Document BR3d66M8LMB4peQdMB3y0rpvk

AGENDA MEETING OF THE MCA BOARD OF DIRECTORS 11:00 a.m. (EDT), Tuesday, May 14, 1968 Union Club, New York City 1. MINUTES OF MARCH 11-14, 1968, MEETING. ,j. REPORT OF THE SECRETARY-TREASURER. (a) Financial Report for Eleven Months Ending April 30, 1968. (b) Employment of Auditors. (Enc. ) III. BOARD OF DIRECTORS. (a) Budget and Financing for Fiscal 1968-69. (b) Nominating Committee. Officers and Directors for 1968-69. (c) Terms of Reference and Membership for Policy Study Committee. (d) Transportation Hazards Information Program. (e) Special Assessment for Hopper Car Mileage Allowance Study, ICC Proceeding 8406. (f) Revised Rules of Organization and Procedure, Washington Advisory Committee. (g) Regional Meetings for 1968-69(h) Annual Report for 1967-68. (i) 96th Annual Meeting. Final Arrangements and Registration. (j) Ratification of Appointment of Alternate and Committee Appoint ments, approved by the Executive Committee on April 8, due to cancellation of the April 9 Board meeting. (Enc. ) (Enc. ) (Enc. ) (Enc. ) (Enc. ) IV. COMMITTEE APPOINTMENTS. (a) Air Quality Committee. Bernard M. Kostelnik, Reynolds Metals Company (b) Chemical Industry Council Advisory Committee. E. W. Bacigalupi, Commercial Solvents Corporation John Main, E. I. du Pont de Nemours & Company (c) Chemical Packaging Committee. Graham T. Stewart, The Dow Chemical Company --as Chairman P. J. Kirby, Tennessee Eastman Company -- as Vice Chairman (d) Education Activities Committee. Gordon L. Foote, The Procter & Gamble Company (e) Patent Committee. Howard I. Forman, Rohm and Haas Company l STAFF REPORT. VI. COMMITTEE REPORT. Air Quality Committee -- Jerome Wilkenfeld, Chairman ADJOURNMENT. CMA 068859 Note: Next Regular Directors' Meeting -- Reception at 6:00 p. m. (EDT), Wednesday, June 5, 1968, in the Tyler Room, The Greenbrier, White Sulphur Springs, West Virginia, followed by dinner meeting at 6:45 p.m. in the Fillmore and Van Buren Rooms. INUTES of the one hundred seventy-sixth meeting of the Directors of the Manufacturing Chemists' Association, Inc., held at the Union Club, New York City, onTuesday, May 14, 1968, at 11:00 a.m. (EDT). There were present: F. Leonard Bryant David H. Dawson George H. Decker George S. Dillon Earle S. Ebers Louis K. Eilers Irb H. Fooshee Maurice F. Granville Kenneth H. Hannan Alexander Lewis, Jr. A. R. Marusi W. Kenneth Menke Max A. Minnig Jack M. Pope John J. Powers, Jr. W. T. D. Ross Edward R. Rowley Charles H. Rybolt Clifford D. Siverd Charles W. Smith Henry A. Thouron Jesse Werner John E. Wood, III James R. Carnes Alternates: C. O. Davidson (for E. B. Brooks) Robert J. DeLargey (for Thomas M. Ware) Leonard Hynes (for W. T. D. Ross) M. M. McGrew (for M. Roger Clapp) John K. McKinley (for Maurice F. Granville) Robert C. Swain (for Clifford D. Siverd) General Counsel: Lloyd Symington Present by invitation: Jerome Wilkenfeld, Hooker Chemical Corporation John C. Zercher, Celanese Chemical Company In the absence of Mr. Logan and Dr. Gerstacker, General Decker pre sided. I. MINUTES OF MARCH 13, 1968, MEETING. The Minutes of the previous meeting of the Board of Directors were duly ap proved as submitted to the members. II. REPORT OF THE SECRETARY-TREASURER. (a) Financial Report for Eleven Months Ending April 30, 1968. The finan cial report for the eleven months ending April 30, 1968, was summarized by the Sec re tar y-Treasurer. ON MOTION, duly made and seconded, it was VOTED: That the report be accepted and placed on file. CMA 068860 2- - (b) Employment of Auditors. On recommendation of the Secretary reasurer and ON MOTION, duly made and seconded, it was VOTED: That the firm of Bond, Beebe, Bond & Bond, Certified Public Accountants, be appointed to conduct the annual audit of the Association's books prior to the expira tion of the fiscal year. Arrangements have been made by the staff to close the books on May 15 for audit beginning May 20. HI. BOARD OF DIRECTORS. (a) Budget and Financing for Fiscal 1968-69. The Secretary-Treasurer, on April 15, transmitted to Directors a detailed documentation of the proposed budget and financing for fiscal 1968-69, as recommended by the Executive and Finance Committees. This was summarized by Dr. Werner at the request of the Chairman. Following discussion, ON MOTION, duly made and seconded, it was VOTED; That a budget for the new fiscal year in the amount of $1, 617, 925 be ap proved for presentation to the membership, this to consist of a basic budget of $1,214,415 and a project budget of $403, 510; the funds to be raised from membership fees utilizing the current sales-fee classification plus income from the sale of publications, investments, and general meetings. Also approved was a plastics activities budget of $80, 439 for the new fiscal year, details of which were transmitted to the Directors by the SecretaryTreasurer on May 6. Copies of the budget and financing proposal, together with the tentative agenda of the 96th Annual Business Meeting on June 6, will be sent to the Executive Contacts on May 17. (b) Nominating Committee. Officers and Directors for 1968-69. On behalf of the Nominating Committee, Dr. Dawson presented the following slate of officers and Directors for submittal to and action by the membership at the 96th Annual Business Meeting on June 6. These nominations were accepted without comment. CMA 068861 ~S -3- airman of the Board -- Carl A. Gerstacker, Chairman of the Board The Dow Chemical Company Chairman of the Executive Committee -- F. Leonard Bryant, Chairman of the Board, Hooker Chemical Corporation President -- George H. Decker, MCA Vice Presidents -- Irb H. Fooshee, Executive Vice President, Allied Chemical Corporation Charles H. Rybolt, President, Wallace & Tiernan Inc. Secretary-Treasurer -- James R. Carnes, MCA Directors: (Term Expires May 31, 1969) C. B. McCoy, President, E. I. du Pont de Nemours & Company Directors: (Term Expires May 31, 1970) Harry W. Buchanan, President, Virginia Chemicals Inc. Directors: (Term Expires May 31, 1971) Clifton C. Garvin, Jr. , Vice President, Standard Oil Company (New Jersey) Robert D. Goodall, Executive Vice President, W. R. Grace & Co. Ralph K. Gottshall, Chairman of the Board, Atlas Chemical Industries, Inc. Roger W. Gunder, President, Stauffer Chemical Company Leonard Hynes, President, Canadian Industries Limited Earl T. McBee, Chairman and President, Great Lakes Chemical Corporation L. J. Polite, Jr, President, Essex Chemical Corporation Clifford D. Siverd, President, American Cyanamid Company J. B. St. Clair, President, Shell Chemical Company Harold E. Thayer, Chairman and President, Mallinckrodt Chemical Works Harry B. Warner, President, The B. F. Goodrich Company (c) Terms of Reference and Membership for Policy Study Committee. Sent to Directors in advance of the meeting was a proposed directive setting forth the terms of reference and membership of a Policy Study Committee of the Board of Directors. Plans for formation of this committee were announced by Mr. Logan at the March 1968 meeting of the Board of Directors. Copy of the proposed di rective is attached to these Minutes as Exhibit A. ON MOTION, duly made and seconded, it was VOTED: That the terms of reference and membership of the Policy Study Committee be approved as set forth in the proposed directive. CMA 068862 -4- (d) Transportation Hazards Information Program. General Decker introuced John C. Zercher, a member of the Intercommittee Task Group on Transportation Hazards Information, who made a presentation of a proposed Trans portation Hazards Information program, as described in Exhibit B attached to these Minutes. Following discussion, ON MOTION, duly made and seconded, it was VOTED: That the proposed program be approved in principle and that the Intercommittee Task Group be authorized to complete the program for submission to other shipper and carrier groups for their support and ultimately to the Department of Transportation for approval. (e) Special Assessment for Covered Hopper Car Mileage Allowance Study, ICC Proceeding 8406. Sent to Directors in advance of the meeting was a pro posal of the Transportation and Distribution Committee for a special assessment to defray the cost of a covered hopper car mileage allowance study and to author ize MCA participation in ICC Proceeding 8406, as it pertains to covered hopper cars. A copy of the proposal is attached to these Minutes as Exhibit C. ON MOTION, duly made and seconded, it was VOTED: That the special assessment for the covered hopper car mileage allowance study and MCA participation in the related aspects of ICC Proceed ing 8406 be approved. (f) Revised Rules of Organization and Procedure, Washington Advisory Committee. Sent to Directors in advance of the meeting were revised Rules of Organization and Procedure for the Washington Advisory Committee, to gether with a summary of the changes proposed, copy attached to these Min utes as Exhibit D. ON MOTION, duly made and seconded, it was VOTED: That the Rules of Organization and Procedure of the Washington Advi sory Committee be approved as revised. (g) Regional Meetings for 1968-69. The following schedule of general regional meetings for fiscal 1968-69 was presented and approved: L.. -5Chicago, Illinois Regional Directors' Meeting November 25-26, 1968 New York City Semi-Annual Meeting March 10-11, 1969 Houston, Texas Regional Directors' Meeting April 14-15, 1969 Washington, D. C. Directors' Meeting and Congressional Reception June 11-14, 1969 White Sulphur Springs, West Virginia 97th Annual Meeting During July, a printed card schedule of the Directors' meetings will be pre pared and forwarded to all Board members. (h) Annual Report for 1967-68. Mr. Carnes reported that copies of the Annual Report in draft form were sent to Directors on April 30. They were in vited to review the draft and have their comments in the hands of the SecretaryTreasurer by May 10. The printed report will be mailed to all Executive Con tacts and members of Association committees on June 6, the date of the Annual Meeting. (i) 96th Annual Meeting. Mr. Carnes reported briefly on the arrangements and program for this meeting. Approximately 980 registrations have been re ceived from 165 member firms and the room accommodations made available by The Greenbrier have been exhausted. 1 ' (j) Ratification of Appointment of Alternate and Committee Appointments, : Approved by the Executive Committee on April 8. Handed to those present was i a list of appointments as alternate for a Board member and as officers and mem bers of committees, which were approved by the Executive Committee on April 8 due to cancellation of the April 9 Board meeting. A copy of the list is attached to these Minutes as Exhibit E. ON MOTION, duly made and seconded, it was VOTED: That the action of the Execu tive Committee in approving the ap pointments concerned be ratified. IV. COMMITTEE APPOINTMENTS. The following committee appointments were approved: (a) Air Quality Committee. Bernard M. Kostelnik, Reynolds Metals Company ' i CMA 068864 6- - I (h) Chemical Industry Council Advisory Committee. E. W. Bacigalupi, Commercial Solvents Corporation John Main, E. I. du Pont de Nemours & Company ~r (c) Chemical Packaging Committee. Graham T. Stewart, The Dow Chemical Company --as Chairman P. J. Kirby, Tennessee Eastman Company -- as Vice Chairman (d) Education Activities Committee. Gordon L. Foote, The Procter & Gamble Company (e) Patent Committee. Howard I. Forman, Rohm and Haas Company V. STAFF REPORT. General Decker summarized his report of developments in the Association's program of projects and activities since the last meeting. Copy of his complete report is attached to these Minutes as Exhibit F. VI. COMMITTEE REPORT. Chairman Jerome Wilkenfeld of the MCA Air Quality Committee reported the projects and activities of that Committee, copy attached as Exhibit G. There being no further business to come before the meeting, it was unanimously resolved to adjourn. Secretary-Treasurer General G, H. Decker President, MCA CMA 068865 EXHIBIT A PROPOSED DIRECTIVE POLICY STUDY COMMITTEE In June of 1962 the MCA Board of Directors appointed a committee to study the programs and policies of the Association and the means of carrying these out. The report of the committee was submitted in January of 1963. One recommendation of the committee was that, "Whether or not MCA as a whole continues to set up Policy Study committees such as this, the review of com mittees, in some form such as adopted here, should be carried on at regular intervals, say every two or three years." Approximately five years have elapsed since implementation of the recommendations of that report. Conse quently, it is considered desirable again to review the Association's programs a policies to determine if they are still appropriate and responsive to developments in Government, in industry, and in our society. The following are designated members of a committee to conduct the review: Kenneth H. Hannan, Chairman Chester M. Brown David H. Dawson Raymond F. Evans John L. Gillis Robert C. Swain The Chairman of the Board, the Chairman of the Executive Committee, and the President are ex-officio members of the committee. The committee should determine whether the objectives of the Associa tion, as approved by the Board of Directors on March 12, 1963, are still valid. It should also consider all current activities in which the Association is CMA 068866 2- - engaged with the object of arriving at a judgment as to their appro priateness or need for continuance in decreased or expanded form and their priority with respect to other activities in which the Association is engaged or should undertake. Special attention should be given to the structure and functioning of technical and functional committees with a view to determining whether "General Principles Applicable to the Structure and Operations of Commit tees" are adequate or in need of revision. The committee should also examine carefully the organization, per sonnel, and facilities of the Washington Headquarters with a view to determin ing adequacy of staff and effectiveness of operating procedures and recommend such changes as are deemed appropriate. Should any of the recommendations of the committee involve an increase or reduction of expenditures an estimate of funds will be submitted with the committee report. Each member of the committee is authorized to designate one or more assistants to assist in making the study. It is requested that the committee complete its work and submit its report as expeditiously as possible in order that its findings and recommen dations may be considered by the Board early during Fiscal Year 1968-69. 4/8/68 CMA 068867 1 EXHIBIT B Report to the Board of Directors of the Manufacturing Chemists Association by John C. Zercher Intercommittee Task Group on Transportation Hazards Information May 14, 1968 In any area of operations, standards change over a period of time. This is particularly true in the areas of governmental regulation, and in what is needed to Identify hazardous commod ities. On September 13, 1966 the MCA Board of Directors approved and authorized the creation of an Intercommittee Task Group with specific functions as follows: (a) To develop a realistic, practical standard system for adequately identifying the potential hazards of all regulated chemicals. (b) To develop and implement a suitable means for pro viding information for use by carrier personnel and emergency crews in handling such chemicals in event of such spills, leaks, accidents or fire during transportation. All we are addressing here is " in transportation*. This Task Group was made up of representatives from the Transportation and Distribution, Transportation Equipment, Safety and Fire Protection, and Labeling and Precautionary Infor mation Committees. As a member of this Group, I will outline the project, present the recommendations of this special Task Group and request your approval of a program to accomplish its objectives. The program includes a number of specific recommendations dealing with the entire matter of placarding and relating these placards to a source of emergency information for all hazardous materials. It is believed that an information system based on these recommendations will effectively signal the presence of a hazard, identify the hazard and degree of seriousness, and provide for an effective means of developing and making available transpor tation emergency information. CMA 068868 A While the history of the transportation of chemicals has been good, some incidents have focused attention on the special ized problems of handling accident situations where flammable or toxic chemical materials may be involved. Emergency services, such as the fire departments and the police, are understandably concerned when faced with a transpor tation incident involving materials with which they are not familiar. Members of the fire services have been particularly active in searching for sources of quickly accessible and easily under stood information which would help them to evaluate a situation and take proper precautions for protection of the general public and their own safety. For many years the only indication of the presence of a hazard in transportation was the 10-1/2" x 10-1/2" "danger" placard applied to rail cars and a 3" high placard on highway shipments. As many of you know, there has been a growing dis satisfaction with the limited information provided. One result of these complaints, as well as pressure from the fire services, was "Order 69" of ICC, now the Department of Transportation. "Order 69", effective June 1, 1967, set forth more stringent ex terior marking requirements on motor vehicles. Some state and local fire marshals are yet unsatisfied and have actively demanded regulations in this respect, many advoca ting a system based on NFPA Standard 704. It is also the opinion of MCA that there is a need for a more clearly defined exterior marking and emergency information concept. One MCA contribution to improved hazard information communi cation has been the Chem-Card, first as a project of the Rocket Propellant Group of the MCA Safety and.Fire Protection Committee with 14 cards. Later this plan was expanded to include certain DOT regulated commodities (some 85 in number) when transported in bulk via tank truck. Now, let us look briefly at some aspects of this situation. First, there are the familiar "diamond" markings of the DOT, cur rently in use on railroad vehicles. Typical of placards now applied to trucks is the simple "flammable" placard. It applies to liquids classified as "flam mable" by DOT, those having a flash point of 80F. or below, tag open cup. Some carriers, because of restrictions on using cer- CMA 068869 V - 3- tain tunnels and expressways, have adopted a "non-flammable" marking, which has led to such situations as this. We are not in agreement with this procedure. Now, let us look at the Chem-Card. It has been widely acc pted, not only in the United States, but in Canada, England and France, the latter, so far as we know, without any adverse comment from General de Gaulle. There have been many instances where the effectiveness of Chem-Cards has been demonstrated. A recent example was the serious train wreck at Dunreith, Indiana on January 1, 1968, where the Chief of the Richmond, Indiana Fire Department made extensive use of the Chem-Card Manual in dealing with problems of an accident where cars containing acetone cyanhydrin, ethylene oxide, methyl methacrylate, vinyl chloride and anhydrous ammonia were involved. MCA received a glowing letter from the Chief! However, as many of you know, there have been some objections to the Chem-Card. The battle of the Chem-Card was fouaht in our own Association. Some people didn't like it, period. Some didn't like "traffic in cards". Some didn't like the voluntary concept. They found that if they didn't use it, they might have problems in court; therefore, they felt they were being forced into it. Other circumstances developed. For example, the highway incident where the truck driver produced a handful of dog-eared cards and said, "Here - take your pick". Although the incident did occur, we should advise Mr. Fooshee that the portrayal in this picture was posed by one of his accomodating drivers. We hoped originally that the Chem-Card Manual would be carried on every fire truck and every police car or, at the very least, it would be on the chief's desk. Sometimes, however, the Chief's desk is no great help. Some limitations of the Chem-Card have been its restriction to a specific list of 84 chemicals. Also, it offered no quick visual reference to the contents (hazards) in the vehicle. There has been an increasing demand for Chem-Cards in addition to the original list. A limited expansion of the ChemCard list has been authorized to help take care of some of these requests, realizing, however, that this might be opening Pandora's box. CMA 068870 4 It is not hard to forsee requests for as many as 500 to 1000 Chem-Cards. You can imagine the magnitude of the problem of getting the right Chem-Card on the right load, and the size of the Chem-Card Manual under these circumstances. The MCA Transportation Hazards Information Committee has developed a recommended program which it believes will be reason able from an operations standpoint and which will also meet the needs of both the general public and the emergency services. We have visualized the need for a marking on the vehicle which would be instantly significant to the public. A second and almost concurrent phase is an indication which would be im mediately significant to emergency personnel. We have considered a number of possible ways of providing emergency information. In addition to existing DOT Regulations, we have considered an enlarged package label providing emergency information and also various types of symbols and signs. One method which has been advocated by an appreciable number of fire service people is the NFPA 704 marker. Since there has been much interest in this method we have considered it at some length. The 704 marker was originally proposed for in-plant use on fixed storage. The original scope statement excluded its use for transportation as the Committee realized that it would be in conflict with ICC Regulations. The basic symbol consists of three numbers, arranged in diamond shape to indicate degree of flammability, toxicity and reactivity. The numbers indicate degree of hazard ranging from zero to four. The basic idea is that the numbers are large enough to be read from a distance. It was purported to be simple enough so that all firemen will understand it. There is some question on this, and the comment is not intended as a reflection on some firemen. There are, however, some disadvantages with 704; it does not inform the general public - and DOT feels that this is of first importance. It does not inform anyone, not familiar with the Code, of potential hazards. And significantly the classifi cation by NFPA standards differs appreciably from DOT classifica tions. This was developed primarily by safety engineers of some of our major chemical companies, and it is interesting to note that it has had very limited acceptance in chemical plants. CMA 068871 To cover all materials, a large number of these big placards would be required. They may, of course, be made up by combining the proper smaller squares, but this would appear quite difficult to control on the shipping platform. We believe whatever scheme we recommend should be based on existing regulations and upon existing classifications. Some changes in classifications are inevitable, but they are expected to come gradually. In any event, the MCA proposal is flexible because it relates to the hazardous properties of a material-not its classification. While we believe that our first duty is to the general public, we also felt that we should provide emergency information to police, forest rangers and others who do not meet these situations every day and who might not be familiar with, or remember a coded sys tem. As previously mentioned, we recognize the need for a mark ing on the vehicle which would be instantly significant to the public, and would be an indication which would be immediately significant to emergency personnel. In the MCA proposal, these phases are included on the placard by its general appearance and color and by the "signal word". The third stage Information is intended for the first few minutes, perhaps the first five minutes of an emergency. This is the information which emergency forces need in order to take im mediate steps to control the situation. So let us look at the initial impact of the various markings. (a) The DOT diamond on a tank car. (b) The 704 M marker. (c) The DOT Order 69 placard. We rather like Order 69. It does inform the general public, it is readable from a reasonable distance and it is in plain English. However, we felt there was some merit in having a single color scheme, so that the public might learn to associate these colors with a "danger" indication. Black on high intensity orange is the color scheme picked. We believe that it would be relative ly simple to teach the public that a combination of colors (black on orange) for all regulated commodities will always indicate the presence of a hazard, and that proper precautions should be exer cised. CMA 068872 6 Perhaps, by now you have notic d a number on the signal word placard. This number is the key to a Manual of "Transpor tation Emergency Guides". This leads us directly into Stage 3. For this very important stage, we have prepared a book of transportation emergency guides. They resemble the Chem-Card. You might call them generic Chem-Cards. Each guide is designed to cover a range of materials with similar hazards. And now, a description of how the system is intended to work. This trailer contains drums of acetone - the signal word is "Flam mable 32". Open the book to Guide 32 and we find a guide meant for flammable liquids which are polar solvents, often called "water miscible". We have called them "alcohol foam type" as these are the liquids on which ordinary or petroleum foam is not too effective. The Guide briefly explains how to handle this material in an emergency situation. On the back of the Guide is a representative list of the materials to which the Guide applies. Actually this list is not really necessary but many fire people do like to know the possible name of the chemical involved. Remember that this list is just representative. If more materials are added, this does not make the card obsolete - and we so indicate in the text. The Manual is divided into four sections: (1) Explanation of Termfe (2) Transportation Emergency Guides (3) Guide Assignment by Chemical Name (4) How to Select Guides for Unspecified Materials Now, where will this Manual be carried? (a) On the fire truck. (b) In the Chief's car. (c) In a state police car. (d) In a regular town police car. (e) Even in the truck cab or caboose. CMA 068873 There is, of course, some reason for carrying the Guide on the vehicle. This is the small town-and-country type of incident where the first responsible man on the scene may be a farmer or even a boy scout. But really we are counting on the fire services and the police for immediate action. We recognize the fact that many towns or cities will approve $35,000.00 for a fire truck but may hesitate to allow $2-$3 for a book. Nevertheless, we have reason to believe that requirements may be developed to indicate that this little book is almost as important to a fire truck as the hose it carries. In the course of our review we have also considered other supplemental information sources. We've considered a big, cen trally operated information center with information on tape maybe a computer. We've thought of local information centers where a knowledge able person could take the calls. We're not unaware of excellent company programs such as the du Pont emergency telephone plan or Cyanamid's well developed HON plan. We've thought of big books - an emergency encyclopedia, if you will. We've considered a scheme similar to the poison con trol centers. All of these have merit; they deserve study but for right now, we feel the emphasis should all be on the vital first five minutes in indicating the presence of a hazard and making avail able information to control the hazard in the emergency situation. The Task Group believes it has developed a sound program. .. It must be said, however, that the system will not work unless DOT requires the addition of a key number to the placard. Present indications are that DOT will look favorably on this addition of a number to the placard, and to the commodity list in the Regu lations . Before DOT's acceptance is finally obtained, we expect to need the agreement of many organizations such as API, CGA, NFPA, fire chief and police associations, and other groups. Further, while we have developed what we believe to be a sound program, there is much work to be done to fill out the skeleton of our proposal to a viable body of information which can be presented to DOT as a firm recommendation. The completion of this work is CMA 068874 8 planned, and awaits approval before expending the time. You should also be aware that there will be some modest costs to our companies in changing placard holders, changing placards, etc. The program has been reviewed by the involved MCA technical committees and has been approved in principle. The Executive Committee of this Board has also given similar approval. The TH1 Task Group now asks this Board to approve the program in principle so we may proceed: To develop the appropriate finishing details. And, to formally approach other trade organizations and regulatory groups with the official approval of MCA. CAM 068875 EXHIBIT C PROPOSAL FOR EP3CIAL ASSESSMENT COVERED KCPPER CAR MILEAGE ALLOWANCES ICC DocI:ot No. 6406 The MCA Board of Directors la requested to approve a special assessment to finance a covered hopper car mileage allowance study, and participation in ICC Proceeding 8406 as it pertains to covered hopper cars. Our member firms' interest regarding covered hopper cars is comparable to the r*CA pooiticn regarding tank cars which are the primary issue in the ICC 8406 Proceeding. For the past three years the Transportation and Distribution Committee ha3 been concerned with improving the present mileage allowance in effect for covered hopper cars (5-1/2 cents per loaded and empty mile). This is considered inadequate and does not fairly compensate owners for thoir ownership costs. During the summer of 1966 it was understood that the railroads were about to approve a bi-level mileage allowance. This was not effected because of pur ported objections from grain operators. In 1967 MCA requested the AAR to immediately institute a bi-lovel allowance system and to undertake a new cost of ownership study and a movement study with the view toward developing a multi-level allowance schedule result ing in increased compensation to car owners. No apparent actions have been taken. In the past the T & D Committee deferred becoming involved more vigorously in mileage allowances for covered hopper cars until the tank car mileage proceeding ( I & S 8135) was completed. Actually the railroad proposals for tank cars, purportedly in compliance with I & S 8135, are now subject to investigation and suspension in the ICC 8406 Proceeding. MCA counsel, R. J. Hardy, has advised that the Commission's Notice establishing 8406 has been interpreted by the railroads to also include mileage allow ances for covered hopper cars. For these reasons the T & D Committee recommends that the Board of Directors approve the special assessment which would be used to defray costs of consultant services and legal counsel needed to develop and establish an equitable multi-level allowance for covered hopper cars. It is estimated that the costs for consultant and legal services will total about $40,000. Hot all of these costs are expected to be incurred during this calendar year. It is pro posed to assess owners $4.00 per car for covered hopper cars they own or lease. 5/3/68 CMA 068876 BRIEF OF PROPOSED CHANGES IN RULES OF ORGANIZATION AND PROCEDURE FOR WASHINGTON ADVISORY COMMITTEE EXHIBIT n The proposed new Rules of Organization and Procedure for the Washington Advisory Committee would change the Rules from those now existing in the following manner: 1 Number of Members; Existing Rules: Provide for eight members. New Rules: Provide for "not more than twenty-four" members. 2. Residence: Existing Rules: Provide that a member shall be a top "resident" Washington Representative. New Rules: Provide that a member shall be a "top executive in his company having primary responsibility for its Washington affairs (other than sales) and devoting a major portion of his time and efforts to such affairs". 3. Rotation: Existing Rules: Require rotation of at least two memb rs each year and provide that no member shall serve more than four consecutive years. New Rules; Provide that when the Committee reach s its maximum membership, rotation will be invoked when there are additional nominees who are approved by the Board of Directors. The new nominee would replace the member with the lowest Committee attendance record in the previous two years. In case there should be two or more members with equal attendance records, the member with the longest service on the Committee would be replaced. 4. Dropping of Members for Failure to Attend Meetings: Existing Rules: Have no such provision. New Rules: Provide that members failing to attend twothirds of the meetings in any fiscal year shall be dropped from membership unless absences are satisfactorily explained. CMA 068877 2 5. Quorum; Existing Rules; Silent on this. New Rules; Provide that a majority of the entire membership shall constitute a quorum and that all questions at meetings shall be decided by a majority vote of those present. CMA 068878 RULES OF ORGANIZATION AND PROCEDURE WASHINGTON ADVISORY COMMITTEE MANUFACTURING CHEMISTS' ASSOCIATION. INC. The Washington Advisory Committee shall be governed by General Principles Applicable to the Structure and Operations of Committees, approved by the Board of Directors on March 12, 1963, and by these Rules of Organization and Procedure. FUNCTIONS The Committee shall: 1. Serve as a medium for discussion with MCA of information received by the committee members regarding proposed or current Federal Government programs and actions of significance to the chemical industry and appropriate for consideration or action by MCA on behalf of the industry; 2. Make recommendations to MCA with respect to opportunities for, and methods of, establishing mutually beneficial communications between the Federal Government and the chemical industry; and 3. Provide guidance and assistance to the MCA Staff in arrangements for the monthly meetings of the Washington Repre sentatives of Chemical Manufacturers. MEMBERSHIP Composition; Eligibility The Committee shall be composed of not more than twenty-four full-time representatives of member companies. Each member shall be the top executive in his company having primary responsibility for its Washington affairs (other than sales) and devoting a major portion of his time and efforts to such affairs. Other qualifications for membership shall be as set forth in subparagraph 4(a) of the General Principles Applicable to the Structure and Operations of Committees. CMA 068879 2 Appointment The names of candidates qualified for membership shall be pre sented by the Chairman for Committee consideration when a vacancy is to be filled. Following such consideration, the names of candidates recommended by the Committee for membership shall be forwarded, through the Secretary of the Association, to the Board of Directors for its action thereon. Rotation When the Committee reaches its maximum membership, the following rotation policy shall take effect. Any prospective member who is qualified and interested in participating in the Committee's activities shall, subject to approval by the Board of Directors, replace that existing member whose attendance at all meetings of the Committee during the immediately preceding two years has been the least frequent In case there should be two or more members with the same frequency of attendance for this purpose, the member longest on the Committee shall be the one first replaced. Attendance of alternates shall not be considered in the computation of attendance for this purpose. Failure of a member to attend two-thirds of the meetings during any twelve-month period from June 1 through May 31 shall result in his being dropped from the Committee unless his absences have been due to reasons satisfactory to a majority of the committee. Quorum A majority of the entire membership of the Committee shall constitute a quorum at any meeting of the Committee, and all questions at any meeting shall be decided by a majority vote of those present. OFFICERS The Committee shall have a Chairman, a Vice chairman, and a Secretary. Chairman and vice chairman The Chairman and Vice chairman shall serve for one year from June 1 through May 31. Neither shall succeed himself following CMA 068880 3 a full term but the Vice Chairman shall become Chairman upon expiration of the Chairman's term of office. The Vice Chairman, during the absence of the Chairman, shall have the authority and responsibilities of the Chairman and, if a vacancy occurs in the office of Chairman prior to completion of the term for which he was elected, the Vice Chairman shall become Chairman for the un expired term. In the event of a vacancy in the office of Vice Chairman a successor shall be elected for the unexpired term. Secretary The Secretary of the Committee shall be a full time MCA staff employee whose duties shall be as set forth in the General Principles Applicable to the Structure and Operations of Committees. Elections The regular election of officers shall be held at the May meeting. Elections to fill vacancies for an unexpired term may be held at any meeting provided written notice thereof is given to the members in advance of the meeting. Election shall bo by secret Wwritten ballot of a majority of the Committee. May 2, 1968 4 % CMA 068881 exhibit e III. (j) Ratification of Appointment of Alternate and Committee Appointments, approved by the Executive Committee on April 8, due to cancellation of the April 9 Board meeting. A. Appointment of Director's Alternate. Robert J. DeLargey, International Minerals k Chemical Corporation (for Nelson C. White) B. Committee Appointments. (a) Education Activities Committee. Cecil E. Johnson, Monsanto Company (b) Food, Drug, and Cosmetic Chemicals Committee. Richard F. Philpitt, Olin Mathieson Chemical Corporation (c) Industrial Relations Advisory Committee. John Oliver, E. I. du Pont de Nemours k Company - -as Vice Chairman John J. Radigan, Merck k Co. , Inc. --as Chairman (d) International Trade Committee. Thomas D. Kent, Allied Chemical Corporation (e) Mechanical Technical Committee. D. Hartley, Esso Research and Engineering Company J. W. Nagle, Gulf Oil Corporation (f) Public Relations Committee. James S. Freeman, Union Carbide Corporation Victor H. Peterson, Hooker Chemical Corporation (g) Transportation Equipment Committee. Donald E. Bong, Pennsalt Chemicals Corporation - -as Vice Chairman CMA 068882 EXHIBIT F STAFF REPORT May 14, 1968 Presented by G. H. Decker As you will recall, disturbances in Washington made it necessary to cancel our April 9 meeting as well as MCA's annual reception for Members of Congress and ranking Govern ment officials scheduled for the preceding evening. Since this report must therefore cover the major developments of the past two months I will attempt to review only the high lights . ********* While uncertainty reigns on Capitol Hill these days, there are growing indications that Congress will reconvene after Labor Day to complete business unlikely to get through the legislative mill between now and the national conventions. This possibility adds a new perspective to the legislative outlook and certain bills which have been dormant may now be gin to move. ********* Patent reform legislation is one of those measures. A compromise Senate draft of the Administration-backed bill to revise the laws is being circulated within and outside Con gress for comments by tomorrow - May 15th. The measure, re leased by Senator McClellan's Subcommittee on Patents, Trade marks, and Copyrights, substantially modifies the original Administration plan for a first-to-file provision. Our Patent Committee has been apprised of major modifications in the CMA 068883 2- - tnarked-up bill, but time will not permit it to work out an MCA position. Member companies have been alerted and may wish to submit their views to the Senate subcommittee. In this con nection, Stauffer Chemical Company has proposed that the laws be amended to extend the life of a patent having application to pesticide products. The purpose would be to obtain com pensation for the time lost in complying with registration requirements. Since Stauffer has asked whether it would be appropriate for MCA to endorse this proposal, all members of the Patent Committee have been requested to submit their views on the subject. The on-again, off-again trade bill had been definitely scheduled to be sent up to Capitol Hill the first week of April. Further delay was occasioned, however, by the series of events following the Smathers-Williams amendment to the Tax Adjustment Act. It was that amendment, as you know, that re vived the whole question of an income tax surcharge and reduc tions in Federal spending. Since the tax legislation now appears headed for early resolution, the President may decide to proceed with the trade bill in the near future. There are several pending mat ters before the House Ways and Means Committee, however, which are due for prior consideration, including the debt ceiling. Ordinarily these matters would entail several added weeks of delay. CMA 068884 3 The trade bill has been cleared through the Cabinet agencies and the Budget Bureau, however. It reportedly con tains three basic provisions: (1) extension of the Presi dent's negotiating authority for housekeeping purposes, (2) elimination of the American Selling Price method of customs valuation, (3) liberalized adjustment assistance. Contrary to speculation, it is believed there will be no proposals in the bill for border taxes, export rebates, or import sur charges . Representative Sydney Herlong (D-Fla.) has introduced an omnibus import quota bill which would set import levels at 7.5 percent of the domestic market. Ibis bill could serve as a lightning rod which would allow the Administration bill to avoid a host of amendments restricting imports. It is be lieved the President would veto the import quota bill if it should negotiate the difficult passage through both chambers. *$******* Although taxes, tariffs, and trade matters have engaged much of our recent attention, the Congressional Labor Commit tees now are becoming a focal point of legislative concern for the chemical industry, along with industry in general. The Senate Committee on Labor and Public Welfare has re ported out the Equal Employment Opportunities Enforcement Act which is a modified version of S. 1308 empowering the commis sion to issue "cease and desist" orders in discriminatory labor practices and providing criminal penalties. The substitute measure differs in'these significant partic ulars : CMA 068885 (1) aggrieved party must take complaint to the Commis sion ------ pursuit of remedy in a private suit has been de leted; (2) criminal penalties for violation of orders con tained in Commission subpoenas, or for falsification of sub poenaed documents, have been deleted; (3) observing a pension or retirement plan which provides for reasonable discrimina tion between male and female employees would not be an un lawful employment practice; (4) President must designate a Federal agency to study duplication of functions concerning enforcement of equal employment opportunity policy by the var ious agencies and branches of the Government ------ a report, together with appropriate recommendations must then be sub mitted to Congress; and (5) Commission would be empowered to obtain temporary injunction, under certain conditions, pending final disposition of charges filed with the Commission, The House Committee on Education and Labor appears to be awaiting Senate floor action before scheduling hearings. ********* In the House Labor Subcommittee mark-up of the Occupational Safety and Health Act is pending. Hie legislation -- H.R. 14816, S. 2864 -- empowers the Secretary of Labor to establish and en force Federal standards for industrial health and safety. Hie excessive and arbitrary authority granted the Secretary of Labor and other provisions of the bill came under heavy fire from many quarters. As a result, the legislation is being re vised and there are indications it will incorporate some of the modifications proposed in MCA testimony. The committee expects to resume promptly consideration of the revised bill. We think it likely the House Labor Committee will report out a modified measure, with the Senate delaying its own hearings until this is done. ********* Senator Ralph Yarborough (D-Tex.) unexpectedly introduced new legislation proposing broad new Federal controls over pri vate pension plans, substantially beyond Administration bills CMA 068886 5 already pending. Essentially, Senator Yarborough's bill, S. 3421, would: ------Establish a vesting standard to assure that workers with at least 10 years service after they reach 25 will get a percentage of pension benefits even if they leave their jobs before retirement age. ------Set minimum funding standards to assure that accumu lation of assets cover pension obligations, requiring full funding of vested liabilities after 25 years. ------Create a system of plan termination protection which would assure payment of pension benefits if a plan is termin ated before it's fully funded. Tbe bill would set up a Pension Benefit Insurance Corporation, a wholly-owned Federal corporation in the Labor Department, to administer a termina tion insurance program to protect the vested benefits of par ticipants , The bill side-steps a revenue code recommendation by the Cabinet Committee in 1965 that pension plans failing to com ply with any new suggested criteria lose their tax exempt privileges -- i.e., the new proposal would impose criminal penalties for willful violations. Another new power granted to the Secretary of Labor involves certification of a plan's vesting features, making it illegal to operate a plan without such certification. While it is difficult to assess the prospects of the pensions bill, the crowded calendars of the Labor committees and the controversial nature of the proposals are likely to impede its movement on Capitol Hill. ********* The prospects of tax incentives for installation of pol lution control facilities have vanished as a result of a com prehensive study prepared for the White House and a report sent to Congress by the interior Department. Under a statu tory provision of the Clean Water Restoration Act of 1966, a study was contracted to evaluate the economic impact of pol lution control. The contractor, ABT Associates of Cambridge, Massachusetts, found that taxes would be the least desirable CMA 068887 6 incentive and loans the most desirable, with grants in an intermediate position. The Inter-Agency task force estab lished by the President to study the question reached similar conclusions. It acknowledged, however, that low cost loans or grants would be desirable in cases of demonstrated hard ship. These reports, together with Chairman Wilbur Mills' delcared opposition to tax incentives to achieve social ob jectives, remove any prospects for legislation in the 90th Congress. ********* In statements to the Senate Foreign Relations Committee last week MCA recommended favorable action on the French Tax Convention without change. We did point out that the recipro cal collection provision is broader than provisions in most of our other tax treaties, but since it is based on the collection Article in the prior French convention we were not recommending its removal. The issue was raised only to suggest that the collection provision in this treaty not be considered as a prece dent for future conventions with other countries. Our letter on the Philippines Convention opposed the defini tion of "permanent establishment" which is at variance with the accepted definitions in all our other tax treaties other than those pending with India and Thailand, neither of which has yet been approved by the Senate. MCA objected to the provision subjecting U.S. firms doing business in the Philippines to tax ation even though they are represented there only by agents who do not have general authority to negotiate contracts for their firms. ********* CMA 068888 7 The Vice Chairman and several members of the Tax Policy Committee met with officials of the IRS to request modification of a new IRS regulation which required concerns claiming foreign tax credits to produce certified copies of interpretations of the foreign tax laws involved. IRS officials agreed to suspend the regulation while an effort is made to solicit Tax Executive Institute assistance to obtain the required information from all foreign governments imposing taxes on U.S. commercial acti vities within their areas of jurisdiction. A subcommittee of the Tax Policy Committee has considered the course of action its parent group should take on Section 367 of the Internal Revenue Code. That Section requires that U.S. companies which have foreign affiliates obtain a "prior ruling" from IRS before carrying out any reorganization of their foreign interests. The subcommittee decided to prepare a document which points out the unacceptable delays which the Section creates for U.S. companies with foreign affiliates. If the document is approved by the full Committee at its annual meeting now being held, the group will propose that MCA request the Treasury Department to eliminate the "prior ruling" re quirement from the section. ********* The Association's statement on "Future of United States Foreign Trade Policy" will be given June 4 to the U.S. Trade Information Committee by Mr. J. M. Fasoli, member of MCA's International Trade Committee. ********* C/WA 068889 8 On recommendations of the T&D Committee, our Board of Di rectors, by a vote of 23 to 1, approved MCA participation in hearings dealing with proposed increases in freight rates for chemicals, averaging about five percent. Such an increase, if approved, is expected to add about $50 million to the industry's rail freight bill. Authorization to evaluate the railroad po sition and introduce counter proposals to reduce at the impact of the chemical industry has been approved, at a cost not ex ceeding $80,000 from the Association's surplus funds. An ef fort is being made to obtain cooperation nJ-7ie- interested associations which should reduce somewhat the cost to MCA. ********* On March 19 before the Hazardous Materials Regulations Board of the Department of Transportation, I presented MCA's views regarding their proposed rules of procedure for use in prescribing hazardous materials regulations. Further recon sideration by the Board was urged in the areas of a suitable appeal procedure, maintaining confidentiality of information furnished to the Board, and for determining an improved pro cedure for handling special permits. Oral argument before the ICC in the matter of mileage al lowances and the rules for tank cars and hopper cars is sched uled for early June. A request for a special assessment to cover costs of preparing MCA's presentation with regard to hopper cars has been discussed by the Board today. ********* CMA 068890 9 On April 23, MCA submitted a Statement of Views before the Department of Transportation regarding the proposal to revise the definition of a flammable liquid. MCA offered sound argu ments for maintaining the present definition in accordance with the views of a substantial majority of our member companies. MCA's request for postponement of the date for filing in Ex Parte 259 (Increased Freight Rate - 1968) was reasonably successful. Thirty additional days were granted, whereas MCA has asked for 60 days. ********* The collation and analysis of the returns from the MCA pollution survey is now well advanced. We hope to present the results at the Association's annual meeting. ********* On March 22 I addressed a letter to member company execu tive contacts urging communication with state governors and congressional delegations to protest the so-called antidegrada tion policy enunciated in February by Secretary Udall for adoption by the states as a condition of Federal approval of water quality standards. This policy would not only seek to maintain existing quality levels where quality is now better than the defined standards; it would also require that any low ering of quality must have Federal as well as state approval, with permission contingent on providing the ''highest and best degree of waste treatment available under existing technology" (ostensibly, whatever the cost), and with the Federal agency participating in determining what mode and degree of waste treatment would be acceptable. CMA 068891 10 Hie first state public hearing on this matter was held in Austin, Texas, on March 28. Dow and Du Pont opposed it, and we understand the Texas Chemical Council questioned its legality. Reportedly, all of the testimony presented was ad verse in one respect or another. Although public hearings may not bo hold in all states, it would seem desirable for industry to express its opinions as soon and as effectively as conven iently possible. ******* ** An Air Pollution Control Workshop, sponsored by MCA and the CIC of the Pacific Northwest, with the Chamber of Commerce cooperating, was held in Portland May 6. Registrants numbered almost 200. A similar Workshop will be held in Louisville, Ken tucky, May 27. As there is no CIC in the area, MCA is depending upon the Louisville Area Chamber of Commerce for local promotion and assistance with arrangements. The following is the schedule for the seminar series on Air Pollution Control for Chemical Processes for the rest of 1968: June 10-14, University of Washington, Seattle; September 9-13, New York University, New York City; September 23-27, University of Houston, Houston; and December 9-13, California Institute of Technology, Pasadena. All arrangements have been confirmed ex cept for the seminar in California A third edition of "Source Materials for Air Pollution Control Laws" will be published this month. ********* Progress is now being made on the experimental phases of the research project on the photoreactivity of trichloroethylene at Stanford Research Institute. Chamber construction is com CMA 068892 XI plete, and Its performance measures up to design. Tbe Ad Hoc Task Group met in Pasadena April 2 and 3, inspected the chamber, and received a progress report from the investigators. ********* The odor threshold research program at A. D. Little is progressing on schedule. The dynamic' test equipment has been received from Southern California Gas Company. Comparative testing of odor thresholds on selected compounds by static, dynamic, and ASTM methods can now be undertaken. ********* The first task assignment for Resources Research,Inc. has been defined as a study of the interations between oxides of sulfur and particulates as these affect the choice of ambient air standards for these contaminants. Cost estimates and schedules will be submitted to MCA for approval shortly. ********* A contract was recently signed with Battelle Memorial In stitute for a critical assessment of data and methodology on the effects of chemicals on aquatic life, one of two new re search projects authorized for the Water Resources Committee in the current fiscal year. ********* Preparations are under way to assure the success of MCA's Annual Meeting. In the public relations area, you may recall that last year several members of the Board participated in a brief press conference immediately following the annual business meeting. In light of the results achieved, we will conduct a similar press conference this year. Those who have agreed to CMA 068893 participate with me are: Mr. McCoy of Du Pont, Dr. Gerstacker of Dow; Mr. Brown of Allied; Mr. Rush of Carbide; Mr. Bryant of Hooker, and the Chairman of the Board, Mr. Logan of Uni versal Oil Products. Among the press attendance will be rep- resentatives of the New York Times, Wall Street Journal, Chemical Week, Chemical Engineering, Chemical 8t Engineering News, Chemical Processing, and Oil, Paint and Drug Reporter. In connection with both of the recent pollution workshops -- on water in Dearborn, Michigan, and on air in Portland, Oregon-- mass media coverage was excellent, indicating continuing high public interest. Chemical Progress Week was observed for the 15th consecutive year from April 22-27. Numbers of programs, staged mostly by Chemical Industry Councils, were presented for educators, legis lators and the business community. Three talks were given by Board members -- one by Carl Gerstacker, before state legislators in Lansing, Michigan and two ty John Logan, before business and civic leaders in San Francisco and St. Louis. Coincidental with Mr. Logan's talk in St. Louis, the Chemical Industry Council re leased an impressive brochure entitled "Chemicals in Action in Greater St. Louis." As a sort of extension of the CPW spirit, I will speak at the CIC of Ohio annual meeting in Akron, May 27. Occasionally I have departed somewhat from the framework of my report to call your attention to outside developments having real pertinence to the chemical industry. A recent survey by Opinion Research Corporation has such pertinence. Results show that the "culprit" label is being increasingly applied by the public to the chemical industry as responsible for air and water CMA 068894 13 pollution problems. The report reveals that in mid-1965 our industry led the list, being blamed for air pollution by 23 per cent of those interviewed. In a year and a half that figure has grown to 32 percent. Furthermore, while other industries also were subject to public criticism, the chemical industry topped the others in ill repute by a sizeable margin. In the water pollution area, six out of ten of the people surveyed hold chemical companies responsible. In mid-1965, 28 percent consid ered the industry most responsible; a year and a half later that figure had risen to 41 percent. In this connection, semantics is a factor. The general public does not differentiate between chemicals as a source of pollution -- many times possibly from another industry -- and the actual chemical industry contribution to the pollution load. Although we know that individual companies separately and acting in concert through the MCA have made considerable progress in solving pollution problems, the battle from the public attitude point of view has hardly been joined. Much work must still be done. ********* As reported by the news media, Union Carbide was named as the recipient of the 1968 award of the National Association for Industry-Education Cooperation for its outstanding contributions to science education. The selection was largely based on the excellence of the company's "21st Century" T.V. programs which most of you have seen. The award was accepted by Morse G, Dial, Jr. at the recent annual meeting of the National Science Teachers Association in Washington, ********* CMA 068895 14 On May 5-7, an industry-education conference, sponsored by MCA and the American Chemical Society, was held in Washing ton. Seven leading college chemistry professors and six ex ecutives from the Association's member companies participated, including Messrs. Ralph Connor, Rohm and Haas Company; J. D. Jones, Koppers Company, Inc.; Milton C. Lauenstein, Jr., Ventron Corporation; J. D. Miller, The B. F. Goodrich Company; Glenn A.Nesty, Allied Chemical Corporation; and Nolan B. Sommer, American Cyanamid Company. A frank exchange of views resulted with the professors presenting their opinions on such matters as the industry's alleged deficiencies in the handling of tech nically trained workers, whereas the industry representatives made observations on such problems as the education which is given students in the colleges and universities. A number of recommendations were adopted, including several calling for joint action by MCA and ACS. Expansion of similar conferences to other parts of the country was urged by the group. ********* The judges of MCA's 1968 College Chemistry Teacher Awards Program have chosen the following professors for the honors: Dr. John Christian Bailar, Jr., University of Illinois; Dr. Clark Eugene Bricker, The University of Kansas; and Dr. Leo Schubert, The American University. As in the past, the awards will be presented at our Annual Business Meeting and Dr. Schubert will be the recipients' spokesman. For the first time in the eleven-year history of the program one of the recipients cannot be present. Dr. Bricker will be enroute to a summer teaching I CMA 068896 15 post in India, but the chairman of his chemistry department, Dr. Jacob Kleinberg, will accept the award on his behalf. A******** Mr.D. F. Hollingsworth of Du Pont and MCA's member on the Board of Directors of the U. S. Standards Institute has re ported to the Mechanical Technical Committee that it might cost the chemical industry a billion dollars to convert to the metric system. ********* By unanimous vote the Washington Advisory Committee has rec ommended changes in its operating rules which will permit it to become an increasingly effective instrument of legislative action in Washington. Board approval of enlargement of the Committee's membership from eight to twenty-four is only one of the group's many changes proposed in the revised rules ********* Mr. Harry E. Robbins joined the technical staff yesterday (May 13) as staff representative and secretary of the Water Re sources Committee, following work with the State Vlhter Control Board of Virginia on industrial water responsibilities and stream monitoring. Previously he was a special consultant on problems of the chemical process industry here and abroad. ********* CMA 068897 EXHIBIT G Report to the Board of Directors of the Manufacturing Chemists Association | by ' Jerome Wilkenfeld Chairman, Air Quality Committee May 14, 1968 In some respects the timing of this report is very appropriate since my term as Chairman expires in two weeks and the Air Pollution Control Program in many parts of the United States is on the verge of a major escalation. Despite this, the objectives of the Air Quality Committee have not changes significantly. We still must work towards further improving the performance of the chemical industry, develop more information on good air pollution control practices, help shape laws and regulations and foster cooperative action with government agencies and other interested groups. In keeping with these objectives, the Committee has actively participated in the development of what ultimately was passed as the Clean Air Act of 1967. Several signifi cant modifications from the original proposal resulted in part from action by the MCA. To improve performance and technology, the Committee has recently released for publication, an engineering guide on the use of dispersion for minimizing the effect of emissions, and Arthur D. Little and Company has conducted a research program on an improved procedure for the determination of minimum odor identification levels. In addition, several workshops were conducted and ground work was completed for what is hoped will be a highly successful technical seminar program along the lines of that conducted in the water pollution control field during the last two years. One very helpful practice has been the scheduling of meetings in various locations throughout the country where an opportunity is afforded to meet informally with local control officials. Discussion of their programs and policies affords both the Committee and the local officials an opportunity to learn more about the problems of the other, and to exchange ideas for more effective implementation of controls. It also provides local plant mangement an opportunity to participate in these deliberations. Recently, because of the accelerated pressure for control imple mentation and hardware installation, the Committee has given serious consideration to the problem of developing the increasing amounts of CMA 068898 information and procedures needed by the chemical industry while lim iting the out of pocket cost. This increased need while faced with budget restrictions, has led the committee to modify its program so that it is more introspective and self-help oriented. To this end, there has been an expansion of effort in such things as improved pollution control sections in safety data sheets, development of guides and check lists which will be of help to the designing and operating engineers, consideration of the factors that must be considered in an index of good performance, and the development of useful information for pilot. One other item which has been quite complex in its development has been the fostering of inter-company cooperative effort in the development of pollution control information. This includes such activities and services as the photochemical reactivity work being conducted on trichlo roethylene at Stanford Research institute and the availability of modest cost minimum odor identification determination on specific compounds for member companies at Arthur D. Little as an offshoot of the current research project. One new endeavor which is particularly noteworthy, is the agree ment recently reached with Resources Research, Inc. This will allow the MCA to obtain expert critiques on criteria proposed by the National Center for Air Pollution and provide a basis for assistance to local jurisdictions in their task of developing standards are required by the Clean Air Act of 1967. This availability of expert interpretation will be very helpful to local plant management in their dealings with control agencies during standards development. Because of the rapid changes and extensive effort required of our limited resources, a new group within the Committee structure has been organized. This is a Planning Subcommittee which will have as its principal function the development of program recommendations both short and long term, aimed at improving the effectiveness of the Com mittee and the exploration of future requirements. Hopefully by such planning, we can lead thinking, rather than act in a defensive matter. As for the Committee members themselves, I am pleased to report that the Committee is not made up of learners and listeners but is composed of a group of aggressive activists who are willing to partici pate to the fullest extent in the furtherance of the program. It is because of this sort of Committee make-up that your Air Quality Com mittee commands the prestige and respect that it does. CMA 068899