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MINUTES of the one hundred sixty-ninth meeting of the Directors of the Manufacturing Chemists' Association, Inc. , held in Salon La Huronie, Le Chateau Champlain, Montreal, Canada, on Tuesday, September 12, 1967 at 11:00 a.m. (EDT)
There were present:
E. B. Brooks
Alexander Lewis, Jr.
F. Leonard Bryant
John O. Logan
E. E. Chipman
A. R. Marusi
David H. Dawson
Charles S. Munson
George H. Decker
Joseph A. Neubauer
George S. Dillon
W. T. D. Ross
L. K. Eilers
Edward R. Rowley
Raymond F. Evans
Charles H. Rybolt
Carl A. Gerstacker
Charles W. Smith
Maurice F. Granville Henry A. Thouron
Kenneth H. Hannan
Jesse Werner
T. G. Hughes
John E. Wood, III
James R. Carnes
Alternates:
Chester M. Brown (for Irb H. Fooshee) Bland B. Button (for Thomas M. Ware) John L. Gillis (for John L. Christian) James A. Hughes (for Raymond F. Evans) Leonard Hynes (for W. T. D. Ross) David L. Matthews (for Alexander Lewis, Jr.) Frank J. Pizzitola (for John W. Brooks)
Present by Invitation:
J. E, Cunningham, Witco Chemical Company, Canada Ltd.
W. A. Dimma, Union Carbide Canada Limited A. G. Erdman, Monsanto Canada Limited D. W. Evans, Alcan Limited Frank D. Evans, Uniroyal 1966 Ltd, H. W. Fisher, Standard Oil Company of New Jersey J. Robert Fisher, Fisher Chemical Company,
Subsidiary of Ashland Oil & Refining Company Ralph K. Gottshall, Atlas Chemical Industries, Inc. V. N. Hurd, Shawinigan Chemicals Limited C. S, Malone, Chemcell Limited T. S. Morse, Hercules Canada Limited Stephen H. Newburn, Air Reduction Canada, Ltd. Joseph R. Stevens, J, T. Baker Chemical Company Sam R. Stovel, Cyanamid of Canada, Limited
General Counsel:
Marx Leva Lloyd Symington
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I. OPENING REMARKS.
In calling the meeting to order. Chairman John O. Logan expressed the pleasure of the Directors at being present in Montreal and welcomed the directors of the Canadian Chemical Producers' Association and member com pany representatives as invited guests. He announced that the Canadian Chem ical Producers' Association was to be host at a reception immediately following the meeting of the Board of Directors and expressed appreciation for their hospitality. At Mr. Logan's request, those present stood and introduced them selves .
II. MINUTES OF JUNE 7, JUNE 8 and AUGUST 1, 1967 MEETINGS.
The Minutes of these meetings were duly approved as submitted to the members.
III. REPORT OF THE SECRETARY-TREASURER.
(a) Financial Report, June 1-August 31, 1967. The financial report for the three months ending August 31, 1967 was summarized by the SecretaryTreasurer.
ON MOTION duly made and seconded, it was
VOTED: That the report be accepted and placed on file.
(b) Status of Membership Fee Collections. It was reported that all but four members have fully paid their membership fees. It was recommended that an additional grace period of 30 days be granted. The recommendation was approved by those present.
(c) Financial Report, 95th Annual Meeting. The SecretaryTreasurer reported that income from the Association's 95th Annual Meeting was $71,475 and that expenses were $14,216.86, leaving a net income of $57, 258. 14 which had be en transferred to the operating account in accordance with financing arrangements previously approved by the Board.
IV. BOARD OF DIRECTORS.
(a) Appointment of Alternates. The Chairman advised that the following additional Board members had requested the appointment of alternates:
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Board Member
Alternate and Company
Raymond F. Evans Carl A. Gerstacker Maurice F. Granville Kenneth H. Hannan W. Kenneth Menke
Joseph A. Neubauer
J. A. Hughes, Diamond Alkali Company Donald K. Ballman, The Dow Chemical Company John K. McKinley, Texaco Inc. Kenneth Rush, Union Carbide Corporation J. W. Clinton, USS Chemicals, Division of
United States Steel Corporation J. E. Burrell, PPG Industries
(b) Membership Committee. Chairman Rybolt reported that applications had been received from Arapahoe Chemicals Division, Syntex Corporation and First Chemical Corporation and that in the opinion of the Membership Committee the applicants were qualified for membership under the Association's By-Laws.
ON MOTION duly made and seconded, it was
VOTED: That the applicants be approved, subject to the 30-day notification of members provided under Article III, Section 4 of the By-Laws.
(c) Program Committee, 17th Semi-Annual Meeting, November 21, 1967. Chairman Neubauer reported that the Program Committee had completed the program of panels for the 17th Semi-Annual Meeting and Midyear Conference of the Association to be held at the New York Hilton, New York City on Novem ber 21, 1967, but that arrangements for the luncheon and banquet speakers have not been completed. Panel sessions will include the following topics:
New Developments in Engineering Standards What's Ahead in Environmental Management? Industry's Role in Solving Urban Problems The Institutional Investor Looks at the Chemical Industry The Control of Chemical Industry Construction Costs Control of Chemical Industry Processes by Computer
Chairman Neubauer expressed the appreciation of the Program Committee to other members of the Board of Directors who rendered valuable assistance in organizing the panel sessions.
(d) Education Activities Committee - Rules of Organization and Procedure. Sent to members in advance of the meeting were proposed revised Rules of Organization and Procedure of the Education Activities Committee. Copy is attached to these Minutes as Exhibit A. Following discussion,
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ON MOTION duly made and seconded, it was
VOTED; That the proposed revised Rules be approved as presented.
(e) Survey on Air and Water Pollution Control and Solid Waste Disposal. The President reported on the status of the survey instituted early in 1967 to update the 1962 survey on air and water pollution control facilities. He reported that, despite his letter of July 5, 1967 to Executive Contacts urging submission of their reports, only 789 reports have been received from 80 com panies, which is a smaller response than in 1962 when 875 reports were received from 125 companies, A complete response would result in 1376 reports from 200 companies. Support of the Board was requested for another letter to be sent by General Decker urging submission of the requested data. After discussion of the importance of complete information on this subject, particularly in connection with congressional hearings, the Chairman announced that the importance of the survey was so obvious that Board support of another effort by the President to spur completion of the survey could be assumed.
V. COMMITTEE APPOINTMENTS.
The following committee appointments were approved:
(a) Chemical Industry Council Advisory Committee Donald S. Catterson, Diamond Alkali Company Harry L. Jackson, The Lubrizol Corporation James W. Kettle, Stauffer Chemical Company John J. Morrisroe, Pilot Chemical Company
(b) Education Activities Committee Thomas Boyd, Monsanto Company, replacing Elbert W. Burr Frank O'Malley, Stauffer Chemical Company, replacing Howard C. Sweet, Jr.
(c) Environmental Health Advisory Committee R, J. F, Kunz, The Borden Company (as a Member-at-Large for a term ending May 31, 1970), replacing E. M, Adams, The Dow Chemical Company J. S. Whitaker, Union Carbide Corporation (as a Memberat-Large for a term ending May 31, 1970)
(d) International Trade Comrnitree Thomas W. Zinsser, National Lead Company
(e) Mechanical Technical- Committee C. C. Armstrong, The Dow Chemical Company, replacing Nicholas Ka moots os R. F. White, The Prottr-r k- Gamb.c Company, replacing A. H. Knoll
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(f) Occupational Health Committee C. U. Dernehl, M. D. , Union Carbide Corporation as Chairman E. M. Dixon, M. D. , Celanese Corporation as Vice Chairman F. Drennan Gassaway, M. D. , Gulf Oil Corporation Frank L. Oglesby, Tennessee Eastman Company, Division of Eastman Kodak Company, replacing W. L. Sutton, M. D.
(g) Plastics Committee H. W. Mascn, Jr., Reichhold Chemicals Inc.
(h) Public Relations Committee E. S. Nuspliger, Jr. , Tenneco Chemicals, Inc, Howard C. Sweet, Jr. , Stauffer Chemical Company, replacing T. B. Gibson T. Kent Webb, Union Carbide Corporation, replacing George Sykes Homer T. Fort, Mobil Oil Corporation
(i) Reactive Metals Advisory Committee (Ad Hoc) C. J. Chapman, Union Carbide Corporation, as Chairman
(j) Safety and Fire Protection Committee James F. Hayes, Thiokol Chemical Corporation Fred Lorentz, Hoffmann-La Roche Inc.
(k) Tax Policy Committee Malcolm Andresen, Mobil Chemical Company
(l) Water Resources Committee H. C. Marks, Wallace & Tiernan Inc.
VI. STAFF REPORT.
General Decker presented a summarization of developments in the Association's program of projects and activities since the last meeting. Copy of this report is appended to these Minutes as Exhibit B.
VH. POLICY CONCERNING REEEASE OF INFORMATION TO FOREIGN GOVERNMENTS, SAFETY COUNCILS, AND PROFIT MAKING GROUPS.
Chairman Gerstacker of rhe Executive Committee reported that General Decker had informed the Executive Committee at its meeting earlier in the day of a proposal by a F tench publishing house whereby they would publish French translations of the MCA Chem-Card documents and pay a royalty to MCA on sales. Aftt r discussion, the Executive Committee had
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concluded that such an arrangement would not be a good idea from a legal stand point. In order, however, to promote universal safety in shipment of chemical products, it had been agreed that MCA should make the Chem-Card documents available to chemical trade associations around the world for translation and distribution in accordance with mutually acceptable arrangements.
Vm. REMARKS BY CHAIRMAN OF THE BOARD, CANADIAN CHEMICAL PRODUCERS' ASSOCIATION.
At the invitation of Chairman Logan, Mr. Stovel, Chairman of the CCPA Board, briefly addressed the group describing the problems currently being encountered, reporting that the Association's effort at present is in the areas of pollution control, education, tariffs, and safety, and noting the help fulness in these activities of .information developed by MCA. In responding, Chairman Logan remarked upon the usefulness of such joint meetings and again expressed appreciation to the Canadian Chemical Producers' Association for their hospitality in connection with the reception to follow immediately.
There being no further business to come before the meeting, it was unanimously resolved to adjourn. Participants then proceeded to the reception and luncheon which followed.
MINUTES SUBJECT TO APPROVAL
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IT A
RULES OF ORGANIZATION AND PROCEDURE of the
EDUCATION ACTIVITIES COMMITTEE of the
MANUFACTURING CHEMISTS' ASSOCIATION, INC. I
(In accordance with Article V, Section 8, of the Association's By-Laws)
I. PURPOSES
The purposes of the Education Activities Committee are:
----- To serve in an advisory capacity to the MCA Board of Directors on policies and activities in the education field.
----- To foster close ties between the chemical industry and school and college administrators and teachers.
-----To promote public recognition for the need for sound teaching in science, engineering and related fields.
---To cooperate with administrators and teachers in the best pos sible training of their students in science, engineering and related fields.
-----To promote throughout academic institutions an awareness of the vital role which the chemical industry plays in the nation's defense, its health, its economy and its support of the educa tional structure.
----- To encourage and assist talented students in preparing for sci entific and engineering careers, particularly in the chemical industry.
II. MEMBERSHIP
All regular members of the Committee shall be identified with member com panies of the Manufacturing Chemists' Association. The Staff Representative (MCA Director of Education) shall also be considered a regular Committee member.
The duties of the Committee Member in his industrial capacity should be closely related with the field of education, so as to contribute substantial interest and competence with respect to the Committee's work. A Member shall be nominated by the Executive Contact of his company, subject to approval by the EAC Steering Committee. When this procedure has been completed and ratified by the Board of Directors, new members will be notified of Membership by the Asso ciation's Secretary. No single company shall have more than one membership on the Education Activities Committee. However, members of other MCA Committees may serve as liaison delegates to the EAC, with their companies' approval even though they may be from companies already represented on the EAC. Representa tives of professional organizations may be invited to serve on the EAC as Asso ciate Members if their nominations are approved by MCA's Board of Directors.
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If nominations for membership on the Committee would increase the total number to more than 30, the Steering Committee will promptly decide which mem bers shall be rotated off the EAC in the best interests of the program then be ing executed. Former members who have been dropped from the Committee roster under this procedure may be eligible for renomination after a two-year waiting period.
III. OFFICERS
Subject to approval by the Board of Directors, the Committee shall elect a Chairman and Vice Chairman.
The term of Chairman and Vice Chairman shall be for two years, commencing June 1 (the beginning of the MCA fiscal year).
Nominations for officers shall be made by a Nominating Committee to be composed of the current Chairman, past Chairmen who still are members of the committee, and the MCA Director of Education as ex-officio members.
All officers shall be chosen from the Membership of the Committee.
Elections shall be held at the last regular meeting of the Chairman's sec ond year in office. In the event the office of Chairman or Vice Chairman is left vacant, a Nominating Committee as described above will propose a successor to complete the unexpired term, subject to approval by EAC and ratification by the Board.
The Chairman shall preside at regular or special meetings and be respon sible for a full reporting on all committee activities not previously reported. In the absence of the Chairman, the Vice Chairman is vested with all the powers of the Chairman and may perform all the acts in furtherance of that office.
The Vice Chairman also shall serve as Chairman of the EAC Steering Com mittee .
IV. MEETINGS
The number of meetings, their place and time, shall be designated by the Chairman, but in no event shall there be fewer than three regular meetings in any fiscal year.
To the maximum extent practicable, meetings will be held at the Associa tion's office or other suitable location in Washington, D. C.
In the event a Committee Member is absent, he may be represented by an al ternate approved by the EAC Steering Committee, who may exercise all the func tions of a Committee Member at the meeting, including the right to vote and be counted for purposes of determining a quorum.
A majority of the Committee Members shall constitute a quorum at any meet ing.
A member who misses all meetings over a period of one fiscal year, either by his own absence or failure to designate an alternate, shall be dropped from membership upon notification from the Committee Chairman.
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Meetings normally include luncheon and/or dinner. When there are charges for such occasions, the cost will be prorated by the Staff Representative and those actually attending will be billed by the MCA. To provide for adequate planning, Members will notify the Secretary whether or not they will attend. In the event that a member indicates he will attend but then is absent and fails to notify the Staff Representative, he will be assessed his prorata share of any costs which may be incurred by such absence.
V. SUBCOMMITTEES
To assist the EAC in developing matters for discussion or decision by EAC, there shall be a Steering Committee as the senior constituted subcommittee of the EAC. The EAC Vice Chairman shall be Chairman of the Steering Committee. Other members will be the Chairman of each of the subcommittees of EAC. The current EAC Chairman shall be considered an ex-officio member of the Steering Committee. So will the Staff Representative.
Other standing subcommittees of EAC shall be the Materials Committee, Awards Committee, Research Committee on Academic Resources, Committee on Rela tions with Other Organizations, Committee on Activities Within MCA. Since the EAC program changes from year to year, other subcommittees charged with executing specific projects are not considered to have permanent status.
The EAC Chairman shall designate subcommittee chairmen and subcommittee membership. The Board will be informed of all such appointments.
Establishment of any subcommittees or their disbanding shall be by majority vote of EAC.
All subcommittees are to conduct their activities in a manner consistent with these Rules.
At the discretion of the EAC Chairman, individuals from member companies with special qualifications or areas of interest may be named to subcommittees even though they are not regular members of EAC.
To meet special situations, the Chairman is empowered to designate ad hoc subcommittees which normally will be disbanded at such a time as the specific proj ect or work in an area of interest is completed.
VI. ADMINISTRATION
Subjects for consideration may originate with any Member of the Committee or with the Education staff of MCA.
An agenda of the subjects to be considered shall be prepared before each meeting and circulated to each member and to Counsel by the Staff Representative prior to the meeting.
The Staff Representative shall maintain a detailed record of subjects con sidered and their disposition. Accurate and complete minutes, prepared by the Staff Representative, shall be sent to each member of the EAC and to General Counse1.
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All matters except amendment of these rules shall be decided by a simple majority. In case of a tie vote, the Chairman shall cast the deciding vote.
Proposed amendments of these rules may be submitted at any regular meet ing; however, final action cannot be taken until the succeeding meeting and upon approval of two-thirds of the Committee members.
An annual written report on the Committee's activities during the preced ing fiscal year will be prepared by the Staff Representative and approved by the Committee for publication in the Association's Annual Report.
The Committee will be governed by the General Principles applicable to the Structure and Operations of Committees as approved by the Board of Directors.
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EXHIBIT B
STAFF REPORT September 12, 1967
Presented by General G. H. Decker
As most of you know and as many of you can personally attest, the days between our June meeting and the one we are holding today have not been quiet ones for your Association. I would like to tell you briefly about some of our activities and their results and also mention some of the work that lies ahead.
In the international trade field, considerable attention was devoted to formulating MCA's position on the Kennedy Round "Agreement Relating Principally to Chemicals, Supplementary to the Geneva (1967) Protocol to the GATT, " The statement was distributed to MCA's Executive Contacts of mem ber firms on August 11. Since the proposed legislation does not apply to our Canadian members, they were spared the task of reading these position papers. However, the papers are available to any members on request. A summary of MCA's August 24 press release on the position was included in the General Bulletin.
The AFL-CIO is closely following the suggested legislation to im plement the 1967 GATT Protocol and Supplement, but has not established a position. It has been reported in the press, however, that OCAW (Oil, Chemical, and Atomic Workers' Union) has voted to oppose the elimination of the American Selling Price method of tariff valuation.
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Another subject on which MCA has developed a position is the Presi dent's tax proposal. On August 24, F. Leonard Bryant presented our views to the House Ways and Means Committee and urged: (1) reductions in Federal spending (2) equal application of the tax surcharge on individuals and corpora tions (3) termination of the surcharge after one year and (4) deduction of tax investment credit and foreign tax credits before surcharge.
Among the presumably pro-Administration witnesses expected to appear at coming hearings on the measure for the House Committee is William McChesney Martin, Chairman of the Federal Reserve Board, and a leading proponent of increased taxes. Talk on Capitol Hill is that the individual sur charge will probably be pegged at 6 to 8 percent and corporations at 10 percent. House Committee hearings are scheduled for completion September 14 but it will not be possible to finish all the work involved before mid-October or later.
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Once the tax bill has cleared major hurdles it is probable that the President's Trade Legislation will be introduced* A commitment was made at Geneva to send the measure to Congress and while the commitment will be honored, the President conceivably might not push very hard toward its passage. In such case the bill might languish in committee and protracted delay could be fatal to its chances for enactment.
Still another position taken by the Association was on pending air pollution control legislation (H. R. 9509). On August 21, Jerome Wilkenfeld, Chairman, and Charles Welch of the Air Quality Committee appeared before the full House Committee on Foreign and Interstate Commerce to present MCA's views. General support was expressed for S. 780, as opposed to H.R." 9509, the Administration bill. Our spokesmen stressed the Association's support of interstate compacts, as administrative frameworks within which pollution control programs for interstate areas could be developed, as prefer able to the federally established and dominated regional commissions called for in the Administration bill. We are optimistic about the chances that national emission standards will be deleted from the House bill.
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Speaking of pollution control, I wish to refer to other developments in that area. The second edition of "Source Materials for Air Pollution Control Laws" has now been issued. The volume of requests being received for this publication is indicative of the active, continuing interest of our membership in this subject.
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Work at Stanford Research Institute on the design and construction of a radiation chamber for the study of the photoreactivity of trichloroethylene is progressing on schedule.
Experimental work for the current Odor Threshold Project at A. D. Little, Inc. , is now substantially complete. A draft of the final report is scheduled to be ready for consideration by the Air Quality Committee at its Denver meeting, September 25-26, and the final report will follow soon there after.
Transportation matters have also received considerable attention. In keeping with this Board's decision, MCA did not oppose the petitions of the nation's railroads before the ICC for a general increase in rail freight rates amounting to about 3 percent. MCA did however, urge that the railroads
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should be required to justify the need of any increase. The increased rates have already been approved and put into effect with a refund provision. Investigative hearings have been scheduled to begin October 3. It is presently anticipated that MCA will not participate further.
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The MCA petition with the ICC asking for suspension of increased rates (amounting to a general 3 percent increase) on chemicals in bulk proposed by the Eastern Tank Carrier's Conference was denied. MCA did not file for reconsideration (others who did were denied), and the increases are now in effect.
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In the mileage compensation proceeding, the AAR petitioned for a twoyear extension of the time within which new multilevel tank car allowances in conformity with guidelines set forth by the ICC must be published. MCA filed a reply requesting that the AAR petition be denied, or if granted, that the case should be reopened and the Commission should prescribe allowances based on the existing record. MCA estimates that any delay would cost member companies about $600, 000 monthly in compensation. API also asked that the AAR petition be denied.
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A. C. Clark, Staff Representative to the MCA Committees on Trans portation and Distribution, Transportation Equipment, and Chemical Packaging, served as an advisor to W. K. Bryd, U. S. Delegate at the meeting of the United Nations Committee on the Transport of Dangerous Goods in Geneva, June 20-30. The U. N. Committee is concerned with developing recommendations for con tainer specifications, packaging requirements, hazard definition, commodity classifications, and transportation labeling for adoption on a world-wide basis.
C. H. Vescelius of Olin and a member of the Transportation and Distribution Committee appeared before a Senate subcommittee on behalf of MCA in support of a bill (S. 1314) which would permit the mixing of exempt and non-exempt cargoes in a single tow on the inland waterways, a practice which has been followed for 27 years but recently declared unlawful in a Supreme Court decision. MCA has also requested that an identical bill ( H . R. 7610) be scheduled for early hearing by the House Interstate and For eign Commerce Committee. Unless these bills are passed, water carriers will not be able to take advantage of the efficiencies of handling large tows with consequent lower unit costs.
We have learned that a change in the Department of Transportation definition of a flammable liquid is not imminent, although still under review.
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MCA and some member companies have informally made effective presentations toward consideration of a more reasonable definition.
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In numerous parts of this report legislative concerns of the Associa tion have been mentioned. To help make the record reasonably complete, I should like to mention a few other items. For example, we have advised William M. Colmer, Chairman of the House Rules Committee,of our support of the Interstate Taxation Act (H.R. 2158) which appears to us to embody a wellbalanced approach to both Federal and state interests.
Here is the status of other measures of concern to us: (1) The Situs Picketing bill (S. 1487), H.R. 100) has been stalled in the House Rules Committee but hearings are expected shortly, (2) the Employee Moving Expenses Measure (S. 1947, H.R. 10275) is pending in the House Ways and Means Committee, and (3) the Patent Reform Act (S. 1042, H.R. 5924) is pending in the House and Senate Judiciary Committees.
Now for other miscellaneous matters worthy of note. At its June 13 meeting, the Food, Drug, and Cosmetic Chemicals Committee nominated Dr. Howard C. Spencer of Dow to serve as an industry advisor to the chief U. S. delegate to the January 1968 session of the FAO/WHO Codex Alimentarius Commission in Rome.
The Insurance Committee has issued a report on the survey of prop erty damage losses due to fire and explosion for 1966. This was sent to all insurance and safety contacts -- not to Executive Contacts. The General Bulletin called attention to this report.
Effective September 15, Elkins Oliphant who has been with MCA since 1957 and who has been the Association's able media representative in New York for the past three years, has resigned to join the public relations staff of one of our member companies. A search is under way for a suitable replacement; also the Public Relations Committee is conducting a review of the entire New York operation.
Many of you have seen copies of the Environmental Health Pilot, addressed to the internal industry audience. The reception accorded this pub lication has been most favorable.
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Currents, the bi-monthly publication directed to many people outside the chemical industry, also has a very receptive audience. Reports on the readership and circulation of both of these new items will be made later.
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While no public announcement will be made for severral weeks, we wish you to know that the first two books in the "Chemistry in Action Series, 11 sponsored by the Education Activities Committee and to be published by Double day & Company, will be issued December 1. Other books in the Series will follow in the months ahead. These paperback books are addressed primarily to high school students of chemistry but are expected to find a ready market among many other science-minded people. They will be made available to member companies at special prices for distribution to teachers and students in plant areas. Further information on this subject will be provided later.
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I wish to conclude by calling attention to several technical seminars and workshops of interest to member companies now scheduled as follows:
Water Pollution Control for Chemical Wastes, October 2-6, Austin, Texas
Air Quality Workshop, October 26, San Francisco, California Pennsylvania Air Pollution Conference, October 2 and 3,
Hershey. A representative of the chemical industry in that state will participate. Rail Car Utilization Seminar, November 30, New York City National Tank Truck Carriers Annual School for Truckers, October 2-5, Purdue University, Lafayette, Indiana -MCA representatives will participate.
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