Document 3evbqbz18a4EMVOZbEXaoZgk0

ASBESTOS INFORMATION ASSOCIATION IMS K Sir**. MW, wa&mngton. DC 20009 1202J 223*4085 /- PLAINTIFFS EXHIBIT v &B-3 ( BOARD Or DIRECTORS' MEETING December 9, 1976 Mayflower Hotel Washington, J. C. Pursuant to notice, a meeting of the Board of Directors was held December 9, 1976, in the Mayflower Hotel, Washington, D. C. The meeting was called to order at 9:03 A.M. The 'following Directors were present: Harry Babiion (for William C. Clark) . George Barge w. H. Beasley John H. Chidester Thomas A. Dougherty Dennis S. Eldred William Fassuliotis E. H. Feierabend Guy G. Gabrielson, Jr, Clarence A. Herbst, Sr, John W. Hollingsworth John H, Marsh James J. McHugh (for George Vogel) Joseph T, Mooney James J. O'Dowd . (for J, M, Ciskowski) Robert B. Pilmer Dimitry Poutiatine H. B. Rhodes, Ph.D. (for W. C, Thurber) John Riopelle Kurt Schwarz . _ E. R. Zacharias Astan-Hill Limited ' - Atlas Asbestos Co. Cement Asbestos Products Co. Brunswick Fabricators, Inc. Certain-teed Corp. * Vermont Asbestos r-roup GAF Corporation Abex Corporation Nicolet, Inc. Resinoid Engineering Corp. Dresser Industries (Magcce&r Div.) Raybestos-llanhattan, Inc. National A3sn. of filter Mrgrs., : Monsey- Products Cc. Jim Walter Researc.- Corp. Garlock of Canada, Ltd. Johns-Manville Coro. Union Carbide Corp.- ** . The -Bendix Corporation* Supradur Manufacturing Corp. Molded Materials Co. Also present: B. J. Iwarsson, Abox Corp.; Alfred . Motto?, Supradur Manufacturing Corp.; William H. Vockroth, Monsey Products Co.; R. u. Mereness, Executive Director, AJA/NA; Adrian :.ay, Esq., Alcorn, Jr., Esq. 6 Thomas O'Connell, Esq., Cndwalader, Wickersham s Taft? Richard T. Davis, CPA, Frank C. Frantr r, Co.: and b. j. Piggt Administrative Assistant, AXA/HA. ` seal ' jhm io957 Page 2 Introduction Mr* Daugherty welcomed attendees and acknowledged n*./ directors and other persons representing member companies In the absence of designated representatives. Ko said Mr. Fuicraber.d of Abex Corporation had advised of his promotion within his company and change of address necessitated his withdrawal from the Board* His replacement as Abex representative :.n the Association will be advised. Mr. Dougherty thanked Mr. F-iiieraber.d fotf hist interest and support of the Association in his capacities as director and Executive Committee member. It was announced that Huxley Development Cor?, had joined the Association* Mr. Adam Novak will be the firm's representative in the Association. Minutes * . . On motion, minutes of the preceding meeting, September 3. 197$ were approved as submitted. * - Financial Report Mr* Barge reviewed the financial report for the elerenmonth fiscal period ending November 30,1975. He invited retention to the two major expenditures during November of $12,143 and $8,920 for work in connection with the Association' 3 cons .ruction Industry study and legal-medical research program respectively. Mr. Barge said, cn an accrual basi3, he estimates tnat expenditures and income (including receipts from recent special assessment (I3$> of membership dues) for 197$ would approximate the sams total, i*e*, $369,000 income vs. $371,000 expenditures. Total ircorn- front the special assessment is expected to be $49,100. M:. Barge stated that he expected the Association's net worth beginning balance for 1976 of $57,000 would be essentially the same for 1977 after all obligation's in 197$ are paid. * 4# * As of Nov* 30, 19?$ the Association had total asset: of $136,486; liabilities of $39,134; and a net worth of $97*, :--52. On motion, the financial report was accepted as submitted. - * *ntarnafjn&3L Asbestos Information Conference (1*10 liamburg, ti* Germany,. tJov. 3-5, 1976 1 Mr* Marsh said he would speak to international events of the past 12 years which pertain to the asbestos industry, the establish ment of the International Asbestos Information Standing Crmmittee, the recommended work program of the Committee, the means for achieving this work, and the actions taken at the International Asbestos Information Conference in Hamburg, Nov. 3-5, 197*. lie referred to a number of international meetings beginning in 1964 dealing with the biological effects of asbestos. He said there had been very little if anytJ.S. industry representatives at some off the early meetings but U.s. industry interest 'gan * to change commencing with a meeting in Lyon, France in IS72 following formation of ma/na. He stated at a meeting in Paris hi/W974' attended by himself and the Executive Director, .ma/na, it ' 4 .. JHM 15968 Page 3 was agreed that a continuing international bedy representing the industry should be established. An Ad Hoc working gr>uo was formed to study the mattar and, upon its recommendations, a Standing Committee of International Conference of Asbestos Associations was established on July 9, 1975 with AIA/NA being a charter member, representing the U.S. Mr. Mars a then :**ad excerpts from a report of the Standing Committee's activities in 1975 and 1976 and outlined future work of the Committee as presented at the Hamburg meeting. (Note: A report o:: the Hamburg meeting, including the foregoing report, was forwarded to members by AXA/NA Memo, of 11/24/76.) Mr. Marsh reviewed actions taken at the -Hamburg meeting affecting the newly defined International Asbestos Information Conference and distributed a pertinent report. (Copy attached for-directors not present at meeting.) He spoke or advantages to the industry that stem from the international organization and emphasised the "indivisibility of the industry problem," i.e. , adverse situations occurring in one country invariably impact on other countries . A discussion followed and Mr. Mar^h- provided further assessment of the work and importance of the international body. Mr.- Dougherty expressed appreciation to Mr. Marsh for his excellent report and thanked him for V.is . representation of AIA/NA in the deliberations of the inrernationai group. At the Hamburg Conference Mr. Marsh was designated a member of the IAIC Executive-Committee. . . . . ; * .............* .. * * Association Captive insurance Co. . Mr. Gabrielson invited attention to his letter tc Director:* dated November 12 which addressed the concept of an AIA/MA captive insurance company. He spoke to problems confronting the industry in regard to cancellation of product liability insurance coverage, increases in product liability insurance premiums and higher deductable features. He explained that there is reason to believe that some customers of Association members view the product liability problem as an indication that an impartial judge* i.e..rthe insurance companies, has come to the conclusion that asbestos is a more hazardous material than industry has told them. Unavailability of such insurance could also accelerate the search.for substitute materials . Mr. Gabrielson said the Executive Committee had 'concluded that it might be desirable to contract for a .feasibility study to further explore the concept of AIA/HA incorporating its own captive insurance company. He outlined the concept stating that he was not an expert in insurance matters and suggested the fallowing questions for resolution by the Board: (1) would the directors be interested in a captive insurance company for purposes of obtaining their rospectivo company product liability insurance? (2) do director think that creation of an AIA/NA captive insurance eo.r-pany would bo of interest to their customers, slow the search for alternative materials, and thereby be of assistance In the marketflace? He stated that the Exocutive Committee had recommended that the Association retain a consultant to conduct a study covering the JHM 15968 Pago 4 feasibility and coat of establishing a captive insurance program. A lengthy discussion followed. A motion was trade :o authorize Mr- Gabrielson to act as agent for the Association and engage the services of a consultant to study the feasibility and cost of establishing a captive insurance program. Cc-sc of the study not to exceed $11,200 was approved by majority vote. Mr. Dougherty said every effort will be made to have th-: study completed in time for consideration at the March 1>77 Directors meeting. He proposed the establishment of an insurance committee for liaison with the consultant during conduct of the study. Members having individuals in their respective companies with insurance expertise were requested to submit such names to the Executive Director at the earliest practicable date. Mr. Poutiatine said that J-M's manager of insurance, Walrer ::urtnsr, was availabe to assise the Association on this project. Work in Connection with OSHA Asbestos standards Mr. Gabrielson, Chairman, Asbestos Regulation Ca3k force, said there had been no change in status of OSKA'a proposed revision to the asbestos (manufacturing) standard. The Inflationary Impact Statement (IXS) prepared by CONSAD Research Corp. his not yet seen certified by the Department of Labor. He explained that, while no official word has been received, the delay-in certification continues to make it more likely that the Association' s primary, recommendation of combining the public hearing for propc Jed asbestos manufacturing and construction standards will 'z : affected. . * Mr. Gabrielson reviewed the background and subsequent approval by Directors of a technological feasibility and eccr.cnc impact study for an asbestos standard for the construction industry now being conducted for the Association by Equitable Environmental Health, Inc. (EEH). Cost of total study 'three . phases) is estimated to be $150,000. Phase I (review of'date sources) has been completed; however, it developed that there was not as much data in published literature as was expected. Some of the shortfall of data will be obtained in Phase II through field interviews. He referred to two disappointments experienced in Phase I of the study. Limited success in obtaining basic data from construction contractors was experienced. In an effort to acquire this type of information, Mr. Gabrielson called attention to an EEU prepared survey questionnaire (copy attached) and requested members who sell asbestos-containing products to the construction industry to assist EEH. He suggested that persons in marketing might make contact with contractor customers by telephone to solicit the information requested by the questionnaire. Mr. Beasley suggested that EEH consider advising comparies by letter in advanco of telephone inquiries. Such letter could provide identification of orospective caller and afford the company being contacted `an oooortunity Ho collect the requested information in advance of a telephone cal.. A discussion of the questionnaire followed. Mr. Gabriel:: Page said the gathering of this data was important to the industry as the results could lend support to a recommendation forlimiting the applicability of an asbestos standard for the con struction industry. When data is obtained from contractors it should be telephoned to EEH, (Dr. Philip LeCl&re - (516) 364 8500) Mr. ^abrielson then commented on cooperation received by EEH with the manufacturing Industry in gathering essential information. Ha said a gap existed in data pertaining to the flooring industry. Mr. Gabrielson urged AIA/NA members .n this segment of the industry to supply EEH with the requested, data at the earliest possible date, otherwise, the lack of data ir, this area will have ar. adverse impact on the total effort. Mr. Gabrielson said the Association is deeply indebted -so Dr. Rhodes, Union Carbide Core, and co-chairman of the AIA/NA Ad Hoc Corranittee for Construction, for his selflass and tirele3 contribution to this complex and demanding project. (D:r. Rhodes also serves as chairman of the AIA/NA Standards & Technical Committee.) . A general discussion followed concerning treble:: areas and anticipated results of the EEH study. Revision of Association By-Lawi Mr. Dougherty reviewed the background for which the Executive Committee felt revision of Association By-Laws was m order. He referred to- consideration of this matter at the Jur? 10 and September 8 Directors meetings. He said some adninistrarLvo corrections are necessary, ambiguities exist, and Association rr.embership is now restricted to-one class. A draft revision of the the By-Laws was forwarded to Directors by AXA/NA Memo d^.ted 10/2 2/75 AIA/NA Memo of Nov, 15 advised that a vote on revision 'if the 3y-Law would be taken at the Dec,*9 meeting of directors. Following discussion, and on motion, the proposed revision to Association's By-Laws was unanimously approved, a quorum of Directors being present. Legal-Medical Research Program Mr. Gaorielsen reminded Directors that the primary purpose of the Legal/Msdical Research Program is to improve the: quality of defenses for asbestos companies involved in third party liability suits in tort. Ho exolainedbriefly the specific research work now ongoing in the legal area by Cadwalader, witkershan a Taft and Philip Enterline, Ph.D., University of Pittsburgh, in review of medical literature. * Wendell Alcorn, Esq., Cadwalader, Wiekershaa & Taft, special counsel to the Association was introduced. Mr. Alcorn reviewed his background and interest in asbestos-related litigation cases. iHo said that the asbestos industry has served as a nUi :*a pig * ' - JH>115971 4 Page 6 of American jurispudence wish respect to occupational diseases. He spoke in detail to the liability problem confronting the industry and the history of this orobic * as it has evolved through the courts. Mr. Alcorn said e expected throe or four additional memoranda of law pretired by his office for members and associate members of the ,,egaiMedical Research Committee would be available by Dec. .H. 'Two memoranda have already been distributed.) Reference was made to progress in developing a clearing house of information on asbestos-related cases that have been litigated in the United States to date. Mr. Alcorn spoke to the interface of his work with-that of or. snterline. The Executive Director invited attanticn to ik- list of members and associate \members on the AIA/NA Lega-,'Metical Research Committee and suggested that Association meirz-.rs who have not designated a committee member for purposes ci providing a contact with special counsel should consider doing m by advising the Executive Director who would notify special counsel, in turn. In regard to or. Bnterline's project, Mr. Gabr-elson s lid worn on the bronchogenic cancer portion of the literature review is complete with exception of about 20 German papers new rending translation and review. A large segment of the mesot:.elioma literature review is also complete. Mr. Gabrielson explained that a decision td. include asbestosis in the literaturs revie . had be* made to determine'when this disease was related tc different products/ industries or processes. In addition, the decistar, has been made to include literature review of other types of cancer sometimes related to asbestos exposure, e.g, laryngeal and gastrointestinal. Mr. Gabrielson said Dr. Entari-.ie ha3 completed most Of the literature review for the period 1932-19 53 and" that he estimates the total project is 50% complete. The final product will consisu of (1) complete file of e.ll papers reviewed; (2) critical quotations from each paper; (3) card il^, index with brief summary of each paper;, and (4) a scholarly pepe ;. . Mr. Gabrielson said special counsel had cotcms iced with interviews with various physicians suggested by Dr. v'jill for recocnired knowledge in asbestos-related disease who might qualify as expert witnesses in any injunctive proceeding initc atsd by the Association or in other litigation. It was suggested that two types of witnesses may be required in court case? in order that both condition of plaintiff and state of :he medict 1 art could be addressed. ' 1977 Proposed Budget Mr. Barge reviewed in detail the Association s proposed budget for fiscal (calendar) year 1977. He explained that total dues income for 1977 should be $370,000 to support r :qular operating expenses plus special projects now approve 1 and under- . way or proposed. (Legal-Medical Medical nesci&ren Ptcgrnv -- $25,000; ESH technological feasibility and economic inonet .;U'CL JHM 15972 Page ? . study -- $113,000; captive Insurance Company Feasiblitv Study - $11,200.) Membership and travel associated with the In:arnationai Asbestos Information Conference will approximate $10,00.. The $370,000 figure represents an increase ci about 143 over total dues (including the recent 183 special assessment) paid by members in 1976 which amounted to $323,000. - Mr. Barge- noted that the proposed budget reflected identical totals for receipts and disbursements. He sa:.d he envisioned that the Association's current net cash reserve of about $57,000 would meet the needs of good business practices. ,. Following discussion, and on motion, the Association's budget for 1977 as proposed, was approved. (Attachment; Mr. Dougherty proposed that the following dues formula for fiscal (calendar) 1977 be approved bv Directors: 1. Regular Members . a) Dues for users of raw asbestos fiber will be based on a millage rate of dollar value of asbestos fiber consumed (freight excluded) in previous cal endar yeas, with a minimum of $2,000 per annum. * * . b). Dues for miners of asbestos* fiber will ha on a millage rae of dollar value asbestos fiber sold in North America during previous calendar year wi:h a minimum of $2,000 per annum. The millage rate will be one`ttenth of the rate established for censumer3 of raw fiber. . ' c)' Dues for sellers of asbestos fiber will be $2,000 -per annum, the minimum rate for all mergers. Millage rates will be determined by the Association's Account an-; following receipt of pertinent information from member: obtained j through use of a confidential questionnaire. : ' 2. Associate Members . Dues will be a flat rate of $500 per annum. * . * i ' . .* | ,,7V0l Section 2.03 Associate Membership Qualifications* Any firm or corporation which meetsthe'qualifications set forth in Section 2,01 and is involved i** a secondary - or consumer industry as defined herein is eligible for \ an associate membership: \* A) Secondary Industries -- those industries that continue the manufacturing process uiit zn inter- mediate product (one in which the fiber has previously been modified in a primary industry, and further processest .. modifiee or fabricates to produce either cr - . . 'fWW 15973 4 9 intermediate produst or a finsiehed product; 8) Consumer Tr.dustri** -- those irduetriev that purohase a finished asbcttos-eof't'zinino produet and avply, install, erect or consume the asbeatos+eontaininq product without further physical modification of the product. (By-L*.,Js) Following discussion and on motion, the dues fe rula *9 proposed by Mr. Dougherty were approved. Canadian Situation Mr. Rilmer referred to a recent determination \ / the Workmen's Compensation Board in Ontario relating astes. :os virh gastrointestinal cancer as a compensable disease. He suggested that this ruling might have a significant impact cr. Viirkmer.`s compensation boards elsewhere in Canada and the U.3. Mr. Barge spoke to the recently published repo rt of c:-s Beaudry commission in Quebec. The .three-member commission, heaied by Judge Rdne Beaudry, was named to study health conditions ir. the asbestos industry. The impact that the report will r..vra or. legislation is not known. Se said thus far no public staceminc has been made bythe Government of Quebec as to it3 planned reaction to the Beaudry Report: however, the Report his bean used as a basis for extensive adverse reporting in th press regarding the industry. Among recommendations : r. the Report are t (1) an average permissible lavel of exposure it asbestos dust of 2fp/cc should be established, with certain qualifications pertaining to measuring methods, and (::) employ ment in the asbestos industry be so ruled as to orchil: it the hiring of people who are tobacco users. Mr. Barge sa;.d the report concerns itself with exposure to chrysotile and the statement is made, "As far as crocidolita and amosite -- the committee is of the opinion that the use of these two types : f fiber must be totally banned. No exposure should be tolerated for any worker." Mr. Barge also spoke of the possible impact of recent elections in Quebec and concerns with "nationalization" of the asbestos industry. . Remarks of the Executive director In the interest of time, the Executive Direccc:^ said h* '.would confine his remarks to a brief review of the a:soestos situtation within Federal regulatory agencies, excepting 03t:A which was reported on by Mr. Gebrielson. Zn ERA, current emphasis is on implementation of the new Toxic Substances Control Act. It is* not expecte*: that ^revisions of Act will affect asbestos in the immediate future. Hmohasin e e 21 1 JHM i 597a page ') is directed to chemical substances; epa will make decision bv December 1977 whether to propose standards fcr control of Hasbestcs" emissions from taeonita plants based on current onooincr studies. Revised National Orinking Water Regulations to establish treatment techniques or maximum contaminant levels are scheduled for issuance in May 1977. MESA's Federal Metal and Nonmetal Mine Safety Advisory Committee has recommended change for current Sfp/rnl to .rp/mi with probable effective date lata 1977. Since public advisory committee proceedings were "open", a public hearing on this proposal is not necessary or planned. The newly established Bureau of Mines Metalurgy Research Center, College Parfc . Maryland, involved with asbestos particle identification was discussed. This unit is providing material for `the HSW-NI2H ongoir.? four-year oral feeding study of animals to inveiticace .ngestion of asbestos fiber. It was reported that a report on the petition fj.Ld vith the Consumer Product Safety Commission (CPSC) by Natural. Resources Defense Council, Inc. and the Consumer's Union of the U.S.A., Z/.c. promulgation cf a rule bannina certain asbestos-containing patching compounds is now under review by the CPSC solicitor. aia/KA submitted comments to CPSC on the matters being investigated. Establishment of the new category of associate membership in the Association,provides a means of greater effectiveness in fulfilling the Association's objectives. Directors wece en couraged to make contacts within the industry to advise, of the Association's work, promoting membership in either regular or associate category as appropriate. Upon being advised of possible membership interest, AIA/NA staff will provide follow* up communication . Other Business ' The next regular meeting of Directors is scheduled for March 10, 1977, at Stouffer's National Center Hotel, Arlington, Virginia, commencing at 9:00 A.M. Adjournment There being no further business the meeting was adjourned at 3:12 P.M. k..h. Mereness ; Executive Director (Secretary) December 14, 197$ Encloeures VUM.y 4 J-H /VI 15575