m conjunction with the United States Department of Com merce. The first was a successful tech nical semmar/mission to the Soviet Union m November, during which some 250 scientists from all over Russia at tended a five-day technical seminar 11 SPI-22198 _he secora .vas a ^ceoraoe Catalog bxniG.tior `eat'jr.ng re newest tecnncai and proouct developments of me U S QiastiCS nCLStry 7hg exriQitiOn /vas snown :q enthusiastic audiences .n lran, Egypt. Syria and Greece The committee arranges for a delega tion of seven members `-or me ='ecces Peouonc of China :o vsit NPE _t9 An oif'csai Drooosai to conoucr a 'rraae Viiss.on-Tscr,nicai Sem-nar to Te Pecc e i 3ecuc-c o( Cnma n tggc vas Sucm rtea m me Chinese - asncs Autncn^es ~ .mqcv y= v-s rdcarea initai .-teres; ~ came cat.-g The committee, ..-s ecmurct'Or- .vim me Deoartnent of Commence. worked on cosDonsorshio of a U S group stand at the international Trace Fair for P'astics and Rubber m Dusseicorf. Wes; Germany -r OctoDer 1979 Thmy-one u S firms will participate m the Group Stand The Multilateral Trade Negotiations Trade 3iH presently before Congress received suDstantial input m the `orm of testimony and other active participation py mempers On the whole, the commit tee s satisfied that the bill will be ot substantial benefit to the u S. plastics industry Ad Hoc Plastics Microwave Oven Cookware Committee interest m this ad hoc committees work remains high, with the past year Demg one of progress and achieve ment The committee petitioned the SPi Board to change its status from an ad hoc to a permanent operating unit The Standards Subcommittee com pleted its work on developing the criteria for a minimum performance standard `or reusable cookware Tenta tive test methods were developed for use in such a standard. Approval was given for the next important step toward the development of an industry stand ard, passing all the information to an American Society for Testing and Mate rials' committee for review and consid eration. A$TM was formally requested to set up an appropriate committee to carry out this task. The committee approved m principle the funding of research at an independ ent laooratory on test methods for autoigmtion and flammaDility using a mic rowave source. The ConsumertLaOe'lmg Subcommit tee completed its survey and analysis of plastics microwave oven cookware in dustry labelling practices. The sub committee is near the completion of its recommended glossary of terms. Work was earned out on the development of plans to widely publicize tne glossary to the general public and oven manufac turers. The deveiooment of programs 12 r-e Co^^'-tee an Resin 3tat s: cs puC'srea is 'Cum Annual Major Markets Sun,ev nfiustry ecer*S I'Om three rr'ajOr markets area ctec! continued g'owtn for he cuasucs ncustry at a ocess confer ence n New r'c'< Rcnaid Free laoove. eft) 3org Warner Chemica'S Division, covered automotive William P `ammono iacove. ngnr). Striding Materials Grouo. GAF Coro . sooks on bunding construction Peter F Berend ingni). Product Oesign. Ruooermaid. nc. dis cussed consumer markets aimed at consumer education in the area of elastics microwave cookware was also begun PVC Meat-Wrap ad-hoc Committee The committee is involved tn conduct ing research on the effects of plastics packaging in the meat preparation in dustry The study is being conducted with the Harvard School of Public Health m conjunction with the Joint Labor Man agement Committee of the retail food industry Radio Frequency Heating Committee The oldest standing SPi service com mittee, this unit continues to concern itself with rules promulgated by the Fed eral Communications Commission. The committee developed a recommenda tion with regard to a proposed revision of the FCC's procedure for measuring radiofrequency emissions from indus trial, scientific and medicat equipment, it was agreed to: request an extension of rule making concerning the revision, examine the data which is intended to justify the need for the revision, and if possible, determine the economic impact should the rule be promulgated. Committee on Resin Statistics The Committee published the results of its fourth Annual Major Markets Sur vey. the only known statistical survey of its kind. A proposal to develop an Annual Wor'dwide Statistical Program on Plas tics Resins covering Production, Im ports. Exports ana Consumption ,n seiect major countries was submitted Approval was 'eceived from tne Euro pean Council of Chemical Manufactur ers Federation, me assoc.anon of P'astics Manufacturers in Europe ana me Japan Plastics industry Federation While if was suggested that me initial program cover tne years of 1976-78. it will probably not be implemented until i960 for the year 1979. General Motors agreed to participate m tne Automotive End-Use Program, joining Ford and Chrysler There is now sufficient participation to proceed with the development of the program Organizational work was started for a second Plastics End-Use Survey mat will cover tne Appliance Market. Committee on Transportation Due to broadening aspects of the traf fic function, the name of this service committee was changed from the Traf fic Committee to the Committee on Transportation. The Committee's most significant achievement was a protest against a general rate increase sought Oy the rail roads. which was to become effective in December 1978. Upon the protest by the Committee, tne interstate Com merce Commission limned the sought 7 percent increase to 5 5 percent Plas tics was one of only five commodity groups to receive special ICC consid eration in this proceeding Savings to SPI-22199 re cias'ics fdusm,' wi.i amourt *0 $4 3 rn or on 3 'ecc'-ng annual oas.s. The committee conc-iied a White Paoer anaiyzmg the nign level of orofitacmty ro me 'aiiroads n their movement of pias; c resins. cased uoon cost araiysis anc comparison with the rates accucacie ro other commodit es This oacer was -w ceiy disseminated I'-'ougrc-t -e 'abroad rdustry ana nas a so seen `Lh'is^ec -c staff mgncers of he rterstate Commerce Commission w m -escect -o --ctcr came' service me Committee successful.-/ argued agamst a orcoosec 5 pexert increase aopiicaoie to piastics 'esins moving witnm Easter Central Territory and a general 'ate 'estrucfunng n Southern Territory wnicn would rave imcacted corn res.ns ana manufactured pro ducts. Other motor earner terns addressed Cy the Committee meuded initiation of an evaiuaron --e o'esem "'e-gn; ciassifica: on 'atmgs on cacs and cov ers. rates aoDucaoie to o'astic cores moving jvitmn Central States Temtory ana m Cai forma, anc a procosea motor t'eign; Classical.on 3oarc rar ff c-ange to require 'leak-proof cosures on piast'c Potties Tk>e Committee sponsored a pare' d'SCussion with senior management from four 'a-'roads. `ocusing upon :ne 'a i mCv,ement of oias; c 'es^s. rates on piast c 'es.ns ana me cnarg-ng trans- porta: or environment A'so oahrciDat- ng -r me C'ogram mg Director of tne 'CC Bureau of Economics, ana ansporatior consultants The Committee expenaed consider able effort m analyzing the core issues of proposals to cereguiate me 'an ana motor earner industries and. with the Committee on Distribution. is preparing a position paper relative to this subject SPECIAL PURPOSE GROUPS Appliance Council The council continues to worn with memoers of the Housewares Manufac turers Group m furthering the interest of tne plastics microwave oven cookware industry The Council aiso monitors regulatory activity relating to plastics appliances and aierts members to threatening legislation Cutlery Manufacturers Group The group continues to gather market statistics The statistical reports now oreak out retail and institutional sales separately Housewares Manufacturers Group This group monitors standards and 'eguiations, as well as preparing testi mony on behalf of plastics housewares manufacturers for presentation to Gov ernment agencies. This past year's activity was mainly centered on monitor ing activities related to a proposed stan dard for combustible solid supplies. Plastics in Construction Council The council was extremely active in the related fields of codes and stand ards. A major portion of council ac tivities involved specific energy conser vation regulations and the promotion of code standardization. The council's Insulation Committee worked with the Urethane and Ex- panaed Polystyrene Divisions and was successful m updating the Building Of ficials and Code Administrators Model Code, effecting a position that is consis tent with tne other model code grouos tn addition, several states and maior city building departments were contacted with regard to problems with the "re sponsible application" of foam plastics. Another ongoing activity 'S involve ment with the Department of Energy Along with written comments m re sponse to proposed regulations, this group participated m a meeting with DOE to inform those involved of the im pact on the industry of a hastily drawn and incomplete set of regulations. The Trim Committee began prepara tion of a proposal for the various model building codes regarding plastics trim To accomplish this, work will continue on a series of fact-finding combustibility tests. The Light-Transmitting Committee reviewed the modei solar code being promulgated under the auspices of the Council of American Building Officials. This work should serve to assist m the uniform development of solar heating and cooling standards for the Depart ment of Energy This work will have a definite impact on the potential solar col lector market. Plastics Drum Institute The Institute s members agreed on final language to be included in the peti tion to the Department of Transportation for warning and nonuse embossment labeling. This will be submitted to DOT it was agreed that an evaluation will be made of the possibility of participat- rg a/ :r -e A-e' car ==. 'cap a5scc 2. : cr r. -a.i read 'ests or ' gm arc ccerr'eaa curs a g - ag g f; 353 ^35 'eacred on cucisrmg lec'^'cai t ns for Closures Copy wi 1 ~cw ce orepared Becognizmg -econd't onrg as a -- ajor concern wilhin the institute "~e PD 1 selected a 'as* `crce *0 rvest.gaie ara deve'Op a oian of act:on Plastics Packaging Strategy Group T>-e n-en-Ders 'eve-wee me groups original ooject've--essert'aiiy '0 *ig- cans on ail types 01 cashes cacxag- r-g--ana deciaeo 'mat t^is ~ay "ave ceen too oroad r~ere,ore a^ ac-ncc committee was estaoiisnec 10 'eview anc reoefme objectives a -ecrah o' group objectives was oreoarea by me ad-ooc committee ard suomirred to me *uti committee for review The group was heavily involved in me financial support of the SPi awsuit against the Minnesota can on oiastic milk bottles The lawsuit was successful m the lower court and me results of the state s appeal are pending a decision The group is also financially support ing the work of an ad-hoc committee on risk assessment associated with plas tics packaging it is the obiective of thus committee to develop data wnicn hope fully will convince me Fooc ana Drug Administration ro apply me risk as sessment concept to indirect food addi tives. Polystyrene Safety Group The investigation into occupational exposures and environmental dis charges during the extrusion and injec tion molding of polystyrene was com pleted under the direction of Or Raymond Seymour of the University of Southern Mississippi. The test dem onstrated that emissions during plant extrusion and injection molding are neg ligible and readily handled by fumeremoval equipment. An article by Dr Seymour which set forth the results of the test was published in Plastics En gineering. Tests conducted by the Southwest Research Institute test on the ignition and combustibility characteristics of polystyrene living room furniture and kitchen cabinet doors provided highly favorable data. The group is currently monitoring studies bemg conducted by Arthur D Little for the Food and Drug Administra tion and plans to sponsor extraction tests of <ts own should it appear advis able. The group also maintains close liaison with the Consumer Product Safety Commission on petitions relating to polystyrene. SPl-22200 3 Financial Statements Balance Sheets May 31,1979 and 1978 Assets Casn m checking accounts and on nand Savings deposits Short-term investments, at cost (which approximates market) Receivables: Membership dues, less allowance for doubtful accounts, 1979.310,711; 1978,319,021 Accrued interest Other prepaid expenses and other assets Deferred charges--1979 National Plastics Exposition Fixed assets: Furniture and equipment Leasehold improvements Less accumulated depreciation and amortization Total assets Liabilities and Fund Balances Liabilities: Cash overdraft Accounts payable and accrued expenses Unearned membership dues Deferred revenue--1979 National Plastics Exposition Total liabilities Fund balances: General fund: Unappropriated Appropriated (note 6) Special projects funds (note 6) Total fund balances Total liabilities and fund balances See accompanying notes to financial statements. 1979 $ 59,408 20,010 4,895,318 4,369 115,984 13,724 34,737 1,145,164 192,261 73,322 265,583 84,516 181,067 $6,469,781 1979 $ 6 ^33 18,-96 3.053.273 4 675 58.879 17.260 16,033 310.C18 158,382 72,440 230.822 57.400 173,422 3.658.789 95,006 568,627 33,624 2,318,540 3,015,797 278,547 1,782,022 2,060,589 1,393,415 3,453,984 $6,489,781 47.942 487,871 57,154 73,845 666,812 323,161 1.495,286 1.818,447 1.173,530 2.991.977 $ 3,658.789 14 SPI-22201 Statements of Revenues and Expenses Years ended May 31, 1979 and 1978 Revenues Memoersmp dues interest Saies of literature Special projects Other Expenses: Direct: Membership services Legal and consulting Communications (public relations) Administrative Memcersntp promotion Directory Special projects--research, development, legislative and public relations Service operating units Divisions and groups Regional offices Public affairs committee Chemical Industry Trade Advisor Plastics Education Foundation Accounting Manual indirect program, administrative and general: Salaries and employee benefits Office supplies and expenses Rent Auditing and computer services Provision for depreciation and amortization Provision for doubtful accounts Other Less allocation of administrative expenses to National Plastics Exposition Excess (deficiency) of revenues over direct and indirect expenses Product liapihty expenses Excess (deficiency) of revenues over expenses See accompanying notes to financial statements. 1979 $4,145,888 402,581 83,924 3,039,534 38,884 7,710,811 1978 S 3.785.235 254,959 55.294 2.834.494 29.071 6.959,053 561,501 96,116 141,320 33,098 24,206 3,039,534 171,055 80,475 155,474 1,428,905 2__,000 _ 1,429,441 299.784 123,261 60,220 27,442 5,194 3,238 7,682,264 250,000 7,432,264 278,547 (36,425) $ 242,122 476,235 34,422 124,406 32.209 18,560 2.834,494 162,819 73,747 159,443 1.396.567 2.000 6.357 50,000 1.316.229 278.832 115,299 57,570 20,840 8,355 49,508 7,267,892 150.000 7,117,892 (158,639) (11,874) $ (170.713) SPJ-22202 15 O'-I'ul rents of Changes in Fund Balances rO,Jr* v{4ncled May 31, 1979 and 1978 *fei W' Balances a; beginning cf ,ear Excess (deficiency) of 'evenues over expenses Special projects funds aetditens Assessments Meetings and conferences Sales of literature Contributions in supoon of special programs Budgeted general fund aopropnation Other Special projects funds transferred to general 'und revenues and expended Appropriated funds expended Balances at end of year 1979 Special General projects funds funds $1,818,447 $1,173,530 242,122 -- ____ 2,039,898 -- 812,723 ____ 109,286 -- 60,846 -- 300,000 -- 4,888 -- -- $2,060,569 (3,039,534) (68,222) $1,393,415 See accomoanying notes to financial statements General 'unds 1978 Scec.ai Droiects `ijPCS 3 1.989.160 C 70,713) 5 1 226." 1 7 _ ' 377,36C ____ 655.720 _ 119.383 ____ 115,540 ____ 150.000 ____ 8.062 ____ -- $1,818,447 (2,334 494) (144.658) $1,173,530 Notes to Financial Statements May 31, 1979 and 1978 (1)Summary of Significant Accounting Policies The accompanying financial statements have been prepared on the accrual basis of accounting and include all material accounts receivable and payable, other liabilities and deferred charges. The special projects funds represent receipts from certain members of the Society participating in selected industry projects and certain budgeted gen eral fund appropriations. Such funds may only be uti lized m accordance with the purposes established by the participants and are in contrast with general funds, over which the Board retains full control to use in achieving any of the Society's purposes. Special pro jects funds are reported as revenues and expenses when utilized for their intended purposes, except that the budgeted general fund appropriations are expensed when appropriated. Fixed assets are stated at cost, less accumulated depreciation and amortization, which are being pro vided for over the estimated useful lives of such assets on a straignt-ime basis. Other significant accounting policies are set forth m the financial statements and the following notes. 16 (2) Retirement Plan The Society has a non-contributory trusteed retirement plan for all employees who meet age and lengtn-of* service requirements. Costs of the plan are funded currently, and for 1979 and 1978 aggregated $70,470 and $90,243, respectively. Unfunded past service costs amounted to $63,679 at September 1. 1978. the most recent plan valuation date. Such costs are being amortized over a ten-year period. At September 1. 1978, the assets of the fund exceeded the present value of the participants' vested benefits. (3) Products Research Committee Funds Effective December 3, 1974, the Society executed a consent order with the Federal Trade Commission which required, among other things, the establishment of a Products Research Committee for the purpose of conducting research into the uses and hazards of cellu lar plastics products. The research is being funded over a five-year period by various other respondents to the FTC proceedings. The Society is custodian of the Committee's funds and, at May 31.1979, held $621.795 ($1.991,823 m 1978) m checking and savings accounts for use by the Committee. Such funds are not included m the accompanying financial statements. SPl-22203 (4) Contingent Liabilities ine Society ~as oeen named or advised that t will oe earned as codefenaant m several ;awsuit$ These actions, .n the nature of product liability suits relating primarily to the combustibility of foam plastics, seek .udgments 'or substantial damages Counsel s of the opm on mat me inennood of unfavorable outcomes is remote (5) Commitments he Soc.etv s lease commitments `or o;fice spaces are as fci'Ows Year ending May 31 Commitment 1980 1981 1982 5136.268 123.590 113.250 1963 1984 1985 113.250 109.895 98.542 These amounts nc.uce me ease ot i"e See ety s e<ec- wtive office spaces at an annual -emai. nc uc -g charges for e'ectncity. ot Si C7 5CC per year ~"e ease expires in 1985 Certain leases are subiect to escalation provsicrs Cased on real estate taxes. (6) Appropriated General Fund Balances appropriated general fund oa'ances cons.st o' Cirec'ors Special Reserve furas for CaO'tai .morover^ents P-oauct :aDiiny Oi^er 1979 5 * 196 -- 1774 326 S'.782.022 1978 5 29 425 26 ~2' i 439 140 $1,495,286 Auditors' Report Peat. Marwick, Mitchell & Co CERTIMKD PI'HI.IC AC CO I' STANTS 341 PARK AVEN'l'E SEW YORK. S' E W YORK KliUJ The Board of Directors The Society of the Plastics Industry, Inc. We have examined the balance sheets of The Society of the Plastics Industry, Inc. as of May 31,1979 and 1978 and the related statements of revenues and expenses and of changes m fund balances for the years then ended. Our examinations were made in accordance with generally accepted audittng standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. in our opinion, the aforementioned financial statements present fairly the financial position of The Society of the Plastics industry, Inc. at May 31,1979 and 1978 and the results of its operations for the years then ended, m conformity with generally accepted accounting principles applied on a con sistent basis July 9. 1979 SPI-22204 17 Officers and Directors 1979-1980 OFFICERS IVER J. FREEMAN package Machinery Co East Lcngmeaaow Massachusetts CHAIRMAN 4 IVAR A. LUNOGAARD E t du Pont de Nemours & Co , inc. Wilmington, Delaware VICE CHAIRMAN SECTION DIRECTORS RICHARO A. BRADBURY PMS Consolidated Gardena. California SECRETARY WALTER P. BUSSART Eastman Chemical Products, me . Kingsport. Tennessee TREASURER STANFORO H. SHAW Shaw P'astcs Corp Berkeley Heignts. New Jersey IMMEDIATE PAST CHAIRMAN WILLIAM 0. BRADBURY, JR. PMS Consolidated Somerset. New Jersey EASTERN SECTION DIVISION CHAIRMEN ROBERT L SLAUGHTER Anchor Brush Co., inc Aurora. Illinois MIDWEST SECTION JOSEPH P. O'BRIEN, JR. Gibson Engineering Co . me Norwood. Massachusetts NEW ENGLANO SECTION FRANK C. OaVORE Tri-Plas. Inc La Paima, California WESTERN SECTION FREDERICK E. MEYER Thermoset Plastics, inc. Indianapolis. Indiana EPOXY RESIN FORMULATORS J. MICHAEL MURRAY EPS industries, me. Wichita. Kansas EXPANDED POLYSTYRENE FRANK M. CHAPMAN The Carborundum Co Avondale. Pennsylvania FLUOROPOLYMERS W. WAYNE THOMPSON Owens-Illinois, inc Toledo. Ohio FOAM CUP & CONTAINER JOHN A. LARKIN W R Grace & Co. Reading, Pennsylvania FOAM TRAY & CARTON 18 RAYMOND A. MATTSON Southeastern Kusan, inc. Greenville. South Carolina FURNITURE SAMUEL J. RUPERT Hoover Universal, inc Saline, Michigan MACHINERY W. JOHN GALVIN Burton Tool 4 Die Co me Leominster. Massachusetts MOLDMAKERS SPI-22205 LEONARD W. GOLDEN Colgate Plastics Goto. Buffalo. New York MOLDERS H.R. HUTCHINSON ORVILLE L. MAGEU Wyncote. Pennsylvania pennwan Corp NATIONAL PLASTICS EXPOSITION 3uftai0. New York ORGANIC PEROXIDE PRODUCERS SAFETY H. RANDALL UTTEN Owens -Miinois. me ~oieoo. Onio PLASTIC BEVERAGE CONTAINER FRANK M. HARRIS Aim Packaging, Inc. Port Clinton, Ohio PLASTIC BOTTLE INSTITUTE IVAN K. DeSUEU 6 I du Pont de Nemours & Co . me. Wilmington. Delaware PLASTICS PIPE INSTITUTE WILUAU W. ROWLEY Mercury Plastics, me. Middieiietd. Ohio PROFILE EXTRUDERS CHARLES A. GRANT Hercules, inc. Wilmington. Delaware POLYMERIC MATERIALS PRODUCERS JAMES S. HEARONS Owens-Corning Pibergias Corp. Toieoo, ono RP/C INSTITUTE DONALD R. WENZ Dart industries Ludlow. Massachusetts fllGlO PLASTIC CONTAINER GERALD J. WES impact Extrusions, me. Grand Praine. Texas SHEET PRODUCERS MANAGEMENT CIRO L PETRUCELU Hanson Pattern & Mold Corp Ludlow. Massachusetts STRUCTURAL FQAM WILLIAM C. OARR Mooay Chemical Corp. Pittsburgh, Pennsylvania URETHANE directors at large SAMUEL P. RUTLAND Rutland Plastics. Inc. Charlotte, North Carolina VINYL DISPERSIONS Term expires May 31, 1990 JAMES W. JACKSON Bird A Son, Inc. East Walpole, Massachusetts VINYL SIDING PRODUCTS RIPLEY W. GAGE Gage industries, ine Lake Oswego. Oregon RICHARD W. GOOORUM Ethyl Corp. Baton Rouge. Louisiana WILLIAM H. GUTHRC Phillips Petroleum Co. Bartlesville. Oklahoma PETER A. SIMON Shamrock industries, me. Minneapolis. Minnesota SPI-22206 19 L WILLIAM SESSIONS American Can Co Greenwich, Connecticut rerm expires May 31. 198' R. PETER TOOHV Gulf Oil Chemical Co Houston, Texas JOSEPH E. BIAFORE RuOOermaid, me. Wooster. Ohio T. E. BRANSCUM Gott Coro Winfield, Kansas WILLIAM F. MEfUCLE Cincinnati Miiacron Co Cincinnati. Ohio JOHN E. PEPPERCORN Gulf Oti Chemical Co Houston. Texas JOHN H. SCHROEDER Crescent Plastics, me. Evansville, maiana Term expires May 31. 1982 JACK L. SHAFER Borg-Wamer Chemicals Parkersburg, West Virginia P t JOSEPH l_ DOWNEY Dow Chemical USA Midland. Michigan CONSTAid FUNOT 9attenfed Corp of America Skokie. Illinois ROBERT M. GERRfTY Ford Motor Co. Wixom. Michigan WILLIAM J. GRAHAM Owens-Illinois, me. Toledo. Ohio RICHARD T. STUOER HPM Corp. Mt Gilead. Ohio 20 K R. TOMFOHROC, M Union Carbide Corp. New York, New York SPI-22207 Staff RALPH L. HARDING. JR. PPESlOEN' thomas j. McGrath GENERAL MANAGER Start Director Plastic Beverage Container Division Plastic Packaging Strategy Group Polymeric Materials Producers Div CHRISTINE BENTON Administrative Assistant to me P'-esidem Secretary to the Board JULIETTE LANG CAHN Start Director Aopliance Council Committee on Distribution Committee on Transportation Furniture Division Housewares Manufacturers Group Ad-Hoc Microwave Oven Cookware Committee Polystyrene Safety Group Profile Extruders Division Vinyl Sidmg Products Division JEROME R CARROLL Director of Safety Staff Director Committee on Occupational Safety and Health (PAC) Coordinating Committee on Consumer Safety (PAC) Organic Peroxide Producers Safety Division Products Liability Committee (PAC) PVC Meat Wrap Ad-Hoc Committee (PAC) Radio Frequency Heating Committee (PAC) Vinyl Oispersions Oiviston EOWARO J. COLLINS Director of Public Relations Staff Director Public Relations Committee(PAC) WILLIAM A. DtRZULAfTtS Director of Administrative Services Staff Director National Plastics Exposition ALBERT J. EVANS Director of Statistics Staff Director Committee on Resin Statistics Financial Management Committee International Committee LEWIS R. FREEMAN, JR. Di-ector Of =ece'ai Government neiaIlons JOHN GRAHAM Communications Scecanst Pij=i,c 3eiai-ors HOWARO KISSEL Marei ~g Analyst STEPHAN E. KLAMKE Executive Director p'astics -n Const'ucticn Council P'asitos P'ce 'nstiiute JOHN R. LAWRENCE Technical Director Start Director Ad-Hoc Comousnbility Safety Committee (PAC) "echnicai Committee (PAC) PVC Salety Group (PAC) Plastics Resource Recovery and Conservation Committee (PAC) Styrene Monomer Safety Group (PAC) JOSEPH S. MCDERMOTT Manager Reinforced Piastics-Composite Institute ROBERT MALLIA Controller JOHN MALLOY Director of Packaging Services Staff Director Foam Cup 4 Container Division Foam Tray 4 Carton Division Food, Drug 4 Cosmetic Packaging Material Committee Plastic Bottle institute Plastic Jerry-Can Committee Rigid Plastic Container Division MAUREEN MIGOALEN Assistant Staff Oirector TERRI R. HALLER Administrative Assistant to the General Manager BERT S. MOffTELL Staff Director Fluoropolymers Division Machinery Oivision P'astic Drum institute Sheet Producers Management Oivision Structural Foam Division Urethane Division Vinyl Film Group STAN MRUK Technical Director Plastics Pipe institute DEBORAH MULLON Assistant to the Director of Federal Government Relations E.S. NUSPUGER Governmental Affairs Director Staff Director Public Affairs Committee State Governmental Affairs Committee AMY 8TRAVTTZ Office Manager HUGH PATRICK TONER Assistant Tecnmcai Director Slart Drector AN Polymers GrouO iPaC) Ac-hoc Epicmoronycm Comm.inee -PAC) Eoo*y Res.n Formuiaiors Division Ac-hoc aET Safety Committee iPAC) Toxicology Com--ittee paC) JOHN WEIGLY Membershio Director Eastern Section 169 Union 9lvd Totowa. New jersey 07512 201/^90-1870 RICHARD FROCK Manager. Eastern Section Midwest Section 3i50 Oes P'ames Avenue es Piames. Illinois 60018 312/297-6150 ROBERT W. SHERMAN Manager. Midwest Section Staff Oirector Midwest Section Moldmakers Division Molders Oivision MARGARET SHALLCROSS Assistant Midwest Manager Staff Director Cutlery Manufacturers Grouo Expanded Polystyrene Division New England Section 20 Soeen St., Framingham Exec Office PV Framingham, Massachusetts 01701 212/573-9400 PATRICIA BROOKS Manager, New England Section Western Section Saddleback Square Suite 124 12440 Firestone Boulevard Norwalk. California 90650 213/864-2793 HERB OSBORNE Manager. Western Section ALTON DREW Assistant Western Manager Legal Counsel KELLER A HECKMAN 1150 17th Street. N.W. Washington, D.C. 20036 202/457-1100 JEROME a HECKMAN (SPt General Counsel) ROBERT R. TtCRNAN WAYNE V. BLACK MARTIN W. BERCOVia JOSEPH E. HAOLEY, JR. JOHN B. OUBECK CHRISTINE A. MEAGHER JOHN S. ELDRED LAWRENCE HALPRIN DEBORAH S. TRINKER DR. DANIEL S. DIXLER (Technical Consultant) SPI-22208 The Society of the Plastics Industry, Inc. 355 Lexington Avenue. New York, New York 10017 (212) 573-9400 EASTERN SECTION 169 Union 8lvc "otowa. New Jersey 07512 (201)790-1870 NEW ENGLAND SECTION 20 Soeen St . "rar ngnam Exec. Office Pk Framingham. Massachusetts 01701 (212)573-9400 MIDWESTERN SECTION 3150 Des Plaines Avenue Des Plaines, Illinois 60018 (312)297-6150 WESTERN SECTION Saddleback Square, Suite 124 12440 F'restone Boulevard Norwalk, California 9C650 (213)864-2793 WASHINGTON, DC. OFFICE 1101 17th Street. N W. Suite 204 Washington, D C 2C036 (202)331-0340 SPI-22209 Table of Contents Chairman s Fieport SPIP-jdiic Affairs Corrrn:Tee NPE 32 Operating Units Sections 'visions Comm-tiees Speoa Purpose Grcuos Financial Staten-erts Directors ara C;i OS'S Staff fO '2 3 3 :nside Sac Cover On :he Cove'- The 10 reoresentative plastics applications shown were the basis of a 'esearch project that showed that p'ast'cs can often save energy m all stages of their nfe cycie Conducted by Franxiir Associates, inc of P'aine Village. Kansas the studyhas led to `urther work to examine the energy efficiency of an plastics. SP1 hopes to dispel the impression that plastics are wasteful of energy 1979-1980 Officers and Directors OFFICERS DIVISION CHAIRMEN NA~'CNAL P!_AS' CS -X?CSi~ CN H. R. HUTCHINSON 'Vyncote Pennsylvania ORGANIC PEROXIDE =ROOUCERSSAFE~-r ORVILLE L. MAGELi Rg^nwait Corp Buffalo. New vark PLASTIC 8EVE3AGE COnt AiNER H. RANDALL LITTEN Cwens-'iimcis me Toieao Ohio RLAST C BOTTLE INSTITUTE FRANK M. HARRIS a m Packaging, nc Ron Ci.nton Ch'Q RUSTICS P'PE INSTITUTE IVAN K. OeBLIEU E du Pont ae Nemours & Co . me Wiimmgtcn. Delaware POLYMERIC MATERIALS PRODUCERS CHARLES A. GRANT Hercules, me Wilmington. Delaware CHAIRMAN IVER J. FREEMAN PacKage Machinery Co East Longmeaaow Massachusetts VICE CHAIRMAN IVAR A. LUNOGAARD E.l du Pont ae Nemours & Co . nc Wilmington Oeiaware SECRETARY RICHARD A. BRAOBURY PMS Consonaated Garoena. California TREASURER WALTER P. BUSSART Eastman Chemical Products, inc Kingsport. Tennessee IMMEDIATE PAST CHAIRMAN STANFORO H. SHAW Shaw Plastics Corp Berkeley Heights New Jersey SECTION DIRECTORS EASTERN SECTION WILLIAM B. BRADBURY, JR. PMS Consolidated Somerset. New Jersey MIDWEST SECTION ROBERT L. SLAUGHTER Anchor Brush Co . Inc Aurora. Illinois NEW ENGLANO SECTION JOSEPH F. O'BRIEN, JR. Gibson Engineering Co . Inc Norwood. Massachusetts WESTERN SECTION FRANK C. DeVORE Tn-Plas, Inc La Palma, California EPOXY RESIN FORMULATORS FREDERICK E. MEYER Thermoset P'astics inc irpianapoiis inaiana PROFILE EXTRUDERS WILLIAM W. ROWLEY Mercury P'astics. inc Middiefieid. Ohio expanded polystyrene J. MICHAEL MURRAY EPS industries. Inc. Wichita. Kansas FLUOROPOLYMERS FRANK M. CHAPMAN The Carborundum Co. Avonaaie. Pennsylvania FOAM CUP & CONTAINER W. WAYNE THOMPSON Owens-Illinois, me Toledo. Ohio FOAM TRAY 4 CARTON JOHN A. LARKIN W R. Grace&Co. Reading. Pennsylvania FURNITURE RAYMOND A. MATTSON Southeastern Kusan. inc. Greenville. South Carolina MACHINERY SAMUEL J. RUPERT Hoover Universal, inc. Saline. Michigan moldmakers W. JOHN GALVIN Burton Tool 4 Die Co . me Leominster. Massachusetts RP/C INSTITUTE JAMES S. HEARONS Owens-Coming PberglasCorp Toledo. Ohio RIGID PLASTIC CONTAINER DONALD R. WENZ art Industries Ludlow, Massacnusetts SHEET PRODUCERS MANAGEMENT GERALD J. WEIS impact Extrusions. Inc Grand Prame. Texas structural FOAM GIRO L. PETRUCELU Hanson Pattern & Mold Coro. Ludiow. Massachusetts URETHANE WILLIAM C. OARR Mobay Chemical Corp. Pittsburgh. Pennsylvania VINYL FORMULATORS SAMUEL F. RUTLANO Rutland Plastics, me. Charlotte. North Carolina MOLDERS LEONARD W. GOLDEN Colgate Plastics Coro Buffalo. New York VINYL SIDING INSTITUTE JAMES W. JACKSON Biro 4 Son. Inc East waiooie. Massachusetts directors at large va, : -fcC RIPLEY W. GAGE Gage mousm es. -c Laxe Oswego C'egcr RICHARO W. GOODRUM E'.hyi CorQ 3a;cnQCuge _cu6.ana WILLIAM H. GUTHRIE =hr' cs 'et'O'eum Co Baresv 'e Ck'ancma L. WILLIAM SESSIONS Amer car Can Co Greerwcr Ccrrecf'C-t PETER A. SIMON Shamrock .ncList' es he Mmneacoiis Minnesota R. PETER TQOHY SheH Chemical Cc Houston '"exas Term expires May J I 'S3 J JOSEPH E. BIAFORE Rubbe'maid. me Wooster Chio T. E. BRANSCUM Goit Coro Wmfieid Kansas WILLIAM F. MERICLE Cincinnati Milacrcn Co Cincinnati Ohio JOHN E. PEPPERCORN Quit Oil Chemical Co Houston. Texas JOHN H. SCHROEDER Crescent Plastics, me Evansville, Indiana JACK L SHAFER 8org-Warner Chemicals Parkersburg. West Virginia Term expires May 3 f. 1982 JOSEPH L. DOWNEY Dow Chemical USA Midland. Michigan CONSTANZEFUNOT Sattenfeid Coro ot America Skokie. Illinois ROBERT M. GERRITY Ford Motor Co Wixom. Michigan W1LUAMJ. GRAHAM Owens-iiunois. me Toledo. Ohio RICHARO T.STUDER HPM Corp Mt Gilead. Ohio H.R. TOMFOHROE, HI Union Carbide Corp New York. New York SPI-22211 Chairman's Report it was a most interesting and worthwhile experience for me to sen/e as your Chairman during the two years ending May 31. 1980 As a machinery suppler. 1 nad earlier anticipated the need on occasion to serve as a mediator between the diverging nterests of rssm sup pliers and processors, but that hasn't been necessary at ail ;rsteac. this oas been a period of harmony and reai progress 1 can personal y bear witness to the co operative spirit arc nara .vorK cf ah invoked n 5PI As -eported on the next pages of this report, our Pub lic Affairs Committee, and staff, along with the support ing organizations, have become a smooth-running anc effective operation--equal to the task of providing a protective umbrella for the industry industry sales volumes rose steadily during these past two years. Reflecting this up cycle, our many sec tions. divisions, groups, councils and committees have never been busier. Nearly 700 official SPI meetings were held during 1979-80, in the merest of keeoing markets open, developing new markets, and achieving progress in many areas. The financial results have been gratifying, to say the least. In the Annual Report of a year ago we reported that fiscal year 1978-1979 was the biggest and best ever And 1979-80 was both bigger and better As shown m the Statement of Revenues & Expenses on page 13. gross revenues from all sources exceeded $8.6 million, of which nearly $3.5 million was raised and expended by SPI's Operating Units on special projects which were separately funded over and above the ba sic dues. These self-funded expenditures cover a broad range of projects, including toxicological re search, legislative and public affairs activities, market ana product development programs and meeting in come. The General Funds budget of SPI. which is adminis tered by your Board of Directors, totaled $5.1 million in fiscal year 1979-80. Largely because of the surge m in terest rates, we generated an operating surplus for the year of $269,547. To this we were able to add the net income from the 1979 National Plastics Exposition of $674,470. As a result, after other adjustments, our total excess of income over expenses for 1979-80 was $865,794, Fortunately, these outstanding results provide a strong point of departure for the recession now in pro gress After a very careful review of me situat'Or arc some expense reductions, ycur 3oara of Directors -as established a General Func budget for 1980-31 of 55 8 million In order to oaiance income and exoe-ses they have drawn on 1979-80 excess mcome by 5220 000 Even after this action, the Society's resenves are ecuai to just ,,nder 50% of the current year's bucget in aacition. we achieved some mcaest gams ^ ^embersh'p durng the year' 144 new ^e^bers offset by 129 resignations, for a net increase cf *5 Total com pany membership is new 1 215 We welcome these new companies and hope they will become act ve ca'ticioants. Our general feeling of optimism was further sus tained by the results of the organization audit ara dues study conducted for us m 1979 by consultants from the well-known firm of Ernst & Whmney Their survey of Vot ing Representatives showed a substantial vote of confi dence m SPI ana its programs, including the dues sys tem. No major restructuring or reorganization was recommended by Ernst & Whmney at this time. However. I see no signs of any excess mventones of optimism in SPI The recession/inflation conditions have hit our industry hard, and we can only hope that the predictions of an early leveling out and gradual rise are true. The trouble is that the regulatory and legisla tive pressures on the industry haven't slackened at'all, and SPI has to continue to cope regardless of the busi ness cycle. Old problems stay alive and new chal lenges keep rising. Furthermore, it is inevitable that this industry will con tinue to grow and change. SPI will have to adjust and keep pace. Despite the good report card from Ernst & Whinney, your Officers and Directors are not satisfied with things as they are. What will be the basic mission o< SPI m the eighties? What kind of membership organiza tion will best serve our needs for the future7 How should the staff be structured? What can be done to persuade more plastics companies to support their industry as sociation? How can we make our programs and serv ices better understood7 Can we improve the dues sys tem? Work on these questions by your Board and staff was begun last spring and will intensify in the months ahead. I'm proud of what's been accomplished m the recent past. You have been well served by a very strong group of Directors who represent all elements of our diverse industry. You are also in good hands with "Bud" Lundgaard as your new Chairman, with Jim Hearons as Vice Chair man. and with a well-balanced Board. Your staff con tinues to grow in competence. Thus, all the elements are present for a continuing strong trade association, provided you continue to give it both your personal in volvement and financial support. J IVVEPRfi .J FREEMAN Chairman SPI-22212 i SPI Public Affairs Committee The plastics industry today is m an interesting but paradoxical position. On one hand we are going rapidly mto new markets and applications; on the other hand legislation continues to threaten our growth by attempt ing to namper our use of basic materials, by over-regulating cur manufacturing processes and by try ng to re strict the markets for cur enc products Basically SPl's Pubnc Affairs Committee (PAC) is the result of the nd^stry $ recognition that external forces were beginning to affect our marketing abilities and the realization that helping the plastics industry to market its products involved a wnole new spectrum of activities reaching far beyond the marketplace. These are the is sues with which you are now ail painfully aware--toxi cology, combustibility, solid waste and, most recently, energy. Sometimes one of these issues will affect a sin gle segment of the plastics industry, often several seg ments will be involved. The role of PAC is to coordinate and manage the response of the plastics industry to is sues like these, which threaten our viability and the overall growth of our markets. PAC is composed of representatives of member companies selected by the Board, it reports directly to the Executive Committee of the Board of Directors. The present structure of PAC is based on the follow ing considerations: first, an umbrella structure is needed to provide up-to-date and comprehensive in formation, legislative monitoring and contact, public re lations and other support programs. This inclusive structure also has the responsibility for industrywide is sues such as energy. Second, to provide the kind of ex pertise that a more narrow issue requires. PAC created the concept of issue Coordination. Each Issue Coordi nator is responsible for maintaining an up-to-date and comprehensive understanding of a generic issue of concern to the industry. He provides background and expertise on the problems within his area of concern, He is the liaison between operating units dealing with the issues, the SPI staff, and the support services PAC provides. The issue Coordinator has the knowledge and the resources to develop strategies, to recom mend policy and to implement it. When an issue concerns a clearly defined portion of the industry, ad hoc committees or special interest units are formed. Such a unit draws upon the expertise and support of PAC and its staff: it coordinates its activi ties with other SPI actvities. but it is essentially autono mous. Thus, PAC has structured itself to respond both tq the fluidity of the issues confronting us and the diversity of the industry we represent. prime function the gathering of technical, scientific cr medicai data in order to develop an SP' position on a particular issue or to lend additional support to 'cg- standmg SP' positions, in some cases, these commit tees also develop and supervise the implementation of programs to promote the positions that nave been ceveioped. Their work, m many respects, is the bedrock of the PAC effort, for without technically sound data, t would be impossible for PAC legal, government rela tions and public relations experts to defend the noustn/ successfully m the various public policy arenas Each of these committees was established as the need arose First, solid waste: second, combustibility, third, toxicity, fourth, occupational safety and health and. most recently, energy, in some areas, such as combustibility and solid waste, PAC has long been a sponsor of scientific research. in other areas, such as toxicity and energy, PACsponsored technical research has not been extensive, instead, those committees have relied on research conducted by other industry, government and private groups, which has provided data necessary for the de velopment of important SPI positions. In some cases, this data has come from work earned out by seif-funaed groups within SP! itself. In shod, PAC will sometimes sponsor its own scien tific research if such work is not being carried out by other responsible groups, or else it will use data gath ered by others, but analyzed by PAC. to provide'the necessary background for our issue-related efforts. it should also be pointed out that these five commit tees do not operate in a vacuum, but draw upon and provide expertise to divisions and other seif-funded groups within SPI as well as to outside organizations whose goals coincide with those of the plastics indus try. For example, the Energy Task Force has worked closely with the independent Petrochemical Energy Group to develop a program beneficial to both the pet- Technical Support The technical support activities of PAC are centered primarily in five committees: the Coordinating Commit tee on Consumer Safety, which handles matters deal ing with combustibility of plastics; the Plastics Re source Recovery and Conservation Committee, which oversees technical activities in the solid waste area; the Toxicology Committee, the Committee on Occupa tional Safety and Health, and the Energy Task Force. in general terms, all five committees have as their 2 Aa indicated, petrochemical feedstocks for plastics consume less than 1 5% of annual U.S supply of oil and natural gas. SPI-22213 Among spokespersons panic Dating in the PAC's EdHOfai Briefing Tours were John B Westlaii director of business promotions tor Phiihcs Chemi cal Co (at right .n photo !eft) ana Wiii<am C Kjhike. market research representative for plastics tor Sheii Chemical Co tat ngnt r photo center) The tours crew excellent 'esporse from newspapers as wei1 as TV ana racio coverage rochemcal ana plastics industries Similarly within SPI, the Coordinating Committee on Consumer Safety works closely with the Urethane Division, the Expanded Polystyrene producers, the PVC Safety Group and others on general matters of fire safety. PAC's dose liaison with these groups, to share infor mation and experience and to avoid duplication of ef fort. has resulted in another benefit: the creation of a cadre of legal, technical, government and public rela tions personnel from both staff and outside counsel whose expertise can be called upon by other groups witnm SPI when the need arises. Nowhere has this been more clearly demonstrated than in the occupational safety and health area. Starting first with vinyl chloride ana proceeding through acrylonitrile. OSHA's generic cancer policy and now styrene monomer, PAC and consequently all of SPI has built up a background on ways to handle any occupational health regulatory problem that may arise. One recent effort of interest in the toxicity area has been the work of the Toxicology Committee in helping to make life easier for the plastics industry m complying with the multi-faceted requirements of the Toxic Sub stances Control Act. In essence, what we've been try ing to do is to establish with EPA that polymers are basi cally biologically inert chemicals and should, therefore, not be subject to the same notification and pretesting requirements as are basic chemicals. Another area in which we have been extremely active is Federal cancer policy, not just with OSHA and EPA, but with the Consumer Product Safety Commission and especially with FDA, whose policy regarding indirect additives has a direct bearing on the future of the entire plastics packaging industry. In simple terms, the various technical committees of PAC provide the ammunition that the other special service units of PAC use in their ongoing battle with over-legislation and over-regulation. Governmental Affairs The volume of legislation carried forward from 1979 and introduced in 1980 has been moderately high in comparison with other years. The volume forecast for 1981 is very high because it will be the beginning of a new biennium in all but four states. SPI has retained lobbyists m 10 states which present special or intense problems, in addition to the defeat of every seriously threatening bill against plastics, the overall lobbying program enjoyed two special suc cesses. Bills that would "eiieve moicers of the responsi bility for retaining customer moios <naefiriteiy were passed and signed into law m Minnesota and Massa chusetts (a simitar bill was enacted ,n California !ast year). Plans have been made to extend this program for the coming legislative sessions. The second success was through the State Govern mental Affairs Committee. Having determined that the type of plastics milk bottle legislation and restrictive packaging review (or preclearance) legislation passed in Minnesota was planned for publication as model leg islation for all states, SGAC took immediate and effec tive action. Contacts were made with the subcommittee of the Council of State Governments which was consid ering this action. The subcommittee was persuaded to withdraw the damaging model act. deemed especially antagonistic to free enterprise and plastics packaging generally. It has been estimated that this action proba bly eliminated the necessity of fighting similar legisla tion in 15 to 30 states. Two successful Government Relations Seminars were given during the year, m Dallas and in Detroit. A Civic Action Program, administered through the SPI Section Offices was instituted, to encourage members to become politically active m the i960 elections. A new facet of PAC's external communications pro gram instituted this year is the senes of Editorial Brief ing Tours. This involves teams of specially trained in dustry spokespersons who go to a chosen area and discuss the issues with the media people in selected cities across the country. Cities are chosen for maxi mum beneficial effect--for example, the home towns of important members of the Senate and House Commit tees on Energy Policy. Results from the cities visited to date have been most encouraging, with a positive re ception of the spokesperson by the press. Existing programs such as Constituency Seminars, the Member News Bureau, and the capabilities for quick response to unwarranted cnticism were contin ued during the year under the direction of PAC's Public Relations Committee. Washington Activities Over the last year, the SPI Washington office has in tensified efforts to increase the visibility of the plastics industry in Washington. Monitoring relevant develop ments and making direct contacts with executive and congressional officials to present plastics industry viewpoints for consideration in Federal policymaking 3 SP1-222U - 3eD0'! rg 3n =gcerai acoviies to SPi ' memoers *as ennancea Oy tre 'eguar ouDiicanon of a Oiweekiy Wasfi'f'gron Memo has been a priority and has Among objectives this year S' prove the ability to monitor PeMMr-.mSafSfSSlte JSh report on the same and cona,|( ' developments and liaison. Legislative surveillanc. ' be more fully developed by th,' } Sh r "o mg on Federal activities to SP. - n.^S'SS" hS by the regular publication ol ,, ,,,weeVwaXgroo Memo. The Federal Governm,,,,, Rela ^ Commtee is more directly involved in tin, p, tions effort through the format pe9 dl task forceg and the establishment of a p^nri-mfll0?fi?!l rw? m,ttee The full Committee w, in helping shape SPI strategy, ir, the 97th Congress. In Congress torisn, aodvdeirtio1n0.t0o0e0x5paonudsineg|nddin,, i ^,^2 en SPI Submitted written comments on S. 1789, thn ivoduct Liability Risk Retenton Act; on two superfumj mp-euro, u p oc the Comprehensive Pollution..... . utbilitwCompensa- tion Act and on H.R. 7020. the 11.,/ardouTwaTte Con- tainmeh. Ac, ahd, S. 2154, an , I^Tretom measure. In the Federal Agencies La-i Ncve^oer. l.W Sessions. Cnairp-ar gf ;r-e SP1 Enerrj/ TasK Force, testified on ceraifcf 5P1 before the Depa'<ment ^"ergy and Treasury off'cais on me Aami',|Stratl0n s Proposal to limit oil imports in Jaruary n/r Sessions also appeared before the Federal En ergy Meguiatory Commission at its hearings on natural gas incremental pricing for `eedstock and process use in the SPI submitted to the Department of Comi-ne^d proposed revisions in the Standard industrial Classification Code (SIC Code), in June. SPI worked. -/iner trade associations m nostmg Chemical ndustr / Seminars for EPA to educate the staff responsi ble fo< anting 'egulations uncer tne "oxic Substances Conir 'i Act (TSCA) 'nMarcr 3P'met with officials from the C'nsurner Product Safety Commission to discuss CP$r. s plastics flammability study and to offer SPi's expe,ll5e in this area- Also of interest to SP' mempers. a delegation of SP' representatives nas met frequently with f 1>A staff responsible for developing the agency s polio/ and regulations on non-aerosal uses of chioroftuorr/ arbons. Othttf activities of the Washington office included program planning for the 1980 Annual Washington Meehpg. Highlights were a Congressional Breakfast Wlth -/ver 50 Congressional offices represented, a WhilP House Briefing with OSHA Administrator Eula Bingh-'m. remarks by EPA Deputy Administrator Bar bara ilium, and House Ways and Means Ranking Mi nority Leader Barber Conabie. Just after the 97th Con gress convenes, the 1981 Annual Meeting will feature a Capii"1 Hil1 visitation program. Looking ahead, the SPI Washington office has sur veys, i the Board of Directors. Washington Representa tives -nd other interested SPI leaders to develop a leg islative agenda for the 97th Congress, the first of its kind bevel* <ped by the association. It will detail what actions the Siwishes to see the 97th Congress take during it's i98t M2 tenure, in a related area, the SPi Washington office is developing a Legislative Response program to enhance the association's ability to encourage mem ber < ompany action on Federal issues. The initial phasn of the program will be operable by the conven ing 0| the 97th Congress in January, 1981. NPE '82 The NPE 82 Executive Com,,,ii,,)e headed ,, chair. Ross of Cincinn.ni Milacmn. is working on the NPE blueprint to assum ,,,at the next last|c* show, set tor June 21-25. 19M2 lM McCormick Place, Chicago, will be the most aucumiafui ever With the drawing for space s,,i t,,, April 1,1981. tradi tionalobjectives have been intan,,i,ied, win increasad attendance from areas of the u 3 n0, haavl,v reore. sented at past NPE's and also ,,,)m overseas nations Toward this end, a multi-languau,, brochure promoting the value of a tend,ng NPE 82 produce5 and dis9 '2, oil' 'n 1 '"Pseldorf lastOctobe, and at Rubberplas 80 m SinQa,]ore jn May As the plastics expositions have grown in stature and Si2e (attendance totaled over 43.000 at NPE 79) pro motion techniques and objectives have been finetune* I increasingly to prompt attendance by prime deQtsioii-makers from plastics end-user industries, such as automotive, appliance, packaging and construc tion. t his emphasis will be continued for the '82 show. Thn 520 exhibitors at NPE 79 used 340,884 square feet, including first-time use of all three levels of McCor mick Place. Exhibitors at that show declared their inten tion in enlarge their exhibit space at the next show-- NPE 82. Responsive to this trend, the management of McCnrmick place has made substantial modifications. addinQ 40,000 square feet of suitable space for exhibi tors. At this early planning stage, the NPE '02 Executive Com'hittee has reaffirmed the value and success m past dhows of the National Plastics Conference which will again fun concurrently with the exhibit at NPE 82. SPI-22215 Operating Units SECTIONS Eastern Section Chapter act.vites Mbm the section continued tc gam mcmer-turn Meet ings, which stressed the benefits of SPI memoersnip and memhe'sc-p ceveiooment. naa 'eccrd attendance. in acd tion to dmner meetings with speakers both the Mid-Atianrc and Southern Chapters had success with '`mini-conferences." one-day meetings featuring a speakers' program recrea tion and a dinner. The Eastern Chapter of the Moldmakers Division also had a record year with an expanded 8oara of Directors and mcreased attendance at meetings. E-CON V, the sections 1979 annual meeting, showed a 20 percent increase m attendance over the previous year's meeting, whicn was itself a recordbreaker E-CON V had as its theme "The Image of the industry ' and fea tured speakers from the ndustry. trade associations and the media. Midwest Section As part of the section's chapter ex pansion program, directors at large were elected from key geographic areas to work specifically on the expan sion. Ohio was divided into two chap ters. Northern and Southern. n Michigan the section assisted m development of an end market automo tive group. Section committee mem bers offered support and guidance to this activity. A project to have in place key mem bers for legislative response m each state got underway. The objective is a group of 8 such members m each state. Emphasizing member contacts and involvement, a key program for the sec tion was increased visits between the section's staff and members. New England Section The New England regional office in Framingham was opened m November, 1979. Prior to the office opening, the section initiated publication of a monthly regional newsletter, New ngiand News. The 35th Annual New England Con ference m October. 1979 drew over 190 attendees. The conference theme was "Manpower Development--identific ation, Recruitment, and Training of Per sonnel for the 80's.' A rroidmaker apprentice school n New England based cn me American Moid Bu.iders Association program was approved Oy me SPi Board as a pi lot lor a national mciamaker apprentice program A committee was `ormed to deveioo promotion `or the oro;ect and to manage the school P'omot on in cluded local open houses tc m'orm in dustry members, educators, the media and potential applicants of the pro gram. Nearly 200 applicants have been tested for entrance nto the program of which approximately half qualified. Two-thirds of the 25 class seats nave Peen ^served by industry members for apprentices they will sponsor The school 'S scheduled to begin m Sep tember n Southbridge. Massachusetts The instructors will be experienced moldmakers who have been trained Dy instructors *n the AMBA school The section s Annual Spring Confer ence attracted iQO attendees who heard presentation on employee train ing. economics and energy One of the major objectives of the section has been to increase the vtsibilty of the expanded regional activities and to create cohesiveness between the different SPi groups m New Eng land. To this end. over 60 percent of the membership was visited by the re gional manager. Leadership from ail New England groups participated m development of section objectives, and all group activities are being coordi nated from the regional office. Western Section Attendance passed the 1.000 mark at the section's 37th annual conference, which had as its theme: "Practical Poli tics for Plastics: Challenge for the 80's." Educational activities in the section included an open house held by the Moldmakers Oivision which drew more than 80 high school and junior college vocational instructors and counselors. The Scholarship Committee worked on the establishment of a format and crite ria for awarding scholarships. The Plastics Industry Response Committee decided to repeat the suc cessful Legislative Briefing, which was held in Sacramento m 1979. That brief ing included visits to legislators, a re ception for legislators and other gov ernment figures, and display of member companies' products. The next briefing is planned for February, 1981. DIVISIONS Epoxy Resin Formulators Oivision Ad hoc committees were estabnsreo in two areas: one to update the haz ardous Labeling Guice for Epcxy P'oducts." and the other to develop a `emulat'ng primer for new employees The Technical Committee reviewed the ERF Test Methods with the gcai of updating and republishing them with an appendix which would include referenced tests of the American Society `or Testing and Materials After the first re view. the Committee noted that several of the test methods were m need of up dating and programs got underway to accomplish this Record attendance marked the division s fall meeting. Considerable ef fort was devoted to membership devel opment activity. Expanded Polystyrene Oivision The division broke all previous re cords tor attendance at its 1980 annual meeting, in addition to a double session conference, the EPS Annual Awards Competition and the company-spon sored EPS Scholarship Awards Com petition drew excellent participation and outstanding press notice m na tional and local publications. Membership m the division continued to grow. A directory of member com panies and their capabilities was printed for the first time, and was distrib uted to architects, engineers and pack aging and product designers here and abroad. New data acquired through the division's combustibility and thermal conductivity testing provided backup for recommending revisions to many standards-makmg and code bodies. This data was instrumental m complet ing recommendations for the Standards Committee submission to Federal Specification HH-1-524 for thermal in sulation board as well as to the "Hand book of Fundamentals" of the American Society of Heating, Refrigerating, and Air Conditioning Engineers. Inc. Research approval for EPS ceiling tile was granted by the Building Officials Conference of America, culminating two years of effort, and was a maior ac complishment for the division This rec- SPI-22216 Machinery Division "he division s "Gw sec -5 ccnoaries mat -^a1"-`actcow molding, extrusion nectcn "c: rq specialized processing 3nc :ne"~cset processing macnme'y as wen as auxil iary ard compounding equipment Worn continued within the Civsicn or suggested egistatve 'e'orm n me products liability area with a data oarK on legal qrecedents `or this area ma rtameo by SPi s legal counset A orcc- uct Liability Handbook was prepare to advise machinery manufacture's on how to craven: ec- cment m s,,se 3rc abuse n order to recuce the potent.ai'ty of accidents ano rjures n the wor<- oiace Tweive proposed safety starcarcs were submitted to the Amencan Na tional Standards institute `or eventual promulgation as ANSI documents Work was started on 14 other stancards proposals. The divisions annual meeting nao over 250 persons m attendance ogmtiorv on top of the Southern Building Code Congress approval earlier, estab* iishes EPS ceiling tile as a viable interior trim material Fluoropolymers Division Participation m the Statistical Pro gram for granular PTFE (poiytetrafluoroethylene) resin was expanded to in clude all the major domestic and foreign suppliers of this product into the U.S. market. The statistical program will provide a benchmark of a broad spec trum of the market. The division's annual meeting, held in March, i960, had the largest number of registrants m the event's history. The Policy Board implemented plans to increase the division's membership from geographical areas that are poorly represented as well as from processing areas that are presently underrepre sented. The Technical Committee developed a recommended standard for neatshrinkable fluoropolymer tubing for promulgation through the American So ciety for Testing ana Materials. Foam Cup and Container Division The division continued its regular public relations program to cover pro motion to fast food chains, success story reprints, trade media feature ar ticles and newspaper and feature columns. The emphasis is on benefits of using foam cups and support of anti-iitter programs. Informational activity on the contro versy over the use of lemon and tea in foam cups was handled by the SPl Pub lic Relations Department. Division members participated individually in answering media questions. Furniture Division A membership campaign resulted in increased membership which is more representative of the plastics furniture industry today. Efforts continued to ob tain multi-material representation. Planning got under way for a furniture conference and exhibit during a furni ture show to be sponsored by the Southern Furniture Manufacturers As sociation. Molders Division A committee was set up to assist SPl m a joint venture with the Department of Energy to develop an energy savings manual for plastics processing A sec ond committee was active m the review and development of SPl s new safety manual. The division supported enactment of legislation that more clearly defined mold retention and mold storage obli gations m various states The division's annual meeting was well attended, and regional meetings throughout the year continued as a mainstay of division programs The division's annual meeting had as its theme, "Managing the Technology of the Plastics Molder." The conference focused on three major areas- new technology, personnel management and cost accounting principles. The conference included a halt-day Cost Accounting Mim-Semmar, which fea tured an SPl Financial Management Workshop. Moldmakers Division A new "Director/ of Moldmaker Serv ices" listing the special capabilities of SPl moldmaker members was re leased. The division s Labor Survey was expanded to provide more detail on fringe benefits and more detailed geographic breakdowns. The Moldmakers entered into a coop erative program with the American Mold Builders Association to expand apprentice programs. Using the curric ulum developed for a Chicago school, SPl introduced the program m New En gland. A scholarship program m honor of the late James fl Driscoll was started m tne 6 SP1-22217 The Moiamakers Division niti area a scholarship program in the Dayton Ohio vocational school system in nonor of the late James R Onscoii Winner of the first award was Oavid Getter (third f'omieft) At the ceremony were deft to rignt) Jack Galvin, mmediate past chairman of the divi sion Mrs JoAnn Driscoll. and Robert Sherman, staff manager tor the division Dayton. Ohio vocational school system. Mr Driscoll was vice president of Dia mond Tool & Die Co. of Dayton. Ohio, and a member of the Moidmakers Divi sion Policy Board. The first award was presented to David Getter, a graduat ing senior m machine trades at Mont gomery County Joint Vocational School. A direct mail program was developed as part of the division s membership drive. Organic Peroxide Producers Safety Division increased technical support was pro vided for the Department of Transportation representatives at United Nations meetings on organic peroxides This in cluded data for position papers and at tendance at meetings m London and Geneva by OPPSD advisors. The divi sion supported the proposal of the De partment of Transportation to adopt the United Nations' nomenclature for orgame peroxides. The division also supported the DOT'S proposed rules which would pro hibit shipment of any MEK peroxide with more than nine percent active oxygen. Representatives of the division worked cioseiy with a committee of the National Fire Protection Association to develop a new organic peroxide classi fication system which would be better suited to the needs of the association. A compilation of specific organic per oxide toxicity data, obtained from a worldwide literature search, was com pleted systems for recycling polyester bever age bottles back into useful products The divsion provided substantial manpower and monetary support to the Plastic Bottle institute s Gatekeeper Program A brochure was publised dealing with the environmental benefits of polyester bottles with regard to recyimg options and energy consumption. The division actively opposed man datory deposit referendums m Ohio and Washington, in cooperation with the Plastic Packaging Strategy Group, the division helped fund the litigation that resulted in the Hawaiian law prohibiting the sale of beverages m plastic con tainers being declared unconstitu tional Among the programs the division agreed to conduct are a market re search study on consumer attitudes to ward plastic beverage containers and support of anti-deposit efforts m various states. Plastic Bottle Institute The nstitute dee ded to ccrtirue me public relations program which wni emonasize the highly successful senes of Gatekeeper Meetings with newspacer editors and environmental groups around the country The institute also will give heavy em phasis to oromotion of the P9l School Audio Visual Kit A new feature of this program will be the development of tel evision talk snow appeararces by member representatives A major new effort get underway to sponsor a P'astic Bottle Seminar on Oc tober 1 i960 n New York to inform the trace cf latest developments <n techni cal areas and public 'e;aticns PBi funded the SPi pet1: on :c the Bu- reau of Alcohol. Tobacco and firearms to approve polyvinyl chloride for `iQucr Dottles. Plastics Pipe Institute Following up on <ast years commit ments PDi continued to stress the de velopment of aids for the education of designers, specifiers and installers on the proper selection design and instal lation of thermoplastics piping Al though this effort is important to the groups that PPI represents, it also serves to Denetit the entire industry One oi the institute s Puei Gas Division s most significant achieve ments was the completion of a slide program consisting of five separate presentations on recommended instal lation practices and the proper joining of PE pipe for gas distribution systems, it is designed to support and assist the utility companies m their compliance with mandated Federal programs At present, over 100 slide presentations have been ordered tor use in training programs for utility operators and in spectors. in addition, the PP! Technical Director participated as an instructor in Plastic Beverage Container Division The division was very active m pro grams to stimulate the development of SPI-22218 7 four sessions of special courses given by the Department of Transportation Safety institute and which dealt with the training of utility company operators and Federal and State inspectors. Work m the Large Diameter Polyolefin Piping Division consists of various pro grams aimed at expanding the accept ance of plastics mto areas of good pros pect A compilation of case histories of different installations, coupled with our efforts to work with tne Environmental Protection Agency on existing and pro posed regulations are directed at this obiect.ve So are some activities such as the preparation of an industrial bro chure. a film ana a manual of practice. Aicrg with these, the other ongoing activities of ?Pl continue to provide much needed services to the industry. The diversity of such programs, from technical activities including its Hydro static Stress Committee and the updat ing of technical reports and literature, to the continued participation/representatson with numerous standardswritmg organizations and Federal agencies attest to the continuing PPi commitment to the entire thermoplas tics pipe industry Polymeric Materials Producers Division In view of the broad and diverse inter ests of its members, the Division will concentrate its efforts m those areas which impact on the entire member ship. Three areas were identified: en ergy and feedstocks, industrial health, and industry support. An Energy Committee was formed to work with the Public Affairs Committee issue coordinator in communicating to the Department of Energy the plastic industry's need for a sufficient supply of feedstocks if it is to continue to meet critical industry as well as consumer needs. ance. WeatheraDiiity arc Dimensional Stability Task Forces were organized and are developing respective sections of :ne proposed ASTM standard. The division obtained company ap provals for a Window ana Door Statisti cal Survey to be instituted m 1980 Reinforced Plastics/ Composites Institute Attendance at tne 35th Annual Con ference of the institute came close to the record-breaking attendance figure of the previous year Strong attendance was noteworthy m light of the economic decline that had begun to affect the RP industry m the fourth quarter of 1979. Planning for the 36th Annual Confer ence. to be held February 16-20. 1981. began with a call for papers. A delegation of qualified representa tives from a broad fabricator spectrum within the RP industry visited Sweden to observe the technology and engineer ing controls developed to comply with the relatively tight Swedish regulation on occupational exposure to styrene. At the conclusion of 1979-80 fiscal year. 66 percent of the target of $1 44 million was collected to support the health studies program. The RP/C Oc cupational Health Steering Committee published a 10-page pamphlet report ing on progress in this area. A morbidity study was completed which found no adverse effects among workers ex posed to styrene in a plant which meets the present standards. All styrene refer ences in the world literature were in dexed by computer so that they will be readily accessible. Two test methods were completed by the Resins Committee and will be re published in book form. Work on devel opment of a quality assurance code and an acoustic emissions test method `or enemies' C'OCSSS Aqu.C^en: moved `orwarq. The first edition cf a newsletter `ccusmg on issues important to the P'umcing Fixtures Committee was qeveiopec ard distributed. The Panel Council s croprosed product standard was pub lished by the Amencan Society 'or restmg and Materials. The Distributors Committee made its debut at the arruai conference with a successful institu tional booth and a brochure on this seg ment of the indusfrys ro>e as "c-itcal link" between suppliers arc sman moiders. A reauest for the `ormaticn of a Fillers and Additives Committee was ap proved oy the Policy Committee A; tne direction of the Policy Committee staff established naison with the staff of the Fiberglass Fabrication Association, a new trade group of small processors Rigid Plastic Container Division A maior membership recruiting drive got underway, focused on an annual management conference. The first such conference was part of the March Annual Meeting, and included speakers on feedstock supply, Food and Drug Administration activity, public relations, small business financing, and SPI activities. The division continues to monitor trade activities that may reauire mem ber action and to develop technical pro grams as needed. Sheet Producers Management Division The division reviewed its organiza tional structure and established stand ing committees which include: Em- Profile Extruders Division The division's meeting in October, 1979 featured speakers on micro processing and the availability of plasti cizers, plus a tour of a technical facility. The combined meeting of the division and the Vinyl Siding Institute had an at tendance of 220 persons, setting a new record. Membership of the burgeoning Win dow and Door Committee reached 84 members. The committee was very ac tive in the area of standards develop ment. A definitional standard is cur rently being balloted by the American Society for Testing and Materials, if ap proved, it will appear in the ASTM "Grey Pages ' as a "Proposal." A performance standard was also submitted to ASTM. Material Specifications, impact Resist 3 SPI-22219 pioyee P'actices. energy Conservation Memcersnip,-Promotion Statistics. Technical and Trade Practices The employee Practices Committee began conducting a labor survey The Energy Conservation Committee polled the membership to obtain input on en ergy usage and conservation sugges tions The d^sicn 'ece^veo excellent par ticipation n ts 'svsea statist'cal pro gram on "Shipments anc Unfilled Or ders for Extruced Sheet by Materai The `irst quartery statistical 'eport is un der preparation. The Technical Committee decided to focus or the objective of developing recommendec standards for acryionitnle-butadiene-styrene and polyethyl ene sheet Structural Foam Division "The Expanding Challenges of the 80's' was the theme of the Eighth An nual Structural Foam Conference and Pans Competition, wnich attracted a re cord 518 attendees. The conference program featured 19 presentations on techniques, case histones and present and potential markets for structural foam parts Fifty-six structural foam products were entered m the Parts Competition Six awards were pre sented to first and second place win ners for funcf'Onal application, innova tive design and conference award The Combustibility Committee s "Large Scaie F're Test Program on Electrical and Electronic Eauipment ard Apoi'arce Encicsures entered 'ts third ana `mai phase The Membership Committee contin ued its efforts, concentrating on new member contacts made at the annual conference The Machinery Committee began de velopment of a recommended standard for the "Construction. Care and Use of iniection Molding Machines for the Manufacture of Thermoplastic Struc tural Foam," which will eventually be promulgated through a recognized stanoards-making organization. Urethane Division The division continued to sponsor a comprehensive communications and educational program to publicize the industry's position on flexible urethane foam applications and the combustibii>ty issue. The division published a brochure 'Using Flexible Polyurethane Foams Safely, for distribution to .consumer groups and other interested organiza tions. The publicity program to promote flexible urethane foam m bedding and cushioning was also continued A number of research testing pro grams were initiated .nciudmg studies on ambient and acce'erated R-vaiues of rigid foams, fatigue characteristics of flexible foams and combustibility studies of both rigid ana fexibie 'oams. An educational program on the es sential use of fluorocarbon blowing agents m urethane foams was under taken. An .nformatioral bulletin entitled "The Importance of Fluorocarbons ana Polyurethane Foams" was published by the Division. Vinyl Formulators Division Formerly the Vinyl Dispersions Divi sion, this unit now represents all PVC formulators. To assist vinyl formulators in coping with the 80 s. the division es tablished: a Legislative and Reguiatbry Committee to monitor and report on is sues of import to members, a Technol ogy Committee to advise the division on all technological issues for concern and/or action and a Membership and Attendance Committee to stimulate participation Emphasis will be on the vital importance of SPt as a unification source and base for efforts to cope with the mass complexity of legislation, reg ulation and technology "Vinyl Formulating--the 80"s." the Sixth Vinyl Formulators Seminar, was well attended. Pans Competition Awards were presented in three categories at the Sghth Annual Structural Foam Conference and Parts Competition. First Place. Conference Award was presented for a 891 cabinet (left), a computer terminal work station, molded as a one-piece structure by ExCeil-0 Corp.. Athens. Tenn First Place, Functional Application Award was given for an anti personnel mine case (top. right), constructed so that on the launching pad. the cop part of the structure breaks away, releasing the explosives-contaming canmsters within. The part was molded by Monitor Molded Products, Tacoma, wasn. First Place, innovative Oesign Award was presented for an instrument panel retainer (right, bottom), used in the i960 Chevrolet Citation. The retainer features a "attice-worK structure that is lightweight, while maintaining structural strength. The cart was molded by Chevrolet Adrian Manufactunng, Adrian. Mich. Fixty-six structural foam products were entered in the Parts Competition Vinyl Siding Institute Formerly the Vinyl Siding Products (Division, the Vinyl Siding Institute is a self-funded operating unit with an an nual budget for marketing and techni cal programs. The Weatherability Committee dis tributed a two-year Interim Weathering Report. A product standard (ASTM D 3679) was adopted and published by the American Society for Testing and Materials. The Institute's technical group was active m contributing input on the proposed standard. The Marketing Committee began de velopment of a public relations pro gram. The Institute's Code Committee made personal contact with all the code groups m the United States in a continu ing effort to obtain acceptance for vinyl siding. SPI-22220 9 COMMITTEES Committee on Distribution Two surveys vere conauctec on cisfr'bution cer`crmance measurement metnoas r~e n-s: was an upcate of the Guai tative s_'vev to ascer'ain ^nat measurements ano criteria are oemg employed Py men-per companies to measure distributer cencrmance The secona survey was an ^oaate of me 1977 Quantitative survey aimea at ceveiopmg valid statistics pertinent to distribution patterns m the piastics in dustry Ccmmittee members were also surveyed to obtain the current status of member companies metrication efforts in the areas of oacKaging, labeling, or ders and related shipping and distribu tion documents The ''ank and Hooper Car utilization Surveys were completed and distrib uted A Rail Services Task Force was or ganized to gather data to illustrate to the railroads the need to improve rail serv ice. The semi-annual meeting held m Oc tober `eaturec a workshop on `Distribu tion Organizational Structures and Phi losophies " The conference coincided with the publication of issue No. 4-- Organization Charts, submitted by member companies. A meeting of the VCM Emergency Response Committee was held in April to refine the procedures regarding re porting of ano assisting at accidents in volving vCM This mutual assistance program will continue as a cooperative effort with the Chemical Manufacturers Association (Chemtrec). A Marine Distribution Subcommittee meeting was held in December, 1979 and presentations made by container and barge companies, representing another step in the constant surveil lance of the state-of-the-art as it relates to the marine distribution of plastic resins it was agreed to merge this commit tee with the Committee on Transporta tion, effective m June 1980, to form the Committee on Transportation and Dis tribution The Financial Man agement Committee completed the fourth and hnal vol ume of its Financial Management Man ual lor P'astics Proc essors. Volume IV focused on "Mate rials Management" two-day seminar on Risk Management and insurance, scheduled for early Oc tober, 1980. The presentation will be tailored to address the particular con cerns of the plastics processing indus try. The 41 st Annual Labor Survey (1979) was published in January. 1980, and the 18th Annual Financial and Operat ing Ratios Survey, covering 1979, was conducted. in conjunction with Ernst & Whinney, the committee embarked on the devel opment of a senes of articles on busi ness management topics to appear in SPI's News Briefs. The purpose is to publicize the sen/ices provided by the committee in general and the Financial Management Manual in particular. Food, Drug and Cosmetic Packaging Materials Committee The committee continued to monitor and report on activities at the U.S. Food and Drug Administration which impact on the plastics industry. At its semi-annual meeting, the group held a successful senes of subcommit- Financial Management Committee The fourth and final volume of the Fi nancial Management Manual for Plas tics P'ocessors was completed. Vol ume tv focused on "Materials Management.' As an outgrowth of the Manual, the committee agreed to con sider a seminar on computerized manu facturing and financial management systems. The committee began organizing a 10 SPI-22221 \. k v' 'ics Deccrt A<ere -ece'-sc `e :ee 'S -eviewmg trese ce!ce :-e -seen s ssoea The committee sa'sc 'vest.- gatmg the `easibmty cf cc'ect-g zata on plastics feedstocks ana accrues The 1979 edition of Facts ana r-gures ana the '978 Ma/or Markets Reccn were published -n the 'ail of 1979 The CRS formed subcommittees or international Statistics. P'astics P ce & "(tings. Auto End-Use Aopiiance ErdUse and Thermoplastic Polyester acn rew group 'S designed to sat sfy me ptoac spect'um of spec.a1 nterests of SPl members tee meetings in which ail interested members were abie to near and dis cuss the latest developments m their areas of concern and to participate in decisions on activities to support the SPl effort to promote government ac ceptance of plastic food drug and cos metic packaging. The subcommittees involved were: Technical information, Lawyers Advisory. Drug Packaging. Medicai Devices and international. International Committee The committee made extensive prep arations for a Trade Mission/Technical Seminar to the People s Republic of China. The seminar which took place in June. 1980. involved the participation of 16 people who visited Seeing, Nanking and Shangnai. Videotape/Catalog Exhibition No 2 was sponsored .n the March-Aprtl per iod Twenty firms participated VCE No. 2. translated into French, was pre sented m Morocco. Tunisia. Kenya and Nigeria The videotape was then shown at the Leipzig Trade Fair. East Ger many, and iNCHEBA Trade Fair, Brati slava. Czechoslovakia SPl partici pated n the exhibit, promoting NPE 82 The committee began planning `or a trade mission to Nigeria. Kenya and Egypt for the fail of 1980 as a foilow-up to the leads developed from VCE No 2. The committee assisted in the organi zation. development and promotion ol the Commerce Department's Trade Center Exhibition in Mexico City Work was conducted on the development of a long range (five years) export promo tional program for the U.S. plastics in dustry in conjunction with the Com merce Department s Specialized Assistance Campaign. The committee completed its work on the Multilateral Trade Negotiations bill, which Con gress passed and President Carter signed mto law Committee on Resin Statistics Responsibility for the Plastics Pipe institute's Monthly Statistical Report of Shipments of Thermoplastics Pipe & Fit tings was transferred to this committee effective January I960. Data for the initial International Statis- The international Committee made extensive preparations for aTradeMission/Technical Semi nar to the People's RepuDiic of China. The group of 16 saw several molding and machinery plants, and visited 8ei|ing. Nanking and Shangnai Committee on Transportation Rail and motor carr er tanff cnarges constituted the onme `ocus o* activities of this committee during '979-30 Of prime import to the plastics industry from a dollar impact standooint was the railroads decision to forego approxi mately 60 percent of their October gen eral freight rate increase with resoect to plastic resins Resins moving m bulk were subject to an increase of 2 4 per cent nationwide, as contrasted with the general increase 'evei applied to most other commodities which varied from 6.4 percent in the South to 9 percent m the East. It is estimated that this hold down will save the industry approxi mately $12.5 million, as compared with the general level of increase on an an nual recurring basis. Plastic resins received another hold down on a general freight increase, ef fective in July. i960, m the South and the West, and on September 1. i960 m the East. The general level of increase is eight percent m and between the East and the West, and four percent m the South and between the South ana both the East and the West. The railroads' in crease for plastic resins was reduced from the eight percent level in and be tween the East and the West to four per cent. thereby implementing a uniform nationwide increase. Originally, the railroads proposed a seven percent increase m the West and five percent in the East, but reduced those levels to four percent after sub stantial opposition was expressed by the Committee and by industry mem bers individually. The savings to the in dustry as measured against the original proposals will amount to $2 9 million, and when compared to the eight per cent general increase level will amount to $6.9 million on an annual recurring basis. The committee's Statement on De regulation was approved Dy the SPl Board for release to government and legislative officials. it was agreed to merge this commit tee with the Committee on Distribution, effective m June 1980 SPI-22222 11 SPECIAL PURPOSE GROUPS Appliance Council The Council chairman coocerated with the SPi statistical deoartmert m the development of aopiiarce/resin statis tics. Both the chairman and the staff di rector monitored regulations and ad vised mterestec members Housewares Manufacturers Group The group agreed to drop proposed Standard 56J on CombustiDie Solid Supplies in Health Care Facilities due to repetition/dupiication of existing stand ards. The group submitted data relative to a ban on plastic refuse containers in Baytown, Texas. Microwave Oven Cookware Group An ad-hoc committee for several years, this group became an official SPI operating unit. The group published a booklet enti tled `Recommendations for Labelling and Glossary--Plastics Cookware for Microwave Ovens1' for distribution by manufacturers and material suppliers. The first of the formal educational programs to be included as part of the group's activities was a talk by Rose Rennekamp. product manager for fladarange Microwave Ovens. After two years of preliminary devel opment activities by SPI, the American Society for Testing and Materials formed a Task Force to undertake the promulgation of microwave oven cook ware standards with initial emphasis on plastics ware. A Marketing Committee was set up to promote the group s products. Liaison was established with the international Microwave Power institute and the Sin gle Service institute, and this iiason will continue to be maintained. Plastics in Construction Council Activity on behalf of the plastics in dustry m regard to specific regulations and code standardization occupied a maior portion of the council's activities. The most active committee within the council was the Insulation Committee. Working with the Urethane Division and the EPS Division, the council was in the process of updating both the Building Officials and Code Administrators' mode) code as well as the Southern Building Code with regard to a position that is consistent with other model code groups, in addition, several states and maior city building departments were contacted concerning problems with the "responsible application" of foam plastics. Plastics Drum Institute Dialogue continued between mem bers of the institute and representatives of the Department of Transportation and the Occupational Safety and Health Administration concerning regu lations that impact on the 55-gallon con tainers. A draft of the institute's technical bul letin on closures was distributed for comment. Work was conducted on a bulletin, "Recommendation for Precau tionary Labeling of Reusable Industrial Plastic Containers." The membership agreed to partici pate in rail srooact tests with the Associ ation of American Railroads. A Re-Use Committee was estab lished to investigate round robin testing to evaluate the reconditioning and reusability of plastic drums The ccmmirtee is presently obtaining participa tion commitments `rom chemical com panies and 'econdifoners Plastics Packaging Strategy Group The financial support of this group was particularly fruitful this past year The Supreme Court decision from the state of Minnesota confirmed the un constitutional^ of that state's 'aw pre cluding the use of nonreturnable plastic milk bottles. The First Circuit Court in Hawaii determined the unconstitution al^ of the proposed plastic beverage container ban. Support was given to the Plastic Bottle institute s petition to the Bureau of Alcohol. Tobacco and Fire arms to obtain aporoval for the packag ing of alcoholic beverages in polyvinyl chloride. Polystyrene Safety Group The group received updates at its November 1979 and March 1980 meet ings on the Arthur D. Little study con tracted by the Food and Drug Adminis tration. The study comoares the extractions of monomers from crystal polystyrene by food simulating solvents to those of actual foods. Group mem bers provided input to Arthur D. Little re garding its upcoming study of high-impact polystyrene. The group planned further testing at Southwest Research institute to aug ment its previous living room test pro gram. Recommendations for Labelling and Glossary--lPlastics Cookware for Microwave Ovens " was the subject of a booklet published by the Microwave Oven Cookware Group. 12 Vinyl Rim Group This group was reactivated during the year and met twice to consider fu ture programs. Group members agreed to undertake a quarterly statistical pro gram on end use applications for vinyl film and sheeting in areas such as auto motive. bags, construction, furniture and housewares, house furnishings, in dustrial and medical products. A campaign to solicit new members got underway. The group is considering the sponsorship of a Vinyl Film and Sheeting Conference m 1981. SPI-22223 Financial Statements Balance Sheets May 31,1980 and 1979 Assets Current assets. Cash in checking accounts ana on hand Savings deposits Short-term investments, at cost (which approximates market) Receivapies MemDersnip dues Other Less allowance tor doubtful accounts Net membership dues and other receivables Accrued interest Prepaid expenses and other current assets Deferred charges--1979 National Plastics Exposition Total current assets Fixed Assets Furniture and equipment Leasehold improvements Less accumulated depreciation and amortization Deferred charges--1982 National Plastics Exposition Other assets Total Assets Liabilities and Fund Balances Current liabilities: Cash overdraft Accounts payable and accrued expenses Unearned membership dues Deferred revenue--1979 National Plastics Exposition Total current liabilities Fund balances: General fund: Unappropriated Appropriated (note 6) Special projects funds Total fund balances Total liabilities and fund balances See accompanying notes to financial statements. 1980 1979 $ 7,266 21,427 4,495,283 886 40,777 (1,386) 40,277 141,699 23,061 -- 4,729,013 220,113 106,873 326,986 (113,811) 213,175 121,846 24,327 $5,088,381 59.408 20.010 4 395.318 15.080 13,724 (10.7H) 18,093 115.984 16,527 1,145,164 6,270,504 192.261 73.322 265.583 (84.516) 181,067 -- 18,210 $6,469,781 $ 220,896 616,292 65,646 -- 902,834 269,547 2,656,816 2,926,363 1,259,164 4,185,527 $5,088,361 $ 95.006 568,627 33,624 2,318.540 3,015.797 278,547 1,782,022 2,060,569 1,393.415 3,453.984 6,469,781 SPI-22224 Statements of Revenues and Expenses Years ended May 31,1900 and 1979 Revenues Memoersnp dues nterest Sales of iteraiure Special projects Other Expenses: Direct Membership services: Legal and consulting Communications (public relations) Administrative Membership promotion Directory Special proiects--research, development, legislative and public relations Service operating units Divisions and groups Regional offices Public affairs committee Chemical Industry Trade Advisor indirect program, administrative and general: Salaries and employee benefits Office supplies and expenses Rent Auditing and computer services Provision for depreciation and amortization Provision for doubtful accounts Other Less allocation of administrative expenses to National Expositions Excess of revenues over direct and indirect expenses Product liability expenses 1979 National Plastics Exposition revenues, net of related expenses of $1,980,103 Write-off of special project deficit balances: Accounting manual project Plastics Hall of Fame Excess of revenues over expenses See accompacyuig notes to financial statements. 14 1980 S4.399.298 635,889 73,277 3,480.987 34,653 8,624,104 1979 54.145.888 402.58t 83.924 3.039.534 38.884 7.7-0.81 1 650,745 121,217 201,638 54,013 22,077 3,480,987 186,988 135,156 220,511 1,198,529 2,000 1,688,921 356,056 150,635 84,483 32,576 (26,845) 45,770 8,585,457 230,900 8,354,557 269,547 -- 674,470 (50,445) (27,778) $ 865,794 561,501 96.116 141,320 33.098 24 206 3.039,534 171,055 80,475 155,474 1 428,905 2,000 1.429,441 299.784 123,261 60.220 27.442 5.194 3.238 7,682.264 250.000 7,432.264 278.547 (36.425) -- -- -- $ 242.122 SPI-22225 Statements of Changes in Financial Position Years ended May 31,1980 and 1979 Funds were provicea by Excess of -everi.es over exoerses Add (cecuctl 'terns rot -ecuirmg (providing) funds Deprec at ara amortization Gain on traae-'C o; ''xec assets Funds provded ov operations Oecrease 'O non-current deferred charges Increase in special prciect funds balances Total funds provaed Funds were used *or: Purcnase of fixed assets Increase m non-current deferred charges Decrease m special project funds balances Increase in other assets Decrease m non-current deferred revenues Total funds used Increase in working capital Analysis of changes in working capital: increase (decrease) m current assets: Cash Savings ceposits Short-term investments Net membership dues and other receivables Accrued interest Prepaid expenses ano other current assets Deferred charges--1979 National Plastics Exposition Decrease (increase) m current liabilities: Cash overdraft Accounts payable and accrued expenses Unearned membership dues Deferred revenue--1979 National Plastics Exposition Increase in working capital See accompanying notes to financial statements. 1980 1979 S 965,794 32,576 898,370 -- -- 898,370 64,684 121,846 134,251 6,117 -- 326,898 S 571,472 $ 242.122 27.442 (120} 269 444 310.0*8 219 885 799.347 34,967 -- -- 7,645 73.845 116.457 $ 682.890 (52,142) 1,417 (400,035) 22,184 25,715 6,534 (1,145,164) (1,541,491) (125,890) (47,665) (32,022) 2,318,540 2,112,963 S 571,472 52,975 1.214 1.842,045 (3.842) 57.105 11.059 1,145,164 3.105.720 (47.064) (80,756) 23,530 (2,313.540) (2,422.830) $ 682.390 SPI-22226 Statements of Changes in Fund Balances Years ended May 31,1980 and 1979 Balances at beginning of year Excess of revenues over expenses Special projects funds additions Assessments Meetings and conferences Sales of literature Contributions in support of special programs Budgeted general fund appropriations Other Special projects funds transferred to general fund revenues and expended Appropriated funds expended Write-off of special project deficit balances. Accounting manual project Plastics Hall of Fame Balances at end of year See accompanying notes to finanaciai statements. 1980 Special General projects funds funds $2,060,569 865,794 $1,393,415 -- -- 2,123,769 -- 888,381 -- 131,299 -- 41,500 -- 95,587 -- 1,413 -- (3,480,987) -- (13,436) -- -- $2,926,363 50,445 27,778 $1,259,164 1979 Special General turds projects `unds $1,818,447 242.122 $1,173,530 -- -- 2.039 398 __ 312.723 _ 109.286 -- 60.346 -- 300.000 -- 4.388 -- (3.039.534) -- (68.222) -- -- $2,060,569 -- -- $1,393,415 Notes to Financial Statements May 31,1980 and 1979 (1) Summary of Significant Accounting Policies The accompanying financial statements have been prepared on the accrual basis of accounting and in clude all material accounts receivable and payable, other liabilities and deferred charges. The special projects funds represent receipts from certain members of the Society participating in se lected industry projects and certain budgeted general fund appropriations. Such funds may only be utilized in accordance with the purposes established by the par ticipants and are in contrast with general funds, over which the Board retains full control to use in achieving any of the Society's purposes. Special projects funds are reported as revenues and expenses when utilized for their intended purposes, except that the budgeted general fund appropriations are expensed when appropnated. Fixed assets are stated at cost, less accumulated de preciation and amortization, which are being provided for over the estimated useful lives of such assets on a straight-line basis. Other significant accounting policies are set forth in the financial statements and the following notes. 16 (2) Retirement Plan The Society has a non-contributory trusteed retirement plan for all employees who meet age and length-ofservice requirements. Costs of the plan are funded cur rently, and for 1980 and 1979 aggregated $96,022 and $70,470, respectively. Unfunded past service costs amounted to $95,907 at June 1, 1979. the most recent plan valuation date. Such costs are being amortized over a ten-year period. At June 1, 1979, the assets of the fund exceeded the present value of the partici pants' vested benefits. (3) Products Research Committee Funds Effective December 3. 1974, the Society executed a consent order with the Federal Trade Commission which required, among other things, the establishment of a Products Research Committee for the purpose of conducting research into the uses and hazards of cel lular plastics products. The Society is custodian of the Committee's funds and, at May 31. 1980. held $318,875 ($621,795 in 1979) in checking and savings accounts for use by the Committee. Such funds are not included in the accompanying financial statements. SPI-22227 (4) Contingent liabilities i ne Society ras been named or acvised that it will be naned as codefendant in several lawsuits These actions, m the nature of oroauct liability suits relating primarily to the combustibility of foam plastics, seek judgements for substantial damages. Counsel ;s of the opinion that the likelihood of unfavorable outcomes is remote (5) Commitments 1`he Society s ease commitments 'or office spaces are as foi ow$ Year ending May 31 Commitment 1981 $229 944 1982 224.268 1983 224.268 1984 222.806 1985 196.395 1986 3,751 n.ese amounts rc ude tKe ease cf `"s ccc.ety s exec utive office spaces at an annua* 'ertai. 'ciucmg Charges for electricity of S172.673 cer year expires ;n 1985 ease Certain leases are subject to escalation provisions based on real estate taxes ana bunding maintenance costs. (6) Appropriated General Fund Balances Appropriated general fund balances consist of Direc tors Special Reserve funds for Capital improvements Other 1980 S 9.074 2 640.742 S2 656 816 1979 $ 7096 1.774 826 $1782 022 Auditors' Report Certified Public Accountants Peat, Marwick,Mitchell&Ca 345 Park Avenue New York. New York 10154 The Board of Directors The Society of the Plastics industry. Inc.: We have examined the balance sheets of The Society of the Plastics Industry, Inc. as of May 31,1980 and 1979 and the related statements of revenues and expenses, changes in fund balances, and changes in financial position for the years then ended. Our examinations were made in accordance with gen erally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we consid ered necessary in the circumstances. In our opinion, the aforementioned financial statements present fairly the financial position of The Society of the Plastics Industry, Inc. at May 31,1980 and 1979 and the results of its operations for the years then ended, in confomity with generally accepted accounting principles applied on a consistent basis. July 21. 1980 SPI-22228 17 Officers and Directors 1980-1981 OFFICERS IVAR A. LUNOGAARD E.t au Pont de Nemours 3, Cc vV'immgton Delaware CHAIRMAN inc JAMES S. HEARONS Owens Coming Fibergias Corp Toledo. Ohio VICE CHAIRMAN SECTION DIRECTORS RICHARD A. BRADBURY PMS Consoiiflated Gardena. California SECRETARY WILLIAM F. MERtCLE Cincinnati M'lacron, inc Cincinnati. Ohio treasurer IVER J. FREEMAN Package Machinery Co East Longmeadow. Massachusetts IMMEDIATE PAST CHAIRMAN ROBERT R. COOK Plastic industries, me Athens. Tennessee EASTERN SECTION DIVISION CHAIRMEN HUGH W. SILBERMAN Automatic Molded Plastics, me South 8eno, Indiana MIDWEST SECTION GARY L. GAHAGEN Package Machinery Co. East Longmeadow. Massachusetts NEW ENGLAND SECTION FRANK C. OeVORE Tn-Plas, Inc La Palma. California WESTERN SECTION HERBERT L. SPIVACK Metachem Resms Corp. west Warwick. Rhode island EPOXY RESIN FORMULATORS LUTHER I. WCKENS Radva Plastics Corp. Radford. Virginia EXPANDED POLYSTYRENE DAVID E. NEWMAN Oarlock. Inc. Camden. New Jersey FLUOROPOLYMERS CLAYTON T. LYONS Master Containers, inc. Mulberry. Florida FOAM CUP & CONTAINER RAYMOND A. GIORNELU Shell Chemical Co. Atlanta, Georgia FURNITURE 18 JACK G. FULLER, JR. Polymer Machinery Corp Berlin. Connecticut MACHINERY ARTHUR OASHUT Deluxe Die Mold, inc Elmhurst, Illinois moldmakers LEONARD W. GOLOEN Colgate Plastics Corp Buffalo. New York MOLOERS SP1-22229 RAYMOND E. ROSS Cincinnati Miiacron Co Batavia. On>o NATIONAL PLASTICS EXPOSITION JOHN J. RIZZO =MC Core Of,nceton Newjersey ORGANIC PEROXlOE PROOUCERS SAFETY H. RANDALL LITTEN Owens-ii'ino'S inc Toieoo. Ohio plastic beverage container FRANK M. HARRIS Aim Pacxagmg inc Port Canton Ohio PL4STIC 3CTTLE INSTITUTE IVAN K. DeBUEU Ei du Pont de Nemours & Co. inc. Wilmington. Delaware PLASTICS PIPE INSTITUTE ----- f W1LLJAM W. ROWLEY Mercury Plastics, me Middietieid. Ohio PROFILE EXTRUDERS ROBERT W. MILLER Hercules, inc. Middletown. Delaware RIGID PLASTIC CONTAINER GERALD J. WEIS impact Extrusions. Inc Grand Prairie. Texas SHEET PRODUCERS MANAGEMENT edwaro f. mcmahon Shell Chemical Co Houston. Texas POLYMERIC MATERIALS PRODUCERS CiRO L PETRUCELU Hanson Pattern & Mold Corp Ludlow. Massachusetts STRUCTURAL FOAM JAMES H. DAVIS Ashland Oil. inc Ashland. Kentucky REINFORCED PLASTICS/ COMPOSITES INSTITUTE * 1h ALFRED CtANCIOLO Olin Corp New Haven. Connecticut URETHANE SAMUEL P. RUTLANO Rutland Plastics. Inc. Charlotte. North Carolina VINYL FORMULATORS DIRECTORS AT LARGE JAMES W. JACKSON Bird & Son, inc. East Walpole. Massachusetts VINYL SIDING INSTITUTE Term expires May 31,1961 JOSEPH E. B(AFORE Rubbermaid. Inc. Wooster. Ohio T.E. BRANSCUM GottCorp. Winfield. Kansas JOHN E. PEPPERCORN Gulf Oil Chemical Co Houston, Texas RICHARO ROSSI Sinks Manufacturing Co South San Francisco. California SPI-22230 19 JOHN H. SCHROEOER Crescent P'asncs. me Evansville. in.a:ana Term expires May 31. 1982 JACK L SHAFER 3org-Wamer Chemicals ParnersDurg. West Virginia BYRON J. ANDERSON Northern Petrochemical Omaha. Nebraska JOSEPH L. DOWNEY Dow Chemical USA Midland. Michigan EL'. CONSTANZE FLINOT Battenfeid Corp. of America Skokie. Illinois WILLIAM J. GRAHAM Owens-iilmois. tnc Toiedo. Ohio JAMES N. QUINN The Budd Co. Troy, Michigan Term expires May 31. 1983 RICHARD T. STUDER HPM Corp. Mt. Gilead. Ohio STEWART 0. DANIELS Monsanto Plastics & Resins Co. St. Louis, Mo. W. JOHN GALVIN Burton Tool & Die Co. Leominster. Massachusetts WILLIAM H. GUTHRIE Phillips Chemical Co. Bartlesville, Oklahoma J. MICHAEL MURRAY EPS Industries, Inc. Wichita. Kansas MERRILL R. ROTH Grant & Roth Plastics. Inc. Hillsboro. Oregon 20 PETER A. SIMON Shamrock Industries. Inc Minneapolis. Minnesota SPI-22231 Staff RALPH L. HARDING, JR. =RESlCE\T THOMAS J. McGRATH general manager Staff Director P'astic Packaging Strategy Group Polymeric Materials P'oducers D>v CHRISTINE BENTON Administrative Assistant to the President Secretary to the Board JULIETTE LANG CAHN Stalf Director Appliance Council Committee on Transportation and Distnbutron Furniture Divison Housewares Manufacturers Group Microwave Oven Cookware Group Polystyrene Safety Group Profile Extruders OiviSion Vmyi S'dmg institute JEROME P. CARROLL Director of Safety Staff Director Committee on Occupational Safety ana Health (PAC) Coordinating Committee on Consumer Safety (PAC) Organic Peroxide Producers Safety Qivisidn Products Liability Committee (PAC) PVC Meat Wrap Ad-Hoc Committee Vinyl Film Group Vinyl Formuiators Division Radio Frequency Heating Committee WILLIAM A. OIRZULAmS Director of Administrative Services Staff Director Machinery Division National Plastics Exposition ALBERT J. EVANS Director of Statistics Staff Director Committee on Resin Statistics Financial Management Committee international Committee LEWIS R. FREEMAN. JR. Director of Federal Government Relations AILEEN GORSCHMAN riormat-on Soecians: Puoiic Relations JOHN GRAHAM Commun-caicns Scecanst PuOiiC Petat ors HOWARO KIB8EL Marxehrg A'-a-vst STEPHAN E. KLAMKE Execut ve 0'-ec:or P'astiCS P'ce institute Manage' P'astiCS ConstrjCVOn Council JOHN R. LAWRENCE Technical Director Staff Director Technical Committee (PAC) PVC Safety Group FRAN WALKER UCHTENBERQ Assistant Technical Director Staff Director Toxicology Committee (PAC) JOSEPH S. McOERMOTT Manager Remforced Piastics-Composites institute ROBERT MALUA Controller JOHN MALLOY Director of Packaging Services Staff Director Foam Cup & Container OiviSion Food Drug & Cosmetic Packaging Material Committee P'asnc Beverage Container OiviSion P'astic Bottle Institute Rigid Plastic Container OiviSion MAUREEN MIGOALEN Staff Director Fiuoropolymers OiviSion P'astics Drum Institute Sneet Producers Management Division Structural Foam Division TERRI R. MILLER Administrative Assistant to tne General Manager STAN MRUK Technical Director Plastics Pipe institute E.S. NUSPUGER Governmental Affairs Director Staff Oirector Public Affairs Committee State Governmental Affairs Committee CATHERINE A. RANDAZZO Assistant Manager Reinforced Piasnes/Composites institute RAFAEL RIVERA Production Supervisor MEREDITH SCHECK Federal Government Relations Representative AMY STRAVITZ Office Manager HUGH PATRICK TONER Manager J-ethane Civis-on Stair Director AN PciymerS Group (PaCi Aa-Hcc Ecch O'orydm Cc't-t :*ee BAC Edoxy Resm Formu.atcrs C'V s cn ac-oc R?7 Safety Committee -Rac JOHN WE1GLY Ve^oe'Sh'D D^ectcr Eastern Section '69 Ln-'cn Bou'evara Totcwa New je'sey 075;2 20' 79C -'S70 RICHARO FROCK Manager Eastern Section Midwest Section 3'50 Des P'aines Avenge Oes P'aines. M'mo'S 60018 3'2 297-6150 ROBERT W. SHERMAN Manager Midwest Section Stalf Director Midwest Section Moidmakers Dtvsion Moiaers Oivis.on MARGARET SHALLCROSS Assistant Midwest Manager Stalf Oirector Expanded Polystyrene Division New England Section 20 Speen St Framingham Exec Df,|Ce Frammgnam. Massachusetts O' 70i 61 7 879-3412 PATRICIA BROOKS Manager. New England Section Weetem Section Saddleback Square Suite 124 12440 Firestone BouievarO Norwalk. California 90650 213/864-2793 HERB OSBORNE Manager. Western Section ALTON OREW Assistant Western Manager Legal Counsel KELLER A HECKMAN it 5017th Street, nw Washington. D C 20036 202/457-1100 JEROME H. HECKMAN (SPi General Counsel) ROBERT ft. TIERNAN WAYNE V. BLACK MARTIN W. BERCOVICI JOHN S. ELOREO JOHN B. DUBECK CHRISTINE A. MEAGHER LAWRENCE ft. HALPRtN DEBORAH S. TRINKEA EDWARD L. KOftWEK DR. DANIEL S. OIXLER (Technical Consultant) SPI-22232 Plastics The Society of the Plastics Industry, Inc. 355 Lexington Avenue, New York, New York 10017 (212) 573-9400 EASTERN SECTION 169 Union Blvd. Totowa, New Jersey 07512 (201)790-1870 NEW ENGLAND SECTION 20 Speen St., Framingham Exec. Office Pk. Framingham, Massachusetts 01701 (617)879-3412 MIDWESTERN SECTION 3150 Des Plaines Avenue Des Plaines, Illinois 60018 (312)297-6150 WESTERN SECTION Saddleback Square. Suite 124 12440 Firestone Boulevard Norwalk, California 90650 (213)864-2793 WASHINGTON, D.C. OFFICE 1724 H Street, N.W. Washington, D.C. 20006 (202)298-7200 SPI-22233 1980-1981 Officers and Directors OFFICERS CHAIRMAN IVAR A. LUNDGAARO .1 3j Pont de Nemours & Co Wilmington. Oe'aware me vies Chairman JAMES S. HEAAONS Owens Corning FiDergias Cere Toledo, Ohio SECRETARY RICHARO A. BRADBURY PMS Consolidated Gardena. California TREASURER WILLIAM F. MERICLE Cincinnati Miiacron. Inc Cincinnati, Onio IMMEDIATE PAST CHAIRMAN IVER J. FREEMAN Package Machinery Co. East Longmeadow. Massachusetts SECTION DIRECTORS FURNITURE RAYMONO A. GIORNELL! Shell Chemical Co. At'anta. Georgia MACHINERY JACK G. FULLER. JR. 30lymr Machinery Coro 9er'in. Connecticut MCLDMAKERS ARTHUR DASHUT Deluxe Die Mold, me Elmhurst. Illinois MOLDERS LEONARO W. GOLDEN Colgate Plastics Corp 8utfalo. New York NATIONAL PLASTICS EXPOSITION RAYMOND E. ROSS Cincinnati Miiacron Co Batavia. Ohio ORGANIC PEROXIDE PRODUCERS SAFETY JOHN J. RIZZO FMC Corp. Princeton, New Jersey EASTERN SECTION ROBERT R. COOK Plastic industries. Inc Athens. Tennessee MIDWEST SECTION HUGH W. SILBERMAN Authomaic Molded Plastics. Inc South Bend. Indiana NEW ENGLAND SECTION GARY L GAHAGEN Package Machinery Co. East Longmeadow. Massachusetts WESTERN SECTION FRANK C. DeVORE Tn-Plas, Inc. La Palma. California DIVISION CHAIRMEN PLASTIC BEVERAGE CONTAINER H. RANDALL UTTEN Owens-Illinois. Inc. Toledo. Ohio PLASTIC BOTTLE INSTITUTE FRANK M. HARRIS Aim Packaging, Inc. Port Clinton, Ohio PLASTICS PIPE INSTITUTE IVAN K. DeBLIEU E.l. du Pont de Nemours 4 Co, Inc Wilmington. Delaware POLYMERIC MATERIALS PRODUCERS EDWARO F. MeMAHON Shell Chemical Co. Houston. Texas EXPOXY RESIN FORMULATORS HERBERT L SPIVACK Metachem Resins Corp. West Warwick, Rhode island EXPANDED POLYSTYRENE LUTHER I. DICKENS Radva Plastics Corp. Radford. Virginia PROFILE EXTRUOERS WILLIAM W. ROWLEY Mercury Plastics. Inc. Middlefiek). Ohio RP/C INSTITUTE JAMES H. DAVIS Ashland Oil, me. Ashland. Kentucky FLUOROPOLYMEAS DAVID E. NEWMAN Gariock. me. Camden. New Jersey RIGID PLASTIC CONTAINER ROBERT W. MILLER Hercules, Inc. Middletown. Delaware FOAM CUP 4 CONTAINER CLAYTON T. LYONS' Masier Containers. Inc. Mulberry. Florida SHEET PRODUCERS MANAGEMENT ^GERXLO J. VJflS Impact Extrusions. Inc Grand Prairie. Texas STRUCTURAL FOAM CIRO L. PETRUCELLI Hanson Pattern & Mold Coro Ludlow. Massachusetts URETHANE ALFRED CIANCIOLO Oiin Coro. New Haven. Connecticut VINYL FORMULATORS SAMUEL F. RUTLANO Rutland P'astics. inc Charlotte. North Carolina VINYL SIDING INSTITUTE JAMES W. JACKSON Bird S Son. Inc. East Waipoie. Massachusetts DIRECTORS AT LARGE Term expires May 31. 1991 JOSEPH E. BIAFORE Rubbermaid. Inc. Wooster, Ohio T.E. BRANSCUM Gott Corp. Winfield. Kansas JOHN E. PEPPERCORN Gulf Oil Chemical Co. Houston. Texas RICHARO ROSSI Sinks Manufacturing Co. South San Francisco. California JOHN H. SCHROEDER Crescent Plastics. Inc. Evansville, Indiana JACK L SHAFER Borg-Warner Chemicals Parkersburg. West Virginia Term expires May 31. 1992 BYRON J. ANDERSON Northern Petrochemical Omaha. Nebraska CONSTANZE FlINDT Battenfeid Corp. of America Skokie. Illinois ROBERT M. GERRITY Ford Motor Co. Wixom. Michigan WILLIAM J. GRAHAM Owens-Illinois, Inc. Toledo. Ohio JAMES N. QUINN The Budd Co. Troy, Michigan RICHARO T. STUDER HPM Corp. Mt. Gilead, Ohio Term expires May 31 1963 STEWART 0. DANIELS Monsanto P'astics 4 Pesms Co St Louis. Mo. W. JOHN GALVIN Burton Tooi 4 Die Co Leominster Massacnusetts WILLIAM H. GUTHRIE Phi,lips Chemical Co Bartlesville. Oklahoma J. MICHAEL MURRAY EPS maustnes me Wichita. Kansas MERRILL R. ROTH Grant 4 Potn P'asucs me Hiiiscoro.O'egon PETER A. SIMON Shamrock industries, nc Minneapolis. Minnesota SPI-22235 Chairman's Report This oast year has been an eventful one for SPI. The unfortunate illness that struck our president, Ralph Harding, has cast its shadow over the entire period. From a personal point of view, I regret deeply that I was not able to continue to work with him. Ralph Harding and 1 spent many hours discussing what might be done to strengthen SPI, recognizing its realized growth, the serious challenges it faces at this juncture m its history, and the dynamic approach it must take as it looks to the future. Although some of the many ideas we explored have been translated into action, much had to be deferred until SPl's management team is back at full strength. However, we are pleased to be able to report that a number of basic steps were taken. SPl's Mission Statement was updated and clarified, thus providing a firm base for planning for the future. Moreover, the responsibilities of the various Standing Board commit tees have been redefined, to emphasize that they have a responsibility to pJay a more active, creative role m charting the affairs of SPI. In addition, the Board has redrawn the respon sibilities of the President, taking cognizance of SPl's extraordinarily diverse internal and external functions. The Planning and Salary Committees' work to define and improve SPI organizational structure helped to clarify what the Society must provide, now and in the future, to insure the kind of top quality serv ices our membership reouires. and the capability to deal with the kind of vital public issues that an organization representing an industry the size of the plastics industry must have. The work of these committees and others involved in this important task must come to a rapid conclu sion. In my judgment, the SPt staff is, at present, over worked. and lacking in middle management depth. In short, the burden is too great on too few, to achieve the kind of effective management and coordination re quired in the dynamic situations in which SPI is con stantly involved. The job of finding a near president for SPI is well under way. This process might have proceeded more rapidly, someone could say. However, I believe that the Executive Committee used sound judgment m holding this position open until Ralph Harding s doc tors could render a considered opinion as to the pro spects of his return to that office. The great respect that the Executive Committee, and all of us. hold for Ralph, along with our gratitude for his contributions to SPI over so many years, combined to convince us that, m good conscience, no otner course was poss ible. Under the leadership of General Manager Tom McGrath, the SP! staff has done an exceptional job of keeping the organizational wheels turning. Their ef forts are much appreciated. An extra Durden has fallen on the shoulders of SPl's Board members who have played a strong role in our society's many ac complishments during the past year. In this regard. I want to take special note -- and pay tribute to -- the members of the Board's standing committees who have worked so diligently over the past twelve mon ths. As I conclude my term as Chairman, l look back on my long years of association with SPI. I treasure the recollection of the many important accomplishments that I have witnessed during those years. It has been a very real pleasure, in the course of my SPI association, to work closely with so many people of fine character. I know that SPI will continue to grow in value to its members under the leadership of the new Chairman, Jim Hearons, and Vice Chairman, Bill Sessions. I am sure they will receive the same ex cellent assistance that I have had from our treasurer. Bill Mericle, and our secretary, Tony Bradbury. SPI is in good hands for the coming year, I am sure. SPI-22236 1 SPI Public Affairs Committee Basically SPl's Public Affairs Committee (PAC) is the result of the industry's recognition in the very ear ly '7Q's that external forces were affecting our marketing abilities and the realization that assuring the plastics industry freedom to market its products involved a whole new spectrum of public issues reaching far beyond the marketplace. The principal current issues are toxicology, combustibility, solid waste and. most recently, energy. The role of PaC is to coordinate and manage the response of the plastics industry to issues like these. PAC is composed of representatives of member companies selected by the Board. It reports directly to the Executive Committee of the Board of Directors. The present structure of PAC is based on the follow ing considerations: 1) The necessity for an umbrella structure to pro vide up-to-date and comprehensive information, legislative monitoring and contact, public reitions, and other support programs. PAC's in clusive structure also has the responsibility for industry-wide issues such as energy. 2} To provide the kind of specific expertise that a more narrow Issue requires. To accomplish this, PAC created the concept of issue Coordinator. Each Issue Coordinator is responsible for main taining an up-to-date and comprehensive understanding of a generic issue of concern to the industry. He provides background and ex pertise on the problems within his area of in terest. He is the liaison between operating units dealing with the issues, the SPI staff, and the support services PAC provides. The Issue Coor* diantor has the knowledge and the resources to develop strategies, to recommend policy and to implement it. When an issue concerns a clearly defined portion of the industry, ad hoc committees or special interest units are formed. Such a unit draw$ upon the exper tise and support of PAC and its staff; coordinates its activities with other SPI activites. but is essentially autonomous. PAC has structured itself to respond both to the fluidity of the issues confronting us and the diversity of the industry we represent. 5Pi position on a particular issue or to lend additional support to longstanding SPI positions, in 90me cases, these committees also develop and supervise the im plementation of programs to promote the positions that have been deveinoed. Their work, in many respects, is the bedrock of the PAC effort, tor without technically sound data, it would De impossible for PAC legal government relations and public relations ex perts to defend the industry successfully \n me various public policy annas. PAC sometimes sponsors its own scientific research if such work ia not being carried out by other responsible groups, or nise it will use data gathered by others, but analyzed by pac. to provide the neces sary background for our issue-related efforts. it should also be pointed out that these committees do not operate in a vav.num, but draw upon and pro vide expertise to divmons and othur seif-funded groups within SPI as wnti as to outside organizations whose goals coincide with those ot the plastics in dustry. PAC's close liaison with these groups, to share in formation and experience to avoid duplication of ef fort. has resulted in another benefit: the creation of a cadre of legal, technical, government and public rela tions personnel from bom staff and outside counsel whose expertise can be called upon by other groups within SPI when the neo arises. In simple terms, the technical committees of PAC provide the ammunition that the other special units ot PAC use in their ongoing battle with over-legislation and over-regulation. Governmental Affaire Again in the past yer, SPl's in-place mechanism tor monitoring of legislation, surveillance, and repor ting, did an excellent ioh. Lobbyists were catted upon for special services in It) gtates. Member companies, through SPl's Suppon System, were alerted to dangerous situations xnp reacted auongty as re quired. As a result, no legislation regarded as a Technical Support The technical support activities of PAC are centered primarily in these committees: the Coor dinating Committee on Consumer Safety, which handles matters deafrng with combustibility of plastics; the Plastics Resource Recovery and Conser vation Committee, which oversees technical activities in the solid waste area; the Toxicology Committee (now administered by the Polymeric Materials Pro duces Division); the Committee on Occupational Safe ty and Health; the Energy Task Force and the Product Liability Committee. In general terms, all these committees have as their prime function the gathering of technical, scien tific, economic, or medical data in order to develop an Members ot toe Committee on Resin Statistic* worked ciosefy with the U.S. Depsitment of Commeia* jq gnng about major changes in the StartcUnl Industrial Classification (SO Coces sealing with plastic product* rhe revisions repi*nt a maior steO tovrara erofoving collection of information about plastics markets 2 SPI-22237 Senator Robert J. Dole (R-KS), Chairman of the Senate Finance Committee (second from right) was among the featured speakers at the Annual Washington Meeting, January 28-30.1981 Shown with Senator Dole are (left to right): SPI general manager Thomas J McGrath; SPi chairman Ivar A. Umdgaard, E.l. du Pont de Nemours & Co. Expanded Polystyrene Division chairman J. Michael Murray. EPS industries Inc. and director-at-large T.E. Branscum. Gott Corporation serious special threat to the industry was enacted -- and during the year there were three outstanding suc cesses: HAWAII: During the legislative session, an SPIbacked bill to remove the ban on plastic beverage containers was introduced and enacted. MINNESOTA: After six years of effort, the SPI-ied effort to eliminate the ban on non-returnable plastic milk bottles was successful. During the year, the United States Supreme Court overturned two lower court decisions and ruled that Minnesota's ban should go into effect. SPI was able to see that repealing legislation was introduced and formed a coalition of interested parties to work for its passage. SPI members in Minnesota cooperated enthusiastically, as a major lobbying effort was led by our legislative counsel in Minnesota. As a result, the repeal legisla tion was passed and signed by Governor Quie. This had been a long-term activity, involving every aspect of our Governmental Affairs program. Al though the original legislation was passed by the State in 1977, the ban was eventually overturned with out ever going into effect. Thus another major market was kept open for the industry. Also in Minnesota, SPI technical data and coopera tion with the Minnesota Pollution Control Agency per suaded MPCA to withdraw support of a ban on plastic soft drink containers, thereby setting an important precedent. MOLD RETENTION: In the last Annual Report we noted that legislation to relieve molders of the respon sibility for retaining customer molds indefinitely had been enacted in California, Massachusetts and Min nesota. During the 1981 session, similar SPI-initiated legislation was passed in Illinois, Indiana. New York, Oregon, Rhode Island, and Vermont. At this writing mold retention bills are being actively considered by The latest study on plastics and energy, conducted by Franklin Associates. Ltd. for SPI. showed that the nation s energy consump tion would Pa increased substantially it plastics products ware not available. 3 SPI-22238 the Legislatures m Ohio and Michigan. Moiders m ail these states have rallied around SPI's Section managers and have played key roles in passage of this important legislation. We hope that, with passage in so many of these important states, we have set a precedent which will make passage easier as this program is continued in the next legislative sessions. Washington Activities The year was highlighted by an expansion of the association's overall role in Washington, particularly m relations with Congress. A legislative Agenda was developed for the first time in the association's history, detailing those issues on which the SPI wished the 97th Congress to work. SPI Director Gene Branscum, President of Gott Corp., testified before the Senate Finance Committee in September to express the plastics industry's strong concern over the proposed Superfund bill and its potential cost impact on plastics processors. SPI lobbied actively for the enactment of risk reten tion legislation to facilitate companies insuring them selves for product liability purposes. SPI Director Bin Sessions, vice president of American Can Co., testified in May before the Senate Energy and Natural Resources Committee to urge that future oil shortages rely upon the free market rather than arbitrary government controls. He em phasized, though, the essentiality of plastics should any new end-use allocation system be created. The Annual Washington Meeting m January featured addresses by: Sen. Robert Dole (R-KS), Chairman of the Senate Finance Committee; Sen. Robert Stafford (R-VT), Chairman of the Senate En vironment and Public Works Committee and Sen. Paul Tsongas (D-MA). A record number of SPf member companies was represented. A 10-member Federal Government Relations Steer ing Committee was created during the year to provide advice and counsel to the association in its Congres sional relations. Extensive efforts continued to identify and involve in the SPI, the Washington Represen tatives of member companies. Several special issue briefings were held for the more than 80 companies with Washington offices. An SPi-backed bin to remove ffw ban on plastic beverage containers was Produced and enacted m Hawaii. -i* . ... Ufcif', After six years of effort, the SPl-led effort to eliminate the ban on non-returnable plastic milk bottles was successful m Minnesota. NPE '82 Interest in SPI's 19S2 National Plastics Exposition and Conference, scheduled for Chicago's McCormick Place, June 21-25, 1982. is running at peak level. At the drawing for space held in Chicago on April 15, 1981.451 companies reserved 390,000 square feet of floor space, the entire exfrbit capacity of McCormick Place. Even though a number of companies could not be accommodated at that time because of the virtual ly "soid-out" situation, addftional requests for space continued to come in at a brisk pace from firms eager to participate in this important industry event. The result: SPI has leased 45.000 square feet of ad ditional space in McCormick West, a companion ex position hall adjacent to McCormick Place. This will bringihe total exhibit area for NPE *02 to 425.000 square feet, an increase of almost 25% over the 341,000 square feet used By the 521 companies in NPE '79. It is anticipated that more than 600 company names will be on the exhibitor roster by opening day. Under the chairmanship of Raymond E. Ross of Cincinnati Miiacron, a blueprint was designed to assure the show's success. Traditional programs for attracting top decision makers are being pursued. New programs, designed to win increased attendance from areas of the U.S. not heavily represented at past Expositions, as well as from overseas, are being add ed to the event's overall promotional activities, which are directed to major plastics end-use industries. At tendance at NPE '82 is expected to exceed 50,000 and to represent an exceptionally high buying in fluence. Plans for the concurrent National Plastics Con ference are in the advanced stage, with many of the 12 seminar programs and speakers identified. The sessions will cover subjects of key interest to Exposi tion visitors and will focus on the new economics of plastics, increased productivity, and better materials utilization. Highlighting the Confernce will be in novative programs on Computer Aided Design (CAD) and Computer Aided Manufacturing (CAM). 4 SPl-22239 Operating Units SECTIONS Eastern Section E-CON-Vl. the section's annual meeting, was held m October 1980. with the theme: "1980 -- Decade of Opportunity -- 1989.' Major markets outlooks, public relations, regulations, and environmental control were the topics covered. The section's Board of Directors voted to merge the Greater New York Chapter into the Mid-Atlantic Chapter. As a result of a poll of members of the Section's Mid-Atlantic Chapter, a new mix of dinner meetings and half* day seminars will take place. Revisions in meeting schedules are also being planned for the Southern Chapter with an annual meeting/outing planned for tate March-early April. Midwest Section The section concentrated on developing legislative teams in the midwest states. Organized groups now exist in Michigan, Minnesota. Indiana and Ohio. In addition to providing worthwhile aid to moiders and mold- makers on storage problems, the teams are getting excellent experience in their state legislative practices. In Michigan the Automotive SubGroup held two Mini-Conferences, in cluding one m April 1981 on financial and management topics. This sub group became a Michigan chapter of the section, with interests that are broader than automotive. New England Section Moider members were instrumental m passage of mold retention legislation in Massachusetts. Vermont, and Rhode island. Twenty apprentices completed the first SP1 Moldmaker Apprentice Train ing Program in December 1980. Plans were initiated for the second session, to start in early September 1981. "The Effects of Influence" was the theme of the 36th Annual New England Conference, held in October 1980, with 235 attendees. Under review by the New England Committee, the Guidebook on "Reduc ing Energy Costs in the Plastics In dustry" was completed and distributed to members. An audko/visua! program was developed to be used at meetings and for loan to members. Three committees were formed by the New England Board: Public Rela tions, Government Affairs, and Mem bership. These committees started de velopment of obiectives and working toward more membership involvement in regional activities. Western Section The section's Board accepted a croposal to amend the bylaws so that chapter officers will serve for two years to conform with divisions and the section. The 38th Annual Western Section Conference was held in May. 1981 with more than 600 registrants. Moldars Division members par ticipated m meetings involving the for mation of a new medical products group and a joint meeting involving communications problems and com mon needs of moiders and moldmakers. Legislative meetings were con ducted in Houston in November 1980 and in Sacramento in February 1981. Twenty apcrentices completed the first SPi New England Moldmaker Apprentice Training Program in Oecember i960. Plans were initiated for future sessions. A guidebook on "Reducing Engergy Costs in the Plastics Industry " was completed and distributed to members. An audkvvisuai program on the sub|ect was aiso developed. SPI-22240 5 DIVISIONS Epoxy Resin Formulators Division The division is proceeding with the printing of a "Test Method Manual." The manual will contain in a single volume ail the updated ERF test methods and the associated American Society for Testing and Materials methods. A first draft of a prooosed major revi sion of the "Guide for Classifying and Labeling Epoxy Products According to their Hazardous Potentialities" was completed for review. The Training Manual Task Force developed an outline for a training manual for new formuiator employees. Expanded Polystyrene Division The Architectural Information Pro gram. initiated and funded by the Material Manufacturers Subcommit tee. was completed with the produc tion of an exhibit booth displaying the EPS insulation industry geoehcally at both the American Institute of Archi tects convention and the Construction Specifiers institute show. This program will continue under the funded support of the material manufacturers and the block moider members of the division. The Block and Insulation Board Committee produced a White Paper on EPS insulation for educational pur poses. A slide/tape presentation was also developed. The division's annual conference in March 1981 became its "First Inter national EPS Conference" with 17 countries represented and U.S. mem bers attending in record numbers. Foam Cup and Container Division The division continued its successful public relations campaign to promote the increased use of foam cups and containers for hot and cold drinks, salad and dairy products, and hot foods served through fast-food chain and independent outlets. The campaign features success stories and articles in trade maga zines. plus direct mail promotion to na tional and regional chain buyers. The campaign continues to emphasize con sumer and environmental benefits of foam cups, and support of anti-iitter campaigns. Fluoropolymers Division The "PTFE Granular Resm" statistical program continued on course with release of data for the sixmonth and 12-month periods ending December 31. i960. The Heavy Wall Tubing Subcommit tee reviewed a draft specification from the American Society for Testing and Materials on PTFE heavy wall tubing and will provide input on this draft. The Thick Coatings Subcommittee developed a final draft of "Proposed Standard Method for Electrically De tecting Faults in Corrosion-Resistant Fluoropolymer Coating Systems." The Fire Safety Committee con tinues its work with the Coordinating Committee on Consumer Safety with regard to the Nations Bureau of Stand ards test protocol on toxicity. Furniture Division The division sponsored a technical symposium in conjunction with the Southern Furniture Manufacturers Association s Furniture Eauipment and Supoly Exposition. A Poly Award competition was con ducted with awards given in recogni tion of outstanding contributions for the use of polymers <n furniture. The Technical Committee worked on the preparation of a handbook. "Plastics m Furniture." International Division The international Committee receiv ed division status in May 1981. The third Video Catalog Exhibition was held during March and April i98i m Aregentina. Peru, and three cities in Brazil. A very successful Trade Center Ex hibition was held in Mexico City m September 1980. with 47 exhibitors participating. The division prepared the first m a series of Exporting Seminars schedul ed for October 1981 in Chicago. In conjunction with the U.S. Depart ment of Commerce, the division work ed on arrangements for a special pro motion publication entitled "Commer cial News." A comprehensive Export Develop ment Survey among SPI members got underway to determine the extent of membership involvement in interna tional trade. Machinery Division In response to the need for risk management, a "How to Protect" pro cedure. designed to aid manufacturers in implementing the necessary precau tions against product liability exposure, is in the final stages of development. The division is comprised of 148 companies that manufacture blow molding, extrusion, injection molding, specialized processing and thermoset processing machinery, as well as aux iliary and compounding equipment. Each of the sections representing these interests is actively involved in the compilation and/or development of test methods, nomenclature and var ious industry practices which are in tended to provide "hands-on" reference sources for all division members. The "recommended prac tice for noise measurement techniques with injection molding machines" and a similar procedure for granulators, are examples of documents that have been recently published. Recommend ed practices for programmable con trols and for color coding of injection equipment for safety purposes are cur rently in the process of development. Fifteen proposed safety standards were submitted to the American Stand ards institute for eventual promuiga- SPI-22241 tion as ANSI documents. Work was started on tO other standards pro posals. Highly innovative and timely pro grams were scheduled, involving indepth presentations on economic trends, productivity and quality, inter national business, and risk manage ment. The division's annual spring meeting drew more than 200 atten dees. A metrication program was initiated to provide the membership with appro priate guidelines and education rela tive to this complex subject is m the process of development. Molders Division The committee that was set up to assist SPl in a joint venture with the Department of Energy reviewed and approved the energy savings manual. The manual, "Reducing Energy Costs m the Plastics Industry," was the basis for an audio-visual presentation avail able from SPl. A subcommittee of the division reviewed the developing "Safety Manual." The subcommittee made specific recommendations for format change and recommended that the manual be tied into a training program in order to be useful. Molder members working with the SPl sections helped bring about mold retention legislation as law in eight states, and pending in three more states. Moldmakers Division Following the success of the New England apprentice school, the division began a review of the program for rec ommendation of SPl's future rpte. The career guidance video tape developed by the New England Committee was converted to a 16-millimeter film now available for broad distribution and sale. The i960 Labor Survey we expand ed to include more detail on fringe benefits, it was decided to conduct the 1961 survey earlier in the year to try to get more of a calendar year pattern. The Division apprentice chairman and staff became active in a Task Force to Solve the Skilled Trade Short age. a coalition of all associations with apprentice training. A "Need to Train" sound/slide program is being put together by the division and the American Mold Builders Association to convince employers of the benefits of training. The division explored the possibility of a new apprentice school in Los Angeles. Organic Peroxide Producers Safety Division The division agreed to develop a training program (audio/visual) senes m conjunction with the National Fire Protection Association to assist fire services m handling organic peroxide incidents. The worldwide literature study on organic peroides was completed and approved by the division. An emergency response system was prepared for division considera tion aii recommended practices are bemg updated with olans for publica tion py the end of 1981 Plastic Beverage Container Division Active support of nationwide recycl ing of plastic beverage bottles con tinued as a major program. Specific projects were instituted m Massachusetts, New Mexico, and Arizona to encourage increased con sumer returns and establish additional collection centers. Opportunities are under investigation in Minnesota. California, and several other areas. A major effort of the division is con tinued support of legislative relations programs in several states where man datory deposit proposals threaten con sumer choice and growth of aii beverage containers. Members also participated in the Gatekeeper Meeting project of the Plastic Bottle Institute, and assisted in the funding of this and other PBI projects. The PBCO Technical Committee undertook the development of a stand ard beverage bottle thread finish to be recommended to the American Society for Testing and Matrials, and a "Good Practices Manual." Plastic Bottle Institute The year's major program was a continuation of the highly successful Gatekeeper Meeting series, which takes member representatives to selected cities across the country to speak with newspaper editors, televi sion producers, and environmental groups about the energy, safety and solid waste benefits of plastic bottles. Other puoiic relations projects in cluded promotion of the PBI School Kit, which provides an audio/visual presen tation to high school science classes, and publication of a "Spokespersons Manual" including comprehensive data on all environmentally oriented aspects of plastics bottles. Excellent trade reception was given to publication of a new "Good Prac tices Manual for Plastic Bottle Packag ing" and P'oceecmgs -j -ne cystic Bottle Seminar. ">e'C n vew 'or* or October i960. Plastic Packaging Strategy Group The Plastic Packaging Strategy Group has led the fight to 'eoeai the Minnesota Milk Bottle ban Through its members, it has raised the funding, provided witnesses and supporting data. During the year, oral arguments were presented m the U S Supreme Court >n opposition to the State s ap peal. While the industry case lor the plastic milk bottle did not win m the Supreme Court, it achieved a great vic tory in the Minnesota Legislature The prohibition of plastic milk ootties in that state was repealed on May 8. 1981 Plastics Pips Institute The Institute's Fuel- Gas Division developed a series of slide presenta tions for use in the training of operators and inspectors. The presentations cover fundamentals of proper joining and installation of polyethylene gas distribution piping. PPI, on behalf of the Fuel Gas Divi sion, was a co-sponsor of an American Gas Association-Plastic Pipe Sym posium hew in New Orleans m Novem ber i960. The division was active m the devel opment and publication of "General Guidelines for the Heat Fusion of Unlike Polyethylene Pipe and Fittings." The Large Diameter Polyolefin Pip ing Diviston agreed to participate m an upcoming American Society of Civil Engineers International Conference on Underground Plastic Pipe. The division completed the development of a movie on slip lining that has been very wen received by the industry. The division also published an informational bro chure, "Underground Installation of Polyethylene Pipe." The Hydrostatic Design Stress Com mittee was involved in developing policies on substitution of ingredients in formulations already having the HDSC. Polymeric Materials Producers Division The major activity of the division was providing support to the Public Affairs Committee with its raw materials pro gram to try to insure that there would be an unhampered flow of feedstocks to our industry should an emergency supply disruption occur. The division assists the Committee on Resin Statistics and the Toxicology 7 SPI-22242 Committee >n developing and review ing their program The objectives of the Toxicoiogy Committee are: 1) To review government policies and make recommendations for SPI response to protect and promote the legitimate interests of the plastics in dustry. 2) To coordinate the collection, review and dissemination of tox icological data for industry-wide use. and to provide the means for joint ac tion and testing programs. 3) To identify areas o* possible con cern in the field of toxicity of plastics and to make recommendations for ac tion to appropriate SPI divisions and committees. 4) To coordinate activities with sister associations m the U.S. and abroad. Also, the members are informed about potential broad based industry issues. One of the division's meetings addressed product liability concerns. Polyurethane Division The Rigid Foam Committees com mented on two proposed Federal Specifications for rigid polyurethane foam boardstock. They also revised and reissued the bulletin on fire safety guidelines, are participating in a joint research program with the National Forest Products Association on the ap plication of wood siding over foam sheathing, and are developing a roof ing seminar in conjunction with the Urethane Foam Contractors associa tion. The Flexible Foam Committees are working with the upholstered furniture industry on cigarette ignition and the National Bureau of Standards on standards for mattresses for institu tional uses, have conducted a market research study on foam mattresses, and have revised the format for the Bedding Magazine column on foam mattresses. The division also commented on the EPA advance notice of a proposed rule to further restrict the use of chlorofluorocarbons. The division was the focal point for putting together a panel of small business people to testify before the House Small Business Com mittee on the eflect of the proposed EPA rule. Profile Extruders Division The division agreed to concentrate on management concerns of the custom profile extruder in the coming year. Conferences were sponsored by tne 8 Civision in Septemoer '98C arc March 1981 as part of combined meetings Teid with the Vinyl Siding institute and the Window and Door Division, one dealt with the housing industry, and the second with financial and manage ment matters. Reinforced Plastics/ Composites Institute Advances in processing of reinforc ed plastics composites were covered n deptn at the 36th Annual Conference and Exhibit held in Washington, D C. in Feoruary 1981. The Executive Committee appointed a task force to review the exhibit phase of the annual RPfC technical meeting. A study on manufacturing feasibility by Arthur D. Little, Cambridge, MA, was completed and the results releas ed to the industry. The study describes conditions in the various fabrication processes used within the industry and specifies the controls needed on a unit operations basis. In the spirit of continuing coopera tion. the Steering Committee forward ed data to the National Institute of Oc cupational Safety and Health from the health studies program, including infor mation on engineering controls, eco nomic impact, and the results of an SPI-coordinated Swedish plant tour. Rigid Plastic Container Division The group focused its major effort on the Annual Management Confer ence. held in March, to provide an op portunity for both members and pro spective members to discuss impor tant market and industry developments with prominent experts. The year's conference emphasized new food package development, feedstock sup ply outlook, and the latest machine and equipment developments. The Thermoformed Container Statistical Program was expanded to bring in several major producers, and now represents close to 100 percent of the industry. Sheet Producers Management Division To reflect recent bylaw revisions dealing with membership qualifica tions. a revised membership applica tion form and a new promotional brochure were drafted for publication. The division, through its Technical Committee, continued work on devel opment of a recommended standard for ABS sheet which will be proposed as a standard for promulgation by a 'ecogni2ec star care shaking organ ization The number of participants n tne statistical program, Shoments and Unfilled Orders for Extruded Sheet oy Material" has increased, providing a more accurate statistical profile Processor members participated in an Annual Financial & Operating Ratios survey conducted by the Financial Management Division of $Pi and ob tained a report on data for their specif ic industry. Structural Foam Division "Productivity througn Technology" was the theme of the Nintn Annual Structural Foam Conference and Par's Competition, wnicn tor the second con secutive year attracted over 500 at tendees. The conference program in cluded a "processors panel" providing information on the various processes utilized in the structural foam industry Over 30 structural foam products were entered in the Parts Competition. Six awards were presented to first and second place winners for functional application and inovative design. Awards were also presented for Con ference and Judges Special categor ies. The Combustibility Committees "Large Scale Fire Test Program on Electrical and Appliance Enclosures" was completed. The published report, prepared by Underwriters Laboratory, is now available through SPI. The Machinery Committee con tinued its work on a proposed standard entitled "Safety Requirements for Con struction. Care and Use of Injection Molding Machines for the Manufacture of Thermoplastic Structural Foam." The Physical Testing Committee prepared the final draft of "Recom mended Test Procedures for Shielded Structural Foam Resins": testing to be conducted by a national laboratory. The recommended procedures will ultimately be submitted for promulga tion through a recognized standardsmaking organization. Plans were initiated for the Tenth An nual Conference scheduled in April. 1982. Vinyl Formulate!* Division The division's 64th Business Meeting in October i960 concentrated on the Resources Conservation and Recovery Act. Its affect on and im plementation by vinyl formulators and processors was presented. Plasticizer test methods were up dated and distributed to the member ship. SPI-22243 Vinyl Siding institute A public relations campaign aimed at home improvement editors and con sumers was conducted. The Code Committee made visits to code authorities historic restoration agencies, and army representatives to discuss characteristics of vinyl siding. Work progressed on revision of the "Applicators Manual" and pampniets on "ComDustibility" and "Cleaning " Memoers were active on American Society for Testing and Materials com mittees addressing matters wmch af fect vinyl siding and continued their weatherabiiity studies. Window and Door Division The Window and Door Division, formerly a committee of the Profile Ex truders Division, was granted Division operating unit status in October 1980. Committees established include: Technical, Marketing. Code, Safe Use. and Window Systems. The Technical Committee submitted proposed standards on performance, impact resistance, lineal specifications and material specifications to the American Society for Testing and Materials for promulgation. A pamphlet on vinyl window frames was developed and will be printed shortly. A statistical program was ap proved for year-end 1981 implementa tion. Plastics in Construction Council The Council's insulation Committee worked on updating the model codes of the Building and Code Ad ministrators and the Southern Building Code, in addition, work with the Coun cil of American Building Officials' Board for the Coordination of Model Codes Committee on Foam Plastics led to the development of a uniform state ment regarding the use of foam plastic insulation that will, upon final approval, be submitted to the various model codes Dy CABO. The Light Transmitting Committee worked with the CABO/BCMC m an at tempt to develop uniform language on roof panels and skylights The commit tee also worked on revision of the model code chapters dealing with light transmitting panels. Polystyrene Safety Group Two large scale lire tests were con ducted at Southwest Research in stitute to develoo additional data on the comparative performace of wood and polystyrene living room ijrniture The group expects a full report on the tests to be completed by the end of i98i. Vinyl Film Group The group launched a Quarterly statistical program on end use applica tions for vinyl film and sheetmg in the areas of automotive. Dags, construc tion, furniture and housewares, home furnishings, unmgs and industrials, medical, outdoor furniture, and outerwear. The statistical Question naire is m the process of being refined by the SPI director of statistics. SPECIAL PURPOSE GROUPS Appliance Council The Chairman and Staff Oirector monitored regulatory activity and ad vised members. Housewares Manufacturers Group The Chairman monitored all legislative developments that could im pact on the manufacturers of plastics housewares and submitted applicable data. Responses were made to in quiries from official agencies and the public regarding additives used in the manufacture of housewares. "Wangwriter" for printing won the Conference Award and Second Place for innovative Oesign at the Ninth Annual Structural Foam Conference and Parts Competition, March 24-26. i98i. Palm Springs. California. The product was designed by Wang Laboratories. Lowell. Massachusetts, and manufactured by Southeastern Kusan. Greenville. Souin Carolina. The moldmaker was Hanson Pattern & Mold Corporation, Ludlow, Massachusetts 9 SPI-22244 Microwave Oven Cookware Group The group developed recommended rest methods tor plastics microwave cookware which will be printed as an interim guideline. Work was conducted on a question and answer pamphlet for consumers, due to be published before the end of 1901. A Dual Ovens Committee was form ed to address the suitability of cookware m ovens with both conven tional and microwave capabilities. A Marketing Committee was organized to develop a public relations program. Division members approved the initiation of a statistical program. Plastic Drum Institute The Institute reorganized to include the following committees: Policy, Gov ernment Relations. Reuse. Technical. Public Relations and Liaison with the Packaging Institute of the U.S.A.'s Chemical Packaging Committee and Petroleum Packaging Committee. The membership voted to amend the Institute's bylaws and expand membersnip to include closure manufacturers. in response to a request made by the PDI the Occupational Safety and Health Administration issued a Field In struction in October i960 which per mits the use of polyethylene containers authorized for shipment by the Depart ment of Transportation for the storage of both combustible and flammable liq uids at inside storage areas. The PDI participated in a Rail impact Test program conducted by the Association of American Railroads. After the first two phases AAR conclud ed that the polyethylene drums per formed well. A third phase will ascer tain a system for blocking and bracing for plastic and steel drums. The Reuse Committee embarked on a program to determine the reuse capabilities and reconditioning pro cedures for plastic drums. The first reconditioning phase is scheduled for October. 1981 with the test report ex pected by May. 1982. The Technical Committee prepared the final draft of a Bulletin on "Recom mendations Concerning Reusable In dustrial Plastic Containers." COMMITTEES Food, Drug and Cosmetic Packaging Materials Committee The activities of this committee were noteworthy for the greatly increased effort in negotiating with the Food and 10 Drug Administration on food package testing policies anq procedures, and the development of early and signifi cant input to Congressional considera tion of the Food Safety Amendments for 1981 The Technical information Subcom mittee esiabiisned task forces on con sumer diet exposure, shelf life, and FDA liaison, all devoted to providing FDA with information on a more scien tifically sound method for evaluating the safety of plastic food packaging materials. The Lawyers Advisory Subcommit tee undertook a major project to develop legislative recommendations to Congress on a more efficient system of regulating food packaging materials, to provide consumers with the benefits of the latest technical and scientific ad vances while affording every reasonable degree of safety protec tion. Committee on Transportation and Distribution The committee completed its first year as a merged group (nee Commit tee on Transportation and Committee on Distribution). Committee efforts resulted in a na tionwide 4% rail increase on plastics in lieu of the 8% originally approved by the interstate Commerce Commission. This will result in an estimated industry savings of $6.9 million on a recurring annual basis. Committee protests were successful in defeating a 5% rail increase on plastics to. from, and within the East. This brought the total estimated in dustry savings to $10 million. Ten members agreed to self-fund a complaint action with the ICC on the current level of rail resin rates. Comments were filed with the ICC on "Market Dominance Determination and Consideration of Product Competi tion" and their relationship to rail resin rates. Following an ICC decision, the Committee intervened in the Fifth Court of Appeals, joining other ship pers' interests in challenging the deci sion. The committee also protested the Motor Classification Board proposal which would increase motor carrier rates on plastics articles by 20 to 40 percent. A Vinyl Chloride Monomer Emer gency Response Task Group was form ed to cooperate with Chemtrec. a system set up by the Chemical Manufacturers Association to monitor rail accidents. The task group will operate on a continuing basis relative to the VCM Emergency Response Pro gram. Two Conference R'cgrams *e'e held: The Impact of Government Regulations on the Cost of Transporta tion and Distribution" m Jure ^980 and "From Eyeshades to integrated Cir cuits: Distribution Systems for the 80's" in January 1981 Financial Management Committee A seminar entitled "How to Make Computers Talk Plastics." conducted m December 1980. was so successful that two similar seminars were scheduled for spring 1981 Two more seminars are planned for the spring of 1982. Other survey reports issued by the committee were: the "42nd Annual Labor Survey of Plastics processors," the " 12th Biennial Salary Survey of SPl Plastics Processing Firms," and the "19th Annual Financial and Operating Ratios Survey of .SPl Plastics Pro cessors." The committee is investigating the possibility of developing an additional volume on the subject of "Productivity" to be added to the popular "Financial Management Manual for Plastics Processors." Committee on Resin Statistics Committee members and staff work ed closely with the U.S. Department of Commerce to bring about major changes in the Standard Industrial Classification (SIC) Code dealing with plastic products. The revisions were accepted for the 1982 Census and rep resent a significant step forward m im proving knoweidge about plastics markets. A booklet. "SIC's in the Plastics Industry" was developed to explain the classification system. Substantial progress was made in improving the coverage and quality of the Plastics pipe and Fitting Report, formerly part of the Plastics Pipe in stitute. The 1981 edition of "Facts & Fig ures of the Plastics Industry" to be released in October 1961. The publica tion has more than 130 pages covering production, sales, capacities, markets and dollar value for the major plastics resins, plus data on fabricated plastics products, machinery, and the feed stocks for plastics. New reports have been initiated on engineering thermoplastics, thermo plastic polyesters, and geographical consumption of polystyrene resins. Final plans were completed for a one-day conference, "international Plastics Outlook: Markets and Issues." to be held in New York City m December 1981. SPI-22245 Financial Statements THE SOCIETY OP THE PLASTICS INDUSTRY, INC. Balance Sheets May 31, 1981 and 1960 Assets Current assets: Cash m checking accounts and on hand Savings deposits Short-term investments, at cost (which approximates market) Receivables: Membership dues Other Less allowance tor doubtful accounts Net membership dues and other receivables Accrued interest Prepaid expenses and other current assets Total current assets Fixed assets: Furniture and equipment Leasehold improvements Less accumulated depreciation and amortization Deferred charges -- 1982 National Plastics Exposition Other assets Total assets Liabilities and Fund Balances Current liabilities: Cash overdraft Accounts payable and accrued expenses Unearned membership dues Total current liabilities Deferred revenue -- 1982 National Plastics Exposition Total liabilities Fund balances: General fund: Unappropriated Appropriated (note 6) Special projects funds Total fund balances Total liabilities and fund balances See accompanying notes to financial statements. 1981 1980 S 9,843 22,882 4,093,866 9,199 20,029 (8,624) 20,604 146,289 18,474 4,311,958 231,943 106,873 338,818 (147,401) 191,415 527,350 25,856 35,056,579 7,266 21,427 4,495.283 886 40.777 (1.386) 40,277 141.699 23.061 4,729,013 220.113 106,873 326,986 (113.8H) 213.175 121,846 24,327 5,088,361 121,253 730,143 34,059 885,455 360,220 1,245,675 (63,153) 2,816,904 2,753,751 1,057,153 3,810,904 35,056,579 220,896 616,292 65,646 902,834 -- 902,834 269.547 2.656.816 2,926,363 1,259.164 4,185,527 5.008.361 SPI-22246 1 THE SOCIETY OF THE PLASTICS INDUSTRY. INC. Statements of Revenues and Expenses Years ended May 31, 1981 and 1980 Revenues: Membership dues Interest Sales of literature Special projects Other Expenses: Direct: Membership services: Legal and consulting Communications -- public relations Administrative Membership promotion and services Directory Special projects -- research, development, legislative and public relations Service operating units Divisions and groups Regional offices Public affairs committee Chemical Industry Trade Advisor Indirect program, administrative and general: Salaries a'nd employee benefits Office supplies and expenses Rent Auditing and computer services Provision for depreciation and amortization Provision for doubtful accounts Other Less allocation of administrative expenses to National Plastics Expositions Excess (deficiency) of revenues over expenses before expenses funded by Directors' Special Reserves and 1979 National Plastics Exposition Operations. Expenses funded by Directors' Special Reserves: Computer study expenses International Standards Organization meeting expenses Write-off of special project deficit balances: Accounting manual project Plastics Hall of Fame* 1979 National Plastics Exposition revenues, net of related expenses of $1,900,103 Excess (deficiency) of revenues over expenses See accompanying notes to financial statements. 1981 $4,594,544 648,608 86,137 3,446,805 87,129 8,863,223 I960 4.399.298 635.889 73.277 3,480,987 34.653 8,624,104 706,489 118,310 190,809 45,296 29,987 3,446,805 197,130 134,040 274,782 1,309,100 3,500 1,961,009 385,426 182410 69,929 38,052 8,235 25487 9,126,376 200,000 8,926,376 (63,153) (73,4591 (36,000) -- -- -- (172,612) 650,745 121.217 201,638 54,013 22,077 3,480,987 186,988 135,156 220,511 1,198,529 2,000 1.688.921 356,056 150,635 64,483 32.576 (26,845) 45,770 8,585.457 230,900 8,354,557 269,547 (50.445) (27,778) 674,470 865,794 12 SPf-22247 THE SOCIETY OF THE PLASTICS INOUSTRY, INC. Statements of Changes in Financial Position Years ended May 31,1981 and 1980 Funds were provided by: Excess (deficiency) of revenues over exoenses Add (deduct) items not requiring (providing) funds: Depreciation and amortization Gain on sale of fixed assets Funds provided by operations Increase in non-current deferred revenue Proceeds on sale of fixed assets Total funds provided Funds were used for: Purchase of fixed assets Increase in non-current deferred charges Decrease in special project funds balances Increase in non-current other assets Total funds used Increase (decrease) in working capital Analysis of changes in components of working capital: Increase (decrease) in current assets: Cash Savings deposits Short-term investments Net membership dues and oher receivables Accrued interest Prepaid expenses and other current assets Deferred charges -- 1979 National Plastics Exposition Decrease (increase) in current liabilities: Cash overdraft Accounts payable and accrued expenses Unearned membership dues Deferred revenue -- 1979 National Plastics Exposition Increase (decrease) in working capital See accompanying notes to ftanciai statements. 1981 i960 $ (172,612) 38,052 (1,975) (136,535) 360,220 1,975 225,660 16,292 405,504 202,011 1,529 625,336 S (399,676) 865.79J ' 32.576 -- 898.370 -- -- 898.370 64.684 121,846 134,251 6,117 326,898 571,472 2,577 1,455 (401,417) (19,673) 4,590 (4,587) -- (417,055) 99,843 (113,851) 31,587 -- 17,379 S (399,676) (52,142) 1,417 (400,035) 22,184 25,715 6,534 (1,145,164) (1,541,491) (125,890) (47.665) (32.022) 2,318.540 2,112.963 571,472 SPI-22248 13 THE SOCIETY OF THE PLASTICS INOUSTRY, INC. Statements of Changes in Fund Balances Years ended May 31, 1981 and 1980 General tunps 1941 Special projects funds General `unas i960 Soeciai projects funcs Balances at beginning of year Excess (deficiency) of revenues over expenses Special projects funds additions: Assessments Meetings and conferences Sales of literature Contributions in support of special programs Budgeted general fund appropriations Appropriations from Directors' Special Reserves for International Standards Organization meeting Other Special projects funds transferred to general fund revenues and expended Appropriated funds expended Write-off of special project deficit balances: Accounting manual project Plastics Hall of Fame Balances at end of year See accompanying notes to financial statements. $2,926,363 (172,612) -- -- -- -- -- -- -- -- $2,753,751 1,259,164 -- 2,017,624 965,256 108,412 110,602 145,000 36,000 1,350 (3,446,805) (139,450) -- -- 1,057,153 2.060,569 865.794 -- -- -- -- -- -- -- -- 2.926,363 1,393,415 -- 2.123.769 888,381 131,299 41,500 95,587 -- 1,413 (3,480.987) (13,436) 50,445 27,778 1,259,164 14 SPI-22249 Th Society ot the Plastics Industry, Inc. Notes to Financial Statements May 31,1981 and 1980 (1) Summary of Significant Accounting Policies The accompanying financial statements have been prepared on the accrual basis of accoun ting and include all material accounts receivable and payable, other liabilities and deferred charges and revenue. The special projects funds represent receipts from certain members of the Society participat ing in selected industry projects and certain budgeted general fund appropriations. Such funds may only be utilized m accordance with the purposes established by the participants and are in contrast with general funds, over which the Board retains full control to use in achieving any of the Society's purposes. Special projects funds are reported as revenues and expenses when utilized for their intended purposes, except that the budgeted general fund appropriations are expensed when appropriated. Fixed assets are stated at cost, less accum ulated depreciation and amortization, which are being provided for over the estimated useful lives of such assets on a straight-line basis. Other significant accounting policies are set forth in the financial statements and the follow ing notes. (2) Retirement Plan The Society has a non-contributory trusteed retirement plan for all employees who meet age and length-of-service requirements. Costs of this defined benefit plan are funded currently, and for 1981 and 1980 aggregated $121,561 and $96,022, respectively. Unfunded past service costs amounted to $165,179 at May 31, 1980, the most recent plan valuation date. Such costs are being amortized over a ten-year period. The accumulated plan benefits and plan net assets as of May 31, i960 are as follows: Actuarial present value of accumulated plan benefits: Vested Nonvested $631,706 184,756 $816,462 Net assets available for benefits $956,260 The rate of return used in determining the ac tuarial present value of accumulated plan benefits was 6%. (3) Products Research Committee Funds Effective December 3.1974, the Society ex ecuted a consent order with the Federal Trade Commission whicn required, among other `mgs. the establishment ot a Products ^esearen Ccm- mittee for the purpose of conducting 'esearen into the uses and hazards of ceiiuiar plastics products. The Society is custodian of the Com mittee's funds and, at May 31, 1981, held $258,912 ($318,875 m I960) m checking and savings accounts for use by the Committee. The Committee terminated operations by reso lution dated December 12, 1979. and approved a resolution to give the residual funds of the Committee to the Society to be spent m support of fire research similar in scope to the Commit tee's programs. Such funds have not been trans ferred to the Society as of May 31. 1981 and, accordingly, have not been included in the ac companying financial statements (4) Contingent Liabilities The Society has been named or advised that it will be named as codefendant in several law suits. These actions, in the nature of product liability suits relating primarily to the combustibil ity of foam plastics, seek judgements for substantial damages. Counsel is of the opinion that the likelihood of an unfavorable outcome m such actions is remote. (5) Commitments The Soceity's lease commitments for office spaces are as follows: Year ending May 31 Commitment 1982 1983 1984 1985 1986 $286,939 287,655 283,917 248,650 12,806 These amounts include the lease of the Soci ety's executive office spaces at an annual ren tal. including charges for electricity, of $225,254 per year. The leases expire in 1985. Certain leases are subject to escalation provi sions based on real astata taxes and building maintenance costs. (6) Appropriated General Fund Balancee Appropriated general fund balances consist of Directors' Special Reserve funds for: 1981 1980 Capital improvements Other $ 4,675 2.812,229 8,074 2,648,742 $2,816,904 2,656,816 SPI-22250 Auditors' Report PPeat, Marwick, Mitchell &Ca Certified Public Accountants 345 Park Avenue New York. New York 10154 The Board of Directors The Society of the Plastics industry, inc.: We have examined the balance sheets of The Society of the Plastics Industry, Inc. as of May 31, 1981 and 1980 and the related statements of revenues and expenses, changes in fund balances, and changes in financial position for the years then ended. Our examinations were made in ac cordance with generally accepted auditing standards, and accordingly in cluded such tests of the accounting records and such other auditing pro cedures as we considered necessary in the circumstances. In our opinion, the aforementioned financial statements present fairly the financial position of The Society of the Plastics Industry, Inc. at May 31. 1981 and 1980 and the results of its operations for the years then ended, in conformity with generally accepted accounting principles applied on a con sistent basis. July 13, 1981 L 16 SPi-22251 Officers and Directors 1981-1982 OFFICERS JAMES S. MEARONS Owens Cornmg Pibergias Coro Toledo. Ohio CHAIRMAN L. WILLIAM SESSIONS American Can Co. Greenwich, Connecticut VICE CHAIRMAN SECTION DIRECTORS RICHARD A. BRADBURY PMS Consolidated Gardena. California SECRETARY WILUAM F. MERICLE Cincinnati Milacron. Inc Cincinnati, Ohio TREASURER W 1 IVAR A. LUNOGAARO E.l. du Pont de Nemours & Co . >nc Wilmington. Oeiaware IMMEDIATE PAST CHAIRMAN WILLIAM A. HEINE Acromark Co.. Inc. Berkeley Heights, New Jersey EASTERN SECTION DIVISION CHAIRMEN HUGH W. SILBERMAN Automatic Molded Plastics, Inc South Bend. Indiana MIDWEST SECTION joscfh n. McDonald Sweetheart Plastics. Inc. Wilmington. Massachusetts NEW ENGLANO SECTION OONAL0 K. SULLIVAN Sullivan Plastics Equipment Co.. Inc. Los Angieies. California WESTERN SECTION HERBERT L. SP1VACX Metachem Resins Corp. West Warwick, Rhode island EPOXY RESIN FORMULATORS LUTHER L DICKENS Radva Plastics Corp. Radford, Virginia EXPANDED POLYSTYRENE OAVOE. NEWMAN Gartock, Inc. Camden. New Jersey FLUOROPOLYMERS CLAYTON T. LYONS Master Containers. Inc. Mulberry. Florida FOAM CUP & CONTAINER RAYMONO A. QIORNELU Shell Chemical Co. Atlanta. Georgia FURNITURE JOHN R. ZEBRYK Package Machinery international East Longmeadow, Massachusetts INTERNATIONAL JACKG. FULLER, JR. Polymer Machinery Corp. Berlin, Connecticut MACHINERY _ vi ARTHUR DASHUT Deluxe Oie Mold, inc Elmhurst. Illinois MOLDMAKERS 17 SPI-22252 RONALD J. CLEVERINQA Michigan Plastic Products Co Grand Haven, Michigan MOLDERS RAYMOND E. ROSS Cincinnati Milacron Co Batava, Ohio NATIONAL PLASTICS EXPOSITION JOHN J. RIZZO FMC Coro Pnr>ceton, New Jersey ORGANIC PEROXIDE PRODUCERS SAFETY PETER J. WEGGEMAN Continental Group Stamford. Connecticut PLASTIC BEVERAGE CONTAINER GEORGE K. LANOON, JR. Continental Group Stamford. Connecticut PLASTIC BOTTLE INSTITUTE ALEX M. ERQANIAN Piexeo (Div of Amated industries) Franklin Park. Illinois PLASTIC PIPE INSTITUTE FRANZ R. ALTPETER Profile Extrusiona Co. Hastings. Minnesota PROFILE EXTRUDERS EDWARO F. McMAHON Shell Chemical Co Houston. Texas POLYMERIC MATERIALS PRODUCERS Olin Corp. New Haven, Connecticut POLYURETHANE JAMES H. DAVIS Ashland Oil. tnc. Ashland. Kentucky REINFORCED PLASTICS/ COMPOSITES INSTITUTE ROBERT W. MILLER Hercules. Inc. Middletown. Delaware RIGID PLASTIC CONTAINER JOHN L WITT Witt Plastics. Inc. Greenville, Ohio SHEET PRODUCERS MANAGEMENT BRUCE C. WENDLE Monitor Molded Products Tacoma. Washington STRUCTURAL FOAM ROBERT N. EVANS flenosoi Corporation Ann Arbor, Michigan VINYL FORMULATORS DIRECTORS AT LARQE Term expires May 31, 1982 JOHN F. FLANAGAN Mastic Corporation South Bend, Indiana VINYL SIDING INSTITUTE PAUL N. MANCUSO Fiberlux Products. Inc. Mount Vernon, New York WINDOW & DOOR BYRON J. ANDERSON Northern Petrochemical Omaha. Nebraska 18 WILUAM J. GRAHAM Owens-Illinois, tnc Toledo. Ohio WOLFGANG A. MACK Werner & Pfleiderer Corporation Ramsey, New Jersey JOHN T. MOORE Eastman Chemical Products, inc. Kingsport. Tennessee SPI-22253 A r*i JAMES N. QUINN The Bufla Co Troy. Michigan Term expires May 31, 1963 RICHARD T. STUDER HPM Core Mt Gilead. Ohio STEWART 0. DANIELS Monsanto Plastics 4 Resins St. Louis. Mo W. JOHN GALVIN Burton Tool 4 Die Co. Leominster. Massachusetts WILLIAM H. GUTHRIE Phillips Chemical Co. Bartlesville. Oklahoma J. MICHAEL MURRAY EPS Industries, me Wichita. Kansas MERRILL R. ROTH Grant 4 Roth Plastics. Inc. Hillsboro. Oregon Term expires May 31, 1984 PETER A. SIMON Shamrock industries. Inc. Minneapolis. Minnesota JOHN R. EAGLE Exxon Chemical America* Houston. Texas LEONARO W. GOLDEN Colgate Plastics Corp. Buffalo. New York LLOYD 4. (MICKEY) GRIFFITH Sunset Plastic Products. Inc. Lenexa. Kansas RICHARO P. ROSSI Sinks Manufacturing Co. San Francisco, California SAMUEL J. RUPERT Hoover Universal. Inc. Ann Arbor. Michigan SAMUEL P. RUTLAND Rutland Plastics. Inc. Charlotte. North Carolina S PI-22254 19 Staff 'RALPH L. HARDING, JR. PRESIDENT Q. ft. Monk" Munger wu named Preaidant and chief ooarating of* ficar of Tha Society of the Piaatica industry. Inc., on July 1.1961. He aucosedsd ftalph L. Harding. Jr., who resigned on May 1. 1981. for rena of health. Mr. Harding wiH continue to serve SPt as a consent until June i. 1985. Monger had been President of the Air-Conditioning and RefrefgoraSoe institute, baaed in Washington. He was a Member of the SPI staff from 1967 to 1974. serving as General Maaoger before moving to Washington. Prior to joe*iQ SPt for the first time. Mr. Monger was Managing Diractor of S Mineral Fiber Products Bureau. Ha also held the post of Technical Oirector for the American Society of Refrigerating Engineers, in 1979, ha was honored by being named a Fellow of the American Society of Hasting. Refrigerating and Air-Conditioning Engineers. Mr. Munger began his business carrer as a design engineer and subsequent held a variety of sales and product managamant posi tions in induavy, covering a period of a dozen years. A native West Hartford, Connecticut. Mr. Munger served as a fighter pilot *t the U S Army's Eighth Air Force in Eurooe during World war n. Following military service, he entered California State Polytechnic College, receiving his degree in engineering there. THOMAS J. MCGRATH GENERAL MANAGER Staff Director Plastic Packaging Strategy Group Polymeric Materials Producers Oiv. CHRISTINE BENTON Administrative Assistant to the President Secretary to the Board JUUETTE LANG CAHN Staff Director Appliance Council Committee on Transportaton and Distribution Furniture Division Housewares Manufacturers Group Microwave Oven Cookware Group Polystyrene Safety Group Poflle Extruders Oivision Vinyl Siding Institute Window and Door Division JEROME P. CARROLL Director of Safety Staff Director Committee on Occupational Safety and Health (PAC) Coordinating Committaa on Consumer Safety (PAC) Organic Peroxide Producers Safety Division Product Liability Committee (PAC) PVC Film Meat wrap Committee Radio Frequency Heating Committaa Vinyl Film Group Vinyl Formulators Oivision PRANK G M CORBIN Oirector of Communications Staff Director Public Relations Committaa WILUAM A. DIRZUUUTIS Oirector of Administrative Sarvicaa Staff Diractor Machinery Division National Plastics Exposition fliiiijni lor neoffl rMMTW vil -- rwnwna u cor**** 20 SPI-22255 ALBERT J. EVANS Director of Statistics Staff Director Committee on Basin Statistics Financial Management Committee International Committee LEWIS R. FREEMAN, JR. Director of Federal Government Relations THOMAS R. QOLOBERQ Federal Government Relations Representative AILEEN GORSCHMAN Information Specialist. Public Relations JOHN GRAHAM Communications Specialist, Puoiic Relatione HOWARD KIBBEL Marketing Analyst STEPHAN E. KLAMKE Executive Director Piaatics Pipe institute Manager Piaatics in Construction Council JOHN R- LAWRENCE Technical Director Staff Director Energy Task Force (PAC) Piaatics Resource Recovery and Conservation Committee (PAC) PVC Safety Group FRAN WALKER UCHTENBERG Assistant Technicai Director Staff Director ad hoc TFE Toxicology Committee Toxicology Committee (PAC) JOSEPH S. MeDERMOTT Manager Reinforced Ptastics/Compositas institute ROBERT MALUA Controller JOHN MALLOY Oiractor of Packaging Servicea Staff Director Foam Cup Container Division Food. Drug & Cosmetic Packaging Material Committee Plastic Beverage Container OMMon Plastic Bottle Institute Rigid Plastic container Division MAUREEN MIQDALEN Staff Director Fluoropotymers Division Plastic Drum Institute Sheet Producers Management ONWor Structural Foam Division in * [TERRI R. MILLER [AttTriniatrative Assistant to the ^General Manager '1* MRUK Director Pipe institute E.S. NUSPL1GER Governmental Affairs Director Staff Director Public Affairs Committee State Governmental Affairs Committee CATHERINE A. RANDAZ20 Assistant Manager Reinforced Piastics/Composites institute RAFAEL RIVERA Production Supervisor MEREDITH SCHECK Federal Government Relations Representative AMY STRAVITZ Office Manager HUGH PATRICK TONER Manager Polyurethane Division Staff Director AN Polymers Group (PAC) ad hoc Epichiorophydnn Committee (PAC) Epoxy Resin Formulators Division ad hoc PET Safety Committee (PAC) Eastern Section 169 Union Boulevard Totowa, New Jersey 075t2 201/790-1870 RICHARD FROCK Manager. Eastern Section Mldweet Section 3150 Des Plaines Avenue Dee Plaines. Illinois 60018 312/297-6150 ROBERT W. SHERMAN Manager. Midwest Section Staff Oirector Midwest Section Moldmakers Division Moiders Division MARGARET SHALLCROS8 Assistant Midwest Manager Staff Director Expanded Polystyrene Division New England Section 20 Speen Si., Framingham Exec. Office Pk. Framingham. Massachusetts 01701 617/879-3412 PATRICIA BROOKS Manager. New England Section Weetem Section Saddleback Square Suite 124 12440 Firestone Boulevard Norwtfc, California 90650 213/864-2793 HERB OSBORNE Manager, western Section ALTON OREW Assistant Western Manager Legal Counsel KELLER A HECKMAN 1150 17th Street, N.W Washington. D C. 20036 202/457-1100 JEROME H. HECKMAN (SPl General Counsel) MARTIN W. BERCOVICI WAYNE V. BLACK PETER U de la CRUZ JOHN B. DUBECK JOHN S. ELDRED ROBERT L FLESHNER LAWRENCE P. HALPRIN EDWAR0 L KORWEK CHRISTINE A. MEAGHER SHEILA A. MILLAR ROBERT R. TIERNAN DEBORAH S. TRlNKER DR. OANIfiL S. DIXLER DURWARO F. DOOGEN (Technical Consultants) SPI-22256 Plastics The Society of the Plastics Industry, Inc. 355 Lexington Avenue, New York, New York 10017 (212) 573*9400 Eastern Section 169 Union Blvd. Totowa, New Jersey 07512 (201) 790-1870 Midwestern Section 3150 Des Plaines Avenue Dos Plaines, Illinois 60018 (312) 297-6150 New England Section Office 20 Speen Street Framingham, MA 01701 (617) 879-3^2 Washington, D.C. Office 1724 H Street, N.W. Washington, D.C. 20006 (202) 298-7200 Western Section Saddleback Square, Suite 124 12440 Firestone Boulevard Norwalk, California 90650 (213) 864-2793 SPI-22257 September 1? StBJTET: MINUTE3 OF TnZ JULY 25, 1975 BOARD OF DIRECTORS MEETE-M Enclosed are the Minutes of the Board of Directors Meeting held at the Lincolnshire Resort, Lincolnshire, Illinois on July 25* The following list are the future meeting dates and locations of Sri 3oari Meetings. Please be sure to mark your calendars for these dates. October 22 - 21, 1975 Williamsburg Lodge Williamsburg, Virginia February 11-13, 1976 Innisbrook Tarpon Springs, Florida April 5-7, 1976 Mayflower Hotel Washington, D. C. (ANNUAL MEETING) July 27-30, 1976 Del Monte Lodge Pebble Beach, California As most of you are aware, starting at the July Board meeting in 1976, there will be three Board meetings a year instead of four meetings. There will be a sunoer meeting, an October meeting and a combined Board and Annual Meeting in Washington during the month of March. As soon as these dates and locations are set, I will let you know. I look forward to seeing you in Williamsburg. Enclosures Laura E. Jones Secretary to the Board of Directors SPI-22258 The Society of the Plastics Industry, Inc. 355 Lexington Avenue New York. New York 100'7 (212) 573 9400 MINUTES BOARD OF DIRECTORS MEETING OF THE SOCIETY OF THE PLASTICS INDUSTRY, INC. Lincolnshire Resort Lincolnshire, Illinois July 25, 1975 SPI-22259 The Society of the Plastics Industry, Inc. 355 Lexington Avenue New York. New York 10017 (212) 573 9400 MINUTES OF THE BOARD OF DIRECTORS MEETING - July 25, 1975 - Lincolnshire Resort DIRECTORS PRESENT: A. Andrews Fritz Backscheider Walter Becker DeWitt Cheney Les Christensen (Thursday only) James Coleman F. Reed Estabrook Jack Flynn Jerome Formo Iver Freeman Robert Gerde6 Jack Glatt Charles Grant Robert Halliday James Hearons Robert Hoffer Frank Jones Jtobert Kittredge Josef KLingler Leonard Lane John Larkin (Thursday only) Vernon Larson (Thursday only) Jean Malone (Thursday only) Richard McKibben William Miller LaVern Niedfeldt Charles O'Connell Donald Pollock John Reib Saul Rlcklln C. Rex Scott Stanford H. Shaw Edward Slatcher Samuel Smith Robert Stilllnger Fred C. Sutro Kenneth Valleskey Eugene Wiard William Wlllert i Monsanto Company Recto Molded Products, Inc, Mobay Chemical Corporation Allied Chemical Corporation Atlas Plastics Corporation ICI Americas Brook Molding Corporation Dow Chemical U.S.A. Plastics, Inc. Package Machinery Company Plastic Moldings Corporation Keolyn Plastics, Inc. Hercule s, Incorporated Wilson & George Meyer & Co. Owens-Corning Fiberglas Hoffer Plastics Corporation Michigan Chrome & Chemical Co. Fabri-Kal Corporation Janler Plastic Mold Corporation Icore International W. R. Grace & Co. Union Carbide Corporation B. F, Goodrich Chemical Co. Modern Plastic Co* Johnson Rubber Company Technical Plastics Corp. Gulf Oil Chemicals Co. Consupak, Inc. Conair, Inc. Dixon Industries Corp. Phillips Petroleum Shaw Plastics Corporation Container Corporation of America Van Dorn Company Crown Molding Co. USS Chemicals Mastic Corporation Ren Plastics Egan Machinery Co. &* SPI-22260 DIRECTORS ABSENT: Robert Cook Barton Hodges Robert S. Morrison Clyde Rushing Gerald A. Schultz. Plastic Industries, Inc. Charlotte Pipe and Foundry Molded Fiber Glass Companies Peco Manufacturing Co., Inc. Noury Chemical Corp. INVITED GUESTS: Daniel Burleson Ron Evason Robert Forger Martin Ryan Haley Karl Hochschwender William Kennel Ronald McCreary Richard Moore John Myers George Schuette Donald Snow (Thursday only) Albert Spaak Robert Springborn (Thursday only) Matthew Swetonic Martin Ryan Haley Associates SPI-Canada Society of Plastics Engineers Martin Ryan Haley Associates American Hoechst Corporation Amoco Chemicals Corporation D-M-E Corporation W, R. Grace & Co. Container Corporation of America USS Chemicals Springfield Moulders Plastics Institute of America DeBell and Richardson Hill and Knowlton SPI STAFF PRESENT; Lloyd N. Darden Ralph L. Harding, Jr Jerome H. Heckman Laura E. Jones John Lawrence Thomas J. McGrath E. S, Nuspliger Margaret Shallcross Robert Sherman Robert R. Tiernan Western Regional Manager President SPI General Counsel Secretary to the Board of Directors Technical Director General Manager Director of Public Affairs Assistant Midwest Manager Midwest Regional Manager Associate Counsel Chairman Scott called the meeting to order at 8:35 a.m. and called for self introductions . Mr. Scott asked for approval of the Minutes of the last Board Meeting, which were mailed to all Directors. There being no additions or corrections, Mr. Backscheider moved that the minutes be approved, Mr. Lane seconded the motion and the Board approved the motion. - 3- EXECUTIVE COMMITTEE REPORT Vice Chairman Stan Shaw presided at the Executive Committee Meeting because Chairman Scott could not be present on Thursday due to urgent company business. Mr. Shaw reported that the Executive Committee discussed and advised the Finance Committee that $70,500 of the original Public Affairs Council funds be acknowledged as their funds, and it be held as a part of the Directors* Special Reserve. These funds will be made available to the present Public Affairs Committee. Mr, Niedfeldt motioned the following resolution: BE IT RESOLVED that $105,779 of PAC reserves be transferred to the Directors' Special Reserve and that $78,500 of this total be consigned to the exclusive use of the Public Affairs Committee. Mr, Sutro seconded the motion and the Directors approved the motion. Mr. Shaw continued, stating that Mr. Niedfeldt advised the Executive Committee that the Class I dues pledges for 1975 - 1976 were now sufficient to cover the budget. The Executive Coranittee held a lengthy discussion on Mr. McGrath's capital budget proposals. Mr. Niedfeldt assured the Committee that the Finance Committee would give this matter very careful scrutiny. Regarding the Membership Development Committee report, it was resolved that the Membership Development Coranittee would furnish a list to Ralph Harding of large captive processing operations who are not members of SPI, so that a program could be undertaken to have them join the Society. Mr. Sutro, Chairman of the PAC, reported about the problems inherent in an aggressive PAC program: more press attention could mean more disagreement amoftg members because of the negative public relations fall-outj i.e. the VCM-FVC situation. Other matters discussed by the Executive Committee will be reviewed in the individual Board Coranittee reports. Mr. Gerdes moved to accept the Executive Committee report, Mr. Andrews seconded the motion and the Board approved the motion. PROCESSORS CCBMTTEE REPORT Mr. Gerdes reported on the deliberations of the Processors Coranittee. The Committee discussed Senate Bill 2018 regarding third party liability. 2he Executive Coranittee recommended to the Planning Committee that a special Committee of the Board be appointed, consisting of processors, machinery manufacturers and materials suppliers to consider this bill, in order to develop an SPI position. SPI-22262 4. > PROCESSORS COMMITTEE REPORT (cont.) The Processors Committee has been monitoring export sales, analysing the data and reporting on the results every six months. The Committee voted to change the reporting procedure to an annual report. The Processors Committee passed a resolution, that as part of an early earning system, quarterly reports should be compiled on capacity versus production versus sales. The Committee also voted to establish a labor relations program on a one-year trial basis and to retain Mr. Theodore Tierney as a labor relations consultant. Mr. Gerdes reported that the Processors Committee was also recommending to the PAC the adoption of a Plant Energy Saving Program for the processors, and Mr. Scott advised that all Committee recommendations should be referred to the Planning Committee for further study and recommendations. Mr. Harding assured the Board the SPI is in a position to monitor the export sales data immediately, and that no further Board action was necessary. Mr. Estabrook added that the Energy Saving proposal was already in the hands of the PAC coordinator, Bob Kittredge. Mr, Shaw motioned that the Processors Committee report be accepted, Mr. Fbrmo seconded the motion and the motion was carried by the Directors. I FINANCE COMMITTEE REPORT Mr. Niedfeldt reported that the Finance Committee started its meeting at 7:30 a.m. and first reviewed the preliminary results of the 197^ - 1975 fiscal year. The Committee noted that the performance of SPI was good. Mr. Snow, a member of the Pension Plan Trustees Committee was present at the meeting and he reported about the plan and the steps which the Committee is considering for possible cost reductions. The Committee conducted a lengthy discussion about the proposed 1975 - 1976 capital budget requirements. This budget, not only Included elements involved in the move to the new New York offices, but also much needed equipment replacement and additions for all offices. As a result of their discussions, the Finance Committee offered the following resolutions: BE IT RESOLVED that the approximate surplus of $365*003 reflected in the preliminary year-end statement be transferred to the Directors Special Reserve. Mr. Reib motioned that the resolution be approved, Mr. Andrews seconded the motion and the Board approved the motions I SPI-22263 5 FINANCE COMMITTEE REPORT (cont.) BE IT RESOLVED that the following capital expenditures be authorized: 1. $2,693 for the Washington Office furnishings. 2. $1,825 for the Chicago Office mailing equipment. 3. $7,185 for furnishing the Los Angeles Office on its transfer from 6ll South Catalina St., Los Angeles to Norwalk, California plus an $800 moving expense. Mr. Andrews moved that the resolution be approved, Mr. Formo seconded the motion. The Board voted in favor of the motion with Mr. Freeman dissenting. Mr. Niedfeldt stated that a detailed review was made of the New York office moving costs, which were previously authorized in the amount of $98,000 in the 1974 - 1975 budget. This $98,000 figure plus $225,000 of the building owners front money was to have covered all the physical move costs, architects fees, appropriate furnishings for the President's office, the General Manager's office, the conference room, the reception area and the lobby area. Unfortunately, the office demolition, renovation and other construction costs exceeded the early estimates of $180,000 by approximately $57,000. Therefore $57,000 of the previously Board authorized $98,000 had to be used to cover the over-run. After the Finance Committee reviewed the costs, the Committee took under consideration the capital budget request of $126,000 for the completion of the furnishings for the new office, as well as numerous other items of an equipment nature such as typewriters, mailing and printing equipment. The Committee agreed on the following statement and resolution: 1. A serious concern and opinion was expressed that the request appeared excessive. 2. The concept and objective of having a respectable and representative headquarters office was desirable and necessary. 3. A deep concern was expressed about approving large capital budgets during these difficult economic times and reduced profits for many many colonies in our association. 4. Recognition is certainly given to the fact that capital expenditures during the last four or five years for SFI have been minimal. 5. The Conittee wishes to point out the fact that SPI*s reserves are still well below the minimum 25^ of present operating budget. 6. It is encumbant upon all management persons, particularly in these economic times, to get the job done efficiently, wisely and yet be frugal with the members' money as we must be in our own businesses. SPI-22264 - o- Therefore, fully recognizing the need to proceed, the Finance Committee by a vote of 5 - 2 offers the following resolution: BE IT RESOLVED that $57,000 capital expenditures be authorized with the money to be taken from the Directors Special Reserve at this time for the continued furnishing of the New York office, with the stipulation that no money be spent until a detailed listing of proposed expenditures be furnished to the Finance Committee for their approval. Time being of the essence, the Committee authorizes its Chairman to act in its behalf. Mr. Freeman motioned that the resolution be approved, Mr. Reib seconded the motion and the Directors approved it. Mr. Andrews motioned that the Report of the Finance Committee be accepted, Mr. Gerdes seconded the motion and the Board approved it. MEMBERSHIP DEVELOIMENT COMMITTEE REPORT Mr. Willert stated that SPI has a total of 1,207 Class I members as of July 17. This includes l6 new members and 18 resignations and consolidations. Mr. Flynn motioned that all membership changes as listed in the Report Notebook and the addendum be approved, Mr. Kittredge seconded the motion and the Board approved it. Mr. Willert reported that as of July 17 there were 205 companies that have not yet responded to the Sales Information Form for their 1975 - 1976 dues. The SPI staff has implemented a procedure of personal contact with these non responders. Members of the Membership Development Committee volunteered to contact the non-responders who have not replied to the staff follow up. The Membership Development Committee reviewed and approved a new formal procedure, developed by the SPI staff, for contact and follow through from the contact with prospective members, processing of applications and attempts to retain delinquents and resignations. The Committee reviewed a proposal for new literature and programs for member ship promotion and SPI exposure using the 1976 Bicentennial theme. The Committee was concerned about the costs versus the budget, and the proposal was referred back to the SPI staff for a more definitive presentation with costs. This will be reviewed at the October Board Meeting. A list of approximately 100 captive processors and the users of plastics who are not presently SPI members will be developed with a special effort being made to interest them in joining SPI. X*' 1 r't / "`.V- y -U SPI-22265 -7- MEMBERSHIP DEVELOPMENT COMMITTEE REPORT (cont.) Mr. Formo voted to accept the report of the Membership Development Committee and Mr. Flynn seconded the motion. The Board of Directors voted unanimous approval. PLANNING COMMITTEE REPORT Mr. Shaw reported that the first topic discussed at the Planning Committee and also at the Executive Committee - was the October Board meeting and whether it should be held at Williamsburg. Both Committees agreed that the meeting should be held at Williamsburg as scheduled on October 22 - 24. The Planning Cosmittee accepted the proposal, of the Melamine Dinnerware Committee to self-fund a $9,000 pilot study on opportunities for the group in advertising and public relations. The Committee accepted a proposal by the EPS Custom Molders for a separately funded fire testing program. However, the Planning Committee recommended that this operating unit continue to function as part of the Cellular Plastics Division. The Planning Committee also accepted a proposal from the EPS Block Molders for raising $120,000 to fund a full-scale public relations program which included the hiring of a full-time EPS staff director. This approval was given With four conditions: 1. that the money be pledged; 2. that the program be spelled out in full detail; 3* that the members of the group commit to three years' continuity for the person hired, and 4. that this group continue to coordinate with and operate within the Cellular Plastics Division. The Planning Committee noted that progress was being made in the information of an Eastern Section under the temporary Chairmanship of Ken Broo. The Coirmittee also noted the concern of the Fluorocarbons Division about the continuing appropriateness of their name. The Planning Committee joined with the Processors' Committee in recommending a renewal of a labor information service bulletin, and the availability of a person who could speak at various SPI meetings about labor problems. The cost of this project has to be approved by the Finance Committee. The Planning Committee discussed third party liability relative to machinery manufacturers and the Processors Committee's recommendation on the matter. The Planning Committee recommended that the SPI Chairman establish a three man committee to prepare an SPI position statement on third party liability relative to machinery manufacturers. It was further agreed that the committee be comprised of a representative of the Machinery Division, one from the Processd^ Committee, and a third member named from the resin suppliers. These members will be nameed by the SPI chairman. SPf-22266 8- - PLANNING COMMITTEE REPORT (cont.) Mr. Reib explained the adverse potential of third party liability upon all members. He said that the second largest problem facing Machinery manufacturers was third party liability law suits and rapidly escalating liability insurance costs. As examples of the problem, he said that companies with sales of 10 - 15 million dollars have reported insurance increases from $1,300 to $168,000 in four years. Larger companies have reported insurance increases over a 15 year period of from$L3,000 to $361,000. This problem can be compared to the problems doctors have with mal-practice insurance. At present there are more than $50*000,000 in accident cases pending just among a half dozen members of the Machinery Division. Ninety percent of the suits involve marginal operators. As a result of the proliferation of cases and escalating insurance costs, the costs of machinery must go up. The Machinery Division feels that this should be the concern of the entire SPI. Senate Bill 2018 places minimum federal standards on workmen's compensation. The Machinery Division wants to work closely with all SPI members on this matter. Mr. Shaw reported that the planning Committee had approved the Los Angeles office move, subject to Finance Committee approval. The Finance Committee has also approved the move. The committee also discussed SPI's one-year objectives and SPI's five-year objectives. By October a more specific detailed plan will be presented to the Board. Mr. Formo motioned to accept the Planning Committee Report, Mr. Kittredge seconded the motion and the Board approved the motion. Mr. Scott asked for a motion to ratify the SPI Board Committee assignments of members on the respective Board committees. Mr. Hoffer rationed that the Board committee assignments be approved, Mr. Estabrook seconded the motion. The motion carried. PUBLIC AFFAIRS COMMITTEE REPORT Mr. Sutro stated that some of the results of the aggressive and positive PAC program cure now becoming evident. As the SPI takes a higher profile, there may also be more negative publicity directed to SPI and its members. Mr. Sutro used the example of the VCM-PVC producers group, and the publicity about the fact that Bill Ruckleshaus was representing them. Mr. Sutro reported that the PAC was under budget for fiscal 1^7k - 1975 by $804 having spent $979,196. The PAC has awarded $1,500 to the Srake, Fire and Burn Foundation. Following its usual practice as of June 1, PAC began monitoring State regulatory agenciea under the guidance of Hill and Knowlton and Martin Ryan Haley, At present 23 states are being monitored, but eventually all 50 states will be covered. SPI-22267 - 9- Mr. Jutro stated that through the efforts of 3PI, the Products Research Committee (the committee established by the FTC Consent Order) approved credits of $277,000 of research projects submitted by the SPI, with the assistance of the Coordinating Committee on Consumer Safety and the staff of Keller and Heckman. It was reported at the June 26 Operating Group Meeting that Don Bryan, who was Chairman of the Legislative and Public Relations Committee resigned. Mr. Moore has taken Mr. Bryan's place. Mr. Bryan will renain on the Committee. Mr. Moore then gave a 20 minute slide presentation on the Government Relations and Public Relations work done by PAC. Mr. Scott and Mr. Niedfeldt believed that Mr, Moore's presentation could be used very effectively at Section and Division meetings. Mr. Heckman then reported on the legal activities of Keller and Heckman since the latest material in the Report Notebook. 1. NIOSH has published a list of suspected carcinogens. This list includes lactos, polyethylene, melamine, ethylalcohol and many others. An SPI bulletin will be published with this information and a recommendation that companies submit pertinent data to NIOSH. At present SPI is attempting to have OSHA recognize that some resins can be considered fabricated products because no matter how they are distributed and used, they will not give rise, past a certain point, to exposures above the action level. A certain amount of success has been achieved on this point. Some FVC companies are not labeling their bags of resin as required by the OSHA Standard because they take the position that those resins will not lead to any action level exposure - above 1/2 ppm. Our activity with EPA is moving along very well. Recommendations on the regulations have been made to the administrator and hearings will be held in the fall. The FDA is now facing a public relations problem due to the petition filed by the Health Research Group, While nothing has been published as yet, the FDA is working on a document. 2. Mr. Heckman reported that the EPA has published guidelines for Government agencies requiring them to handle only beverage containers on which there would be a deposit. This was done in response to a Sierra Club petition. SPI-22268 10 (c-ont.) This is not an actual ban on plastic beverage container use by Government acencies and possible courses of action are being investigated. 3. In the state of Minnesota, SPI and other were successful in getting a motion for a temporary injunction granted to keep the pollution control agency from enforcing their packaging regulation. 4. In the District of Columbia, the city council was considering a nonreturnable bill. Hearings will be held, and it will probably pass. However, bills of this type are usually contingent upon Montgomery and Arlington Counties passing the same bill. It is highly doubtful that these counties will pass a similar bill. 5. Mr. Tiernan then explained the Federal Trade Commission's revised proposed rule which was published on July 23. An analysis of this proposed rule has been distributed, asking for comments from the recipients by August 8. The revised rule would limit product coverage to cellular plastics in construction of buildings and similar enclosures; furniture would be included only so far as prohibition against terminology such as non burning and self-extinguishing are concerned. The rule would cover all aspects of combustibility including toxicity and smoke as well as flammability. The heart of the rule dealing with combustibility representations has been changed so that those representations must be based on competent tests to the extent that such tests are recognized as probitive at the time. The tests do not have to be fully reliable or derterminative as originally proposed. Existing tests could be used under proscribed conditions and warning and cautionary statements would be required where unreasonable combustion hazards were determined to be present. The warning and cautionary statement would not be a mandated statement, but a statement which a company would use to deal with the risk it ascertained. The Commission order states that comments have to be filed on September 22 or perhaps later depending on what further action the Commission might take. Public hearings will be scheduled at a later time. Mr. WiUert motioned to approve the Public Affairs Committee report. Mr. O'Connell seconded the motion and the Board approved it. SPl CANADA Mr. Evason expressed greetings from SPI-Canada. He read the following letter from Linton Love, Chairman of SPI-C&nada*s Board addressed to the SPI Board of. Directors: SPI-22269 SPI CANADA (cont.) 11 "Mr. Ralph Harding has given Canada not only moral support hut much valuable advice to the various problems that beset the plastics industry on both sides of the border. Too often this type of help is taken for granted and goes unrecognized. But we, the Board of Directors of the Society of the Plastics Industry of Canada wish to emphasize how much we appreciate the continued friendship and practical assistance of Mr. Ralph Harding. Yours sincerely, Linton E. Love Chairman " SPE Mr. Myers reported that the SPE ARTEC held in Atlanta was highly successful even though attendance was down. Financially SPE had a good year with an expected net surplus of approximately $1+0,000. Financial projections for 1975 - 1976 are lower, but SPE is still expected to operate in the black. Recent activities within SPE include the establishment of an Ad Hoc Committee on Safety and Health, a RETEC on PVC to be held in Chicago on October 21 and 22, 1976 and the 1976 ARTEC, which will be held in Atlantic City. SPE's Executive Committee held its first meeting on long-range planning and one of the topics discussed was SPE's involvement with Government. It was concluded that the only role SPE should play is to supply technical information and expertise to Government. Mr. Forger stated that he thought the idea of having SPE representatives at SPI meetings and vice versa was a most fruitful kind of liaison. Mr. Forger stated that Mr. Harding's and Mr. Heckman's speech at the Atlanta AtfTEC was excellent. The speech Is now being distributed to approximately 90O members within SPE. The July issue of Plastics Engineering carries an editorial in answer to the Mew York Times column on William Ruckleshaus. Mr. Forger offered to help SPI reinforce Its cause through SPE's membership and its magazine in the industry's best interest. Mr. Harding stated that a meeting would be called between SPI and SPE to discuss further work on SPE sections around the country relative to supporting activities on industry programs*of interest. PLASTICS INSTITUTE OF AMERICA Mr. Spaak gave the Board members a preview of the Plastic Institute's position paper on long-term research. The PIA will try to act as a coordirator for polymer research projects between universities, industry and Government. Such an activity will, prevent duplication of effort in research. The PIA will take SPI-22270 12 PIA (cont.) a survey to determine whether this kind of project is at all feasible, if this is proven to be feasible, a Research Director will be hired by PIA. Mr. Spaak asked for SPI'a cooperation. OPERATING UNIT REPORTS MIDWEST REPORT Mr. Glatt reported that although the attendance at the Midwest Conference was down, it proved to be an excellent meeting. NEW ENGLAND SECTION Mr. Estabrook stated that the New England Conference would be held September 16 - 18, 1975. WESTERN SECTION REPORT Mr. Halliday called the Directors' attention to the establishment of a Scholarship Committee as part of the Western Section's Annual Conference. This will provide positive publicity and it will be self-funded. PLASTIC BOTTLE INSTITUTE Mr. Pollock reported that the Institute's Annual Meeting at Pebble Beach went extremely well. He stated that his company had taken part in the SPI Fire Testing Program, and as a result of the data collected, SPI was able to convince Factory Mutual that SPI's criterior should be accepted. Mr. Pollock stated that economically this had a huge Impact on his company. Had he been bound by Factory Mutual's standards, Consupak's insurance premiums in one plant alone would have risen in excess of Uoo. INTERNATIONAL COMHTTEE Mr. Harding reported that the active members of the International Committee were in the process of reviewing their objectives and their role within SPI. One of the concerns facing them is how to cope with the forthcoming tariff negotiations and whether that activity, on behalf of the plastics industry, should be conducted within SPI or be conducted by the Office of the Chemical Industry Trade Advisor which operates under MCA auspices. NATIONAL PLASTICS EXPOSITION AMD CONFERENCE Mr. McCreary up-dated the report on NPE stating that at present there were . 122 applications for space. Total square footage is 106,803. The average". *. SPI-22271 13 NATIONAL PLASTICS EXPOSITION AND CONFERENCE (cont.) square foot application is now 875. There are 38 exhibitors who have requested additional space over the 1973 show for a total of 13,271 square feet. 5L exhibitors requested the same amount of space as 1973 and 22 exhibitors requested less space than L973 for a total of 3,156 square feet. There are 8 companies requesting space who did not exhibit in 1973 and this represents 3,440 square feet. The net gain in space over the 1973 show is 7,115 square feet or 7,4%. Since 1973 was a record show, any gain reported at this time means that NPE is ahead. Mr. McCreary also discussed the benefits of exhibiting at the NPE. Mr. Heckman reported on the NPE tax situation. The national IRS office has turned the case back to the regional office and told them to decide the case on the "selling" issue. This is a favorable development since the IRS canvassed exhibitors and found no evidence of sales activities. action is expected for a while. No NEW ACTimiC Mr. Harding stated that the Eastern Section is starting to function with a conference planned on September 24 - 26. The Washington office is functioning very well and they are off to a good start. 355 LEXINGTON AVENUE Mr. McGrath reported that the move to 355 Lexington Avenue went very smoothly. He invited all the Board Directors and guesta to visit when they are in New York. The larger conference room will allow us to have more meetings in the SPI office. The mallroom Is larger and, with more printing equipment, there could be great savings on outside printing Jobs. The new office represents the importance of the plastics industry. FUTURE MEETING DATES Ms. Jones reported on the future meeting dates of the Board. The next Board meeting will be held in Williamsburg, Virginia on October 22 - 24, 1975. On February 11 - 13, 1976 the Board will meet at Innisbrook, Tarpon Springs, Florida. The Annual Meeting and Board meeting will be held in Washington on April 5 - 7, 1976 at the Mayflower Hotel. On July 27 - 30, 1976 the Board will meet at Del Monte Lodge, Pebble Beach, California. Mr. Harding stated that there would be a change in the format of the Williamsburg meeting. It is proposed to start the formalities on Thursday morning. Board Committees will meet Thursday afternoon with the full Board meeting on Friday morning. The schedule will be sent out in the meeting notice. SPI-22272 - Ik - FUTURE MEETirjG DATES (cont.) The three meeting a year schedule will be as follows: A Summer Meeting, an October Meeting and a combined Board and Annual Meeting in March in Washington. Mr. Harding then informed the Board that Charlie Condit is due to retire on September 1. Mr. Condit was responsible in large part for the smooth transition from 250 Park Avenue to 355 Lexington Avenue. Mr. McGrath will be in charge of a staff and friends farewell for Charlie to be held in November. Board members will receive an announcement on this matter. SPI LOGO Mr, Scott presented the revised SPI logo, which was slightly changed and colored in blue. Mr, Becker motioned to approve the new SPI logo, Mr. Flynn seconded the motion and the Board approved it. There being no further business to transact, the meeting adjourned at 11:45 Respectfully submitted, Laura E. Jones Secretary to the Board of Directors. '6--tIT I i SPl-22273 "REPORT ON CURRENT STATUS OF NPE TAX CASE" Page 1 In general, the Internal Revenue Service has asserted that income derived by the Society from the Twelfth Na tional Plastics Exposition held in November, 1968, ("1968 NPE") is subject to unrelated business income tax. Messrs. Cohen and Uretz, special tax counsel to the Society, on behalf of the Society, filed a Petition in the Tax Court on February 15, 1974, contesting the I.R.S. determination. The Petition sets forth assignments of error which the Society contends were committed by the Commissioner of Internal Reve nue in his determination of the deficiency. The Society main tains that its gross income from the 1968 NPE did not con stitute unrelated business taxable income. This contention represents the primary position taken by the Society during the administrative proceedings in connection with this matter. The Society also contends that the determination of deficiency by the Commissioner was invalid and void. In particular, the Society contends that (1) the determination of deficiency violated the Society's right to due process of law because the Commissioner failed to follow his own estab lished rules and procedures; (2) in the determination of deficiency, the Commissioner acted arbitrarily and capri ciously and abused his discretion in applying a change in his rules and procedures retroactively with respect to the Society and (3) in determining that the amounts received by the Societ from the 1968 NPE constituted unrelated business taxable in come, the Commissioner discriminated unlawfully between the Society and other similarly situated organizations. These theories of discrimination and violation of due process of law as applied to the tax law represent new and developing areas of the law. These allegations derive from the Internal Revenue Service's officially announced position that it will not challenge, pending the completion of a study, the tax exempt */ Prepared for inclusion in Advance Report by Jerome H. Heckman, SPI general counsel, for the SPI Board of Directors meeting to be held at Mariott's Lincoln shire Resort, Lincolnshire, Illinois, July 23-25, 1975. This Report was drafted with the assistance of specially retained tax counsel, Messrs. Cohen and Uretz, of Wash ington, D.C. Any developments which occur subsequent to the preparation of this Advance Report, will be in cluded in a current Report prepared for the meeting. SPI-22274 Page Two Page 2 treatment of certain income derived by exempt organizations from the rental of display space at a "convention display type of trade show". The precise definition of a "convention display type of trade show", however, is not publicly avail able. The Society has taken the position that the 1968 NPE is such a trade show and, accordingly, the determination of deficiency results in discrimination against the Society without a rational basis therefor. In the alternative to the assignments of errors dis cussed above, the Society contends in the Petition that if its gross income from the 1968 NPE was determined to be derived from an unrelated trade or business, certain expenses were erroneously not allowed as deductions by the Commissioner. These expenses, it is contended, should have been allowed by the Commissioner as deductions because they were directly connected with the carrying on of the 1968 NPE. The Government filed its Answer to the Petition on April 18, 1974, generally denying all of the substantive allegations. The I.R.S. attorney assigned to the case, after preliminary discussions with Messrs, Cohen and Uretz, agreed to send the case to the National Office of the Internal Revenu^p Service for technical advice. This procedure is followed for the purpose of assuring consistency in the national policy of the Internal Revenue Service with regard to important issues. The National Office of the Internal Revenue Service issued technical advice and directed Regional Counsel to proceed with this case. After consultation with Jerome H. Heckman, general counsel to SPI, and with the approval of the Society, Messrs. Cohen and Uretz have begun preparation for trial. A trial of this matter will entail the normal conferences (for purposes of exploring settlement or stipulating facts), witness and document preparation for trial preparation, presentation of evidence at trial and post-trial briefing. In addition, in order to support the Society's claim that it is being unfairly discriminated against by the Government, the Society has commenced discovery under the new Tax Court discovery procedures. These discovery procedures could be important to the outcome, of this case and could involve a substantial controversy over collateral legal issues if cooperation is not forthcoming in this regard from the Internal Revenue Service. Because the Government's case appears to rest primarily upon the factual assertion of selling activities during the 1968 NPE, Messrs. Cohen and Uretz have advised that settle- SP1-22275 Page Three Page 2 menc discussions during the course of crial preparations are still warranted, and have commenced such discussions. At a conference with the Internal Revenue Service held on March 4, 1975, Messrs. Cohen and Uretz were informed of the basis upon which the National Office issued technical advice on this case. The National Office takes the position that in come derived from a trade show is not exempt from the tax on unrelated business taxable income if any one of the following three elements is present: 1. The existence of advertising for the show indicating that sales may be made or orders may be taken; 2. The condoning, either openly or clandestinely, by the host organization, of sales or order-taking; or 3. The occurrence of substantial sales or order-taking at the show. In a subsequent conference held on May 2, 1975, Messrs. Cohen and Uretz responded directly to each of the three elements in the technical advice, providing representations regarding the nature of testimony which would be forthcoming at trial, and documentary support. In this connection, however, the I.R.S. attorney handling the case took the position that he wished to satisfy himself concerning any selling activities and had connenced a canvass of exhibitors to determine the extent, if any, of sales ac tivity at the 1968 HPE. Messrs. Cohen and Uretz understand that the results of this canvass indicate that no substantial selling activities were conducted at the 1968 NPE, and conform to the represen tations previously made and information previously furnished to the I.R.S. on this issue. In addition, the I.R.S. attorney advised Messrs. Cohen and Uretz that the technical advice he had received had concluded that the I.R.S.' policy with regard to "convention displays" is not applicable to the Society. However, he resubmitted the case to the National Office for resolution of a conflict between the technical advice memorandum he had received in the SPI case and that in another case involving a trade association which had received favorable treatment on this issue. SPl-22276 Page Four ?a^e ir When the results of the I.R.S. canvass were received and confirmed the Society's position, Messrs. Cohen and Urecz requested first informally of the I.R.S. attorney handling the case, and after refusal, formally in a letter written to the National Office, chat the case be returned to the regional office of the I.R.S. for concession. The basis of the request is that the absence of substantial selling activity at the 1968 NPE established the Society's basic position and rendered the convention display issue moot. In the event that the National Office refuses to pursue that course of action, Messrs Cohen and Uretz intend to prepare a memorandum for submission to the National Office on the convention display issue and if no answer is forthcoming by the end of July, proceed to pre pare for trial. This case is important to the Society. The amount of taxes involved is substantial. The Commissioner has deter mined a deficiency in income taxes for the fiscal year ended May 31, 1968, in the amount of $192,762.00. Moreover, the issue raised by the Internal Revenue Service is a continuing one because the Society holds an Exposition approximately every two and one-half years. bmw SPl-22277 Page 5 ) "Report on the Regulatory Status of Vinyl Chloride and Polyvinyl Chloride" J Following up on the report given at the April, 1975 Board Meeting, the vinyl chloride (VCM) and polyvinyl chloride (PVC) situation resulting from the well reported alleged prob lems relating to potential ingestion of vinyl chloride migrating from finished PVC into packaged spirits or food, and the po tential inhalation by both industrial workers and the general public of vinyl chloride as a result of vinyl chloride/polyvinyl chloride manufacturing and PVC fabricating operations continues to involve at least three major federal agencies: the Food and Drug Administration (FDA), the Occupational Safety and Health Administration (OSHA) and the Environmental Protection Agency (EPA). You will recall that we reported previously on the industry's attempts to overthrow the OSHA Standard for Occu pational Exposure to Vinyl Chloride published on October 4, 1974. Following an adverse decision by the United States Court of Appeals for the Second Circuit in our initial court test, the VCM and PVC Producers Committee voted to try to appeal the Second Circuit decision to the United States Supreme Court. The industry's Petition for Writ of Certiorari, filed with that Court on March 19, 1975, was denied on May 27, 1975. As a result of the Supreme Court's decision, there being no other legal recourse available, the Vinyl Chloride Standard must now be considered final, though subject to amendment by agency action, in the form in which it took effect on April 1, 1975. As far as further OSHA regulatory action is concerned, as could be expected, during the entire time of the court test until April 1, 1975, the situation with the OSHA Standard was in something of a state of limbo. After April 1, the OSHA Staff went to work. It finalized and distributed a Program Directive and publicized frequently asked questions with an swers both for the benefit of its field offices and the regulated industry. Despite this guidance from OSHA headquarters in Wash ington, however, some of its offices, both in Washington and ^7 Prepared on July Z, 1975 by Jerome H. Heckman, SPI General Counsel, for advance inclusion in the Notebook prepared for use of the SPI Board of Directors at its meeting to be held at the Marriott Lincolnshire Resort, Lincolnshire, Illinois on July 23-25, 1975. SP1-22278 Page 6 in the field are experiencing definitional and administrative difficulties in enforcing the Standard. This has led, un fortunately, to some non-uniform citation activity, primarily in the areas of the definition of "fabricated product" and the application of the "permissible exposure limits" section of the Standard. Inasmuch as these problems should be resolved fairly shortly, it would appear that the VCM and PVC producers and fabricators are learning to live with the new Standard. In cases where real difficulties have been encountered, affected parties have applied for variances until they are able to comply and for advisory opinions concerning whether certain activities are affected by the Standard. Turning to the Food and Drug Administration front, we are now advised that some of the basic differences between FDA`s Bureau of Foods' positions and the requirements or desires of the offices of the Commissioner and Chief Counsel may be re solved or, at least, are much nearer to resolution. Thus, the long awaited proposed Interim Food Additive Regulation or Regu lations regarding PVC should be published very soon. At this time FDA is still planning a proposed Regulation that would require that all PVC used for food packaging appli cations (including cosmetics and drugs which are used orally) show no detectable vinyl chloride extraction. This "no detectable" determination would be made by application of an analytical pro cedure sensitive to 50 parts per billion (ppb); the procedure is expected to be published as a part of the proposed Regulation. We would actually anticipate that the proposed PVC Regu lation will be a "package" including several Regulations which, together, would include a reaffirmation of the prior sanctioned status of PVC for all uses, subject to its compliance with the "no vinyl chloride detectable" limitation; a proposed Interim Food Additive Regulation applicable to all vinyl chloride polymers stating the limitation that no vinyl chloride may be detected in food simulating solvents under the intended conditions of use; and possibly one or more Regulations governing the use of PVC for packaging cosmetics and drugs. We also anticipate that the proposed Interim Food Additive Regulation for PVC will include a requirement for certain toxicological testing, with the Interim Regulation to run until the tests are complete. SPI-22279 Obviously, we have no way of being totally certain that the currently circulating drafts will be acceptable to all parts of the FDA hierarchy. If it is, proposed Regulations can be expected in a matter of weeks. If significant revisions are demanded at some level, however, the publication of the proposal could be delayed. The main reason we have been more optimistic recently is because FDA seems to have found an objective criterion upon which to base a "non-detectable at 50 parts per billion" re quirement. Specifically, FDA has now completed a sophisticated statistical assessment of the "risks" involved in consuming foods packaged in PVC. Without trying to explain exactly how this "risk data" was developed, suffice it to say that with this objective assurance at hand, our FDA contacts have indicated publicly (at the last meeting of SPI's Food, Drug and Cosmetic Packaging Materials Committee) their belief that the proposed Regulations will now move quite speedily through administrative channels. At the time of this writing, the Health Research Group (HRG), a Ralph Nader-financed organization, has just filed a "Citizens' Petition" calling upon FDA to bar all PVC food packaging materials as the only way to assure compliance with the Delaney Clause, that is, that portion of the Food, Drug and Cosmetic Act which prohibits the use in food of any substance found to induce cancer when ingested by man or animal. Although we will undoubtedly have more information to report to you at the Board Meeting, we should point out our belief that the HRG Petition is defective and, in any case, should not cause FDA to react in any presently unexpected way because (a) the Delaney Clause does not bar use of a substance that is not shown to be migrating to foods, (b) the public health will not be threatened by the Interim Food Additive Regulation because it is anticipated that such Regulation would prohibit detectable vinyl chloride migration and (c) the requisite En vironmental Impact Analysis Report required by FDA Regulations was not included with the Petition. When the HRG Petition was filed and widely publicized in accordance with normal Nader group procedure whereby the Press is copied first and a Petition is filed with the Agency SPl-22280 ' >. -4 - Page 9 simultaneously or later, we took every reasonable measure to assure that the industry, its customers, the Press and FDA were informed that we viewed the Petition as an inappropriate attempt to gain publicity and credit for an action already about to be taken by FDA. We feel the reaction thus far has been satis factory and that the most the Petition will accomplish is to hasten release of the FDA proposal which, of course, we favor. The U.S. Environmental Protection Agency, in the mean time, has continued its studies relating to vinyl chloride with a view, ultimately, towards regulating it as a hazardous air pollutant under 112 of the Clean Air Act. Under the guidance of SPI Associate Counsel, the law firm of Ruckelshaus, Beveridge and Fairbanks, productive liaison activities have enabled industry to make effective use of a considerable volume of information it had available to present to the Agency. With information supplied by industry members, representatives of the VCM and PVC producers have engaged in a series of meetings with EPA that is still not complete. In general, these meetings have been held to discuss various control techniques that EPA made known it is considering and to offer alternative and additional thoughts on approach and technology. Similarly, a number of meetings have been held between industry's health and economic experts and EPA personnel studying those considerations as they relate to the background for the Standard it intends to propose. In addition to determining that EPA's forthcoming pro posal will cover only PVC and VCM plants and will not apply to fabrication plants., the industry's representatives have urged EPA to modify its draft proposal to a considerable extent in many important areas. Also, largely as a result of industry input to EPA and the Agency's need for time to integrate that information into its own proposal, the Agency has delayed pub lication of its proposal from mid-June to around the first of August with a target effective date for finalizing the Regulation of late fall, 1975. As of the time of our latest reports, the proposed Standard was being reviewed by the EPA Steering Committee. Next, the EPA Assistant Administrators will review the Standard and forward it to the Acting Administrator. From there it will be sent to the Office of Management and Budget for review and circulation among the other interested federal agencies. SPI-22281 -5- Page 9 Associate Counsel has also provided the VCM and PVC Producers Group with considerable information about Congres sional interest in proposed, amendments to the Clean Air Act, especially as they relate to the redefinition of the term "hazardous air pollutant" and the relationship of such a po tential redefinition to EPA's authority to regulate substances like vinyl chloride. Directly related to these proposed amendments, and the apparent reason why EPA is seeking a broadened definition of "hazardous air pollutant," are some recent court cases wherein it has been concluded that a design or process requirement of the nature to be proposed for vinyl chloride is not a "Standard" authorized under 112 of the Act. The important issue of whether a Standard that fails to establish a specific emission level meets the statutory mandate is, of course, of potential sig nificance vis-a-vis the ultimate EPA Regulation for vinyl chloride because of EPA's current inability to specify a numerical emission Standard based on known health effects. SPI-22282 Pa^e 10 Report OH the Status of Activity With Respect to Plastic Bottles for Carbonated Beverage and Beer Use and Acrylonitrile Copolymers for General Applications*/ On September 7, 1973, FDA published a Notice requir ing the submission of Environmental Impact Analysis Reports (EIAR) covering the use of plastic bottles for carbonated beverages and beer. That Notice stated that FDA expected eventually to issue an Environmental Impact Statement (EIS) on each form of packaging material, and that the Statement on Plastic Bottles for Carbonated Beverages and Beer was merely the first of an expected series of Statements. In response to that Notice we filed a three-volume EIAR for Plastic Bottles for Carbonated Beverage and Beer Use on December 6, 1973. On April 2, 1975, some 16 months later, FDA made available its "Draft Environmental Impact Statement--Plastic Bottles for Carbonated Beverages and Beer." Almost simultan eously, FDA promulgated a new Environmental Impact Regulation (Section 6.1(a)(3)) to provide the legal basis for its draft EIS conclusion. The new Regulation notes that FDA's statutory mandate requires it to promulgate responsive Food Additive Regulations if Petitions are submitted which show that the food additives subject to such Petitions are safe. It is also noted that this is so even if an Environmental Impact Statement prepared as required by the National Environmental Policy Act of 1969 (NEPA) leads to conclusions that adverse environmental effects would result from a newly regulated food additive use, provided the adverse effects are not relevant to public safety or health in the commonly understood sense. The posture FDA has thereby embraced is obviously of major significance. In the first place, it permits the use of technolo gically suitable plastics for bottles and, by implication, the use of all "safe" plastics for any otherwise permitted */ Prepared on July 3, 19 75 by Jerome H. Heckman, SPI General Counsel, for advance inclusion in the Notebook prepared for use of the SPI Board of Directors at its meeting to be held at the Marriott Lincolnshire Resort, Lincolnshire, Illinois on July 23-25, 1975. SPl-22283 Page 11 -2- application. It embodies the legal position urged by SPI and the Ad Hoc Nitrile Resins Committee (which has now been superseded by the PAC's new Plastic Beverage Container Group); that is, in our opinion, it properly indicates that responses to aesthetic and other environmental concerns should be handled by legislative rather than administrative procedures. Secondly, since FDA has always considered public safety among the basic criteria against which to evaluate Food Additive Petitions, there would now appear to be no further need to call for the same type of exhaustive EIARs on other packaging materials since no responsive FDA action could be anticipated. Should this concept be upheld in the courts, it would represent a major benefit flowing from the response of SPI and the other affected firms to the FDA Notice on Beverage Bottles. In both the Federal Register Notice announcing the new revision in the Environmental Impact Regulation and in the draft EIS, FDA invited a legal challenge to its decision, not to deny Food Additive Petitions on an environmental basis. As expected, the FDA position that NEPA should not be super imposed on the Federal Food, Drug and Cosmetic Act and that FDA should therefore continue to limit its considerations to those of safety for an intended use did not go unchallenged. In fact, on May 5, 1975 the Environmental Defense Fund, Inc. (EDF) filed a Petition for Review of the Agency*s action. The EDF Petition was filed in the United States Court of Appeals for the District of Columbia Circuit. Con sidering the facts that the EDF Petition may have been filed in the wrong court and that FDA*s position on the question of the Court*s jurisdiction is phlegmatic at best, we were authorized by the Plastic Beverage Container Group to inter vene in the EDF suit in order to preserve SPI*s right to participate as required in this very important court action. SPI's June 3 Motion to Intervene was granted by the D. C. Circuit on June 11. In essence, the Motion to Intervene was made to enable SPI to present its position in opposition to the Environmental Defense Fund rather than to take the side of FDA. Despite the fact of our participation in the case and our understanding of the jurisdictional difficulties involved. SPI-22284 Page 12 - 3- we do not at this time plan to raise the question of juris diction. In fact, while the Motion to Intervene has been submitted, it should be pointed out that we are still in a position where SPI can decide not to file a brief or decide to file only a short brief to emphasize a particular point and not request oral argument time. We continue to believe the most persuasive presentation to the Court would be a strong and vigorous Agency defense. As a result, we are maintaining as low a profile as possible where industry is concerned. If FDA's approach to the litigation does not become more aggressive, we will have preserved our right to participate in the Court's review of the Regulation and will be able to oppose the EDF Petition with the full rights of an intervenor. Turning now to the draft EIS itself, FDA has tenta tively concluded therein that: 1. Plastic barrier bottles will probably decrease the consumption of refillable glass containers. 2. Non-refillable plastic bottles are no worse than, or are better from a dis tinct safety advantage point-of-view, than other non-refillable container types. 3. Refillable glass bottles are prefer able over all competing non-refillable containers. 4. Any decision on the environmental impact of refillable plastic bottles should be postponed until the technology exists for the production and marketing of these containers. 5. The Food Additive Regulations which have been promulgated and the Food Additive Petitions which have been filed may not be revoked or denied on the basis of the findings of adverse environmental impact. SPI-22285 Page 13 '- 4 - On June 13, we filed Comments on behalf of SPI's Plastic Beverage Container Group stating that the Society agrees completely with the essential dispositive position of the draft EIS insofar as it states that FDA should not refuse to issue regulations for non-refillable plastic bot tles for carbonated beverages and beer use. It was stated further that, nonetheless, SPI is of the view that this correct conclusion was not as fully supported'as it might have been with a more complete analysis and balancing of available alternative decisions. The conclusion reached relative to the environmental impact of plastic bottles was labeled as too narrow in scope and, as indicated in the text, inappropriate, inaccurately premised and/or inconsis tent internally with the facts available. Further issue was taken with the draft EIS rela tive to its specific findings regarding litter, resource recovery, refillability of plastic bottles, and energy recovered from final disposal systems. Since the only potentially substantive adverse impact posited in the draft EIS was based on a comparison of the non-refillable plastic bottle with a hypothetical 15 trip returnable bottle--a comparison characterized by SPI as neither required nor contemplated by NEPA--it was urged that a new analysis for the final EIS proceed from an examination of the overall impact of each coextensive alternative decision and that these analyses be balanced as to impact. Not only would such an approach satisfy NEPA, it would also more fully support FDA* s ultimate decision not to refuse to promulgate regulations covering materials intended for use in plastic carbonated beverage bottles. It was strongly suggested that FDA must simply compare new packaging with that which currently exists to meet its NEPA obligations and that it need not and should not apply NEPA retroactively by using the occasion to restructure the container-distribution system that exists. The Comments concluded that the final EIS should state that plastic beverage bottles are environmentally sound and FDA should not refuse to issue regulations for them. Many others have also filed Comments on the draft EIS. We have summarized these for the Plastic Beverage Container Group to help it decide whether additional Comments SPI-22286 Page 14 -5- on behalf of SPI will be necessitated. Other than the Comments filed by interested industry companies, the state ments now in the Record rather predictably oppose the use of plastic bottles for carbonated beverages and beer. (Unfortunately, non-industry supporters of new products usually form the bulwark of what is called "the silent major ity.") Although some quasi-scientific Comments have been filed by a few consumerist/environmentalist parties which, in reality, oppose the use of plastic bottles, for the most part interest has centered on litter, energy use/refillability/ reuse and the improper combustion of used bottles. At present our opinion is that nothing at all will happen with regard to finalizing the EIS prior to the resol ution of the pending EDF suit. Inasmuch as that proceeding is just beginning and questions have been raised as to whether the time for filing Comments should be kept open to a later date, we feel that adequate time is available to supplement the Record with any additional information re quired. The latest complication to arise involves an EnvironmentalProtection Agency (EPA) proposal to promulgate Solid Waste Management Guidelines for Beverage Containers. These Guidelines would require a mandatory deposit of five cents on all beverage containers sold at federal facilities. The EPA proposal has been circulated for interagency and industry re view prior to publication in the Federal Register as a proposal. The Resource Recovery Division of EPA*s Office of Solid Waste Management Programs (OSWMP) is soliciting Comments on the draft proposal until July 11. Presumably, publication of the proposal will follow that date and take into account the Comments filed. Of course, once published as a proposal, the Guidelines would still be subject to comment. On June 30, those trade associations, including SPI, which are opposed to banning non-returnable beverage containers met to discuss the EPA draft proposal. The con sensus was that every effort should be made to persuade EPA not to publish its "ban-the-non-returnable" guidelines as a regulatory proposal in the Federal Register and that this SPI-22287 Page 15 -6- could best be done through each efforts in the Congress, in the be the most adversely affected, on the draft proposal to EPA. association^ individual Federal Agencies which would and in association Comments In addition, it was decided to consider the possi bility of a legal attack on EPA to prevent formal publication of the proposal. To this end, a meeting of the trade asso ciation lawyers is expected to be scheduled for the second week in July to discuss the alternatives available. We will, of course, report on this at your meeting. Apparently, the reason behind the EPA action is a suit filed over a year ago in California by EDF and the Sierra Club to force EPA to promulgate such a regulation for the Federal Agencies. EPA now seems to be attempting to "moot" the pending California litigation (which is still in the discovery process and not yet scheduled for trial) by pre emptively taking the action which the environmentalists are asking the Court to require. If EPA is not dissuaded from its present plan to issue "ban-the-non-returnable" guidelines, a proposed regulation probably will be published fairly soon. On a somewhat related front, FDA also issued a Notice of Proposed Rulemaking on November 4, 1974 which would add two new sections to the Food Additive Regulations to cover all acrylonitrile (AN) copolymers intended for use in contact with foods. That proposal would reaffirm such long-standing "prior sanctions" as exist for various ABS resins but condition the continuation of the prior-sanctioned status on specific migration limitations, and require addi tional toxicity studies. SPI filed extensive Comments in this proceeding stating, among other things, that the toxicity studies were understood to have been undertaken already by other parties which will be reporting the results to FDA. Another basic position advanced was that the proposed monomer extraction limitation of 0.3 ppm is unnecessarily restrictive in light of the existing toxicological evidence of safety and the limited conditions of intended use for the resins. In support of the argument that the nitrile resins are only currently used and intended in the future for use under relatively limited conditions, SPI proposed in its Comments that the Rulemaking Record be kept open pending a survey of present and projected uses of the resins. t* SPI-22288 Page 16 Accordingly, a survey of AN copolymers in food contact applications was conducted by SPI and submitted to FDA. The responses accounted for 95% of 1974 domestic AN copolymer production and 33 of the 34 million pounds of sales reported for food contact applications were identified with specific uses. The survey revealed that AN copolymers may come in contact with about 0.02% of the human diet; this could increase to 3% by 1985. Assuming exaggerated conditions of use, i.e. that someone might take all his normal dietary food category requirements from AN packed foods, these figures increase to 12% and 22% of the diet for 1974 and 1985, respectively. The increase from 1974 to 1985 is predicted primarily on AN usage for beverage con tainers. Our contacts at FDA indicate that the current draft of the AN Regulation would not cover non-film uses (e.g. margarine tubs) as "prior-sanctioned," but would give those companies manufacturing products not covered by the Regulation a reasonable length of time to submit a Food Additive Petition and permit continued marketing until final action on the Petition. We also have been informed that FDA has shifted its position slightly on migration towards using a 0.003 mg/in^ migration level rather than a 0.3 ppm limit. This, however, is in effect no real change in permitted AN migration. Despite the AN survey, FDA's toxicologists have refused to approve any higher level. As of this writing, FDA has not yet completed its draft of the AN Regulation, but it is expected to be final ized and begin circulating through the administrative offices in a week or two. This means that final FDA action on the AN Rulemaking is still at least several months off. SPl-22289 Page 17 Report on the Proposed "Housewares V' Exemption" Rulemaking and Related Activity As we have indicated to you in our prior reports, in April, 1974 the Food and Drug Administration published a Notice of Proposed Rulemaking indicating an intent to assert Food Additives Amendment pre-clearance jurisdiction over housewares and other items that might contact food. Previously, of course, housewares and related food contact items used in the home, restaurants, and in some industrial applications have not been considered subject to the Food Additives Amendment because of an explicit statement of Congressional intent that the legislation should not be applied to components of dinnerware or ordinary eating utensils. Due to some special problems associated with nylon oven bags alleged to contain uncleared food additive components and a seizure case involving heavy metals migrating from colorants employed in improperly glazed pottery, however, FDA decided to try to assert petition-regulation jurisdiction over all of these exempt items. The SPI Food, Drug and Cosmetic Packaging Materials Committee filed Comments on the "housewares exemption" Proposal in June, 1974. The Comments noted that the scheme to abolish the "housewares exemption," although designed to accomplish what otherwise might be a worthwhile objective, was too broad, violative of Congressional intent, unenforceable, and failed to address the critical issue of when a substance may not reasonably be expected to become a component of food. Initially, the proposal was scheduled to be finalized during the fall of 1974 and, by the first of 1975, a procedure was to be established for pre-clearing any housewares com ponents of uncertain status with FDA. However, the Agency has not moved as yet and the originally proposed December 31, 1974 deadline for filing petitions has long since become an inoper ative date since no rules yet apply. J7 Prepared on July 3, 1975 by Jerome H. Heckman, SPI General Counsel, for advance inclusion in the Notebook prepared for use of the SPI Board of Directors at its meeting to be held at the Marriott Lincolnshire Resort, Lincolnshire, Illinois on July 23-25, 1975. SPI-22290 Page 18 2- - In the meantime, important progress has been made in educating the FDA Staff about the complexities involved and the longstanding background controversy over just ex actly what is "no migration." Although a proposed draft of the Regulation is understood to have been circulated between the Office of the Chief Counsel and the Bureau of Foods, current intelli gence is that a new "final draft" is being proposed for con sideration. This new draft is reported to be a much more reasonable version of the initial Proposal in that it is directed at specific problem areas and eschews a broad Regu lation that would put countertops and refrigerator shelves in the same pre-clearance category as food packaging materials. No reasonable prediction can be made as to when a final Regulation will be promulgated because of the need for careful FDA handling of problems related to repeated use articles, the "no migration" concept, and some very strong comments by SPI and other parties. In fact, as we understand it, FDA has taken such pains in attempting to limit the scope of the Regulation that a totally new proposal may be necessary. Tangentially related to the "housewares exemption" matter is a case recently litigated in a U. S. District Court in Massachusetts, Natick Paper Board v. Weinberger. Though not a party of record, SPI has an important interest in this case. It concerns whether a substance (paper) which might become or contain a food additive if it is employed for packaging food can be seized by FDA as an adulterated food before it is used as a component of or for a food packaging material. On March 4, 1975, the U. S. District Court Judge hearing the case ruled very narrowly sticking to the specific facts involved. The Judge held that FDA had the authority to recommend seizure of paper food packaging material con taining polychlorinated biphenyls (PCB*s) in excess of 10 parts per million as adulterated food because the PCB's may be food additives. Unfortunately, the Judge did not deal with the two basic issues which bear directly on the entire "housewares exemption" matter: (1) is a food packaging or food contact material a food for regulatory purposes, and (2) if a packaging material or food contact material is a food, can it be seized as adulterated food prior to its dedication to food contact use. SPI-22291 Page 19 ~ 3An appeal from this decision was filed with the United States Court of Appeals for the First Circuit in Boston, Massachusetts on April 3, 1975. The Appellants' Brief was filed with the Court on June 19 and the Govern ment's Brief presently is due on July 10. Oral argument, however, is not expected to be scheduled until at least September. A final decision by the First Circuit probably would not be handed down for several months after that. SP1-22292 Status of the Federal Trade Commission Combustibility Proceedings and Related Civil Suits */ Page 20 This report is intended to up-date all current developments concerning the Federal Trade Commission Consent Order, FTC's proposed Trade Regulation Rule, and the related products liability suits involving SPI. With respect to the Federal Trade Commission's Consent Order, SPI has virtually completed all of its duties thereunder and will now be obligated primarily to file annual Compliance Reports to the Commission. The Trade Regulation Rule proceedings have been officially dormant for quite some time; however, numerous informal discus sions have occurred among FTC staffers and SPI represen tatives, and it is believed that a revised proposed Trade Regulation Rule will be published in the Federal Register shortly. The related civil suits are all pending in various stages. FTC Consent Order Compliance Program With the submission of its Compliance Report on April 2, 1975, SPI has complied with virtually all aspects of the FTC Consent Order. The only steps remaining to be effected are in the nature of ongoing duties. In this regard, SPI and its employees must continue to refrain from using the descriptive terminology as specified in the Order. This duty is perpetual with no termination date. SPI must also assist in providing administrative and coordination assistance to the Products Research Com mittee (PRC), created by the Order. Currently the Society has been providing assistance to the Committee along with coordination with the Federal Trade Commission Staff regard ing revisions to the Products Research Committee Trust Agreement and the drafting of a PRC Research Agreement that will be used to effect research grants sponsored by the PRC. SPI's duties to the PRC shall extend for five years, the originally anticipated lifetime of the Committee. The next formal obligation the Society has under the Order is to provide a Compliance Report on December 3, 1975, and each year thereafter with the last Report due on December 3, 1979. /2 Prepared on July 7, 1975 by Jerome H. Heckman, SPI General Counsel, for advance inclusion in the Notebook prepared for the use of the SPI Board of Directors at its meeting to be held at Mariott's Lincolnshire Resort, on July 23-25 , 1975 . SPI-22293 Page 21 v 2- Trade Regulation Rule The proceedings involving the Federal Trade Com mission's proposed Trade Regulation Rule are still formally in a pending status as a result of the statutory mandate for FTC to establish nev? procedural requirements in rulemaking cases as required by the Warranty/FTC Improvements Act. In the meantime/ FTC staffers have been informally discussing the merits of the substantive plastics industry trade regulation rule proposal with SPI representatives, and the Commission intends to republish the proposed Trade Regulation Rule in a revised form in the near future. We have some reason for optimism that the revised proposal will give due recognition to the comments filed by SPI on the original proposed Rule last December. Once the revised proposed Rule is published, a comment period of sixty days will be allowed and, subse quently, public hearings will be held. Related Civil Suits The Sunshine Mine Cases, at the present time, are pending before the United States District Court for the District of Idaho and are in the discovery process. (in these lawsuits, again, SPI as well as many resin suppliers have been named as defendants, in which the damages sought exceed one half a billion dollars.) The next pre-trial hearing date has been set for August 29, 1975 at which point SPI plans to file motions to seek its removal as a defendant from these actions. In the meantime, the plain tiffs have offered a group of "ancillary" defendants, including SPI, an opportunity to settle the case, the possibilities of which are currently being explored by the Society. Mr. Peter Jenkins of the Boise, Idaho law firm of Eberle, Berlin, Kading, Turnbow & Gillespie has been retained as Associate Counsel to represent the Society's interests in these cases. All of the federal actions included in the series of suits known as the Staten Island Tank Cases have been consolidated with respect to the filing of responsive pleadings and for discovery purposes in Eria v. Texas Eastern Transmission Corp., 73 Civ. 668. (These cases, again, arose from a 1973 fire and explosion of a liquified SPI-22294 -3- Pa^e 22 gas storage tank killing 41 employees. SPI has jn included as a defendant and third-party defendant in Lta filed in both federal and state courts.) Eria has set for trial on September 2, 1975, with the results * case likely to dictate subsequent procedure in ining federal and state cases. The law firm of ould, Climenko, Kramer & Casey has been retained scciate Counsel and is representing the Society's ts. The likelihood of obtaining a dismissal of ety from each of these cases is unknown at this Country Club Acres v. PPG Industries, Inc., et al., a civil action instituted in the New York Supreme New York City, is pending at the trial stage, with Id, Climenko, Kramer & Casey representing the interests. Plaintiffs included the Society as t and are claiming damages in the amount of ;00.00 for the destruction of property and the of alleged unsafe conditions in certain structed in upper New York State. _ale Rolls Inc, v. Universal Oven Company, Inc., pending and no trial date has been scheduled, was filed on July 30, 1974, includes the Society ant, and involves claims of property damages from a fire destroying a large oven, brought before the New York Supreme Court New York with damages being claimed totaling *70. The Society's interests are being repreea,'Gould, Climenko, Kramer & Casey. Land Inc., et al. v. The Advance Plumbing ~ al. is also pending witiT no trial date iled on June 12, 1973 in the Wisconsin Cine, Wisconsin, where plaintiffs are seek*he amount of $106,807.58 against a number deluding the Society and the Plastics Pipe ;Y*aion of the Society. The case arose out 5*truction site in Racine, Wisconsin Plastics pipe. Mr. Gerald Flynn Associate Counsel in this action made to seek the dismissal of the tlQs Pipe Institute as defendants. SPI-22295 rate c.j Plastics Combustibility Issues at the Consumer Product Safety Commission and the Federal Aviation Administration */ Various flammability-related activities concern ing plastics products have been initiated at the Consumer Product Safety Commission (CPSC) and the Federal Aviation Administration (FAA) within the last six months. SPI provided appropriate responses in each instance and is now awaiting subsequent agency action. Currently, all of these proceedings are in pending stages. Consumer Product Safety Commission Fact Sheet No. 41 The Consumer Product Safety Commission held a "public meeting" on March 6, 1974 concerning the contents of various of its Fact Sheets including Fact Sheet No. 41 "Plastics". Fact Sheet No. 41, while purporting to enu merate the risks posed by various plastics products used in and around the home, contained numerous incomplete or inaccurate statements of fact, such as: "Plastics . . . tend to release more [than traditional materials} heat and smoke when they burn . . [and] release deadly fumes during fires." . In an appearance at the CPSC "public meeting" scheduled to discuss the flammability-related Fact Sheets, SPI repre sentatives pointed out the inaccuracies in the Plastics Fact Sheet. SPI also stated the positive value of plas tics products when properly used and submitted a proposed rewrite of Fact Sheet No. 41 reflecting the Society's views. The SPI comments were well received and the Society received a letter of thanks from William White, Director of CPSC's Bureau of Information and Education. The Com mission Staff, which indicated that it intends to use the SPI information, stated that the Fact Sheet rewrite would be concluded shortly after the "public meeting". However, no redraft has yet been issued. /2 Prepared on July 7, 1975 by Jerome H. Heckman, SPI General Counsel, for advance inclusion in the Notebook prepared for the use of the SPI Board of Directors at its meeting to be held at Marriott's Lincolnshire Resort, on July 23-25, 1975. SPI-22296 Page 24 i Consumer Product Safety Commission Furniture Petition The Petition filed with the Consumer Product Safety Commission (CP 75-13) on December 20, 1974 by Professor Williamson is still being evaluated at the CPSC Staff level. The Petition requested that, in light of the alleged risk of injury posed by fires involving plastics structural foam furniture, CPSC establish a standard which would ban the use of these products unless they have been shown to be no more hazardous than compara ble wooden consumer products. The Commission has made no decision regarding the Williamson Petition even though the 120 day statu tory deadline expired in April, 1975. Apparently, an internal position paper has been drafted by the Staff; however we have no information regarding the Staff's position nor has the paper been submitted to the Com missioners . In the meantime, the SPI Styrene Producers Ad Hoc Committee of the Furniture Division, formed, in part, to prepare a response to CPSC action regarding the Williamson Petition, has continued its work in developing an analysis of the need for a furniture safety standard in light of the risks posed by the products, and the feasibility of modifying products to avoid any risks, where necessary. Federal Aviation Administration Toxicity and Smoke Rulemakings The Federal Aviation Administration issued an Advance Notice of Proposed Standards on Compartment In terior Materials Toxic Gas Emission on December 30, 1974, with SPI filing Comments on March 27, 1975. On February 12, 1975, FAA published a Proposed Rule on Smoke Emission From Compartment Interior Materials, with SPI receiving a 30-day extension to file Comments, originally due on May 12, 1975, and submitted Comments on June 2, 1975. SPI's position in the toxicity inquiry was already stated in an earlier report. In the smoke rulemaking the Society adopted an approach similar to the one followed in SPI-22297 Page 25 -3the toxicity proceeding, by advocating a systems approach to the control of smoke emissions in fire situations and emphasizing control of the burning jet fuel. SPI continued by giving a limited endorsement of the NBS Smoke Chamber as a valid test method for determining the smoke perfor mance of products in actual fire situations. Finally, the Society stated that if numerical smoke density cri teria, e.g. Ds 100, were to be placed on materials in aircraft interiors, any figures finally adopted should be based on valid testing data. SPI-22298 Federal Regulation and Legislation Concerning Petrochemical Feedstock Availability */ Page 26 < The only federal regulations currently in effect directly affecting petrochemical feedstock availability are administered by the Federal Energy Administration, where at least one major proceeding regarding feedstock availability is pending. Concurrently, various pieces of legislation are being proposed in the U.S. Congress that, if enacted, should facilitate the continued avail ability of adequate supplies of raw materials for the plastics industry. Federal Energy Administration Allocations In a proceeding currently pending before the Federal Energy Administration (FEA), In re Consumers Power Company, Jackson, Michigan, various parties are contesting a decision to allocate synthetic natural gas ("SNG" or "syngas") pursuant to FEA regulations. Under Subpart K - Other Products of the FEA Regulations <10 CFR 0211.201 et seq.) , syngas and petrochemical feed stocks, the raw materials for plastics resin production, are both allocated from the same refined petroleum fraction especially the benzene, toluene, xylene (BTX) mix. As a result, users of SNG and the petrochemicals are in compe tition with each other with the allocation for one end-use being detrimental to the other. In earlier FEA proceedings regarding SNG alloca tions, SPI presented written and oral comments to FEA in opposition to inclusion of syngas in the FEA rules for allocation on the grounds that such a policy would dilute the quantity of feedstocks available and necessary for the plastics industry. However, FEA rejected that argu ment and included syngas in its system of allocation. In the current FEA proceeding, other petrochemical users are opposing the syngas allocations, with the final decision still to be made. However, the Consumers Power case, while still pending, does serve to exemplify the increasing demand pressures being placed on raw materials supplies by competing users. V* Prepared on July 7, 1975 by Jerome H. Heckman, SPI General Counsel, for advance inclusion in the Notebook prepared for the use of the SPI Board of Directors at its meeting to be held at Marriott*s Lincolnshire Resort, on July 23-25, 1975. SPI-22299 -2- ?sige 27 Proposed Federal Legislation Various bills pending in Congress may also affect the raw materials supply situation. The House has recently passed and sent to the Senate H.R. 6860, "The Energy Con servation and Conversion Act of 1975." The major aspects of the Act include the imposition of (1) quotas, licens ing and duties on imports of crude oil and refined petro leum products, (2) gasoline excise auto efficiency taxes, and (3) other excise taxes encouraging conversion away from use of oil and natural gas for industrial production purposes. Of special interest to the plastics industry is the special exclusion of petrochemical feedstocks from the import quotas. Thus, according to this provision, any import quotas on crude oil and refined petroleum products would not restrict availability of petrochemical feedstock imports. Another Bill under consideration is S. 692, "The Natural Gas Production and Conservation Act of 1975." This Act alters Federal Power Commission regulation over natural gas by (1) increasing a ceiling price on "new" natural gas (but not deregulating natural gas prices entirely), (2) discouraging use of natural gas as boiler fuel, and (3) establishing categories of priority users to receive natural gas allocations in the event of emer gencies. With respect to these priority categories, the Bill, while not mentioning petrochemical feedstocks, does establish a category for "other users using natural gas as a raw material." SPI-22300 - J*,c V Status of Solid waste Legislative Matters As predicted, the 1975-1976 legislative season is turning out to be extremely active with an increased number of anti-chemical and anti-plastics proposals on both the state and federal levels. Federal Legislation So far this session. Congress has been .preoccupied with matters pertaining to economics and foreign affairs. Solid waste and energy legislation, however, have come to the fore as the work on other measures was completed. On the House side, the hearings on the "Waste Con trol Act of 1975" (Rogers), and other "ban-the-non-returnable" type bills were completed on April 17, 1975 by the House Interstate and Foreign Commerce Committee's Subcommittee on Transportation and Commerce. There was a good deal of genuine controversy over the resource recovery/source reduction ques tion but apparently resource recovery was favored at the close of the hearings. Although a mark-up session on the bills has not been formally scheduled yet, the Committee has sent a preliminary outline of the legislation to the Government Accounting Office for an economic impact analysis. During the last day of the hearings on the "Waste Control Act of 1975", Mr. John Quarles, Deputy Adminis trator of the Environmental Protection Agency (EPA), in dicated that EPA would not resubmit the Hazardous Waste Bill at this time because of the President's economy edict, but did ask Congress to extend the "Solid Waste Act" (which expires on June 30) for another two years. The Senate Public Works and House Commerce Committees have reportedly decided on a six month extension and hope to have new legis lation ready by that time. In the Senate, the Commerce and Public Works Com mittees which have joint jurisdiction over solid waste* *7 Prepared on July 3, 1975 by Jerome H. Heckman, SPI General Counsel, for advance inclusion in the Notebook prepared for the use of the SPI Board of Directors at its meeting to be held at the Marriott Lincolnshire Resort, Lincolnshire, Illinois on July 23-25, 1975. Page 29 2- - legislation also have been wrestling with various measures on the resource recovery/source reduction issue. Commerce completed its work on a draft "Source Reduction Bill" and Committee member Moss (D-Utah) intro duced the Bill, S.1744, on May 14, 1975. The Moss Bill is similar to that introduced by Senator Hart last year in that it would give EPA authority to standardize con tainers, regulate disposal practices and, in effect, bar items presenting severe disposal problems. Commerce Com mittee Chairman Magnuson has requested that written com ments be filed on the Moss Bill; depending on the issues raised by those comments, hearings may or may not be held. With the extensive legislative record compiled last year on the Hart Bill, the Committee could move directly to a mark-up session. Public Works, on the other hand, is still re viewing its staff working paper of April 2, 1975 entitled "The Solid Waste Utilization Act of 1975". The Public Works Committee has received written comments on its draft and may have a mark-up session in mid-July. Once Public Works completes its review, the draft will be ready for introduction to the Senate. With regard to the "Toxic Substances Control Act of 1975" (Tunney-Hart-Magnuson), the Senate Commerce Com mittee's Subcommittee on the Environment completed its hearings on the Bill, S.776, on April 15, 1975. The "Burden of Proof" amendment (Hart) to S.776 which would require industry to show that governmental action in an alleged environmental insult case is not justified, will also be up for Committee vote. Commerce has scheduled the Bill for mark-up several times over the past week but so far has not considered the proposal. It is pos sible that the Senate Judiciary Committee may attempt to claim joint jurisdiction on the "Burden of Proof" amend ment. The House version of the "Toxic Substances Con trol Act of 1975", H.R.7229, was introduced by Representa tive Eckhardt (D-Texas) on May 21, 1975. The Bill was referred to the House Interstate and Foreign Commerce Subcommittee on Consumer Protection and Finance and, after incomplete hearings in June, the Subcommittee has scheduled additional sessions for July 9-11. The House SPI-22302 Pa^e - 3- version is slightly broader than the Senate's S. 776 since it would prohibit sale and require pre-marketing screening for all "hazardous and potentially hazardous chemical sub stances . " Energy legislation also has been the subject of recent action by the Senate Commerce Committee. On May 8r Commerce reported to the Senate Floor by a 10-8 vote a com plex Bill, S. 692, which would stop short of deregulation by boosting the Federal price ceiling on new on-shore natural gas produced by independents, but exclude new off-shore natural gas and natural gas produced by major concerns. A substitute Bill, Amendment 586, has been introduced by Senator Pearson (R-Kansas) and co-sponsored by ten other Senators; this Bill would deregulate all new natural gas produced by independents. Debate on the Senate Floor is expected to begin after the July 4th recess. Both the Federal Energy Administration and the Executive Branch are opposed to S. 692 because the legislation is not considered strong enough to effect a major increase in exploration for new natural gas reserves and reduce the current rate of consumption. On related energy fronts, the full House in debate on the "Energy Conservation and Conversion Act of 1975" (Oilman) voted to p(Lace an excise tax on the business use of petroleum and natural gas. Apparently, the purpose of this provision is to encourage a switch to coal by industry. The Ullman Bill was passed by the House on June 20 and now goes to the Senate for consideration. Also in the House, Representative Dingell's Energy Subcommittee of the House Interstate and Foreign Commerce Committee reported its own "Energy Conservation Act of 1975," H. R. 7014, to the House Floor on June 24. A provision of this Bill would bar the export of petrochemical feedstocks and, thus, help maintain the supply of basic plastics manufacturing materials. The House is expected to consider H. R. 7014 soon after its return from the July 4th recess. The "Agency for Consumer Advocacy Bill" was passed by the Senate on May 15, 1975 after a 71-27 vote to close debate ended a four-year filibuster. The House version of the same Bill, H. R. 7575(Brooks-Rosenthal-Horton) was introduced on June 4. H. R. 7575 is substantially identical SPI-22303 Page 31 -4- to the Senate version in that it only provides for repre sentation of consumer interests in the areas of safety, pricing and health, but it would give the new Agency, rather than existing agencies, authority to conduct inter rogatories and direct consumer information programs. Hear ings were completed by the House Government Operations Committee on June 19 and no date for mark-up has been set. President Ford has indicated that he will veto the Bill if it is passed by Congress. State Legislation The 1975-1976 legislative sessions in the states have been extremely busy. Although the vast majority of adverse solid waste legislation has been defeated, there has been an increase on the state level of bills which would impose packaging taxes and ban plastic bottles. Massachusetts In Massachusetts, over a dozen restrictive pack aging bills and four bills which would regulate the flamma bility characteristics of plastics, especially polyurethane, have been introduced. Of the bills that have come up for hearing, Massachusetts counsel reports that one "clear tray bill" and all the flammability bills have been reported adversely by the various Committees reviewing them and, thus, may be considered dead for this session. An attempt was made to save the remaining "clear tray bills" by including them in a special investigative committee mentioned below, but the Rules Committee recommended that the proposal not pass so those bills, in effect, have been laid to rest. Solid waste legislation in Massachusetts has taken an interesting turn. A bill, H. 5876, has been introduced and promptly and favorably voted on by the House which would form a Special Committee to investigate the non-returnable container situation. Two bills which would have prohibited the use of non-returnable glass, plastic and metal containers for carbonated beverages and beer were attached to this Special Committee Bill on April 7, 1975 and 22 similar con tainer bills on which hearings before the State*s House - 'Vi. SPI-22304 Page 32 - 5- Committee on Natural Resources and Agriculture were com pleted in March have been similarly referred. The Special Committee bill was sent to the Senate for its concurrence on May 13. Membership on the Special Committee has been enlarged and it is believed that non-hostile legislators will be appointed so that an objective decision can be made. The transfer of all non-returnable legislation from the standing committees of the Massachusetts Legislature to the Special Committee will, it is expected, prevent the enactment of any such legislation this session. When the Special Committee's work is done, however, any bills reported will be ready to go in that or any future session. A "ban-the-tab" bill which was not referred for investigation to the Special Committee was reported by the National Resources and Agriculture Committee and ordered to a third meeting on the House Floor on April 17, 1975. Further action is expected but associate counsel in Massa chusetts informs us that the chances for defeat on the House Floor are good. Minnesota In Minnesota, the legislative session ended quietly on May 1, 1975 without the passage of new container legislation. A modified Oregon-type bill, a Vermont-type mandatory deposit bill with a pull-tab ban, a container tax bill which would impose a 1/4 cent tax on all non-returnable beverage containers, and a bill seeking to ban the sale of any unregulated fluorocarbons all remained in Committee. In addition, a bill which would have banned all aluminum cans was tabled and another which would have banned beverage containers other than 15-trip returnable glass and all steel cans was laid over. Despite this success, however, it must be remembered that in Minnesota bills not passed this session carry over to the next one scheduled for January of 1976. On the judicial rather than legislative front, SPI, five other trade associations and a number of individual companies--including three Minnesota plastic packaging companies--have joined in a Declaratory Judgment action SPI-22305 Page 33 -6- designed to challenge the Minnesota Pollution Control Agency's (MPCA) "Packaging Regulations." The suit, entitled Can Manufacturers Institute, Inc, et al. v. State of Min nesota et al., was filed on May 29 and a hearing was held on the Plaintiffs' Motion for a Temporary Injunction before Judge Harold W. Schultz on June 12. The Motion was finally submitted to the Judge on June 24 after the State of Minne sota filed its last Memorandum in Opposition to the supporting Memoranda of the Can Manufacturers Institute, Inc. et al. A decision on the Temporary Injunction is expected shortly. A possible trial date for a full hearing on the merits of this case is expected to be scheduled for sometime this fall. In light of the State of Minnesota's Answer to the Complaint which initiated this litigation, however, it is possible that trial will be delayed due to additional motions by the defense. The Answer raised as affirmative defenses issues concerning jurisdiction, standing, justiciability and exhaustion of remedies which normally are contested in pre trial motions seeking to dismiss a Complaint. Tangentially related to the general Minnesota situ ation, the head of the MPCA, Grant Merrit, recently resigned his position and Peter Gove, the Governor's Assistant for Environmental Affairs, was appointed to replace him. Gove is expected to be a sensible and objective administrator who is, for instance, against "ban-the-non-returnable" type legis lation because of the already high unemployment in Minnesota's labor market. Vermont The legislative session in the State of Vermont ended on April 25, but not before it took a last minute adverse turn. A bill, passed by the House, which prohibited nonreturnable glass containers and banned pull tabs on metal cans and the plastic rings that hold them together had been sent to the Senate Finance Committee where it was recommended for study over the summer. The bill, however, was recalled to the Senate Floor two days before the Vermont legislative session ended and passed. This was the only anti-packaging legislation to get through the State of Vermont this session. SP1-22306 Page 3U -7- New York As New York's legislative session draws to a close (this session is expected to end on July 3), Committee and Floor action on solid waste and packaging bills is suddenly increasing. An Oregon-type bill, S. 139-B, which had been stalled in the Standing Committee on Consumer Affairs was reported to the Committee on Rules at the request of the Senate Majority leader and an effort to bring the bill to the House floor is expected. SPI has submitted a memo to the Rules Committee members objecting to S. 139-B. A com panion bill in the House, A. 6884--which has not been reported out of the House Commerce Committee--was previously the sub ject of an SPI statement opposing this type of legislation in April. A "Clear Tray Bill," A. 8326/S. 6310, which would require that 70% of the bottom side of the contents of any meat or fresh food package be visible has been voted to the House Floor. The bill was reported from Committee and, as of June 27, was still in its third reading on the House Floor. This Bill probably will not be voted from the House Floor to the Senate before the session closes. Two other bills of importance in New York are a "Comprehensive Resource Recovery Bill," A. 5440, similar to that in the State of Connecticut and a "Package Review Bill," A. 7219, like the one in Minnesota. These legislative pro posals are before the House Committees on Finance and on the Environment, respectively, and have not been the subject of Committee action. In related activity, the New York City Council again has been considering an ordinance to tax packages and con tainers. This one would have imposed a 1 cent tax on paper, a 2 cent tax on glass and metal and a 3 cent tax on plastics. Some good hard lobbying by SPI representatives kept the package tax out of the City's crisis budget proposal on June 20. However, should the State of New York refuse to give New York City the money it needs to meet its financial obliga tions, the package tax concept may again be resurrected. - SPI-22307 Page 35 Oregon The Oregon legislative session adjourned on June 14, 1975 without the passage of anti-packaging or anti plastic legislation, but it required a major effort on the part of SPI to keep it that way, A "Packaging Guidelines Bill* similar to the present Minnesota Packaging Law was introduced at the re quest of the State's Department on Environmnetal Quality. After hearings on April 10, 1975, the Environmental Quality Committee reported out a modified bill which would author ize the development of any packaging regulations deemed necessary after a study of the effects of packaging on solid waste generation and the role of packaging regulations in solid waste management. The bill was referred to the Ways and Means Committee and died there with the close of the session. In addition, a bill which would have banned plas tic beverage containers in Oregon was introduced and referred to the House Environment and Energy Committee. On one weekend notice, SPI mustered its forces and testified in opposition to the bill at the Committee Hearings. Despite repeated attempts by the Committee Chairwoman to have the bill voted out, it died in Committee of a 3-3 deadlock with the 3wing vote abstaining. There is no legislative carry-over in Oregon so both of these bills must be reintroduced next session. Oregon's Legislature is scheduled to convene again in Jan uary, 1977, but a special session can be called by the Governor at any time. Miscellaneous In the District of Columbia, the City Council held hearings on two Oregon-type bills on June 4 and 5. One of the bills, a proposal introduced by J. W. Hobson, would place a ten cent deposit on all beverage containers and pro hibit the use of plastic bottles designed for one-way use and plastic cups in vending machines. SPI submitted a state ment opposing the bills, particularly the Hobson bill. Our SPI-22308 - 9- Page 36 contacts at the City Council indicate the Council members do not have much evidence on plastics in the solid waste stream so, hopefully, the SPI statement will provide the type of constructive information needed for them to reject a ban on plastic bottles and plastic cupSi The prognosis for the Oregon-type deposit pro visions, however, is not good. The City Council has passed such an ordinance before and is expected to do so this time. It will probably be tied to unanimous action by the five surrounding metropolitan jurisdictions. At the present time, none of the five D. C. area cities or counties has enacted Oregon-type ordinances but at least two counties do have such proposals pending. In fact, Montgomery County in Maryland has a proposed ordinance which would tax all beverage con tainers sold within its jurisdiction. In California, a Washington State-type "litter levy" was introduced on May 22 in the State Assembly. The bill, A.B. 2353, would impose a 1 l/2%tax on beer, soft drinks, wine, liquor, candy, cigarettes and cups with the proceeds to be used to collect and dispose of solid waste. The bill was referred to Committee with a good deal of local press cov erage . In Michigan, a bill which has nothing to do with solid waste but would have a very definite adverse effect on plastics has been proposed. A bill to prohibit the use of plastic pipe in building construction (S. 976) was introduced recently in the Michigan Senate and referred to Committee. So far as we know, there has been no committee action on the bill and the Plastic Pipe Institute is alert to the situation. In New Hampshire, an energy bill, H. B. 678, which would have regulated the construction and operation of petrpchemical plants, including petrochmeical feedstocks proces sors, died in Committee with the close of the legislative session. In hearings on May 20 before the Senate Committee on Recreation and Development, SPI urged that the State re ject the bill because of its restriction on plastics manu facturing and the burden it would place on plastic related industries wanting to come into the state. SPI-22309 37 -10- In South Carolina, a "ban-the-non-returnable" bill, H. B. 2501, which went to the House Floor and was continued, remains buried behind other legislation despite several efforts to recall it for another vote. The South Carolina Legislature was expected to adjourn about June 20 with no further action on the bill, but it will carry over to the next scheduled General Assembly session in January of 1976. In other states of interest, Oregon-type bills have been defeated either in Committee or on the Legisla tures' Floors in Arizona, Connecticut, Illinois and Maine (by one vote). SPI-22310 Page 1 MIDWEST SECTION Jack E. Giatt, Chairman Robert W. Sherman, Staff The 6th Annual Midwest Conference is now history. While attendance was down about 20%, those attending report the program the best ever. Missing in attendance were suppliers, processor attendance was actually up from pre vious years. The EPS Conference at the Abbey increased in attendance and over 250 participated, which is absolutely remarkable for a relatively small industry. The Design Competition held in conjunction with the Conference had 24 entries. In our education efforts we now have a thermoset supervisors training course to companion the injection molding program. Chapters continue strong with three meetings a year in Chicago, Twin-Cities and Cincinnati. In December a special program was held in Detroit to stir up interest. While considerable interest does exist, it's a matter of timing. The automotive industry doldrums have this group really down and not likely to become immediately active in a group. As the Midwest states experience revenue problems they are turning to enforcement of several business taxes, SPI bulletins and interpretations have been generated. The industrial relations committee completed and published a 48 page "Labor Relations Manual". All Midwest non-respondents have been personally contacted by staff and results are part of the membership report. The EPS Block Molders and a complete series reports issued. funded program exceeded of fire tests have been expectations run and 7 .? SPI-22311 Page 2 NEW ENGLAND SECTION F. Reed Estabrook, Jr., SPI Board Representative Gage Olcott, Section President Bert S. Montell, Staff The Annual Spring Meeting of the New England Section was held in West Springfield, Massachusetts on March 24 of this year. 85 company representatives heard talks on "Economic Outlook and Trends in 1975" and "The National Fiscal Outlook and How It Affects New England." A representative from A. T. Kearney, Inc., Management Consultants, spoke on "Tapping Your Plant's Hidden Capacity." Reed Estabrook also reported on the work of the Massachusetts Governor's Task Force dealing with the problems of the plastics industry. A policy was also announced at this meeting in regard to attendance of non members. A non member may attend one future conference only. His company must join thereafter for it to send representatives to these yearly conferences. The 31st Annual New England Conference will be held at Dunfey's Resort and Conference Center, Hyannis, Massachusetts September 16-19> 1975. The 1976 Conference will be held once again at Wentworth By-The-Sea, Portsmouth, New Hampshire. The theme of the 31st Annual Conference will be "How Can A Plastics Processor Operate Profitably in 1976." The Program Chairman for this Conference will be Larry Bauer of Reed Prentice Division, Package Machinery Co., who also serves as Section Vice President. Bert S. Montell June 26, 1975 SPI-22312 J Page 3 WESTER}! SECTION Robert K. Halliday, Chairman Lloyd N. Darden, Staff Several completely new functions have been developed: The Fire Watch, aimed at posffire analysis of plastic fires; a college scholarship pro** gram with public relations aspects; and a personnel committee to develop a better understanding of employment regulations. See below. Combustibility Committee Frank Roselli, Chairman Actually a subconmittee of Che national CCCS, this group has two pro* jects: Fire Watch and the combustibility seminar at SPE PacTec, September 17. Scholarship Coimittaa Robert Berwick, Chairman This coomittee is developing a scholarship program suggested by the 1976 Western Section Conference, aimed at inspiring students to write essays relating to the importance of plastics in the century 1976*2076, Speakers* Bureau Conwrittp.* Warren T. Buschmann, Chairman This coomittee is generated to develop fixed, prepared topics to take to outside audiences as a public relations thrust. Their first endeavor will probably revolve around Dow presentation generating audio*vlsual support material and text. Poraarinpl fmwiHttPP First meeting to be held in August. Steve Grozik, Chairman Trade Apprenticeship r.nmrtttai Richard Sperr, Chairman This committee Is currently Inactive. See Moldmakers Division. Western Section Conference W. H. Bohler, Jr., Chairman The 1975 conference, held April 23-25, at Hyatt Regency Hotel in San Francisco, was successful except for showing some financial loss. The 1976 conference dates are June 1*5, Hotel del Coronado. Chairman confer* red with hotel personnel in May to make preliminary plans and executive board planning meetings scheduled for April 30*May 2. SPI-22313 WESTERN__SE.r:TTON Continued ^ Page 3-a Southern CaUfomia Chapter Dean Hoss , President Returned by popular demand, June meeting was SP1 Day-at-the-Races, with excellent turnout. September 26 is next meeting. A tentative whole* year schedule of events presented at May 27th board meeting by Vice President-elect Rick Beitel. Final calendar to be published in near future and distributed to media. Northern California Chapter Paul Rossi, President Paul Rossi re-elected president. Last meeting in San Francisco June 6th. September meeting date not selected. Pacific Northwest Chapter Ripley W. Gage, President Rip Gage re-elected. Annual Business Meeting held May 30-June 1, Port Ludlow, Washington. Installation of new officers to take place at August board meeting. September meeting will be group charter flight to Dusseldorf, Germany for "K-'75.n Reinforced Plastics/Comoosites Institute David Dubbell, Chairman April's Steering Committee meeting and May's general meeting featuring Modern Plastics Magazine presentation "Plastics--The Next 25 Years" con cluded this group's activities for the summer. Combined with the general meeting was the awards dinner for the George Hulsman Memorial Awards Con test winners, whose exhibits will be displayed at the California Museum of Science and Industry throughout most of the sumner. Corrosion-Resistant Structures Subcommittee meeting June 27, chaired by Frank Cassis, to plan conference for April 27-30, at Ceasar's Palace, Las Vegas. Seminar will consist of four sessions, featuring: Corrosion, general; RP Process Equipment; RP Pipe; and RP Tanks, as well as a Workshop/Panel Discussion Session. PlasHcs for Tooling Group Charles Owen, Chairman The March Annual PFT Conference was cancelled due to lack of registration. No longer viable as presently formed, this group is working on developing a new concept, i.e., a travelling one-day education seminar using largely same speakers and standard pre-prepared format. Suggested is a JanuaryFebruary pilot education seminar. SPI-22314 WESTERN SECTION (continued! Page 3-b Expandable Polystyrene Materials Group William Bie, Chairman This group terminated its activities for the simmer with a successful May general meeting on improving financial management. Western partici pation in national EPS meeting and competition is encouraged. A Western newsletter has been started. Moldmakers Division Paul Jones, Chairman This comnittee is planning to develop a new concept. Three dinner meet ings a year will be held, the first this September, followed by January and May. The group plans to narrow the apprentice program and take It under the Moldmakers Division auspices. Molders Management Division Edward Wilgus, Chairman Successful Ojai '75, Injection Molding Handbook should be delivered from the printer soon. For the first time there will be a Spanish edition. The new committee is rehearsing the general purpose to deal with management topics and Is devoting time to discussion of the Northern California Monterey and Ojai meetings and speakers. In January, another Western Labor Cost Survey will be conducted. Lloyd N. Darden July 1, 1975 PLASTICS PIPE INSTITUTE Page 4 Barton W. Hodges, Chairman Ray Durazo, Staff 1975 has been designated as the plastics piping industry's official 25th Anniversary. PPI is commemorating this milestone with a year-long public relations effort. PPI held a special Quarter-Centennial Annual Meeting, April 21 - 24 at the Town and Country Hotel in San Diego, California. Barton W. Hodges of Charlotte Pipe & Foundry Company in Monroe, North Carolina was elected PPI President succeeding Dr. J. F. Cogdell of DuPont who announced his resignation at the meeting. Dr. Cogdell has accepted a new assignment at DuPont and will no longer be Involved with DuPont's Pipe Division. Highlight of the meeting was an address by Congressman Paul McCloskey (R-Calif.) in which he outlined the problems of the national defense, the budget and the economy. The meeting was one of the most wellattended in recent years with registration exceeding 300. An Ad Hoc Task Group has been formed under the umbrella of PPI's Plumbing Products Committee whose purpose is to prepare a detailed testing program for the further fire testing of plastics DWV and conduit at the University of California at Berkeley. The task group has held numerous meetings during the last few months and testing is scheduled to begin in the near future. The Board of Directors of the American Water Works Association (AWWA) has approved the publication of a new standard on Polyvinyl Chloride (PVC) plastic pipe. Publication of this standard, scheduled for early fall, will culminate an effort which began in 1968 to produce a standard on plastic pipe for water Industry use. PPI has been an active participant in the AWWA standard-writing project since its inception. The new standard Is perhaps the most stringent standard ever written for plastic pipe. PPI had initially recommended a safety factor of 2-to-l but the new standard goes even further and calls for a safety factor which in some cases approaches 4-to-l. The PPI Market Division will hold Its annual session of summer meetings July 21 - 23 at the Alameda Plaza In Kansas City, Missouri. Kathleen M. Gormley June 23, 1975 SPI-22316 Page 5 THERMOPLASTIC EXTERIOR BUILDING PRODUCTS DIVISION Kenneth R. Valleskey, Chairman Juliette Lang Cahn, Staff The last Division meeting was held at Chicago, June 11, 1975. The latest revision of NBS Product Standard PS-55-72 for vinyl siding was accepted and is to be submitted to ASTM relative to its promulgation pending approval by legal counsel. The weatherability program is continuing and will be concluded in the near future. A combustibility statement was drafted by the Technical Comnittee and presented for comment. Two statements are being considered: One, a very general version for the consumer and distributor and the other, a more technical statement for architects, code groups, fire officials and H.U.D. Correspondence with F.H.A. is being held to update the F.H.A. Material Release for Vinyl Siding. Various technical bulletins or pamphlets were discussed; and work started to develop same. The marketing interests have worked with "The Professional Builders" magazine, which will be publicizing "The Professional Builder, Volume II" on exterior plastics building products which will point out various plastic products available to builders. The Division will be holding a joint meeting with the Profile Extruders Division in September, 1975. Kenneth R. Valleskey June 30, 1975 SPI-22317 FOAM CUP AND CONTAINER DIVISION Page 6 Robert Stillinger, Chairman John Malloy, Staff The most significant recent action of the Foam Cup and Container Division was to divert fully one half of the 1975-76 Public Relations budget into the area of Public Affairs (Environmental concerns) rather than promotion of increased product use. Plans are currently under development. Three meetings were held in the past year, with primary activity being in the area of Public Relations and Promotion. Other portions of the programs in cluded development of cup performance standards, the on-going statistical program, machine safety standards, and a public affairs awareness program. The technical program to develop performance standards has been held in abeyance for re-evaluation of success potential. A new technical program has begun, to develop machine safety standards in cooperation with the SPI Machinery Division. John Malloy July 3, 1975 SPI-22318 Page 7 FOAM tray AND CARTON DIVISION John A. Larkin, Chairman John R. Lawrence, Staff The principal concern of rh; t Division continues to bo legislation chat would ban the sale of prepackaged neat, poultry or produce in trays which do not allow visibility of the underside of the packaged product. The Division has retained special counsel to provide legislative sur veillance in four states. So far this year no such legis lation has passed in any state. In the fall, the Division will be taking part in a Factory Mutual warehouse test involving the control of a fire in which polystyrene foam trays are ignited under typical storage conditions. SPI-22319 Page 8 PLA5TIC BOTTLE INSTITUTE Donald Pollock, Chairman John Malloy, Staff The Institute promotion program continued to receive the major budget emphasis in the past year, and will al60 in the forthcoming fiscal period. However, there will be a measured shift in direction, toward educating consumers and trade on the true environmental impact of plastic bottles, while maintaining primary emphasis on promoting the benefit of this packaging for a variety of product applications. Methodology is through continued use of the spokesperson, public service messages,educational kits, published articles, and others. Technical Committee work is continuing on revisions to existing test methods bulletins, and the development of new ones, A new consideration is the current evaluation of the present legal atmosphere as related to our promulgation of test methods and standards, the results of which may require further modifications to the Institute's technical publications. The Statistical Committee met with representatives of the Bureau of the Census, to begin development of a revised and more detailed format for reporting plastic bottle sales. This will become effective in 1977. Market Development work is in the area of food packaging, with continued concern for creation of value stories in various markets, and monitoring government and other actions affecting the market for plastic bottles. The Carbonated Beverage Bottle Cccnlttee is presently in the process of round-robin testing of proposed teat methods, aiming for first phase completion by September. The traffic group and the Waste Management Cocanittee continue to monitor activities in their respective areas and report on those which impact on the plastic bottle industry. John Malloy June 30, 1975 SPI-22320 Page 9 PLASTIC DRUM INSTITUTE Daniel W. Barber, Chairman Bert S. Montell, Staff The Plastic Drum Institute, until recently called Industrial Container Institute, has operated at an accelerated pace during the last six months. Meetings were held in Des Plaines, Illinois on February 5, and in Washington, D.C. on May 22. The membership is particularly concerned with the development of valid and realistic specifications on the all plastic 55 gallon drum which gives every evidence of a tremendous growth potential over the next several years. Under the chairmanship of Dan Barber of Container Corporation of America, liaison has been established with Petroleum Packaging Committee of the American Petroleum Institute; Department of Transportation, Office of Hazardous Materials; General Services Administration; National Motor Freight Committee; Uniform Freight Classification Committee; Bureau of Explosives, and Manufacturing Chemists Association. At the May 22 meeting, Mr. William Bums, Director of the Office of Hazard ous Materials, together with two of his colleagues, as well as representa tives of the National Bureau of Standards, specifically discussed the Federal Transportation Safety Act of 197^ Mr. Burns stated that his office is presently determining the criteria required for specifications to be developed under the Act. Meanwhile, the National Bureau of Standards is undertaking a testing program on industrial containers, particularly the all-plastic 55 gallon drum. Four companies have joined the Division during the past six months with an additional three companies expected to join by Fall. The Semi-Annual Meeting of the Institute is being held at Marriott's Lincolnshire Hotel, Lincolnshire, Illinois on September 10, Bert June 11 SPI-22321 PLASTIC JERKY CAN COMMITTEE Page 10 Douglas Smith, Chairman John Malloy, Staff A performance standard has been developed and is being published by the U.S. National Bureau of Standards. Additional planned activity is in the area of establishing test methods necessary to satisfactorily indicate compliance with the standard. John Malloy July 3, 1975 SPI-22322 RIGID PLASTIC CONTAINER DIVISION Robert Kittredge, Chairman John Malloy, Staff The Rigid Container Division continued to work on a market research project and the development of a public relations program. In addition, the Thermoformers Technical Committee began work on a machine safety standard in cooperation with the SPI Machinery Division. Meeting activity included presentations on the SPI-sponsored fire testing of stored packaging, which was of strong interest to members. Future meetings are planned to include presentations by resin suppliers on the short and longrange outlook for materials and by package design experts on potential new rigid container products. John Malloy June 30, 1975 t Page 12 BUTTON GROUP John L. Rie, Jr., Chairman Bert 3. Montell, Staff There has been no activity within this Group since the last Board report. Bert S. Montell June 26, 1975 SPI-22324 Page 13 CUSTOM SHEET EXTRUDERS DIVISION M. L. Christensen, Chairman Bert S. Montell, Staff The Custom Sheet Extruders Division held a meeting in St. Louis, Missouri on February 4, 1975 and its annual meeting in Scottsdale, Arizona on April 10 and 11 of this year. During these business sessions, there were presentations by special ists on the energy problem; materials availability; plant inventory control; the OSHA VCM standard and FTC matters. At the annual meeting, there was a panel discussion on "Markets and Outlook For Various Types of Plastic Sheeting," participated in by representatives from Marban Chemical and Phillips Petroleum Co. There was also talks on "General Extrusion and Take-Off Equipment" and "Die Design and Co-Extrusion." The Division members continue to participate in a quarterly statistical survey on production of the various types of plastic sheet. Under the new Chairman, Les Christensen of Atlas Plastics Corporation, a number of Ad Hoc Committees and Standing Committees have been formed which will be responsible for matters of pertinent interest to a custom sheet extruder. The Semi-Annual Meeting of the Division will be held at Marriott's Lincolnshire Hotel, Lincolnshire, Illinois on September 9 of this year. Bert S. Montell June 26, 1975 SPf.22325 Page 14 FURNITURE DIVISION Robert R. Cook, Chairman Juliette Lang Cahn, Staff The Poly Awards Breakfast was held on June 16 at the American Mart in Chicago. An enthusiastic group of about 100 furniture manufac turers, dealers, component producers and raw material suppliers were present as the winners were announced and elides of the award-winning entries shown. Press kits provided data to a large number of media representatives at the market. The Membership Committee has been successful in securing two new SPI members and three more are considered good prospects. This activity is continuing. In accordance with the decision made at the last meeting of the Furniture Division on June 16, the revised Specifications for Polystyrene for Furniture Applications have been submitted to ASTM. Since the last Board report in January, a Styrene Producers Ad Hoc Committee, functioning under the aegis of the Furniture Divi sion and chaired by Dr. Kenneth Burgess of Dow, was organised for the purpose of developing data which might be used in connection with the Brady Williamson petition and other problems of this nature. Although this particular committee is made up of styrene producers, suppliers of other materials have been requested and encouraged to participate in similar programs. Southwest Research Institute has conducted full-scale burns and is In the process of completing the report. The cost of this project was underwritten by the seven styrene members of the Ad Hoc Conolttee. Robert R. Cook July 2, 1975 SPI-22326 HOUSEWARES MANUFACTURERS GROUP John D. Braught, Chairman Juliette Lang Cahn, Staff A meeting was held 29 May, 1975 with Lustro-Ware Division Borden Chemicals, Inc.; Loma Corp.; Rubbermaid Commercial Products, Inc.; USI, Chemical Co.; and USS Chemicals in attendance. Problems relating to plastic trash container regulations, as well as localized efforts to ban plastic trash containers were discussed. Efforts will be made to effectively represent our group in these instances. N.F.P.A. proposed standard 303A and 56J-1975 were also discussed. It is felt with the problems currently facing our industry it is necessary that we form an active group to address these situations. Therefore, we are holding a meeting on July 15, 1975 at McCormick Place in Chicago for the purpose of consolidating our efforts in this direction. John D. Braught June 30, 1975 SPI-22327 Page 16 MACHINERY DIVISION John C. Reib, Chairman Bert S. Montell, Staff The Annual Meeting of the Machinery Division took place at The Homestead, Hot Springs, Virginia on April 30, May 1 and 2, 1975- Attendance at this industry session was excellent with a registration of over 100 company representatives as well as 55 ladies. The six Sections dealing with various types of plastics processing machinery as well as the Safety and OSHA Committee, Planning Committee and Executive Committee met at this time. The principal work underway is the preparation of proposed Safety standards and their subsequent review by concerned operating units within the Society. When a consensus has been reached, these proposed standards are prepared in the format of the American National Standards Institute for review and/or approval by interested organizations throughout the country. The members are also giving attention to the problems of metrification. The Planning Committee will publish information in this area periodically to the Division members. At this Division meeting on May 2, there were panel discussions on "Product Liability Matters" and on "Electrical Code Problems." Company members as well as our SPI Legal Counsel, Jerry Heckman, took part in these worthwhile presentations. The Semi-Annual Meeting of the Division will be held at Marriott's Lincoln shire Hotel, Lincolnshire, Illinois on November 12-14 of this year. Bert S. Montell June 26, 1975 SPI-22328 Page 17 MELAMINE DINNEKWARE GROUP For report, please see Holder^' Management Division Report on page 18. SPI-22329 Page 18 MOLDERS MANAGEMENT DIVISION Richard McKibben, Chairman Robert W. Sherman, Staff The Molders Division Policy Board held the longest meeting in their history as a result of being snowed in for two days. They drafted positions on energy, taxes and depreciation allowances. The Division plans a major conference in October in the Twin-Cities as well as Monterey, California and in February, 76 Ojai, California. An Ad-Hoc Committee completed work on new test methods for cookware handles. A training aid booklet on injection molding has been completed and for the first time will be available in both English and Spanish. Chapter meetings continue to be successful in New England, the Midwest and West Coast. The Division is anxious to assist Richard Frock in developing an East Coast program. The Division is beginning to work on ways to beeter comannicate its activities to non-members. The Melamine Dinnerware Committee has raised $9,000.00 for an investigation into public relations and will request a Board resolution at this meeting to become a funded group. Robert W.Shernan July 3, 1975 SPl-22330 Page 19 MOLDMAKERS DIVISION Josef Klingler, Chairman Robert W. Sherman, Staff With the success of the first Moldmakers Conference, the second is now set for October 2nd and 3rd in New Orleans. All speakers have been committed and indications are the second will be larger than the first. The Division hired from conference income an agency to map out a career guidance program. This has been received but because of cost will be implemented by staff rather than an outside service. The Directory of Member Services of the Division has been so well received it had to be reprinted after distribution of 2,500. A new up-date is now being prepared along with a membership drive for greater listings. In New England a chapter has been formed and the first meeting brought in 4 new members. This group will meet a second time September 9th. SPI-22331 Page 20 PLASTICS FOR TOOLING SPECIAL PURPOSE GROUP Thomas Jackson, Chairman Charles L. Condit, Staff The principal activity of the Plastics for Tooling Group is one of sponsoring and detailing the Annual National Plastics for Tooling Seminar at Purdue University. The Sixteenth Seminar took place on June 10, 11 and 12; and in spite of the expected falling off in attendance due to the economic down-trend in the automotive industry, surprisingly, there were well over 125 individuals present. The program, comprised of concurrent sessions, as well as the usual workshop, was extremely well received. The Seventeenth Seminar will again take place on the Purdue Campus on June 8, 9 and 10, 1976. Robert W. Sherman, Manager of SPI's Midwest Office, will assume the administration of this Group following the retirement of Charlie Condit. Charles L. Condit July,7, 1975 SPI-22332 Page 21 PROFILE EXTRUDERS DIVISION William F. Miller, Jr., Chairman Juliette Lang Cahn, Staff This report is principally devoted to what our Division is going to do rather than what it has done since my term of office began on June 1, 1975. The key to the continued success of our Division is to serve our members through providing meeting programs that are interesting and Informative. Our next meeting will take place in the Chicago area on September 25 and 26. Ken Valleskey and I have decided to continue the highly successful policy of holding combined meetings since many of the Exterior Building Product Division members are also Custom Profile Extruders. At this Chicago meeting we hope to present a program related to OSKA and EPA and the effect these two relatively new agencies have had on our industry. Also, a tooling cost survey that has been under way is proceeding. The replies are in and being tabulated now. William F. Miller, Jr. June 30, 1975 SPl-22333 RP/C INSTITUTE James J. Coleman, Chairman Joseph S. McDermott, Staff The financial report from the Institute's 30th Anniversary Conference, supplemented by after-sale of the Proceedings Book, reflects a continuing healthy annual meeting. The Program Cocmittee for next February's Conference has met twice and organized twenty-three technical sessions in a four-day program. A featured luncheon speaker, Elliot Estes, President of General Motors, has promised to deliver a major challenge from the automotive to the plastics industry. Seven major technical Committees are active within the Institute: Corrosion-Resistant Structures High-Performance Composites Panel Council Photochemical Emissions Plumbing Fixtures Resins Thermoset Press Molding All are active in writing standards, conducting field testing, and maintaining on their own initiative sound relationships with testing bodies and regulators. The Institute's liaison with the SPI Coordinating Committee on Consumer Safety, and the Safety and Loss Prevention Comnlttee is strong. The Institute has contributed material and editing time to the "Positive publicity" program of the PAC. The Western Section of the Institute recently arranged its most successful education program, with the student competition results on display through the sunnier at the California Museum of Industry. Joseph S. McDermott June 26, 1975 Page 23 CELLULAR PLASTICS DIVISION Walter E. Becker, Jr., Chairman Bert S. Montell, Staff The 1975 Annual Meeting of the Cellular Plastics Division took place at the Fairmont Hotel, San Francisco, California on April 2, 3 and 4, 1975- During this time, the Structural Foam Group held its Third Annual Conference and Exhibit. 370 registrants attended this three day industry session. This was one of the best attended meetings sponsored by the Division. In addition 140 ladies were in attendance. At the industry luncheon on April 3, Lowell Anderson, Manager of Supply and Distribution, Amoco Chemicals Corp., discussed "Petroleum Feedstocks For The Plastics Industry." Comprehensive fire testing programs continue on urethane and expandable polystyrene foam materials at Factory Mutual and Underwriters' Labora tories. These combustibility programs are sponsored by company members of the Division and the SPI Urethane Safety Group. The Division will sponsor its 18th Technical Conference on "Cellular Plastics in Transportation" at the Hotel Pontchartrain, Detroit, Michigan on October 6, 7 and 8* During this time, there will be talks by auto motive and industry representatives on cellular plastics in automobiles, trucks, aircraft, trains and subways. Bert S. Montell SPI-22335 Page 24 FLUOROCARBONS DIVISION Saul Ricklin, Chairman Bert S. Montell, Staff Fluorocarbon processors and material suppliers of the Fluorocarbons Division convened at their Annual Meeting in Key Biscayne, Florida on March 12, 13 and l1* of this year. At three morning business sessions, specialists discussed "Fluorocarbons In Chemical Applications;" "Expanding The Markets For Fluorocarbons In Lined Pipe Applications;" "Fluorocarbon Applications In Europe;" "Fluoro carbons In The Atmosphere;" "Requirements of The Environmental Protection Agency;" "Anti-Trust Regulations and Requirements" and "Services and Programs of U.S. Department of Commerce Overseas." Consideration was also given to undertaking a Processors Survey as well as a second Labor Survey sponsored by the Division. Technical activities include work on TFE glass cloth; unsintered tape; dispersion coatings; TFE lip seals, and Fluorocarbon lined pipe. At the Annual Meeting, Saul Ricklin of Dixon Industries Corp. was elected Division Chairman with Bill Huber of Modem Industrial Plastics being elected Division Vice Chairman. These gentlemen are serving a two year term effective June 1. The Semi-Annual Division meeting is being held at the Marriott's Lincoln shire Hotel, Lincolnshire, Illinois on November 5-7, when industry and government specialists will discuss matters of direct interest to fluoro carbon processors. Bert S. Montell June 26, 1975 SPI-22336 ORGANIC PEROXIDE PRODUCERS SAFETY DIVISION G. A, Schultz, Chairman J. p. Carroll, Staff The Division held Its last meeting in Washington, D. C. during the Annual Reinforced Plaatlcs/Composltes Institute Conference in February. The Division has published three safety publications which are available from SPI upon request. They are: Hazard Classification System, Toxicity of Organic Peroxide and Fire Protection Bulletin #19 on the Storage and Handling of Peroxide in the Fabricating plant. In addition, a safety poster on the Safe Handling of MEK Peroxide has been made available to all those who request it free of charge from the Division. The Resources and Standards Committee Is continuing to develop representative test methods In refining its hazards classifications data. This activity is necessary for the OPPSD's continued liaison vlth such organizations as the National Fire Protection Association (NFPA), U. S. Department of Trans portation (DOT) and the United Nations (UN) Comalttee of experts on the handling and transportation of Organic Peroxides. These efforts are on a continuing basis as the Division feels it must assist all private and public agencies to better understand the hazards related to organic peroxides. The next meeting of the Division will be held in the latter part of August or early September 1975. J. P. Carroll 7/3/75 Page 26 .1,'..' K DIM i1'0 \ 1 !T.:;TOT.:i LIV".'. II. '"iarc, Chairman Charles L. Concit, 5taff The 7th 'eetlng of the TTi1' Division '^a.e held in Dearborn, "icb on Ilav CD, 1075 with an attendance of 35 persons representing formulators, base material producers, suppliers and SPI. The excellent attendance stimulated fine participation and action on the various points considered. business handled included well prepared reports on intrim action within the various committees which included: MARKETING committee by Lloyd Dixon, Chairman (Hysol Divn. Dexter Products (1) Expansion of the number of Committee fTembers (2) Reactivation of the Statistical Reporting Program (3) Results of Marketing Questionnaire recommended at last meeting. (4) Announcement of additional Marketing Purveys to be taken with Committee and TRF members. of T"-ST METHODS COMMITTEE by Janes Hornberg,, Chairman ?rie- t?.f Sub-Committe Had met in Dearborn the two days preceding the TRF meeting, on May 28-29, 1975. Most of one day was spent in a study, discussion and formulation of recommendations to TRF for up-dating the important Hazardous Labeling procedures. The Committee identified 16 Governmental agencies and other Regulatory groups which can affect the movement of plastic materials via Common Carriers and especially Air Carriers. The Committee members presented an effective report to TRF on the current status of these regulations following which the TRF agreed to participate, cooperate and consider further SPI part icipation and counsel at the next meeting. This sub-committee also considered and reported on its important work in the area of New and Revised Test Methods. TECHNICAL COMMITTEE, by Ralph Brown, Shell Chemical Company and Jim Ilornberg, Hysol Division, Dexter Prod. Following his recommendation at a previous meeting and the action taken by the Committee since that meeting, lt/&reed by the Chairmen of both committees that, since much of the work of the Test Methods Committee and the Technical Committee overlaps and Is inter-related that these two committees be merged and known as the Technical/ Test Methods Committee in the future, following Rrown's recommend ation that Hornberg serve as Chairman of the combined committee. Hornberg agreed and Chairman Wiard accepted a motion which was duly seconded and passed unanimously effecting this merger. SPI-22338 Page 26 - a ruT3LRSHIP C0~T'ITT-L Robert J. t'edb^T-", Allied Chemicals, Co-Chs ir'-an The Co-Chairnen of t;.e Membership '"ammittee, "'ob Hedberr and Tom Lawler of CI^A-CLJCY have continued making personal con tacts with prospective members in the past. A'ith the increased activity in the Hazardous Labeling situation and the Statistical Reporting etc. it may be timely to continue the work of this Committee arrressively. NATIONAL PLASTICS FOR TOOLTNh CO'"'ITTEE Tom Jackson, Ford ^otor Co. Chairman. This committee held its final neetinr at Dearborn the following day, Kay 31 and handled details for the program of the 16th Annual Flastics for Tooling Conference scheduled at Purdue TTniveraity on June 10-11-12, 1975. Note: The Conference was held as planned with 128 in attendance in spite of the difficult current economic situation which tended to reduce attendance. Following the Conference, the group elected to hold the 17th Annual Plastics for Tooling Conference at Purdue during the same week of June 1976. The Annual "llan-ofthe-Year-Award" was presented at the Purdue Conference. OTHER YATTERS Charles Condit Retirement. A special committee headed by Harold C. Jenseth, Acme Chemicals and Eon Wells, i'agnolla Plastics cited Charles Condit, on behalf of the entire membership of the TRF, with a suitable honorarium for the outstanding contribution he had made to this committee over the years. Serving as Secretary and constant Consultant and Counsel to the Chairmen and to all who sought his services and cooperation, Condit has been appreciated. A Special Committee, headed by John TI. O'Connor of Ren Plastics reported on the exploration of the interest of the group in sponsoring additional conferences, workshops etc. in other areas of interest to the group. Contacts with the University of Wiscon sin revealed that they would be willing to work with the group at any time. The facilities at the U. of W. would be attractive and adequate. The group discussed this but felt that it should be held in abeyance due to the current economical conditions. E. H. V/iard, Chairman July 3, 1975 SPf-22339 URETHANE SAFETY GROUP Rusaell A. Kurtz, Chairman Arthur 8* Chiwls, Staff Ifce principal focus of the Urethane Safety Group has been to alert key groups concerned with building construction that urethane foam is com bustible and to Inform them of the safe and proper ways of storage han dling and installation* To accomplish this, the following actions of major significance have been employed over the past 12 months: -- The Executive Director has delivered more than 20 addresses across the country to a variety of both specialized and heterogeneous audiences -- Of considerable recent help in the above activity has been the avail ability and use of a fully developed 96 slide and professionally re corded taped script presentation highlighting the attributes of urethane describing technical research on its combustibility and attendant toxi city characteristics and emphasizing safeguards to be followed in its handling, storage and application* Enthusiastic reception of this pre sentation has required the production of 25 additional complete sets to meet the demand for it nationally on a loan basis* -- In addition to the FTC required notifications to tens of thousands of i persons of the combustibility of cellular plastics used in construction through the well-known Appendix B, tens of thousands have received copies of the Urethane Safety Group's "Fire Safety Guidelines for Use of Rigid Urethane Foam Insulation in Building Construction" and the USG compiled sunmary of available results from the continuing USG corner wall testing program being carried out at Factory textual Research Corporation* Cbe important consequence of this attention to the com bustibility problem, particularly the dissemination of knowledge gained from the corner wall tests, has been the development and adaption into model codes for the first time of new sections on foam plastics insula tion* -- Bie extensively revised ,lUrethane Plastics - A Status Report" has been distributed to about 350 key publications to serve as background informa tlon for future stories about urethanes* In addition, at every possible opportunity, a copy of this layman-style report is provided for the perusal of any individual who can conceivably be felt to qualify as a "conramity thought leader* ** -- An activity as important as information development and dissemination on a programed basis has been the continuing need for clear definition of and effective response to current and unforeseen problems as they arise, le*, bans on use of urethanes in construction in particular communities, bans on urethane mattresses in public institutions, pro posed bans on urethane seating in public transportation, alleged dire health safety hazards from combustion products of fire retarded foams, petitions to the Consumer Product Safety Commission to regulate against structural foam furniture components, etc*, etc. SPI-22340 Page 27-a URETHANE SAFETY GROUP (continued) Comcunicationfl Program for Fiscal 1975-1976 The Urethane Safety Group Communications Program fbr fiscal 1975-1976 funded up to $105,000 will continue the important dissemination of in formation on safe handling, storage and installation; win emphasize the superior value of urethane foam insulation in energy conservation as well as Its other attributes of strength, versatility, sound absor bency, water resistance and so forth; will attespt to reach many of those in the construction trades who are most lively to start fires during construction or repairs (plumbers, welders, electricians, metal cutters, etc*) with caution on the combustible nature of any bare, ex posed or unprotected urethane foam insulation; will develop a presenta tion with greater asphasis on fire safety techniques for use by fire training Instructors in colleges, training audiences and fire houses, will produce and disseminate a bulletin and press releases covering the results of Factory Mutual's Urethane Safety Group funded tests of thermal barriers for application over urethane foam insulation; will prepare and disseminate bulletins and press releases concerned with results of USG and XII technical research projects on flexible urethane foam; will produce and distribute to the membership an Information bulletin (the Executive Director's memo) on UBG activities and any developments which affect the urethane market. Technical Research Program - Progress Report The study at Southwest Research Institute on the life safety hazards associated with the combustion of flexible urethane foam mattresses and bedding has been completed. A summary report on its findings combined with a summary report on the RAPRA investigations in the same area is in the process of preparation with a near future publishing date anticipated. The USG corner wall tests started and completed this year have been accepted by the Products Research Committee for credit against the call for 1976 re search money. A continuation of the corner wall test program will be funded by the PRC up to about $39,000. Four corner wall tests on thermal barrier coatings for vise over urethane foam insulation were completed. Two of the tests on magnesium oxychloride coating were considered acceptable, one on an Intwescent mastic coating and one on a sodium silicate coating were considered failures. Information received from the National Bureau of Staaiards indicates that a final report on the rug underlay research project will not be available in the near future. SPI-22341 Page 27-b URETHANE SAFETY GROUP (continued) Proposed Nature of 1975-1976 USG Combustibility and Toxicity Research Program At least two more corner wall teste approved for funding by PRC will be carried out at Factory Mutual* The also approved and PRC funded study of combustion products of the foams run in the corner wall test will be continued at Southwest Research Institute* The Oil Insurance Industry Program on insulation of storage tanks will be funded by oil Industry interests and the Cellular Plastics Division*s Combustibility Committee will act as consultants and directors of the program* Of four flexible foam programs proposed to PRC only one, on the Full* Scale Fire Performance of Upholstered Furniture as proposed by the International Isocyanate Institute, was accepted by PRC* The only in* volvement of USG will be that certain members belong to both groups* The involvement of USG in two other programs will depend on their approval by the PRC and the extent of the involvement the Committee will expect of the USG Combustibility Ccnx&ittee. In summary, a much reduced USG Technical Research activity is anticipated in the year ahead unless the Products Research Committee approves additional projects* Arthur B. Chiwia July 3, 1975 Page 28 VLM and ?VC rROJUGURS GROUP Joseph Path, Chairman John R. Lawrence, Staff rhe VCM and PVC Producers Group continues its self-funded activities relating to health hazards associated with vinyl chloride. The Group was not successful in its appeal to have the Supreme Court review the lower court's rejection of the industry's petition to remand the QSHA Standard on vinyl chloride. The Group has prepared a booklet on "What Every Employee Should Know about...Polyvinyl Chloride" to assist in the education of workers in fabricator plants. The Group's major activities during the last six months have involved various subcommittees reviewing preliminary drafts of the EPA's Standard on vinyl chloride emissions. It is expected that the final version of the EPA Proposed Standard will be published by late summer. SPI-22343 Page 29 SPI VINYL DISPERSION DIVISION - -- Frank E. Jones, Chairman Charles L Condlt, Staff This Division held Its 53rd Meeting on May 22, 1975, at the Colony Hotel* Clayton, Missouri, with approximately fifty members In at tendance. Scheduling of the 4th Seminar for April, 1976, was approved and ar rangements will be negotiated for facilities in Callaway Oardens, Fine Mountain, Georgia, for Wednesday and Thursday, April 14 4 15, 1976. These dates are tentative at this time. Sam Rutland of Rutland Plastics and George H. Mead of the Ethyl Corp. have been appointed co-chairmen of this Seminar which will follow, somewhat, the same format as the last Seminar held at Pheasant Run, Illinois. It Is quite obvious, at this time, that part of this pro gram will deal with the subject of VCM from both the OSHA and EFA regulations. We feel that it would be advisable to request, as one of the principal speakers for this Seminar, someone from the SPI Legal Counsel of Keller and Hectaian as we can assume that there will still be a great need for clarification on this matter. SPI/VP/T23 "Procedure to Determine a Plastlsol's or Organosol's Apparent Gelation and Fusion (Hot Melt) Viscosity Characteristics Utilising a TorqueRheometer with a Programmed (Increasing) Mixer Temperature and Oil Heated Mixer Read" is now at the printers and copies will be available shortly for distribution to members. VINYL POWDERS AND COATING TEST METHODS COMMITTEE This comnlttee, which has been formed to establish test standards for the vinyl powder and coating Industry, has progressed nicely and it should be ready to set up a series of round-robin tesclng programs by early summer of this year. NEXT MEETING The 54th meeting of the Vinyl Dispersion Group is scheduled for October 23, 1975, to be held In Washington, D.C., at the Washiaton HILton. It has been suggested that William Ruckelshaus, former Director of EPA, and now with Ruckelshaus, Beveridge, Fairbanks and Diamond, might be Invited as the luncheon speaker. Details for this will be worked out at a later date. SPI-22344 ?^ge 29 - A SPl VINYL DISPERSION DIVISION (cont'd) CHARLES CONDIT One could write many pages on the fine work done by Charles Condit over the years in behalf of the Vinyl Dispersion Croup. His devotion and excellent guidance has been responsible for the continuing interest and growth of the Vinyl Dispersion Group. We are all going to miss Charles and this was echoed at the last meeting and reception given by Mr. Dan Edwards in Charlie's behalf. We will always be ever so grateful for the dedication Charles has given for all of us. Frank E. Jones July 1, 1975 SPl-22345 VINYL FILM GROUP Jack Paras, Chairman. Bert S. Montell, Staff There has been no activity within this Group since the last Board report. SPI-22346 Page 31 SERVICE COMMITTEES COMMITTEE ON RESIN STATISTICS (CRS) ROBERT UNTERflEINER, CHAIRMAN A. J. EVANS, DIRECTOR Resin producers currently contributing to the SPI's Resin Statistical Program number 117. One hundred twenty six representatives representing 62 SPI producer companies are actively working to develop meaningful, timely and accurate resin statistics. This does not include representatives from the trade journals sod government. Work is also continuing to persuade those few known resin producers who are not submitting data to Ernst and Ernst to participate in the program. 1975 Accomplishments a) For the first time, s major market survey will be inaugurated for each of the major realna currently covered in the monthly statistical program. This survey will breakdown 1974 industry sales data into che following market categories: Packaging Transportation BuiIding/Construction Consumer end Institutionsl Electrical/Electronic Furniture/Furnishings Industrlal/Mschinery Adheslves-lnks-Coatings b) A new monthly latex materials survey will be initiated in 1975. The first report will also reflect annual data for 1974. This la the first attempt to provide statistics for this l?-2 billion pound latex Industry. c) An annual urethane foam end-use survey covering 1974 will be instituted this year. Longer Term Goals a) Initiate discussion of a viable statistical program at the processor level. b) Development of a position paper on the need for a geographical resin survey. c) Develop a quarterly engineering resin report in 1976. SPI-22347 COMMITTEE ON RESIN STATISTICS (continued) Page 31-a Our current statistical program is now accepted aa the official source of reatn statistics by the trade press, consultant firms, and government agencies. More and more magazines, newspapers, studies, and reports refer to the SPI data. The fifth annual meeting was held at Colonial Williamsburg with record attendance and continued high interest. This is particularly significant in view of the current economic environment and the wide support given the program by the industry. Robert W. Unterrelner June 25, 1975 SPI-22348 Page 32 COORDINATING COMMITTEE ON CONSUMER SAFETY J. A. Blair - Chairman J. P. Carroll - Staff The Committee has met once since its last Board Report: April 21 * 1975, Washington, D. C. Since that time, the following activities have been carried out: Research Combustibility - National Bureau of Standards - 6 Associates - Mrs. Alma Coats* Hooker Chemical, began a two-year period at the National Bureau of Standards on February 15th. Four of the current associates will be leaving within the next six months, they are: Mr. Howard Adams-Monsanto, Dr. Marts Meisters-Celanese* Mr. John Schuhmann-Dow* Mr. Don Schaulling-Amoco. Those remaining at the Bureau will be Mrs. Coats and Mr. Lowell Perklns-Du Pont. The Committee is attempting to fill the vacancies as they occur in order that a six-person contingent will remain at the Bureau. Toxicity & Smoke (material evaluation - primary method AMICO Smoke Chamber) - Southwest Research Institute - Program completed. Final report due momentarily. - National Science Foundation - Research Applied to National Needs (RANN) - University of Utah: PAC has again agreed to fund this effort. The $29,000 (75-76) total for three-year' period $107*000. - Federal Aviation Administration, cooperative SFI-FAA Program* Atlantic City and Oklahoma City - materials which are used in coanerclal aircraft interiors are screened. Future Effects - University of Michigan, Animal Toxicity Survival Response S?l - $40*000; MCA - $40*000 - approximately two-year program Technical Public Affairs: SPI 4th Annual Combustibility Symposium was held on April 22nd and 23rd at the Park Sheraton Hotel* Washington* D.C. Record attendance: 150 delegatee 79th NFPA Annual Conference May 12-16, 1975* Chicago* Illinois For the first time SPI was able to have a forum for the Conference delegates on Plastics. Plastics Information Exchange Center - 300 to 500 people attended -V. SPI-22349 COORDINATING COMMITTEE ON CONSUMER SAFETY Pag* 32-A Regulatory Liaison - continue to involve all members of the Conlttee with a vast number of organisations such as ASTM, ANSI, NFPA and ISO Committees In addition to working closely and cooperatively with various federal agencies. Systems - $4,000 program to overview Che fire detection and suppression system from a research and demonstration standpoint. There are 20 SFI divisions, sections. Institutes and councils represented on the FAC-CCCS Coumittee. This coordinated effort bee resulted in a more unified Industry group when addressing consumer safety problems. J. P, Carroll 7/3/75 SPI-22350 COMMITTEE ON DISTRIBUTION Page 33 S- N. Cincotta, Chairman J . I.. Cahn, Staff Director The previous report of Committee activities was dated January 23, 1975. Since this last report the Executive Board convened in Tampa, Florida on January 15, 1975. This meeting was in preparation of plans for the upcoming Annual Meeting in May of 1975. The agenda of the Executive Board included reports from all Sub-committee Chairman as well as an indept review by the VCM/PVC Study Group. The 1975 Annual Meeting of the Committee on Distribution was held at the Lodge of the Four Seasons, Lake of the Ozarks, Missouri. The Executive Board met on May 20th. The full Committee meeting was called to order on May 21st and adjourned at the close of the business meeting on May 22nd. It was the consensus of the membership that the Annual Meeting was highly successful. The program included the participation of top executives of all major rail equipment suppliers. Mr. William F. Black, U. S. Federal Railroad Administration also made a major contribution the seminar discussion which included the following items: 1. Head Shields VCM Tank Cars 2. OSHA PVC/VCM Standards 3. VCM Gauges 4. Construction Forecast: Equipment Availability 5. Update on Hopper Car Mileage Allowance 6. OT 5 Update The Committee was also fortunate to have Dr. Michael Schiff, Director, College of Business and Public Administration, NYU give a presentation on "Accounting for Physical Distribution". His talk was very well received and sparked lively questioning from the floor at the conclusion of his presentation. This portion of the program was a genuine learning experience directed by one of the most respected contributors to the field of Physical Dis tribution. The following standing Sub-committees comprise the activity and direction of the Committee on Distribution. 1. Distribution Costing Methods 2. Rail Car Utilization 3. Program - Education v SPI-22351 COMMITTEE ON DISTRIBUTION - Continued 4 Membership Page 33-a 5. Marine Distribution (Newly formed Sub-committee) In addition to the standing Sub-committees the following Study Groups continue to provide major input to the Committee: . Metrication Study Group, PVC/VCM Study Group We believe that the Committee on Distribution is an active working and responsive part of SPI. This was evidenced by the very successful coordination of industry efforts to define and regiment the uniform application of OSHA PVC and VCM standards in the areas of Transportation and Distribution. This was done with the full cooperation of Government Agencies as well as the full participation of the SPI membership. The Committee looks forward to continuing the work of the standing sub-committees as well as embarking in a new area of Physical Distribution through the newly established Marine Distribution Sub-committee. S. N. Cincotta June 26, 1975 SPI-22352 Page 34 FINANCIAL MANAGEMENT COMMITTEE FINANCIAL MANAGEMENT COMMITTEE O. L, GRAF, JR.. CHAIRMAN A. J. EVANS, STAFF DIRECTOR The Executive Committee met on February 7, 1975 in Chicago to review activities and programs. An Ad Hoc Cocmittee met on March 13 and April 10, 1975 to appraise the objectives and programs of FMC. The thirty-sixth edition of the Labor Survey conducted under the Subcommittee Chairmanship of Claude S. Farrell, Jr. was relessed in February. An effort was made in this survey to provide more detailed data for the Chicago area and specific regions on the west coast. Salary Survey No. 9 was conducted under the Subcommittee Chairmanship of John Wines. It wss released in March. The format of this survey was changed to simplify the presentation of the data and improve its utility. Preparations are in progress for the 13th Financial and Operating Ratios Survey of the Plastics Processing Companies under the Subcommittee Chairmanship, Byron Eddy. Publication is projected for early fall. In reviewing the activities of the Program Committee chaired by Peter K. Sherwood, two activities. Midwest Molder's Management Conference and the FMC.Annual Meeting, were reviewed. Participation in the Western Region Conference was cancelled dtie to concern about the economic climate and ability to logically coordinate a successful FMC meeting with the plans for this conference. The committee will continue its cooperative efforts in planning s part of the October Midwest Conference in Minneapolis, R. Helgeson will serve as the FMC liaison for this effort. In reviewing the plane for the annual meeting - conference of the FMC, it developed that a conflict existed with the activities of the Midwest Holder's Group. The FMC asetlng was cancelled for June, and is now rsscheduled for s mid-Atlantic region site on September 24, 25 and 26. The foregoing program appraisals served to underline the growing conflict in objectives end activities of the FMC and molder management groups. An Ad Hoc Committee was appointed to study this program. Although Staff personnel see no conflict among the various operating and service groups improvement is needed in the coordination of these various activltes at the staff level. As a result of this review, it has been reconusended that the title of the FMC be changed to the Financial and Operations Conmittae. Such a change, it la hoped will give a clearer indication of the role of the committee within SPI and its membership. - SPf-22353 FINANCIAL MANAGEMENT COMMITTEE (continued) Page 34-a The role of FMC as a primary initiator of conference* and seminar* will be de-emphaslsed and it* role a* medium for the generation of financial and operating statistic* will be expanded. Gy L. Graf, Jr. June 25, 1975 SPI-22354 Pur*' '<'j FOOD/ DRUG AND C3S.-.2 r .. PACKAGING materials cc.--.-^ Karl A. Kochschwender, Chairman charges L. Condit, Staff The Committee held -:s meeting m Washington, D.C., on June 19, 197S. A - = u -.ime the members of the Committee were again brought up-tc-oute on the latest developments in government reguia c_ :',n of the use of plastic materials for the packaging cl io cu-, drugs and cosmetics. The high light of the program was a presentation by Mr. Richard J. Ronk of FDA's Division of Food and Color Additives. In his comments Mr. Ron.< provided some insight into the FDA's long-range thinking about the regulation of food packaging. There is a growing awareness in FDA of a need for a comprehensive review of the food packaging regulations to make them more understandable, meaningful and enforceable. Mr. Ronk went so far as to suggest that in some instances food packaging materials may even be subject to over-re gulation. He invited the cooperation of industry in general and SPI in particular, should FDA decide to move ahead with a review of these regulations. Such a review might take as long as ten years. In the more specific area of future regulation of PVC for food packaging Mr. Ronk indicated that FDA had completed a statistical analysis which led them to conclude that an analytical procedure with a sensitivity of approximately 50 ppb would provide a sufficient margin of safety for a regulation that will require all PVC used for food packaging to show no detectable vinyl chloride extraction into food simulating solvents. Drug Packaging Material Subcommittee A cooperative study with the Quality Control Section of the Pharmaceutical Manufacturers Association, with the goal of obtaining generic clearance of high density poly ethylene for drug packaging, is now under way. The Sub committee is providing liaison with that section of PMA and is compiling a list of typical additives which may be present in bottle grade polyethylene resins. The success of this study will determine whether similar work should be done with other resins. SPI-22355 ^dical Devices Standards Subcommittee ~"-s Subcommittee1 s efforts have stimulated the formation s-d activity of several groups within ASTM concerned with -e development of standards for medical devices. Through ~s Chairman, the Subcommittee is represented on the Steer'-g Committee of ASTM Section D20.24.03 on Medical Plastics. r'is allows for a constant liaison between the FDCPMC and '''at ASTM Section. ^ibcommittee on Food Additive Regulation of Furnace Black T^is Subcommittee reports that there does not appear to be Efficient interest in support of an extensive industry effort to obtain a food additive regulation to permit carbon '"ack in plastic food packaging materials. Such an effort ''Aild require the expenditure of funds which do not appear Vr be available at this time. As a result of this review v>e Subcommittee was discharged at the meeting on June 19, -*75. The Subcommittee's Chairman did suggest, however, '-''-at there may be a limited interest in carbon black for 'xte in plastic pipe and recommended that this would be a Vtoper area of concern for the SPI Plastic Pipe Institute. ffrA Regulations under Freedom of Information Act Pursuant to the FDCPMC's decision of January 22, 1975, a d/'aft of "A Guide and Introduction to Understanding the Public Information Regulations of the Food and Drug Ad ministration" has been prepared by SPI's Counsel. This draft has been referred to the FDCPMC's Steering Committee and the Lawyers Advisory Subcommittee for review. Hopefully, * final version will be ready for distribution by the time of the next meeting of the FDCPMC. ?iie next meeting has been scheduled for December 10, 19 75. Karl A. Hochschwender July 2, 1975. i'age 36 ic.iC CGKMiTTEES INTERNATIONAL COMMITTEE: '/iiliam F. Christopher, Chairman A. j. Evans, Staff Director On April II, 1975, I appeared oerove the United States International Trade Commission with Peter Nemkov, SPI Legal Counsel, and presented testimony for the plastics industry in regard to che multinational trade negotiations nov getting underway. Data and interpretation was provided as international competitive conditions, trace trends, and the effects on our industry of tariffs and non-tariff measures affecting trade. Interpretation was provided on the probable effect of changes in tariff and non-tariff measures on US. production and sales of plastics ana resin materials, and on plastic products. Our testimony was coordinated with MCA, 50CMA, and OCITA groups. SP1 was commended by che Cotxnission for the thoroughness and the quality of its testimony. Directors are urged to read either the complete written testimony or the shorter, summary oral statement. Additional hearings on the crade negotiations are now being held by the interagency Trade Policy Staff Conmittee. SPI is not planning to testify. ISAC 8, Plastics and Rubber, has completed its information and policy paper to be used as a reference document by government during the negotiations. ISAC members will work as industry liaison and reference sources for government during the negotiations. Seven members of the International Conmittee are members of the ISAC, and I serve as co-chairman for plastics. For the past two years the International Committee had been in a 'hold' position, remaining inactive as a committee but "available" when and if needed. A major effort was made, for example, in our Taak Force work supporting first OCITA and then the ISAC; and in developing our ITC testimony. At a June 19th meeting of the committee (our first in more than two years) a task force was appointed to review our situation and to make recommendations to the Board on: 1) Status of the committee (should it remain on 'hold") 2) Possible Committee activities and functions 3) Organizational considerations 4) A program of actions to be taken to discontinue, to maintain on hold, or to renew A task force meeting for this purpose is scheduled for July 9th. Ue would appreciate the thoughts and the guidance of the Board on these matters. William Christopher June 26, 1975 SPI-22357 Page 37 NATIONAL PLASTICS EXPOSITION AND CCIiFF.RENCK r-;; McCreary, Chairman Thomas J. McGrath, Staff In our February 1975 report, we had advised that Robert. T. Kenworthy, Inc., had been rehired as NFE Show Management and that Pat and Bruce Leslie had been retained for NPE Public Relations activity. Since that report, we have completed our selection of all 1976 Show Contractors. The Jacquard Company will supply the electronic registration equipment, The Andy Frain Company will provide show security and protection, and The Andrevs-Bartlett Company was selected as the Show Services Contractor, (drayage, carpentry, rigging, decorating, etc.). During May, 1975* the show prospectus was nailed to all SFI member companies and all previous exhibitors. As of July 9 1975> we have had the following response from exhibitors: Applications for space received -------------86 Total square feet requested --------------- 66,743 Average...................................... .... ......................................... ------ 776 sq. ft. per application Comparison with 1973 NPE.requests for same exhibitors: 1. Requesting additional space for 1976 Show 30 exhibitors - additional 10,670 sq. ft. 2. Requesting same amount of space for 1976 show 42 exhibitors 3. Requesting less space for 1976 Show 9 exhibitors - less 2,450 sq. ft. 4. Requests from companies that did not exhibit in 1973 * 5 exhibitors - 1,420 sq. ft. Net gain over 1973 Show............................. 8,220 sq. ft. (14.5$) The'Operations Committee and the Kenworthy organization are meeting on August 7th for final preparations for the Space Drawing at the Waldorf Astoria Hotel in New York on September 24, 1975. At a June 10, 1975 Executive Committee Meeting, a six question random survey was authorized to be mailed to 2,000 1973 NFE visitors. The survey will be prepared, mailed and audited by a professional survey company. The results of the survey will be used in promoting pre-regis tration for the 1976 NPE, selling exhibit space in Processors Hall and exhibit space in general. Continued/ SPI-22358 Page 37-a The last of the operating sub-committees (Conference) will come on stream with an organizational meeting in February 1976. This committee is being chaired by Mr. Clare Bacon. A. verbal report, updating the status of space sales for NFE/76 will be available for the Lincolnshire Board Meeting. Page J8 PLASTICS W.\STE MANAGEMENT COMMITTEE James Alberts, Chairman John R. Lawrence, Staff During the last half of the 1974-75 fiscal year the Plastics Waste Management Committee (PWMC) received final reports on two projects initiated in 1973. These reports are available in limited copies and will be used as background material in the Committee's future studies: Technological and Sociological Significance of Degradable Plastics (Prepared by School of Packaging, Michigan State University) Recovery of Plastics from Municipal Solid Waste (Prepared by Combustion Power Co., Inc.) The Conmittee has also authorized the National Center for Resource Recovery (NCRR) in Washington, D. C. to conduct studies on the recovery of plastics from municipal solid waste. There are two overall objectives to the project: (1) to demonstrate that plastics in the municipal waste operations and (2) to Investigate identified technical approaches for the recovery and separation of plastics in useable form from mixed municipal solid waste. These projects with the NCRR will be reviewed on a regular basis with the PWMC's Steering and Research Conmittee. Initial plans for an industry technical meeting on the status of plastics waste Issues are being developed for latec this year. SAFETY AND LOSS PREVENTION COMMITTEE Page 39 C. T. Dancer, Chairman J. p. Carroll, Staff The Comnittee met on June 18th and 19th in Houston, Texas. The meeting on the 18th was devoted to projects and activities of the various committees. On the 19th a tour was arranged by Philips Petroleum of their Pasadena Polyethylene Plant. Chairman,Charles Dancer, M & T Chemicals, presented a Certificate of Appreciation to Mr. B. D. Jackson from the Coonlttee and PAC for his two years of outstanding contribution as Chairman of the Safety and Loss Prevention Coonlttee. To-date there have been four fire teats conducted on plastics stored in warehouses. During the week of July 14th and 21st there will be two additional tests conducted on EPS cups followed in Septeafcar by two additional tests on EPS trays and cartons. Currently, there are twelve Fire Prevention Bulletins available for purchase from SPI. This effort has been underwritten by PAC to assist member companies in improving fire protection within the plants. The Committee agreed to consider rewriting the Plastic Safety Handbook and to bring it la line with currently recognised safety and health procedures. The COMlttee has established a new method for determining the safety awards criteria baaed on the OSHA Incident rate. Safety awards will be presented to member companies in tha vary near future and will be publicised In SPI News Briefs. SPI has been contacted by NIOSH regarding tha development of safety documents on Plastics processing machinery. Tha next meeting of the Comnittee will be held in January in Washington, D.C. in connection with tha First Annual Conference of tha National Fire Prevention and Control Administration January 12-14, 1976. J. P. Carroll 7/3/75 SPI-22361 Page 40 TRAFFIC COMMITTEE L. S. Truslow, Chairman Juliette Lang Cahn, Staff In Che six months since the last report the Traffic Comnittee has been involved in two major activities. The first problem was a motor carrier packaging problem resulting from the OSRA regulations regarding vinyl chloride and polyvinyl chloride. As a last minute reaction before these regulations be came effective, the motor carriers proposed that these products could only move in vapor-free containers. This was obviously an attempt to remove the carriers from OSHA regulations by forcing shippers to use impractical containers for the resins. The newly formed Hazardous Materials Subcomnittee successfully handled this matter by presenting a thoughtful statement supported by personal appearances of 10 producers at the hearings. Subsequently a small task force from this group helped the carriers compose a safety bulletin on the regulations and the packaging proposal is now tabled while the carriers gain experience handling the product under OSHA regulations. The other major activity concerns a Petition for Rule Making Procedure which was filed with the Interstate Comnerce Comnisalon on behalf of the Traffic Comnittee. la this petition the Society cited eight separate cases where carriers had attempted to publish ratings in particular areas chat were higher than the nationwide average classification. In each case the proposal was withdrawn or defeated but only after effort and expense by the Society. The ICC agreed that some restraints on carriers might be desirable and has taken formal steps to get some procedural rules established to cover euch exceptions. In addition to these two major activities, the Traffic Comnittee was involved In one way or another in four other cases with the ICC and seven with the motor carrier's National Classification Board. Several new undertakings by subcomnlttees are in the plan ning stage for progressing later this year. Within the Society there has been some expression of interest In forming a Western Traffic Committee, a Process Machinery Manufac turers Subcommittee and an International Traffic Comnittee. All of these have some relationship to the Traffic Comnittee and pre sumably may or may not become a part of it. However, the forma tion of each of these Is not far enough along to determine its proper role within the Society and the Traffic Comnittee is SPI-22362 TRAFFIC COMMITTEE - continued Page 40-a awaiting better development of their needs and goaLs before attempting to define relationships with them. The next meeting is to be held In Houston During January 1976. L. S. Truelow July 1, 1975 SPI-22363 Page 41 APPLIANCE COUNCIL J. Thomas Howard, Chairman Juliette Lang Calin, Staff Two meetings of the Steering Contnlttee have been held since January. An Interest Questionnaire to determine the areas in which the Appliance Council will be active, has been developed and is being distributed to plastics appliance manufacturers and others with a stake in the plastics appliance industry. A meeting La planned after the returns are received. The Appliance Council cooperated with the Furniture Division regarding the Brady Williamson petition. An Ad Hoc Committee of the Appliance Council and Furniture Division was formed and con sensus reached as to the method of approaching this problem. The Sixth Annual Appliance Awards will be presented November 17 in connection with SPE "Plastics in Appliances" NATEC in Louisville, Kentucky. Entry forma are currently being distributed. SPI-22364 Page 42 PLASTICS IN CONSTRUCTION COUNCIL A. J. Barcosic, Chairman Joseph S. McDermott, Staff The Council has been active through individual Committee* and task group projects since the last Board report. Light-Transmitting Panel Committee has rewritten the entire model chapter on plastics for glazing, skylights, exterior veneer and related applications, and submitted it to the Southern Standard, and Basic Building Codes. Subgroups have been alert to protecting the market, in several localities, for light diffusers sad luminous ceilings. Exterior Panel. Insulation, and Assemblies Committee ha* improved the code texts which it successfully processed through all three national model code groups last year. The States most active in fire protection and use of Insulation (Alaska, California, Ohio, etc.) have accepted specific SPI recomnendations. An Interior Trim task force has developed a Technical Bulletin on cellular plastics extrusions used for baseboards, decorative moldings, and similar applications, to Inform users and consumers * the merits of the product. Clarification of the FTC actions' bearlag on such products was s chief objective. Vinyl siding, windows, and exterior accessories were featured in a special issue of Professional Builder magazine. The techadcal and editorial content were developed through several Council ammbers. The audience for this June publication was the entire readership of this largest of building product publications -- 40,000 subscribers. Another 10,000 copies are being distributed through SPI members. Speaking engagements, technical papers, and various articles are being provided on a steady basis to a variety of audiences. The active members and staff are functioning as a Speakers' Bereau for users, architects, regulators, and the fire service. Joseph S. McDermott June 17, 1975 SPI-22365 minutes HIHPTBS BOARD OF DIRECTORS MEETING OP THE SOCIETY OF THE PLASTICS INDUSTRY,, INC.* Williamsburg Lodge Williamsburg, Va. October 2k, 1975 PLASTICS INDUSTRY, INC. 355 Lexington Avenue New York, N.Y. 10017 v (212) 573-9400 \'W i The Society of the Plastics Industry. Inc. 355 Lex>ng?on Avenue New York. New York ' C01 7 ('212)573 9400 SPI BOARD OF DIRECTORS MEETING MINUTES DIRECTORS PRESENT: A. Andrews Frit* Backscheider DeWitt Cheney (Friday Only) M. L. Christensen (Thursday Only) Robert Cook F. Reed Estabrook Jack Flynn Jerome Formo Iver Freeman Robert Gerdes Jack Glatt Charles Grant Robert Halliday James Hearons Barton Hodges Robert A. Hoffer Robert Kittredge (Thursday Only) Leonard Lane Vernon Larson Jean Malone Richard McKibben William Miller Robert Morrison LaVern A. Niedfeldt Donald Pollock (Thursday Only) John Reib Saul Ricklin Clyde Rushing C. Rex Scott Stanford H. Shaw Edvard Slatcher Fred C. Sutro Kenneth Valleskey William Willert Williamsburg Lodge Williamsburg, Virginia October 2k, 1975 Monsanto Company Recto Molded Products, Inc. Allied Chemical Co. Atlas Plastics Corp. Plastic Industries, Inc. Brook Molding Corporation Dow Chemical Company Plastics, Inc. Package Machinery Co. Plastic Moldings Corp. Keolyn Plastics, Inc. Hercules, Inc. Wilson and George Meyer and Co. Owens-Corning Fiberglas Corp. Charlotte Pipe and Foundry Hoffer Plastics Corp. Fabri-Kal Corporation Icore International Union Carbide Corporation B. F. Goodrich Chemical Co. Modern Plastics Co. Johnson Rubber Company Molded Fiber Glass Companies Technical Plastics Corp. Consupak, Inc. Conair, Inc. Dixon Industries Corp. Peco Manufacturing Co., Inc. Phillips Petroleum Co. Shaw plastics Corporation Container Corporation of America USS Chemicals Mastic Corporation Egan Machinery Co. SPI-22367 2 DIRECTORS ABSENT: Walter Becker James J. Coleman Frank Jones Josef Klingler John A. Larkin Charles O'Connell Gerald A, Schulte Samuel H. Smith, Jr Robert Stillinger Eugene H. Wiard INVITED GUESTS: Daniel Burleson Leonard Cohn Robert Ferrante Robert Forger Martin Haley Harold Holz Richard Moore Matthew Swetonic SPI STAFF PRESENT: Lloyd Darden William Dirzulaiti* Ralph L. Harding, Jr Jerome H. Heckman Ieura E. Jones John Lawrence Thomas J. McGrath E. S. Nuspllger Robert Sherman Robert R. Tiernan C. R. Titus Mobay Chemical Co. ICI United States, Inc. Michigan Chrome & Chemical Co. Janler Plastic Mold Corporation W. R. Grace & Co. Gulf Oil Chemicals Co. Noury Chemical Corp. Van Dorn Company Crown Molding Co. Ren Plastics Martin Ryan Haley Associates Monsanto Company Hill and Knowlton Society of Plastics Engineers Martin Ryan Haley Associates Union Carbide Corporation W. R. Grace & Co. Hill and Knowlton Western Regional Manager Director of Administrative Services President SPI General Counsel Secretary to the Board Technical Director General Manager Director of Public Affairs Midwest Regional Manager Associate Counsel Manager,Government Relations Chairman Scott called the meeting to order at 9:00 a.m. and asked for selfintroductions. Mr. Scott introduced Bill Dirzulaitis, SPI's new Director of Administrative Services and welcomed him to the staff. SP1-22368 - 3- He then aeked for approval of the minutes of the last Board Meeting, which were mailed to all Directors, There being no additions or corrections, Mr. Flynn moved that the minutes be approved, Mr. lane seconded the motion and the Board approved the motion. EXECUTIVE COMMITTEE REPORT Mr. Scott reported that the Executive Comaittee had met on Thursday morning and again at breakfast before the Board Meeting, with all members present except Mr. O'Connell. Mr. Hoffer, as Chairman of the Nominating Committee, was asked to consider a number of candidates for Director at Large to fill the unexpired term of A1 Andrews of Monsanto who has been promoted to other duties within Monsanto* Mr. Scott, on behalf of the Directors, expressed appreciation to Mr. Andrews for his valuable service to the Society. Mr. Hoffer, as Chairman of the Nominating Cosnittee, announced that Ivar Lundgaard, Assistant General Manager of the Plastics Department of E.I.du Pont de Nemours, Inc., has indicated his willingness to serve on the SPI Board, filling the unexpired term of Mr. Andrews, which terminates May 31, 1977. Mr. Hoffer moved that the nomination of Mr. Lundgaard be approved, Mr. Gerde6 seconded the motion and the Board approved the motion. Mr. Scott announced the 1976 Nominating Committee appointments as follows: Robert A. Hoffer, Chairman David Clavadetacher Robert Elliott Jerome Formo William Kennel Robert Kittredge Sam Smith Hoffer Plastics Corp. Prendx, Inc. Pronto Plastics Plastics, Inc, Amoco Chemicals Fabri-Kal Van Dorn Mr. Sutro motioned that the 1976 Nominating Committee appointments be ratified, Mr. Backschelder seconded the motion and the Board approved it. Mr. Scott stated that the Executive Cosnittee had spent a considerable amount of time reviewing the dues policies and the kind of campaign needed to reach the key prospects among the captive operations. These itmes will be discussed in the appropriate Committee report. Mr. Harding and Ik. Sutro called to the attention of the Executive Committee a PAC resolution In which PAC agreed to underwrite some of the SPI legal expenses being incurred la connection with the FDA proposed regulation on FVC in food packaging on behalf of several SPI groups. This expense will be charged to the PAC portion of the SPI legal budget and the Committee agreed to authorize expenditures of vp to $50,000 for this activity. SPI-22369 b The Executive Committee briefly reviewed the staff assignments generated at the September 18 - 19 PAC aeetlng along with the general questions raised by Messrs. Harding and McGrath about the staff workload and proposed new operating units. These Items will also be covered in some detail in the Board Committee reports. The Committee briefly considered several additional items including the staff dinner for Charlie Coadit on November k, Mr. Scott said that all Board members were cordially invited to attend. The Executive Committee agreed in principle to the Western Conference's exhibits and scholarship progran, subject to the proper legal constraints. Mr. Harding discussed the possibilities of SPI sponsoring a plastics exposition in Moscow which will m>st likely be held in the fall of 1977. If any Board member is Interested, Nr. Harding should be contacted. Mr. Scott reported that Mr. Coleman had formally requested that distributors of plastics become Claes I members. The Executive Committee, after studying the bylaws and considering the opportunities and difficulties involved, decided that Mr. Scott should answer Mr. Coleman's letter stating that most distributors are now technically eligible for Class I membership - paying Class I dues. Distributors may also join as Class II members, however, they must pay Class II dues. Mr.HOffer motioned for approval of the Executive Committee Report, Mr, Estabrook seconded the motion and the Directors voted their approval. FINANCE COMMITTEE REPORT Mr. Nledfeldt stated tfaat the finance statement was in the Report Notebook and instead of going over it point by point,if anyone had specific questions, to please contact him after the meeting. The Finance Committee has reviewed the first quarter results and the Committee is of the opinion that if there are Incoming dues from new memberships and if expenditures are controlled, SPI will have another year of positive variance of income over expenses. Mr. Nledfeldt reported that the Finance Committee recommended that the following resolution be adopted In view of the recent successful conclusion of the NPE-IRS action against the Society: BE IT RESOLVED that $553,260 of the NPE reserve fund be transferred immediately to the Directors Special Reserve Fund, with the remaining balance to be transferred to the Directors Special Reserve Fund on or before the fiscal year ending May 31, 1976. Mr. Nledfeldt moved that the above resolution be adopted, Mr. Backscheider seconded the motion and the Board approved it. SPI-22370 s- With the addition of these monies, the Directors Special Reserve Account shows a balance of $1,268,000, which is approximately $350,000 over the minimum desirable reserve and approximately $600,000 under the maximum reserve established at a previous Board Meeting. Accordingly, the Finance Committee recommends that there be no change in the dues rate for Class I members. After a great deal of discussion concerning the present and the forthcoming year, the Finance Cormnittee wished to bring to the attention of the Board and the SPI staff the following very important message for consideration in the future planning and deliberations of the Society. The 1975 - 1976 expense budget was set at $3,600,000. Class 1 member dues cover $3,300,000 of that amount. Looking forward to the 1976 - 1977 fiscal year, it was the collective opinion of the Finance Committee that there will be a minimal 5% increase in the expenses at the present staff level of activity. However, it is very possible that there will be a 15 - 20% reduction in first class dues income. Therefore, it is very possible that a $600,000 to $600,000 gap could exist in the budget preparations for 1976 - 1977. "Therefore, in order to simply maintain SPI services at present levels, we will undoubtedly have to use a significant part of our reserves, but certainly, not to the extent of taking the reserves below the minimum required by the resolution passed earlier by the Board." Mr. Gerdes moved to approve the report of the Finance Committee, Mr. Andrews seconded the motion and the Board approved it. MEMBERSHIP DEVELOPMENT COMMITTEE REPORT Mr. Wiiiert reported that the total membership changes were as follows: New Members 27 New Class I Members 1 Reinstatement 5 New Associate Members 1 New Class IV Member I New Class V Member (Class II) Resignations 42 Class I Resignations 3 Class II " 5 Class III " 1 Class V " Mr. McKibben motioned to approve the membership changes, Mr. Flynn seconded the motion and the Board approved It. ( A copy of the last minute membership change report is enclosed.) SPI-22371 6- - Mr. Willert reported that there are 9** non-responders to the sales information survey. He asked for a motion to suspend these 94 members within the next 30 days. Mr. Willert added that at the last Board Meeting, the non-responders list had some 350 names on it. Mr. Larson motioned that the non-responders be suspended, Mr. Estabrook seconded the motion and the Board approved the motion. Mr. Willert noted that there were an additional 40 companies that were suspended in October of 1974 and are over 365 days delinquent. He motioned that these con^anies be dropped from membership in SPI. Mr. Andrews seconded the motion and the Board approved it. Mr. Willert said that taking into account all the membership changes, the true total of Class I members of SPI at present are 1,059 - the lowest number since 1968. The Membership Development Committee discussed a new dues structure for Associate or Class II members in order to bring them in line with the services SPI renders. Presently, Class II dues range from $100 to $825 maximum. The Membership Development Committee recommends the following changes: Up to $1,000,000 in net sales - $200.00 Over $1,000,000 in net sales 21 cents per $1,000.00 with a maximum of $3,000.00. Mr. Morrison moved that the recommendations of the Membership Development Committee regarding a new dues structure for Associate or Class II members be approved, Mr. Formo seconded the motion and the Board of Directors approved the motion. Mr. Willert displayed the four-page folder which Bob Sherman created for the Molders Management Division to be used for member* ip promotion. The folder was mailed to approximately 3,000 processing companies with sales over $1,000,000. The folder can be reproduced with the same kind of traterial for any other division in SPI requesting it. Mr. Willert noted that the current issue of Plastics World (Buyers Guide) has on the inside cover a full page ad, based on our previous literature using the "one share" theme to promote membership in SPI. Space costs for this page were donated by the publication. The Membership Development Committee also approved further work on a slide presentation for membership promotion to be used at the SPI booth at the 1976 NPE. Mr. Formo motioned to approve the Membership Development Committee Report as presented, Mr. Sutro seconded the motion and the Board voted its approval. SPI-22372 7 PLANNING CCMMXTTEE REPORT Mr. Shav stated that the main topic of discussion at the Planning Committee meeting was the objectives and plans for SPI in 1975 - 1976 and a long-range five year plan. The Committee recognized that the present workload of the SPI staff may be approaching the saturation point. Any additional requests to take on new projects could not be handled effectively unless a very hard look was taken at the duties and function of the present operating units. Some elimination of duties may be made to relieve the staff and allow them to concentrate on new problems and projects that confront the industry. Accordingly, the Planning Comittee requested that the SPI staff, under the direction of Ralph Harding, prepare a review of all the operating units and their functions - what the mission, objectives and scope of each Individual unit are. This will be presented to the Planning Committee at the next Board Meeting in February. The five-year objectives were also reviewed; the Committee concluded that an additional objective should be written to recognize that SPI*s programs must be closely geared to members' willingness to support it. The Planning Committee discussed the question of attracting captive molders to membership in SPI. Messrs. Scott and Harding are planning to talk to some of the key captive processors about joining SPI. As a result of the Cosnittee discussions, the Planning Committee agreed to the principle of offering Claes I membership to captive processors based on the cost of the materials purchased, subject to the development of appropriate eligibility requirements. Prior to commiting this matter to the entire Board at a later time, the Planning Conraittee will first carefully review and agree on the appropriate definitions and legal aspects of what this kind of membership entails. Mr. Shav reported that the Planning Committee heard a report on Third Party Liability legislation and accepted the report(this will be reported on later In these minutes). The Planning Committee requested that the Ad Hoc Committee on Third Party Liability, keep them informed of what steps were being taken regarding this situation. Operating Unit changes and additions were discussed by the Planning Committee and referred back to Ralph Harding and the staff for proper action and for further information before final approval by the Committee. The Committee also discussed expanding the computer mailing list and gave its approval to further study. Mr. Shaw reported on the Plastics Exhibit at the Smithsonian. A report by Harry DeBois was reviewed and the Planning Committee agreed to support the exhibit but not to fund it. The industry will be requested to supply historical machines, artifacts and contemporary products. The Exhibits will be developed and paid for by the Smithsonian workshops. SPI-22373 a Mr. Lane motioned to approve the report of the Planning Committee, Mr. Andrews seconded the motion and the Board approved it. PROCESSORS COMMITTEE REPORT Mr. Gerdes stated that the Processors Committee reviewed the membership promotion program and agreed that SPI literature needs to answer more specifically what SPI does for the processor member. The Committee recommends that more of the brochures like the one promoting membership in the Holders Management Division be used. This suggestion was passed on to the Membership Development Committee. The Processors Committee discussed the proposed lowering by OSHA of the allowance for particles of asbestos in the air. It was agreed that this new proposal needed further investigation by the SPI staff. Data will be developed and submitted to the Committee for comnent before SPI action is requested. The Committee discussed the lowering of plant noise levels from 90 to 85 decibels, and requests that SPI file a statement in opposition, based on adverse economic iopect and/or the lack of evidence of medical need. The question of whether an SPI group fire-liability compensation program should be redeveloped was discussed. The Committee recommended against any effort at this time to reinstitute a national program. The Processors Conmittee requested that the SPI Financial Management Committee develop a new industry survey of statistics on typical insurance costs, insurance needs and range of premiums as a comparison guide for processors. The Committee also requested that a summary report be developed by the Coordinating Committee on Consumer Safety of the Factory Mutual warehouse storage tests for use by the processors in dealing with insurance carriers. This should give an assessment of the current Insurance climate and how these test results can be used effectively. Mr. Glatt motioned that the Processors Committee report be approved, Mr. Backscheider seconded the motion and the Board approved It. PUBLIC AFFAIRS CCMCTTEE REPORT Mr. Sutro, reporting on the activities of the Public Affairs Committee, pointed out that there was a recent article In TIME magazine that is pertinent to the problems faced by SPI. The article states that "environmental disease is becoming the disease of the century." Mr. Sutro read the following excerpts: "According to a spokesman for the National Cancer Institute - Cancer in the last quarter of a century can be considered a social disease, a disease whose causation and control are rooted in the technology and the economy of our society." The article concludes with a quote from Dr. Sellkoff in which he states, "Doctors and environmentalists nonetheless insist that new antipollution laws are essential. What Is an acceptable risk for cancer, says Dr. Sellkoff, "one out of a hundred - more or less? With cancer, any risk is too high." To reduce these hazards even further, Sellkoff and his colleagues are urging enactment of "even stricter new regulations on the nmnufecture and use of substances known to be toxic and better screening to keep those suspected of causing cancer or other illnesses out of the environment." Mr. Sutro SPI-22374 - 9- concluded that industry is operating in an environment in which guilt is presumed until innocence is proven. This attitude irakes the Public Affairs Committee's Job somewhat more difficult. Reporting on PAC finances, Mr. Sutro said that for the first three months of the 1975 - 1976 fiscal year, PAC has been within budget. Mr. Sutro informed the Board that PAC was now functioning under the reorganization established at the last Board meeting with "issue coordinators" established and reporting to the Vice Chairman of PAC, Reed Estahrook. This new system helps focus attention on the key issues facing the plastics Industry today and in the future. Mr. Sutro reported on the issue coordinators' activities as follows: 1. Mr. Kittredge is the coordinator of Energy and Feedstocks. He has requested that an Ad Hoc Committee be established to work with Mr. Flynn's Techincal Committee on putting together a compendium or series of booklets recommending ways to Save Energy which could be distributed to SPI's membership. Such a project would be helpful in launching an Energy Saving program. 2. Mr. Force, the coordinator for Solid Waste, reported to the PAC on the work being done by Keep America Beautiful and the Action Research Model (ARM). ASM is a continuing field test of a beh&viorally based systems approach to the reduction of litter. To date, there are three pilot cities where this system has been tested: Charlotte, North Carolina, Macon, Georgia and Tampa, Florida. The reduction of litter which has been accomplished to date ranges between 61* and 69^ - a significant figure. Other cities are being considered. Mr. Formo will be considering a program or how SPI can promote this program to even more cities and counties. Mr. Ftarmo is also monitoring the work at the National Center for Resource Recovery and he is studying how SPI can work with cities, counties, states to promote energy from solid waste, particularly SPI's continuing policy that the best disposal method known today for scrap plastics is to use the BTtJ's therein. 3. Mr. Hearoms^ the Combustibility Coordinator, has addressed a letter to all SPI operating groups to obtain an up-date of interest in or activity is combustibility programs. Mr. Sutro asked all the Division Chairmen to send Mr. Hearons their thotights on combustibility matters. An Ad Hoc Oonmittee has been approved and established to assess SPI's activities In the combustibility area. They will be determining whether there is any duplication of effort within SPI, whether the interests of the operating units are being served and indeed, whether SPI can presently serve all the interests of its operating units in the combustibility area. This situation will be reported on at the February Itaerd Meeting. SPI-22375 10 U. Mr. Malone, Coordinator for Toxicology, proposed, hut was not yet Strongly recommending, that SPI consider hiring either a part-time consultant or eventually, a full-time staff member in the toxicology area. Mr, Malone asked that an Ad Hoc Committee of Toxicologists be created. These experts would make sure that SPI is doing whatever is necessary in this area presently and they would also plan for the future. 5. Mr. Halliday, the Coordinator of Future Issues, reported on the current developments within OSHA and their consideration of the possibility of lowering the plant decibel limit from 90 to 85. This situation is being monitored very closedly. Mr. Halliday will report at the February Board Meeting on possible other problems likely to be facing the industry from 1976 to the year 2000, Mr. Titus reported to the Board on the current status of deregulation of natural gaa. He stated that the Senate had just voted its approval of an amended bill of deregulation of price ceilings which would probably be opposed vigorously in the House of Representatives. SPI's statement on deregulation of new natural gas was distributed to all involved Senators and Representatives. He said that the Board and SPI members would be kept informed on SPI*a efforts in this area. Mr. Flynn reported on the Research Associate Program at the National Bureau of Standards. The National Bureau of Standards is one of the most influential centers in the United States for fire research with a budget of approximately $6,000,000 for fire research. It is the main technical arm on fire safety for the Consumer Products Safety Commission and other Government agencies. The NBS has a program wherein non-government groups provide professional expert* to work at NBS on programs of mutual interest. Two years ago SPI arranged for 6 research associates to work at NBS in the general area of flammability. Amoco, Celanese, Bov, duFont, Hooker and Monsanto provided the first 6 associates and paid their salaries. Some expenses for laboratory technicians and travel are paid for by SPI. Four of these company member associates have completed their two year participation. Union.Carbide has agreed to provide one research associate leaving three openings. Mr. Flynn stated that an appeal letter would be sent to all the FTC respondents and to the Board to help fill the three vacancies. Most of the monies spent by the participating companies and SPI are credited to the $1,000,000 research fund fbr the Product Research Committee established by the JTC consent order. Mr. Iawrence reported on his recent trip to Scotland to attend an international conference on Fire Safety and Combustible Materials. He was impressed by the vast array of theoretical and applied research being done on a world-wide basis. However, much of the work still appears to be a piecemeal approach to a problem that has plagued man for thousands of years. Mr. Iawrence affirmed that the Ad Hoc Committee on Combustibility, headed by Jim Hearons, would be looking at the total combustibility picture in the months ahead and would try to come up with a realistic program for SPI. SPI-22376 - 11 Mr. Sutro reported on the activities of the Legislative and PR Committee. Presently, the level of bills in Federal and State Legislatures about which SPI must be concerned and about which SPI must maintain very close surveillance and possibly take action at the highest level it has ever been. The Committee has been studying the possibility of merchandizing, through a public relations program, SFI's solid waste efforts and technical efforts over the last U-5 years. In addition, VCM/PVC Producers have allocated $500,000 for Its "Action Program'* over the next 18 months. Mr. Sutro informed the Board that Mr. Moore's report to the Board of Directors, given at the July Board meeting, was available in tunary form for those who are Interested in having a copy. In addition, PAC is already at work on its 1976 - 1977 budget, Mr. Freeman motioned that the Public Affairs Committee report be approved, Mr. Estabrook seconded the motion and the Board approved It. AD HOC COMMITTEE OH THIRD PARTY LIABILITY REPORT Mr. Larson reported that the Ad Hoc Committee on Third Party Liability (consisting of Messrs. Backscheider, Freeman and Larson), appointed by Chairman Scott, held its first meeting and reviewed the status of Senate Bill 20l8 and the amendments sponsored by the Machine Tool Builders Association. It was agreed by this Committee that SPI could not support Senate Bill 2018 as written or the amendments of the MTRA. The Committee deplored the escalation of the third party liability suits and feels that there must be some common ground that SPI can support. It was felt that, presently, a great deal more political Intelligence on how Inevitable the passage of a bill like S 2018 was before any proposal could be made by SPI which would have any impact. Therefore, the Committee requested that Martin Ryan Haley and his organization investigate the status of S 2018 to find out what the time table was on its coming before Congress and what its chances are of passage. The bill is not an immediate threat, but will probably come before Congress at a politically more opportune time in 1976. Mr. Larson said that the committee would continue to study and monitor the situation and report to the Board at the February Board Meeting. Mr. Gerdee motioned to accept the report of the Ad Hoc Committee on Third Party Liability, Mr. Flynn seconded the motion and the Board approved it. LEGAL REPORTS Mr. Heckman reported to the Board on the following situations: 1. Regarding the VCM/PVC situation -- The Food and Drug Administration had granted SPI an extension of the deadline date to December 12 to file conraents regarding FVC in food packaging. SPI-22377 12 - The FDA has written to the Health Research Group effectively denying their petition, but stating that part of the relief they were seeking will be granted in the course of the rulemaking. Special SPI committees have been working on all of the technical aspects of this problem. The first draft of the SPI comments has been circulated. In addition, SPI intends to wake a very strong argument against the Food and Drug Administration taking Jurisdiction over plastic pipe. The Environmental Protection Agency's standard on VCM is due to be released any day now.. Hr. Ruckelshaus and the VCM group is trying to get the new Clean Air Act in the Senate Public Works Committee to read In such fashion that EPA can honestly concede that it takes cost into account in reaching some of its decisions. 2. Regarding the Rastic Beverage Bottle for Carbonated Beverage and Beer Use situation - there are bills to ban non-returnables or non-refillables in state legislatures and at the Federal level. A special situation exists in Massachusetts where a referendum on the subject has been Introduced. It looks likely that the public will have to vote on this issue and decide whether or not to have non-returnables in the state. SPI may have to join with the other industries involved and wage a campaign for non-returnables. This could be expensive. 3* Regarding the 09HA noise level proposal to change the standard from 90 to 65 decibels - OSHA closed the hearing record on September 12. Very good evidence was presented on behalf of remaining at 90 decibels. The decision should be to stay at 90 decibels on the facts of the case, but the 85 decibel level could be adopted for political reasons. U. NIOSH has proposed interim new standards on 11 chemicals. NIOSH proposes to keep the present standards in effect but they have added a new concept called "action level" which is half of the present standard. Eventually, this would mean the need for monitoring, employee training and medical surveillance. At this point, however, the situation is entirely unlike the PVC/VCM proceedings. Mr. Tiernan reported on the proceedings with the Federal Trade Commission's proposed trade regulation rule. On September 22 SPI submitted its list of disputed issues to the FTC, All those who filed disputed issues were industry members with no third parties involving themselves in this matter. The FTC will not order a hearing before the beginning of the new year. Meanwhile, SPI will try to negotiate a settlement with the FTC rather than go through the hearing process. Hr. Tiernan further reported that SPI has been dismissed from the Sunshine Mine case. SPI agreed to settle with the plaintiff for $2,500 on the condition that the plaintiff would neither oppose or appeal the motion to dismiss. The fact that SPI was dismissed from the case will be used as a model in the other cases of this nature in which SPI is a party. SPI-22378 13 - Mr. 3ut.ru move'l that the legal report he accepted* Mr. Andrew* seconded the motion and the Board approved the motion. Mr. Harding informed the Board that SPI is trying to see that overlap between Keller and Heckman, Hill and Knowlton and SPI's Washington Office does not become a problem. Mr. Titus will be monitoring Capitol Hill, and he will maintain routine contacts with many Federal agencies. Keller and Heckman will continue to handle SPI's dealings with the FDA and they will also handle other Government agency matters where there Is negotiation or litigation. Duplication will be avoided by the offices keeping in close touch with each other. REPORT ON K 75-IM DUESSELDORF Mr. Scott and Mr. Harding reported that the K-75 Plastics Show in Duesseldorf was a tremendous and very optimistic show. However, the upward trend in business taking place in the United States has not yet started in Europe. Mr. Harding said that amongst the plastics trade association executives from all over the world and others that he met with,there was a great deal of concern over the VCM/PVC situation in the U.S. They were also concerned about what other materials would be given the same kind of scrutiny. Mr. Harding thought that it was very worthwhile to take part in world-wide activities. While Mr. Harding was in Europe he visited the Glahe Organization, which would be setting up the proposed plastics show in Russia. He was very impressed with their organization. If SPI decides to sponsor this show, it would be the first plastics show in Russia. SPE Mr. Holz reported on the activities of SPE. SPE held a successful PACTEC meeting in Las Veg&s which was attended by Lloyd Darden. A slide presentation is now available explaining what SPE is and Its activities. Mr. Holz stated that while at the Duesseldorf fair SPE representatives had an opportunity to meet with members of the entire engineering society of Germany. During his trip to Europe, Mr. Holz personally visited SKI sections in the Benelux countries, Switzerland and France. He emphasized that SPE was truly an international organization. He said that SPE would like to actively support the SPI PAC effort in a more orderly fashion and asked that the PAC appoint a PAC member (who might also be an SPE member) to act as a liaison between SPE and PAC. Mr. Forger stated that his attendance at the Planning Committee meeting was worth while from the point of view of seeing how other associations approach their problems. SPE is being asked by Government agencies, Congressmen, and Congressional Committees for comments and information. Mr. Forger thought that many of SPE's activities and problems are closely related to SPI's and that there is room for further cooperation between the two societies. SPI-22379 - 1U - > OPERATING UNIT REPORTS Plastic Pipe Institute Mr. Badges stated that the PPI was a financially strong organization and at present were facing two serious problems: The FDA-VCM situation on potable water pipe and the fire, smoke, toxicity issue pertaining to all plastic pipe systems. Committees have been formed, and they are working diligently on these two problems. Machinery Division Mr. Reib thanked the Board on behalf of the Machinery Division for the swift reaction to the problem of third party liability. National Plastics Exposition and Conference Mr. McGrath reported that on September 24 the space drawing was held for the 1976 National Plastics Exposition. A total of 296 companies drew space - an ll<jt increase over the 268 companies who drew space for the 1973 Show. A total of 251,000 square feet were drawn,topping the record of 243,000 square feet for the 1973 show. 107 companies who participated in the 1973 show have taken Increased space. Forty-four companies who did not exhibit in the 1973 show have drawn space for 1976. In addition, a number of resin producers will once again be participating including Union Carbide, DuPont, Allied Chemical and Cosden Oil. NEW ACTIVITIES Eastern Section Mr. Shaw reported that the Eastern Section held its first meeting in New Jersey on September 24. The feedback was that it was a good meeting and the Section is off to a good start. The next Annual Meeting of the new section will be in Atlanta in October of 1976. Washington Office Mr. Titus reported that good progress was being made in establishing the "presence" of SPI in Washington. Many contacts continue to be made in Congress, with Congressional staffers, with the Chamber of Commerce and with the Washington representatives of SPI member companies. FUTURE MEETING DATES Ms. Jones reported on the following meeting dates for the Board of Directors: The next Board meeting will be held on February 11 - 13, 1976 at Innisbrook. The Annual Meeting and Board Meeting will be held in Washington, D.C. on April 5-7 at the Mayflower Hatel. On July 27 - 30, 1976 the Board will meet at Del Monte SPI-22380 - 15 - Lodge, Pebble Beach, California. On October 27 - 29, 1976 the Board Meeting will be held at John's Island, Vero Beach, Florida. The 1977 Annual Meeting will be held in Washington, D.C. at the Mayflower Hotel, March 20 - 23, 1977. ANNUAL MEETING PLANS Mr. McGrath reported on the format for the Annual Meeting on April 5 - 7 in Washington. On Monday, April 5 there will be a Finance Committee meeting and an Executive Committee meeting. Monday afternoon the full Board will meet. Tuesday morning the Annual Meeting will open with a breakfast meeting with & speaker to be followed by a panel session and then the Congressional briefing. Tuesday afternoon will be spent on Capitol Hill visiting Congressmen and Senators. The reception on Tuesday evening will be held on the Hill in the Caucus Room of the Cannon Building, On Wednesday, April 7 there will be a breakfast session which will be followed by the Annual Business meeting and the 7th SPI Annual Meeting will close with a luncheon session. The first notice will be sent out within the next few days. Mr. McGrath said that the SPI staff will make all the appointments for the Congressional visits. Mr. Nuspliger reported that the outline for speakers will be as follows: at the Tuesday breakfast meeting there will be an administration speaker talking on the subject of energy and how it effects our industry. The Tuesday morning panel will cover the three issues of solid waste, combustibility and toxicity. The panel will consist of three key industry representatives who are experts in each field respectively opposite three individuals from outside the industry who have knowledge and/or Influence on the three topics. This year there will be a more thorough briefing with a luncheon and there will be more time for the Congressional visits to the Hill. At the Wednesday breakfast, the plan is to have a leading political figure as the speaker. At the luncheon on Wednesday there will be a top Washington conmentator/homorist as the speaker. NEW BUSINESS Mr. Morrison informed the Board the the United States was the only country in the world where lawyers can collect contingency fees, a fact which creates problems for the smaller manufacturers and *ii others who can be sued. Mr. Morrison suggested that all associations who have a stake in this issue might campaign to eliminate this problem. He thought that SPI should study the problem, find out what other associations were doing about it and take a position on it. Mr. Harding stated that this was a very broad issue, affecting many segments of society as opposed to those issues where the plastics industry is the primary target. Mr. Harding suggested that Dick Titus would monitor this issue for SPI. He promised to investigate what the Chamber of Commerce, the NAM and other interested associations are doing about this matter and get back to Mr. Morrison with a statue report on this issue. He felt that on the issue of contingency fees, SPI should be part of a larger movement if and when we take a position on this matter. SPI-22381 - 16 There being no further business to transact, the meeting adjourned at 11:32 a.m. SPI-22382