Document NM2274NqeYLoMjKbyKzrXNvV

FRICTION MATERIALS STANDARDS I1ISTITUTE, INC., EAST 210 ROUTE 4, PARAMOS, NJ 07652 MINUTES OF THE ANNUAL HEKDER3IJIP MEETING of the FRICTION MATERIALS STANDARDS INSTITUTE, INC. Wednesday end Thursday, June 15 snd 16, 1983 at Sawgrass, Ponte Vedra Beach, Florida ACTIVE MEMBERS PRESENT REPRESENTATIVES Abex Corporation Bendlx Corporation Brassbestos Manufacturing Corporation Certified Brakes Deico-Moraine Division Guardian Corporation Uuturn Corporation P. T. Brake Lining Company tl. K. Porter Company Raymark Corporation. Reddaway Manufacturing Company Thickol Corporation Virginia Friction Products S. 1C. Wellman Corporation tvheeling Brake Block Mfg. Co. Robert E. Nelson, President Francis E. Kessler William Simon, Treasurer Larry Mintman Donald L. Emrick Norman Morse Robert H. Nelson Stuart Comins, Vice President. Larry Belans (6/15) Donald J. Testa (6/15) John M. Moore John P. Gallagher W. Max Sleeth Gordon A. Carrigan Lee Burgess OTHERS PRESENT Automatic Metal Stamping Co. (Licensee) Canparts Automotive Int'l (Regional) ;' Cougar Automotive Corp. (Regional) Delcc-Moreine Division P. T. Brake Lining Company Reddaway Manufacturing Company Legal Counsel . Friction Materials Standards Institute Robert J. Anderson Andy Gagnon Alex Taborl (6/15) Fred Yost Steve Doyle Ben Kublin F. William Barton Jame3 Wheelus David F. McBride Edvard VT. Drlslsne, Secretary Hr. Nelson, President, called the meeting to order at 1:30 PH, June 15, 1983. As the first order of business, Mr. Nelson called for a roll call. MINUTES OF MEETING OF JUNE 16-17. 1982 The minutes of the Annual Membership Meeting held June 16-17, 1982, had bean distributed. Wo corrections were suggested and a Member moved that we dispense with a reading of the minutes. Upon motion duly made, seconded and unanimously passed. It was: RESOLVED: To accept the minutes of the June 16-17, 1382. meeting as written. FMSI-0390 FMSI 02058 T Minutes of the Annual Membership Meeting -2- June 15-16, 1983 PRESIDENT'S REPORT Ur. Nelson, President, presented his report. liefer to EXHIBIT 1. Mr. Nelson reported on the relative stability of the Institute and its Menibers during the recent difficult years. He noted such accomplishments as the completion of the consolidated 1982 Automotive Data Book, selection of an Institute logo, changes in Legal Counsel, amendment of the Institute By-Laws, and changes on the Board of Directors during the fiscal year. Mr. Nelson concluded his report emphasizing the difficulties facing the Industry with asbestos-related problems. Upon motion duly made, seconded and unanimously passed. It was: RESOLVED: To accept the President's Report as written. REPORT ON ACTIONS TAKEN BY THE BOARD OP DIRECTORS The Secretary reported on actions taken by the Board of Directors since the 1982 Meeting. The first items reported are those that took place by nail ballot since the June 1982 lieetlng. The next items are those that took place at a special meeting of the Board of Directors on March 1, 1983. And the last Items are those covered at the Board of Directors meeting on June 14, 1933. Some of these items may be covered more completely In Commit tee and Officer reports but were outlined at this time to keep the Member ship Informed. The Board of Directors approved and recommended admission of Csnparts Auto motive International, Limited as a Regional Member. The Board approved the name change on the Institute records of Raymark Corporation (formerly Raybestos-Manhattan, Inc.}. The Board approved the Institute's assumption of medical Insurance payments >for Miss Ray of the Institute. The Board filled two vacancies on the Board of Directors. Mr. Bob Mlghton of Certified Brakes was selected to complete the unexplred term of Mr. Bob Anderson to June 1983. The Board selected Mr. Stuart Comins of ?. T. Brake Lining Company to serve a portion of Mr. Dave Cunningham's term on the Board to June 1983, The Board selected a new logo for the Institute. The Board voted to terminate the Regional Membership of Itapsa, S.A. de C.V. of Mexico for failure to pay Its Membership Pee. Subsequently, the Board voted to reinstate Itapsa as a Regional Member when It made a partial payment of the fee. The Board voted to terminate llr. Bob Gorman as Legal Counsel for the Institute. The Board voted to approve amendment of the Institute's By-Laws, Article VII, Counsel, which change was later ratified by the Membership. The Board voted to approve selection of the Hackensack, Hew Jersey Firm of Harwood, Lloyd, Ryan, Coyle and McBride as Institute Legal Counsel. A special meeting of the 3oard of Directors was called for March 1 In Detroit. This meeting was called to review two Members' concerns in the asbestos litigation area. Mr. Comins of P. 1. Brake Lining Company had recoimaendations on product liability and insurance, and Mr. Harris af Car lisle Corporation waa seeking Institute initiatives on exchange of Informa tion in the asbestos litigation area. The Board approved extending an invitation to Frank B. Hall, Insurance Brokers, to address our June Meeting. Frank B, Hall Company subsequently declined an invitation extended through Mr. Comins to address the Meeting. The suggestions for exchange of Informa tion in the asbestos litigation area were shelved after Mr. Harris reviewed FMSI 02059 ilinutes of the Annual Membership Meeting -3- June 15-16, 1983 this question and declined to pursue the matter further. At the March 1 meeting, the Board resolved to have the Institute subscribe to the Asbestos Litigation Reporter, and to initiate a Credit Reporting Service along the lines discussed at the June 1982 Meetings. At the June 14, 1983 meeting of the Board, Committee and Officer reports were read and approved. The Board voted to recommend acceptance of the application filed by Freno, S.A. for Regional Membership In the Institute. The Board voted to terminate the Regional Membership of Duramax, S.A. of Mexico due to its failure to pay Its Membership Dues. The Board voted to follow up with Colfrlccion, Ltda. of Colombia on its accounts and fees re ceivable, but to not service this account further unless payments are made. The Board established guidelines for taking action on Member Accounts as they fail behind in their payments. If a Regional Member is two payments behind (2 Quarters) they will not be shipped prints, bulletins or catalogs. Also, if delinquent, the Office will write collection letters with copies to the Board of Directors. The Board voted to recommend acceptance of the recently received application for Regional Membership filed by Artazcoz, of Buenos Aires, Argentina. The Board of Directors approved the establishment of an account with Merrill Lynch for their Merrill Lynch Ready Assets Trust. In reviewing the Data Book and Technical Committee's work, the Board asked that Committee to consider two changes when the next block identification catalog is printed: (1) Include heavy duty disc pads in next catalog, and (2) possibly establish a new number series (other than 700 and 7000) for heavy duty disc brake pads. Also, the Board asked that the Membership discuss some of the Data Book and Technical Committee recommendations at Its meeting. The Board asked the Health and Environmental Affairs Committee to respond to any 0SHA proposal for possible changes In the permissible exposure levels (PEL) for asbestos in the work place, ahould such changes be proposed. In reviewing the Annual Meeting Committee report, the Board reaffirmed its . intention to hold the 1984 meeting at LaCosta in Carlsbad, California. For 1985, it made its first choice the Dunfey-Hyannis Resort in Hyannls, Mass achusetts, and its second choice the Carson Inn-llordic Hills Resort near O'Hare Airport. The Directors also asked the Secretary to check up on the health and retirement status of Miss Duschek, former Secretary of the Institute. And lastly, the Board asked that the Membership, at its meeting, discuss and review a proposal to request the government to establish a date after which asbestos-containing friction materials can no longer be manufactured in the United States. This report was made as a matter of information at the start of the Membership Meeting, and did not require a resolution of approval. TREASURER'S REPORT Mr. Simon, Treasurer, read this report. Refer to EXHIBIT 3. The Treasurer reported on financial data projected to June 30, 1983, baaed on a trial balance taken on April 30, 1983, with llay and June Income and expenses estimated for the projection. This report projected 1982-83 excess of income over expenses of about $6,770. This was after provision FMSI 02060 T Minutes of the Annual Membership Meeting -4- June 15-16, 1263 for the Environmental Affairs F.e9erve, which the hoard set up at the June 1932 Meeting. In addition, it was noted that expenses were dose to budget, but that there were some variances, and these were analyzed. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the Treasurer's Report as written. As pointed out at the Directors Meeting on June 14, the income for 1982-33 should increase by about $3,000 over that projected in the report because of the unanticipated payment by Mex-Iiestos on its account. In response to a question, the Secretary advised that the books of the Institute are audited yearly by a Certified Public Accountant. The Insti tute has been given clean opinions on its financial statements over the past 35 years. MEMBERSHIP COMMITTEE REPORT Mr. Stuart Comins, Chairman of the Membership Committee, presented this report. Refer to EXHIBIT 2. Mr. Conins reported on the changes in Membership during the 1932-33 fiscal year. The changes were dependent on possible termination of certain Latin American Regional Memberships. It was noted that Active Members would re main unchanged at 20. Licensees would remain unchanged--addition of Brelner, loss of Misconsin Gasket--at 13. And, depending on terminations, Regional Members would decline from 21 to 19. However, three actions taken between the time of preparation of Mr. Conins' report and the Board meeting, changed the expected number of Regional Members. Iiex-bestos paid its delinquent account. Applications were re ceived from Freno, S.A. of Lima, Peru and Artazcoz, S.A.I.C. of Buenos Aires, Argentina. The Secretary reported that an application for Regional Membership was re ceived by the Institute from Freno, S.A. In May 1983. A bulletin was issued to the Membership advising of this application, along with background Infor mation. The application had been reviewed by the Membership Committee by mail ballot, and the Committee recommended acceptance of the application. The board of Directors voted at its meeting to accept the application filed by Freno, S.A. of Lima, Peru. The iiembers were advised that they could vote on the application at this time. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the Freno, S.A. application for Regional Membership in the Institute. The Secretary advised that the Board of Directors had also voted on an application for Regional Membership filed by Artazcoz of Buenos Aires, Argentina. This application had been received at the Institute Office on June 10, the last business day before the June meeting. Mr. Alberto Mahan had been to the Institute Office and left a completed application as well as his personal check for the US $2,003 required with the application. FMSI 02061 Minutes of the Annual Membership. Meeting -5- June 15-15, 1SG3 This application had been circulated at the hoard Meeting* 'Mle Artazcoz Is located In hueno3 Aires, it also has factories in uru.ruary and Ecuador. They had owned a facility in Peru but that was nationalized. A few Members had contacts with Ur. Malian and were aware that his facility was manufactur ing friction materials in commercial quantities and would be eligible for Regional Membership. Upon motion duly made, seconded and unanimously passed, it was: R2G0LVML; To accept the Artazcoz, b.A.I.C. application for Regional Membership in the Institute. It was stated that this acceptance was conditioned on the premise that Hr. Kahan's personal check cleared satisfactorily. iavssiianrr advisory coijgTTEE report Mr. Barton, Chairman, read this report. liefer to EIGILIT 4. This report noted that Institute Investments should Increase from about $175,300 on June 30, 1S32 to about $190,000 on June 30, 1983. This in crease reflects the projected net income for this year plus the establish ment of a Reserve for Environmental Affairs in amount of about $C,COO based on resolutions at the June 1332 meeting. Investment Income would increase from approximately $17,500 to $22,000 for the 1932-83 fiscal year. This increase came primarily from higher invest ments in interest bearing U. 0. Treasury notes, and lower investment in the Money Market Trusts. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the report of the Investment Advisory Cocmlttee as written. 3UDGET COMMITTEE REPORT Mr. IT. M. Sleeth, Chairman of the Tudget Committee, read this report. Refer, to EXHIBIT 5. The Budget Committee Report recommended a 1933-34 Expense Budget of $110,590. Individual items in the expense budget were examined and budget figures assigned. The approximate $3,000 increase in the expense budget over the 1982-33 budget was caused primarily by larger than normal in creases in the Provision for Bad Debts, Dues and Subscription Expense, and Insurance Expense. The expense budget did not include the approximately $3,000 Provision for Environmental Affairs established at the June 1932 meeting. Over half the Expense Budget is for Salaries. Upon motion duly made, seconded and unanimously passed, it was: REG'JIVED: To accept the Budget Committee Report as written. ' Based on action taken by the Board at its meeting, the Salaries figure in FMSI 02062 T Minutes of the Annual Membership Meeting -6- June 15-16, 1983 the budget was increased by $2,500. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To adopt an Expense Budget of $113,090 (a $2,500 increase over the proposed budget for Salaries) for the 1933-84 fiscal year. FEE FORMULA COMMITTEE REPORT Hr. Rob tielson, Chairman of the Fee Formula Committee, presented this report. Refer to EXHIBIT 6. The Fee Formula Committee Report summarized the Humber of Members in each classification and the nunfc.er of categories in which Active Members and certain Regional Members participated. This data was then summarized to indicate the projected fee income based on the 1982-83 fee schedule. With Fee Income projected as $97,000 at the 1982-83 rate. Investment Income pro jected at $23,775 and a preliminary expense budget of $110,590, the 1982-83 formula projected an excess of income over expenses while allowing for an $8,600 provision for Environmental Affairs. The Chairman recommended that the 1983-34 fee formula remain unchanged from the 1982-83 formula. . That formula is: Active Members and Regional ''embers with Active Member rights, a basic fee of $1,300 with a category fee of $700; Regional Henfcers (regular) a fee of $1,600; Regional Members (Association) a fee of $2,600; Licensees a fee of $600. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED; To adopt the same fee formula for 1983-84 as was used for 1982-83. Active Members and Regional with Active Member rights: Basic Fee $1,300; Category Fee $700; Regional Member (Regular): Fee $1,600; Regional Member (Association): Fee $2,600; Licensee: Fee $600. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the Fee Formula Committee report as written. ilOHIMATING COMMITTEE REPORT Hr. Fran Messier serves as Chairman of the dominating Committee. A written report is not in the Report package. The Chairman noted that Directors Gordon Carrlgan, F. William Barton and Robert E. ilelson will be completing the first year of their two year terms on June 30, 1983 and they will continue as Directors to June 30, 1984. There is one Directorship open for the one year period until June 30, 1984. That Is the Directorship held by Stuart Comins who replaced Ur. David Cunningham as a Director during the year. The other three Directorships FMSI 02063 Minutes of the Annual Membership Meeting -7- June 15-16, 1SC3 are for two year terms until June 30, 19&5. Those are the Directorships held now by Francis 2. Ilessier, John ?. Gallagher and Robert Highton. The Chairman placed the names of Hr. Francis 2. Messier, Bendix Corporation, Mr. Donald J. Testa, Raymark Corporation and Ur. Robert Highton, Certified Brakes in nomination for the two year terms until June 30, 1985, and he placed the name of Mr. Robert E. Nelson of iiuturn Corporation in nomination for the one year term until June 30, 1985. A recess was called at this point to allow the Members to discuss the nomi nations. Upon end of the recess, Mr. Melson, President called for nomina tions from the floor. L!o nominations were made from the floor. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: That nominations for the Board of Directors be closed. The Secretary was directed to cast one ballot for the election of-Mr. Francis E. liessler, Mr, Donald J. Testa, Mr. Robert Mighton and Mr. Robert 3. Nelson to the Board of Directors. The Secretary advised that the ballots had been so cast. The President advised that with the election of these four Direc tors that the Board had the required seven Meofeers. HEALTH AND ENVIRONMENTAL AFFAIRS COMMITTEE Mr. Jim Armstrong of Bendix is Chairman of this Committee. Mr. Messier read the Chairman's report. Refer to EXHIBIT 9. Hr. Armstrong reported on activities taken by the Committee and the Institute since the last meeting. This included a review of a Mount Sinai report on a lilOSH contract entitled "Investigation of Health Hazards in 3rake Lining Repair and Maintenance Workers Occupationally Exposed to Asbestos." This report was unable to show an excess incidence of asbestos-related diseases in the workers studied. The Institute also distributed guidelines on re peated OSHA violations, forms for compliance with EPA requirements for asbestos reporting, and an up-date on progress of compensation legislation for asbestos diseases. In summary on compensation, there has been no actual progress on the legislative front. ' Hr. Armstrong reported on OSUA's plans to accelerate its schedule for re vision of the permissible exposure levels (PEL) for asbestos. In accord ance with OSHA's announced plans, there should be an advance notice of proposed rulemaking early this Summer. The Directors at their meeting con curred that if OSHA does come out with proposed- rulemaking in this area that the Institute should respond. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the report of the Health and Environmental Affairs Committee as written. A Member advised that Mr. Bohrer, who was listed on the roster of this Committee from R. K. Porter had retired. FMSI 02064 iilnutes of the Annual Membership Meeting -S- June 15-16, 19S3 PRODUCT LIABILITY INSURANCE While this was an agenda item, it was explained that an invitation extended to Frank 3. Hall, international insurance brokers, was not accepted and there would be no formal agenda item on product liability insurance. PP3LIC RELATIONS COMMITTEE REPOST Hr. William Simon, Chairman of the Public Relations Coianittee, read his report. See EXHIBIT 10. ' llr. Simon reported on the only Institute press release in 1932-03, the election of Officers at the June 1982 Meeting. This release appeared in several automotive trade magazines, and IIr. Simon particularly paid tribute to Hr. Stuart Comins whom he described as a bastion of productive intensity in forwarding several press releases to the Committee. Ur. Simon also noted completion of the selection of an Institute logo during the 1982-83 fiscal year. !Ir. Rob Welson said that the Uutum agency would be pleased to circulate Institute public relations releases if that would help get wider circula tion. The Secretary was asked to contact Mr. Rob Nelson when the next press releases are to be sent out. Upon motion duly made, seconded and unanimouely passed, it was: RESOLVED: To accept the report of the Public Relations Committee as written. ANNUAL MEETING COMMITTEE . Hr. Jay Moore, Chairman of the Annual Meeting Committee, read this report. See EXHIBIT 13. In summary. Hr. Moore recommended that the Institute not return to LaCosta in 1985, but select a site in other areas--primarily the Northeast or Midwest. The sites recommended were: (1) Radisson Feracroft, Danvers, Massachusetts, (2) Dunfey-Hyarmis, Hyannia, Massachusetts, (3) Carson Inn, Itasca, Illinois, (4) Abbey on Lake Geneva, Lake Geneva, Wisconsin and (5) Inn of the Mountain Gods, Hew Mexico. Ur. Moore noted in reading his report that based on decisions made at the earlier Board of Directors meeting that some of his recommendations were now history. The locations chosen as Humber 1 (Dunfey-ttyannis) and Humber 2 (Carson Inn-ilordic Hills) had not been visited. Hr. Moore indi cated that he would look them over as his time permitted. The Directors had voted against selection of Ferncroft Country Club in Massachusetts (financial problems-foreclosure), The Abbey at Lake Geneva, Wisconsin (no golf course on premises) and Inn of the Mountain Gods in Mew Mexico (accessibility). A Member stated that the Dunfey-ilyannis course was not a Championship Course, but was an Executive par 3 Course. Mr. Iloore and Hr. Drislane will check on the Dunfey-Hyannls and Carson Inn facilities. FMSI 02065 Minutes of the /jr.nuai Membership leeting -9- June 15-16, 19C3 Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the report of the Annual Meetihf Cornoittee as read, subject to the decision on the 1935 selec tions made at the Board of Directors meeting. BRAKE PERFORMANCE STUDY COMMITTEE Hr. Wayne llatthes of Abex is Chairman of this Committee. Mr. liaison, al3o of Abex and former Chairman of the Committee read this report. See EXHIBIT 7. The report noted the revision of Regulation V-3 by the Vehicle Equipment Safety Commission, in line with Institute recommendations for granting V-3 approval where certain linings have friction ratings below ED. The report noted the demise of the V2SC subsequent to this revision. The changes at xuUiVA, where the Equipment; Approval Program was replaced with a Safety Equipment Compliance Program, were discussed. The Chairman conducted a poll of four manufacturers who ail Indicated they were continuing with the AAKVA's Compliance Program. The chairman reported on formation of a task force called the Truck/Trailer Brake Research Group... This group was chaired by Bid Williams of WHTSA, with participation by .American Trucking Association (ATA), Motor Vehicle Manufacturers Association (MVMA) and Truck Trailer Manufacturers Associa tion (TTI1A). The problem is with compatibility of brakes between the towing vehicle and the trailer, llr. Williams will be contacting the Institute for input. . In discussion on this Group chaired by Sid Williams of NIITSA, Mr. Nelson Indicated that the Institute would try to work with them, but at this point is waiting for further information of what the Group expects of the Institute. As regards the AAMVA Compliance Program, it was stated that Ohio and Massachusetts are the only States to which data can be sent di rectly for certification. Others g through the AAMVA, and for most manu facturers the filing through AAMVA is more convenient. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the report of the Brake Performance Study Committee as written. DATA BOOK AND TECHNICAL COMMITTEE lir. Gordon Smith served as Chairman of this Committee, replacing Mr. Phil Grim of Abex who retired in May 1963. lir. liessier read Hr. Smith's report. Refer to EXHIBIT 8. This report noted the change in Chairmen, and the changes in Committee menfoershlp. The report noted final completion of the consolidated 1982 Automotive Data Book, which included brake shoe identification information in the Data Book for the first time. The report covered Committee resolu tions on improvement of the Automotive Data Book. These included prominent section numbers in the catalog to enhance ease of use, a new color green for the cover to distinguish it from earlier catalogs, the addition of drawing numbers at the top of pages in the illustration section, use of the - new FMSI logo on the cover and a recommendation to maintain fourteen years FMSt 02066 Minutes of the Annual Membership Meeting -10 June 15-16, 1923 of model listings in the catalogs. In addition to resolving several specific questions, the Committee voted to proceed with publication of a 1383 Drake Block Identification Catalog. The Secretary advised that at the Hoard Meeting on June 14, 1983 the Directors had concurred with the Committee's recommendations on revisions to the Automotive Data Book and with the go-ahead with the 1383 Brake Block Identification Catalog, but had made two recommendations on future Brake Block Catalogs. These recommendations were to be forwarded to the Committee for consideration and were: (1) Add heavy duty disc brake pads to the content of that Catalog, and (2) Consider assignment of FtlSI lumbers outside the 700 and 7000 Series for heavy duty disc brake pads. The Members concurred with the Committee report on improvements to the Auto motive Data Book. Hr. Dublin suggested that the illustration section for disc brake shoes would be of more help if the drilling patterns for the steel were shown on the illustrations. The Secretary stated that a similar recom mendation was made a few years back (June 1981) and was referred to the Data Book and Technical Committee. That Committee added lining nurbers in the illustration section but declined to add the drilling on illustrations for several reasons that were noted in that Committee's meeting minutes. The Secretary was advised to refer this recommendation to the Committee for re consideration . Upon motion duly made, seconded and unanimously passed, it was: RESOLVED; To accept the report of the Data Eook and Technical Committee as written. HISTORICAL SALES REPORTING Ilr. Drislane read his report on Historical Sales Reporting, See EXHIBIT 12. The report for calendar 1982 indicated improved consistency of reporting over that of the prior year. There was relatively regular reporting by 19 Members during 1982. There were no criticisms of the data during the year. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the report on Historical Sales Reporting as written. ELECTION OF OFFICERS TOR 1983-84 The Membership was advised that the 1982-83 Officers were re-elected by the Board of Directors to serve during the 1983-84 fiscal year. They were: Hr. Robert E. Nelson, Abex Corporation - President Mr. Stuart Comins, P. T. Brake Lining Company - Vice President Mr. Ullliam Simon, Brassbestos Manufacturing Co. - Treasurer Ur. Edward U. Drislane, Friction Materials Standards Institute - Secretary OTHER BUSINESS The first item under this part of the agenda is a proposal that the Institute go on record as indicating that its Members ere willing to stop the manufacture FtoSl02067 linutes of the Annual Membership Meeting -11 June 15-16, 1933 of asbestos-containing brake linings. Such action would be dependent on parallel action to discontinue the Import of asbestos-containing brake linings. It was asked If this proposal was strictly for asbestos^containing brake linings or did it include all asbestos-containing friction materials-- clutch facings, for example. The Toxic Substances Control Act, which is administered by the Environmental Protection Agency has provisions which would permit a complete ban or a partial ban on the manufacture or sale of any substance which might cause an unreasonable risk in the environment. The E?A could, in effect, ban asbestos In brake linings and not in clutch facings, or take other action to reduce exposure to asbestos, if it is con cluded that asbestos In friction materials presents that unreasonable risk. It was suggested that the Institute as a group would Indicate that its Members would be willing to discontinue the manufacture of asbestos-contain ing brake linings. Whether clutch facings and all friction materials con taining asbestos would be included was cot decided. Any such action on the part of United States manufacturers would have to be supplemented by legisla tion or regulatory action to ban the Import of asbestos-containing brake linings. One llember stated that he had a strong aversion to asking Govern ment involvement on any issue. Mr. Comln8 stated that his rationale behind banning the manufacture of asbestos friction products would be that an unsolicited ban on the sale of these products would Involve a considerable Inventory problem. If the ban were to be on the sale of materials, considerable losses could develop In attempting to dispose of the Inventory before the effective date. One Member pointed out that his company has adopted and will soon announce a policy that they will not manufacture asbestos friction products in Worth America by the end of 1984. Other Menfcers have been quoted to the effect that they will be out of the asbestos friction product market In one or two years. As some Hembers are already non-asbestos and others are planning the discontinuance of asbestos friction materials, Mr. Cosdns stated that It would be a positive move on the part of the Institute to go on record In favor of a ban on the manufacture of asbestos friction products by a certain effective date. A question was asked as to how the Institute would go on record. Would it be by a proposal to OSUA or the EPA? Bow would one stop the manufacture elsewhere and stop the import of materials at the border? It was suggested that any such action would either require an ad hoc committee be established or that the Institute draft any position through the Health and Environmental Affaire Committee. A suggestion was made that a letter ballot be sent to the Members to deter mine if such a move had the Members' support. Two major substitutes other than the steel fibers in the semi-metallic linings are DuPont's Kevlar and (X*ens-Coming's fiberglass. Could these suppliers, and others, fill the friction materials manufacturers needs? These substitutes have been pro moted and tested for some time, and no one friction material manufacturer would have a competitive edge. A Member commented that when he attended the Government's Workshop on Asbestos Substitutes In 1980 that he told the group that there is a signifi cant difference between removing asbestos from friction materials used on high-volume over-the-road vehicles and low volume custom-made friction FMSI 02068 Minutes of the Annual Membership Meeting -12- June 15-16, 19S3 articles for the U. 3. llavy and others. In addition, he.stated that there is a real difference in the processing of asbestos substitutes in drum brakes as compared to disc brakes, lie contended that the full substitution for asbestos in off-highway applications is more difficult than others may imagine. He noted that technology does not yet exist for fabrication of non-asbestos friction products for use in applications such as aircraft carriers, elevators, and the like. A Member pointed out that in the off-highway market, the manufacturer or distributor does not know where the off-highway materials will be used. Mho would pick up the product liability responsibility where a non-asbestos article was used in some application currently serviced satisfactorily with an asbestos type friction material? He continued that as long as he could legally market asbestos type friction materials he would continue to do so. It was stated that this question does not have a simple answer. As manu facturers introduce non-asbestos friction materials they are on record that substitutes are available. One Member stated, that action of this sort by the Institute could open up other problems and he suggested that the test of whether asbestos friction products would survive could best be decided in the market place, when the user sees the cost and the reliability of the non-asbestos product. A Member-stated that a decision need not be made at this meeting and he asked that a mall ballot be sent to individual Members. This ballot would ask if the Institute should go on record recommending a date be established to discontinue the manufacture and import of asbestos-containing friction materials. The ballot would take into account discontinuing by product line (brake linings, clutch facings, off-highway). It was stated that very care ful wording would be needed for any Institute position and that the Health and Environmental Affairs Committee or other committee would prepare the position paper. A Member reiterated his position that a product that does the job must be available before any banning of the manufacture of asbestos brake linings could take place. Upon motion duly made, seconded and passed with 11 in favor and 2 opposed, it was: RESOLVED: That the Institute poll its Members by mall ballot to determine if it shall go on record with the Government in favor of setting a date to discontinue the manufacture and import of asbestos-containing friction materials. *** ** Mr. Moore suggested that the format for the Membership Meeting could be im proved by having coffee available on the Thursday get-away date. It would help attendance and get the Thursday morning meeting started on time. The Secretary stated that he would add coffee to the Thursday morning session at future meetings. ***** FMSI 02069 Minutes of the Annual Membership Meeting -13' June 15-16, 1983 A Member Inquired about the health and status of Hiss Duschek, the former Secretary of the Institute. The Secretary advised that this had been dis cussed at the Board of Directors Meeting on June 14, 1983. Hiss Duschek has failed considerably being forgetful and disorganized. The Secretary had been asked by the 3oard to check into Hiss Duschek's current health and status. ***** Hr. Dorman Horse questioned the selection of nominees for the Board of Directors. In particular he referred to ARTICLE IV, DIRECTORS, of the Constitution. This section calls for the Directors to be representative of three classes: (1) Two from Active Member with fee payable in top third of bracket of annual fee; (2) Two from Active Member with fee payable in middle third of bracket of annual fee; (3) Two from Active Member with fee payable in lowest third of bracket of annual fee; A seventh director shall be selected from the Industry at large without limitation by fee bracket. Hr. Morse pointed out that the actual makeup of the Board of Directors for the 1983-84 fiscal year was 1 Director from the lowest bracket and 3 Direc tors each from the middle and highest bracket. He added that the lowest fee bracket had the highest number of Active Members, with 10 Itembers or 50Z of the Membership. The highest fee bracket had 4 Members or 2OX of the Membership, and the middle bracket had 6 Members or 30% of the Membership. He stated that the lowest fee bracket had the most number of Members but the least representation on the Board. In accordance with the Constitution, the election of these Officers could be invalidated by vote of a majority of the 1-embers present at this meeting. Hr. Morse referred to the Validity section of the Constitution and indicated he would not move to invalidate the earlier election. He called upon the Dominating Committee to select nominees in line with the ARTICLE IV section of the Constitution at future elections, Ho further action was taken by the Membership. ***** There being no additional business brought to the attention of the Member ship, upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To adjourn Adjourned at 10:10 AM E. W. Drlslane Secretary FMSI 02070