Document MGbKD6Qny2NVRjQ1YJJZBkody

: "L7L'TES )f AN:::.:'~ ':::::::TiG of the "ednesday and Thursday, June IS, and 1'], 1975, 3:30 A.H. at Innisbrook, Tarpon Springs, Florida ~lE~~bLRS rD.I:SEl!T _.bex Corporation Auto Friction Corporation ~endix Corporation Friction ~~aterials Division ilrassbestos :~nufacturing Corp. Carlisle Corporation Holded ~1aterials Jivision Gatke Corporation General tiotoro Corporation :Jelco-:~oraine :Uivision Hayes-Albion Corporation :.rarenont Corporation Grizzly Brake Division :Lolded Industrial Friction Corporation :I. 1Z. Porter Co. Thermoid !Jivision I'..aybestos-!!anhattan, Inc. Redda\lay llanufacturing Co. ~oyal Industries B~ake Products S. l~. Vellman Corporation r.n,eeling 3ral:e Blocl~ ::f?,. Co. :JT .~i!'.S P~"..ES Ei iT Abex Corporation Auto Friction Corporation Bendix Corporation Automotive Aftermarket l)perations Heavy Vehicle Systems Group Gatke Corporation :!arenont Corporation Grizzly Brake Division ~lded Industrial Friction Corp. H. !~. Porter Co. Thermoid Division J.aybestos-::anhattan, Inc. ~-~oyal Industries :3rake Products S. l~. ~'ellMan Corporation Hhecling Brake Block :fg. Co. Federation of European :fanufacturers of ::ric tion !laterials (FE!:F~i) Clapp & Eisenberg Friction llaterials Standards Institute R-EPRESENTATIVES S. S. Com-1ay Stuart Comins F. E. Hessier H. Simon E. Il. Zacharias F. I. Gatke r-,, E. ~Cetterin<; (Proxy for :tr. Kick) :I. Gudema J. '!. Greenen '1. Amos A. Lechter Lopez ::.. :t. :roalli F. 1!. Barton D. l)~ilvie J. E. Clegg L. Burgess n E. Nelson B. Kublin ~l. J. Cooney R. Elliott H. Boyle H. Knight A. Laus T. 'ierrell E. L. lrerner D. E. Gmr H. a. Sleeth c. :~e~rell G. A. Carrip,an G. Stratton .." Join ...n P. Gorman E. u. Drislane FMSl 02213 :itutes of tr.e Annual :~eet inr; -2- June 18 & 19, 1975 :rr. Gatke, President, called tiL; :;eeti:1~ to ,1rdcr at 8:30 A.~;. ::Lil"l'ES IJF Pf..T.:UI'1US "ECTUG The minutes of the :ieeting held June 26 and 27, 1974 had been distributed. :~o readin~ uas requested nor ~-Jere any corrections ITlade thereto. Upon Motion duly made, seconded and unanimously passed it '"as :tESOLVED: That the minutes of the :\eetinp, held June 26 and 27, 1974, be accepted as distributed. PRESIDE:-;T'S REPOI'.T ::r. Gatke, President of the Institute uelcomed the ::ernbership to the .'.nnual ~leeting at Innisbrook. i:r. Gatke read the President's Report. ?lease refer to Exhibit 1. ~~r. Gatke covered items of interest during the 1974-75 fiscal year and in particular thanked the Officers, llembers and Staff for their cooperation during the past year. Upon motion duly made, seconded and unanimously passed it Has ~ESOLVED: TI1at the President's Report be accepted as read. llEPJhT Q~J BO!L'I.D OF i:liitECT'lT>_S '\CTIVITIES The Secretary report~d on the Joard of Directors Activities for the fiscal year 19 74--7 5. It 'ms pointed out that in past years the report of the Directors activities uas read near the close of t:1e Annual Hembership ::cetin;;. doNever, during reports by various Corn!'littee Chairmen, questions would be a!!S''Tered by stating they rrould be covered later in the report on the Board of Directors activities. At the June 1974 l:eeting it was suggested that the report on the Board of Directors activities be moved to the top of the agenda so that any similar questions could be resolved 'Jeforehand. lir. Drislane reported that there were four Board of Directors Heetings held since the Annual ilenbership ::eeting in June 1974. There ~,as one held on June 27, 19 74 immediatelv after the liernbership ~teeting. Other meetings uere nelc! on ;)ece,.,"Jer 19, 1974 in Paramus, and on Harch 13, 1975 in C:licago. In addition the Joard of Directors had met at Innisbrook on June 17, 1975. '.Lh:z :)irectors elected officers for 1974-75: Frank Gatke, President, ::illian Simon, Vice-President, Andre Laus, Treasurer, I:dvard Dris lane, Secretary. 'Zhe Lav firm of Stickles, Kennedy and Van Steenburgh and the auditors, >arshall Granp.er and Company, ~-;rere retained for the 1974-75 fiscal y2ar. The Budget and the Fee Formula for 1974-75 v7ere approved. :~r. Dave Co~, ",aybestos-::anhattan, tendered his resignation to the Board of .Jirectors and :1r. ~1oalli, ~Zaybestos-~~nhattan, Has appointed to replace him. t:r, ~onald Cutler, Abex Corporation, resigned from the Board of FMSl 02214 ::inutcs of t;,,, L\nnual ,:eeti :-:::; June 12 .:, 1'), 1']75 ,)irectors arrd :ir. Stcv" Co:"'<:P', J\bex Cor::;oration, was appointed to replace him. One of the main activi tles, '!hich tooL tj r.1e :tt several ::~eetings, Has the change of Legal Coumel. \t the ~:arch 13, 1975 ~,eeting, the i~e>rark, r1eH Jersey firm of Clapp & I:iscnberg ;:as selected to serve as Legal Counsel for the Institute effective June 1, 1975. Earlier, the firn of Shenier and 0 1 Connor, of :-.eu Yor!~ City, 'las selected to do our copyright ~mrk. !he 0irectors revie~ved the investnent reconmendations of the Investment AJvisory Committee. The Directors voted for acceptance of five ne~r :Zegional ilenbers to the Institute and the acceptance of ~!ayes-Albion as an ;\ctive :"ef!l0er. These >:rere later ap])roved by the :rernbership. Further, the Directors approved ~-:.enebuc (Galt) Limited of Canada as a Licensee. In addition the Directors approved chan2;e of the date of the June :eeting to ::,2 held at Innisbrook. At t~m i'.eetings, the Directors revi~red the problem of outside requests for catalogs rrhich ~Tas settled by recommendation of current ler,al counsel. In addition the Directors revi~-;ed a report Hhich ~Tas Trritten by the :::ecretary on a ueeting held by the Truck Safety I'quipment Institute (1SEI) concernin~ certification requirements of the ~~erican Association of ::otor Vehicle Administrators (Al'IJ.r:rJA). The TSEI uas interested in financial support from the Institute for a possible suit a?,ainst the State 0f Pennsylvania on the :J~~A certification requirements. The .3oard. of ~irectors declined to offer financial assistance. 'i.'hc Directors revieTec recommendations for a change in Historical Sales ~eporting. They adopted reportinG on a quarterly basis and included :'..egional :embers payir.; Active :;evher's dues in the renorting companies. Acting upon a suggestion fron a Jirector, the Board of Directors resolved to contact tl'le As'uestos "!:nformation !,ssociation over possil.Jle financial help to tl.lat Association. T.le Secretary contacted the AIA, but the .t\sbestos Information c\ssociation indicated that they Pould prefer that individJal conpany !!!e~1bers su:r>port their Association, :~r. Jrislane ~:'as directed to send a copy of the A.sbestos Infornation \ssociation correspondence to tl'le rembership. 'i'!1e Directors recor.unended that the Institute establish coumunications 'lith the Federation of :european i.:.anufacturers of Friction ;i;:lterials (F~:Ft~). Along this line ::r. F.obert Join, Secretary of the FE!!F:! rras invited to address our ;[embership. The Institute's copyrights <Jere revi~red by n~' copyriGht counsel uho indicated that these copyrights are valid and enforceable. i'Iw Directors voted to increase Uiss Duschek's Pension from $3,600 per year to $4~8':'0 t;>er year. The Secretary ':las directed to investi~ate the possiOility of purchasing an annuity to protect :ass Duschek. In addition the Directors voted an increased salary for the Secretary, Er. Drislane. :!:he Directors resolved to have the Data Book and Technical Conmittee do further study concerni~~ the possibility of publication of a revised Industrial :?riction :;aterial Catalog. The Data Book and Technical Ccm!:'.ittee u.:1s also directed to study the subject of introducing the Metric syatel'l to our bulletins :1nd catalogs. The Directors revi~red the Defect ~iotification requirenents referred to by both the Erake Performance Study Committee and Quality Control Sub-Committee. The ~irectors revi~~ed all Cot~ittee re~orts. The ~irectors declined to reco~end action to be taken FMSI 02215 :inutes ci~ 1:lte Annual :reetin;:; -4- June 18 & 19, 1975 as regards the fallibility of the 'Cf.lbr:ne filter Method for the enforcement of the t~w fibers per cc lLit ir. the '.lor2: place. rhey did instruct flr. :.ioalli to shon the movie co:tcernin~-: asbestos in the '70rl~ place entitled, '~:iller Dust--/~ ~ tandard -iis t<tke. ' "!:his is a television production put out by Gra:-cada TV '..'!1ich r-.;as given considerable publicity in Great Britain. 'i"his :ill be shom at the :rember:;llip :;~eting. 1be Board of Jirectors resolved to include in the Historical Sales Report the nar:1cs of the individual members reporting in each category, This \'lill be an item on the agenda at the :1embership ::eeting. Constitution and .._:.y-T... ar-Js recomnendations that ,,rere presented by the Institute DevelopMe~t Co~:r.ittee ~-rcre accepted. Jne itel"!l uas referred to Legal Counsel for his revieu, Th~ Jirectors discussed the recoomendation of the Institute Developnent Cor:H''.ittee for a survey on Salesmen Compensation. i:arlicr the Institute Development Comt'1ittee had turned doun such a proe;ran, but the Board of Directors in a S].Jlit vote recorn.rr~ended that the study on Salesmen Compensation Survey be made and they directed that a CoMpensation Study Committee be forned. Ho action had :,een taken by the !'resident on this Committee l.fter consider.:t0le discussion, and because this Jas a divided decision, the Directors recommended that this be referred to the :Iernbership for resolution. This \-:rill be an item on the agenda later in this .iJeeting. The Trustees reported on the activities and balances in the Pension Trust. There is a :_:>ension program for :ass Duschel: as uell as an Employee ::etirenent Plan established in ::ovember 1973. Information on this pension trust is included in the reports. The Directors resolved that l1enbers would receive free prints from the Institute on shipments of four or less prints in one order. This is to reduce cost to the Institute )ffice and cost to the :~embers!lip. In addition the ~irectors reviel-led the Trade Act of 1S74 Hhic:.. covers tariff negotiation uith other countries, countervailin;>: cluties, and tl'.e like. !lata on the Trade Act of 1974 lllill be sent in to the Institute Jffice for distribution to the l~embership. In addition the Directors revieued the requireme~t that category filing for r~e formula purposes be confidential. They had asked Legal Counsel to give his opinion on this subject. Legal Counsel advised that there ~ras no reason why category filing had to be l'e?t confidential. The Board of Jirectors voted to discontinue the confidential nature of this filing. After discussion of the shortage of asbestos due to a fire in one of the mills in C.:mada and the lon[: strike, the Secretary uas dir-:cted to urite a letter to the Honorable Congresslioman ilillicent Fenwick supporting her bill for release of chrysotile asbestos from the ~ational stockpile. Thi:> :i.s a report on t!le activities of the Board of Directors since the last l!.~mbership electing. 'fany of the iten!S that are covered in this report are on t:l~ a2;cnda for this aembership l~eeting. --" 'lJ3:S~'.T JOI:1--I'EDfu\TIJE OF EtmOPEAi.1 P..M:UFACTUREI~S 0F Ff..ICTIOU :IATP.IALS The President introduced ~Ir. !lobert Join of the FE!lF!i to address the :lembership. :ir. Join is Executive Secretary for o..ro organizations similar to those in the United States. The FEHTii vould be similar to the F~lSI. :Ie FMSI 02216 _,i_;:ut2s of the ,\nnual ~:eeting -5- is also secr8tary of -T1 or-;c.'.rJzotion s:!J~ilar to the /lsbestos Information Association: the Chambc-.; ~y:1.::ic:1le C:c 1; ,\:::i:ntc (France). :r. Join has background in th!~ regulation nnd oq;anization of friction materials manufacturers on the cont:i.:1cnt, and a responsibility for the industry association of asbestos users . . :r, Joi.n limited his presentation to the activities of the Federation of I:uropean r:anufacturers of friction ~laterials. TI1iS had to do ~lith the reg\:latory clir:~ate in :::urope and problems concerning a standard for brake linings to be used for replacement on vel1icles in the Common ~l.arket. :;r. Join .raa invited to address our ~!eetino; based on recoMmendations of the Board of Director::; at their !:arch 13, 1975 :1eeting. ::r. Join discussed some of the or~anizations in Europe. He indicated that ec.ch country in Europe !1as tuo met:lb ers in the FE!1F1!. : :r o Join ref erred to two zroups on the continent: ECE (the Zconomic Council for Europe) and .s::c (the :uropean Economic Conmunities). The EEC is a u:r group based in Geneva and the ;me is the European Common !Iarket f::rOU? based in Brussels. ;tr o Join presented a slide shOTTing the organization of these groups and he pointed out that they are not only represented by European countries, but there is ~nerican, Japanese, and Soviet Union representation. The point uade by ~:r. Join is that some of the developnent taking place on the continent 'Jill not be limited to Europe. Some may have uorld tvide effects . .:r, Join referred to P.egulation 13 that '!as drafted in 1958. This regulation, if iwpleoented, could have the effect of requiring that all replacel"\cnt brake linings be certified as satisfactory by the vehicle ':!anufacturers. In l'J71, the EEC moved to nake these requirements compulsory for countries in the I:uropean market. If such action Here ir.:IJlement~cl it ~rould have most serious consequences for independent brake linin; 8anuf~cturer8. ::r o Join <~ill draft a summary of his comments to the :rembership and foruard t~e"' to the Jffice for distribution to the ~le!"bership. At the conclusion uf ::r. Join's talk there Here questions concernins the industrial climnte in :::urope and t!1e rep-ulations in effect for brake linine manufacturers. Lr o Conuay pointed out that -:r. Join had gone to r.reat effort to come to the ~nited States to preoent this talk. Upon 1'10tion duly made, seconded and un?.ni~Jously passed i t "''lS :-'.i::'DU'I:D: That the Institute expresses their thanks to !~. Join for his efforts in presentine backzround on the Suropean friction materials situation to the Institute. It uas :Joi::lteci out that Dennarl~ is the Secretary for T!orking Group 2 of ISJ TC 22. !his group ::l..s 'iOrking on classification of brake linings in an effort to cse such classification for qualifying material for replace- ment bra~~e linin<; usage. ''r. :-;-clson, Chairr:mr. of our Brake Performance Study :onnittee, attended ~eetings in ryenmark in June 1974. The !ork \Jeing :lone by l!orking Group 2 should be of interest to all manufacturers of '~rake linin0s. FMSI 02217 ,[inutes of t~1-= Annual ~.ccti!1g Jc,nc 18 & E, 197.5 The President introdur.rd :.r. ',nbert Gornaa o t:\C ~~nark, :'e\1 Jersey firm of Clapp & Eisenbers. ~:r. Cor!'lan is tl:~e legal counsel selected by the ::>irectors. ~rr. Gorman discussed briefly the bac!-:ground of his firm, and indicated his pleasure at being selected as Legal Counsel for the Institute. !RW'.SURI::::', Is ~.EPIJRT ?ir ~ Andre Laus, 'freasurer of the Institute presented the Treasurer's report for the 1974-75 fiscal year. Please refer to Exhibit 3. ~ir. Laus ?ointed out that the results in this report clere projectec to June 30, 1975 baserl on data available as of April 30, 1975. There could be changes in sone of the line items. ~le revieHed perfornance ,,ersus budget uhich projec:ted a net favorable variance of $11,520, based primarily on the increased l"lembershi? fees from ne11 regional members and the interest income Hhich 'Yas not reflected d1cn the budget Has prepared. :;r. Laus pointed out that the Institute continued to be in healthy financial shape. This projected income uould brinf' our Capital and Surplus to about $140,000 as of June 30, 1975. :Lr. Laus concluded the report indicating that He had shmm an excess of income over expense~> for the past several years during which tine there has been no increase in the dues level. He specifically referred to the t\velve year financial summary r1hich acco!':'panied his report. Upon notion duly Dade, seconded and unanimously passed it 'laS ~ESOLVEJ: ~~1.at the Treasurer 1 s report be accepted as uritten. :IEi:BERSHIP CO:[liTTEE :ir. Greenen, Chairman of the :ienbershill Committee submitted this report. Please refer to E~1ibit 2. ~,r. Greenen indicated ~-1e had sained five :tegional llembers and one Licensee during 1974-75. The Institute lost '.1orld Bestos Division of firestone, a lonG time member of the Institute. I-tayes-1\lbion Corporation, a new manufacturer of friction materials, joined the Institute. Upon IT'.otion duly made, seconded and unani!"louslv passed it Has RESOLVED: That the Her!bership report be accepted as uritten. L:V:ST:r::;T ADVISORY COU:aTTEE ~!r. Tfilliam Simon, Chairman of the Conmittee presented the report. Please refer to :xbibit 4. In summary ~Ir. Simon indicated that the Institute had maintained most of its funds in higher interest bearing time-deposits. The Institute uas unable to place funds in treasury obligations when the old time-deposits matured, because of the fallinc interest rates for treasuries. It ~vas indicated that FMSI 02218 .:i'1utes of ::h~ Annual : ectin:= -7- interest inc.or..e in 1') 74-7 :j ~ri ~-1 0 ~ ::1ppro:--:i:':.1 tely :;') , 300. Upon motion duly made, seconded :md unanir:10usly ?assed it .-ras r,.LSJLVED: .hat the ceport of the lnve~Jtnent i'..dvisory Committee b.; accepted as Hritten. BUDG::T co;I:IITTEE ~tr. Jam8s Cle~g, Chairnan of the oudr;et ComTTlittee, presented this report. Ple~se refer to ;.:xhibit 5. The .budget Comnittec proposed a bud:et of $70,575 for the 1975-76 fiscal year. This 'ould be $4,525 more than the 1974-75 budget and about $2,300 over tl1at \!1-J.ich ~as projected for 1974-75 as of April 30, 1975. After the buJ:;ct 11au ori13inally been submitted by the Committee it had been decide.i to increase pcns-I.o::1 fund payT'lents to :iiss Duschek by $1,200 annually. As a result the bud~et as approved by the 3oard of Directors Has increased to $7'0,775 for the 1975-76 fiscal year. Upon motion duly made, seconded and unanimously passed it Pas :'..ESOLVi:D: That the report of the Budget Committee be accepted as read. FEE FOP-~:ULA CO: :.IITTEI: o.:ir. )..'..1dre La us, Chairnan of the Fee Fort:~.ula Corra;;i ttee presented this report. Please r.efer to 2xhibit >ased on the original bud~et recommended by the i3udget Committee, the Fee Formula So~~ittee recommended that the annual fee schedule remain the same for 1975-76 as it has been for the last four years. This Hould be lcctive :embers; basic fee $1,050, per category $650; !ler:ional ::embers; indivi'.iual n, 300, association $2,200: Licensee $50J, ~egional iiembers ~rith the sane rights as Active :rernbers '70Uld pay the same fee schedule as Active ~:cobers. !JurinQ; the meet in~ the budeet ~ras increased by ~ 1, 200 to a Ugure of $79,775. Rased on the projected membership and cate~oriea for 1975-76 this Hould produce a $2,625 operating deficit. Ilom~ver, this projected operatin~ deficit does not include approximately $10,500 of interest income anticipated for 1975-76. U::>on r:otion duly .-Jade, seconded and unanimously passed it tras T'.ZSCLV:::::;: That the fee formula be continued for 19 75-76 as it uas in this past fiscal year. Pctive ::embers- basic fee $1,050, per category $650: ;;,e~ional tlembers: individual $1,300, association $2,200: Licensee: $500. upon notion duly made, seconded and unanimously passed it ras -~;~SlLVED: That the report of the Fee Formula Committee be accepted as written. FMSI 02219 -8- lu!:..: LC; ~ 19, 1975 . .r. Filliarn Sir.on, Cltn.ir8m: of t~w ~ublic -~elations Co'tl",ittee :;ubPitted this report. Please refer to __ ;cl\.i"Jit 1:.::. -~r. Simon indicated that there ':ad not l:>ecn ~mch in the Pay of press releases in the 1S'74-75 fiscal year except for the announcement of election of officers at last year's D~~tinr.. :lr. SiMon, 01t the i)irectors ..eetin:--, distributed conies of ;mblic relations releases printed in tl-te autor,otive trade journals for the past several years. This distribution "T.::ts nade at the request of ::r. :)ave Got.Y at the June 1974 ~1eetin". r. Goo uas nre<;e,..,,ted a copv of dtese press releases. Upon rwt:ion .July made, seconded and unaninously passc.-:1 it TJllS ,;:c~r:r!..."'.'i.".J ~ That Le report of the Public i.i.el.:ttions Conmittce be accepted as :;ritten. :1r. Com-1ay, Chairman of tlte Institute :>evcloprn.eTlt (;onr:ittee ?resented this report. !'lease refer to rxhi.bit 10. In the report, t!"le Cor.ni t t<.~e hnd recommended the c;1an?es in the Constitution and l::y-La'vS pendinz rcvien by Legal Counsel. Abo the Committee recomt'lended that contact be C3tablished 'lit;t the Federation of Euronean :~anufacturers of Friction ::aterials. The COT"'"''<ittee studied the SU>j;:>estion on a proposed survey of s~les~~l Conpensation and rcconmended t~at it not be considerec furtl:er. '.lso the Co1'1I!'.ittee !!"lade several reconrendations concernint- the .:istorical Sales Iteportinr:. In addition there uere recorn:~endations concerninG tl1e ,\sbestos InforMatioP. \ssociation and the possibility of ~roducin" a lined shoe catalog. Items such as the aistorical Sal~s ?:.eportin2 uill be covered in a 3enarate section of t:;r: :inutes. ~'.c rz~ards t;1e'snrveyoon Salesman Conpensation, this (as noted above) had been r;;jectcd uy the Insti~ute Develo:pBent Comoittee. Hmvever, at the. ~~arch 13, 1975 :r.e~ting. of the Board of Directors, the 3oard overruled the Institute :)evelopmeut. Committee 1s recor1mendation. :[r. :ressier discussed the ~cneral tarr,ets to be souc:ht in a survey of this type. He indicated t~1at the survey uould perhaps be similar to that of thP ::;:;:r.:\ for content, but it .rould be tar~eted into the friction materi::tll" .<~rea. _-\t the Board of Directors ~Ieeting on June 17, 1975 it ~-Jas decided that since the Directors crere split they -:10uld refer this problem to the :tenbership. In response to a question, th~' Secretary made an estimate t~at the fee for such a surv~y ~-muld "!)e $1, '):)). A nember questioned ~1het~er this ~7<1S loP since our I~istorical S'iles :i.e?orting costs more than tl'.is. T:1e Secretary replied th.:1t he felt that the Salesnen Compensation survev "Ould be 'l one time survey uhereas Cistorical Sales E.eportinc; :Ls O;t a quarterly basis. : r. l'essier indicateci that such a survey Hould not tell a t:~enber Hhat he l1ad to do. It rould only sr!rve as a guideline. Ot~ers i:1dicated that different :!embers narl~eted their products in different fashions. For exanple, sone sold to uholesale distributors ~<hereas others sold to re-builders and others to national accounts. '. fhat uould have r.eaning to one conpany ni~ht have FMSI 02220 ;;i;1utes of the Annual :;eeting -9- Junt: l8' & 19, 1975 little TI'eaning to anoi:1<cr. 'Jne mcc::wr ::-.tateri that there 'las sufficient information availal>le nmJ. _ r.otion H::ts na::lc to sunport the Institute's sponsoring a Salesmen CoMpro:nsation Survey. : 'otion ':7as seconded. 'This motion to proceed uith the Sale::;r:c:n Compensation Survey ':las rejected, ~lith 3 in favor and 12 opposed. '.lhe Cor.unittee Chairman reported that the recommendations for changes in the Constitution ~-1ere referred to Legal Counsel for his reviel!, After revie~! by Legal Counsel the changes 'Till be submitted to '1cmbershi ::> for ballot. Upon motion duly nadc, seconded, and unanumously passed it ~vas ~LSOLVE~~ 1bat the report of the Institute uevelopmen~ Committee be accepted as read. liiST0RICAL SALES r.EPO;{TE!G At the Board of :Jirectors 11eeting on June 17, 1975 it had been resolved that the ilistorical Sales ::.eport ~1ould include the names of the companies reporting in each category if at least four companies reported in that category. At this point, discussion turned to the difficultv that some members had in gathering the data on a quarterly basis. A me~ber asked 17hat would happen if, as in the clutch facing category T-l'ith only a few suppliers, one nember missed reporting. Houldn't others be able to estimate quantities by the individual company. It Tvas sur.0cste.d that these two problems should be isolated: (1) the re~ortinp, on a quarterly basis and (2) listing the participants reporting in each category. After considerable discussion it ~-1as recoMmended that the report be put on a quarterly basis for a trial period of one year. It uas stated that sales statistics are already on a quarterly basis Hith the first report having just been complete for the period to ::arch 31, 1975. Upon motion duly made, seconded, and unanimously passed it Has ~~ESJLVEu: That the Historical Sales I\.eporting uill continue on a quarterly basis for a one year trial period. Discussion next turned to the listin~ of the participants ry!lo are eneaged in each category. Legal Counsel had stated at the Directors Eeetinp: that if at least four ~ere reporting in each category he did not feel that there uas any problem.. If this Here a single line association, such as carburetors, there ~-rould be no problem. All ~-rould knon from the report Hho are reportinp.. The fact that there are four lines in our reports does not make our problem any different from four single line associations. Eot-Tever, it ~vas stated that it was difficult to divorce the quarterly reporting from the listing of the individual coMnany en~ar,ed in each cater.ory. Several motions were suggested concerning both t!le quarterly reporting and the listing of the individuals reporting in each line. One member stated that if the individual oompanies reporting in each line Here to be listed that his company mi~ht discontinue reporting. The problem of getting data out on a quarterly basis could mean, that if his report Has late, that listing of figures by product line could disclose too much. A motion 1as made but not seconded that the reportin~ be put back to a semi-annual basis. A motion ~'las than r.~ade to continue reporting on a quarterly basis as had been resolved earlier, but to not list the individual companies reporting units sold in each catecory. FMSI 02221 ;;inutes of the Annual :Ieeting -11)- June 18 & 1S , 19 75 Upon motion duly made, secondcJ, and unanimously nassed it Has RESOLVED: That the Historical Sales ~cnorting would continue on a quarterly basis for a one year trial period but that the individual conpanies reporting in each category 'Tould not be listed. i:IJHINATE:G COilHITTEI: P.EPORT Ur. Eessier, Chairman of the Uominating Committee reported on the recommenda-. tions of this Co11'.rnittee. He reported that there rere three Directors terns which ~-.rere expiring this year; 1-1. Simon, Brassbestos !Ianufacturing Company; S. S. Com-.ray, Abex Corporation; R. R. Hoalli, Raybestos-~1anhattan Inc. ,\fter due consideration and in accordance with the requirements of the Constitution the Chairman presented the following candidates for election to the Board of Directors: H.::. Sleeth, Royal Industries Brake Products; S. S. Com-.ray, n..Abex Corporation~ R. :Lloalli, ~aybestos-:Tanhattan, Inc. Other nominations trere called for but none ~oJere made. Upon motion duly made, seconded, and unanimously passed it ~o1as ~~SOLVED: That nominations be closed. The Secretary was directed to cast one vote for the election of the three nominees to the Board of Directors. The Secretary advised that the ballots had been cast. :rr. Gatke advised that uith the election of these three candidates, and the four Directors ~rhose terms have not expired, the Board no\-1 consists of the required seven members. ASBESTOS STUDY CO!llUTTEE ~~r. I. H. ~7eaver, Chairman of the Asbestos Study Cor.unittee had submitted a '.rritten report for the !'le!'lbership. trr. Drislane read the report for :rr. '!eaver. Fl0.ase refer to ~xhibit 9. !lr. ~!eaver 1 s report expressed concern for the accusations that have been pressed a cains t the indus try concerning the asbestos standards. lie revieTred some of the activities of the regulatory agencies over the past year. c~r. lleaver indicated that installers of friction materials are nm~ coning under the surveillance of Dr. Selikoff and other proponents of stronger regulations. ;:r. Heaver did not forsee any change in the attitude of the regulatory agencies. After discussion, upon Motion duly made, seconded, and passed ~-lith 15 affirmative and one negative, it \vas S.ESJLV'CD: That the report of the Asbestos Study Committee be accepted as ~ritten. _\t this point it \ras stated that the Directors had earlier directed the Secretary to correspond tlith the Asbestos Information Association concerning possible financial support for that association. Immediately prior to this meeting, a reply had been received from the Asbestos Information Associat_:f.on indicateng that it v10uld prefer that su.Pport of the Association be !!!ade by individual company membership. The Secretary uas directed to distribute copies of this correspondence with the Asbestos Information Association to the llembership. FMSI 02222 ''inutes o th-. Annual : .eet:Lnr> - ll - At the cor,clusion of t::w ~or:' i.n,: : :_;::; icn o:--. ..i '-~~c l 'l, -~. : oalli sho<Ted a r..ovie that Has tl3levised -;_,: C-l'3<lt :.:.r:i. t'!il:', :.J',' Cranada 1'!. l."his novie Has entitled ":aller Just-;', Stan-.':1rd :lista~:s. '' ".:."-,L; :'lovie covered the con- troversy between Dr. Seli\off of :~unt ~inai and ~r. L~Jinsohn. of TDA, Great :Sritain. In the pre~ent.2tion, !)r. ::'.'cli~~off stated that his interpretation of the statistics indicates a need for a lo~er limit for the fiber count than the 2 fihcr ";Jer/cc linit that is to r:;o into effect on July 1, 1976. ;~r. llclson, Chairman of the 3rake Performance Study CoMmittee delivered this report. Please refer to C~1ibit 7. 1r. ~:elson' s report dc~lt -1ith the nany problems faci::.g our industry u:tth emphasis on the re~ulatory asoects. ::r. :Telson revie,yed our contacts ~dth the ~:ational Highway Traffic /RR~r1:stration o:m:s:.), Arlerican ~,ssociation of :~otor Vehicle i\drainistrators (MJfVA), Vehicle Equipment Safety Commission (VESC) and various states. Cbanges and proposed chanres to Standard 105-75 (Hydraulic Drake Systems) and Standard 121 (Air Brake System) ~-rere discussed. Perhaps the r-.ost inport<mt '-"Ork ~!as that concernin~ Docket 1-4 uhich the ..mTSA entitles "Brake Shoe and Pad Assembly". ~~e have referred to this as the replacement brake linir.g standard. Information ha~. been requested of miTSt-. concerning dimensions, loading and ueights on passenger car brakes for the ~urpose of tryin~ to classify duty conditions Hith i'aramaters such as horse pm-1er per square inch of s~,rent area. The purpose Has to reduce the nU!:1ber of tests to qualify replacement linings, re3ardless of ~vhe!ther a vc,1icle, dynamometer or friction machine test ~<~as used. The i;i.!TSA advised that they uould not ~ather this information but ;rould continue 'lith research to develop a 11!'1ore practical approach to the bral~e linin~ standard." :~!r. Helson discussed the defect notification requirements that nou cover eC!uipment manufacturers. The Quality c-:ontrol Sub-Committee had also revieued tl1is defect notification r2quirenent. Re3ulations have noH been proposed to implement Pul>lic Lau 93-492 uhich extended the notification requirements to equi')ment !'1ar.ufacturers. ~nc of the points 1as that there uas a three year notification rcc;uircncnt on tires. It :1as suggested that brake linings are a consumable itcn similar to tires. ::r. :lelson pointed out that tire I!'.anufac- turers !!lust advise all end purchasers on a defect notif-ication-- progT~am. :Ie felt that ue rould rather have the eight year notification requirements than the three year tire requirel':lents because of this notification requirement. In response to a question f!r. ~~elson felt that the 277 foot stopping distance at sixty Miles per hour in Standard 121 is realistic. It is equivalent to a thirteen foot/sec2 deceleration. Upon motion duly t:mde, seconded and unanimously passed it uas i'.i:SOLVED; ':i:hat this report of the Brake Perforwance Study Committee l.Jc accepted as ~>Jritten. Futher, the iiernbership extended their thanks to !Ir. ~ielson for his ~lOrk 'lith this Comi"ittec. FMSI 02223 ::inutes of L:c Annual :Ieetin~ -12- June 18 & l'J, 19"75 i"lr. Drislane read the report Hhich ~-rns ~rcrnred by :r. John Easton, Chairman of the Quality Control Sub-Committee. Plense see ~xhibit 7.1. .r. Easton's report indicated that the Committee '!enbers '<ere Harking on an outline and overall theme for finalizin~ a quality control package. Also ::1entioncd tvas rublic LaH 93-492 and the proposed implementing requlations in the Federal Register of :lay 6, 1975. :Ir. :lelson had covered the Committee's comments concerning these resulations on defect notification requirements for equipment manufacturers. Upon motion duly made, seconded and unanimously passed it Has RLSOLVE:J: ':'hat the report of the Quality Control Sub-Committee be accepted as uritten. A:CT,ITL\L :IEETUG COr:::'~ITTI::E The report on the Annual l!eeting Cornnittee uas prepared by its Chairman, ~-:r. F. ~-!. !3arton. :lr. Darton \-las unable to attend the Thursday session and his report uas read '!:>y :;r. I!oss Kettering of that Coi"Jllittee. I'lease see Exhibit 14. The report in essence recommended a return to Innisbrook for the June 1976 cieeting. Upon motion duly made, seconded and unanimously passed it ~.ras RESOLVED: That the report of the Annual !Ieeting Committee be accepted as tlritten. The Secretary r-ras directed to nake arran~er.J.ents to return to Innisbrook for the June 1976 ::eeting. D.'..'f!\ BOOK A!:D TEC!UTICAL COl:!ITTTE2 I~r. ::oalli, Chairman of ti1e Data Jool: and Technical Cor:1Mittee presented this report. ?lease refer to Exhibit 8. The Chairman 1 ::; report covered items such as the nral:e !Hock Identification Catalog to be pu~lished in 1975, and some changes in cover design for the Institute 1s catalogs. The report also covered the listing of imported vehicle brake shoes in the Brake Shoe Catalog and possible up-dating of a ne~.r Industrial Friction Haterial catalog. It was pointed out that Institute bulletins uould in the future be published on both sides of the paper to reduce cost of printing and mailing. ::r. :\oalli also reoorted that the passenger car drum brake lining consolidation program had been discontinued based on the coMplexity of the r;mrk. A question arose concerning the metric system. ~rr. lloalli indicated that the metric system has been discussed at a cor.1mittee neeting. The -problem is ~1hether to start entering metric belm.r the English units in the numerical section of the Automotive Data Book and Supplement. There ~-ms a question asked as to hmr to phase in metrics. The Board of Directors directed the Data Book and Technical Committee to study the problem of conversion to metrics and the inclusion of metric data in the catalogs. FMSI 02224 ~-inut9S of t~~~ i'.rmual ~:eeti:'.;; -1> _; \\'!..; F; :, j ) 19 7J rcvievl a prozrar::. for .:1r: :.:::.c:~~:-:.~1 '?rictio<, ''""t"'ri<::ls C1>.talo5 '~nd report 0:tcl~ to the Jirectors o:.: t::c sco:Je anci r;lanr..in-:: necessary ior such ar. underta~dng. The stucy of ::12t:rics and the Inclustric.l Fr~i_ction ~:._..,_terial ::a talog 1vill be agencn i ter.JS o. t t~1e next :)ate: Joo~: and ~ec:n::i.cal ::or:uni t tee !'leeting. ::r. ~ioall:!. poir:te::! aut in nis report that t:~e cover on the cat a loss hac beert C.esie:1e~~, years c.zo and ~-:as basicallv rc!'laine:! r ..;ch the sa2e. TI>e Cor..nittee 1.:1.:ed t:1e :!.::lea of li!1e 1raclings on the covers as shmm on t!-le .:.r~:e Sloe::: L::;::ntificatior~ :atalo~ ::1nd on t~e :Srake ::10e I:lentification Ca.talo:;. It 11as recom.rLende~ that lin2 r.!.ra~7inzs a'l)pear on all ca.talo,::s, In response to 2. question, t'1e Secretary i.:l'iicG.ted that :1e hcpetl to have a Jra~:e 3loc:: Ide:'.ti::icatior. Catalog printcci 'Jy 'Jctober lS 7:. In i.:r. l.:oalli 1 s re?ort he discussed be point t::at so.-:1e :;;rinters are reluctant to ::,id or: In3titute C.r>.talOR:S because of the multinle oilling. A ~;rief survey m1::: ~ace on t::e ,-,ossi'uility of .::eln Incorporated distributin2 co:t:1lo::s for tl1e Institute, :;ut it 1:as not felt that t;1is ~~as the solution to the ~ulti:'L: ~.. illing p~~o.:.lem. It ~;as pointed out t:1at if the Institute crere to ~ay cash L1 advance they miz:.t ~et a better pric~ for the catalc~s. ':o'->ld t}lis ~-~ 2.:1 adva:1.tace to t~;,a members? Currently Fe !lave tt.1o printers (::;uccess, :::c. and !.'rv~c~dle !~itho) biddins on our catalogs. TI1e S~cretary ?Ointed o..1t t~u1t ~7e expect to have two additional printers tiddinz on our catalo3;s for tne next issue. It uas sug~estecl that t:1e Institute rni9;ht (!uararo.tee payuent for c:1e orders. The Secretary po:f.nted out that the only collectior.. ~'robleMs ov~r t'.1c ~ast sever~! vears have been 'olith T'.erional :.:enbers. Sometimes a .:lif:Ziculty on collection can be a dis?ute be~;eeu the ~Xi"":.ter ,rit~1 a 7 '.e-:1'0sr claiminc- that they did not: receive full ship!'lent. It :.Tas sug::;~sted t~1at: the !:nstitute conside~ ~iancUin"' all t!1.e billing ancl ea!~.n<:" payment to t::,e pril:ter cirectl y. 'h.<en the next ;)at a took is ?rinted > t!1e '_Jrinter ~Till. ;.,e as!<"~d for t<ro Lids: (1) \!iti1 nulti?le billing noH in effect. (2) T,.lith i)ill:b~ to the Institute only Pith s~Lipnent to the various mer.lbers . .c'he Sec-retary eras di"L"ected to try this anc1 re?Ort en cmy price advanta~e fro!'\ such biddin3 procedure. Cpon ~otion duly nade, seconded and unanimously passed it '!as :-.SSGLV2D: .r.'lat the report of the Data I:oo1< and 7echnical ~omnittee be acce~tcd as uritten. ::'ur t~1er t.~~ ~ ::::rwber!;;::.ip :!.3'-.sd to e~~;:_Jress their t 11::m!:s to the c::u~i.r!"l.:l.n, -:r _,:oalli, for :! jot 'Tell :.:one. A l'lember S'.lf~estec t'1at at future annual meetin?.s a }Olf tournament be gponsored ::y the Institute. )n a show of hands. tuelve members indicated that t~:8y '7oul~ Je ~-n favor oi: such a ~olf tournament. A suggestion ne..s !'laJe t:.at 7 ~r. 'cessier chair an unofficial cot'!nittee to organize t'lis golf tournanent. 'r. ~:easier accepted tl1is responsibiiity and thanked the ne!'l1ers for tl1e honor ~estoFed u[)on him. A golf tourn~'":'<mt ~-rill rcP. a feature of t:1e :\nnual c:eeti-:-,~ in June 1S76. FMSI 02225 -i~1..-~tes o~ :::.-_ ~ .-".::m.ual ~.eetir.g ' l ..'.i.~ ~'r. Clesg ?ointed out t.;at Le :c.o:cs for;a;:d or,.,ai!i3atior_ of C.~l'i.s :eetinf, including the use of "''"''2 l:ags and seatL':: arra~~e:~ents at t:1e '..Janquet, had '..Jeen decidec by the Joard of ~irectors b<::3ed on co:1!1ents after the June E74 : ~eetin> .~e felt that crj_tizicm of the earlier ::,eeti:-,r; Pas constructive end that the c1~an:.es :=vident at t:1e 1975 ::eeti::~ indicnteC: the .1illin.~ess of the ~ffic:::rs 1:.nd Jir.ectors to respor:.::: to pro~ler.1s t!-J.at .'ire called t~ thei~ s.ttention. I!' particular he uis.1ed to ex;>recs a vote of thanl.'l to those !"~s.,or:.::;Lle for this reeting. :'b.e modif:.ed :'.nerican rylan at this ;.:eeting -;~as discussecl. It uas poir.tec o:.Jt that "7 j_th the ::AP .::1e Institute is credited for t!1e individual's basic Eood all"Yrance for the hanquet. It ~ras su3gsted that the :AJ? ~:e continued as it helps keep ::embers at the meeting site. TBLEG::'.X ~ Tl) i~. DALY f,i-ID ~:r. Co!:.way sug:;.:!sted t!1at a telegram be seat to .ir. James rcGovern. former President and long time ~)irector of the Institute u!.1o retired a few years ')ac!:.., and to ,~r. Al .Jaly ;'lho uas ocr Treasurer for several ~rears, and suffer2d a stro~e tl:w ye:1rs a{>.O. A telegra;n ~.Youlc be sent to 'rish them \!elL Upon ::!Otion duly :naC.e, seconded and unanimously 11assed it r:as ~..::s_Lv::~-,: ';:':Oat telegrams of appreci.:J.tior:. ~. e sent to :;,.ssrs. ~:csovern ar,d Daly. 'i'he text of the taler,:ram draft~:d uas as follo~lS; 'DT:.ErG ::'HE Atii.JUAL ~1:::ET!~1G ::F FESI .::m ~:E: iBi::P.S1:IP V1T'SD 10 'i';) ~ 'l\~ s::~:D TiaS TZLEGR!J1 JF APP?.EC!.\TION TJ YJ7..' \JI;') Lw:::: ~ERVED r: ;r-::1 suc:i .cz:rcATI::"I!'. "TE .ru.L mss You." 7elegr~lll3 ~'1er::o sent by the IP.stitute to ;:r. ilcGovern and 1:r. Daly. T:1ere oein~ no furtlu~r !Jusiness called to t!-!e ettention of the ~:ernoership, upon motion duly made, seconded and unanimoulsy ;:>asseJ it 1as ?.ESCV.YED: To edjourn .\j ourned . lG ; 30 , " . E. \L :Grislane Secretary FMS\ 02226