Document GzVwLvJK5OaMzGzZwnvgqRrDV

PLAINTIFF'S EXHIBIT Gypsum Association SGP 0010500 SGP 0010501 REPORT OF THE SAFETY COMMITTEE TO THE MEMBERSHIP March 15, 1977 The Safety Committee met on March 4, 1977 in San Francisco, California. The following will highlight current concerns and activities of the committee: Industry Accident Experience Industry statistics were not yet available as of this writing, but are expected to be complete soon and will be reported verbally at the annual meeting. As previously discussed, effective January 1, 1977 we began the new Association Safety Contest utilizing the OSHA record keeping system as the basis for our industry figures. The collection of data on this basis during 1974 and 1975 will serve as a historical base for comparison of the official 1976 statistics. The Harris Trust and Savings Bank, Chicago, Illinois will continue to collect industry safety statistics under the new contest rules. Therefore, the accuracy and legitimacy of this important in dustry program will be maintained. Federal Legislation Additional hearings and post hearing comment periods have been found necessary by OSHA in an attempt to finalize a reasonable noise standard. The committee, Association staff members and legal counsel have been actively monitoring this activity and submitted an SGP 0010502 2 industry position paper for the record relative to the economic impact analysis study done for OSHA by Bolt, Beranek and Newman. The record on the matter is currently being finalized by OSHA and a new standard should be promulgated in a few months. Hopefully, our input, as well as that of other industries, will be reflected in the final standard. Another legislative matter of concern is the potential trans fer of the Mining Enforcement Safety activity from the Department of Interior to the Department of Labor. The Association testified last year in opposition to this transfer at hearings on the applicable House and Senate bills. Both of these bills died when the last Congress failed to complete action on them. The problem is still with us, however, as a House bill and a Senate bill similar to those of last year have been introduced in the new Congress. The Safety Committee and Association staff will monitor the progress of these b'lls and restate our industry position for the record at the appropriate time. The mineral fiber standard as proposed by MESA to the MESA Advisory Committee has been temporarily withdrawn. MESA and NIOSH pres sure for fiber standards is expected to continue and the Safety Committee will continue to monitor activities in this area and advise the Manufac turing and Mining Committee of action required by the Association. Safety Training Programs The committee and the Association staff have been working diligently on Volume II of the "Plant Safety Training Program." This SGP 0010503 -3- training package, an extension of Volume I and including a "mini" supervisor safety training program, should be available by early summer. This program will be useful in training plant supervisory personnel who are unable to attend our regional seminar programs due to work schedule commitments. The regional safety seminar program continues with well attended sessions having recently been held at Las Vegas, Nevada and San Francisco, California. In addition to the training sessions pre sented by Safety Committee members, the plant personnel in attendance were brought up to date on current OSHA activity by an OSHA represent ative from the San Francisco office. New Program Activities We have previously reported the development of a "Safety Reference Compendium" by the committee and the staff. I am happy to report that this publication is nearing final form and should be re leased in early May. It will be a carefully selected reprint of the more important safety articles which have appeared in the Association Safety Bulletin since its inception. Another on-going project is the possible production of a new safety film for the industry to replace "Safety Zone" which was produced nearly ten years ago. The OSHA law, as well as many changes in MESA requirements, have outdated much of "Safety Zone." The com mittee therefore suggests that we cautiously approach the development SGP 0010504 -4- of a new film. Step one in this evolution is the development of a "treatment" followed by full script development. Later, as funds become available, actual production would take place. Additional items of concern and interest will be discussed and an update on this report will be presented at the annual meeti ng. Respectfully submitted, ^. /0:. ^ ^ J . D. Come 1 1 Chairman SGP 0010505 ADDENDUM TO SAFETY COMMITTEE REPORT Subsequent to the printing of the Report of the Safety Committee to the Membership, we have received the final 1976 Association Safety Contest data as follows: 5.5^ Frequency Rate with 73 Reported Accidents 7-30 OSHA Incidence Rate with 481 Cases Reported Following are the winners of the Safety Contest to which the committee and Association staff offer our congratulations: PRESIDENTIAL DIVISION United States Gypsum Co., Southard, Oklahoma CITATION DIVISION United States Gypsum Co., Norfolk, Virginia TRIUMPH DIVISION The Flintkote Co., Camden, New Jersey PEERLESS DIVISION United States Gypsum Co., Galena Park, New Jersey Additional safety statistical standings are tabulated in the attached Safety Statistical Report. SGP 0010506 REPORT OF GYPSUM ASSOCIATION SAFETY CAMPAIGN FOR THE TWELVE-MONTH PERIOD ENDING DECEMBER 31, 1976 Presidential All establishments with an exposure for the twelve-month period of more than 300/000 man-hours: Plants Total Plant Rating United States Gypsum Company, Southard, Oklahoma United States Gypsum Company, Jacksonville, Florida United States Gypsum Company, Gypsum, Ohio United States Gypsum Company, Stony Point, New York United States Gypsum Company, Shoals, Indiana Celotex Corporation, Port Clinton, Ohio United States Gypsum Company, Fort Dodge, Iowa Georgia-Pacific Corporation, Acme, Texas United States Gypsum Company, Sweetwater, Texas United States Gypsum Company, Plaster City, California Flintkote Company, Las Vegas, Nevada Georgia-Pacific Corporation, Fort Dodge, Iowa Georgia-Pacific Corporation, Brunswick, Georgia 0.00 0.00 0.00 0.00 0.00 0.00 1.78 1.96 2.26 3.01 3.32 15.74 18.99 Citation All establishments with an exposure for the twelve-month period of more than 235,000 and less than 300,000 man-hours: Plants United States GypsumCompany, Norfolk, Virginia United States GypsumCompany, Saltville, Virginia United States GypsumCompany, East Chicago, Indiana United States GypsumCompany, Oakfield, New York Kaiser Cement & Gypsum Company, Antioch, California Flintkote Company, Sweetwater, Texas United States GypsumCompany, River Rouge, Michigan United States GypsumCompany, Sperry, Iowa Celotex Corporation, Fort Dodge, Iowa Georgia-Pacific Corporation, Blue Rapids, Kansas Georgia-Pacific Corporation, Buchanan, New York Georgia-Pacific Corporation, Wilmington, Delaware Georgia-Pacific Corporation, Grand Rapids, Michigan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.77 7.04 7.43 21.02 37.61 54.23 SGP 0010507 2 Triumph All establishments with an exposure for the twelve-month period of more than 168,000 and less than 235,000 man-hours: Total Plant Rating Plants Flintkote Company, Camden New Jersey United States Gypsum Company, Charlestown, Mass. United States Gypsum Company, New Orleans, Louisiana United States Gypsum Company, Alabaster, Michigan Celotex Corporation, Cody, Wyoming Celotex Corporation, Hamlin, Texas Celotex Corporation, Edgewater, New Jersey Georgia-Pacific Corporation, Lovell, Wyoming Flintkote Company, Savannah, Georgia Georgia-Pacific Corporation, Sigurd, Utah Grand Rapids Gypsum Company, Grand Rapids,Michigan Kaiser Cement & Gypsum Company, Long Beach, California 0.00 0.00 0.00 0.00 4.64 4.83 4.99 5.91 9.71 13.76 23.62 28.38 Peerless All establishments with an exposure for the twelve-month period of less than 168,000 man-hours: Plants United States Gypsum Company, Galena Park, Texas Kaiser Cement & Gypsum Company, Seattle, Washington United States Gypsum Company, Baltimore, Maryland Flintkote Company, Florence, Colorado United States Gypsum Company, Philadelphia, PA United States Gypsum Company, Sigurd, Utah United States Gypsum Company, Lewistown, Montana United States Gypsum Company, Santa Fe Springs, Calif. Celotex Corporation, Jacksonville, Florida United States Gypsum Company, Empire, Nevada Temple Gypsum Company, West Memphis, Arkansas Flintkote Company, Fremont, California 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 14.97 18.12 19.94 SGP 0010508 GYPSUM ASSOCIATION SAFETY CAMPAIGN FREQUENCY RATE FIGURES BY CLASSES FOR TWELVE MONTHS - 1976 Total Number Man-Hours Total Number Accidents Frequency Rates Presidential Citation Triumph Peerless Totals 5,656,270 3,444,978 2,417,882 1.653,682 13,172,812 17 3.01 33 9.58 19 7.86 8 4.84 77 5.85 PART II GYPSUM ASSOCIATION SAFETY CAMPAIGN FREQUENCY RATE FIGURES BY DEPARTMENT FOR TWELVE MONTHS - 1976 Total Number Man-Hours Total Number Accidents Frequency Rates Mine Quarry Mill Board Block Warehousing Maintenance Miscellaneous Totals 372,009 509,422 1,446,816 4,915,848 49,598 1,197,427 2,533,422 2,148,270 13,172,812 7 18.82 2 3.93 4 2.76 38 7.73 0 0.00 11 9.19 7 2.76 8 3.72 77 5.85 Per Cent of Man-Hours Worked in Each Classification to the Total Number of Hours Worked: Mine Quarry Mill Board Block Warehousing Maintenance Miscellaneous 2.82 3.87 10.98 37.32 0.38 9.09 19.23 16.31 100.00 Per Cent of Accidents in Each Classification to the Total Number of Accidents Reported: Mine Quarry Mill Board Block Warehousing Maintenance Miscellaneous 9.1 2.6 5.2 49.3 0.0 14.3 9.1 10.4 100.00 SGP 0010509 4 NATIONAL GYPSUM OSHA WORKDAY FREQUENCY RATE Plants Fort Dodge, Iowa National City, Michigan Clarence Center, New York Phoenix, Arizona Medicine Lodge, Kansas Tampa* Florida Shoals, Indiana Savannah, Georgia Portsmouth, New Hampshire Westwego, Louisiana Rotan, Texas Bronx, New York Richmond, California Burlington, New Jersey Baltimore, Maryland Waukegan, Illinois Long Beach, California Lorain, Ohio OSHA Rate 0.61 1.24 2.12 3.81 4.25 4.41 4.84 6.68 8.16 9.83 10.46 11.41 13.20 13.68 14.57 18.04 28.95 28.96 SGP 0010510 5- - Presidential Plants United States Gypsum Co., Southard, OK " " *11 " Jacksonvi lie, FL 11 " 11 11 Gypsum, OH " 11 " " Stony Point, NY " 11 " " Shoals, IN Celotex Corp., Port Clinton, OH United States Gypsum Co., Fort Dodge, IA Georgia-Pacific Corp., Acme, TX United States Gypsum Co., Sweetwater, TX " 11 11 " Plaster City, CA Flintkote Co., Las Vegas, NV Georgia-Pacific Corp., Fort Dodge, IA 11 " 11 Brunswick, GA Citation Plants United States Gypsum Co., Norfolk, VA " " 11 " Saltville, VA " 11 " " East Chicago, IN 11 " " 11 Oakfield, NY Kaiser Cement & Gypsum Co., Antioch, CA Flintkote Co., Sweetwater, TX United States Gypsum Co., River Rouge, Ml " 11 " 11 Sperry, IA Celotex Corp., Fort Dodge, IA Georgia-Pacific Corp., Blue Rapids, KS Georgia-Pacific Corp., Buchanan, NY " 11 " Wi lmi ngton, DE "" " Grand Rapids, Ml Triumph Plants Flintkote Co., Camden, NJ United States Gypsum Co., Charlestown, MA "" 11 11 New Orleans, LA 11 11 " " Alabaster, Ml Celotex Corp., Cody, WY " 11 Haml in, TX " " Edgewater, NJ Georgia-Pacific Corp., Lovell, WY Flintkote Co., Savannah, GA Georgia-Pacific Corp., Sigurd, UT Grand Rapids Gypsum Co., Grand Rapids, Ml Kaiser Cement S- Gypsum Co., Long Beach, CA Severity Rate 0.00 0.00 0.00 0.00 0.00 0.00 213.30 60.80 230.52 219.49 1020.45 283.41 329.24 0.00 0.00 0.00 0.00 0.00 0.00 0.00 124.51 383.62 104.04 924.89 1135.77 1910.43 0.00 0.00 0.00 0.00 928.28 4.83 139.65 407.75 723.46 197.16 552.77 414.44 OS HA Rate 2.78 0.00 2.94 2.46 1.49 10.46 3.20 5.10 1.81 6.01 11.97 12.07 15.83 0.00 1.36 2.11 0.00 3.88 4.09 1.67 5.28 10.56 8.92 19.34 18.80 19.19 20.77 0.00 2.20 0.00 17.64 18.36 28.93 27.18 2.91 11.00 6.61 23.84 SGP 0010511 6- - Peer 1 ess Plants Uni ted States Gypsum Co., Galena Park, TX Kaiser Cement & Gypsum Co., Seattle, WA Uni ted States Gypsum Co., Baltimore, MD FIintkote Co. , Florence, CO United II II II States II II II Gypsum " 11 " Co., " " " Philadelphia, PA Sigurd, UT Lewis town, MT Sante Fe Springs, Celotex Corp. , Jacksonvilie, FL United States Gypsum Co., Empire, NV Temple Industries, West Memphis, AR F1intkote Co. , Fremont, CA CA Severity Rate 0.00 0.00 0.00 o.oc 0.00 Q,?C 0.00 0.00 o.oq 46048.00 392.55 66.48 The industry OSHA rate for twelve months of 1976 is 7-30 OSHA Rate 4.84 6.25 9.01 13.32 2.71 1.46 6.31 1.74 8.60 8.98 4.83 7.98 SGP 0010512 TECHNICAL COMMITTEE SGP 0010513 REPORT OF THE TECHNICAL COMMITTEE TO THE MEMBERSHIP March 15, 1977 The ninety-eighth meeting of the Technical Committee was held February 15, 16, 17 and 18 in Tampa, Florida. The extra day was for the final review of the 1977 edition of the Fire Resistance Manual. The meeting was well attended with ten representatives from six companies, five Association staff members and legal counsel. SECTION I - PRODUCTS The new ASTM standards containing performance requirements for backing board, water resistant backing board, sheathing and veneer base have now passed Society ballot. Other changes in ASTM standards approved by Society ballot were the packaging and marking sections, the type X test in C 473 and the water vapor transmission test in C 36. The only action taken regarding metrication was consid eration to begin including some metric units in the Fire Resistance Manua1. National Association of Home Builders (NAHB) has been approached to conduct the wet and dry racking tests of 5/8" type X sheathing. Details of the test were finalized and arrangements will be made to proceed with the testing. SGP 0010514 2 A proposed specification for predecorated board has been submitted for consideration by the Technics1 Committee. In this draft, the abrasion and scrubbabiIity tests are eliminated and there is only a statement that the decorated surfaces should have abrasion resistance and be washable. It was felt that the standard should not be delayed by test criteria for which no early resolution is expected. The apparatus for the type X bench test was demonstrated at the Technical Committee meeting. Values of 3 and k minutes for 1/2" and 5/8" type X board were agreed upon and proposed at the recent C-ll meeting. The committee approved releasing the results of the round robin type X tests establishing these time values to C-ll. A method for nail dimpling that would be used in con junction with the nail holding test will be distributed to the committee. This is in regard to tke quality complaint by the west coast drywall group. The complaint is that the nails are loose after they have been driven and dimpled. The International Conference of Building Officials (ICBO) has been cersuaded not to include the 15 minute finish rating in Research Report 1632. A task group was appointed to investigate a possible test program to establish finish ratings for various wallboard thicknesses that could be used by the industry. SGP 0010515 3- - A product specification for an industry exterior soffit board is being investigated. SECTION I I - SYSTEMS The ASTM standards for plaster and interior lathing and furring have replaced the old ANSI standards. The veneer plaster standard has passed, but the veneer base standard was returned to C-ll for resolution of negatives. It is anticipated this will receive Society approval before June. The Technical Committee was highly critical of the action of C-ll in overruling negatives in regard to the application of heavy water j)$se spray textures to 1/2" wallboard ceilings attached to joists spaced 24" o.c. The committee voted five in favor with one abstention to instruct the Gyps urn Association staff represen tative to C-ll to vote negative in the re-balloting of the proposed standard being prepared for C-ll ballot. It was indicated that new data would need to be submitted to sustain negatives. A unanimous motion was passed to submit suggested wording for inclusion in the ANSI A 108 specification for tile application which would place the responsibility for job performance of tile applied over water resistant board on the tile trade whenever wa 11 board joints are finished underneath the tile. It was proposed that a series of shower stall tests be conducted by an independent agency, such as Wiss, Janney & Elstner, to evaluate tile over water resistant SGP 0010516 4- - board with and without joints finished and with dry set mortar. The cost is estimated to be $7,000. The Tile Council of America will be asked to cooperate in the test program and share the cost. An engineering study had been proposed at Underwriters' Labo^atories in orde" to promulgate generic values for shear re sistance of walls and ceilings where 5/16" MH board :s used. U.L. replied that the results released to them by the industry were too variable to be able to make such a study. It is, how ever, the desire of the committee to work with U.L. to determine what is necessary to pursue our request. "he first step in the implementation of this was a phone conversation during the meeting to ascertain what U.L.'s requirements might be. U.L. has stated that they will reeu're full scale tests using boards from the member companies picked up by their inspectors and this may in volve a test cost of $1,000 per manufacturer desiring listing for each ceiling. Wall testing would be extra. The task group will look into this further on a high priority basis in an effort to have a Technical Committee recommendation for the annual meet:ng. SECTION I I I - TESTING The recent sound test of WP 1080 resulted in an STC of 47. It was recommended that WP 1530 and WF 3230 be sound tested at a budget cost of $l60G. One fire test of a wall assem bly was also recommended at an estimated cost cc $6500. SGP 0010517 -5- A three-pronged program was recommended in regard to generic shaft walls: 1) Recognize the 1-Stud as generic and determine if shaft wall and stairwell fire tests can be purchased from a member company. 2) In the absence of being able to purchase the test, conduct a fire and hose stream test program of the |-Stud wall in all of its variations. This may cost nearly $25,000 at U.L. 3) Cooperate with the National Elevator Institute in a test to confirm the 2-hour protection when elevator door frames are in stalled in a generic gypsum shaft wall design. SECTION IV - CONSUMER PRODUCT STANDARDS The matter of the MESA mineral fiber definition will be carried on our agenda as a matter of information should there be further developments needing Technical Committee considera tion. There is a new concern about asbestos, i.e., fibers falling from ceilings that have been spray applied in the past; we will monitor this activity to determine whether there is any thing that should be done through the Association. SECTION V Several of the projects undertaken in the Research Associate program at the Bureau of Standards are being completed. SGP 0010518 6- - The report of the ease of ignition test is in the review process, as are the potential heat test and other tests for combusibiIity. The survey of fire information is at the reporting stage. The mobi'e homes investigation wi'l continue. A new Bureau full room test program will be of future interest. It is expected that Mr. Lawson`s assignment at the Bureau will draw to a close shortly. Because of the high caliber of the two associates we have had at the Bureau, NBS will be receptee to whomever we select as the third representative from the gypsum industry. The Technical Committee thanked Mr. Lawson for his contributions to the Research Associate program and a j ob we 11 done. An entire day was spent on the final review of the 1977 issue of the Fire Resistance Design Manual. The format may be changed somewhat in sections where sound information is pro vided. Rather than include the transmission less values over the entire range of frequencies, it may be desirable to publish only the STC rating achieved. It was decided that the range of values are not used often enough to justify keeping them. Eco nomies in the assembly and printing of the manual should result. The section on combustibility is being re-written to be in con formance with the latest changes in NFPA and ASTM. The committee SGP 0010519 7- - also has redefined 1/2" type X for those assemblies requiring the third generation product. This was considered necessary until a new 1/2" type X ASTM definition can be promulgated. The new manual is scheduled for publication this spring. A glossary of terms relating to gypsum was distributed for comment prior to final review at the next Technical Committee meeting. It is proposed that the glossary be published as a separate piece of Association literature. A special recommendation with regard to frame reinforce ment for double egress door openings in gypsum walls is being prepared. A project to delineate a chronological history of the gypsum industry has been started and will be turned over to the Promotional Committee. Respectfully submitted, C. W. Lehnert Chairman SGP 0010520 BUILDING CODE COMMITTEE SGP 0010521 REPORT OF THE BUILDING CODE COMMITTEE TO THE MEMBERSHIP March 15, 1977 Representatives of six member companies participated in the semiannual meeting of the Building Code Committee held February 14, 1977 in Tampa, Florida. In addition, there were members of the staff in attendance at all times including the NBS Research Associate plus legal counsel. The new 1976 National Building Code, sponsored by the American Insurance Association, is the building code of only a limited number of cities, but it is widely used by the insurance industry in evaluating structures for rating purposes. It thereby has an impact on construction across the United States greatly be yond the influence it might otherwise have. It is the first building code having a classification of "limited combustible" for building materials and to require them in many types of construction. As reported previously, our Research Associate at the National Bureau of Standards has completed a test program involving gypsum board which will show that it meets the new "limited combus tible" definition and it is anticipated this report will be issued by June 1 , 1977. SGP 0010522 2 Under this building code, gypsum board is heavily penalized in one- and two-story townhouse construction where 4-hour fire rated masonry walls are required as separation walls; this is much more restrictive than the other model codes. Following approval at the fall Directors' meeting, the National Loss Control Service Corpora tion began active preparation of a formal presentation to be made to both the AIA and the Insurance Service Organization (ISO) to gain more favorable consideration for use of gypsum board in lieu of masonry. The ISO currently sets the insurance rates for six states, we under stand, and is earnestly working to become THE rating bureau for all states. National Loss Control was selected to undertake this program because they are well known and respected in the insurance industry. They have access to and can present the report to the proper individ uals in these organizations. Previous attempts to discuss the arbi trary rulings with ISO officials by a member company were to no avail. We were pleased to learn that National Loss Control is ac tively pursuing this matter and an initial progress report was dis tributed at the meeting covering items where additional information is desired from the members. In view of the long term role of masonry as the most suitable fire separation wall, it will be difficult to establish gypsum board assemblies as suitable alternates. Concerted efforts to gain allowance for use of gypsum board in these areas does appear warranted, however, since all masonry fire separations become potential markets for our materials which might be realized but for the arbitrary insurance rating position. SGP 0010523 - 3- In New York City, the gypsum board versus masonry question prevails with respect to stairways of apartment buildings. A member company is conducting comparative tests to prove equivalence under sponsorship of the Gypsum Association. They have encountered some difficulty in selecting a common gypsum board assembly that will withstand the impact testing equivalent to that withstood by masonry. Further testing is underway. Deliberations by the committee concerning the ICBO (Inter national Conference of Building Officials) included a recommendation by the staff which was adopted to combine two Gypsum Association sponsored ICBO approval cards covering plaster assemblies into one, thereby saving approval fees of approximately $600 per year. A proposal by 1C BO to require that nonsymmetrica1 walls must be fire tested from both sides in all cases prompted a recommendation that the staff attempt to gain a modification to allow judgment by the test authority when warranted. The ICBO is continuing to consider a code change requirement that wall penetrations, such as for electrical outlet boxes, be tested for fire performance using a positive furnace pressure. This is of concern on two counts; (1) Requirements for positive pressure could grow to include all full scale fire tests and that would place all fire test data currently in the Gypsum Association manual in jeopardy since the tests therein were based on a neutral or slightly negative pressure and (2) emphasis on wall penetrations could generate require ments for full scale fire tests of many assemblies containing penetra SGP 0010524 -k- tions to illustrate that outlet boxes can be installed in them with out jeopardizing fire ratings. The National Electrical Manufacturers Association has conducted a test at Underwriters' Laboratories in volving a metal stud-drywall partition with many outlets, some con nected to nonmetal lie cable and others to conduit. Although not tested with positive pressure, the test was successful showing that the out lets did not jeopardize the fire rating. The report will be released to the Gyps urn Association for general use. It should be very useful in answering future questions as to the effect of such penetrations. Our Association staff representative based in Washington, D.C. provided information covering many of the federal activities that bear on the gypsum industry. He is regularly consulted by HUD personnel concerning possible changes and improvements to the Federal Mobile Home Standard and in the development of some of the interpretive bulletins that HUD has been issuing to clarify the intent of the standard. The committee directed that the staff attempt to gain formal reference to both the MH gypsum board specification and the companion application standard in the Federal Mobile Home Standard, and to dis tribute both of these documents to all mobile home inspection agencies; DAPIA (production inspection primary inspection agencies), IPIA (pro duction inspection primary inspection agencies), and SAA (state approved agencies). Prior to conclusion of our meeting, we were notified that HUD advised our representative by telephone that they will plan to in clude reference to both of these documents in the Federal Mobile Home S tandard. SGP 0010525 -5- Our NBS Research Associate reported on recent mobile home living room fire tests that have been conducted at the Bureau and advised that quite likely HUD/NBS will propose changes in the Mobile Home Standard to require Class A ceilings and Class C walls in living rooms and Class A ceilings and walls in bedrooms and corridors. It is anticipated that this will be considered by their Advisory Council and Executive Committee soon. A task force was appointed to prepare a new document citing the Gypsum Association recommendations as to interior finish require ments for mobile homes. Although on record with HUD prior to issuance of the Mobile Home Standard, this position will be updated and rein forced . During discussion concerning the new National Institute of Building Sciences (NIBS), it was recommended that as individual com mittees begin being formed under NIBS, interested member company per sonnel apply for membership to gain a voice in what will, undoubtedly, become an important factor in future construction technology and requirements. The Southern Building Code Congress, at their fall meeting, recommended to their membership approval for use of fire retardant treated wood in noncombustible construction. Our Washington rep resentative wrote to every SBCC voting member, attempting to over turn this recommendation but it was sustained. It can again be SGP 0010526 6- - considered at their next code changes meeting but the staff advised that the personal support of SBCC Code Changes Committee members will definitely be necessary for success. New data, besides flame spread ratings, should be provided. An Association committee member advised that fire treatment chemicals are reportedly corros' to copper piping and all bright metals and that they cause a loss of 15-20% in strength of wood due to the treatment. We have been requested to provide data to support these facts, if available, since they should give help in defending against the inroads of fire treated lumbeo Our Washington staff representative reported on the ac tivities of the American National Metric Council Sub-Sector Committee, of which he is chairman, which involves manufacturers of interior and exterior finish materials. To date, he has received vs'-y limited input from the various industr;es as to any spec;f:c metric convers'O" rec ommendations. The plywood industry has recommended 1200 and 2hOQ mm sizes and proposed sanded and unsanded thicknesses near current pro duction. It is anticipated that the Association's Metric Committee may now determine a set of preferred proposed figures for use by the staff in such work, since it is being reconstituted with single member representation. The western staff representative rscc-ted that the City of Los Angeles is now demanding that all steel stud heights be ba~ed on stud properties only which is contrary to the height limits contained throughout the Gypsum Association Fire Resistance Design Manual and SGP 0010527 - 7- those of the member companies as well as heights allowed by ICBO. Efforts by the staff and western company representatives are under way to modify this position. The Ceramic Tile Institute is again trying to gain Los Angeles approval for use of latex mortar as well as dry set mortar for bonding ceramic tile over gypsum wallboard. It is expected that their request will not be approved at this time. Similar recommendations for application are being considered by the na tional Tile Council of America and this matter is also under con sideration by our Technical Committee. I understand further in formation will be contained in that report. In Chicago, our staff representative has been active in efforts to keep the Chicago Building Code from being amended to greatly increase the permitted use of fire retardant treated wood in noncombustible construction. The State of Kentucky is another area where he worked in concert with other trade associations to avoid having that state adopt the National Building Code as a state code and instead to adopt one of the other three model codes. Prin cipal reasons for opposition to the NBC and support of the other model codes is the private handling of all changes to the NBC as well as the fact that it is rarely kept up to date (the new 1976 code replaced one that was last issued in 1967). The other three model codes are updated annually by a democratic process wherein SGP 0010528 8- - all interested code enforcement officials as well as industry representatives have a voice. It was readily apparent when going through tue wide range of activities wherein the Association staff is involved that our interests are being well served by them in their continued involve ment in local, state, and national affairs. t was also apparent that problems involving building codes and related matters continue to grow and the staff needs increased support by the members to handle them. The many other items covered during our meeting are con tained in the minutes. On behalf of the committee, thank you for your continued support of our activities. Respectfully submitted, /J. K. Hovind ^Cha i rman H- SGP 0010529 SGP 0010530 REPORT OF THE TRAFFIC COMMITTEE TO THE MEMBERSHIP March 15, 1977 The Traffic Committee held its winter meeting in Savannah, Georgia, February 8-9, 1977- Following are highlights of key agenda subjects currently being worked on by the committee. FEDERAL LEGISLATION Reform of Regulatory Agencies Numerous bills have been introduced that will change the number and procedures of federal regulatory agencies. The committee will attempt to develop positions on each as warranted. Public Participation in Federal Agency ProceedingsS S 270, HR 66, HR 3361 and HR 3362 have been introduced in the 95th Congress and will permit awards of reasonable attorney's fees and other expenses for public participation in federal agency proceedings. These bills, if enacted, could be detrimental to our industry, espe cially as it involves our interests before the various federal agencies and departments. The Traffic Committee has requested that the chair man advise all other Association committee chairmen, the Manufacturing and Mining Committee and the Board of Directors to determine what, if any, common Association position might be developed. Also involved are other bills which could be of over-all interest to Gypsum Associa tion members and in determining the best action approach. SGP 0010531 2 Claim Adjudication Act A biI 1 was introduced in the 9^th Congress by Representative Wirth to amend the lnterstate Commerce Act to permit recovery of reasonable attorney's fees in case of successful maintenance of an action for recovery of damages sustained in transportation of property. The Association supported this 1976 legislation and has written Representative Wirth recommending that he reintroduce similar legis lation in the 95th Congress. Motor Carrier Reform Act Legislation was not enacted in the 9*+th Congress; however, 1977 action is anticipated. Major provisions will include some relaxation on entry into for-hire trucking as well as greater flexibility for contract and private carriers. Independent Truckers (Owner-Operators) These truckers are pushing for legislation that will give them additional freedom to transport on a for-hire basis. The use of owner-operators is growing with all carriers. The subject is being closely watched by the committee. Size and Weight Laws - Individual States The following states still have highway weights below federal standards : SGP 0010532 -3- Connecticut(*) District of Columbia Maryland(*) New Hampshire Pennsylvania Vermont Mississippi(#) Tennessee(*) Wisconsin(#) Illinois Indiana(*) Iowa Minnesota Mi ssouri(*) (*) Bills have been introduced or in final planning. (#) Legislation failed 1976- The committee is following this activity closely and all Associa tion members have been urged to support this legislation as it becomes active during 1977- Surface Transportation Procedural Reform Act A proposal of the ICC chairman to extend provisions of the Railroad Revitalization Regulatory Act of 1976 to other modes failed to be enacted in 1976. This proposal contained many desirable features and the committee will watch for a similar proposal in 1977-1 2 3 4 FREIGHT RATE CHANGES 1 . Rai1 roads Rate Increases Rai1 rates were i ncreased dur ing the past year as follows: Effective West East South Wes t-East Wes t-South Ex Parte Proceeding 3/21/76 10/7/76 1/7/77 7%(1) 5%(3) 4% 7%(2) 7% 4% 7% (2) 7%(4) 4% 7%(1) 5% (3) 4% (1) No increase via certain Western Railroads. X318 X330 X336 (2) Cancelled 10/7/76. (3) 7% in some of Western Territory. (4) Holddowns on numerous commodities. The Traffic Committee filed objections to the March 21, 1976 and October ~], 1976 increases. We also asked the ICC to provide at least 15 days' public notification prior to the effective date. SGP 0010533 -k_ Additional rail increases may be forthcoming during 1977 although at least one railroad has already announced that none will occur. There has been some misunderstanding among committee members con cerning GA policy relative to rail rate increases. Some believe that the Traffic Committee has been under a mandate to oppose all increases. Such a policy, if intended, is not realistic. The committee, unless otherwise directed, will follow a policy of objecting only in those proceedings where objection justification exists and there is some chance of success for our industry. 2. Southern Freight Association Rate Proposal Highlights Docket 44826 - Reduced 90M Rates - Gypsum Products. Reduced rates were approved January k, 1977. Docket 44915 ~ Cancel 6PM Rates. Cancellation completed November 10, 1976. Joint Treatment Holddowns Ex Parte 318 and 330- Accomplished. Effective November 1, 1976.3 3. Freight Rates for Recyclable or Recycled Materials (Ex Parte 319). Order lists specific products to be investigated, including scrap paper, which is used in gypsum board paper manufacture. The committee plans to watch for developments. SGP 0010534 -54. Motor Carrier Rate Increases Most common carrier and contract carriers were forced to increase their rates as a result of the April 1, 1976 labor agreement. Wages will again go up on April 1, 1977 and additional rate increases (4% plus) are anticipated. Many contract carriers are non-union or have agreements that differ from the national agreement and rate increases will vary via these carriers. 5. California Minimum Rates The California Manufacturers Association Petition 884 proposes to phase out minimum rates on volume truckload traffic. If successful, California regulation would be similar to that of the ICC. The com mittee will not participate, but will continue to monitor this ac tivity for informational purposes only. REGULATORY AGENCY PROCEEDINGS Several proceedings still under investigation are highlighted below. These proceedings will be followed by the committee. 1. Motor Carrier Proceedings. Motor Carrier Revenue Proceedings (Ex Parte MC-82). This pro ceeding could result in ICC imposed minimum rates of return for "for-hire" carriers and hinder negotiations with individual carriers. SGP 0010535 6- - Commercial Zones (Ex Parte MC-37 (Sub 26)). ICC decision broadened commercial zone areas within which operations are exempt from ICC regulation. This decision is being appealed by many shorthaul carriers. Detention (Ex Parte MC-88). Investigation instituted May 22, 1973. Order was issued June 18, 1976 and later postponed awaiting further investigation. Could drastically increase detention charges and practice of assessing detention charges. Driver Hours of Service (FHA Docket MC-70, Notice 76-4). Bureau of Motor Safety, FHA, considering changes: also, to broaden to include mechanics, loaders and helpers. If implemented, this pro posal could increase rates. The committee will watch developments in this area to determine what action is required. Driver Qualifications (FHA Docket MC~72, Notice 76-II). Pro posed rules would require more strict physical requirements. The committee plans to watch future developments. Operating Authority Applications (Ex Parte 55 (Sub 14)). The ICC has proposed amendments to rules pertaining to format and proof required to secure operating authorities. It is a major investiga tion involving all companies and will be closely observed. SGP 0010536 -7- Ease of Entry (Ex Parte MC-103). This proposal would permit common carriers to receive operating authority in areas where private trucks are used. The Association became a party of record and is closely following this activity. 2. Railroad Proceedings Remittance of Demurrage Charges (Ex Parte 289)- A complete review of demurrage charges and practices. Rail Service Investigation (Ex Parte 270 Sub 2). Will involve the adequacy of rail service throughout the United States. Implementation of Railroad Revitalization and Regulatory Reform Act of 1976 (PL 94-210). Requires specific ICC action and proceed ings to implement. The Association became a party of record in the following proceedings: Determination of Market Dominance (Ex Parte 320) Standards for Determining Rates Based on Seasonal, Peak or Regional Demand (Ex Parte 324) Establishment of Expeditious Procedures for Publication of Rates on Distinct Rail Services (Ex Parte 331) Revision of Tariff Filing Rules (Ex Parte 326) 3. General Proceedings Regulations for Payment of Freight Charges (Ex Parte 73 and MC-1) This proceeding, which would make credit arrangements more rigid, was decided August 5, 1975. Industry compliance with these regulations SGP 0010537 8- - would be difficult. Upon petition of shippers and others, the rules were indefinitely postponed. The committee plans to con tinue to watch this activity. MISCELLANEOUS TRANSPORTATION ACTIVITIES 1. Average Weight and Dunnage Practices - Motor Carrier Shipments The Interstate Commerce Commission has instructed motor carriers transporting gypsum board for several gypsum manufacturers in the west to determine freight charges on the basis of "scale1' weights rather than l,average,, weights furnished by shippers. Also in volved is the practice of shippers having all dunnage (primarily floor-bearing pieces and unit dividers) transported without charge. Some tariffs fail to adequately contain this provision. The ICC instructions could spread to all manufacturers and all carriers throughout the United States. Gypsum Association counsel plans to meet with the ICC to explore what steps must be taken to assure continuation of current industry practices in this area. 2. Industry Practices Metrication. Current industry and transportation activities continue to be watched by the committee and appropriate action will be coordinated through the Association Metric Committee. SGP 0010538 9- - Standard Transportation Commodity Codes (STCC). These codes are used for many freight rate and other transportation applications. Changes have been proposed for crushed gypsum rock plasterboard and by-product calcium sulphate. Respectfully submitted, H. D. Gobrecht Chairman SGP 0010539 PROMOTIONAL COMMITTEE TRADE RELATIONS SGP 0010540 REPORT OF THE PROMOTIONAL COMMITTEE TO THE MEMBERSHIP March 15, 1977 The next meeting of the Promotional Committee will be held April 5> 1977, the day before the annual meeting, in Chicago, Illinois. A full report on activities will be presented in an oral report to the membership at that time. Highlights of current committee activity follow. MOBILE HOMES* Committee activity in this area was reviewed at a Promotional Committee meeting held in conjunction with the first annual iaWCC/GDCI convention in New Orleans, Louisiana, February 25, 1977 Our over-all objective in this program is the conversion of the mobile home industry to the use of gypsum board in interior walls and ceilings. This is a potential market of over one billion square feet of board per year. The audiences for our promotional efforts in this area consist of the mobile home manufacturers, the dealers, and consumers. Our initial work was primarily aimed at the manufacturer. Working in close cooperation with the Manufactured Housing Institute, we have endeavored to assist the manufacturers in any way possible. It was determined that we should use a "soft sell11 approach with our promotional efforts. We have distributed some nine newsletters to mobile home manufacturers stressing the positive aspects of using our product and including appropriate Association literature and govern ment reports concerning mobile homes. SGP 0010541 2 We have also initiated a series of Manufactured Housing Recommendations to assist them in using our product. In addition, the staff has personally visited more then 50 individual manufacturers. This work is ongoing. In addition, the committee has turned its efforts toward providing promotional assistance to the dealer. The Board of Direc tors, at the semiannual meeting, authorized funds for the preparation of a special mobile home promotional program to help motivate dealers to carry mobile homes utilizing gypsum board. This program using the slogan, "Safe and Sound with Gypsum Board," has been prepared and is in distribution. It consists of two 30-second television commercials, along with a special marketing kit containing material for use by individual dealers. The kit contains: a two-color brochure on the advantages of a gypsum board home, an adhesive seal for display on the door or refrigerator of homes using gypsum products, two news paper ads to which the dealer may add his own name and address, our "Safe and Sound" seal in easel form for table top display, and a feature story for publicity use with local newspapers. Also in cluded are instructions on how to use this material. Our program was initiated in January with the first in a series of six full-page ads to run January through June in the two leading mobile home dealer magazines . A timely element has been introduced to our orogram with the announcement that a mobile t,0me manufacturer, Champion Homes of SGP 0010542 3- - Dryden, Michigan, is beginning a national television advertising cam paign stressing the use of fire resistant gypsum drywall in their homes. The campaign will be underway by the time this report is received. This campaign has already begun to stimulate local dealers with art interest in local TV advertising to tie in with the national campaign. Since the national TV commercials are not being made available to local dealers, this will undoubtedly create an interest in the use of our commercials. The staff is already in the process of making all of the Champion re gional sales managers familiar with our commercials so they will refer potential dealer users to us. At this writing (February 26, 1977), the national campaign has not yet begun and already twenty dealers repre senting all regions of the country have requested and received copies of our commercials for local use. This interest is expected to in crease once the national campaign is started. The Promotional Com mittee intends to stay abreast of this situation to make maximum use of our own mobile home PR program. In this regard, the committee wants to keep all other dealers aware of the assistance that is available to them from the Association, and to this end is requesting budget consideration for two important additions to our program: an exhibit for display at the MHI Suppliers Show this coming September in Chicago. This display would feature our mobile home PR program with special emphasis on our TV commercials; and a series of ads aimed at the same purpose to appear in the two leading dealer magazines. SGP 0010543 4 The final element of our present program is the new 20-minute film, "Time to Live." Most of the actual shooting on this film is com pleted. The remaining work consists primarily of editing and processing The final prints should be available this pring. This wil1 provide us with another valuable promotional aid in our mobile home program al though this film, it should be remembered, is also suitable for general use as well since mobile homes are only one element in it. Further up-to-date details in our mobile home program will be included in my oral report to the membership. TRADE RELATIONS The first annual joint convention of iaWCC/GDCI resulted in a registration of over 900 people. The Gypsum Association reception for the contracto'?; held in the exhibit area, was an outstanding success and resulted in heavy traffic at all member company exhibits. Promotional Committee members formed a receiving line to greet con tractors as they entered the exhibit hall. The Association received considerable publicity as hosts of the reception and many contractors sought out individual Association members to express their apprecia tion. The Promotiona' Committee evaluated the expense involved in hosting the large group and conc'uded that it is well worth-while and a most economical means of handling the contractors. SGP 0010544 5- - The Association also participated in a series of four re gional iaWCC meetings during the past year. Our topic was effective use of our Fire Resistance Manual, an adaptation of the program that has been so well received by individual member companies for use with their own sales staffs. The same program will be presented to CISCA (Ceiling and Interior Systems Contractors Association) at their annual meeting the first week of April. Preliminary meetings have been held with this group to explore areas of increased cooperation and assistance LITERATURE Demand for Association literature remains at a high level. Revisions to the current edition of the Fire Resistance Manual and "Using Gypsum Board for Walls and Ceilings" have been completed by the Technical Committee and turned over to the Promotional Committee for production. These two major items will be added to our literature inventory this spring. Others to be added include a chronological history of the gypsum industry and a glossary of up-to-date gypsum board and plastering terms. Respectfully submitted, J/ E. Ross thairman SGP 0010545 MANUFACTURING-MINING r> O 3 S SGP 0010546 REPORT OF THE MANUFACTURING AND MINING COMMITTEE TO THE MEMBERSHIP March 15, 1977 The Manufacturing and Mining Committee will hold its next meeting in Chicago on April 5, 1977- That meeting is subsequent to the preparation of this report, but prior to the annual meeting where my supplemental oral report will be presented. The committee, with the assistance of the Association staff, continues to be actively involved in legislation, both at state and federal levels where such legislation would affect gypsum manufac turing and mineral extraction operati.ons. It is the consensus of the committee that such activity be closely monitored by the membership and that they report any action to the Association where they deem Association action beneficial. Highlights of the committee's activities are as follows: LAND PRESERVATION AND RECLAMATION Congress has once again introduced surface mining legisla tion. Known as the "Surface Mining Control and Reclamation Act of 1977," HR 2 was introduced by Representative Morris Udall and its companion, with minor exceptions, S7, was introduced by Senator Metcalf. Both bills are directed at the regulation of surface coal mining operations but, as in past legislative efforts in this area, require monitoring to assure that general administrative proposals will not have adverse affects on our operations. SGP 0010547 2 PedCo, under contract to EPA, is currently studying wastes (air, liquid, solid) associated with the mineral mining industry to define the need for future research and development programs. The contractor has visited three industry mining locations as a part of this study and :nitial reports indicate no major waste problems exist. It is anticipated that this project will be completed in the near future. ENVIRONMENTAL MATTERS Previous reports have been made to the membership on air and water pollution, noting the status of the EPA's industry study covering water effluent from mineral extraction under SIC 1492 and the board manufacturing process SIC 3275. The EPA rain water run-off study has been held in abeyance following the issuance of the VerSar feasibility study, to which the Association registered strong objection. The EPA appears to be leaning to deferring rain water run-off control to the individual states, but with a recommended strategy for regulation. The EPA air emissions study for SIC 14, mineral mining and processing, being conducted by PedCo.under contract to EPA is ex pected to be completed in the next few months. One of the major ob jectives of this study will be to project '985 air emission control targets for our industry. Representative Paul Rogers has introduced HR 4151 containing SGP 0010548 3- - comprehensive amendments to the Clean Air Act. The bill is currently before the Subcommittee of the House Interstate and Foreign Commerce Committee. No Senate bills have been introduced in this area to date. Representative Roberts introduced H 3199 to amend and extend authorization of the Federal Water Pollution Control Act. The bill is currently before the Subcommittee on Water Resources of the House Committee on Public Works and Transportation. No Senate bills have been introduced in this area to date. ENERGY As reported at the semiannual meeting, the Gypsum Association intends to represent the industry in the establishment of FEA reporting standards for energy conservation. Mr. Rogers and committee repre sentatives from two member companies attended hearings in Washington and filed a position paper, copies of which have been forwarded to all members. It is our intention to continue with the voluntary energy conservation reporting, with the idea that this will satisfy the FEA requirement. The voluntary energy conservation data forwarded to the Depa r tmen t of Commerce for 1976, based on 1/2" board, was as follows: 1976 Quarters Total Industry Production per MSF Gypsum Board Average BTU (mm) per MSF Gypsum Board 1 2,890,050 2 3,163,203 3 3,599,629 b 3,502,702 2.993 2.895 2.765 2.909 SGP 0010549 -k- New reporting guidelines are expected under the joint Commerce-FEA Voluntary/Mandatory Energy Program. The Association has also requested an exemption f-om reporting other than board products under our SIC 3275 industry energy classification. SEVERANCE TAX The State of Colorado has under consideration several mineral severance tax bills, all of which exempt stone products. The Association staff is watching developments in Colorado closely and will take immediate action to protect our interests should this legislative position change. It was anticipated that severance tax legislation would be introduced in the State of Utah during the current session, but no such tax bills were prefiled and the date for filing proposed legislation has now passed. The Governor of Utah has proposed that the question of a future severance tax be reviewed as part of a comprehensive energy policy. This activity will continue to be monitored by the Association. SAFETY COMMITTEE LIAISON The Manufacturing and Mining Committee continues to review the Safety Committee programs and recommendations. The chairman of the Safety Committee reported at the semiannual meeting that federal safety agencies are starting to shift emphasis away from physical inspection and more to the occupational health areas. This is sub stantiated by recent announcements for the expansion of OSHA's staff SGP 0010550 5- - of industrial hygienists and greater emphasis on health program proposaIs. Representatives of the Association attended a meeting in Seattle in November to testify on the proposed MESA mineral fiber standard. Although MESA withdrew the mineral fiber proposal at that meeting, there has been ample evidence since the meeting that federal agencies will be placing greater emphasis on many areas of fiber which they may consider to be carcinogens. This topic will most certainly be the subject of additional legislative attempts in the very near future and will be watched closely by the committee. A special meeting of the Manufacturing and Mining Com mittee was held in Chicago on February 2, 1977 to discuss the general subject of industrial health. It is proposed that efforts be made to study the status of industrial health in the gypsum industry and to develop future courses of action as dictated by the knowledge gained. Inasmuch as such an effort will undoubtedly require outside assistance, members will review several contractor proposals at our April meeting covering initial steps that we may take in this area and develop recommendations and budget requirements to facilitate the study. In the meantime, the Association staff continues develop ing additional information in the areas of health research activities. More information on this subject including committee recommendations will be contained in my oral report. Members of the Safety Committee plan to work closely with SGP 0010551 6- - our committee on upcoming testimony before Congress on H 2060, H 4287 and S 717 which are bills dealing with the mine safety enforcement, standards and transfer of this function from the Department of Interior to Labor. More information on this ac tivity will be contained in my oral report. The Safety Committee has Droposed the production of a new safety film, estimated to cost $25,000. The purpose of the new safety training film would not only be to up-date the current film, "Safety Zone," but to delve more thoroughly into hygiene and other current safety standard activities. The Manufacturing and Mining Committee supports this safety film production. MATERIALS HANDLING SUBCOMMITTEE The Materials Handling Subcommittee has not met for some time now due to a lack of significant projects to warrant a meeting. In view of the current status of this subcummittee, no written report will appear, but rather a brief status of this activity will be con tained in my oral report to the membership. The Manufacturing and Mining Committee plans to develop future recommendations covering this activity at the April meeting. The Association of American Railroads (AAR) has recently contacted the Gypsum Association with a proposal to conduct test loads of gypsum board on bulkhead flatcars loaded in accordance SGP 0010552 7- - with Figure 101 Section 5 except for the unitizing bands (item K). This subject will be further reviewed at our April meet ing, and committee recommendations contained in my oral report. TECHNICAL AND BUILDING CODE COMMITTEE LIAISON As in the past, the Manufacturing and Mining Committee will discuss matters of mutual interest with representatives of both Technical and Building Code Committees at our April 5, 1977 meeting. METRIC PROGRAM The industry metric conversion program and the actions of the task force assigned to this project will continue to be of pri mary interest to the future activities of the Manufacturing and Mining Committee. FUTURE COMMITTEE MEETINGS The Manufacturing and Mining Committee, in reviewing the volume of material being directed to and through them, has expressed the need to continue to hold two major meetings of this committee per year, plus additional meetings on specific topics as required. Additional items resulting from our April 5. 1977 meeting will be contained in my oral report to the membership. Respectfully submitted, Chairma n SGP 0010553 SGP 0010554 REPORT OF THE SECRETARY TO THE MEMBERSHIP March 15, 1977 As evidenced by several of our committee reports at the semiannual meeting last fall and more recently discussed during the recent round of committee meetings, there has been concern that an effort should be initiated to improve attendance at com mittee meetings. We believe the membership is convinced of the importance of the activities presently being conducted in each of our standing committees. Without exception, these activities are necessarily dealt with on an industry basis rather than as individual member company activities. However, there is a second function of an Association and one that is clearly defined in our bylaws. That is to act as a center for information and education for its member companies. The Association staff attended each of our recent committee meetings, noting particularly the items of information and education that were new and important to the operation of each member company. For example: in the Traffic Committee, the interpretation of ICC's regulation that could possibly require scales at each producing in stallation to actually weigh each shipment of gypsum products; in the Building Code Committee, the recent interpretations of various model codes and state, city or county codes having detrimental effects on our product usage; in the Safety Committee, recent changes in OSHA procedures concerning current safety inspections; in the SGP 0010555 Promotional Committee, the actual o-eviewing of national television commercials which would have an immediate effect on the reception of gypsum board in mobile homes; in the Technical Committee, the dayto-day liaison between the National Bureau of Standards fire testing program of mobile homes and their reception by HUD officials; and in the Manufacturing and Mining Committee, the revised requests by tu,e federal government for energy consumption statistics. Our membership is small - many committee meetings are con sidered well attended with six member company represented. However, if less than five or six member companies attend a committee meeting, we feel that the membershiD is not taking full advantage of the ex cellent opoortunities that present themselves through Association meetings. COMMITTEE CHAIRMEN The upcoming annual meeting in April brings to an end the current two-year terms for our oresent committee chairmen. With out exception, the present chairmen have done a" outstanding job and we are deeply apprec:ative for the time and effort that they have spent in conducting the affairs of their respective committees. We are indeed cortunate in having equally qualified committee members in the wings to step into the role of chairmen and vice-chairmen oc each committee. The new appointments will be made soon after the new officers of the Gypsum Association are elected at the annual SGP 0010556 - 3- MOBILE HOMES It is, of course, a happy situation to report on an Associa tion program that has been so immediately successful in such a short period of time. This is the case with our mobile home program. In just a little over two years the Association has succeeded in con ducting a legislative, technical, and promotional program to hasten the use of gypsum board in mobile homes. As is usually the case in retrospect, it is unfortunate that our industry waited so long to conduct this program. Many be lieve that the change from combustible wall and ceiling materials to gypsum board in mobile homes is inevitable - that it would have happened without such a program. We do not believe this is the case, but in any event, the hastening of such a changeover has resulted in a great increase in volume of gypsum wallboard. The outstanding feature of our present program is that we are an industry assisting another industry in a very important, nec essary and progressive changeover. The Association, in each and every case guided by the appropriate committee, is coordinating activities with HUD, the Bureau of Standards, the Manufactured Housing Institute, Underwriters' Laboratories and, finally, with the manufacturers and dealers in the mobile home industry. This has been a most successful and unique program and we would look forward to the opportunity to conduct others like it. SGP 0010557 4- - STATISTICAL PROGRAM Some of the problems of consistent tardiness in reporting production and sales figures for our industry have been solved, but there are some new ones and the resulting problem is still with us. As a result, it now appears that our Association statistical program will not include the entire industry in 1977- This subject should again be discussed in our Board of Directors meeting and hopefully some of our problems can be resolved. It is the consensus of our membership that the reporting of state figures is advantageous and that the trial period of such reporting be extended through 1977- The collection of a capacity figure for the entire in dustry was completed and the figure of 16.5 billion square feet of 1/2" gypsum wallboard has been published. WASHINGTON REPRESENTATION At the instigation of several of our committees, the Board of Directors has asked that the staff present a plan to increase the Washington, D.C. representation of the Association to better handle such affairs for our membership. Some effective coordination of such activity has already been initiated with the added correspond ence and meetings of the various Washington representatives of our member companies. The resulting proposal to be made at the annual meet ing will indeed include many of the recommendations of these Washington representa tives. SGP 0010558 5- - Of prime importance is the fact that the Gypsum Association has been very successful and indeed promotes the fact that an Associa tion should be low key and pragmatic, and not engage in activities that are redundant to the goals of its member companies. It is hoped that the next logical and economical step for such Association activity will be approved at the annual meeting. METRICATION As the United States approaches the changeover to the metric system, our industry must necessarily be prepared. For two years, the Association has had a special task force of all of the committee chair men which has met the day prior to each membership meeting. There has not been a consensus in the membership as to a definite policy of recom mended figures in metric units for our products, either in "soft" or "hard" conversion. At the last membership meeting, it was suggested that each member company have an official spokesman to attend the meeting this year to present his company's policy on metrication. Thus, it is hoped that an Association position can be determined. We believe that we have adequately served the industry on metrication, however, by keeping the subject open for discussion, we are in an excellent position in the wall covering industry by having a staff member chair the appropriate subcommittee in the American National Metric Council organization. SGP 0010559 6- - FINANCIAL MATTERS Due in all probability to the fact that our meeting is early this year, the affidavits from all our member companies re porting the production figures for assessment have not been forwarded to the Harris Bank, so a detailed recommended final budget has not yet been developed. The Directors will receive our proposed budget in ample time for consideration before coming to the annual meeting. However, our recent audit of 1976 is included with this annual report (to each Director), as is the present financial report of the Associa tion. In reviewing the recommended budgets of several committees as well as the administrative budget, we estimate that Association expenses will be up slightly, but that there will be a compensating decrease in the rate of assessment for the next fiscal year. FUTURE MEETINGS The semiannual meeting of the Gypsum Association will be held October 12-14 at the Greenbrier, White Sulphur Springs, West Virginia. The schedule for future meetings will be discussed at the Board of Directors meeting in April. Respectfully submitted, A. Victor Abnee, Jr. Secretary SGP 0010560 SGP 0010561