Document 6eY2XVweL3GNVQ0n6qnY3x8g

AGENDA MEETING OF THE MCA BOARD OF DIRECTORS 11:00 a.m. (EST), Tuesday, January 9, 1973 Union Club, New York City I. MINUTES OF THE NOVEMBER 20, 1972, MEETING. II. REPORT OF THE SECRETARY-TREASURER. III. BOARD OF DIRECTORS. (a) Finance Committee - Report of January 8, 1973, Meeting. (b) Support by Directors of their Company Representatives on MCA Committees. (c) Report of Membership Committee: Fike Chemicals, Inc. (d) Regional Meeting - March 12-13, 1973, Houston, Texas. (e) Proposed Research Program on the Carcinogenic Potential of Vinyl Chloride, (f) Proposed Rules of Organization and Procedure for the Transportation Equipment Committee. (g) Proposed Rules of Organization and Procedure for the Transportation and Distribution Committee. (h) Report of the Board Liaison Committee for Environmental Quality and Control. IV. COMMITTEE APPOINTMENTS. V. STAFF REPORT. VI. COMMITTEE REPORT. Labels and Precautionary Information Committee G. Robert Sido, Chairman VII. ADJOURNMENT. (Enclosure) (Enclosure) (Enclosure) (Enclosure) (Enclosure) INext Meeting of the Directors - Union Club, Park Avenue and 69th Street, New York City, February 13, 1973, at 11:00 a.m. (EST). ~~ CMA 069984 i 1392 MINUTES of the two hundred eighteenth meeting of the Directors of the Man ufacturing Chemists' Association, Inc. , held at the Union Club, New York City, Tuesday, January 9, 1973, at 11:00 a.m. There were present: Directors F. Perry Wilson, Chairman H. Harold Bible Werner C. Brown C. C. Candee Herschel H. Cudd Lee V. Dauler George S. Dillon William C. Douce William J. Driver Carl A. Gerstacker James M. Gill John M. Henske H. E. Hirschland Jameis A. Hughes Edward R. Kane Philip F. Kirk Max A. Minnig Robert M. Morris Charles S. Munson Peter C. Reilly Luther S. Roehm George W. Russell Jack B. St. Clair Harold E. Thayer James R. Carnes Alternates: Stanley H. Anonsen (for Harold E. Thayer) Philip B. Dalton (for Jesse Werner) H. C. Hollands (for L. G. Lillico) L. H. Johnstone (for William C. Douce) Gordon Kiddoo (for Donald G. Stevens) James McWhirter (for William P. Drake) Robert L. Mitchell (for John W. Brooks) Clifford D. Siverd (for George W. Russell) General Counsel: Lloyd Symington By invitation: G. Robert Sido, Monsanto Company I. MINUTES OF THE NOVEMBER 20, 1972, MEETING. The Minutes of the November 20, 1972, meeting of the Board of Directors were duly approved as submitted to the members. II. REPORT OF THE SECRETARY-TREASURER. The Financial Report for the seven months ended December 31, 1972, was summarized by the Secretary-Treasurer. ON MOTION, duly made and seconded, it was, VOTED: That the report be accepted and placed on file. CMA 069985 1393 m. BOARD OF DIRECTORS. (a) Report of Finance Committee Meeting of January 8, 1973. Chairman Cudd of the Finance Committee reported that the committee had met on the previous evening to review the financial statement of the Association for the first seven months of the current fiscal year, together with other financial affairs of the Association. The review had indicated that the Association should finish the fiscal year with no greater deficit than the $36,000 which had been budgeted and that experience in recent years provides a basis for hope that the yearend results may find total income at least sufficient to cover total expenses for the year. The Unrestricted Fund balance is $1,239,314, or approximately 6 5 percent of the current year's budget, well above the six months operating expense level which it has been the Board's policy to maintain. The investment program, which was liberalized in 1971, was found to be performing satisfac torily within the approved guidelines. In order to provide for continuation of established financial procedures, the Finance Committee had recommended: (1) That the SecretaryTreasurer be authorized to circularize the membership on or about January 12, 1973, for confidential 1972 chemical sales data to be used in determining membership fees for Fiscal 1973-74 and based upon the Definition of Chemical Sales used for the preceding year; and (2) that the Secretary-Treasurer be Iauthorized to employ the firm of Bond, Beebe, Barton, & Muckelbauer, certified public accountants, to conduct the annual audit of the Association's books. ON MOTION, duly made and seconded, it was, VOTED: That the Secretary-Treasurer be authorized to circularize the membership for confidential 1972 chemical sales data to be used in determining membership fees for Fiscal 1973-74 and based upon the Definition of Chemical Sales as used for the preceding year; and that he be authorized to employ the firm of Bond, Beebe, Barton, &t Muckelbauer, certified public accountants, to conduct the annual audit of the Association's books. (b) Support by Directors of their Company Representatives on MCA Committees. Mr. Thayer invited the attention of the Directors to the lists of their company representatives serving on MCA committees which had recently been forwarded to them by the Secretary-Treasurer. He urged that Directors use the lists to keep in close touch with their representatives' committee activities and problems, advising and supporting them as appro priate, and thereby helping to bring about better committee decision* while Obtaining greater familiarity with committee actions which later reach the Board for consideration. CMA 069986 1394 (c) Report of Membership Committee; Fike Chemicals, Inc. Mr. Candee, on behalf of the Membership Committee, reported that an appli cation for membership had been received from Fike Chemicals, Inc. , of Nitro, West Virginia, and that in the opinion of the Membership Committee the applicant is qualified for membership under the Association's Bylaws. ON MOTION, duly made and seconded, it was, VOTED: That Fike Chemicals, Inc. , be elected to membership in the Association. (d) Regional Meeting, March 12-13, 1973, Houston, Texas. Mr. Carnes reviewed the plans for the Regional Meeting of the Board of Di rectors to be held in Houston, Texas, on March 12 and 13. Entertainment including golf followed by a reception and dinner will be provided by the Texas Chemical Council as hosts on Monday afternoon and evening. The Executive Committee and MCA Board of Directors meeting will be held on Tuesday morning and followed by cocktails and luncheon at which the MCA Directors will be hosts for the registrants. Events on Monday evening and Tuesday will be at the Houston Oaks Hotel which has set aside a block of sleeping rooms for MCA registrants. Invitations with more detailed infor mation will be mailed in late January to Directors and Alternates and to ^Executive Contacts of member companies having chemical manufacturing facilities in Texas. (e) Proposed Research Program on the Carcinogenic Potential of Vinyl Chloride. Forwarded to Directors in advance of the meeting and sum marized by Mr, Driver was a proposal, copy appended as Exhibit A, that a research program on the carcinogenic potential of vinyl chloride be authorized under MCA supervision, the funding to be provided by seventeen interested member companies which had volunteered their financial support. Approval had been recommended by the Executive Committee. ON MOTION, duly made and seconded, it was, VOTED: That the proposed research program on the carcinogenic potential of vinyl chloride, as set forth in Exhibit A, be authorized. (f) Proposed Rules of Organization and Procedure for the Transportation Equipment Committee. Forwarded to Directors in advance of the meeting and summarized by Mr. Driver were proposed revised Rules of Organization and Procedure for the Transportation Equipment Committee, copy appended as Exhibit B, which conform to the approved format for such |'ules under the General Principles Applicable to the Structure and Operations uf Committees. Approval had been recommended by the Executive Committee. ON MOTION, duly made and seconded, it was, CMA 069987 1395 VOTED: That the proposed revised Rules of Organization and Procedure for the Transportation Equipment Committee, as set forth in Exhibit B, be approved. (g) Proposed Rules of Organization and Procedure for the Transportation and Distribution Committee. Forwarded to Directors in advance of the meeting and summarized by Mr. Driver were proposed re vised Rules of Organization and Procedure for the Transportation and Dis tribution Committee, copy appended as Exhibit C, which conform to the recently approved format for such rules under the General Principles Appli cable to the Structure and Operations of Committees, The Executive Com mittee had recommended that the proposed revision be approved. ON MOTION, duly made and seconded, it was, VOTED: That the proposed revised Rules of Organization and Procedure for the Transportation and Distribution Committee, as set forth in Exhibit C, be approved, (h) Report of the Board Liaison Committee for Environmental Quality and Control. Chairman Gerstacker of the Board Liaison Committee for Environmental Quality and Control summarized the recent accomplish ments and current programs of the seven committees operating under the oversight of that Board Liaison Committee. IV. COMMITTEE APPOINTMENTS. The following committee appointments were approved: (a) Food, Drug, and Cosmetic Chemicals Committee. Charles Feldberg, CPC International Inc. Edwin L. Hobson, Shell Chemical Company John A. Korth, CIBA-GEIGY Corporation Jessie Norris, The Dow Chemical Company Gary A. Sunshine, ICI America Inc. S. I. Trotz, Olin Corporation (b) Industrial Relations Advisory Committee. Philip M. Stefanini, Rohm and Haas Company (c) International Trade Committee. T. J. Lengyel, Shell Chemical Company J. Wayne Kneisley, Hercules Incorporated (d) Plastics Committee. Joseph Fath, Tenneco Chemicals, Inc, CMA 069988 1396 (e) Technical Information Retrieval Committee. S. Lamed, Domtar Chemicals Limited Joan L. Gallagher, American Cyanamid Company James R. West, Texas Gulf, Inc. V. STAFF REPORT. Supplementing his written report, copy appended as Exhibit D, which had been forwarded to Directors in advance of the meeting, Mr. Driver reviewed the prospects for legislative and other governmental develop ments as they appear at the beginning of President Nixon's second term and the convening of the 93rd Congress, VI. COMMITTEE REPORT. Chairman G. Robert Sido of the Labels and Precautionary Infor mation Committee reported on the projects and activities of that committee, copy appended as Exhibit E. At the conclusion of his report, Mr. Dauler recommended that, because of its general interest and especially to smaller companies, a copy be furnished to all member companies through their Execu tive Contacts, which recommendation was adopted without objection. There being no further business to come before the meeting, it was unanimously resolved to adjourn. F. Perry l^ilson Chairman of the Board CMA 069989 Proposed Research Program on Carcinogenic Potential of Vinyl Chloride EXHIBIT A Purpose The purpose of this program is to provide scientific information to clarify the status of vinyl chloride (monomer) in reference to carcinogenicity. Project As recommended by an Ad Hoc Planning Group for Vinyl Chloride Research, composed of representatives of eight MCA member companies, the project is to contract for animal test ing research under which experimental animals would inhale vinyl chloride monomer vapor at selected concentration levels and be examined in accord with an agreed-upon testing and examination protocol. Planned duration of the project is three years. According to quotations from Industrial Bio-Test Laboratories, Inc., with which the contract is in prospect, and an allowance for vinyl chloride supply and contingencies, the projected cost is $193,000. Funding Funding commitments have been received from seventeen MCA member companies sufficient in the aggregate to cover the stated cost. Company shares are pro-rated on the basis of publicly announced tonnage production capacity for vinyl chloride monomer plus polyvinyl chloride. Disbursements are to be subject to MCA staff clearance and approval. Supervision The program is to be supervised on MCA's behalf by a Technical Task Group on Vinyl Chloride Research composed of one technical representative from each subscribing company, plus an MCA staff representative to serve as secretary. Administratively, the Task Group is to function under the jurisdiction of the Occupational Health committee. CMA 069990 Manufacturing Chemists Association TRANSPORTATION EQUIPMENT COMMITTEE Rules of Organization and Procedure I. PURPOSES The purpose of the Committee shall be to advise the Board of Directors relative to technical matters concern ing the handling and transportation of chemicals in tank trucks, tank cars, portable tanks, barges and tankers, and to that end in manners consistent with MCA policies and procedures to: 1.1 Develop and recommend technical information relating to the handling and transportation of chemicals in bulk. 1.2 Cooperate with regulatory authorities having juris diction over specifications, design and regulation of containers for the purposes of promoting safety in handling and transportation of chemicals in bulk. 1.3 Investigate causes of accidents involving chemicals transported in bulk for the purpose of obtaining technical information helpful in minimizing their occurrence,, 1.4 Cooperate with other committees and other organiza tions on technical matters relating to the handling and transportation of chemicals in bulk. H. MEMBERSHIP 2.1 To qualify for membership on the Committee, each member shall perform duties for his employer so allied with the handling and transportation of chemicals in bulk as to create a substantial interest in the Committee's program and shall participate actively in it. CMA 069991 2- - 2.2 Membership on the Committee shall not exceed twenty-five (25). 2.3 If a member is absent from three (3) consecutive meetings, without representation by a qualified alternate (See 5.4), the Committee may recommend that the member be dismissed. 2.4 Should the number of qualified applicants for membership on the Committee exceed the number of vacancies, up to five members shall be replaced annually at the spring meeting by vote of the members present. Meeting attendance as shown by the Secretary's records, length of service and participation in Committee activities shall be prime factors in consideration of such action. Members relieved by rotation shall be eligible for reappointment after a two-year period. 2.4.1 A member absent from two consecutive Com mittee meetings without being represented by a designated alternate is subject to immediate rotation on recommendation of the Committee. 2.4.2 A member absent from three consecutive Committee meetings, whether or not repre sented by a designated alternate, is sub ject to immediate rotation on recommenda tion of the Committee. Ill. OFFICERS 3.1 The elected officers of the Committee shall be a Chairman and a Vice Chairman, subject to confirmation by the Board of Directors. 3.2 The officers shall be elected for a term of two years, coinciding with MCA fiscal years. 3.3 If either office becomes vacant, the Committee may elect a successor to complete the unexpired term, subject to confirmation by the Board of Directors. CMA 069992 3 3.4 An officer shall be eligible for re-election for one successive term of his respective office. Thereafter, the incumbent shall not be eligible for nomination to the same office for a period of one year. 3.5 Chairman 3.5.1 The Chairman shall preside at meetings and exercise general supervision over the affairs of the Committee within the general framework of MCA policies. 3.5.2 The Chairman shall be responsible for full reporting at regular meetings of all Committee activities not previously reported. 3.5.3 With the concurrence of the Committee, the Chairman may establish subcommittees to per form specific aspects of the authorized activities of the Committee, define their purpose and scope, appoint their membership and designate the chairmen. 3.5.4 The Chairman shall (to the extent requested by the Association of American Railroads and recommended by the Committee) serve as the MCA representative on the AAR Committee on Tank Cars or other AAR Committees dealing with tank car matters affecting the chemical industry. In the event that the Chairman is unable to serve, the Committee may recommend one of its membars to serve in this capacity. The files incidental to the AAR activities are the property of MCA. For reasons of availability and convenience, these files may be held at a location other than the MCA offices, as agreed to by the Chairman and the Secretary. Disposal of these files will be by mutual agree ment of the Chairman, the MCA representative on the AAR Committee on Tank Cars and the Secretary, subject to the Records Retention Policy of MCA. CMA 069993 4 3.6 Vice Chairman 3.6.1 In the absence of the Chairman, the Vice Chairman shall fulfill all the functions of the Chairman. 3.7 Elections 3.7.1 Elections shall be held not later than April 25 at the Spring meeting in oddnumbered years. 3.7.2 Nominations shall be presented by a threeman Committee previously appointed by the Chairman. Other nominations may be pre sented from the floor by members at the meeting. IV. SECRETARY 4.1 The Secretary shall be the MCA Staff Representative assigned to the Committee. 4.2 The Secretary shall exercise authorities and responsi bilities prescribed in the MCA "General Principles Applicable to the Structure and Operations of Com mittees . " 4.3 The Secretary shall prepare and distribute notices of meetings and agendas of all meetings of the Com mittee and subcommittees and no meeting shall be held in the absence thereof. The Secretary shall also pre pare and distribute minutes of all meetings of the Committee and subcommittees. He shall also have custody of the official records of the Committee and perform such other duties as are usual to his office. V. MEETINGS 5.1 Regular meetings of the Committee shall usually be held twice a year, one in the Spring and one in the Fall, at the call of the Chairman. To the extent possible, these meetings shall be scheduled during the months of April and October. CMA 069994  -5 5.2 Upon reasonable notice, the Chairman shall call a special meeting of the Committee whenever, in his opinion, such a meeting is justified or when re quested by at least seven members. 5.3 A majority of the current members shall constitute a quorum at any meeting. 5.4 A member may be represented at a meeting of the Com mittee or its subcommittees by a qualified alternate, on written notice to the Secretary. Alternates shall exercise all the functions of members, including the right to vote and to be counted for the purposes of determining a quorum. 5.5 Subcommittees shall arrange separate meetings as justified by their assignments, subject to call by uneir respective chairmen and advance notice from the Secretary. These meetings should be scheduled so that the minutes may be distributed to the entire membership of the Committee not less than three weeks prior to the next meeting of the Committee. 5.6 It shall be the responsibility of the chairman of a subcommittee to submit a timely request to the Secre tary concerning any desired modifications of subpara graphs 5(c), (d) or (e) of the "General Principles Applicable to the Structure and operations of Committees" under the provisions of subparagraph 5(g). 5.7 Guests may attend meetings upon prior clearance with the Secretary. VI, SUBCOMMITTEES AND TASK GROUPS 6.1 The term "subcommittee," as used in these Rules, is defined to include task groups and other Committee units. 6.2 Designation of subcommittees as to their membership, purpose and scope, shall be recorded in the minutes of the Committee. CMA 069995 4<3 9 Manufacturing Chemists Association Transportation and Distribution Committee Rules of Organization and Procedure I. PURPOSES The purposes of the Committee shall be to advise the Board of Directors relative to matters concerning the transportation and physical distribu tion of chemicals, and to that end in manners consistent with MCA policies and procedures to: 1.1 Investigate subjects of general interest to the chemical manufacturing industry concerning the safety and technical efficiency of the transportation and physical distribution of chemical products (excluding sales or marketing aspects). 1.2 Study and develop opinions on matters involving principles or policies of wide applicability to the industry, exclud ing any discussion of rates on particular products, for consideration by rate-making or other regulatory bodies. 1.3 Cooperate with other committees, organizations, regulatory bodies, and governmental agencies in these matters. II. MEMBERSHIP 2.1 To qualify for membership, each member's duties for his employer shall include the formulation of policies and direction of programs related to transportation and phys ical distribution. The membership of the Committee shall provide, to the maximum extent practicable, a reasonable balance with respect to geographic location, size of firm, types of products, and other relevant factors. Persons whose principal duties are in the field of sales or mar keting shall not be eligible for membership on the Committee. 2.2 Membership of the Committee shall not exceed 36. 2.3 To the extent that representation is requested on behalf of qualified personnel when the membership is fully comple mented, up to six members of the Committee shall be replaced within each one-year period. 2.3.1 Recommendations for such rotation shall be presented by the Secretary to a Membership Review Board, composed of the Chairman and Vice Chairman, for approval. While serving, the Chairman and Vice Chairman shall be exempt from rotation. f CMA 069996 2 2,3.2 Length of service on the Committee, meeting attendance and current participation shall be prime factors on which to base rotation recommendations. 2.3.2.1 A member absent from two consecutive meetings without being represented by a qualified alternate will be recommended by the Committee for immediate rotation. 2.3.2.2 A member absent from three consecutive meetings whether '} or not represented by a qualified alternate will be recommended by the Committee for immediate rotation. 2.3.3 A rotated member shall become eligible for reappointment after a two-year interval. I III. OFFICERS 3.1 The officers of the Committee shall be a Chairman and a Vice Chairman, elected by the Committee subject to confirma tion by the Board of Directors. 3.2 The officers shall be elected for a term of two years, running concurrently, coinciding with MCA fiscal years, election to take place not later than April 15 of the year in which the term is to begin. 3.3 If either office becomes vacant, the Committee may elect a successor to complete the unexpired term, subject to con firmation by the Board of Directors. 3.4 Chairman 3.4.1 The Chairman shall preside at meetings and exercise general supervision over the affairs of the Committee, within the general framework of MCA policies. 3.4.2 The Chairman shall be responsible for full reporting at regular meetings of all Committee activities not previously reported. 3.4.3 The Chairman shall familiarize the Vice Chairman with all of the functions of the Chairman in order to provide for proper and effective continuity in the Chairman's absence. 3.4.4 With the concurrence of the Committee, the Chairman may establish Subcommittees, define their purpose and scope, appoint their membership and designate their chairmen. CMA 069997 r IV. v. 3 3.4.5 At any time, the Chairman may assign appropriate matters to a Subcommittee for consideration. 3.5 Vice Chairman 3.5.1 In the absence of the Chairman, the Vice Chairman shall fulfill all of the functions of the Chairman. SECRETARY 4.1 The Secretary .shall be the MCA staff representative assigned to the Committee. 4.2 The Secretary shall exercise authorities and responsibilities prescribed in MCA's "General Principles Applicable to the Structure and Operations of Committees." 4.3 The Secretary shall prepare and distribute notices of meet ings, agendas and minutes, have custody of the official records of the Committee, and perform such other duties as are usual to his office. MEETINGS 5.1 Meetings of the Committee will be held at the call of the Chairman, subject to the advance notice from the Secretary. Normally, three regular meetings should be held in each fiscal year. 5.2 Upon reasonable notice, the Chairman shall call a special meeting of the Committee whenever in his opinion such is justified, or when requested by at least eight members. 5.3 A majority of the members shall constitute a quorum at any meeting. 5.4 In the event a member is to be absent, he may - on advance written notice to the Secretary - be represented by a quali fied alternate, who may exercise all the functions of the member at the meeting, including the right to vote and to be counted for purposes of determining a quorum. 5.5 Subcommittees shall arrange separate meetings as justified by their assignments, subject to call by their respective chairmen and advance notice from the Secretary. 5.6 The Secretary shall issue notices for all meetings of the Committee and Subcommittees. No meetings may be held in the absence thereof. ii .f CMA 069998 4 5.7 An agenda of matters to be considered at meetings shall be prepared and furnished to those involved, at least one week in advance whenever practicable. 5.8 Minutes of meetings of the Committee and all Subcommittees shall be prepared and distributed promptly. Corrections or additions shall be considered at the next meeting. 5.9 It shall be the responsibility of the Chairman of a Sub committee to submit a timely request to the Secretary concerning any desired modifications of subparagraphs 5(c), (d) or (e) of the "General Principles Applicable to the Structure and Operations of Committees," under the provisions of subparagraph 5(g). 5.10 Actions shall be decided by majority vote of members present. The presiding officer may vote only to break a tie. The Secretary is not entitled to vote. 5.11 Guests may attend meetings upon prior clearance with the Secretary. VI. SUBCOMMITTEES 6.1 The term "Subcommittee," as used in these Rules, is defined to include Task Groups and other Committee units. 6.2 Designation of Subcommittees for special assignments, as to their membership, purpose and scope shall be recorded in Committee minutes. 6.3 Committee membership is not a prerequisite to serving on Sub committees. The qualifications for Committee membership shall, however, apply to members of Subcommittees as well. 6.4 The Chairman and Vice Chairman shall be ex officio members of all Subcommittees and shall be furnished notices of their meetings. They, together with the Secretary, shall be furnished copies of all reports and correspondence pertaining to Subcom mittee activities. 6.5 Subcommittee Chairmen shall be responsible for keeping their members informed regarding the progress of activities and tasks assigned for them to do. 6.6 Subcommittee Chairmen shall furnish written reports to the Chairman, Vice Chairman and Secretary in advance of each regular meeting of the Committee concerning activities, plans and recommendations. CMA 069999 5 VIZ. ADMINISTRATION 7.1 The Committee may consider matters from any source provided they fall within the scope of its stated purposes. 7.2 Voting, including that for the election of the Chairman and Vice Chairman, may be conducted by letter ballot when, in the judgment of the Secretary, circumstances warrant. 7.3 Appearance before any legislative or regulatory body or other organization on MCA's behalf shall be made only as authorized by the Board of Directors. If, in any such appearance other than as a duly-authorized representative, a person identifies himself with MCA in any way, he shall also make clear that he is not representing MCA in such t participation. VIII. USE OF COUNSEL 8.1 The use of Counsel shall be weighed carefully by the Com mittee taking into consideration the importance of each project to the Association's overall membership. 8.2 Subcommittee chairmen, or other Committee members having specific assignments, are to consult with the parent Com mittee officers and the Secretary if it appears that the assistance of Counsel may be desired. 8.3 Ordinarily, the concurrence of the Steering Subcomnittee should be obtained. However, if there is insufficient time to obtain a consensus from the Steering Subcommittee and the Committee officers are in accord that the matter warrants the prompt use and expense of Counsel, the Secre tary may proceed subject to budget limitations. 8.4 Only the Secretary or a more senior member of the Associa tion staff may arrange for and engage Counsel in accord with the Association's policy regarding the use of Counsel. IX. AMENDMENTS These Rules may be amended by majority vote at any regular meeting of the Committee, subject to approval of the Board of Directors. X. PRIMARY REQUIREMENT || j 'j |S I 6 or subsequent amendments to them shall be interpreted or applied in such manner as to conflict with that document. Adopted May 25, 1939 Revised June 22, 1950 Revised February 16, 1954 Revised October 14, 1959 Revised June 22, 1962 Revised June 26, 1963 Revised October 26, 1972 MCA EC-11/20/72 BD-1/9/73 CMA 070001 STAFF REPORT January 1973 by William J. Driver EXHIBIT D TAX REFORM...hearings before the House Ways and Means Com mittee are likely to begin early in the next session of Congress. As long ago as last June, that Committee's Chairman, Wilbur Mills (D.-Ark.), indicated the issue would be number one pri ority. Less certain is the nature and scope of such hearings. While various members of Congress have announced that they will sponsor "loophole-plugging" bills. Mills has avoided advocating sweeping reforms. The Administration is expected to introduce its tax reform proposal early in order to take the initiative. Comments by various Treasury Department officials indicate the Administra tion will emphasize tax simiplification rather than substantive reform. Treasury Under Secretary Edwin S. Cohen stated recently that he expected Congress to take under consideration the Asset Depreciation Range (ADR) system, the investment tax credit, and the minimum tax on tax preference income. It is also expected that capital gains will come up for congressional review. Some Administration officials have been advocating early Congressional consideration of trade reform legislation ahead of tax legislation, both of which are handled by the House Ways and Means Committee. Mr. Mills is reported to have indicated that he would put trade legislation before tax reform if President Nixon should request it. We understand, however, that the President has not yet made a decision on either the nature of trade legislation to be proposed by the Administration, or on the tactical issue of when to present it. TRADE POLICY...in the new Nixon Administration will operate under new leadership. The President has indicated that, in addition to his Cabinet duties, Treasury Secretary Shultz will take charge of overall economic policy. The imminent departure of Commerce Secretary Peterson should restore the Department of State to some eminence in trade policy matters. No changes have been indicated so far in the Office of the Special Trade Representative. However, the Presidents has accepted resignations from a number of International Economic Policy Council staff members, presently headed by Peter Flanigan. CMA 070002 Staff Report January 1973 Page 2 THE CONTROVERSY...over tank car mileage allowances continues On November 24, the railroads filed a reply to statements by MCA and other intervenors with the Interstate Commerce Commission (ICC). The railroads : Resist updating of base classification values (BCV's), attacking the basic system and claiming that a single percentage trending factor is inappropriate, Criticized our proposal to raise the value ceiling to $40,000, contending that linings and special materials relate to the "package" function of a tank car, and Continued legal objections to ICC' s power to prescribe specific allowances. The railroad document was lengthy. Therefore, to permit adequate evaluation and response, additional time to comment was requested in our behalf and that of the American Petroleum Institute, car lining companies and other supporters. Four weeks were granted; reply statements are now due January 8, 1973. NIOSH...the National Institute for Occupational Safety and Health, is conducting a National Occupational Hazard Survey a statistical study designed to collect pertinent information regarding biological, physical and chemical exposures to indus trial workers. Accompanied by management representatives, NIOSH surveyors tour industrial plants, noting exposures to different occupational groups. Seventy-five percent of the data collected is reported as exposures to trade name compounds. However, the Institute's ultimate goal is to develop information on exposures to specific chemicals, not trade name products. Therefore, NIOSH desires ingredient information for each trade name item reported to them. To obtain this information they propose to send a letter and a "request form" (one for each trade name product) to about 5000 manufacturers. Response would be mandatory. There is obvious concern that trade secret information might leak from the NIOSH files. Therefore a panel meeting under the Office of Management and Budget is being arranged, and MCA companies will have an opportunity to express their views regarding the need for assurances of confidentiality beyond those already expressed in the Occupational Safety and Health Act. CMA 070003 Staff Report January 1973 Page 3 THE ASSOCIATION...participated in a recent meeting in Geneva of the United Nations' Committee of Experts on the Trans port of Dangerous Goods. Attending were: A. C. Clark, Assist ant Technical Director, Transportation and Distribution and Dr. C. Boyd Shaffer, Director of Toxicology, American Cyanamid Company. The latter served as an advisor on definitions and classifications of toxic materials. Actions taken at this meeting will result in publication of a supplement to United Nations recommendations (1970) on the classification, packaging and labeling of hazardous materials in international trade. THE ASSOCIATION...has offered recommendations to the Environmental Protection Agency (EPA) on the professional qualifications deemed necessary to membership on its Effluent Standards and Water Quality Information Advisory Committee. We also offered to suggest candidates suiting these qualifica tions . ASSOCIATION TASK GROUPS...are continuing to work with EPA in the development of effluent guidelines for the categories of organics, inorganics, plastics and synthetics. EPA has already issued guidance documents to its ten Regional Offices for their interim use in drafting discharge permits for plastics and synthetics and is entering into contracts with consultants who will recommend a basis for establishing Best Practicable Control Technology Currently Available, Best Avail able Technology Economically Achievable, and National Standards of Performance for new discharge sources. It is anticipated that individual plants judged to be "exemplary" will provide the base for the required levels of technological performance. OMA 070004 n Staff Report January 1973 Page 4 THE WATER RESOURCES COMMITTEE... has established eight task groups to deal with particular aspects of regulations under the 1972 amendments to the Federal Water Pollution Control Act. In this regard, we have already commented to EPA regarding: (1) proposed regulations relating to State discharge permit programs and forms for discharge permit applications and (2) a draft document relating to pretreatment standards for discharges into municipal systems. A SOLID WASTES MANAGEMENT COMMITTEE... task group and other interested company representatives are reviewing an EPA draft document on ocean disposal guidelines and will maintain dialogue with that agency in the development of ensuing Federal regula tions . DR. HERMAN S. BLOCH...Associate Director of Research for Universal Oil Products and a 10-year veteran of MCA's Education Activities Committee (EAC), has been named Chairman of the American Chemical Society's Board of Directors. Dr. Bloch has been one of the prime catalysts for MCA/ACS collaboration in such EAC projects as the "Chemistry In Action" series, Open-Ended Experiments, Awards and Interface Conferences. He served as EAC Chairman from 1969-1971. CMA 070005 f EXHIBIT E REPORT TO THE BOARD OF DIRECTORS OF MCA ON THE ACTIVITIES OF THE LABELS AND PRECAUTIONARY INFORMATION COMMITTEE January 9, 1973 The Labels and Precautionary Information committee, known as the LAPI Committee, is one of the oldest of the standing technical committees of the Association. It was formed in May, 1944, as a result of a conference on liability suits that was convened by the Association early that year. We have twenty-five members from as many companies. The character of our work and strength of the committee is reflected in its makeup. We have two lawyers, three physicians, three toxicologists, and the balance are chemists and chemical engineers with manufacturing, marketing, and research experience. The present roster, together with the affiliation and length of service of each member is included in your copy of this report. The function of the committee is to: 1. advise the Board of Directors concerning the labeling of chemicals, especially precautionary labeling of hazardous chemicals, in accord with Association policies and procedures; 2. formulate and publish labeling principles and encourage their adoption and use; CMA 070006 -2- 3- promote uniformity in laws and regulations conforming with these principles; 4. cooperate with other committees, organizations, and governmental agencies in labeling matters. The work of the committee has gained widespread recognition, both within and beyond the Association, through the publication of the Manual L-l, Guide to Precautionary Labeling of Hazardous Chemicals. The first edition of this Manual was issued in 1945. The current and seventh edition was published in 1970. The Manual reviews the historical development of precautionary labeling and sets forth general principles for construction of a precautionary label text. It provides for classification of chemicals on the basis of hazard from ingestion, absorption, inhalation, contact, and flammability. Appropriate hazard and safeguard statements for each, depending upon the nature and severity of hazard, are organized in a handy table and their recommended label arrangement is shown to encourage uniform display. Other statements, suitable only for chemicals that possess uncommon hazards or need more specific safe guard instructions, are also included. Label text recommendations for Antidotes. Notes to Physicians, Instructions in Case of Fire, Spill or Leak, and Container Handling and Storage are covered in separate sections. CMA 070007 f -3- Eleven states now have in force health and safety codes for industrial chemicals *rtiich specify labeling according to principles set forth in Manual L-l. workers in other states are provided this same hazard alert and safeguard instruction through uniform practice in our industry. Furthermore, the Manual has had an important influence in shaping the labeling requirements of the Federal Insecticide, Fungicide and Rodenticide Act and the Federal Hazardous Substances Act. The impact of the committee work and the LAPI Manual on individual company labels might best be illustrated by this technical labeling chart. It shows how labeling provides the legal position on company rights to trademarks and tradenames, defends against liability claims by precautionary text, provides use instructions, sometimes through references to technical literature, compliance with government labeling regulations covering sale and transportation, gives container handling and storage, fire extinguishing, and spill clean-up instructions, and this text is part of a package that creates and delivers company image worldwide. In addition to its work in developing and refining uniform principles of precautionary labeling, the Committee endeavors to secure as widespread adoption of these principles as possible for the benefit of the membership. To the best of its ability, the committee keeps itself informed of developments in precautionary labeling on the local, state, and national level, and even at the y CMA 070008 -4- international level. Wherever possible, we offer the special skill and experience of the committee to regulatory agencies con templating action in the field of labeling in order that such action may reflect the logic, simplicity, and uniformity of the committee's principles. In all such efforts, we cooperate, to the extent possible, with any sister associations who may be concerned such as CSMA, NPCA, NACA, CGA, and API. It is the policy of this committee to review and make necessary revisions in Manual L-l to reflect the best current thinking in the field of precautionary labeling. It is only in this way that the Manual can be made to serve effectively the needs of those who use it. LAPI COMMITTEE ACTIVITIES 1. 1973 MANUAL REVISION WILL INCLUDE: Illustrative Labels The committee is updating labels for MCA Chemical Safety Data Sheets issued prior to publication of the Seventh Edition of our Manual. We intend to assemble the entire set of about 100 chemical labels for publication as an addendum to Manual L-l in 1973. Fire Potential Assessment by Closed Cup Test The Department of Transportation and the Department of Labor CMA 070009 -5- are expected to issue final flammability and combustibility regulations which specify the change from an open cup to a closed cup test method for assessing fire potential. This aspect of the Manual L-l will then need prompt change. The change should reconcile previous objections of insurance and fire protection interests and take us closer to qualification of the Manual as a consensus standard. 2. PICTORIAL HAZARD SYMBOLS ON LABELS WILL GAIN IMPORTANCE LAPI Committee is dedicated to establishment of one coordinated labeling system which provides for unrestricted distribution of industrial chemicals. Pictorial hazard symbols can bridge language barriers and may provide an acceptable recognizable link to the label safeguard message needed by people inter nationally who handle products during shipment and storage. These hazard symbols'*' must now be displayed on packages of regulated articles in European Economic Community nations. Use of either pictorial Air Transport four-inch diamond labels or the pictorial International Maritime Consultive Organization labels in 1973 will comply with the spirit and intent of this requirement and should avoid unnecessary delays in handling shipments in these countries. Subsequent editions of Manual L-l are expected to include appropriate pictorial symbols and their suggested use. Deliberations will take place this year with domestic govern- 1 L Council of Europe "Yellow Book" Strasbourg, 1971 symbols attach d CMA 070010 -6- ment agencies and affected trade associations with the goal to try to develop and reach accord on meaningful hazard symbols. These are existing air and surface transport labels. These are proposed new labels for all modes. They use a flame to communicate fire hazard and rely on variations in color and graphic design for alert to other vital information. LAPI Committee feels hazard pictorials alone can and should convey the hazard story. These are examples of pictorial symbols which we believe are more appropriate to communicate flammable gas, flammable solid, and avoid water. This new label for Parathion adds much emphasis to the POISON message and conveys the fact that it can cause death by swallowing, contact with skin, or if inhaled! Clean, uncluttered communication of the hazard and safeguard message must be our goal! 3. OCCUPATIONAL SAFETY AND HEALTH ACT (OSHA) REGULATIONS Influencing hazard definitions and labeling regulations is part of our MCA function. OSHA gives the Department of Labor authority over toxic materials and harmful physical agents in places of employment. The Act requires the Secretary of Labor, at some time, to promulgate standards which prescribe use of labels or other appropriate forms of warning to insure that employees are apprised of hazards to which they are exposed. These standards shall also include relevant symtoms of exposure, appropriate emergency treatment and proper conditions and CMA 070011 -7- precaution statements for safe use. The committee objective now is to see to it that Manual L-l is recognized and used as the labeling pattern or working document by the Department of Labor (DOL), the National Institute of Occupational Safety and Health (NIOSH), and other involved standards-making associa tions such as the American Society for Testing and Materials. ASTM, with its full consensus standards making procedure, has been encouraged by OSHA administration to develop related standards proposals in anticipation of public hearing adoption procedures required after April 13, 1973. To insure Manual L-l influences OSHA label regulations, I nominated Dr. C. B. Schaffer of Cyanamid Company, a former chairman of LAPI Committee, and MCA then recommended him for membership on the proposed OSHA Advisory Committee on Labeling and Hazardous Materials. Promotion of MCA labeling principles in other standards-making associations must also increase in 1973 if we expect them to take on "consensus status" and carry over to "required by law" status. I suggest the MCA approach in this area be two-fold: 1. Offer LAPI Committee cooperation in their labeling deliberations, and 2. Give MCA support to experienced LAPI Committee members K* I CMA 070012 -8- considered for or in policy making assignments of other association labeling committees. 4. MANUAL L-l PROPOSED AS A STANDARD Manual L-l has been proposed for an American National Standards Institute labeling standard. Substantial opposition to its adoption exists. After DOT issues final flammable liquid and combustible liquid test methods and regulations, resubmission of a revised manual to another canvass vote will be considered. There are thirty-one interested and affected organizations specified by ANSI. Further action will be taken only if it can influence the course of OSHA regulation. 5. OSHA MATERIAL SAFETY DATA SHEET The use of a one page abstract of technical and safeguard information is recognized by the Department of Labor as suitable for educating both employers and employees of the hazardous nature of substances used in work places. Although this streamlined product information form is not a legal requirement of OSHA, many manufacturers have used the DOL shipbuilding Material Safety Data Sheet form number 20 to assemble facts on their products to satisfy customer requests. At the recommenda tion of the intercommittee Task Group on OSHA regulations, the LAPI Committee developed a revised form more suitable for chemical products. This is available for MCA use in the event CMA 070013 9- a requirement develops under Section 6 (B) 7 regulations. We maintain liaison with: 1. American Conference of Government Industrial Hygienists 2. American Petroleum Institute 3. American Society for Testing and Materials 4. Chemical Industries Assoc. Ltd. of Great Britain 5. Chemical Specialties Manufacturers Assoc. 6. National Agricultural Chemicals Association 7. National Fire Protection Association 8. National Paint and Coatings Association 9. Association of American Pesticide Control Officials Within MCA we maintain communications with: 1. Board of Directors through MCA staff or regular reports 2. Intercommittee Task Group on OSHA Regulations 3. Ad Hoc Committee on Chemical Regulation 4. Occupational Health committee 5. Public Relations Committee 6. Safety and Fire Protection Committee 7. Chemical Packaging Committee 8. Transportation and Distribution Committee CMA 070014 * li ! \ -10- Government agency contact is maintained with: 1. The Department of Transportation 2. The Department of Labor 3. The Environmental Protection Agency 4. The Food & Drug Administration 5. The Department of Commerce In conclusion, legal counsel has suggested that it might be worthwile to point out for your informatin that there is an everincreasing number of suits which are being brought against producers charging that injuries were the result of failing to warn or failing to warn enough. To counter this and for other reasons, the amount of copy on labels continues to expand and gives rise to further concern for legibility and effective communication of health as safety information. We intend to examine our position on precautionary labeling more critically than ever and determine whether it would not better serve our membership if we were more specific and less permissive in our recommendations for label preparation. On behalf of the committee, I thank you for this opportunity to appear before you. January 9, 1973 G. Robert Sido, Chairman Labels and Precautionary Information Committee CMA 070015 I LABELS AND PRECAUTIONARY INFORMATION COMMITTEE COMPANIES FIRST OFFICIAL MEETING* SERVICE AS OF 1/1/73 Monsanto 1/19/60 12 years 11 months M&T 1/26/65 7 years 11 months Diamond Kerr-McGee 6/20/72 5/25/71 1 year 6 months 7 months i 3M 6/17/69 3 years 6 months Mallinckrodt 1/24/68 4 years 11 months Koppers 9/22/71 1 year 3 months GAF 1/22/63 9 years 11 months Carbide 10/4/64 8 years 3 months R. H. Dewey Comm. Solvents 9/30/58 14 years 3 months Dixon Celanese 10/4/66 6 years 3 months J. T. Gormally Pennwalt 9/23/59 13 years 3 months J. W. Hammond Humble 11/30/60 12 years 1 month W. H. Jones Kodak 6/17/69 3 years 6 months M. B. Lore Du Pont 5/25/71 1 year 7 months C. Lowery MC&B 1/19/71 1 year 11 months D. G. MacKellar FMC 9/20/67 5 years 3 months H. H. McIntyre Dow 10/4/56 16 years 3 months C. J. O'Connor Stauffer 6/18/68 4 years 6 months R. F. Philpitt Olin 9/30/58 14 years 3 months R. E. Rutherford Gulf 1/20/70 2 years 11 months C. B. Shaffer Cyanamid 5/3/60 12 years 8 months Troup TAL 23 J. T. Baker 4/20/55 AVERAGE SERVICE 7.7 YEARS 17 -years 177 years 8 months 1 month *First meeting after appointment to Committee by Board of Directors / CMA 070016 COUNCIL OF EUROPE "YELLOW BOOK" STRASBOURG, 1971 SYMBOLS Dans cette liste les symboles de danger sont indiqufe comme suit : In this list danger symbols are indicated as follows : Jr dieser Liste werden die Gefahrenzeichen wie folgt dargestellt : In deze lijst zijn de gevaarssymbolen als volgt aangeduid : In questo elenco i simboii di pericolo sono indicati come segue: Danger majeur - Major danger - Grosse Gelahr - Voor groot gevaar - Maggiore pericolo Subsi antes lonques Tone substances Grtnge Sroffe Vergiltige sullen Sostanze losstche T Substances corrosives Corrosive substances Atzende Smile Btjlende stoflen Sostanze corrosive c Substances radioanIves RadtoactM substances RadnattM Slofle Radioatlieve stoflen Sostanze radnattwe R Danger mineur - Minor danger - Gerlngere Gefahr - Voor minder gevaar - Minora pericolo 'IT 1 LflPI COMMITTEE FUNCTIONS ADVISORY TO MCA BOARD ON CHEMICAL LABELING 1 'FORMULATE LABELING PRINCIPLES I 'PROMOTE UNIFORMITY IN LABEL REGULATIONS i j COOPERATE WITH GOVERNMENT ' AGENCIES AND OTHER ORGANIZATIONS l GUIDE TO PRECAUTIONARY LABELING OF HAZARDOUS CHEMICALS 1 'DEFINES TERMS AND HAZARDS i ESTABLISHES LABELING PRINCIPLES i 'GIVES PREPARATION INSTRUCTIONS | HAZARD AND SAFEGUARD STATEMENTS ' ILLUSTRATES TEXT ARRANGEMENT 3 TECHNICAL LABELING provides lepal position for Compliance with Govt. Labeling Regulations i (taptaf AfptwMwn Dpt*4 Or-#* Fm4 **** S*M) M.V Cftj Fvtt Co4* A C*44 0*fC tl Ubr 'Container Handling nd Storage Fire E*tlngui*hing and Spill Cleanup LAPI COMMITTEE ACTIVITIES 1973 LAPI MANUAL REVISIONS -ILLUSTRATIVE LABELS -NEW FIRE HAZARD DEFINITIONS PICTORIAL LABELING OSHA PRECAUTIONARY LABELS PROMOTION OF MANUAL L-l AS AN ANSI STANDARD OSHA MATERIAL SAFETY DATA SHEET INTER ASSOCIATION LIAISON GOVERNMENT AGENCY LIAISON CMA 070018