Document LxkZ282Nm5ZjLNM0yqwxB9n5

fklCTI0.-1 dAE~::IALS STA.m.>ARDS Il:lSTITTJTE, IHC., E. 210 ROUTE 4, PARMIDS,il.J .07652 of the r\~IC'riO~' ~fl\T?l'..IALS S'i'MIDARDS llSTITUT!, INC. tofednesday and TI1ursday, June 27 and 28, 1973, 8:30 A. U. at Lodge at Vail, Vail, Colorado i:U::.i:ffi:!:RS PRESE~lT REPRESETATIVES Abex Corporntion Au~o Friction Corporation tendi~ Corporation Friction Materials Division nraasbestos ~lanufacturing Corporation Carlisle Corporation ~lolded Tiaterials Division Gatke Corporation General Motora Corporation Delco-tmraine Division Haremont Corporation Grizzly Brake Division Uolded Industrial hiction Corporation Raybestos-Uanhattan, Inc. Royal Industries Brake Products Scandura, Inc. (Cantex) Standco, Inc. ~. K. Wellman Corp. l1heeling Brake Block Uanufacturing Co. Unrld Bestos Co111Fa;1y, Division of the Firestone 1ire & ~ubber Company R. Cutler Stuart Comins F. E. Uessier w. Simon E. R. Zacharias F. T. Gatke ~\ J. Kick J. ~1. Greenen H. I. Frazier D. E. Got~ D. Ogilvie D. Easveld J. S. Allen J. E. Clegg L. Burgess c. Heber OTHl~RS PIU:;S ~-.T Abell Corporation Auto Friction Corporation Gatke Corporation General Uotors CorporJ!tion Delco-Uoraine Division llaremont Corporation Grizzly Breke Division Nolded Industrial Friction Gorp. Rayhestos-l1anhattan, Inc. Royal Industries Brake Produ~t~ s. r~. l1ell.mall Corporation t:heeling Brake ~lock ~1anufacturing Co. Horld Bestos r:ompany, Division of the Firestone tire & Rubber Company Friction llateriala Standards Institute Stickles, Kennedy & Van Steeriburgb R. E. He!son N. Comins ll. Boyle R. E. Kr.:tterins D. Carlson F. Skelton A. Laus B. Ozmore It. R. itoalli w. tt. ~leeth c. Newell G. A. Carrigc G. Stratton R. J. Alleman E. w. Drislane L. D. Stickles FMSI 00003 llinutes of .\nnual reetin~ -2- J:Jne 27-28, 1n3 uar FRESEUT Auto Specialties Hanufacturinf': Co. Chrysler Corporation - C~1e:n:.i.caJ :Jivision Forcee Hanufacturing Cor~oratior;. Lasco Brake Products Corp Ltri. H. ~:. Porter Co., Inc. Rerlrlm-1ay ~;anufacturing Co, , Inc. Tbio!~ol Chemical Corporation .r. Greenen, President, acting as Chairman, called the ~~eetinr. to order at 8~ 30 .'.. l~. .iH!UTES '.JF PREVIOUS ~1EtTIHG The tfinutes of the Heetin(! held June 23 and 29, 1972 had been distributed. t!o reading ,;ras reque~ted nor were any corrections made thereto. Upon not:lon duly made, seconded and unanimously passed, it was RESOLVED: ~~at the minutes of the i'1eetins held June 28 and l?, 1972 be accepted as distributed. PRESIDENT'S REMRT .), T.f, Creenen. p,~esidant, opened the ~~eotinP ~lith a report on the Institute's progress du~ing th~ past fiscal year. See EXUIDIT 1. ~Ir. Greenen covered the highspots of the year's activities including rJ,q '!l~Ct.lngs J~ th~ r-:a.k.;;. l'e""fonance Study Com-:Jittee, the Data Book & Techn:!.c<1l Cot!':llitt.ee. and the Asb~stos Study Committee. In addition, a Special cfeetinP, of the Board of Directors was held in ')ctober 1972 cot1c::rnir~ the controversial requirement of brake lining certification by th(.: Atil1t.. 'r.1e President com:nented on several other iteliiS in hia Re~,:rrt, and in conclvsion he mentioned the illness: of ou1: 'l:T~ao~ec. U::- al 1- aJ.y Uron '1lf1t~.ou J.,1ly rutde, seconded and unaniJ.,ously passed, it was JU'SJLVED: That the President's ~pori: ue accepted as read. In accordance with our Constitution and By-Laws, Hr. J. W. Greeuen, ~resident, assumed the responsibilities of !reasurer u~on the disability of Er. Allan Daly. The Secretary read the Treast::re!'' s Ileryort. The followir.~ Exhibits make Ul tl.e 'iroat~\lrQr's l'.epc;t;:; EXli!BIT ~.1 - B:1lance Sheet rroiected to- Juue 30, ~73 EXRIBIT 3.2 - hccme Statement fo"r the 1972-73 Fiscal Year. EXlill,rr 3. :J - Reti.ri!'!Mnt Fund - 11. G. Dtschek ElaiiGI'l: 3. 4 - 12 year F1nanc:l.al Highligi.it:S, FMSI 00004 l1inutes of :.nnual !eeti~ 3 -3- June 27-28, lS 73 It was noted that the '.freasurer'c; 'erort 'vas made up during the first t-7eek of June 1973, and the June 30, 1973 figures had to be estimated based on anticipated June expenses and the fiscal year-end accruals. In summary, the Financial 3tatements shotted more than $100,000 in savings accounts and time deposits, and over $20,000 in Hiss Duschek's Petirement Fund. 'I1w. Institute operated c:uring the r'72-7:1 fiscal year with a net income in ~~~cess of $10,000. It was noted in the 12 year Summary of Fina.ncial ~iip,hlights, that an Active Hember in 1961-62 with one category had an annual fee of $800. In the same year, a Regional Hember paid a total of $l,JOO. By 1972-73 an Active Eember with one category was p~ying $1,700 in annual dues v~1ereas a Re~ional Me~~er was paying $1,300. In other uords, the Active llember was paying in excess of 100% more in 1972-73 than he was paying in 1961-62. n1e Regional Hember had been increased only 030%, f-rom $l,OJO to $1,300, durinp the same period of time. There ~-7ere similar dispari ties concerninr, the increase in dues with ~er,ional \ssociations and Licensees. ~:pon motion dtly made, seconded and unanimously passed, it was ftES0LVED: To accept the Treaeu~er's Report as read. ASDESTOS STUDY COl~UTTEE F.LPOP.T l'tr. I. H. lJeaver, Chairman of the t>.:.:bP-stos !ltudy Committee, was present to deliver a talk to the Membership concerning asbestos problems in the frict:ton materials industry. Ur. Heaver had submitted a ~otritten report summarizing his Committee's activities durinp, the 1972-73 fiscal year. R.::~ther than report strictly on the activities vf the Committee, !lr. ~.Jeaver had been ashed to deliver a talk conct!rn.:tnc the baclq~round and seriousness of the ARbest""o '''CF.,ul~tt.ms aR t-hey concern the friction materials industry. trr. rreavc1.'s Report on the Asbestos Study Committee activities is :i::J\:iiiBT.T 14. In addition, the arlrlre::::s that Er. Heaver gave to the ::etlibership at the June 27 l:leeting is shown as F.XtiiBIT 14.1. :ir. Ueaver discussed some of the background for the O~P"- and the EPA regulations. In particular, he pointed out that the OS11A label requirement was consideTably less severe than that orieinally recommended by the OSHA Advisory Committee. Mr. Ueaver particularly recommended compliance with the spirit of the OSUA regulations and suggested that if industry does not show a willingness to comply ,.,ith existing regulations that the consumer activist groupe and organized labor may push for even harsher regulations. He also discussed the EPA Emissions Standards ~v-hich again he found to be reasonable and attainable. !fr. Heaver closed his discussion indicating that the Asbestos Study Committee t-7ould continue to keep on top of the regulations emanating from Hashinr;ton. Hr. Ut>avP-r ans1-1ered some questions at the end of his talk. One question had to deal with the accuracy of the membrane filter method for measuring concentrations of airborne asbestos fiber. ;.>-lr. ~Yeaver replied that it is very difficult to get accuracy into this method. It takes considerable training, and even with-the training different operators will have different FMSl 00005 Hinutes of Annual :'eetir'~ -4- June 27-28, 1973 readings. 'iJhile he indicated th:lt there are definite problems with the membrane filter method as regards enforce~~nt purposes, it is a tool for the manufacturer to use i.n monitoring his ~wrk areas. ltr. l.feaver mentioned that the Germans have been Harking uith a gravimetric systeM. A proble!'1 is the fact that all Birborne materiFls ir.. a fr:f.ction materials factory are not necessarily asbestos, and that the r,ravimetric system does not distinguish between asbestos and other materials. ~lr. ~ 1eaver felt that any net>J system to replace the membrane filter method is far off tn th~ future. r. l'lember asked concerning the EPA emissions requirements ~There they are jn <:!ffect legislating dry collectors over wet collectors. The question wa3 'T.Jhy." T!r. Heaver replied that the ":Jet collectors require very high horsepower to l:"educe the visible emissions to zero. In essence, it iA very rlifficult to get "no visible emissions 11 Pith a wet collector. :'mother question co11cerned clothing and the 1SHA regulations. It was pointed out that several manufacturers use an outside cleaning service for the clothin~ that j_s uom in the wor!t area. Mr. Heaver emphasized that the r.anufacturer should specifically ~otify the p~ople doinr the cleaning that this clothin~ 1s used i!1 an nsbcstos handlin~ work area. Another question had to do 1:-1ith the recorr.mendation that !!r, T-Jeaver made that all boxes or eartons contaii.rl.nt.; friction materi1s l'.ave the OSilA la'Jel imprinted thereon. In th:lc case, the -tuestion concerned a drilled taper ~round b::-:1ke lining set ready for installation on shoes. D1. d this require the OShA l::tbt!l, since it was most l:U:~ly that there r.Jou~.ci be no S'.lh3equent drilling, c.1tting, or grinding to put as~estos dust into the atracspherc? '.Ir. ~,]e.:tvel:" suggesteu that th~re is alto7ays the ~ossibility ').;' a~d:i.tl.-::r,:J.l cutti 4> l:.:;!.lling, or gdnd.:ng .~nu +-hat he fe:lt ;:he t1!:>HA label should be used here also. His point is that in th.esc subseQue~.t operations the asbestos can be raised to levels aoove the 5 fiber per cc limi.t in the OSiil\ standards. This will be even more of c. problem t..rhen the stat:dards drop t(} 2 fiuers per. cc. Mr. ~1eever felt the ,Js~IA regulations indicate ~hat if there !n.ay he Sl!bsequent ope~ations, the label shoulrl )~ used. Upon rr.otlon 0uJy made, seconded and unanimously !-ansed, it was RESOLVED~ To accept t::e !:.eport of the Asb~st:os Study Corn:ni \: i:ee as p r.es ente<i -!1-EH-B-ER-S-H--I-P----C--Cl-l-JilTTE--E REI'OP.T ~ir.. P:ra.:1k 'L t;atl:::e reportad on the activities of c:he dt!lill>~rship Co:nmittee during d;.e 19 72 i3 Hsca l year. ,;ee ~UBI'l' 2. In sunnnary, Ur. Gatke 1s Rea;;ort shewed the following changes in M"!mbership ~n the I~stit~te: FMSI 00006 Minutes of Annual Meeting -5- June 27-2d, 1973 ;July 1, 1972 June JC, 1973 Change Active I:embe:;:os .,_agionnl ~[zy:-,i)<~n:J I,icen3cen 25 10 ':> '-' 23 (2) 11 1 8 In :rr. Gatke's ?.eport it t.ras indicnt'.:'d thDt we lost Silver Line Products, Inc. and the Johns-i\anville C:?rporation. At the conclusion of Hr. Gatke's .te(:;c-r:-t, the Sec.:E>tar< ;;..-lvisecl that l:uto Specialties Corporation of St Joseph. Hichigan 1vas also terminating its membershil'. 'The Secretary uas directed to contact Cali-Blok and Scan Pac, Inc. relative to their applying fc"C membership. There were several comrcents made co:tce~iug :;ome South American manufacturers whom it ts believed are using the Fl.-.151 Uumbcrs on products export~d to the United States. Arr.ong those mentioned was Pasta Clutch, S.A. (Nexico), Francisco Sterlile S.A. (Brazil) , and ra11ufaeturas i1ultip les, S. A. (Venezuela). :r. t ~.,as recommended 1:i.1at i:he Secretary detertnine if t 11ese manufacturers are using the copyrighted F!iSI Numbers. Upon motion duly made, seconded and unanimously approved, it wns RESOLVED: That the Report of the l!ecbet'I'Jhio Committee "";e t>ccepted as re'ld. INVEST:'JENT ADVISORY COl!HITTEE :ir. H. SL;.on, Chairmar. of t!te Investment td.riscry Committee, '3ubrr.itted the Report for his Committee. See EXHIBIT 4. In summary, the Chairman pointecl out that the I,le!:J tut~ has transferred u con~::.id~rable amount of :f.ts savings bank money to time ,J.~pos:i..ts .t n:!.Eher :lnterast cates. 0pon motion .1uly l!l.:tde, seconded and unanil4ous1y passed, it was R2SOLV!~D: To accept the Report of the Investn:ent J~isory Committee as read. THE BUDGET COI-1!-!ITl'EE R!~L'C:l"I:. Nr. Ca\'1 tFebel:', Cbafnun of the Budget Committee, presented his Report tri.tA t:be !.'ropCMecl 'Budget fo:':' 1973-74. See EXlliBIT 5. l~ summary. tbe P~osed Eudget for 1973-74 calls for tot11l expenses of $7'..130 vs. the 1972-:'3 budgeted :n.-. penses of $73,795. This is an inereese amounting to ] es3 than 1%. The major 1 tom in the Budget is salaries and the budget indicates a slieht increase over that actually spent in the 1~72-73 fiscal year. The only :f.tem v7hich is a l'liJmlfi.:ant d~parture from the prior year's Budget is the amount. of $3,500 in the P~oding Project category. Thia figure is for a per.~ioa and insurance program ~.rhicb it 1a planned \liU, atcrt early in the 1973-74 fiscal year. Upon 110tlon d.J.y 11184e, a~d, anJ unani1!10U8ly approved, i t was FMSI 00007 liinutes of t.nnual :eeting -6- Ju..,_a 27-2?, 1973 RES~LVImt To acc:eyt the Lu:iget COI!ltld.ttae F.eport as read. FER ll'CR!'-L"'LA cmn l!TTE! RF20llT l!r. l.>id't'e Laus. Chairman of the Pee iormula Committee, reported on the a~tivities of his Committee. ~ea. P~~:IBIT 6. '.1.'l.e Fee Formula Committee is recomm<!nd:lng that the formula for the 1973-74 fiscal year be the ~ame as that used for che 1972-73 fiscal year. This fee fo:rtT'nla Bivas the following: Active i'embers - Basic Fee Cntegory Fee - $1,050 650 - Associations - $1,~00 Individual FimD- 1,300 Rer;::...,n<:l ~'embers (U.S. <:opyrir.ht) - ~ar,,:.: as .!'.ctive Hell'her -- category determined as categories exported to u.s. usine B1SI copyright. Licensees $51)0 Ur. Laue reported tbat the fees tor _b,.ctive J!embers have increased over the last 10 years at a si~ifica~tly greater. rate than the fees for the !P.!ional Members. Upon 11\0tion duly made, seconded and uuanioou:<~ly pa'!sed, it W!3S R~SOL17ED: That the ?.eport of th'! Fee Formula Committee be accepted as read. b.EGISLATIVE 1\CTI~I'i'Y C0!1MITTEE REPOR,'!_ llr. NoTroan Cowiu!t, Chai~ of the Legislative Activity Co'"''U.tt~e .,...pvl.t-cd on his Committee 1 s work du~ing 1972-73. See EXRIUIT 7. iWMentially, the Reptn:'1! stated that there was no legislation affectin8 tha bralul lin.inl industry during the 1972-73 fiscal ~!ear. Mr. Comins inqui~d as>eCific.ally of lfinnesota and Califo1.-nia as to their plans for any brake liniat ler,islation. Hr. llelson askP.d Mr. Comins to provide him with tbe x.ct. woriing of t~e Ninnesota bills, if availahle. Upon motion duly ~de, seconded, and unanimously passed, it was RESOLVED: 1bat the Report of the Legislat~ve Activity Corr~ttee be acc~pted as rend. llr. Hill!am Simon, Chairman of the rub lie Relations Committee, repurted on the highlight of his Committee's activities for the 1972-73 fi.seal year. See EXHIBIT 8. FMSI 00008 -7- June 27-28, 1973 Upon motion duly made, seconded, ...nd unanimouc.ly approv~d, it ~-ras TIESOLVF.D: to ac:c:ept the Report 0f the Pub lie i:E!iations Committee es read. TilL': Ii:lSTITUTE DEVt:LOP:t-ill:T':C CONl'liT'IE~ REPOi'.T ::.;1e :Jecreta,.y rea<l Mr. J. ti. Kelly'~:: l~eport on the activities of the Inn t:t tutP Developtr.ent CctmTli ttl!<>. ':ce L:XI!IBIT 9. !'hi& Report highli$t:ed the year's activities ~'ith in for1uation on the C.:ow:.dttee's reccmmendations on brake parts manufacturers, the dinner for Mr. Hc.Goverr, publication of the F~1SI dEPS, and publication of the AL'TONOriW BRAKE DIAGWJSTICS Catalog. Upon motion duly made, seconded, and unanimously approved, it was RE31JLVED: '111at the Rep01:::- of the Institlte Development CC'r'Ti'\.tttr>e be accepted :>9 read .'\ brief report ~1as included for the Hembership concerr.!ng the Institt.te 's Historical ~nles 1~eportine JJrogrem. See EX!ii13IT 10. derrL~L~ iudicetc.' that the ;1i.storical salea figures seemed more reliable from the lns t report. The 1'r~sident ernphasized the conficentia1 nature of the "C:;)portinr in that. no or>.~ o'J1er thar the certified public accountants see the actual data sent in by the ~!embers. A i'!ember questioned whether it mir,llt not p;et bette:: res~onse if the data sent in die! net: !ndicnte the reportina tiember. It was indicated that i t 'YOuld be possib1e to set up a procedure along these lines but it is felt, for interpr~tetion purposes, that it is be.st to kn:1.-1 uho is reporting. Mr. T{ettering commented that manufacturers h~v~ been reportin~ in a similar fashion on brake fluid for over 20 years. lbere is a relatively high percentar~ of the manufacturers. reporting and they hr.ve had no dtfficulty with the program. the President felt that this subject was important enough that a brief nport should be put out concerninr; bra!~e parts manufacturers and the Institute. See EXUIDIT 11. '!'lis P.eport mentioned the forl!lat'ion of a Brake ~arts l'ianufacturers Council W:Lrler the auapicee of umrA. It also me!ltioned the Uistorieal Sale1 Pror.ram run by ItEHA. The ~ort covered the Inatituta 's dec:isi.~ not to alter thei~ Constitution and By-Laws to permit membership in the Institute by brake parts manufacturers. ~1essrs. Nelson and r.utler. of Ahex Corporation, had indicated that it vould be desirable for the Institute to cooperate with l~~ in any historical sales r~porting. FMSI 00009 Hinutes of hnnual l''eetin~ J~ 27-28, 1973 The Doard, at its !-reeting on June 2?, 1973, expresaed tneir willingness to cooperate with an.,r ot.'ler trade as!':ociation 'l1iere there mir,ht l)e Mutual benefits deriv.ad irom audl cocperativn. t.ny formal program as regards brake parts ~2~uf~ctur~rs ~s r.ot pl2nned. TilE DATA c:q'~. '' fEWiUCAL OXllUTTEt: REPOI!.T Hr. !'.on lloalli~ Chairman of the Jata Uook -~ Technical Committee, reported on his Committee's activitie~ :~uring the :,:>~st year. ~ee 1.cX:IIBIT 12. Arr.:mg the highlights of the year's acttvities ~~ere the uork done on the cot".solidation pLogram, aridi.tional forei.r-;u car coverage in our BR.-....(.6: ~:!OF. Iu.t.il'I'l ?It::. .rJ~;! CATALCC. shoe assicnmcl:'t:J for shoes takinp. the 40GO Seri.a~ blocks, changes iu dr:' lllnt~ patterns for disc i>rRke shoes and a CI":.DOn numbering system for Buropean brake linine. 'u~~ I:.u::-opean numbering sys tetn was covered at the Eoarcl 11eeting on June 26 and the Institute indicated that it would be happy to assign PtlSI Hulltters to the various Europeau linings as we receive the necessary prints and application data. Uc have no other suggestion for a common numbering sy~teo for t~e Eur~pean market. A Me~@r questioned the assignment of shoes for the 4000 ~cries Blocks. ~:r. rloalli replied that the procedure here would be to assign the first heavy shoe A-1. the next A-2, etc. A popular block such as FtfS /14515 Hotlld tnke "ne of these sl~oes (for exam:'lt! the A-12 shoe). T!'larc POJld lJe no discontinuance of t~1c 4'JOO Series liurcbt>!'~, just additicn.al information as to what t.he proper shoe is to go vith the 451.5 block. ". it~ul.Jer q.:estL:>ned tvhether ..;onsolidar:ion uas plamcc f~r ,Ji.JC brake linings ani~ the Chairman replied th:1t the current work '.788 only for drum brake passenr;er car linings. Hr. Hoalli indicated that Iilith the she~t:s pr~v,:ed fo~ the con:1oli.datiun, that a manufacturer rn:lght not C!Ven :;eed a ':.;luepdnt for all :.he sizes. H'! wo~lld plan on pu~lishinp.: ~Jcut 200 p<.JeS '\1hid sllQuJ ,; cuvf;:r all sizti!s. It u.:.s 1.ndi.cated tl".at t!1'! r:onsolidatif'n program should be co111pletc: t:laroc:.@1 Fhase 3 gometime rlurlT'J.p th~ comins fiscal year. Upon aotioa ~uly Nd, a.conded~ and unani1110usly ~ased, i.t was RESOLVE!h To ac:eept the Report of the Data Book & Technical Committee as read. BOARD OF DIRECT0'1.8 J;EPJRT The SecretaTy reported oa th~ resolutions passed by the Board of ~rectors at the Jur.:! 26, 19 73 meetin;~, The Secretary reported that du1:in.g the 19 72-73 fisclll year, the following resolutions vere passed: FMSI 00010 dinutes of Annual ~.~etini -9- June 27-28, 1~73 1. Accr.:ptance of the ;.roposed bud~et of $73, 7~5 f'or the fiscal y~ar ,3 tarting Julv 1, 19 72 as "dopted by the '!emll@.rship. 2. /-ccept mer: of th.; f .e r'-'rrad a for the fiscal year st<rtin~ ... uly 1, L 72 as proposed by r.he out~oinr, ;)oarrl an:i adoj?t?d l>y the i.ietni>ership. 3. ..1atified all lets of the officers, stclff and committees for the year er.ded June 30, j? 72. 4. .1pposition to the A.~J:':VA certification requirements for bra~e lining. 5. '1hat the Constitution and ty-l.a>t:s 1ri11 not 'I::: a chanr-ed to permit membership ty nbrake parts" 1"\anufacturers. In addition, the :Board of Directors recommended to the nembership acceptance of Lonafle~: S.A. (3razil) as a llegional ;.tember. The :loard of Directors accepted resbnations of the followinr, Active Hembers~ Jchns-Uanville Corporation, Auto Specialties l!a.nufacturing Co. and 51lver Li'!le Products. Inc. Tlte :-irectors resolved that Cantex Corporat!Olt vas not currently tlk"mufacturing friction materials and therefore could not act as a successor nember to ~candura, Inc. ilr. Simon, Chairman, reported that there were three .Goard of l.1irectors tet'm!l <-1hich l-IerE' expiring t"'tis year: Itr. Simon, Brassbestos Corporation, Hr. Ueher, World !3estos Company, and hr. GO'IT, l!aJbestos-aanhattan, Inc. the Chairman reported that his Committee, after due consideration and in accordance r,rith the requirerilents of the Institute's Constitution, presented the foll~rlng candidates for election to the Poard of Directors~ For a two-year term: Hr. 1>. E. Gov. Uaybc3tos-aanhattan, Inc. lir. n. Cutler, Abex Corporation, American Brake Block t1ivisior. :~r. H. Simon, Brassoes tos Corporation In aftS\Ier to a questien from the floor, it vas ann.ouneed that the foll~'iae are the Directon l-those rerms trlll be eX!Jirinf1. as of June 30, 1?74: 'tt. J. u. Greenen, !1aremont Corporatitlll, .fir, ~ ...... Gatke, Grizzly Brake nlvision Gatke Corporation Hr. F...;. Uessier, Bendix Corporation, il'riction t!aterials DivisiM Ur. E.R. Zacharias, Carlisle Corporation :tolded ~taterials Divisicn Other nominationa wure called for but none were ntade. FMSI 00011 dinutes of Annual (TP.etinr. -lo- June 27-28, 1973 Upon motion July ~r.ade, seconced and unanimously pa~sed, it \-Tas !'.ESCLVED: 'l'bat noraii:.ation;:; be closed. l'h~ Secretety as directec.i to c.:tst one vote for the election of the three nominees to t!.e Iloard of Direccors. 'fhe Secretary aclv:tsed that the ballots had l:leen cast. ~:r. Si::on advised that .,ith the election of i..hes candidates, and the four _:irectC'rs uhose terms have not e:lq)ired, tl:.c F.oard no:r cou::;ists of the ret'luired seven i'!embers. J.jF.Al~E PERFO.:'.::TANCE STUDY co::HITTEE !'tEP0Tt'l i~r. R. ::. l!elson, c,airma...'"l of the .Crake l'erformance Study Commie tee, delivered his Report on the activities of th~ Committee during the 1972-73 yaar. :';ee L'GUriT 13. Upoo the completion of ''r. ~!elso11's presentation, questions ~~ere asked concerning Dod:et 1-4 and, in particular, the requirement that an inertia dynamometer be used to evaluate replacement brake linin~s. to ive some background, ~~r '-!clson explained that the developll"ent of a test procedure has been made the responsibility of the Safety System8 Laooratory. ~ne ~afcty Systems Laboratory is a resea~ch arm of the :.;UJ:SA. ~1r. Bob Forthofer and Ur. John l:'reston, cf the Safety ~yst~ms Laboratory, were for;:r.erly Hith the .Jational Bureau of gtandards. lhey have laboratory facilitie!:l for various friction test machines an.d d:namcnteters as well ae instrumentation for automobilelf. Baaed on tests that they have rcn, they nave convinced themselves that the Friction Test Hachine will not correlate 'lith "Lh~ vehicle test. .\s it is their intention to pattern the re!"lacement lininp, standatd on the BNSS 105a, o brake syste~~ standard, it is conceivable that they may wish to natch performance lith >Very original equipment lining on every orieinal equipment loading. This would make for a galaxy of tests. To T'lake such a program practical, even tdth the lack of iu ~rtia dynamoT'Ieter capacity, there t~ould h11ve to be SOJT'e grouping of loadings. Hr. Forthofer baa said that they are working on the clesign of a "minimum t:lacilill4l'' whicn, in government language, means something like $50-75,000. In answer to a question, rir. i:lelson Gaid l:hat Docket 1-4 currently is aimng at coverage of hydraulic brakes covered by FMVSS 105a and not on brake blocka. Further. he indicated that the coverage would be for the 1976 models which start in production on or after September l, 1975. The .{!H7St\ ha11e oeen considering P-arlier ears, such u the 1968-7' models, but coveralle is not 1-.noun at this tit-'e. Upon metian duly made, seconded, and unanimously passed, it was RP.SOLVID: to accept the ~eport of the trake Performance ~tudy Cc-P:l.:.oi t tee as read. The session on June 26 atatcd with the Report by the ~airman of the s'\nnual Ueeting C0111111ittee, Hr. F. E. >~easier. FMSI 00012 liinutes of .Annual ;Ieeting -11- June 27-23, l'J73 Some discussions took place concerning the Annual :Ieeting and the Report was postponed until some late arriving Members -..rere present. Hr. t:essier' s :~eport indicated that the : :eeting would once again be held at the Lodge at Vail, Vail, Colorado unless exceptions were taken to that recommendation. :Hr. i.-lelson advised that June 17 through the 24, 1974 t>Tas definitely Fleet Ueek and that the Institute should not have its meeting conflict with Fleet T,!eek. As there had been objections raised to returning to Vail, based pri~rily on the distance to the airport, suggestions were made to return to the Doralin Florida (near Hiami Airport), to a Sheraton resort at Reston, Virginia (near Dulles Airport), or to one of the resorts at Hilton head, South Carolina (near the Savannah Airport). A motion to accept the Report of Ur. ~tessier was made but not seconderi. A ~'ember requested a floor vote on the preference to return to Vail or not to return to Vail. A show of hands indicated a preference not to return to Vail. Su8p,estions were made from the floor to go to Hilton Head, assuming reservations can be made. Assuming reservations cannot be made at Hilton Head, it Has sugP.ested the Institute Heeting again be held at Vail, Colorado in 1974. rersonnel at the Lodge at Vail lJere contacted and they indicated that dates were open in June 1974. Upon motion duly made, seconded and passed, it was RESOLVED: That the June 1974 Annual l~eeting of the Institute be held in the Hilton I:ead, South Carolina area, assuming reservations can be made o Hr. Hessler and t~r. Kettering l<1ere charged with selecting the names of places to contact at riilton Head to determine whether our Heeting could be held there. On a suggestion from the floor, either the Chairman of the Committee or the Executive Director were instructed to actually visit the facilities and check them out before a commitment is made. ~~o criteria that stand out are (1) convenience to airport, and (2) location and condition of the golf course. Additional suegestions were made from the floor to change the general structure of the ~.nnual Heetingo A recommendation was made that the next l.nnual rteeting be opened to the 'i7ives of Members and that the Institute recounuend inviting the wives. Objections uere raised from other tiembers stating that they liked the Annual Meeting format the "iJay it is n~1. If rtembers wish to l>rinp, their wives they, of course, may do so, but the Institute does not encourage this. A motion was made and seconded to have the format changed to invite the wives but it was not carried. The next suggestion came from the floor: '~fuy is the meeting on a Tuesday-Wednesday-T'nursday?" It was stated that one reason for this schedule is to allow the Tioard of Directors and the Committee Chairmen t>Tho must appear at the I3oard lleeting travel time o For example, if the Board Heeting were held on 'Ionday, these Members t-.Tould have to travel on Sunday. It was explained that there was no hard and fast rule requiring a Tuesday-Wednesday-Thursday MeetinB and if the Hembers wished to change to a Uonday-Tuesday-Pednesday Heeting or a \Tednesday-ThursdayFrid.ay Heeting it could be done by a vote of the tlembers. A motion was FMSI 00013 ;iinutes of Annual l!eeting -12- June 27-28, 1973 made to change the dates to a ~:onday-Tuesday-Uednesday Heeting, but this motion ~o1as never seconded. Upon motion Made, seconded and unanimously passed, it ~as ItES:1LVED: To accept the ~teport of the Annual Heetinr; Committee as read ,.,ith the exception that the Membership has selected Hilton Head as the first choice. INTROfiUCTION OF LH!.'t-7 OFFICERS Officers for the 1973-74 fiscal year ~Jere selected at the Board lleeting held on t-lednesday, June 27, 1973. Ur. J. ~J. Greenen, the President ~1hose term expires on June 30, 1973, introduced the 'net-r Officers: :ir. Frank Gatlte - President :1r. !Ulliam Simon - Vice President l-1r. Andre Laus - Treasurer t~r. Edward Drislane - Secretary l-lr. Gatke, the new President, addressed the Hembership and indicated his appreciation a~ having been elected as President and assured the Uembership that he would keep the Institute moving forward as it has over the past many years. *** There ~eing no other business brought to the attention of the !Iembership, on motion duly made, seconded and unanimously passed, it was P2S~LV~D: To adjourn. 'fhe Heetine Yas adjourned at 10:10 A.ll. E. r.r. Oris lane Secretary FMSI 00014 Fr._I G.~ 10..4 :1 ATI:~.L\LS S'l'fo.d;,Arl>S I~!STI'i'UTE, I!!C'., .... 211') P 1UTE 4, rf.'{ANUS, :r. J. 0 76.J2 J'..U:'USt 14, 197) T0: Su llJEC'.C: nnARD or nruEcTo~ l~I..itJTES :lF BOARD OF I.;FtCGTYlS ~tEETI~!GS JU~.i: 19 73 Lnc1osed are the Minutes of the t~1o Doard of Directors Heetings held at Vail, Colorado in June 1973. These have b~en approved for release by your fresident and Leeal Counsel. The aeetings were: Board of Uirectors - June 26, l97J Board of Directors (new)- June 27, 1973 In the llinutes of the Board of Directors Heeting on Tuesday, June 26, 1973, ~eference is made to b~HIBITS l to 15. These are the following: 1. l'resident' s Report 2. Membership Committee Report 3. Treasurer's ~eport 3.1 Balance Sheet - Projected to June 30, 1973 3.2 Income Statement - Projected for the 1972-73 fiscal year 3. 3 T~etirement Fund for H. G. Duschek 3.4 ~1elve Year Financial Highlights 4. Investment Advisory Committee Report 5. Dudget Committee Report 6. Fee Formula Committee ?.eport 7. Legislative /o.ctivity Committee Report 8. Pu~lic ~elations Committee Report 9. Institute Development Comr'littee Report 10. Historical Sale9 Pro~ram 11. hydraulic Parts ~tanufacturing 12. Data Book & Technical Committee Report 12.1 Imported Cars - Cataloging 13. rlrake Performance Study Committee Report 14. Asbestos Study C~ittce Report 14.1 Address by I. Heaver to Hembership 15. Ann'-"cll Heeting Committee Report "'.a these reports were enclosed with the i'linutes of the Annual t-.i.embership Heeting, "1e are not enclosing additional copies with these Itinutes. If you vish an additional copy of EXHIBITS 1 to 15, please advise. MID: llz cc: lir. C. J. Weber Hr. L. il. Stickles, Legal Counsel FMSI 00015 F!US'i'IJ.-i t.J\':..'ERlt'cL.? ST.t.:IDARDS L'STITU'l'E, INC. S. 210 U.OUTE 4, PARM1US, :: .J .0 7o52 of the DIReCTORS P~~SEN'.i' Tues~ay, June 2G, 197J, at 9:00 .t... r. at Lodge at Vail, Vail, Colo~ado J. Greenen, President F. ~1essier .1. S~.mon F.,....... Gatke, 'Ieber Vice President iJ. Gow E. Zacharias liaremont Corporation ~endix Corporation Drassbestos Nanufacturins Corp. Gatkn Corporation \l!orld I3estos Company Raybestos-t1anhattan, Inc. Carlisle Corporation OFFICER~ P!!ESL:.JT E. Driclane, Secretary L. Stickles, Attorney Friction Haterials Standards Institute, Inc. ~tickles, Kennedy &Van Steenbu.rgh COlf.liT'fEr. CH.Ali.U!Eil' l'RESZi~T P... Moalli (:':lata ~;ook) P.aybestos-Hanhattan, tnc. R. delson {ilrake ::?erformance) !bex Corporat:i.on Hr. J. Greenen, President, acting as Chainnan, called the Neeting to order at 9:00 A.H. H!dUTES 0F PREVIOUS t-IEETING 'TI1e ilinutes ot the Meeting held 'Jctober 26, 1972 had been distributed. t!o reading l>7as requested nor uere any corrections made thereto. Upon motion duly made, seconded and unanimously passed, it was tlliSOLVED: That the :anutes of the Heeting held October 26, 1972 be accepted as distributed. PRESIDill1T' S P..EPORT Hr. J. \i. Greenen, President, opened the Jlleeting t-7ith a report on the Institute's proe;ress durinz the past fiscal year. See EX!il3IT 1. Mr. Greenen covered t:1e high spots of the year's activities including the oeetings of the llrakc Perforrr~nce Study Committee, the Data llook & Technical Committee, and the ~~bestos Study Committee. In addition, a S?ecial ~weting of the Board of Directors was held in October 1972 concerning the controversial requirement of brake lining certification by the AAMVA. FMSI 00016 i :inutes of i!eeting of Board of Directors -2- June 26, 19 73 The President commented on the formation of the ne~1 -'~uality Control Subcommittee, reinvestment of our Institute funds, publication of Automotive Brake Diaenostics and the Dinner honoring :_r. J. L. i~cGovern, Jr. In l1r. Greenen' s conclusion b.e mentioned the illness of our Treasurer, Hr ."1 Daly. Ul)on completion of t!ie President's r.eport, upon motion duly made, seconded and unanimously passed, it 'i7as ~~~~LVE~: TI1at the President's Report be accepted as read. TLE r~ElWERSHIP COUNITTE.S REPORT itr. Frank T. Gatke reported on the activities of the Membership Committee durin~::- the 1972-73 fiscal year. See EXHIBIT 2. In summary, !!r. Gatke' s Report shot-red the follo~ling chanr;es in membership in the Institute: July la 1~72 Active ~1embers Regional :!embers Licensees 25 10 8 June 30 2 1973 23 11 8 i...ohange (2) 1 In this ~eport it was indicated that we lost Silver Line Products, Inc. and the Johns-iianville Corporation. l\oth firms are no longer in the brake lining and clutch facinr, business, although a suggestion was made that Johns-Uanville could, if they vJished, continue their !1embership since they are in production of friction materials for railroads. At the conclusion of the Report, the Secretary advised that Auto Specialties Co. of St. Joseph, 1i1chigan ~.,as also terminating its membership. Auto Specialties was retrenching in the automotive disc brake market and sent a letter of resignation immediately prior to our Annual Heeting. This llill chan[e our Active dembers dm-m to 22 as of June 30, 1973. A basic item for consideration is the status of Cantex Corporation. Cantex Corporation is the successor to Scandura, Inc. who pulled out of the !Iembership on December 31, 1972, at which time Cantex Corporation picked up the dues for the remainder of the year. Cantex rip,ht now purchases blocks from one of the ~iembers. However, it is attempting to develop a position in the disc brake lining field. Currently, their linings for this field are coming from !Iintex Ltd., Great Britain. To give an idea of the structure of Cantex Corporation and its relationship to Scandura, Mintex Federal Ltd. of Canada, and Mintex Ltd. of Great Britain, the following organization chart is shown: FMSI 00017 ::inutes of ::eetino of the Board of ~;irectors -3- June 26, 1973 D0A Group (--- --; SC;."..:.~DUFA, INC. (iJorth Carolina) ?11~/i.'EX LTD. ,_ (Great '3ri tain) - - - - - - - - - ---------Ii HH1TEX FEm.:ML LTD. - - - - --- -~ .. I 1 CANTEX CORP. {t::anada) I (~ew York) In discussion, it WlS pointed out that as of this time, I!intex Federal Ltd. of Canada is not manufacturing friction materials. The disc bral..:e ~.1aterials they are merchandising are from the British parent. Cant~x Corpcration is, at this tiMe, nothing more than a warehousing set-up. The Secretary indicated in conversation with Cantex personnel that it ~as their intention to be manufacturing in Canada shortly. A su~t;estion \o7as ruade that if Cantex cannot he an Active Uember ~1ecause it is not manufacturing in the United States, that perhaps Mintex could take on a Regional 'Iembership with U.S. copyright privtleges in the same fashion as Rusco de Colombia has. In this case, Rusco de Colombia pays the same dues as an Active ~!ember \o!ith the categories determined by the nul!'.ber of cater_ories the Regional llember is exporting to the United States using the FHSI numbering system. At this point, a question uas raised as to what services Regional Nembers Here entitled to. The Secretary replied that Rep;ional Hembers can order all br&~e lining, clutch facine and shoe prints in the same fashion that Active Uembers can. A. member pointed out that this was somewhat unfair to the American r:ernbers ln that European manufacturers do not send prints to any Foreign riembers. It toJ'as suggested that perhaps conditions have changed and the Institute is giving away too much infornation. A suggestion was made that a Study Committee be appointed to review our Constitution and By-Laws to see that they are brought into tun'! with the times. Originally, the t!.er,ional l!embers tTere groping for existence, and did not have the technical where~Tithal to pose much of a problem. At ~"lis time, some Regional Eembers have the capabilities to make a quality proauct and they are attempting to compete in the r: .S. market, based on information provided by the Institute. Except for the one firm which n~N pays equivalent dues of an Active Nember {Rusco De Colombia), all Foreign }lembers pay considerably less dues than a u.s. !!ember. It was sugeested that if a Study Committee was se~ up to review the Constitution and By-LmJs that they should also reviet1 the Institute's method of permittinz copyright privilee;es, the Institute's relationship with European organizations, improved enforcement of the copyright, and suggestions on tihat the Hembers can do to assist in this enforcement. Upon motion duly made, seconded and unanimously passed, it was FMSI 00018 -anutes of lieetie1~ of the joard of Directors -4- June 26, 1973 f.ES0LVED~ That the Institute \Joule appoint a Study Committee to r:vie\v the .:.:onstitution and By-Lmvs and make recommendations for chanres therein. 'Jiscussion returned to the subject of Cantex Corporation. It "'as <.lecided that Hithout a change in the Constitution and Tiy-Lm.1s at th~s time that Cantex Corporation does not meet the elip;ibility requirements of the Constitution and Fy-I.aws. In other uords, Centex is not nm.r a manufacturer of brake lini:tgs ar.d clutch facings and th~refore cannot belong 1:0 the Institute. l!oon l'OOticn duly made, seconded, and unanimously passed, it Tvas RESOLV;:.D: That t~1e t=:ecretary advise Cantex Corporation tbat due to the manufacturing requirenent in our Constitution they are no longer a Hember of the Friction iiaterials Standards Institute. Upon ootion duly made, seconde1, and unanimously passed, it was RESOLVED: That the Secretary advise Cantex Corporation that their parent company, llintex Ltd. of England (or their sister company, Vdntex Federal Ltd. of Canada, if manufacturing friction materials in commercial quantities) could apply for Regional l1embcrship with United States copyright privileges. ~~ext, the Committee discussed the invitation that had been extended to Cali-Blok for :~ewhership. Based on information that the ~ecretary had received, ~Ir. Chuck 0 1 Neill, at Cali-Dlok, r.ras now manufacturing some of Cali-Blok' s bral:c linin~s. Up until a year or so ago, Cali-Blok ~las :mrchasing their brake lininf requirerr.ents from other Hembers. An invitation was extended to Hr. !'Neill concerning ttemlJership in the Institute on ~arch 30, 1973. After this invitation was extended, Nr. O' ~leill called the Secretary indicatine he \'las only manufacturing a relatively small percentap,e of his brake linings. At that time, the Secretary advised Hr. O'Neill that this subject would be discussed at the June Board l:eeting. The Secretary was directed by the Board to contact ~:r. J'Neill again recommending that he apply for Active T~embership in the Institute. The Secretary had earlier contacted Scan-Pac, lvho had purchased Johns-Hanville brake lining :-md clutch facin!'; machinery, and Hho had indicated that they Hould soon be in production. The Secretary t'118S directed to follow up with Scan-Pac as concerns their Uembership. Upon motion duly made, seconded and unanimously passed, it 1-1as FMSI 00019 !1fnutes of ; ;eetinr; of the Board of Directors -5- RES'.'LVI:D: 111at the !'.e')ort of the Hernbership Comr.~itte.e 'Je a.ccepted. In accordance with our Constitution and By-Laws, :tr. J. ~!. Greenen, i'r~sident, assumed the responsibilities of Treasurer upon t!1e diaatdlity of Lr. _A.l1an Daly, Treasurer. '1:1e Secretary read the Treasurer's :'lepcrt. ~.'he follmdnt; Exhibits make up the Treasurer's !'.eport! EXHIBIT 3.1- ~alance Sheet projected to June 30, 1973 r::;cnrr 3. 2 - Income Statement for the 19 72-73 fiscal year. ,':){11Il3IT 3. 3 - Retirement Fund - H. G. Duschek ~:::II.l.liT 3. 4 - Tt-telve Year Financial :~ighli::;hts It should be emphasized that t!.>e Treasurer's Ii.eport l-ras made up durinr. the first week of June 1973 and that final June 30, 1973 figures had to be estimated based on the anticipated June 1973 expenses and the fiscal year-end accruals. In surnJ!'I..ary, the Financial Statemer.ts showed more than $100,000 in Savings Accounts and 'i;;:z ;)eposits, and over $20,000 in Hiss Duschek's t'ension Fund. The Institute operated over the 19 72-73 fiscal year ~oJith a Net Income in excess of $18,000. At this point, a question was raised concerning the Capital and Surplus figure which sncns approximately $120,000. !'., Soard J:~ember questioned Leeal r:ounsel as regards how large a surplus the Institute could reach .;lithout endangerin8 its non-t.axab~e position. Counsel indicated th~t the Capital and Surplus figure could be up to 2-3 tim~.; the overall !.nnm~l Budget before there would be any difficulty. As last year's Annual i!udget ran about $74,000 and we project a Capital and :-:urplus of approximately $1L0,010 our ratio is not yet two times the Annual Budget. The Board !~emoers then rev.i.~1ed the 12 year Summary of Financial Highlights and noted particularly that an Active l!eMber in 1961-62, ~-lith one co.te~or:.-1, h<:1d an anttual fee of $800. In the same year, a Regional l:!.ember paid a total of $1,000. Ry 1972-73, an l.ctive Member wit!-1 one category l-Ias paying $1,700 in annual dues, ~1hereas a Regional Vember was paying $1,300. In other ~-1ords, the Active i'1ember t-:as paying in excess of 100% more in 1972-73 tha~ he was payin~ in 1961-62. 'fhe Regional Hember had been :l.ncreased only 30% from $1,000 to $1,300 during the same period of time. Hhi1e the Regional }~embers had a relatively modest increase 1.!1 dues, t~1e Licensee dues had increased 60% from $300 to $500. The Committee that is appointed to study our Constitution and :3y-L~!S will also be instructed to look at the fee structure to see that it is equitable. Jased on the excess of Income over Expenses for the 1972-73 fiscal year, and in oruer to give the Hembers bette-r service, and reduce the Institute's billing costs, the President suggested that all prints be FMSI 00020 Hinuten of !!eating of the Board of ,)irectors <)- Jl.'!le 26, l:Ji 3 :Jrovided to each t_ctive :-.etnber autOt'latically with the introduction of each n~, ~ulletin. I'urt11er, it t-.r~s suggested that prints be provided only in the category nhich t 1e mem1Jer is paying d;.~.es on. l'he Secretary \vas directed to proviC.e pr~_nts of ne":T rE=leases to the ''ctive Nembers on a 1lo-Char~e basis for the cat2soriE2s >Jhich the :re~bers report. Upon motion duly made, seconded, and unanimously passed, it was ;:,~sr~LVED: To accept the Trec::;urer's Report as read. LlVE::JTM::JlT ADVISORY COHMITTEE .~r. r- Sitr.on, Chairman of the Investment .\.dvisory Committee, submitted his P.eport. See EXF.IJHT 4. In essence, -.:he Chait'n'.an pointed out that we have transferred a considerable amount of our money that uas deposited at 5% in Savings Banks to fit1.e Deposits which earn 6%. He pointed out that as of ~.lay 31, 1973 over $65,000 ~1as invested in Time Deposits. Upon motion duly made, seconded, and unanimously passed, it ~1as RES;)LVED: To accept the Report of the Investrr.ent Advisory Conmdttee as read. ~LDGET C0!-.1--.il'.i'TEE REPORT ~rr. Carl Heber, Chairman of che ~;1dget Committee, presented the Proposed .:iudg~t for 1973-74. See EXlUiHT 5. In sun~ary, the Proposed Budget for 1973-74 calls for total expens~s of $74,130 vs. the ~udgeted figure for 1972-73 of $73,795. This is an increase amour<:ing to less than 1%. The major item -:n the Bu.dget is Salaries. TTe ~7ere l-Tell under Budget in 1972-73, and this figure represents a !:light cecreaf;e under the 1972-73 budgeted figure. There is nothing 2lse that is a signific&Edeparture frow the prior year's 3t:dget except that there i.s R PencUng Project Category for $3.500. 'J.1lis figure is for a Pension and InEmrance Progre.':l r.-1h~.ch it is planned will start early in the 1973-74 fiscal year. Upon motion duly made, seconded and unanimously passed, it .-ras RESOLVED: To accept the nuuget Committee .1eport as read. i!r. J. F. Greenen, ::'resident, read this l~eport in the auscnce of the Chairman, ~Ir. Andre Laus, ee EX:.TIBIT 6. Essentially, the Fee Formula Committee is recommendin~ that the formula for the 1973-74 fiscal year be the same as that ueed for the 1972-73 fiscal year. This fee formula gives the fol1~1ing: FMSI 00021 ::inutes of tieetin!': of the Doard of Jirecto~s -7- June 26, 1973 Active Hembers - Bacic Fee Cate~ory Fee $1,050 650 Il.egional ::!embers - i\snociations 2,200 Individual Firms 1, 300 I~e~ional ~!.em!.>ers {U.S. Copyrigh)- Same as Active llef!lber Catesories detenni.ned as cate~ories e~-ported to U.S. using FTISI copyri~ht Li.censees 500 In ilr. Laus' Tteport, he mentioned the fact that the fees for /.ctive l.letr.bers have increased over the last ten years at a significantly greater rate than the fees for Regional Ilembers. The Committee that WdS formed to review our Constitution and Jy-L&TS will be given the assignment of revi~ring the fee structure. f. Joard Nember recommended that the Secretary review the Declaration of Categories to check for its reason- ableness~ Upon motion duly made, seconded, and unani~ously passed, it t~as I:.ESOLVE:J: That t~te Institute Secretary audit the Catep.ory Declarations filed by the !.ctive Hembers. Upon motion duly made, seconded and unanimously passed, it was RESOLVED: That the P~port of the Pee Formula Committee be accepted as read. LEGISLATIVE ACTIVITY Cm.llliTTEE REPORT The Secretary advised that no Report had been received from !Ir. Norman Conuns, cr1airman of the Le~islative Activity Committee. At the Annual ~'iernbership tteeting on June 27, Hr. Comins did file a ~.eport ~hich, in essence, stateci that there tlas not any activity noted as regards legislation by the various states during the 1972-73 fiscal year. See EXHIBIT 7. PUBLIC RELATIONS COi:1lUTTEC m::ror.T r:r. Hilliam Simon, Chairman of the Public Relations Colllll'ittee, reported on the highlights of his Committee's activities for the 1972-73 fiscal year. Some of the items released to the newspapers were the announcements on last year's Annual Heeting and the Election of Officers, pictures of our new offices in Paramus, and the Board of Directors Dinner honoring Hr. ~lcGovern. Sec hlOUBIT 8. Upon motion duly made, seconded and unanimously passed, it nas lillSvLvriD: To accept the Report of the Public Relations Committee as read. FMSI 00022 :tlnutes of :rectin"'. of the Board of :...:!.rectors :eetin>; -.". nr. J. ~-!. Kelly, Chairman of the Institute Development Committee submitted a Report which ~-JdS reBd to the Board of Directors by the Secretary. SeP. l.XHIBIT ; Iir. t~elly hip)11ighted the year 1 s activities with information on the Co:cmittee' a r-ecommendations on brake parts manufacturers, the Dinner tor ~1r ...cGovern, publication of the F!fSI HE\<TS. A.nd pubUcati0n cf che AUTO~ivTIVE BRAKE JJIAGlT)ST!CS Catalog. Upon notion duly made, seconded and unanimously passed, it was RE~JLVED: '.Lhat the Report of the Institute ')evelopment Cor,n:~ittee be accepted <l3 re:ad. TirE liiS1'ITUTE :IIS'fORICAL S!.LES PiWGlW1 The Presiclent felt it appropriate th;-.t a revia-1 be made of our Historical Sales Program. The :!.eport shm-1ed that 15 members reported for the six Honths ended June 30, 1972 and that 16 members reported for the 12 months ended December 31, 1972. Actually, this last figure is an improvement of 2, as we lost Jol~ns-Uruwtlle for t!"lis last r-.eport. The Directors wish to encourage participation br the l!embership. :":ee EXHIBIT 10. "- Board !':'.ember askc.! ul1ct~.er tl1~re could be a breakdown of tJho reported in each category. Legal Counsel advised !:hat it is essential that t7E" maintain the confidentiality of the P.eport. 1c Board ~{ercber sur3a.ested that ~~e nust ~qsume that any company reportinr, will report in all t~e categories in uhich he is involved. It ~!as stated ~hat it uould be best to not alter tnis ~~istorical Sales Propram in any fashion as the last set of results for the 12 months ended December 31, 1972 looked more realistic than any data reported earlier. upon motion duly made, seconded and unanimously passed, it was ':~:'_'iLVED: That the Historical Sales Program ~-1ould be continued for the 1973-74 fiscal year ~rith no chanees from the program used in the previous year. In :Jctoher 1972 the l_:oard of Directors resolved that the Constitution and By-La~iS Hould not be changed to accept brake parts manufacturers ir.to the Institute. In January 1973 :cssrs. ifelson and Cutler, of Abex Corporation, raised questions as re~ards the Institute's cooperatinp, with X~l~ in their Ilis torical ::>ales l'rosre.m. '3ee hlUiiBIT 11. , .boarcl :ferrbcr stated that t:1e ?istorical Sales I'rof!ram has been goinP; on t-'ithin HE;IA since 1971. \ny :.:En.\ r;e:!1ber can participate in the Historical Sales Program. 111e :1Ei:IA acts as a Secretary or nome Office for the Lral~e Parts "lanufacturers Council. In other t-tords, one does not have FMSI 00023 !~inutes of :eetiyl~ of the Leard of 1irectorE -9- Jt.:ne 26. D7 3 to be n ::-ember of :U::IA to be. in t::1e :.;rate I'a;:-ts ~~2.:-..t~r dcture:.s Council. - quc:stion 'lon:: r~'~c:.ed <'P t<J 'i!heth_r the. BrB1'2 ?a.-:.:s (q:-,Jtacturers C:mncil and the :astorical Sales Prorra:rr r:i,.~.t c~:lV~ n ..,:~lintt:rin,~ I effect on the friction ~lat~ria~s Standards L<st.itute. It w.:o.s sugr:ested that with these services available, a01d s:!.nc?. they supplencnt .some of the data .,,e ?rovide, per'aps '7e sl1ould ccoperat(' Hith the : ;:~:_\_, 'i"!te Tioard felt it ms not nece5sary to pa:n any -,,_esolution concernin;--; the i~ydraulic ~\rai.e Parts Section as that was Jon~ tn Gctober of 172. Tlouever, t~tr. Board .ier'!bers expressed their v;illingness to cooperate uith any ot~.er trade association ~here there might be nutual benefits ,eriverl fro~' such cooperation. DATA BOO~-: ,r, '.LZCl:i:-;lCl-L co;:nT'i'EE ~PORT :~r. Ron i!oalli, Chnirroan of the Data Book C. Technical Committee reported on his Co~mittee's nctivities durins the past year. Sec EXTIIBIT 12 .'.1.1on~ the lli!"'~li:;hts he dj scussed uerc the ConsoJ.idation Profram, the consideratior. of a Disc Lrake Lining and Shoe Assembly Catalog, adr,itional for~isn car cov~rage in our Bral<".e Shoe Identification Catalof;, shoe assi~-:'!n,ents for shoes taking the 4, 000 ~eries Blocks, changes in drillinr pntt,,rr~s for disc brake shoes .:~ad !"! common numoerin3 system for brake lining in Europe. t.s regards the Euro!'ean nutl'beri:lg system, ~\r. ':!oalli pointed out hetv diverse they are. For example, the German systeF. uses 13 digits. TI1e I-ritish systel!' uses an alfJhabetical code to identify the veh1.cle on t-lldch the lininr, is installed. (In other uords, if the same lining '-laS installed on a Ford and a Volvo, two different number assienments 10uld be us~d.) '\s re:::;ards the European llumbering System, l!r. Steve Co<T<~ay had asked for some assistance or sllgf::estions co..-,cerning recommendations for a con~on numberinG system acceptable to the entire European market. The hasic ansner to I~r. Conway's request !l'.ust be that we would be happy to assipn ! :~n NuMbers as He currently do for foreign cars to the various European lininBs. :rowever, t-Ie lvould need prints a:r1d the cooperat:i on of the European organizations to do this. It TYas suggested that the European manufacturers file with the Institute data on the vehicle applications and the nrints for ~1hich they JOuld like assiP-Oments. Even thou[~.l some of the data mir;ht not appear ir, our Data Book or Shoe Cataloss, the numbers themselves could still be a'3si~ned. Hhether there uould be additional cost involved in doin~ this work cannot be ,~etermned until the number of parts is known. The Chairman su:;.:~ested that .!r. Cotmay be notified of this decision. A question arose as to how soon the r.:etric system 1ill have effect on our Catalors, Lulletins, and other technical information. It was stated that since a considerable amount of our Jata is now in decimal form, the conversion to the mt!tric system will be quite simple. Convers:l on uill not be made, hot-1ever, until there is a greater acceptance of the Metric system in the Unit~d States. In the presentation in ~'r. i1oalli 's I'.eport, the difficulty 1ili th dine brake nuiPber assignments with changed drilling patterns Has discussed. FMSI 00024 ..inutes of .eetinP. of the .3oard of ;)!rectors ~L. -1()- June 2G, l'i73 For example, a brake lin).n.3 r.ar.ufacturer mi~r:t orde"~:" t'-;e D36 Shoe (the Pinto Disc r.rake Shoe) Nhic!t e;:rlier had 5 h0les and nOY7 has 6 :101es, n.thout additional iaforrnation, the shoe SU)lplier r:ight provide the t;rone drilling. T:lfs problem ~7as faced years ar:o on the drum brake s!1oes Hhen it tvas cleciJed that the clrillin.- pR.ttern on the rim 'lotdd not chanse the s~1oe nuMber. rJ.O\'Tever, there have been so many difficulties d.th these revised drill patterns on disc brake shoes that perhaps a ne'.J policy is called for. rr. ~ :oalli indicated that this Hould be studied at the next :,ata Soak & Technical Committee ;!eeting. i!r. :Ioalli read from a neilspaper article some statistics on the numbers of imported cars in the United States. The drift of the article was tbat th.are aie quite a feH forei~n cars in our market and that the Institute had best start covering these cnrs. de indicated that ~!ith the additional covera~e nm.< bei!lp.; shown in the ;:;rake Shoe Identification Cataloe ;-e arc tnkinr:; stens in this direction. Upon ::1otion duly It'.adc, seconded and unanimously passed, it ~vas ~ESCLVE::J~ 1'o accept the Keport of the Data 3ook & 'fechnical CcJn-nittee as read. ---B;-.~.r...;.~E PEI'..FOI'J d\HCI: ~TUDY C0t~-1.ITTEE - llEPORT Fr. l.lc':i .ielson, Chai rr.an of the P:rake i.'erforr.1ance Study Conmrl ttee, tevorteu on the activities of his Cot'!'mittee for the 1:'72-73 L!qcal year. :..ee EXtH3I'l' 13. ~Tr :elson's !~;eport r.overed the activities of the Committee in chron0logical sequence. Among the highlights of the year':> activities ,.,~re the .~~NA Certification Program, establishment of a Quality Control ~ub cornmittee, publication of :\UTOMOTIVE BRA1CE DIAGHOSTICS, discussions on Fi.iVSC 121 (1-.ir 3rake Systems), discussions on Ft1VS3 lQSa (Hydraulic Er~lte Systet!lS), Senator Hart's "Luto Repair Quality Act," and of particular concern to the industry, the trork being done on Docket 1-4, Bral~e Shoe and Pad Assemblies. In addition to these ite111.s, Nr. Nelson reported on a meetinf held with lir. rlarry Brainerd of the Vehicle quipment Safety Commission (VF.SC) in ~ashineton on April 12, 1973. Hr. Drislane and r:r.. ::;elson met ~1ith ~1r. Brainerd i.Jased on his phone call of :1arch 22. The eist of the meeting was that there had been new Officers elected to VESC .?.nd they are concerned t:1at VESC is not getting any revenue from their regulations used for certification tests. i~r. :.;rainerd t-7anted to advise FUSI as to what Pas takinp, place and ask our cooperation. \~hile the Chairman did not close the door on di~cussing the matter further, he made no commitments until more details were availa!>le. IIis concern was the fact that industry mipht a~ain get squeezed be~veen ~~o orgm1izations in their attempts to raise money. VESC is thinking about three possible a~proaches - instituting their own approval pror.ram, attempting to split tl.e fee ~Tit:-t l\Al1VA, or. going their mm way as they see fit. A very vague program somewhat like the Good Housekeeping Seal of Approval was FMSI 00025 !Iinutes of ;-icetinr; of the Board of: Jirectors -11- June 26, 1)73 also discussed but again no cor.mcnt 'Ja::J l!H:>.rie until mer~ detaila uere available. i!r, Brainerd was Mad::! m-rare that the '!.ndustq nas still v':Jry tender from the AANVA .rogran and understandably not very receptive to another Certification Program ~Jith ad(.hc1. expenses. l~r. iielson felt this v:..:sc infornation was somewhat tender anu should not be Hidely distributed. de indicaterl that the Comoittee ':lOuld keep in touch '-lith v~sc should anything develop. 'l'he Board of )!rectors was particularly interested in L'::>c\et 1-4. This ilas also been called the Replacement Bral:e Lining Standan! alt!1C'mgh it enconpasses lining-shoe assemblies. :3ased on information l1r. Helson had received from r:r. Preston and from ~ir. Forthofer, of Safety Systems Laboratory of i:~cTSA, that the Replacement Brake Lining Standard would apply to vehicles manufactured after September 1, 1975. l~e requirements \-Iould be paterned after F?WSS 105a. .':..t the current time, it uould appear that Docket 1-4 is headed towards a single-ended Inertia !)ynamoL'!Cter. There is a considerable amount of objection in the industry to the Inertia Dyn.:tmometer as a means of doing this test work. Several :tem'Uers feel the procedure should be on a friction test machine or on the vehicle its~df. Considerable concern t?as expressed on the lack of availability of the Inertia Jynamometers ~1ithin the industry. Mr. Nelson assured the Board of Directors that the Committee \V"ould keep close l7atch and close contact with ;Jashington concerning Iocket 1-4. lie also ~~ntioned a planned visit to brake lining manufacturers and distributors \V'ith Department of Transportation Personnel in t uguGt. Upoi.'l motion duly made, seconded, and unanimously passed, it was RESC:.V~D: To accept the P.eport of the Brake Performance Study Committee as read. TliE ASBESTOS STUDY COI-llUTI~_!!: REPORT ~lr. I. -~ Heaver, Chairman of the Asbestos Study Co!'lmittee, had subMitted a Report covering the year's activities, but the Report uas not available for distribution at the Board I::eetinp,. See EXIIIBIT 14. Hr. Drislane outlined sone of the hir,h spots of the Asbestos Study Committee work. Among the items discussed were the OSHA labeling reCJ.Uirernents, the ZPA <isbestos Enissions Standards, and a proposed seminar on manufacturing operations and the regulatory authorities. Er. rJrislane advised that i.Ir. ';Teaver \-7ould. distribute copies of his ~eT)ort at the r.feiT'hership :ueeting. However, he did not use these as the text for his talk to the l!embership. Instead 'Hr. Heaver planned to give some background data concerning the OSHA and EPA regulations and their effects on the friction tTlaterials industry. l 1r. Drislane's summary of iir. Heaver's l~eport covered most of the l.izh points of the yenr' s activities. Upon motion duly made, second~J and unanimously passed, it was rJ::Sf)LVEl!: To accept the Report of the Asbestos Study Committee as read. FMSI 00026 :'linutes of l!eeti.n~ of the Board of Directors -12- ..Iune 2G, 1973 :ir. Fran ilessicr. Chairman of t:he An::ual ~~eeting Cot:llllittee, delivered his '.i.eport concerning the Corr.mittees recommendations for t~e Aunual lice ting. See i~~\i.II:HT 15. In summary, the Committee 1 s recotlll!'endati:ms ~1ere that th:2 :letl'bership return to Vail, Colorado in 1~74. The1:e ~Jere so;:-:e criticis!!'s of this recoT!llllendation by ~fembers of the Board of Lirectors. .A. specific complaint - simlar to the Lake Ozark ~!eetin3 uas that the meetin~ location is too far from the airports. This particular Joard dember suggested that the Committee attempt to find locations ~ith better access than Vail, Colorado. Another Board EeTIIber expressed t~e criticism that as in the past several years, good access to the ~olf course has not been available. A golf course on the property or ver;.1 close thereto should be a specific requirement for any location foL the Annual r:eetin~. Additional discussion took place CC"ncernin?, the time for the meeting. :.rticle VII of our Constitution states that the L'"lnual ~'eeting shall be held each year on the third \..Tednesday of June. Titis requirer.~en.t has not been met for many years and is another item in the Constitution and .oy-Laws that should be revised. However, to be more ?ractical, the Institute does not 'N'ish to conflict with Fleet ~~cek which this year 'i1as held during the third week in June. This T;as the ,;eel: l-thich the iil-:titute had originally planned to hold its meeting. The Institute's meeting 'i7as novecl !Jack ~:o the fourth week in June because of L:he conflict. i.lr. ~Jelson advises that Fleet \<7eek lJill be held during the third lYeek in June 1974. This appa1:'ently is to be an annual affair and will be ir. continued ~onflict tTith our Meet:!.ng. Host Eembers of i:hc Board rccm!Jfi\cnd that due to this conflict our :i1eeting be held after Fleet Heek rather than before. A Board !!ember questioned whether the decision to go back to Vail uas final. He '1as advised that this decision ~rould be made by the l~etilberehip at the Thuraday, June 23 Heeting. Upon motion duly made, seconded, and unanimously passed, it was llliSOLVED: To accept the ?-eport of the Annual Heeting Committee as read. THE IHSTITUTE COPYRIGHT 'J.he Secretary brought to the attention of the BoArd the fact that many copyrights, some of ~~hich are dated back to December 1971, :1ad not been received by the Institute Office. The Secretary suggested that he uas not receivin~ satisfactory service as concerns the issuance of copyrights. Counsel indicated that the slow delivery o~as due to problef:'I.S at the Copyrieht Office. The Secretary, in turn, sugzested that some of the copyrights he has not received precede some of those 11hich he has received. There were 12 Bulletins uhich had not been copyrighted as of June 18, 1973. In addition, there uere three Catalogs ~-rhich had FMSI 00027 ~linutes of ~:ee tint; of the Board of ~irectors -13- June 26, lfJ73 not received the Canadian copyr!gl:t. It was suggested that Counsel r.take a copy of every copyri~ht application sent to r.rashington so that the Institute Office would \..;e able to check this off Jn their records. Counsel stated that this rmuld ~e practical and he would provide the Office t...rith a copy of every copyri;)1t application. CAPITAL EXPENDITur-ES The rrcsitient presented to the Board sus?,estions for capital expenditures for the 1973-7lf fiscal year as suggested to him by the Secretary. One item liJas for $1,50') for a t.ret copying machine ~-rith a roll-type feed to replace the sheet-type feed we now have. The problem is that the old copier continually jams up and the service has been unsatisfactory. For this reason, t:1e machine sits idle for many days before it L.3 serviced. In addition, an expenditure in the neighborhood of $800 was recommended for a conference table to replace that nm..r in the Institute Office. The surface of the conference table now in the Institute Office is actually a 7' x 3' solid door which accommodates 6 people at a meeting. In order to make better use of the office in accommodating 10 people at a meeting, a ne<7 conference table has been recommended. Upon motion duly made, seconded and unanimously passed, it was Il.ESOLVED: That the Institute has authority to spend the necessary funds to purchase a ne..r copying machine and a ne>r conference table. PEilSION ?J.OGIW1 The 5oard of Directors reviewed the summary type Pension Plan dratYn up jy Connecticut General Life Insurance. It was stated that the Board liJould proceed with a Pension Plan but that before it does, Counsel ~:muld check into the lm,rs of l-iew Jersey to determine if Mr. Drislane can he 'i'rustee of the Auxiliary Fund. Counsel ~.rill also check any possible tax effects of such a Pension :'rogram. Counsel tdll report back to the iloard of Directors at ~-1hich time the :Goard will take the appropriate action as regards a Pension Plan. ***** There being no further business brought to the attention of the Board of Directors, upon motion duly made, seconded and unanimously passed, it was RESOLVED: To adjourn. Adjourned at 3:15 P.H. E. ~i. Drislane Secretary FMSI 00028 FRICT!Ut~ dAJ.'I:.iUALS :.>TtUDA._~DS I!!STITUT:::, E:C., E. 210 ~GUTE 4, J:'tJ:N!l'S, lLJ. 07652 l~I.lUTJ:S r;r n:I..TLG of tt:e l3G:'Jt'1 'JF DIIU.:CT'X'S J.Tednesday, June 27, 1973 at 11:10 A.H. at Lodge at Vail, Vail, r:olorado - - -P~ESE.;Tf i'. L. Messier , . :.;iro.on :... R. Zacharias F. 'i.'. Gatke J. 1 ' Greenen J. ;:,; GOI:1 R. Cutler .:.. 17. Drislane, Secretary L. D. Stickles, Counsel Bendix Corporation, Friction Haterials Division nrassbestos llanufacturing Corporation Carlisle Corporation, Molded Naterials Division Gatke Corporation t1arel'lont Corporation Grizzly Brake Division Raybestos-~!anhattan, Inc. Abex Corporation, American Brruteblok Division Stickles, o:cnnedy & Van Steenburgh l1r. Greenen opened the meeting at 11:10 .\.11. ELI:;CT!Oli OF nFFICT:':I'.S 2lr. Greenen called for nominations for the office of President. tlr. Frank T. Gatke' s name was presented and seconded for the office of President. Upon motion duly made, seconded and unanimously passed, it was RES0LVtD: That the nominations for the office of President be closed. \!hereupon the Secretary t-7as instructed to cast one ballot for the election of dr. Gatke as President. The Secretary advised that the ballot had been cast. Hr. Gatke assumed the Chairmanship and called for nominations for the office of Vice President. :Ir. ~Jilliam Simon t-7as nominated and seconded for the office of Vice President. Upon motion duly made, seconded and unanimously passed, it was RESILVED: That the nominations for the office of Vice President be closed. ~fuereupon the Secretary was directed to cast one ballot for the election of llr. Simon as Vice President. The Secretary advised that the ballot had been cast. For the office of Treasurer, the name of t1r. Andre A. Laus of tfaremont Corporation t<~as nominated and seconded. FMSI 00029 Ydnutes of the Board of Directo'"s lieeting -2- June 2 7, 19 7 3 Upon motion duly made, seconded and unanioously passed, it was RESOLVi!:D: 'That the norninationsfor the office of Treasurer be closed. tlhereupon the Secretary was directed to cast one ballot for the election of ar. Laus as treasurer. TI1e Secretary advised that he had cast such ballot. For the office of Secretary, Hr. Edward P. Drislane '"as nominated and seconded. Upon motion duly made, seconded and unanimously passed, it \-Tas 4ESOLV~: That the nominationsfor the office of Secretary be closed. Phereupon the Secretary was instructed to cast one ballot for the election of I~r. EdHard 1-l. Dris lane as Secretary. The Secretary advised that the ballot had been cast. RETENTION OF COUNSEL The Chairman advised that according to Article VI of the By-Lm~s, at each annual meeting legal counsel shall be retained for the ensuing year. Upon motion duly made, seconded and unanimously passed, it was PJ.::SOLVED: That Mr. Lester D. Stickles of Stickles, Kennedy & Van Steenburgh, Attorneys, be retained as Counsel for the ensuing year. RETENTION OF AUDITORS The Chairman, on recommendation of the Secretary, suggested the retention of auditors for the ensuing year. Upon motion duly made, seconded and unanimously passed, it was RESOLVED: That Harshall Granger & Co., Certified Public Accountants, be retained as auditors for the ensuing year. BUDGET - JULY 1, 1973 THROUGH Jill~E 30, 1974 'i'he Chairman advised the meeting that the budget, as presented to the Annual lieeting, had been adopted by the Membership. upon motion duly made, seconded and unanimously passed, it was RLSOLVED: That the budget of $74,130 for the fiscal year starting July 1, 1973 be accepted. FEE FORiruLA - JULY 1, 1973 to JUNE 30 , 19 14 The meeting was advised that the outgoing Doard had considered the fee formula proposed for the fiscal year starting July 1, 1973 and recommended its acceptance. Upon motion duly made, seconded and unanimously passed, it was FMSI 00030 Minutes of the Board of Di'iectors rteeting -3- June 2 7, 19 73 RESOLVED: To accept the recommendation of the outgoing Board that the annual rate for the Active tie;.1bers for the fiscal year starting July 1, 1973 0e a basic rate of $1,050 and $650 for each category in <v-hich engaged; for the individual Regional ~!ember $1,300; for trade groups holding Regional rtembership $2,200 and Licensees ~500. STUDY COMMITTEE - CONSTITUTION AND BY-LA~-lS lbe Chairman recommended that a Study Committee be appointed to review provisions of the Constitution as regards rirhts of the different membership classes, the fee structure, copyright authorization, and the like. Upon notion duly made, seconded and unanimously passed, it was RESOLVED: That the necessary committees be authorized to review the Constitution and By-Laws as regards the rights of the different membership classes, the fee structure, copyright authorization, and similar problems HONOR ALLNi E. DALY - TREASURER 1970-73 The Chairman recommended that the Institute indicate their appreciation to Hr. Allan E. Daly for his contri:,utions to the Institute. Upon motion duly made, seconded and unanimously passed, it ~1as RESOLVED~ That t!r. Allan E. Daly be honored for his contributions to the Institute by the award of an appropriate plaque. fUiTIFICATION OF ACTS OF 0FFICERS, COMMITTEES, ETC. The Chairman advised that he would entertain a motion to approve the actions of the staff, the Committees and the 0fficers for the year 1972-73. Upon motion duly made, seconded and unanimously passed, it was RESOLVED: To approve all actions of the Committees, of the Staff and of the Officers for the fiscal year ending June 30, 1973. DATI:: AND LOCATiotl OF l:EXT BOA.tU> MEETING Tne Lirectors felt that the next meetins will probably be held in June 1974, but did not set a definite date should there be reason to call an earlier meeting. **** l!o further business l1as brought to the attention of the meeting. made, seconded and unanimously passed, it was Upon motion duly P.ESOLVED: To adjourn. Adjourned at 11:20 A.V. E. H. Drislane Secretary FMSI 00031 FRICTION MATERIALS ST~NDARDS INSTITUTE, INC., E.210 ROUTE 4, p,~RAMUS, N.J.07652 Ml NUTES OF ANNU~L MEETING of the FRICTION MATERIALS ST:\NDARDS INSTITUTE. INC. '/wednesday and Thursday, June 28 and 29, 1972, 8:30 A.M. at Lodge of the Four Seasons, Lake Ozark, Missouri MEMBERS PRESENT REPRESENT AT t VES 1\bex Corporation Auto Friction Corporation Bendix Corporation Friction Materials Division Brassbestos Manufacturing Corporation Carlisle Corporation Molded Materials Division Gatke Corporation General Motors Corporation Delco-Moraine Division Johns-~~nville Corporation Lasco Brake Products Corporation, Ltd. ~aremont Corporation Grizzly Brake Division Molded Industrial Friction Corporation H.K. Porter Company, Inc. Thermoid Division Raybestos-Manhattan, Inc. Reddaway Manufacturing Company, Inc. Royal Industries Brake Products Scandura, Inc. Standee, Inc. S.K. Wellman Corp. Nheeling Brake Block Manufacturing Company World Bestos Company, Division of the Firestone Tire & Rubber Company R. Cutler S.\. Comins F.E. Messier lv. Simon E.R. Zacharias F.T. Gatke R.J. Kick T.P. O'Hagan W. Laher J.W. Greenan M.l. Frazier R. Hein D.E. Gow F.W. Barton, Jr. D. Ogilvie A.E. D"lly J.S. Allen R.C. Brigleb L. Burgess C. Weber OTHERS PRESENT Abex Corporation Auto Friction Corporation Bendix Corporation Automotive Service Division Bendix-Westinghouse Division Friction Materials Division Gatka Corporation General Motors Corporation Delco-Moraine Division R.E. Nelson A. Comins S. Comins J.H. Kelly E. Robers J. Bailey H. Boyle R.E. Kettering FMSI 00032 Minutes of Annual Meeting -2- June 28 -29, 1972 OTHERS PRESENT (Cont 'd) REPRESENTATIVES Johns-Manville Corporation Maremont Corporation Grizzly Brake Division Molded l~dustrial Friction Corporation Raybestos-Manhattan, Inc. Royal Industries Brake Products S.K. Wellman Corporation Wheeling Brake Block Manufacturing Company World Bestos Company, Division of the Firestone Tire & Rubber Company Friction Materials Standards lnstitute,lnc. Stickles, Hayden, Kennedy, Hart & Van Steenburgh C.E. Gi 11 berg D. Carlson D. Robins A. Laus B. Ozmore RR. tv'loa 11 i 'N. Osborn J.E. Clegg G. Stratton R.J. Alleman E.W. Drislane L.D. Stickles NOT PRESENT Chrysler Corporation-Chemical Division Forcee Manufacturing Corporation Silver Line Products, Inc. Thiokol Chemical Corporation Mr. Green~, President, acting as Chairman, called the meeting to order at 8:30 a.m. MINUTES OF PREV IOUS rET ING The minutes of the meeting held June 22 and 23, 1971 had been distributed. No reading was requested nor were any corrections made thereto. Upon motion duly made, seconded and unanimously passed, it was RESOLVED: That the minutes of the meeting held June 22 and 23, 1971 be accepted as distributed. PRES IDENT'S REPORT Mr. J. W. Greenen, President, opened the meeting with a report on the Institute's progress and activities during 1971-72. SeE'! E_)(H_IBJT l for- t.-,_,,l of this report. Briefly, the President covered the high spots of the 1971-72 fiscal year which included the formation of the Asbestos Study Committee, the move to New Jersey, reactivation of the Institute Development Committee, the retirement of Miss Duschek as of August 31, 1971, and other matters. In particular, Mr. Greenen paid tribute to Mr. C. Brown IJhitley, of Scandura, Inc., who passed away during this past fiscal year. A letter was read from Mr. J. L. McGovern, Jr. advising that he was retiring from Raybestos-Manhattan, Inc. and he would therefore be resigning as a Director and Delegate of the Friction Materials Standards Institute, Inc. FMSI 00033 Minutes of Annual Meeting -3- June 28-29, 1972 At the Director's Meeting, a resolution had been passed directing the Institute Development Committee to reco~mend appropriate means of honoring Mr. J. L. McGovern, Jr., to show the Members' appreciation for his years of servite to the Institute. Upon completion of the President's Report, upon motion duly made, seconded and unanimously passed, it was RESOLVED: That the President's Report be accepted as read. TREASURER'S REPORT t'v1r. Daly, Treasurer, advised that copies of the financial statements had been distributed. Included in this distribution were EXHIBIT 2.1 Balance Sheet May 31, 1972 EXHIBIT 2.2 Income Statement (Projected through June J O, 1972) EXHIBIT 2.3 Retirement Fund- H. G. Duschek For the Treasurer's Report, refer to EXHIBIT 2. In summary, the financial statements showed a strong cash position with almost $85,000 in checking accounts, savings accounts, and time deposits. The Operating Statement showed an excess of income over expenses of approximately $3,000, with an additional ~4,500 of interest income, indicating a total excess of income over expenses of approximately $7,500 for the year ending June 30, 1972. In addition, a separate statement was prepared to show the fund balance for the pension fund set up for Miss Duschek. Upon completion of the Treasurer's Report, upon motion duly made, seconded, and unanimously passed, it was RESOLVED: That the Treasurer's Report be accepted as read. ANNUAL MEETING COMMITTEE REPORT Mr. F. E. Messier, Chairman, gave his report concerning the Committee's activities. See EXHIBIT 3 for details of the report. In essence, the Lodge at Vail, V,il, Colorado, was selected for 1974 and possibly for 1973 if the i~mbership did not wish to return to the Lodge of the Four Seasons. The decision would be left to the Membership. Upon motion duly made, seconded and unanimously passed, it was RESOLVED: To accept the report of the Annual Meeting Committee. The members then discussed the choice of sites and upon motion duly made, seconded, and unanimously passed, it was RESOLVED: That the Annual Membership Meeting for 1973 be held at Lodge of V~il, V8il, Colorado, June 18-21, 1973. FMSI 00034 Minutes of Annual Meeting -4- June 28-29, 1972 ASBEST03 STUDY COMMITTEE REPORT Mr. t. H. Weaver, Chairman, prepared a report which was distributed to the Board Members. See EXHIBIT 4. In Mr. Weaver's absence, Mr. Drislane read the report to the Members. This report reviewed the Committee's activities for the year. ~mong items covered were the Illinois Pollution Control Board activities, clinic on the membrane filter method for measuring airborne asbestos, proposed EPA emission standards, and the OSHA Asbestos Dust Regulations. Mr. vveaver's report concluded with some recommendations for Committee activity during the coming year. It was recommended that a new bulletin be issued to advise the Membership on the costs of equipment and on laboratories who might perform work for asbestos dust measurement in line with the new OSHA 3tandards. Upon motion duly made, seconded and unanimously passed, it was RESOLVED: To accept the report of the Asbestos Study Committee. BRAKE PERFORMANCE STUDY COMMITTEE REPORT Mr. R. E. Nelson, Chairman, delivered the report on his Committee's activities. See EXHIBIT 5. Among the items covered were our wcrk on the Pennsylvania thickness inspection, our co~ments on Bureau of Motor Carrier Safety Docket MC-30, suggested revisions to Regulation V-3, the new Ohio brake lining law (using V-3), brake lining quality control, and certification through AAMVA. The most controversial item in the Chairman's Report was the requirement of certification of brake linings through AAMVA. This was a major item in the report the Chairman rendered and essentially it comes down to the follo~ing. North Carolina and Rhode Island now require certification through MMVA. The fee for certification through AAMVA is $250 per lining. It is estimated that the cost of tests including the oh~orvanco of these tests by outside laboratories runs about ~400. Tests would have to be run within one year of the date that a certificntion or~ recertification is required. All linings would have to be recertified every five years. In meetings with the AAMVA they h~d indicated that they would give 3 "gr3ndfather 11 certification to those linings already certified in North c~rolina or New York by July 1, 1972. This would involve a $50 fee for each lining and the test reports used could be the original test reports used for certification in either New York or North Carolina. ,\t the Directors' Meeting the BoJ.rd had resolved to request a wr i Hen propos3l from il,/l..MVA on their certification requirements for linings already certified. The Chairman recommended "lcceptl'lnce of the AAMVA proposal. Members Flsked what AAMVA would do to get all states to accept their certification. MF1SS'1chuseHs, for example, will not 3ccept ,'l..AMVA certification. It WFIS suggested th'3t if the AAMVA could eliminate the state fees for certification, it might truly perform a service. These questions will lie raised with MMVA. FMSI 00035 Minutes of ~nnu~l Meeting -5- June 28-29, 1972 There ms some feeling th'1t Feder-'31 Stnnd01rds might preempt these V'lr ious state regul1tions. Mr. Kettering indicAted th'lt even if they did, the experience with br~ke flu~ds shows thnt the state will still require certific'ltion, even if it is c.'llled registration. The conclusion ::~ppeared to be the~t even if FederF~l standards 3re written, the industry will still h~ve to face certificF~tion (or registration) with tha v~rious states. The consideration of legal challenges to r\\MV1\ certific"'tion requirements w"s discussed: No state }1w now requires recertification on the V-3 procedure. The \~MVS is simply =1n 'lssociation of administrators who have quc.stionable legal status - can a state deleg~te their regulatory powers to such =1n associ=1tion? The f\<\MVI certification fees nre uncontrollable- it parallels tax:dion without representation. Those paying fees to ,,.~MVI\ "lre paying for their own surve i llFlnce. Mr. f\. Comins questioned what safeguards the industry has as regards fees charged by <\1'\MVD... Mr. Nelson ~nswered that there were none and th"lt /1.\MV;\ had .alrMdy indicated that the fees would rise when their surveillance program starts .\fter discussion of the Compliance Sampling and Certification Responsibilities of Manufacturers, the Chairman requested recommendations from the Membership for members to serve on a suggested Quality Control Sub-Committee. ,\question from the floor asked whether members not using the recommended quality control practices might not be cited ::ts not complying. ~iithout specifically answering, the point YAS made th3t even if one did use recommended sampling techniques there was no guarantee that he would be complying with requirements. It would be the intention of this Sub-Committee to suggest rensonable procedures .and techniques, with s1mpling requirements that reasonable government regulators would accept. During discussion on the NHTSA pl3ns for a brake lining standnrd using n single end inertia dynamometer, Docket 70-27 for the upgrading of FMVSS 105 w~s discussed. To resolve a question on Docket 70-27 it was pointed out th'1t Docket 70-27 pertains to all vehicles with hydraulic brakes and that there are different requirements between passenger cars and other less than 10,000 GVW vehicles, ~s comp"lred with vehicles over 10,000 GVW. Mr. A. Comins brought up a question concerning materials as 3 substitute for 3sbestos in friction materials. Mr. Comins suggested that the Institute eng:~ge an 'outside consulting firm to determine if there was a practical substitute for asbestos in brake lining. Such a firm would be asked to resolve (1) If there were no pr3ctical substitute, say so, and the Institute could use this as support in dealing with asbestos regulations; (2) If there were practical substitutes, pass this information on to the Institute along with the consulting firm's recommendations. R~ther thAn call for a motion, a show of hands was called for to indicate if members were interested in this approach. r, show of hands indicated 7 or 8. These were not all delegates (or alternates si H ing in place of delegates). \s no motion was properly seconded, it was recommended that the Asbestos Study Committee consider this suggestion and report back to the Board. FMSI 00036 i~inutes of \nnual Meeting -6- June 28-29, 1972 Upon motion duly made, seconded and unanimously p~ssed, it was RESOLVED: That the report of the Br~ke Performance Study Committee be accepted. BUDGET COMMITTEE REPORT Mr. Carl Iieber, Chairman, presented his Committee's report. In summary, the budget projects .$73,795 expenses, approximately a 5% increase over the -:P0,260 budgeted for 1971-72. For details of the Budget Report, see EXHIBIT 6, and for line items see the Proposed Budget, EXHIBIT 6.1. Mr. Osborn questioned the Bad Debts Provision for $1,000. The Secretilry explained that there were some collection problems and that this was not a cash outlay but an accounting entry to reflect the possible noncollection of receivables in the year in which the income would be realized. The ChairmAn advised that at the Board Meeting on June 27, 1972, the Board had resolved that the proposed budget of $73,795 for the fiscal year starting July 1, 1972 be accepted and that its adoption be recommended to the Membership. Upon motion duly made, seconded and unanimously passed, it was RESOLVED: That the proposed budget of $73,795 for the fiscal year starting July 1, 1972 be adopted. DATA BOCK AND TECHNICAL COMMITTEE REPORT Mr. Ron Moalli, Chairman, reported on the 1971-72 activities of the Committee. The detailed report is EXHIBIT 7. Among items reported on were the clutch facing drilling illustrations (now a part of the D.,ta Book), the Brake Block Identification Catalog (to be printed in i~ugust 1972), the EDP Numbering System (to be a part of the 1973 Data Book), the Brake Lining Consolidation Program, and five resolutions on disc brake lining and shoe assignments. These five resolutions were made, seconded and passed by the Committee and are listed in the detailed report, EXHIBIT 7. The Chairman discussed assignments of foreign car brake shoes for the Brake Shoe Identification Catalog. At the current time, the only foreign shoes shown are for Volkswagen, but the Committee intends to expand this with some of the more popular foreign cars such as D~tsun, Toyota, etc. It was recommended that the Institute Development Committee consider the needs for a heavy duty Brake Shoe Catalog .'\t the Board Meeting on June 27, 1972, the Secretary was directed to see that the Data Book (and Supplement) be shipped to the members by May and that the Brake Shoe Identification Catalog be shipped to members by July. FMSI 00037 Minutes of Annual Meeting June 28-29, 1972 Mr. A. Comins asked for an explanation of the EDP Code Numbers and the Chairman explained that the existing FMSI Numbers would be continued but that the EDP Number would be added parenthetically below the FMSI Number in the numerical section of the Dta Book. Mr. Osborn made a motion that considering the outstanding contributions to the Institute by Mr. Moalli, Chairman of the 03ta Book and Technical Committee and by Mr. Nelson, Chairman of the Brake Performance Committee, that the Institute show their appreciation by honoring them in an appropriate manner. After discussion, upon motion duly made, seconded and unanimously passed, it was RESOLVED: That the Institute Development Committee be directed to suggest an appropriate means of demonstrating the Institute's appreciation to Mr. Moalli and Mr. Nelson. Upon motion duly made, seconded, and unanimously passed, it was RESOLVED: To accept the report of the Data Book &Technical Committee. FEE FORMULA COMMITTEE REPORT Mr. R. C. Brigleb, Chairman, reported on the Committee's activities for the year. See detailed report EXHIBIT 8. In summary, the fee formula rules were clarified in October 1971, and the fees for 1972-73 will remain the same as for 1971-72. Active Members: Basic Fee $1,050 Each Category 650 Regional Members: Associations 2,200 Individuals 1,300 Licensees: 500 The following resolution, passed by the Board of Directors on June 27, 1972, was read by the Secretary: RESOLVED: That for the fiscal year starting July 1, 1972 that the fees chargeo .......~;".,. Members, Regional ""-~h"~rs ana Liconc.ees remain at the sauro l .. ~ol ::~!": those for the year starting July 1, 1971. Upon motion duly made, seconded and passed, it was RESOLVED: To accept the report of the Fee Formula Committee and the fees as approved by the Board of Directors. INSTITUTE DEVELOPIVENT COMMITTEE REPORT Mr. J. H. Kelly, Chairman, reported on this Committee. See EXHIBIT 9. In Mr. Kelly's report to the Board on June 27, 1972, he had concluded t~at because of a lack of interest, there was no need to pursue further the Idea FMSI 00038 Minutes of Annual Meeting -8- June 28-29, 1972 of an hydraulic brake parts section within the Institute. However, there was considerable discussion at the Board Meeting on this subject. It w~s felt that the merits of an hydraulic brake parts section could not be resolved at this Board Meeting. It was suggested that a broader classification "Brake System Parts Manufacturers" be used rather than "Hydraulic Brake Parts Manufacturers." It was suggested at the meeting that since the basic problem of enlarging the Membership to include brake system parts manufacturers could not be resolved, it might be in order to bring this to the Membership so that they could consider authorizing changes to the Constitution and By-Laws that would permit this type of change in the fv1embership. The purpose here was that making contact with the brake system parts manufacturers without the authorization of the Membership might prove fruitless. iVlr. A. Comins commented that he was against enlarging the Institute's Membership to allow those in the brake system parts manufacturing into Membership. He was concerned about dilution of the Institute's efforts away from friction materials manufacturers. Mr. Moall i suggested that since most of the legislation in Washing'l:o11 <Hid elsewhere was primarily concerned with brake systems rather than brake lining as such, perhaps there was merit in the Institute including brake system parts manufacturers. Mr. Nelson suggested that if we were ,-opresenting a larger segment of the brake industry, our recognition in Washington would be increased. It was also suggested that since we are involved with Washington and the states there would not be as much dilution in our efforts as first indicated. The Membership was advised that the Board was suggesting only that the changes necessary in our Constitution and By-Laws to accommodate such a change be studied. The Membership was not being asked to make a decision on whether the Institute should he oponod up to brake ~ystem manufacturers at this time. Further, tho Membership would later on be given the chance to vote on any changes to the Constitution and By-laws that might be nocoss<'~ry to accommodate such a change. ~fter discussion, upon motion duly made, seconded and passed, with one dissenting vote, it was RESOLVED: That a committee be appointed to recommend appropriate amendments to the Constitution, for the purpose of expanding the Institute to include manufacturers of brake and/or allied parts and that a favorable vote on this motion will constitute authorization to proceed with discussions with such potential new members. The President advised again that any actual change in the Constitution must come back to the Membership and such changes would most likely be recommended after the Institute Development Committee studies the Constitution and By-Laws. While there was a lack of unanimity on this subject, the Chairman felt that the Institute should contact brake system parts manufacturers again to determine the extent of interest in Membership in the Institute. Upon motion duly made, seconded and passed, it was RESOLVED: That the report of the Institute Development CommiHee be accepted but that the subject of brake system parts manufacturers be kept open. FMSI 00039 i'<linutes of \nnua1 Meeting -9- June 28-29, 1972 MEW:BERSHIP COMMITTEE REPORT Mr. Frank Gatke, Chairman, delivered this report, See EXHIBIT 10. In summary, the report indicated the following: 1971-72 1972-73 Active Members Regional - Associations - Individuals Licensees 22 2 7 8 25 2 8 8 Prospective members were duscussed. Allied Friction in Florida sells new drum shoes and new disc brake shoes. National Friction (subsidiary of KelseyHayes) is selling brake linings in commercial quantities in the automotive market, but it is not known whether they are using FMSI numbers. M& D Brake, California, has been using FMSI numbers on price lists, and had been contacted by the Institute. The Institute office solicits information on any manufacturer who is using the FMSI numbers without proper authorization. Upon motion duly made, seconded, and unanimously passed, it was RESOLVED: That the report of the Membership Committee be accepted. PUBL IC REU\T IONS COMMITTEE Mr. W. Simon, Chairman, delivered his Committee's report. Refer to EXHIBIT 11. The members were advised that this controversial report received the strong support of all Board Members despite the Secretary's objections. Upon motion duly made, seconded and unanimously passed, it was RESOLVED: That the report of the Public Relations Committee be accepted. NOMINATING COMMITTEE Mr. Simon, Chairman, reported that the resignation of Mr J. L. McGovern, Jr. had been accepted with regret. Mr. McGovern had one more year \-.> ~""' '""' on his two year term. The Chairman reported that his Committee, after due consiot:aco.. tion and in accordance with the requirements of the Institute's Constitution, presented the following candidates for election to the Board of Directors: For a one-year term: (the unexpired year of Mr. McGovern) Mr. D. E. Gow Raybestos-Manhattan, Inc. For a Mr. Jtw. ow-y. eGarreetenramn: Mr. F. Gatka Mr. F. E. Messier Mr. E. A. Zacharias Maremont Corporation, Grizzly Brake Division Gatke Corporation Bendix Corporation Friction Materials Division Carlisle Corporation, Molded Materials Division FMSI 00040 Minutes of Annual Meeting -10- June 28-29, 1972 In answer to a question from the floor, the Chairman advised that the other Directors were: Mr. W. Simon Mr. C. Weber Brassbestos Corporation World Bestos Company, Division of the Firestone Tire & Rubber Co. Messrs. Simon and vieber wi 11 start the second year of their two year terms ~s Directors on July 1, 1972. Other nominations were called for, but none were made. Upon motion duly made, seconded and unanimously passed, it was RESOLVED: That nominations be closed. The Secretary was directed to cast one vote for the election of the five nominees to the Board of Directors. The Secretary advised that the ballot had been cast. Mr. Simon advised that with the election of these candidates and the two Directors whose terms have not expired, the Board now consists of the required seven (7) members. BOARD OF DIRECTORS REPORT The Secretary reported that in addition to the resolutions passed by the Board of Directors at session on June 27, and read to the meeting, during the fiscal year the following were also passed: l. Acceptance of the proposed budget of $69,860 for the fiscal year starting July 1, 1971 as adopted by the Membership. 2. Acceptance of the fee formula for the fiscal year starting July 1, 1971 as proposed by the outgoing Board and adopted by the Membership. 3. Ratified all acts of the officers, staff and committees for the year ended June 3.0, 1972. 4. A resolution that only those members reporting the historical sales figures would receive copies of the reports. 5. A resolu{ion expressing the Institute's interest in contacting hydraulic brake.parts manufacturers concerning their membership in the Institute. 6. Authorization of Mr. L. D. Stickles, attorney, as a check signer along with the President, Treasurer and Secretary. 7. A recommendation that the Institute offices be moved to New Jersey by December 31, 1971. 8. The reinstallment of S. K. Wellman Corp. as an Active Member. 9. Recommended to the Active Members the acceptance of the following applications for Membership: FMSI 00041 Minutes of Annual Meeting -11- June 28-29, 1972 Active Members: Molded Industrial Friction Corporation Auto Specialties Manufacturing Company Licensee: Grinnell Stamping Company --------- The President thanked the Membership, Board of Directors, Committee Chairmen and members for their accomplishments and cooperation during the past year. No further business was brought to the attention of the meeting. Upon motion duly made, seconded and unanimously passed, it was RESQVED: To adjourn the second day's session of the .~nnual Membership Meeting on June 29, 1972. Adjourned at 10:45 A.M. E. W. Drislane Secretary FMSI 00042