Document EXBRajNE22JgwJNG7aGMvdzL

FRICTION MATERIALS STANDARDS IUSTITUTE, Il~C., E-210 ROUTE /14, PARAMuS;' N.J. 07652 . "MINUTES OF MEETmG .of the .. BOARD OF DIRECTORS l ~- ,'f:4. .!. < ; Tuesday, .June ~2,1979, at 8:30A.M. '. at ... OceanReef Club, Key Largo, Florida DIRECTORS PRESENT F. E. ~!essier, President R. R. Uoalli, Vice-President R. L. Cutler Stuart Comins l-7. Simon J. t~. Greenen G. A. Carrigan Bendix Corporation Raybestos-Manhattan, Inc. Abexcorporation . .A~to Friction Corporation :3rassbestos Manufacturing Corporation Huturn Corporation S.K~ Wellman Corporation OTHERS PRESENT R. E. Nelson~ Chairman - Brake . Perfonnance Study Committee J ~ L. ~IcGovern, Jr. R. Join: E. W. Drislane~ Secretary Abex Corporation Distinguished-Guest Federation of European Manufacturers ..of Friction Material!>. Friction Materials Standards Institute Mr. Messier, President, called the Heeting to order at 8:30 :A.M. The Secretary advised that Nr. Gorman, Legal Counsel could not attend this meeting as he had been hospitalized onan -emergency basis on June)l, 1979 in New Jersey. The Secretary advised that Legal Counsel from~~. Gorman's office planned to attend the remaining meetings. .. MINUTES OF PREVIOUS HEETINGS The Minutes of the Meetings held June 27-28, 1978 had been distributed. No corrections were suggested. Upon motion duly made, seconded, and unanimously passed; it was; RESOLVED: . That the Minutes of the June 27-28, 1978 Meetings be accepted as written. \)-I (!D) FMSI 07279 ' , Hinutes of the Heeting of the Board of Directors -2- June 12, 19 79 PRESIDENT'S REPORT Mr. Messier, President, reported on activities for the 1978-79 fiscal year. He commented on publication of the "Friction Uaterials Work Practices Guide," the history of the Institute that was prepared immediately after the June 1978 Meeting, and publication of the "1979 Brake Block Identification Catalog." He also noted the granting of trademark registrations to FMS and R1SI and resolution of questions concerning the Consumer Product Safety Commission's responsibilities which were raised at the June 1976 ~meting. It was pointed out that the National Highway Traffic Safety Administration has responsibility for automotive friction materials and these are not under the jurisdiction of the Consumer Product Safety Commission. In addition, Ur. Uessier addressed questions raised concerning the "Asbestos Health Hazards Compensation Act" and the recent contacts by the Institute with the EPA's Office of Toxic Substances Control. Mr. Hessier thanked' those who had contributed their time in furthering the interests of the industry . ' Upon motion duly made, seconded and unanimously passed, it~ was;:. RESOLVED: To accept the President's report as written. MEl'ffiERSHIP COMHITTEE REPORT Hr. Gordon Carrigan, Chairman of the l1embership Committee delivered the Membership Committee report. He indicated increases in ~~mbership as shown in the written report,; He also noted that there had been several changes in recent weeks which prevented him from geeting a final report until immediately prior to the meeting. Among the recent Membership. -;activities was the--recommendation that the Guardian Corporation. of Brighton, Hassachus'etts be accepted as an Active Member, The Board of ~ Directors and the Uembership.accepted this recommendation by mail ballot and voted Guardian Corporation in as an Active Member. Mr. Carrigan advised on the recent applications received from Canadian Distex Corporation of l1ontreal;Quebec, Canada, and the. Licensee application filed by Lima International Parts & Sales,. Inc. in Lima, Ohio, The Canadi~ Distex'and the Lima International applications had-been sent to the Heinbership Committee who had voted in favor of accepting these applications. The Secretary advised that these applications could be reviewed and voted on by .the Board of Dit;~ctors at._this -~eeting. The- application for::Regionall\lembership filed by ,Canadian Distex of Montreal,' Quebec, Canada was reviewed. Canadian Distex is interested in Regional Membership with the rights to market their products in the United States using the Institute's copyrights and trademarks. Canadian Distex. is nm1 manufacturing and distributing automotive disc brake pads, Upon motion duly made, seconded and unanimously passed, it was; RESOLVED: To accept the application filed by Canadian Distex Corporation, Ltd. of Montreal, Quebec, FMSI 07280 Minutes of the Meeting of the Board of Direc.tors . -3- June. 12, 1979 The St!'cretai:j advised that immediately prior to the meeting he had received an application for Licensee Membership from Lima, International Parts of Lima, Ohio. Ur. Jim Lyle of Lima International filed this application after discussions with Ur. Greenen and Mr. 1-lellow of Nutum Corporation, and lrl.th Hr. Drislane of the Institute. Lima International Parts- is a manufacturer of hardware used in brake repair. kits and would qualify for Licensee Membership as- a manufacturer of: materials for the attachment or assembly of brake shoes. This is under Eligibility clause in Article III of the Constitution. .- - Upon motiOn. duly made, seconded and unanimously passed, it was; - _RESOLVED: To accept the application for Licens.ee Membership filed by-Lima International Parts and Sales 'inc. of Lima, Ohio. At this point Mr. CQmins brought up the subject of transferring Institute Membership from Auto- Friction.. corporation to P ~ T. _;Brake Lining Company, Inc. It_ ~~as stated that a precedent had- been made when the Membership was transferred from Krasne Company to ROyal/ Industries, and when transfer was - made of the Mem.bership from Maremont. ' to. Nutur.n. Co.rporation. Upon motion duly made, seconded-and unanimously passed, it was; RESOLVED: To accept the transfer of Membership in the Institute from Auto Friction Corporation to P.T. Brake Lining Company~ Inc. After additional discussion~'- and upon motion duly made, seconded and unanimo~ly passed, it was; -- RESOLVED: To accept tqe: report of the Membership Committee as written. _ __--~-- _:_ ~. :_:.._-_-- -~ _" DELINQUENT ACCOUNTS RECEIVABLE ... ~ The Secretary indicated that Imp_.l,ementos Hetallcos Lara, S .K~ of Barquisimeto, Venezuela had not paid its annual fee for the 1978-79 fiscal year. The Institute had written Implementos Metalicos several times. Based upon mail ballot, the Board voted.' to terminate their-- ..,:, Licensee membership. The Secretary then advised Implementos Metalicos of this termination of Licensee Membership in the Institute. 'i \ ' ' ~' The Secretary advised that at the June 1978 Ueeting of the Board it was decided that Mr; Cutler would contact Hayes-Albion concerning the past due receivable for the second half of the annual fee installment for-the 1977-78 ftscal'year. This was for $850 for the period from January 1, 1978 to June 30, 1978. 'Hr. Cutler was unable to affect __ payment by Hayes-Albion,. and the Secretary was directed to write to pursue payment. The Secretary then had correspondence with Hayes-Albion Corporation concerning_ the $850 due the lnstitute, but, there .was no reply to the last correspondence. FMSI 07281 Uinutes of the Heeting of the Board of Director .:-4- June 12, 1979 Upon motion duly made, seconded and unanimously passed_, iJ: was;._;_ RESOLVED: That the Secretacy. request, .Legal Counsel .to pursue collection of. the $850 receivable from the Hayes-Albion Corporation. . - IN,VESTHENT ADVISORY COMMITTEE REPORT .. Mr. William Simon, Chairman of the. InvestQent Advisory Committee~ .. delivered this Committee.'s report. In sununary, .Mr. Simon repor~ed that approximately $45,000 of funds had been transferred from time~deposits into US agency obligations paying a lit.tle. over 9% . Also, the Institute had invested some of its temporary funds in the 1-lhitehall Money Market Trust managed by the Vanguard Group. -This fund had been paying approximately 10% interest. .The investments projected at June 30, 1979 showed about a $5,000 increase over.that for Jim.e 30, 1978. Upon .motion. duly made,: seconded _,and, unanimously passed, it_ was; RESOLVED: To accept the Investment Advisory Committee report as written. BUDGET COMMITTEE REPORT Mr. Douglas Ogilvie is the. Chairm;m"c,'f the Budget Committee. The Secretary read the Budget Committee repo~t~~: This_report presented a line by line budget 'amourit for each of the major expense categories. It noted that,the major expense items are ' salaries, pension, rent and legal expense: \v-hicll acco~t for almost 80% of the expense budget. The:Chairman recommerideda 1979-80 expense budget of $95,810 which was ab~ut a 5% increase over the budget for 1978-79. Up~-- motion duly oode, seconded and unanimously pas~ed,. it was; :.:.-:-j_~-=: ~l: . _J;. -. . _r.!~ -~~ .., - . ' ~ ~1.~ r. . . .. ~~. ,~ RESOLVED:, To accept..the report. ~f t~e Budget__ Committee ' aS.. written~ .1. ... ,. r , . .Lf'. I 1 '. .... Subs~quent to ~ht~, the Board. voted "a' $600 in~re~~-in)ension. Exp~nse, bringing the proposed ~udge1: to. $96,410. '. r, ;. . . fMS\ 07282 '. Hinutes of the Meeting .of. :the Board of DirectQrs -5- .. June 12 ,, 19 79 .FEE. FORUQLA C011MITTEE REPORT ,, . . -~ : Mr~ Jim :Hellow is hairiilan of,.the Fee Formula Committee . The Secretary read his report. The Chairman indicated. that there ~o1ere 19 Active Members for 1979-80 declaring 35 categories For Regional Members, with U.S. copyright and trademark rights, . there ~-1ere 8 members with 10 categories. The. Chairman :fi:lCiicated that there- would be 10 Regional Uembers-regular, and 2 trade association Regional Members. In addition, 9 Licensees had been. planned. Subsequent to gathering of the category information, applications had . been received.from,Canadian Distex Corporation. and Lima International Parts and- J:llanufacturing. Company, Inc. These, if accepted by the Membership; wqu:Ld,: increase the dues proportionately. In addition,- the Chairman pointed out that he had information that Friction Materials Corporation (marketing their products as Interfriction) ~o1as participating in the br&te lining category as well as in the clutch facing category, and should be assessed for an additional category. Based on the rates in effect for 1978-79, the report indicated that $82,350 of income would be produced using that formula, A.question then arose concerning category declarations by the Friction Haterials Corporation of Israel.- The Secretary advised that based on decisions at the June 1978 Heeting, he had billed Friction Materials Corporation for additional categories. In response to this billing the Secretary received a letter from Friction t1aterials Corporation stating that while they intended to enter the brake lining category, they were actually selling only clutch facings in the United States at that time and should only be assessed for the clutch facing category. There was discussion as to whether a member is participating in a category if he offers1 a. product for .sale even if he is not actually making deliveries. The Chairman had sent in sales literature showing use of the Institute's copyrights. and trademarks by Interfriction. The Secretary stated that he could understand a disagreement concerning participation in a fee category if a member was not actually shipping the product. The Secretary was directed to review the write-up for category declaration and specifically require deClarations where a meitiber is using the: Institute's copyrights or trademarks in offering a product. category for sale in ..the. United States market. The Secretary was directed to have this change reviewed by Legal Counsel. It was further stated that the Board.of Directors is responsible for the fee structuFe and its definitions are what determines participation in a category. . ~ .r : .. :L- :. :I - :-r , -("~ ...With last:year.'s .(1978-79}. fee schedule, __we could anticipate approximately - $82,000 in revenues; This, _along with!;$14,000 of.. interest and_ dividend tncome.would give total income of $96,000, and would just about cover projected budget expenses.. In response to a question, the.Secretary indicated that the Institute 1s net ~o1orth is approximately $175,000. ' The question was raised as regards how much retained earnings a non-profit assoc~ation.could accumulate without incurring the displeasure of the Internal Revenue Service. -The Secretary stated that he believed the figure given by Counsel at a past Board Meeting was that the retained earnings of an as~ociation could be somewhere beb~een 2 to 3 times its annual budget. It was indicated that the Institute could increase its FMSI 07283 Minutes of the Meeting of the Board of Directors ~6- June 12, 1979 fees and therefore increase its reserves. A point was raised that with the increased activity in. -the asbestos area that additional funds may be needed. Also, "it was pointed out that there is an.unfunded liability to Miss Duschek for her pension, ~~hich would reduce the Institute's net worth appreciably if removed from net worth. At 1this juncture in the meeting, it was suggested that the decision as regards fee formula be deferred-until other activities.of the Board had been reviewed. After the reports on asbestos and pension ftinds were delivered, and the Board had reviewed problems in both areas, it was suggested that the fees be increased so that dues would approximately cover.tiudgeted expenses. It was-then recommended that.an increase in the order of 10% be- put' into effect as of July 1, :. 1979 . It was also stated that these figures should be rounded for billing purposes, and thatthe total. income should be projected to increase to approximately $90,00~. Based' on these guidelines tha following fee formula was derived: r. ,~ i Active~ Members - basic fee increase from $1-,050 to) $1, 150. Category Fee - increase from $650 to $700 .' " Regional Members with US copyright and trademark rightsc- same fee as Active Member . l ~ Regional Member Associations - increased from $2,200: to $2,400 Licensees increased from $500 to $550 Upon motion duly made, seconded and unanimously passed, it was; !_! RESOLVED: To accept the new fee formula for the 1979-80 fiscal year as shown in the - ~- above schedule. Upon motion duly made, seconded and unanimously. passed, it was; . ' } ... RESOLVED: ., To accept the report of the Fee Formula Corrimittee .as written; with increased fee i .: ).. :'"levels~for the 1979"-80 fiscaL year. PUBLIC-RELATIONS COMMITTEE REPORT l.fr. Simon, Chairman of the Public Relations Committee,, reported on activities for the 1978-79 year. He pointed out some of the releases that appeared in the trade press including the election of officers, the address ~r. Baynes, Chief Engineer of Delco-Moraine,. gave at our June 1978 Meeting, and publication of the "Friction Materials liork Practices Guide." In particular, Mr. Simon thanked the President, Mr. Messier, for his' assistance during the past year. Mr. Simon . indicated that the 'Ins t1 tute had distributed 40,000 c. copies of the "Friction Materials -Work Practices Guide u. to Members, and approximately 500 directly to individual parties who requested copies. It: was suggested that:":wider 'distributiOn could be accomplished by offering copies of the booklet to the Automotive Parts Rebuilders Association (APRA) . . It was suggested-that the Institute offer the APRA free catalogs for their distribution. Another: direct()r suggested that in additi~ to sending copies to the APRA it might be'well to make an-offer of free copies FMSI 07284 .. ' lfinutes of the Heeting of the Board of Directors -7- June 12-, 1979 to the C:ouncii of'Fleet Specialists (CFS),and to-the Automotive Service Industries ASsociation. (ASIA). The Secretary was directed to, contact. APRA~- CFS and ASIA :and ask,if they .would wish to have. copies for distribution to their members. !' ; : ~ J. ( . . f._, Upon motion duly made_, seconded and unanimously passed, it was; RESOLVED: To accept the report of :the Public Relations Committee as written:~-> :) .. '. -: ; ' .. ~ . DATA' BOOK. AND TECH!:TICAL CONMITTEE ', .' , ! .. :. .! . . ~ ' ' -~ , ' -, Mr .. Phil Grim is Chairman of- the Data Book. and Technical. Committee.. his absence the Secretary read Mr. Grim~a- report~ In The report covered such items as the membership of the Committee and the treatment of trademarks in the Inatit~te:cataJoga .:~. Mr. Grim indicated that a new printer had been taken on for printing the "1979 Supplement to the 1978 Brake Shoe Identification Catalog.'~ He also discussed items au~ as computerized typesetting and various technical matters _. N director asked regarding the criteria-for selecting imported cars for inclusion in the Brake Shoe Identification Catalog;. The Secretary advised that the Committee does not have arbitrary registration figures for selecting vehicles that will be included .in the.Brak.e Shoe Identification CataloB. However, it reviews registrations for imported vehicles and 'in general 'includes -all vehicles with. registrations in... excess of 20~000 cars irt 'amodel: year.-~ However, registrations are not a hard line on which imported cars are selected, but registrations are in.. used for guidance. The Committee votes on addingor deleting imported carS. the Brake Shoe Identification Catalog.:.' Based on 'their selection somewhere in excess of' 98% of imported~cars are included in the Brake Shoe Identificatioti Catalog.) The only cars' that ~are not included are cars stiCh~as 'ROlls Royt.e Alfa-Romeo, Porsche and::a:few1others. A problemuith: the Brake Shoe Identification Catalog tis~ that additional ' listings call for additipnal illustrations which woUld boost the catalog page counts. ' .: :... .. ~-;~,r:.:-:: .<' ;r .... f[:, Upon motion duly made,.seconded' and -unanimously passed, it was; RESOLVED~ To accept the report of the Data Book and Technical Committee as ~1ritten. .,,~,IDENTIFICATION OF METALLIC TYPE BRAKE LININGS- FMSI 07285 The-Secretary advi'sed'that-helhad"been asked concerning the possible notihg in bulletins and catalogs tiuit a !certain brake-1 lining release was a metallic lining~ ' -In other words~ where a vehicle' used an original equipment metallic lining it had been' suggested that a designati'on of some type be used to indicate that it wa9 metallic in the bulletins and catalogs~ There currently are some~original equipment passenger cars and heavy duty vehicles (such as police interceptors)- that use seinimetallic type linings. Apparently the suggestion would cover not only semi-metallic materials, but sintered metallics if ~hey were used. . ', Minutes of the Ueeting of the Board of Directors -8- June 12, 1979 . . ' : ~' . The Sec'retary indicated that in some cases tt is difficult to know exacpy whiCh Jehicles use metallic materials. It~as pointed out by one director that our 1numbering systems indicate size and d'Jtillring. and what Will fit a certain applicat:l,on. Indicating compounds. wdul4 be il.net~ area for the Institute. The Secretary indicated that he had some difficulty with this suggestion and was concerned should inaccurate information on metallic versus organic linings result in liability to the Institute~ It was pointed out that the Institute had. recently added a disclaimer drafted by Legal Counsel whiChcJ indicated that the catalogs and bulletins indicate dimensions and drilling only and in no way refer to the quality of the materials used. It was stated that this is a difficult subject to pass decision on at. thiiL time .. ~After . further discussion, it was decided that the question- '()'identification 'of metallic type friction r materials. in Institute's ..catalogs be referred to the Data Book and Technical Committee for- review.;; ~ BRAKE PERFOIU-lt\NCE:. STUDY COMMITTEE : .. '> ~ :., Mr. 'Helson, Chairman: of the:.Brake Performance Study Committee, delivered his committee's report. ~ The Chairman reported on :.the suggested. changes that the Committee recommended to the Defense Construction Supply Center concerning Brake Lining Specification HH-L-361. Suggestions were made for _friction and ~-lear levels using a J-661 quality control type procedure. The Chairman reported in detail on the recommendations made to the Defense Construction Supply Center on this Federal specification. In addition he covered the changes to DOT 121; (Air Brake Systems Standard) and a recommendation that :.the NliTSA interpretation of the court decision on DOT. 12 L be circulated, to the Membership., His ;report . covered the 'liHTSA's five year plan for rulemaking.which had several items. concerning ~'' aftermarket:brake linings and automotive brake systems~ In addition, Mr. Nelson mentionedr.the .Vehicle Equipment Safety Commission's V-14 RegulatiotL for,a brake wear:warning device, and-a ;recommendation made to the~ Vehicle~:Equipment Safety Commission concerning :the ,height 9f a lining:manufacturer'sJ.edge code;identification on drum brake linings. '' ("<' 'r, ; ~ ' "" 1,. I. .~ Upon motion duly made, seconded and unanimously passed, it was; .RESOLVED: .. Tc:> accept: the report of the Brake Performance, Study Committee as written. .A-S-B-E-S-T-O-S--STUDY COMMITTEE REPORT 1-Ir. Harry Wasuer is Chairman of t:he Asbes to!'l ,Study Commit tee. The Scc.tetary read Nr~Wagner's-reporL -The-Ch~drmiitCreported on work that tl:le:Committee haci. completed. ru:td inp-?rticul~r:~h~!~friction ~Iaterials Work_ Practices! Guide'' of "Which- overJ 40.,000 copies were sold to the, . and' :.Membership .. This} booklet received wide,distribution: was'. completed in the early part. of, the, 1978-79 fisca~ year:,, Hr. waiPter. pointed to the Comnittee's c.oncern CJ;l industry sponsored_ draft legislat~on proposing a Federal "Asbestos Health Hazards Compensation Act" with a fund,financedby a .tonnage assl:!ssment imposed upon the asb~stos products FMSI 07286 ~1inutes of the t1eeting of the Board of Directors -9- Jurie 12, 1979 manufacturing industry including friction materials. l.fr. Wagner ~.,as particularly concerned about the effects that such -legislation could have on friction materials manufacturers . He also.noted recent activity by. the Environmental Protection Agency's Office of Toxic Substances and i~ particular 'a report rendered to them by the IIT Research' Group. This report pointed to brake repair as an area of concern as regards asbesto.s emissions to .the environment. The Chairman asked for the views of . . Direct:ors and 'Members on how to more vigorously pursue support of an industry' position in these areas. : <+ ; ~ ~ :' A director commented that Dr IlicholSon in his preliminary work on brake repair-had indicated that exposure in these shops was perhaps less than at first suggested~ ;upo~: ino_tion duly made, second':d and unanimously passed, it was; RESOLVED: To accept the report of the Asbestos Study Committee as written. EPA VOLUNTARY ACTION PROGRAM ON BRAKE REPAIR . /o.ND LEGISLATIVE'. DRAFT ON "ASBESTOS"HEALTH HAZARDS COMPEUSATION' ACT". Tile Secretary had earlier advised the Board of Directors as reg~rds correspondence lie had ':71th !:Ir. Dick Carter of Johns-Manville concerning a voluntary action program by the EPA's Office. of Toxic Substances on brake repair shops. This pr.-oeram was. perhaps supported by the !IT . res'earch report which indicated that' brake repair work may be a s~gnifi- . 'cant cause of exposure to asbestos. "The Secretary reported on a meeting .he heid. a few days prior to the Board Meeting at the EPA Office in wash.ington. The Secretary called Hr. Richard Guimond at the EPA;'s. Office of Toxic' Substances to: arrange an. appofntment with Mr. John De Kariy to review the brake repair area and what might be done in a volulitary. ~~tion cameprogram. The Secretary report~d on his meeting and indicated that one subject that up was' possible 'subs.titutes for asbestos in b'rake linings .~ l'II-. Guimond asked sp~cificai-ly whether there were substi;tutes ~vailable. 'This :question was triggered oyan article that.appeared in "A:utouiotive Industries" which :~indicated that Raybestos would be. . .di.~continui~g man'ufact:~re of ashes tos containing friction materials. R8y~estos'representativesiridicated that the article in "Automotive Industries" was most inaccurate. ' The Secretary reported on the IIT research report and indicated some of the indictments on exposure against the brake repair shops. One:c~itizism ci tht( report :concerned the releas"ibility of asbestos in a brake shop that ''does riot machine friction "materials . Mbst brake shops: do not machine ,j '.the materta:.:r;' One-'director indicated that a major automotive brake rep8ir Chain': liad directed 'th.at'brake' lining gdndet~ 'be remOved from the brake <repai_r shop .. The EPA- ~laiis to-' make an:advanced notice. of proposed rulemakfng iri August 1979- concerniri8actions to be' f:aken in this area, and 'is soliciting induatcy's co6peradon~ 'They would like industcy to provide information on' asbestos' exposur~s. 'LThey would like inf~_rmation on the potential hazards. I had indicated to the EPA concerning brake lining wear debris, that the best analysis that I was aware of was in FMSI 07287 Minutes of the,Meeting of the Board of Directors -10- June 12, 19 79 '.r ~- '; .' ~ . .J.. ,' ' j .the Dr. jackb:.report for EPA in 1973 . ur: uoSl.li indicated that Raybestos ,had.wl;itt~n to. "Automotive.Industries" as regards correction of the . article. i:JQnet.~ir~ctor stat~d .that asbestos in ft:iction materials amounts toi about .J tQ' 4% o~ total asbestos cons.umption. . . , . . . . ... . ' :. ', .(' ~ ~-:. It was questioned whether the Friction }tSterials St~dards Institute could bring sufficient information together to heip the. EPA with a Voltintary Action Program. It ~as stated that the ~RA uiembers place inserts. into some electrical parts packages on how to assemble certain parts. Perhaps the. Institute ll!ight .be able to have. its members ;PUt-some .suggestions, such as the, ','3..Do~s and J Don 1 ts~~ for_,handling asbestos-containing . friction materials, in their packages. It was stated by one director that' the.Asbe~tos :Information Association was not representing-friction material manufacturers as such~ He stated that the friction-material segment of the. industry is not being represented by any other group. and that the_;ID.sdtute.~!J.ouid become the spokesman for its industry. It was suggested thatperhaps other organizations -such.. as APRA could be asked to have their members put inserts in packages to.warn not to raise dust. Another director suggested that this problem, also effects manufacturers of grinding and drilling equipment. :Perhapsuianufacturers of such equipment might be interested in joining with the Institute in recommendations for proper exhaust ventilation and other instructions on the proper machining of friction materials. It was stated that, the major source for, asbestos dust i~ the air is going to be from a grinder , in the brake .shop. A Director; stated that surveys made of toli booths -,: did not show significant asbestos emissions to the atmosphere at these places . The main point of. asbesto"s emissions' would be. where the material :.. is ground or othen.Jise mach~ned~ . 'Hr. Join mentioned that fn Europe the FEMFM has sponsored independent. organizations to make fiber counts. . He . :.t suggested that p_erhaps s_imilar unaertakin-gs might. ; b..e f e---a s i ble .... in the. States. A Dir~ctor sugg~st~d.th~t the Institute's Asbe~~ds S:t.udy 'coumiitt~~ sbould be expanded, and support should b~ solicited from the management of all ~lembers. In response to a .question; the Secretary indicated. 'the 'member- ship of the Asbestos Study Co11111l:l,'t6l,e~ ': }fr.,. i:larry wagner, .chai~,. carlisle CorpoJ;ation; Mr . Jeffrey Nich<?lson, Abex Corporation; Mr~ ,David Stone, Bendix Corporation; Mr. James Armstrong, Bendix Corporation; Mr. Isaac Weaver, Raybestos-Manhattan. It was .suggested that the Asbestos St:..idy Committee review the asbestos regulatory question-to identify where-the .,. problems exist., . : - ... T':.;, <t" -: - '- . ' - .. - During this di.scussion .on the EPA V~luritary Action Pro,gram :i.t was difficult to separate. acUvities ..f.~om. the agenda. ~tem. concerning the "Asbe.stos Health Hazards'.compensatiot1, Act. II- ~t \Jas. state<J that prob'ably -the' major ; input for the draft: of the ."Asbestos 'Health: Hazards Couq)eiisation ..AceW' had come from Johns:.Manville. A. director.~ stated that. the. drSft .had been given to the Department of ~abor -~ugge~ting 'ac~ion on such an~-Act~ . ,It was stated that the.friction materials industry is not being represented by the Asbestos Information Association as regards problems_of our industry. FMSI 07288 Minutes of the Ueeting of the Board of Directors . -11- '. June 12, 1979 It was stated that therereally-are two problems: (ll the EPA Voluntary Action Program, and (2) draft legislation for the "Asbestos Health Hazards Compensation Act."' It was'suggested that the Asbestos Study Committee should defina the problems and make recommendations and suggest plans as to how to deal '-lith (1) activities at the Office of ToXic Substances,.. including a Voluntary Action Plan, and (2) the legislative draft for an "~bestos Health Hazards Compensation Act." The Committee will be asked to determine how much of a commitment can be made from companies in supportirig its re~ommendat~~~ . Should the industry take a position as regards the 'Asbestos'Health Hazards Compen~ation~Act? What action should :the. industry take? _Should the FMSI'become a spokesman for the friction ,. I,, .. . ; materials. industry as regards the Toxic Substances Control Act and the .. Asl)estos Health Hazards' Compensation Act?. It ~.ras recommended that the Asbestos Study Committee review these problems and then come back with a proposal to the Board of Directors. One Director suggested that some of the data mightbe already available such as epidemiological studies on workers. asbestos counts made 'in their brake repair shops, and health history information on their workers. This type of information might support Institute positions in ~eeling with the Office of Toxic Substances'. on a Voluntaiy Action Program.: A Director suggested that a firm time frame be established for the Ccinirirl.ttee to review this and come back to the Board of Directors with its: recommenda- ations~ It was pointed out that in workirig ori Voluntary Action Program this may be just one part o~ the problem with the Toxic Substances. Control Act. The thrust lllUSt .be on how. to 'react. to the full Toxic Substances anControl Act. In other '~ords:,.this \-TOuldnot be just a one time response but ongoing response to. regulations_' from the Environmental Protection Agency. It was suggested that studies' may have to be run within our own _organization to support viewpoints expressed tothe.EPA. Ur.Nelson suggested that these .problems ar~ similar to the heavy activity of the Brake Performance Studycomriittee during .the nid-60'8 whenthefirst laws were being. proposed for afte~rket brake linings. Perhaps fiber counts by' I'leOOI:!~Sar~: called' for as .well 'as. relen~a :Of. ~xPOSU~e aitd. nedlcal tnfor- [!latiQp that nay already be on file . \Jh~rl:! ner-..b_l:!.rs. have Ub.er .counts in shops and ht!alth hist.ory' for brake r~pair 't-lorke.rs ,, thiscould be 'valuable in_ dealing with the Voluntary Action Progran. . Hhen the ~bestos.Study Committee has reviewed these problems recommendations would be made to the Board of Directors. The Board will then review. recommendations of the Asbestos Study Committee and suggest restraints. and direction.for action. It may be necessary 'to solicit c.ertai~ . exPerts for guidance on this questi'on. A Director stated that this Co~ttee may have to be completely reorganized, and possibly broadened beyond asbestos. It was stated that as there will be a new President installed o~ July 1. 1979, the_Committee should be oriented towards more emphasis on hygienic an.Ci.:environmental expertise rather than the clean-up side. of ~actory operations. The new President will be . ' .. directed to have' this'. co~ttee. ~ed recommen'dations. em (l) an ongoing response to the.EPA'sOffice of' ToxicsUb'stances and' (2) a position' and response on the legislative. draft for ari "-ASbestos Health Hazards Compensation.Act.":. FMSI 07289 : Minutes of the Ueeting of the Board of Directors -12- June 12, 1979 ' INSTITUTE DEVELOPM1~T CO}~ITTEE REPORT is.Mr :Ron. Cutlet:' Chairman of the Institute Development Committee~ There was no formal :tepc:>rt prepared in adVance of the_.meeting as it was Mr. Cutler's intention to discuss items referred.to the Committee with : Committee members at Key Largo. The main subject was the request that, t~e, Aimco Division of ITT Industries .had made for consideration as an Active 11ember of the Institute. Under the Constitution and By-:-Laws . , Mmco DiVision is. not,: eligible tel serve as anr Active Hember of. the. institute as it is. not a manufacturer of .friction. materi.~ls. A, quest~on' was. aske~ as .to whether the Aimco request had been acted on. :The President indi.cated that by- having Mr. Dan Sills of .Aimco serve .as: an Associate Member of the Data Book and Technical Cotmnittee, that Mr. Schnurr of Aimco was 'satisfied that they were able to give input to the Institute. HOwever,'- the question was were they 'still interested in serving as an Active Member of the Institute. It was indicated that Aim_co was satisfied with i.ta current status. ' A director stated that the qu~stion of Active Membership for m~ufacturers such as Aimco,. Wagner and EIS was not the same as that in the early 1970's. where hydraulic parts .manufacturers were interested in memb~rship. In, the earlier, s~udy, ~rake. parts manufacturers such as Echlin were interested in serving as Active 1-lembers. An expansion of the Institute at. that time -would. have required ne"f expertise . a new section in the ,,_, Institute, and perhaps an. increaSe in. staff. _The information in which '! Aimco was interested: was. already being gathered in preparation of th~ Brake.Shoe Identification Catalog.and the.Automotive Data Book. It' : an.was stated that this-, was a broader question. ~han 'jWI:t the application of Aimco Industries to serve a5 Active Meinber . lJould there be an oradvantaga to having manufacturers like: Aimee Wag0er serve as Active .. Members; in the Institute? , Both ,Aimco and Wa~er have- common problems with ,. other, members of the Institute. - Perhaps they could' be of help to the .:.Institute. It was suggested that a motion be made as regards possible . expansion of the Institute f'or a manufacturer of brake shoes marketing lined shoe assemblies. Upon motion duly made, seconded and passed with 6 in favor and 1 opposed, it was;. RESOLVED: That the Institute would not expand Active Membership eligibilty to include manufacturers . .. "_,~ _~.. - --w ho do not manufacture .friction:amaterials. - ! 'J:-~JDj '. . ..~ < . , . _ .,. ~lr I' -:Ros s Ketter!~~. fs. chairman of':th~ 'An~~all1eetfng. Cotnm.ittee~ The . Secretary read the Chairman's. report. It recommended. that the Institute return to the~Ocean Reef.Club in Key Largo, Florida for'the June 1980 }leeting. .u for some reason Key i.argo is ruled o~t in 1980. the report recommended that the Homestead in Hot Springs, Virginia be the location for the 1980 Meeting. It was also suggested that wives be invited to the 1980 meeting. After considerable discussion concerning facilities FMSI 07290 . Uinutes of the Heeting of the Board of Directors . :. -15- June 12, 19 79 t' be concerned given the existing state of the law so long as they don't knowingly enga3e in or all~ negligent conduct. We-have located no N~g Jersey or New York case imposing liability on directors or officers in such-context." In the last pat"agraph of Counsel's letter he stated as f~llaws "Section 722 of the New York Not-For-Profit Corporation Law authorizes indemni-. f:t.cation of di'rectors for- ~ort liability -t~ t'hird persons . The- Board- .should consider-~perhaps this June-- adopting: such an indetmificadon plan. The significance of indemnification iies,not so much in the payment of any judgement but in the protection of the individuals from the expense of defending a lawsuit." The Directors revie~oJed this recommendation by CounseL i Upon motion duly made, seconded and unanimously passed, it was; RESOLVED:. That Legal Counsel prepare an indemnification plan for Officers and Directors in line with the recommendation in Counsel's letter of Hay 1, 1979. .. HISTORICAL SALES PROGIWI . '._, The Secretary reported an the Historical Sales reporting program for calendar year .1978. Since the first of the year a. few me~~ers who used to report are no longer-reporting. The Accountants had not received statistics froci Safeguard Automotive for the i i months ended December 31, 1978 nor for the 3 months ended MarCh 31, 1979. In addition Lear-Siegler data for the 3 months to March 31, 1979 had not been received. This data was formerly compiled at the World Bestos operation in New Castle, Indiana, but as New Castle has now shut down there has been no reporting in 197ry, The Secretary was directed to contact Mr. Ogilvie to seek Lear-Siegler figures for the ensuing quarters in 1979. iNSTITUTE PENSION FUNDS Mr. Drislane and Mr. Simon are Trustees of the Institute Pension Plan. Mr. Drislane reported on the pension pl~~ and its assets through December 31, 1978.. In response to a question it was indicated that the data shown in the report, for the period July 1 to December 31, 1978 is cumulative and indicates all receipts and disbursements since'the beginning of the plan in 1973. The total investments at the batt~ of the report are invest- ments as of December 31, 1978. The directors reviewed the report and in particular the pension payments to Miss DusChek. After revie~-1 of these payments, upon motion duly made, seconded and unanimously passed, it was; RESOLVED: To increase the direct pension payments to Miss Duschek by 10% to $6,600 per year. FMSI 07291 Minutes of the Meeting of the Board of Directors -16- ---~-- ----- ---------- --------June 12, 19 79 FEDERATION OF EUROPEAN HANUFACTURERS OF FRICTION MATERIALS (FEMFH) The Secretary reported on the meeting of the Federation of European Manufacturers of Friction Materials (FEMFM) whiCh he attended in Great Britain in May 1979. The report mentiOned work on correlation of Chase Machine tests and vehicle tests, and general activities of the Technical Committee of the Federation during th~ past year. The_ Secretary reported on items h~ had discussed at the Managing c;ouncil and. General Assemblies of the FEUFM,and in patticular ' the asbestos problet!i..s in the ' United States. Upon completion of this report, Mr. RObert Join, Secretary of the Federation commented on the report and on activities in Europe during the past year. Mr. Join stated that the Federation has apparently convinced authorities that the idea "OE for replacement' 1 is unsatisfactory as a brake lining standard for Europe. Mr. Join also co1lll!lented on some of the problems and activities of the European Federation on the asbestos question in Europe. Mr. Nelson commented on the difficulty with Chase Machine correlation with vehicle tests on the 80 hot friction levels . He indicated that the external heaters on the Friction Test Machine sioply cannot build up heat as fast as a brake can at 80mph. Mr. Nelson was cot!tplimentary of the work that the European Federation had -done as regards correlation : of machine tests and vehicle tests. Upon motion duly made, seconded and unanimously passed, it was; _ RESOLVED: To thank Mr. Robert Join for the information presented on acti~ties relating to friction materials in Europe. INTRODUCTION OF MR. J. L. McGOVERN,- Jr. The Secretary advised that the honored guest at the 1979 Annual Meeting was f-Ir. Jim HcGovern formerly of Raybestos-Manhattan, Inc., who had long served the Inst-ttute. Hhile the agenda indicated that there would be an introduction of Mr. McGovern, one director stated that Mr. McGovern needed no introduction. The Board welcomed Mr. McGovern to the meeting. OTHER BUSINESS There being no other business brought to the attentionof the Board of Directors, upon motion duly oade, seconded and unanimously passed. it was; .~ ' . . . RESOLVED: To Adjourn Adjourned: 1:40P.M. E. W. Drislane Secretary FMSI 07292