Document B88MGvOKQnj28LEJOG0jEmvak

( D o2) MINUTES of the ninety-seventh meeting of the Directors of the Manufacturing Chemists' Association, Inc., held at Del Monte Lodge, Pebble Beach, California, on March 9, I960, at 10:30 a.m. (PST). There were present: Mess rs . Pete r C . Allen L. G. Bliss Peter Colefax John T. Connor R. L. Cunningham Lee V. Dauler David H. Dawson J. Robert Fisher Kerby H. Fisk Joseph Fistere Marlin G. Geiger John L. Gillis John E. Hull R. C. McCurdy Charles S. Munson Carl F. Prutton Robert B. Semple Hans Stauffer R. W. Thomas James C. White M. F. Crass, Jr. Alternates: A. E. Albright (for Hans Stauffer) F. A. DeMaestri (for Theodore Marvin) Henry L. Ford (for James C. White) J. J. B. Fulenwider (for A. E. Forster) William P. Gage (for Marlin G. Geiger) Kenneth H. Hannan (for Howard S. Bunn) John A. Hill (for Charles S. Munson) Harold E. Thayer (for Joseph Fistere) J. V. Vernon (for Carl F. Prutton) Harry B. Warner (for John R. Hoover) General Counsel: Henry H. Fowler, Fowler, Leva, Hawes & Symington Present by Invitation: Attached to these Minutes as Exhibit "A" is a list of registrants for the over-all three day program. In calling the meeting to order at 10:30 a.m. , Chairman Connor welcomed the Directors, Alternates, and guests to this third West Coast Regional Meeting. He invited those present to ask questions and to enter actively into the discussion. Mr. Connor then received a resolution of appreciation to the Stauffer Chemical Company for the reception and dinner accorded those present in San Francisco on the evening of March 7, which was unanimously voted. ^ A second resolution was also passed expressing appreciation of those present . Wb to the Arrangements Committee for handling all meeting details, including facilities, 1I transportation, and entertainment. The Committee consisted of Mess rs. Peter I Colefax, Ernest Hart, T. G. Hughes, and Hans Stauffer, assisted by Messrs. CMA 067770 ................................. `......................." I. MINUTES OF FEBRUARY 9, i960, MEETING. (obi) The Minutes of this meeting were duly approved as submitted to the members. II. MEETING ANNOUNCEMENTS AND PROGRAM. On behalf of the Arrangements Committee, Mr. Hart outlined program and entertainment for the entire meeting period. III. REPORT OF THE EXECUTIVE COMMITTEE. Mr. Connor stated that a breakfast meeting of the Executive Committee had taken place that day and that a number of the items discussed would be taken up in their respective places on the Board agenda. He then called on Mr. Dawson to report on several items. (a) Food Additives. During consideration of the proposed Public Relations food additives project for fiscal 1960-61, which was presented to the Board for advance consideration by Mr. McCurdy at the February 9 meeting, the Executive Committee discussed the need for scientific data which could form the basis for sound legislation in this field -- particularly with respect to the Delaney Cancer Amendment and the possibility of permissible tolerances thereunder. It was the consensus of the Executive Committee that the Food Additives Committee should be requested to evaluate the proposed PR program from all standpoints, including that of adequacy, taking into account the need for possible scientific factfinding at universities or elsewhere, as a possible supplement to, or partial replacement for, the PR program as proposed. An invitation will then be extended to the Chairman, and possibly to other members of the Food Additives Committee, to report to the Board on April 12 and present the recommendations of that Committee with respect to this over-all matter. (b) Metals Steering Committee. In order to facilitate rotation of its members in accordance with Terms of Reference, the Metals Steering Committee has recommended that its membership be increased to eight from the present seven. ON MOTION duly made and seconded, it was VOTED: That the recommendation be approved. (c) MCA Office Organization. Mr. Cleveland Lane, who has been employed as Assistant to the President for Public Relations and Education for approximately the past six years, has resigned from the Association, effective this spring. Present plans do not call for a replacement. Instead, Allan E. Settle and William E. Chace, presently in charge of Public Relations and Education, respectively, and who formerly reported through Mr. Lane, will report directly to the President and the Secretary. CMA 067771 (6b4) IV. REPORT OF THE TREASURER. Financial Report, June - February I960. The financial report for the nine months ending February 29, 1960, was summarized by the Treasurer. ON MOTION duly made and seconded, it was VOTED: That the report be accepted and placed on file. V. BOARD OF DIRECTORS. (a) Membership Committee. Mr. Thomas reported that applications had been received from: Canadian Aniline & Extract Co. limited Clinton Chemical Company and that, in the opinion of the Membership Committee, the applicants were qualified for membership under the Association's By-Laws: ON MOTION duly made and seconded, it was VOTED: That the applications be approved, subject to the 30-day notification to members provided under Article III, Section 4, of the By- Laws. (b) Program Committee -- 88th MCA Annual Meeting. General Hull reported that the two principal speakers had been secured for the 88th Annual Meeting at White Sulphur Springs, W. Va., on June 9-11. Speaker at the business session on the morning of June 9 will be Mr. H. E. Humphreys, Jr., Chairman, United States Rubber Company. Guest speaker at the banquet on the evening of June 10 will be Arthur S. Flemming, Secretary of Health, Education, and Welfare. Sir William Garrett, Chairman, Association of British Chemical Manufacturers, London, has accepted our invitation to attend the Annual Meeting. He will appear briefly on the platform at the business session on June 9 in order to extend the greetings of his Association to MCA member representatives. (c) Business and Defense Services Administration, U. S. Department of Commerce. In accordance with action taken at the last meeting, a committee, con sisting of Messrs. G. E. Holbrook, Chairman; George Fowles, and Robert Prather, has been appointed to confer with BDSA officials. All three members have served as WOC's in the BDSA Chemical and Rubber Division. They will come to Washington later in the month, and it is expected that a report will be presented at the April 12 meeting. The Secretary reported that Food Machinery and Chemical Corporation had nominated Mr. Bert S. Taylor to assume the administrative advisership of the CMA 067772 (DO 5) BDSA Chemical and Rubber Division effective July 1, I960, succeeding Walter L. Rippeteau, Wyandotte Chemicals Corporation, the present encumbent. Union Carbide Corporation has expressed its willingness to nominate an encumbent for a six months' term beginning January 1, 1961, and Phillips Petroleum Company has indicated that it will present a nomination to cover the July 1 - December 31, 1961, term. Other members present were invited to submit nominations for subsequent terms in order that a three-year program might be re-established. (d) General Hull reported that he had made arrangements to fly directly from San Francisco to Mexico and South America in connection with his Government advisory responsibilities. He will return April 11 and will be present at the April 12 Directors meeting in New York City. VI. TECHNICAL AND FUNCTIONAL COMMITTEE APPOINTMENTS. The following committee appointments were approved: (a) Education Advisory Committee. Sydney Steele, Atlas Powder Company. (b) Government liaison Technical Committee on Metals. C. L. Arnold, Stauffer Chemical Company. Charles R. Lindsay, III, American Potash & Chemical Corporation, replacing James R. Murray. (c) Nuclear Committee. Charles R. Lindsay, ifi, American Potash & Chemical Corporation, replacing James R. Murray. (d) Public Relations Advisory Committee. William D. Wyatt, United States Steel Corporation, replacing David Ferguson. (e) Traffic Committee. H. W. Jervis, Hercules Powder Company, Inc., as Chairman. J. G. Robison, Pennsalt Chemicals Corporation, as Vice Chairman. Oscar Swiedler, American Cyanamid Company, replacing G. W. Van Schaick. VII. MCA PROGRAM AND STAFF REPORT. General Hull presented a 12-minute report covering current MCA operations and program. Copy of this report is attached to these Minutes as Exhibit "B". vm. ADDITIONAL BUSINESS. Society of the Chemical Industry. Mr. Munson reported that the SCI Medal for 1960 had been awarded to Hans Stauffer. Presentation will be made in New CMA 067773 (666) York City next October. On behalf of those present, Chairman Connor congratulated Mr. Stauffer and expressed the gratification of the Board of Directors for this well deserved recognition. There being nq further business to come before the meeting, it was unanimously resolved to adjourn at 11:15 a.m. M. F. Crass, Jr. Sec retary APPROVED: John T. Connor Chairman 2 Attachments. CMA 067774 Exhibit ''A1' Registrants for MCA Board of Directors Meeting and Related Events Del Monte Lodge, Pebble Beach, California -- March 8-10, 1960 | Adams, G. W. , Canadian Industries limited ^ Albright, A. E. Stauffer Chemical Company Allen, Peter C. Canadian Industries Limited Anderson, E. E. Metal & Thermit Corporation Bliss, L. G. Foote Mineral Company Brandenburger, R. L. Monsanto Chemical Company Campbell, A. H. Food Machinery and Chemical Corporation Colefax, Peter American Potash & Chemical Corporation Connor, John T. Merck & Co. , Inc . Crass, M. F. , Jr. MCA Cunningham, R. L. Ohio Ferro-Alloys Corporation Dauler, Lee V. Neville Chemical Company Dawson, David H. E. 1. du Pont de Nemours 8t Co. , Inc. Dawson, William E. California Chemical Company | Day, C. A. [ Richfield Oil Corporation Day, David E. Richfield Oil Corporation de Guigne, Christian Stauffer Chemical Company DeMaestri, F. A. Michigan Chemical Corporation Doan, Leland A. The Dow Chemical Company Doan, Leland I. The Dow Chemical Company Edgar, W. Coleman Hercules Powder Company, Inc. Ellis, George C. Stauffer Chemical Company Etter, Harold P. Air Reduction Company, Inc. Fisher, J. .Robert Gamma Chemical Corporation Fisk, Kerby H. Allied Chemical Corporation Fistere, Joseph Mallinckrodt Chemical Works Ford, Henry L. Tennessee Eastman Company, Division of Eastman Kodak Company Fowler, Henry H. Fowler, Leva, Hawes & Symington Francis, Wm. J. F. American Potash & Chemical Corporation Frederick, D. S. Rohm & Haas Company (OVER) CMA 067775 rT^J ii --22- Fulenwider, J. J. B. Hercules Powder Company, Incc.. Kilbourne, W. Grant J. R. Simp lot Company Gage, W. P. W. R. Grace & Co. Land, Hugh C. Pennsalt Chemicals Corporation Geiger, Marlin G. W. R. Grace & Co. Lawrence,P. H. B. F. Goodrich Chemical Company Gill, James M. Ethyl Corporation Lewis, Milton Hancock Chemical Company Gillis, John L. Monsanto Chemical Company McCurdy, R. C. Shell Chemical Corporation Grady, H. J. California Spray-Chemical Corporation Meiklejohn, Roy M. Allied Chemical Corporation Groben, Richard L. Chas. Pfizer & Co., Inc. Gunder, Roger W. Stauffer Chemical Company Hannan, Kenneth H. Union Carbide Corporation Hart, Ernest Food Machinery and Chemical Corporation Hill, John A. Air Reduction Company, Inc. Hiskey, Claude F. Richfield Oil Corporation Hooker, Horace W. Hooker Chemical Gox4Vration '-.ra*3 Hughes, J. A. Diamond Alkali Company Hughes, T. G. Oronite Chemical Company Hull, John E. MCA Meyer, Jeff Eastman Chemical Products, Inc., Subsidiary of Eastman Kodak Compel Morrisroe, John Pilot Chemical Company of California Moyer, Warren H. Chipman Chemical Company, Inc. Munson, Charles S. Air Reduction Company, Inc. Nantz, Thomas B. B. F. Goodrich Chemical Company Parkhurst, George L. California Chemical Company Phinney, Donald C. Productol Company Powell, Fred California Chemical Company Prutton, Carl F. Food Machinery and Chemical Corporat Reed, Homer tk w Jopke, K. L. Rohm & Haas Company CMA 067776 -3- Reilly, Peter C. Reilly Tar & Chemical Corporation Thayer, Harold E. Mallinckrodt Chemical Works Riemer, Hugo United States Borax k Chemical Corporation Thomas, R. W. Phillips Petroleum Company Rothrock, Edward S. Stauffer Chemical Company Vernon, J. V. Food Machinery and Chemical Corporation Semple, Robert B. Wyandotte Chemicals Corporation Warner, Harry B. B. F. Goodrich Chemical Company Shanaman, Fred C. Pennsalt Chemicals Corporation Weber, Paul E. Chas. Pfizer & Co, , Inc. Shiffler, William H. California Chemical Company Skov, Robert L. Hercules Powder Company, Inc. Stauffer, Hans Stauffer Chemical Company Stauffer, John Stauffer Chemical Company Weigel, Rothe Victor Chemical Works, Division of Stauffer Chemical Company Wheeler, Rollo C. Stauffer Chemical Company White, James C. Tennessee Eastman Company, Division of Eastman Kodak Company Wishnick, Robert I. Witco Chemical Company, Inc. CMA 067777 Exhibit "B" Remarks of the President, General J. E. Hull, USA Retired Before the Regional Meeting of the MCA Board of Directors March 9, I960, at Pebble Beach, California Chairman Connor, Members of the Board, Guests; On the always welcome occasion when we hold one of our regional board meetings on the West Coast -- of which this is the third for me -- I am reminded of what seems to be a classic bit of bad judgment recorded in the history of the state. Probably the first white man to see the coastline of California was a Portuguese named Cabrillo sailing under the Spanish flag about 1542. He and his companions reportedly dropped anchor in what is now San Diego Bay and then they proceeded up the coast. They were so disappointed with what they saw, that the Spanish did not return for 60 years. I am happy to say that our Board is not guilty of such poor judgment. Each time those of us from other areas are privileged to come here and see at first hand the vigorous growth as well as the natural beauty, we are impressed. The vigor of the growth, particularly of the chemical industry, certainly is amply demonstrated in the figures of our just completed annual construction survey of the industry. In 1959 for the three West Coast States, 93 projects, with a total estimated in vestment of $202 million by the chemical industry, were underway, planned, or completed. This is up from the 90 projects with a total investment of $173 million for the previous year. At the present time, there are more than 50, 000 employees of the chemical industry on the West Coast, and the latest Bureau of Census figures show the value added by manufacture of chemicals rose nearly 30% in three years. For our construction survey on a national basis, 1959 again, for the ninth straight year, saw an investment by the chemical industry well in excess of a bil lion dollars for privately financed facilities. For any who may not have seen a copy of this survey, we would be pleased to send one upon request. Some of the recent activities of MCA have taken on more and more of an inter national flavor. The West Coast chemical industry is taking a key role in the activity of our newest committee -- that on International Operations. Mr. T. G. Hughes of Oronite is Chairman of this Committee, which held its first meeting just a few weeks ago. Among other things, the extent of Communist dumping in world markets is now being determined through a questionnaire to Members; a procedure for cooperation CMA 067778 2- - with Indian business and government officials has been set up; and taxes applying to foreign subsidiaries or affiliates are being studied by this new Committee. In connection with GATT negotiations for compensatory concessions to be conducted later this year, MCA has urged Government agencies to confine nego. tiations to specific products rather than classes or baskets. The same position was stated to the U. S. Chamber of Commerce when it was reviewing its propo sals for foreign trade policy. In the research area, the project at Carnegie Institute on properties of cherni. cal compounds has been enlarged to include spectral data. The ninth lot of data sheets on physical properties of pure compounds and the first spectral data sheets will be distributed in a few weeks. An important specialized activity of MCA pertains to plastic materials and ia under the direction of the Plastics Committee. In the interest of carryingConfundan research, and special programs pertaining to the building industry, financing by interested members is provided on a voluntary basis. A major contribution in the field of plastics is MCA's Plastics-In-Building Program, instituted in 1957 because of the increasing importance of the design and construction industries as immediate and potential outlets for plastics. This promotes the acceptance of plastics in building through educational work with architects, builders, fire protection authorities, and plastics producers and fab ricators. JAuch of this program has been in the building code field, working with the International Conference of Building Officials -- an important group in the West Coast area. On Capital Hill in Washington, comparatively little legislation of special interest to MCA members has been acted on by Congress so far this year. One bill (H, R. 3610), to authorize the increase of Federal contributions for local sewage plant construction from $500 million to $900 million was vetoed by the President on grounds that the responsibility for handling this problem is a local one. .C -9/,- The legislative activity of greatest immediate concern to MCA members has been the hearing by the House Committee on Interstate and Foreign Commerce on proposed colof additive legislation. The Senate passed a bill last year that was generally satisfactory, but the House seems ready to write in a so-called "cancer clause." MCA testified in,favor of the proposed color legislation but against the cancer clause, pointing out that the clause is so restrictive as to harm beneficial activities of vital importance to the public. We recommended that questions con cerning the safety of food or color additives be determined by competent scientists and not by Congressional action, no matter how well intentioned. The House Com mittee has not acted yet, but we were gratified when the President announced that he had asked for a report on the subject from his Science Advisory Committee and scientists from the Departments of Agriculture, and Health, Education, and Welfar CMA 067779 -3- MCA testified in favor of the Boggs Bill proposal which recently was reported favorably by the Ways and Meanj Committee, to allow certain domestic business corporations which are called "foreign business corporations" to defer tax on in come earned abroad until the income is brought back to the United States. MCA also testified in favor of taxing at corporate rates the income coopera tives receive from activities such as manufacturing and mining, as well as their retained net margins. The main activity of the Food Additives Committee during the past few months has been the development of the MCA position on the color additive legislation. A subcommittee on the cancer question hopes to develop data to show that it is pos sible to establish a safe level for possible carcinogens. Another important activity has been the preparation of a new Food Additives Manual on "How to Proceed under the Food Additives Amendment," which should be ready soon. This has been reviewed by FDA and strongly endorsed by that agency. It is eventually hoped to have a Manual consistingaif eight parts covering Federal, state, local, and foreign legislation in this field. Turning now to industrial relations, you are aware that the Association has fought, and will continue to fight, for collective bargaining at the plant level, as opposed to company-wide or industry-wide bargaining. Two major labor relations jobs for the industry were handled by the Association during late January and early February. I refer here to the four-day hearings held by the U. S. Department of Labor'-s Public Contracts Division on minimum wages for the chemical industry under the Walsh-Healey Public Contracts Act, and to the du Pont Craft Severance Case, before the National Labor Relations Board. In the Walsh-Healey Proceeding, MCA represented the industry and forcefully presented arguments for realistic minimum wages varying according to geographic regions. Under this law, as you know, the Secretary of Labor sets minimum rates that must be paid by Government contractors. Opposing us were organized labor and Government spokesmen who urged inflationary rates approximately double the current statutory minima -- to apply on a nation-wide basis without taking into account local or regional wage patterns. We retained expert counsel and put on eight staff and member company witnesses. A supporting brief will be filed next week. Millions of dollars are involved in this proceeding, and I can go so far as to state that the very existence of some of our members' plants, particularly in rural areas and in the Southeast, may be at stake. We've done what we think is a most effective (although expensive) job and will now await developments. At issue in the Craft Severance Case was whether or not the chemical industry, as a result of a recent Supreme Court decision, could join the steel, aluminum, lumber, and wet milling industries in the eyes of the National Labor Relations Board as being exempt from the splitting off of small craft bargaining units from plants having a company-wide bargaining unit. Many of our firms are plagued with NLRB elections and decisions of that body to permit multiple bargaining units in a single -4 - plant. In a manner similar to the American Potash Case seven years ago, the du Pont Company petitioned NLRB to deny recognition of a craft anion at one of its otherwise completely organized Texas plants, MCA received permission to inter vene in this case as Amicus Curiae and submitted a statement urging the outlawing of craft severance elections in the chemical industry. Early last week, the Board handed down its decision, refusing to apply the Pittsburgh Plate Glass decision to the chemical industry, and ordering an election at du Pont's Houston plant. Since there is no appeal from an NLRB decision, the election must be held. Farther action with respect to the principle involved must await certification of the election results by the Board. Should MCA and its member companies succeed in ultimately obtaining a favorable court decision, this might well prove to be a milestone in the labor relations history of our industry. Much of the activity of the Labels and Precautionary Information Committee has been concerned with a revision of the manual on "Warning Labels, " and it is hoped to issue the revised edition during I960. Committee activity has also been devoted to the legislative aspects of precau tionary labeling. The Senate Bill S, 1283 which MCA supports has been reported out of committee and is expected to pass the Senate. Senate action would give added impetus to the drive to obtain hearings in the House and to get the legislation passed by the House. Based on data furnished by MCA, which was developed by our Traffic Commit tee and the American Petroleum Institute, the Association of American Railroads granted an interim increase on tank-car-mileage compensation from four cents to 4-1/2 cents per mile, effective Novembbr 1, 1958. As the result of recent unoffi cial action taken by the AAR Board of Directors, it is expected that an additional one cent per mile will be granted soon. When this takeg place, in&mber fleet operators will benefit to the extent of almost $6 million per year.k/ At the suggestion of the Atomic Energy Commission, the Nuclear Committee made a survey of the planned fuel manufacturing program for their New Production Reactor to detert**ipet the ability of private industry to supply the fuel. The survey concluded that pxfcrMlft industry has facilities and capabilities to supply the fuel on schedule, and tba^eontractual arrangements can be made on a fixed-fee unit price for materials. This Committee also prepared a statement for the record of the current hearings of the Joint Congressional Committee on Atomic Energy on the status of the atomic energy industry. The statement recommended reaffirmation of the national policy, as stated by the Congress in the Atomic Energy Act of 1954, that the national nuclear development effort shall be conducted so as to "strengthen free competition in private enterprise"; Note: Information received later during the meeting confirmed this action. Official Railroad approval has now been given this action. CMA 067781 5- and that Government-owned facilities be used for non-weapon atomic research, development, and production, only when private industry facilities are not avail able; and that the National Laboratory and other AEG facilities not duplicate indus try's production capabilities. At the regular Midyear Meeting in New York in November, I spoke of the seri ous accident trend which the safety statistics on the chemical industry had revealed to us. Now that final figures for the year are available -- and they show an increase in the frequency rate of 13 percent for 1959 over 1958 -- I want to reiterate my plea to each of you to take whatever steps are appropriate to help us resume the enviable safety record of the industry. The General Safety Committee can make recommen dations, but it is a management responsibility to implement the steps which could reverse the trend. First of a new series of safety publications called Safety Guides is now avail able. Its title is, "Health Factors in Safe Handling of Chemicals." The second, now ready for publication, will deal with good housekeeping in chemical plants as a contribution to safety. Our Insurance Committee will hold three symposia during I960, the next planned for May 24th in New York City. Speakers from Factory Insurance Association will discuss Use and Occupancy Insurance. Prominent among current considerations of the Water Pollution Abatement Committee is the planning for further sponsored research at the Franklin Insti tute on taste and odor sources in water. Federal legislative attention in this field is typified by extensive hearings by the Senate Select Committee on Water Resources, a bill proposing a National Re sources Council, and an announcement in the President's budget message that HEW plans to recommend stronger enforcement provisions in the Water Pollution Control Act and authority for more Federal leadership in combating air pollution. State bills continue to make their appearance in profusion, especially on air pol lution control, and our committee is making its influence felt constructively wherever possible. The several phases of our educational committee activities continue, and probably the most important one since my last report is that in connection with elementary school materials. During the last two weeks of February the staff conducted a testing program for its new 52-page science booklet for elementary school teachers. Tests were carried on in more than 50 schools, and revisions indicated have been matje. A printing of 60,000 copies is now on the press, and copies will be distributed free throughout the country on a quota basis -- the number of elementary school teachers in each area determining such quotas. The volume of queries from all levels of the press in connection with the food additives program has required a considerable amount of time in the past few months as you may well imagine. The staff has canvassed all the major CMA 067782 6- - f magazines in the last two weeks, and the effort has done much to establish our organization as a reliable source of information on the subject. In addition, the Public Relations Advisory Committee, with staff help, has in its final-stages a major program of food additive education which will be aimed at dietitians, home economists, food editors, and other key audiences involved in this complex que stion. I hope that this brief report has given you some insight into some of the area3 where MCA is working to further the already enviable position held by our industry Thank you. CMA 067783