Document 8QBjX3joBOB3ybBNQDjRbBre

agenda REGIONAL MEETING OF THE MCA BOARD OF DIRECTORS 11:00 a.m. (EDT), Tuesday. October 13, 1964 Rockland Room, DuPont Country Club, Wilmington, Delaware j OPENING REMARKS. II MINUTES OF SEPTEMBER 15, 1964, MEETING. HI. report OF THE SECRETARY-TREASURER. Financial Report for Four Months Ending September 30, 1964. (Enclosure) IV. board of directors. (a) Revised Association Directory. (b) November 24, 1964, Semi-Annual Meeting. (c) Chem-Cards -- Printing and Distribution. (Enclosure) (Enclosure) V. COMMITTEE APPOINTMENTS. | <a) Air Quality Committee, G. M. Rosengarten, Union Carbide Corporation, replacing O. C. Thompson (b) Ammonium Nitrate Technical Committee. A. F. Dyer, Phillips Petroleum Company, as Chairman W. J. Taylor, Atlas Chemical Industries, Inc. , as Vice Chairman (c) Food, Drug, and Cosmetic Chemicals Committee. Lee A. Miller, Monsanto Company, replacing William J. McCarville (d) Water Resources Committee. G. M. Rosengarten, Union Carbide Corporation, replacing O. C. Thompson i i ! VI. STAFF REPORT. VH. COMMITTEE REPORTS. .a) Transportation and Distribution Committee -- Car Advisory Subcommittee -George L. Wilson, Chairman (b) Chemical Industry Council Advisory Committee -- Glen Perry, Chairman VIII. MISCELLANEOUS ITEMS. Next Meeting of the Board of Directors will be held at 4:00 p. m. (EST), Monday, November 23, in the Board Room of the American Iron and Steel Institute, 150 East 42nd Street (38th Floor), New York City. CMA 068274 (953) MINUTES of the one hundred forty-first meeting of the Directors of the i Manufacturing Chemists' Association; Inc. , held in the Rockland Room, DuPont Country Club, Wilmington, Delaware, on October 13, 1964, at 11.00 a.m. (EDT). There were present. Chester M. Brown F. L. Bryant F, L. Byrom Herschel H. Cudd George H. Decker J. Robert Fisher Carl A, Gerstacker John L,. Gillis Ralph K. Gottshall Kenneth H. Hannan Thomas C. Jones C. B. McCoy R. C. McCurdy Robinson Ord Donald D. Pascal Robert B. Semple Wesley H. Sowers Joseph R. Stevens Harold E. Thayer O. V. Tracy Harry B. Warner G. L. Weissenburger W. N. Williams M. F. Crass, Jr. Alternates: A. E. Albright (for Hans Stauffer) David G. Braithwaite (for Thomas C. Jones) F. D. Chittenden (for George R. Vila) Bert Cremers (for Robert B. Semple) Edward J. Goett (for Ralph K. Gottshall) Robert E. Hulse ( for W. P. Marsh, Jr.) Hugh C. Land (for William P. Drake) Felix E. Larkin (for O. V. Tracy) W. F. Michener (for Harold E. Thayer) Thomas B. Nantz (for Harry B. Warner) D. J. O'Conor, Jr. (for Robert C. Swain) Carl L. Randolph (for Hugo Riemer) Charles H. Sommer (for John L. Gillis) John E. Wood III (for Harold W. Fisher) General Counsel: Lloyd Symington - Fowler, Leva, Hawes & Symington Present by Invitation; William E. Bonnet - Sun Oil Company Ashworth Burslem - Hercules Powder Company, Inc. Richard Fleming - AviSun Corporation D. S. Frederick - Rohm & Haas Company J. J. B. Fulenwider - Hercules Powder Company, Inc. R. W. KixMiller - Celanese Corporation of America S. M. Martin, Jr. - Thiokol Chemical Corporation Glen Perry - E. I. du Pont de Nemours & Co. A. E. Settle - MCA Sydney Steele - Atlas Chemical Industries, Inc. Henry A. Thouron - Hercules Powder Company, Inc. George L. Wilson - Rohm & Haas Company In addition, a number of member representatives participated in related 1 CMA 068275 1954) I. OPENING REMARKS. In calling the meeting to order at 11:00 a.m. , Chairman Gottshall welcomed h Directors, Alternates, and guests. He introduced the guests and invited them ^0 acted as hosts for the various phases of the meeting. Mr. Gottshall then reported that Mr. and Mrs. Thomas S. Nichols had be6n injured in an automobile accident in Baltimore on October 10. Mrs. Nichols ^ed shortly after the accident, and Mr. Nichols suffered a broken arm and fractured jnkle but is recovering satisfactorily in Sinai Hospital. A Resolution was proposed expressing deep sympathy to Mr. Nichols in his loss and the hope that he would have speedy recovery from his injuries. This was passed unanimously by a rising vote. II. MINUTES OF SEPTEMBER 15, 1964, MEETING. The Minutes of this meeting were duly approved as submitted to the members III. REPORT OF THE SECRETARY-TREASURER. Financial Report, June -- September 1964. The financial report for the four months ending September 30, 1964, was summarized by the Secretary-Treasurer. ON MOTION duly made and seconded, it was VOTED: That the report be accepted and placed on file. IV, BOARD OF DIRECTORS. (a) Revised Association Directory. Handed to those present were copies of the Association's Directory, updated to September 15 and containing lists of the Officers, Directors, Committees, and Members. Copies of the Directory were mailed to the Executive Contacts and to members of the technical and functional committees on September 28. Called to the attention of all committee members were the "General Principles Applicable to the Structure and Operations of Committees" reproduced on pages 41 - 44 of the Directory. This was done in keeping with Para graph 8 of the "General Principles" which requires that the text be brought to the attention of all committee members at least once each year. (b) Semi-Annual Meeting. Distributed to those present were copies of the illustrated program of the 14th Semi-Annual Meeting and Midyear Conference to be I held in New York City on November 24, 1964. Copies of this program, with registra tion information and forms, were transmitted to approximately 1600 member representatives on September 29. Directors were urged by Mr. Jones to forward their company registration lists promptly to the Washington office, i fc) Chem-Cards -- Printing and Distribution. Sent to Directors in advance of the meeting was a request of the Chem-Card Intercommittee Task Group for (955) [jjorization to print and distribute Chem-Cards and Chem Card Manuals at a tal cost of $13, 870 for the current fiscal year. The money would be spent in phases -- $8, 480 for the first phase involving 7 5 cards and one manual; the glance for a second phase comprising 120 cards and a manual. Pending full jcCeptance of the program by all interested groups, the staff recommended that ffle Board at this time authorize an appropriation covering the first phase only, implementation of the second phase deferred until June 1965 and the necessary UJ1ding for it incorporated into the regular budget for fiscal 1965-66, At a meeting f the Executive Committee held earlier in the day, the staff recommendation was endorsed. Following discussion, ON MOTION duly made and seconded, it was VOTED: That the staff recommendation, outlined above, be approved. In accordance with a discussion by the Executive Committee, General Pecker stated that possible legal aspects relating to the use of Chem-Cards would be called to the attention of member firms. Further, that the staff would coordinate the efforts of the several technical committees whose areas of interest may be affected by the publication of Chem-Cards, (d) Industrial Alcohol Technical Committee (Ad Hoc). It was advised that the tenure of this Committee expired on October 1, 1964. A recommendation to extend the Committee's tenure was not made since it is no longer active. Should circumstances indicate the need, the Board can consider its re-activation at a later date. V. COMMITTEE APPOINTMENTS. The following committee appointments were approved: (a) Air Quality Committee. G. M. Rosengarten, Union Carbide Corporation, replacing O. C. Thompson (b) Ammonium Nitrate Technical Committee. A. F. Dyer, Phillips Petroleum Company, as Chairman W. J. Taylor, Atlas Chemical Industries, Inc. , as Vice Chairman (c) Food, Drug, and Cosmetic Chemicals Committee. Lee A. Miller, Monsanto Company, replacing William J. McCarville (d) Transportation and Distribution Committee. Gordon R. Anderson, The Dow Chemical Company, replacing Oliver E. Beutel Harvey F. Nearing, United States Steel Corporation CMA 068277 (e) Water Resources Committee. Britton Balzerit, Corn Products Company H. R. Holland, Imperial Oil Limited G. M. Rosengarten, Union Carbide Corporation, O. C. Thompson replacing (956) VI. STAFF REPORT. General Decker presented a detailed report of developments in the ,5Sociation's program of projects and activities since the last meeting, including echnical. legislative, public relations, and education matters. Copy of this ort is appended to these Minutes as Exhibit B. VII. COMMITTEE REPORTS. (a) Car Advisory Subcommittee -- Tank Car Mileage Allowance. George l Wilson, Chairman of the Transportation and Distribution Committee's Car Advisory subcommittee, presented a 10-minute report on recent developments in the matter 0f mileage compensation for private tank cars. His report is appended to these Vinutes as Exhibit C. Following conclusion of Mr. Wilson's remarks, there was jnef discussion. A resolution of appreciation to Mr. Wilson and his Subcommittee uas unanimously passed by those present. (b) Chemical Industry Council of Delaware. Glen Perry, Chairman of the Chemical Industry Council Advisory Committee, reported on activities of the Delaware CIC. Copy of his report is appended to these Minutes as Exhibit D. There being no further business to come before the meeting, it was unanimously resolved to adjourn. Those attending then divided into two groups: one participating m luncheon and golf at the Wilmington Country Club, the other a reception and luncheon at the DuPont Country Club, both provided by the DuPont Company. The latter group took a bus tour, including visits to the Hagley Museum, points of interest in the Wilmington residential area, and Longwood Gardens. During the evening, all registrants were guests of Hercules Powder Company at a reception and dinner at the Hercules Country Club. The entertainment after dinner was furnished by Atlas. Earlier in the day registrants were guests of Atlas at breakfast at Atlas headquarters. M. F. Crass, Jr. Secretary-Treasurer APPROVED: Ralph K. Gottshall Chairman Attachments EXHIBIT "A" ADDITIONAL, ATTENDANCE AT SUPPLEMENTAL EVENTS October 13, 1964 - - Wilmington, Delaware L,. R. Bailey g, I. do Pont de Nemours & Co. C. J. Harrington E. I. du Pont de Nemours & Co. r, P. Barnett Rtlas Chemical Industries, Inc. Gardner Harvey Atlas Chemical Industries, Inc. Qxxy C. Bates gates Chemical Company, Inc. J. D. Hayes Hercules Powder Company, Inc. W. C. Brown Hercules Powder Company, Inc. W. H. Heacock(Guest) Hagley Museum Joseph W, Call Stauffer Chemical Company E. F. Hinner Hercules Powder Company, Inc. r. W. Cairns Hercules Powder Company, Inc. George E. Holbrook E. I. du Pont de Nemours & Co. J. M. Clark . I. du Pont de Nemours & Co. *E. E. James Allied Chemical Corporation M. E. Colson Atlas Chemical Industries, Inc. J. R. L. Johnson, Jr. Hercules Powder Company, Inc. Lammot duPont Copeland E. I. du Pont de Nemours & Co. W. C. Kay E. I. du Pont de Nemours & Co. E. G. Crum Hercules Powder Company, Inc. Samuel L. Lenher E. I, du Pont de Nemours & Co. P. S. duPont E. I. du Pont de Nemours & Co. J. H. Long Hercules Powder Company, Inc. C. W. Eurenius Hercules Powder Company, Inc. J. H. Lux Hercules Powder Company, Inc. *G. W. Farnan Conestoga Chemical Corporation J. M. Martin Hercules Powder Company, Inc. ^Gordon Gaddis Tidewater Oil Company E. J. Massaglia Atlas Chemical Industries, Inc. *Shaul Gladstone Halby Chemical Company, Inc. Paul Mayfield Hercules Powder Company, Inc. E. Goodman Hercules Powder Company, Inc. * Delaware CIC J. H. T. McConnell Hercules Powder Company, Inc. CMA 068279 J. W, L. Monkman Bates Chemical Company E. B. Morrow Hercules Powder Company, Inc. William H. Mylander E. I. du Pont de Nemours h. Co. *H. B. Nason Sun-Ohn Chemical Company R. J. Reilly Atlas Chemical Industries, Inc. * Delaware CIC -Z- Walter H. Salzenberg E, I. du Pont de Nemours & ^ *B, S. Schlimme E. I. du Pont de Nemours & ^ R. J. Seibert (Guest) Longwood Gardens D. H. Sheffield Hercules Powder Company, ^ *Ira A. Wolfson Pace, Inc. CMA 068280 MCA STAFF REPORT Delivered by General G H. Decker October 13, 1964 Exhibit B i Domestic Legislation and Government Relations As you know Congress adjourned on October 3. While there is some speculation that the President will ask them to reconvene following the elec tion, this is considered unlikely. The Muskie Water Pollution Control Bill, S. 649. was reported out of the House Public Works Committee on September 4, but it was not granted a rule by the Rules Committee and therefore did not receive consideration on the floor of the House. Substantial congressional sentiment seems to favor legislation on this subject but, assuming no special session after the election, it must now be reintroduced in the next Congress and follow the customary route of House and Senate hearings and floor consideration before it can become law. I On September 25 MCA Executive Contacts were forwarded a "Portfolio of Campaign Information, " which was intended to assist in encouraging em ployee participation in elections for the Senate and House of Representatives through support of the candidates of their choice after study of their records ! and the issues. This is a pilot project, being the first of its kind undertaken j by MCA. The extent to which future and possibly more extensive efforts of this type are undertaken will depend upon the success of this first effort. To date several requests have been received for portfolios, to be furnished plant managers of member companies. At its meeting scheduled for yesterday and today, the Tax Policy Com mittee, pursuant to the request of the Board of Directors, is reconsidering | its recommendation that the Association support abandonment of the reserve ratio test in connection with the Depreciation Guidelines issued by the Internal Revenue Service. The committee is also considering a letter to the Secretary of the Treasury requesting deferral of application of the reserve ratio test. In a last minute revision of the program for the Association's Midyear Meeting in November, the Tax Policy Committee agreed to provide a Tax Panel, composed of tax executives of MCA companies and MCA's special tax counsel,on the subject, "Current Tax Considerations Affecting Management Decisions. " This panel is in lieu of one entitled, "Economic Health versus ! Excess Capacity" proposed initially. i In a meeting of the Washington Advisory Committee Mr. Wesley Koster fl of BDSA suggested that BDSA could do much more to support the position of ] the chemical industry before other Government agencies if BDSA were more 4 CMA 068281 2- - knowledgeable of our problems. In the light of this suggestion, the committee adopted a resolution urging that information in greater depth and scope on prob lems affecting the chemical industry be made available to BDSA by the Associ. ation on a continuing basis and that each MCA committee develop procedures whereby this could be accomplished. This proposal has been endorsed in a letter over my signature to the chairman of each MCA committee. International Issues At its meeting on September 23, the MCA Patent Committee adopted a resolution urging that MCA forward to Secretary of State Rusk a letter urging representations through diplomatic channels in objection to action proposed by India to reduce the life of patents on food and drugs from 16 to 7 years, and to require universal compulsory licensing. The letter is being prepared. It now appears the Kennedy Round of GATT negotiating sessions will not convene before the middle of January 1965. The Office of the Special Representative for Trade Negotiations has appointed 22 technical repre sentatives from various segments of the chemical industry out of a total of 234 representing industry, agriculture, labor, export-import interests, and consumers. In a Washington meeting September 30, company contacts had an opportunity to meet with MCA and SOCMA technical representatives to consider problems in the forthcoming round of negotiations and procedures for working with the technical representatives. Research Interested plastics members have approved a research project on weatherability which under present plans will include support of one or more Research Associates working in the National Bureau of Standards. The need for this program to improve methods for predicting long-term weatherability evolved from the investigations on development of voluntary standards for plastics in building components. Interested member and several non-member producers of ammo nium nitrate fertilizer grade have financed a sensitivity test program under the direction of the Bureau of Mines. The work was completed early in October; it is expected that the results will be useful in working with a number of states planning regulations on transportation and storage. Meetings and Symposia An insurance seminar on product liability sponsored by the Insurance Committee was held September 23 in Philadelphia, and a chemical industry safety workshop sponsored jointly by MCA's Safety and Fire Protection CMA 068282 -3- Committee and the Chemical Industry Council of New Jersey was held Sep tember 29 in Newark; Both of these symposia were well attended and par ticipated in by member company representatives. The National Academy of Sciences has agreed to undertake the manage ment of the symposium on pesticides, supported by funds from MCA, as authorized by the Board at the last meeting. The Academy staff is enthusi astic about the project, and views it as an opportunity to bring about greatly increased understanding and rapport among selected opinion leaders from all segments of society concerned with the problem. The Academy has moved rapidly to finalize the plan. Dr. Harlow B. Mills, a highly respected scientist and president of the Illinois Natural History Survey, has been named chairman for the project, and two Academy staff members are working on the necessary logistic and other planning. Invitations will probably be going out this week, issued in the form of a personal letter from Dr. Frederick Seitz, president of the Academy. The originally suggested date of the week of November 15 has now been firmed. We have organized in the MCA staff a task group, headed by Allan Settle, to take care of the nominations for industry representation, to aid in the development of the industry presentation on the one day that this occurs in the program, and to handle any other details which such an undertaking demands. Economic Fact Studies The second and third economic fact studies, entitled "Chemicals in the National Economy, " and "Chemical Prices, Productivity, Wages, and Profits, " respectively, are in the hands of the printer -- Stand Lithograph of Washing ton. Galleys are received daily, studied, and copies transmitted to Mr. Kenneth Hannan and Dr. Backman for final comment prior to actual publica tion. These two studies should be ready for distribution by the end of this month. The preliminary draft of the fourth study, "Foreign Competition in Chemicals and Allied Products, " is under review. Dr. Backman will participate as a panelist in the Semi-Annual Meeting panel devoted to joint ventures. Education Activities A guide, prepared by the EAC, suggesting ways in which Chemical Industry Councils may assist two-year colleges and technical institutes, has just been issued through the Community Relations Program. CMA 068283 -4Twenty-eight experts in their respective fields have been enlisted as authors for the "Chemistry in Action Series, " Dissatisfied with the cooperation provided by the first chosen publisher, the EAC has decided on a new one, Educational Services Incorporated. Committee Organization The tenure of the Ad Hoc Industrial Alcohol Committee expired on October 1, 19&4. This committee's tenure was not extended because it is no longer active. Should circumstances indicate the need, the commit tee could be reactivated by the Board. CMA 068284 EXHIBIT "C Tank Car Mileage Allowance Report of George L. Wilson, Chairman Car Advisory Subcommittee, Transportation & Distribution Committee To the MCA Board of Directors Tuesday, October 13 , 1961*, Wilmington, Delaware I ask you to accept this, not as my report, but as the report of MCA's Transportation & Distribution Committee whose chairman, Mr. ?. T. Brevbaker of Hooker Chemical Company, I represent today as chairman of the parent committee's Car advisory Subcommittee. Compensation paid by the railroads to those furnishing private tank cars involves the chemical industry to the extent of at least *50 to $>55 million annually. In the past, the voice of our industry has not been as strong as its claim on the railroads, but it is now recognized to be the leading one in industry, partly because well over half the investment in the nation's tank cars is in chemical industry cars and principally because of the way KG.-* has approached this problem since 1962. Two and a half years ago - when the question of increased compensation was raised - the MCa Transportation 4 Distribution Committee appointed a special Task Group to advance the chemical industry's interests. iince the spring of 1962, this group has met and consulted at least once and often three times a month to present an effective case to the railroads for greater compensation for chemical industry tank cars. Following a United States Supreme Court decision of some 50 years ago, the railroads are not required by law to invest in specialized equipment, such as tank cars, to move their customers' products. However, if they do not provide them ( and this normally is the case) they are required to pay a reasonable allowance to those who do. Historically, this allowance has been a single rate paid the shipper or car owner for each mile the car moves empty and under load, regardless of its type or value. The virtues of a single rate are its ease of administration and its freedom from unjust discrimination. .is an average, it has been considered fair, some people gaining a little, some losing a little, but all being on an equal footing. This theory was acceptable in the past when there was little variation in tank car design and capacity, and when operating costs, including capital charges, ranged from $200 to -J250 a year. However, the tremendous development in product diversity, especially in the chemical industry, has called for cars of exceedingly sophisticated design, varied capacity and arrangement and large investment. Today's tank car operating costs range from less than 2400 a year for a completely depreciated 30-year old or older general purpose car to nearly ,3,000 a year for some of the more complex and expensive cars. CMA 068285 It is perfectly obvious that one rate of 5.5b per mile car. not do justice to such a range of costs. The average payment the railroads make today for cars built before 1932 is 125% of annual costs; for the average car built since that date, 60% of annual costs. MCn's Gar .-idvisory Gommittee estimates that each year shippers who use modern cars lose well over 130 million and that in the past If years the railroads have underpaid car users by over .,450 million, of which the chemical industry has absorbed at least _300 million. In 1962, MGh members operated 54,000 tank cars; 40% were ter. years old or less; only 124 were over 30 years old. lighty percent of our cars had costs in excess of 5.5b per mile reaching 16 to 20 per mile and only 123 had costs below that figure. Gonsequentlv, because of the single unremunerative rate, MG*. members were out of pocket well over v20 million that year. As we add newer cars, and we do so at a rate of about 2,000 cars per year, our deficit increases at a rate of about -,,2 million annually. as of today, I would estimate it as being at least ,,27 million. On the other hand, over 50% of the nation's tank cars are old and fully depreciated. Some are over 50 years old. They represent the stock in trade of many car leasing firms, and they are the basic tank car for industries such as the petroleum and vegetable oil producers who need few sophisticated or large modern cars. assured each year of having their cars supplied at little or no cost, with the notable exception of some individual firms, it is natural for these groups to favor retention of the single rate. They do so, however, at chemical industry expense. although their views are slowly changing, these groups are naturally concerned to protect the earnir.gs their old cars produce. For obvious reasons, MGa advocates multiple rates based on actual annual costs, and the railroads have accepted this principle. The railroads also agreed to our suggestion that in fairness to those who must change from old to newer cars they must gradually - not precipitously - reduce the allowance for old cars. It may be questioned whether the railroads should or could increase their payments for private tank cars to the extent MCn. has requested. I think the answers are that they should because we are asking for no more than the costs of car ownership, costs the railroads would incur if they provided the cars, and that they can increase their payments because their net income, which has been improved satisfactorily in recent years, is inflated by the amount they owe us. The amount of compensation we are asking for - full car ownership costs - is roughly equivalent to 24% of the railroad operating income from the freight these cars carry. I think it is significant in showing that our request is reasonable that the ratio of car ownership costs for railroad owned cars - box cars and others - to operating income from the freight they in turn carry is also 24%. It is significant also that the railroads recognise that compensation for cars must be related to their values and costs. The railroads recently revised their method of ir.ter-railroad payments for cars used by a railroad not owning them, and placed it on this basis. On October 1st the first schedule of multiple allowances, for private tank cars based on these principles became effective. as a result, beginning in 1965 MC.i member companies for the next two years should receive at least 36 million more per year than they now are paid. For reasons of its own, the Southern Railway jumped the gun in august and published allowances of its own, and they were followed in this by their competitors. These "maverick" allowances became effective on September 16, and they are under IOC investigation. They give car owners essentially no more than the national allowances of October 1, and they ereate an unnecessary and gratuitous interfering confusion which now has led to an IOC investigation of all allowances although the ICC has permitted them to remain in effect during the investigation. MCa had hoped that the problem could be resolved without the imposed solution of a government agency, but the Southern's action made this impossible. To provide us with counsel in the forthcoming investigation, the Transportation a Distribution Committee has retained the transportation legal firm of Belnap, Spencer, Hardy and Freeman. Mr. Hardy of that firm already is on the job and has shown a good grasp of the problem. His reply to those asking the ICC to suspend or to investigate the aaR'3 allowances was most effective. There were eight such petitions, and it is interesting to observe that none seriously or effectively challenged the principles MCA has advocated and none was filed by a large national group of car owners. The four major leasing firms asked for the investigation of one important technicality, but that is on the way toward being voluntarily cleared up. In this proceeding, MCa will be in a very strong position to present a case for substantial increases in compensation. Thanks to the contribution ir. funds and efforts of MCa member companies and to the assistance of Ford, Bacon and Davis, the consultation firm we employed to help us and whose analytical work was of the highest order, there has never been such a comprehensive study of tank cars as MCA has made. Because of this study and the manner in which the MCa case has been presented, MCa has taken the lead in the past two years in the discussions with the railroads. This leadership is due in great part to a group of exceedingly hard-working and knowledgeable men who, as a special Task Group, have devoted many hours to the project. I should like to commend them to you: Mr. I. L. O'Brien of Monsanto, Mr. L. 5. Truslow of Union Carbide, Mr. John .Vilharm of Diamond Alkali, Mr. C. P. Greelevof l.ational Distillers c. Chemical Company, Mr. J. Z. Weaver of The Pittsburgh Plate Glass1 Company, Mr. C. H. Vescelius of Clin Mathieson, Mr. C. H. Mavhood of the MCa staff and Mr. S. a. Durand of Ford, Bacon i Davis. no step or decision was taken that was not informed By -their judgment, and no commitment or proposal was made that did not have the approval of the parent committee. In addition to those working specifically on the Task Group, another dozen members of the Transport ation A. Distribution Committee helped in special assignments. Cf the members of MCa's Board of Directors, there are 12 companies who furnished effective assistance in this program. CMA 068287 f The railroads plan to resume the study of costs and car usage with the intention of basing a permanent schedule of multi-level rates on current costs and car utilization. This will begin in i ovember and will end probably next summer, and the study will be extremely helpful in the forthcoming investigation. 4e will be active in trying to bring the allowances closer to the more than 150 million annually MC.^ members are entitled to, whether in discussions with the railroads or in litigation before the ICG. Cither way will take several years, but for either approach we have a strong case and a strong committee to advance it. You have already authorized the financing of this program by member companies through a contribution of ,;2 per car for each car operated. MCa has collected only 1 to date and will soon be requesting the contribution of the outstanding balance. fie may also ask you to assist us eventually in discussing MCa's viewpoint with railroad executives and those in other industries. Much work remains to be done, and there are many interests and groups involved whose views are entitled to be heard. I think you can take pride in the fact that MCa has established in these discussions a solid reputation for being accurate and informed in its proposals, fair and reasonable in recognizing the stake of others, and determined in advancing the interests of the chemical industry in the eventual settlement of this complex problem. CMA 068288 Exhibit "D1' Delaware CIC Activities Report of Glen Perry before the Board of Directors Manufacturing Chemists' Association, Inc, Wilmington, Delaware, October 13,1964 , Gentlemen, it is a pleasure to stand before you today, and to add my voice, representative of the Chemical Industry Council of Delaware, to those welcoming * u to the Fi-rst State. I might say that this is a real change of pace. This is far from ! first time that I have appeared before you, but it's the first time it isn't going to ' st you any money. - ' In the past I seem always to have had my hand out, either to get funds with uhich to carry on some activity such as the program of what was then called the education Advisory Committee, or the Public Relations Committee. Or I was plead3g desperately for money with which to meet some crisis endangering the good ,eputation of our industry, ranging, perhaps, from racial integration to Rachel Carson. Of course, I may be back again in my old-time role sometime, for I seem, ,n a moment of weakness, to have let myself be tapped as chairman of MCA's new Chemical Industry Council Advisory Committee. So far as I know, I am the only man ! who has ever chaired three separate and distinct MCA working committees. As a :hree time loser, it behooves me to walk cautiously, for if they get me once more, ; guess under New York State law it's a life sentence. So far this has been a pretty subjective message. It reminds me of the egocentric actor who had been talking about himself to his dinner companion for half an hour. He broke off, finally, and said, "But enough about me. Let's talk about you. How did you like my new show?" In other words, I'd better get to the topic I was asked to discuss, which is a brief rundown on the CIC here in Delaware. While we didn't call it that, CIC in Delaware really began with the first Chemical Progress Week, in 1954. There was tremendous enthusiasm for that oc casion, and I can tell you that no service club in the state was too small or too unimportant to escape one of our speakers. The second year saw things come off the boil a little, and by the third year we realized we were wearing out our welcome. Not only that, we were getting bored ourselves with doing the same old thing. By the fourth year, as I recall, MCA headquarters decreed that observance of Chemical Progress Week should be optional, and we optioned it just about down to the vanishing point. But something had happened that was important, and that some thing was the habit of working together toward a common public relations objective that CPW had instilled in Atlas, Du Pont, and Hercules. I think you might say that our CIC organization, as opposed to CPW shows, and things of that sort, came into being just about then. We got together, for example, to handle the Delaware distribution of the MCA Facts Book to libraries, schoolteachers, political leaders, and others. It was logical to do this jointly, since it avoided the otherwise inevitable duplication of effort. ` And from time to time other things came along that could better be handled jointly. This embryonic CIC was a three-man venture, involving Syd Steele of Atlas, Ash Burslem of Hercules, and myself; and we passed the chairmanship around the way ij^toe Harlem Globetrotters pass a basketball in their warm-up drill. It was all very in formal, and it worked very well indeed. 1 CMA 068289 3 2 It was in 1957 that we got interested in giving Chemical Progress Week ano^ whirl. This time we wanted to try something different, completely different. We to put on a day-long seminar on the campus of the University of Delaware for all sciej* and mathematics teachers in the state. We called it New Frontiers Day, and it was tie in with the International Geophysical Year. It had three sections, one devoted to QUte space, one to the depths of the sea, and one to glaciers in the Arctic and Antarctic, y university loaned us an auditorium, in Wolf Hall, and also gave us luncheon in Kent Ha This was a pretty big deal, and the local American Chemical Society chapte joined in with us and the university to make it a success. Paul Mayfield of Hercules *4 state CPW chairman, and Dean Kakavas of the university welcomed more than 3 50 teachers at 9:45 A.M. The first speaker was James J. Dugan, an associate of Dr. Hap Edgerton at M.I.T. and Captain Jacques-Yves Cousteau. He talked about the ocean <je Next Dr. William O. Field, director of the Department of Exploration and Field Research for the American Geographical Society, discussed the exploration of glaciers. And after lunch Dr. John A. Sanderson, superintendent of the Optics Division of the U.S. Naval Research Laboratory, talked about outer space. He had with him a cutaway model of the first successful American satellite, the Vanguard, which it is estimated will be circling in space for a thousand years. All in all, it was quite a day. One of the things that made it memorable was the necessity for getting Du Pont, Hercules, and Atlas scientists to take over the class. ' rooms of the high school teachers so they could get away for the meeting. This still stands as our most ambitious, and I think perhaps our most successful, single project. In later years we put on one-day programs for the presidents of teachers colleges within a 25-mile radius of Wilmington, for heads of Women's Clubs in the Wilmington area, for preachers and ministers, for school guidance counselors. And of course we carried on our less spectacular work of distributing material. In this connection, we found out about three years ago that local high school chemistry students had no safety glasses for use in lab work. Our CIC took it upon it self to remedy this defect, both to inculcate habits of working safely and to protect students' eyes. We gave more than a thousand pairs to the local school chemistry depart ments . Well, one day our little closed corporation was chewing the rag in my office, when somebody mentioned the fact that Stauffer was coming to town, and shouldn't it be invited to join with us. Somebody else recalled that Allied had a plant up in Claymont, or rather half in Claymont and half in Marcus Hook, straddling the Delaware-Pennsylvania border. We invited both, and they accepted, which brought Jim Call of Stauffer and Spike James of Allied into the picture. Jim Call was, a year or so later, elected chairman, the first time the position had gone outside the three native companies. And it was during his chairmanship, I believe, that we began to hear rumors of a number of small chemical companies on the grounds of the Greater Wilmington Airport. We decided to beat the bushes and see what came out. What came out were six small companies. Did they want in on the Delaware CIC? They did. And so, all of a sudden, adding SunOlin and Avisun, we found ourselves with 13 members where there had been three, a series of monthly luncheon meetings, and a strong desire to be more active. I want to say, by the way, that your hosts have invited CMA 068290 [oca.1 CIC representatives to be present at the dinner tonight, and I hope you 11 go out jar way to greet them. Not all of them are MCA members, but even Du Pont was a ''\e company once - - it was started, you will recall, on a total capital of $36, 000 -r ^ew Deal dollars, of course -- and some of these CIC outfits may grow large enough ( MCA one of these days. I certainly hope so. ^ Anyway, we -- that is to say, the Delaware CIC, with Spike James, manager of allied plant, now our chairman - decided the time was ripe to do something about roving relationships between the Delaware chemical industry and the state government, '^planned a dinner at the Treadway Inn in Dover for last April. We invited the Governor l*d the members of the State Senate and House, We persuaded industry leaders like i h Gottshall, here, and Dave Dawson, and Henry Thouron, to agree to be present. We thought it would be wise, for this first one at least, not to have a program jke sort the Jersey CIC puts on so well in Trenton, but to content ourselves with a few 'jr(is of welcome by Dave, who of course was at that time chairman of your Board, with ! ,,eply from Governor Carvel, It worked out pretty well. Only about half of the legislators turned up, but those * no didn't come sent their deputies, and it was interesting to us to note that the number of ^ge sitting down to eat came within one of the number of places we ordered set. The {gislators who did show up seemed to have a good time, and they certainly mixed well 4lth the industry people. We believe it went well enough so that when we do it again -- we haven't decided whether it will be next spring or the one following -- it is reasonable to hope that a lot of egislators who stayed home will attend. We are considering whether or not to invite 3e legislators, or subdivisions thereof, to come to Wilmington to see our laboratories, i;r something of the sort, although no decision has been made. We do have one more event scheduled for this year, and that is an afternoon reception for the Delaware press and radio people. It happens on the twenty-third , and I,gain there will be no program beyond a brief greeting by Ralph Gottshall. Like our |earlier programs, this is rather on the experimental side and we hope it will, if it [succeeds, furnish a useful example for other CICs. That's about where we are now. In the future, I believe we shall become involved nore closely with the chemistry teachers of New Castle County. We shall continue to serve as the spokesman for the chemical industry in this state. We shall continue to serve as a coordinating agency for industry efforts of various kinds in the state, and in his area I'd expect our usefulness to increase as we find opportunities to demonstrate what *e can do. There are, after all, many times when it is much better to have an industry aice in Delaware, rather than the voice of a single company, or of a number of companies. These things are, really, the justification for the existence of a CIC, and we're available. Thank you. CMA 068291