Document NedeLBOojqZzyj19XaGo7Mvo8

LEAD INDUSTRIES ASSOCIATION, INC. 292 MADISON AVENUE NEW YORK, N. Y. 10017 SUBJECT TO REVISION BOARD OF DIRECTORS MEETING MINUTES New York, N.T. December 10, 1963 A meeting of the Board of Directors of the Lead Industries Assocl ation, Inc. was held on Tuesday, December 10, 1963, at the 60 East Club, 60 East 42nd Street, New York City. PRESENT REPRESENTING C. R. Ince, Chairmen Julian Bers D. R. Carter K. W. Green Robert Hendricks R. J. Hopkins C. E. Schwab S. D. Strauss W. P. Wilke III St. Joseph Lead Co. Bers & Co. Inc. The Eagle-Picher Co. Hie Electric Storage Battery Co. The Consolidated Mining and Smelting Company of Canada Ltd. The Broken Hill Associated Smelters Proprietary, Ltd. The Bunker Hill Co. American Smelting and Refining Co. Hamnond Lead Products, Inc. OTHERS PRESENT Andrew Fletcher Dan Herts G. Howard LeFevre J. B. Metcalfe J. S. Smart, Jr. W. J. Welch St. Joseph Lead Co. United States Smelting Refining and Mining Co. (ditto) (ditto) American Smelting and Refining Co. National Lead Co. L.I.A. STAFF Robert L. Ziegfeld, Executive Vice President and Treasurer David M. Borcina, Secretary and Assistant Treasurer I.L.Z.R.O. STAFF Schrade F. Radtke, Research Director J. George Bilek A. R. Cook S. E. Eck LIA01248 Board of Directors Meeting Minutes -2- December 10, 1963 The chairman called the meeting to order at 1:55 P.M. The secretary reported a quorum was present. The chairman presided and the secretary kept the minutes of the meeting. The secretary presented a copy of the notice of meeting which had been mailed to each director, as provided in Section 4.04 of the Corporation's By-Laws. The copy was ordered filed with the minutes as Exhibit "A." (Sent to directors on November 20, 1963.) The minutes of the previous meeting of April 29, 1963 were approved. L.I.A. BUDGET FOR 1964 The executive vice president presented his budget figures for all operations of the Lead Industries Association, Inc., except research, as ap proved by the Industry Development Committee at its meeting on December 4, 1963, as per Exhibit "B." (Sent to directors on December 5, 1963.) After some discussion, a motion was made, seconded and unanimously carried, to approve the 1964 budget, as submitted. 1964 L.I.A. RATES PER TON A motion wa3 then made, seconded and unanimously approved, to adopt the following rates per ton for 1964 subscriptions: Per Ton Mining Smelting and Refining Manufacturing Assembled Articles Domestic Pig Lead Sales 16* 4* 4* 2* 80* I.L.Z.R.O. BUDGET FOR 1964 The research director presented his 1964 budget figures for lead as approved by the Industry Development Camaittee at its meeting on December 4, 1963, as per Exhibit "C." (Sent to directors on December 5, 1963.) Mr. Strauss stated that it should be noted that his company's repre sentatives on the Technical Steering Committee and the Industry Development Committee objected to some of the 1964 budget items but that his comnany would not oppose the budget as presented. LIAO1249 A motion was thereupon made, seconded and unanimously carried, to approve the 1964 I.L.Z.R.O. budget for lead as submitted. Board of Directors Meeting Minutes -3- December 10, 1963 1964 I.L.Z.R.O. RATE PER TON A motion was made, seconded and unanimously carried, approving the recommended 1964 rate per ton of pig lead produced of 45 cents. REPORT OF THE REVIEW COMMITTEE ON I.L.Z.R.O. The chairman reported that a committee comprised of Messrs. Hendricks, Ince, Kenly, Strauss and Young had been appointed by the American Zinc Institute, Inc. to review I.L.Z.R.O. activities. The committee met several times and invited the operating heads of the Lead Industries Association, the American Zinc Institute, Lead Development Association, Zinc Development Association, and the International Lead Zinc Research Organization to present their comments. Comments were also invited from every participating company. The recommendations of the Review Committee were then submitted to this Board by its chairman early in October. After considerable discussion it was moved, seconded and carried that the report with its recommendations be accepted with the exception of the recommendation relating to the creation within the Technical Steering Committee of an executive committee. There were two dissenting votes to this deletion. A motion was then made, seconded and unanimously carried, to extend to the five members of the Review Committee the Board's appreciation of their efforts in its behalf. STANDARD OPERATING FROCEDURE OF I.L.Z.R.O. Mr. Hendricks stated that the Industry Development Committee's terms of reference should be clarified in the Standard Operating Pro cedures of I.L.Z.R.O. and suggested certain changes that would be acted upn at the next meeting of the Executive Committee of I.L.Z.R.O. A motion was then made, seconded and unanimously carried, accept ing in pirinciple, the changes advocated by Mr. Hendricks. NOMINATING COKMITfeE FOR DIRECTORS AND OFFICERS The president, with the approval of the Board, appointed the fol lowing individuals to serve until the 1964 annual meeting on the following committees: Nominating Committee for Directors Nominating Cormvittee for Officers Andrew Fletcher, chairman Edward McL. Tittmann William J. Welch Charles E. Schwab, chairman R. J. Hopkins C. G. Rice LIA01250 Board of Directors Meeting Minutes -4- December 10, 1963 RESIGNATION OF JEAN VUILLEQUBZ The executive vice president reported that he had received a letter of resignation from the Board and Executive Committee from Jean Vuillequez, effective December 31, 1963. A motion was made, seconded and unanimously carried, accepting the resignation with regret. - PENSION PLAN The chairman explained that a year ago handling of the Employees' Pension Plan had been turned over to an insurance company at considerable saving to the Association, which amounted to about $4,000 a year on current payments to the Fund and had left about $30,000 in savings accounts on past payments. At the tine it was recommended that this money remain earmarked for the Pension Plan and a recommendation was further made that the possibility of basing benefits on the last 120 months of employment be considered. The treasurer explained that to make such a change now would increase the annual payments from about $12,000 to about $25,500 or an annual increase of about $13,500. He stated that the $30,000 now earmarked in savings accounts would take care of more than two years of the increased cost and that the cost would drop substantially within a little over five years since several em ployees, including the highest paid, would be due for retirement in that time. It was regularly- moved, seconded and carried that the Pension Plan be revised to base credits on the average salary for the final 120 months of em ployment prior to normal retirement and the past service credit be increased from 1 per cent to 1-1/2 per cent to equal future service credit. IMPORT STATISTICS The secretary reported that he had been receiving import statistics on various lead products and recommended that the Association publish these data for dissemination to the members. A motion was made, seconded and unanimously carried approving the publication of import statistics on lead products. NEXT MEETING DATE It was agreed that the next meeting be held on April 21, 1964 during the annual meeting in St. Louis, Mo. LIAO1251 There being no further business, the meeting adjourned at 3:55 P.M. DMB:HMM Secretary I n* t ____ !_____ LEAD INDUSTRIES ASSOCIATION, INC. 292 ma d is o n a v e n u e December 5, 1963 NEW YORK. n . y . 10017 SUBJECT: 1964 BUDGET DATA To the Board of Directors of the Lead Industries Association, Inc.: We present herewith budget figures for all operations of the Lead Industries Association, Inc., except research, in 1964 as approved by the Industry Develop ment Committee at its meeting on December 4, 1963* These are for your considera tion at the Board meeting to be held on December 10, 1963. The following table gives you the subscription rates per ton for both member ship and industry development (now combined in a single budget) for the last five years as veil as figures on receipts and expenditures. The pension fund is not included. GENERAL AND INDUSTRY DEVELOPMENT FUNDS BUDGET RECAPITULATION Rates per ton for Subscriptions Cash on Hand Manuf. Assem- Pig Subscrip- Other Approved Year End Smelt & bled Lead tions Mlsc. Expend!- Genl. & I.D. Year 1555 i960 1961 Mining Refin. Articles Sales Received Receipts Budget tures ki ' 26 1ST 283,614 2,531 3^715 35S75S4 20 5 4 42 371,963 3,818 374,450 332,944 12 3 if 52 340,545 4,46o 369,350 319,624 Funds 111,54*} 154,385 179,766 1962 16 4 2 65 471,560 4,66o 461,000 412,133 243,853 1963 Est. 16 4 2 54 391,248 6,000 483,125 472,150 166,750 At the membership rates listed above for 1963 it can be estimated that be tween $85,000 and $90,000 per year are derived from regular membership subscrip tions paid by all members. It can further be estimated that for each 1 cent subscribed on pig lead sales for industry development about $6,000 will be made available. This information should assist you in estimating what rates would be needed to meet any specific budget for 1964. In 1963 a number of special reserves were established for publications and a motion picture from unexpended items in the 1962 budget. Except for the motion picture reserve, all such reserves still unspent at the end of 1963 are to be wiped out and returned to the general funds in the interest of simplicity and clarity. Also the subscription rate for industry development was substantially lower in 1963 than in 1962. On the following pages appears the 1963 budget as approved and the estimated performance under that budget, as well as the budget recommendations of the In dustry Development Committee for 1964. LIA01252 Ahead with Lead N 698.01 Board of Directors 2- December 5, 1963 This budget would mean a subscription rate of 80^ per ton on U.S. lead sales, assuming that membership rates remain unchanged. Very truly yours, RLZ:mk Enc. Executive Vice President LIA01253 L.I.A. COMBINED BUDGET (Excluding Research) is x^>iuiiiv.nx i-^-x fiwL Salaries, incl. Payroll Taxes Insurance Furniture, Fixtures & Equipment Rent & Light Travel Entertainment & Lunches Meetings Office Supplies Mailing & Express Telephone & Telegraph Annual Statistical Review Association IXies Books & Subscriptions Transfer to Pension Fund Test Programs Legal & Consulting Fees Abstracting Service Office Alterations (non-recurring) Miscellaneous Total Administrative & Technical Service Approved 1963 $158,000 2,500 2,000 14,500 22,500 3,500 4,000 3,500 5,000 3,500 500 1,200 1,300 16,000 4,000 2,000 8,000 6,000 258,000 Estimated Actual 1963___ $160,000 2,300 2,000 14,500 21,000 3,500 3,000 2,500 5,000 3,500 500 1,200 1,300 16,000 4,000 3,000 8,000 5,500 256,800 Publications: "Lead" Reprints Construction & Architectural Flyers Ceramic Supplements Sweet's Catalogs Electric Truck Brochure Monograph Roofing Handbook Ceramic Phase Diagrams (self liquidating) Total Publications 27,000 5,000 3,500 - 13,500 4,000 1,500 5,000 - 59,500 32,000 5,000 3,500 - 13,500 - 1,000 - 55,000 Space Advertising: Batteries Architectural & Construction Noise Control Vibration Control Solder Cable Ceramics Pigments Plumbing Teme Plate Miscellaneous Design Institutional Production Miscellaneous Total Space Advertising 36,004 15,595 - 7,608 6,480 10,266 9,278 - 18,244 - 22,000 2,000 127,475 38,000 15,600 1,600 7,600 6,500 10,300 9,300 - 18,200 550 22,000 2,000 131,650 Suggested 1964 $190,000 3,000 2,000 20,000 22,500 3,500 3,000 3,000 5,000 3,500 500 1,200 1,300 12,000 4,000 2,000 10,000 5,000 6,000 297,500 32,000 5,000 3,500 2,000 11,500 4,000 1,500 5,000 .2*009 73,500 40,800 19,300 7,500 15,200 10,400 8,100 8,800 16,000 6,000 7,ioo 6,000 24,000 2,000 171,200 N 698.02 LIA01254 Miscellaneous Promotion: Health & Safety Information Service Conventions & Exhibits Apprentice Contest Seminars National Shooting Sports Foundation Publicity Product Development & Contingencies Total Miscellaneous Promotion Approved 1963 - 16,500 650 6,000 - 15,000 38,150 Reserves: Motion Picture Ceramic Supplement Pigment Manual Anti-Vibration Noise Control Manual Cable Handbook Motive Power Batteries Construction & Architectural Flyers Total Reserves 25,000 2,000 7,000 3,397 24,880 3,000 - 2,477 67,754 RECAPITULATION Administrative & Technical Service Publications Space Advertising Miscellaneous Promotion 258,000 59,500 127,475 38,150 483,125 Reserves: Motion Picture Publications 25,000 42,754 &7,7S* Total 550,879 Estimated Actual 1963 12,000 1,200 - - 3,000 16,200 - 2,000 - 2,000 1,000 4,000 1,000 2,500 12,500 256,800 55,000 131,650 16,200 459,650 12,500 12,500 472,150 Suggested 1964 40,000 15,000 1,000 4,000 500 5,000 15,000 80,500 - - - 297,500 73,500 171,200 80,500 622,700 - 622,700 Balance, beginning of year Reserves for Publications & Movie Receipts Est. Expenditures Balance, end of year Reserve for Movie Net Balance, end of year Estimated 1963 1964 $201,100 42,800 "243,900 397,000 640,900 472,150 168,750 25,000 $143,750 25,000 168,750 578,950 a 747.700 622.700 125,000 25,000 143,750 100,000 a. It is estimated that approximately $90*000 of these receipts would be derived from regular membership subscriptions at 1963 rates and another $5,000 from interest, sale of literature, etc., leaving about $484,000 to be derived from industry development subscriptions, which would then amount to about 80 cents per ten. LIA01255 -2- The following notes explain in more detail same of the foregoing items. Administrative. The decision of the Executive Committees of L.I.A. and A.Z.I. to provide more office space for the International Lead Zinc Research Organization and the two Associations will increase rent and light seme $5,500 id a non-recurring item of $5>OOQ will he needed in 19^4 for office alterations resulting from this change. On the other hand the new method adopted this year of funding the Pension Fund will save about $4,000 a year. Technical Service. The present technical service staff is not able adequately to handle the large volume of inquiries demanding special attention which are now coining in at the rate of over 2,000 a year, while also handling preparation of technical literature, exhibits, etc. Provision haw, therefore, been made in the 1964 budget for one additional technical service _ engineer and a secretary. In addition, $5,000 has been provided under Miscellaneous Promotion for our advertis ing agency to handle preparation of a series of technical feature articles, work which has been taken care of by the staff in the past but has had to be neglected recently for lack of time. Such articles are not only valuable in themselves but make good reprints for special distribution. "Lead." Increasing the number of pages of this publication from 8 to 12 pages was approved a year ago. This was done but actual costs exceeded estimates substantially due to both higher printing and mailing costs. Allowance in the 1964 budget is for the amount that will actually be spent in 1963 "but efforts are being made to reduce this cost somewhat. Batteries. After several years of test promotion of storage batteries for motive power a much more intensive campaign was initiated in the spring of 1963* This involved reprinting our several year old brochure on battery power costs and printing a new brochure "Power With No Strings Attached." The supply of the latter was so quickly exhausted that a new brochure along somewhat the same lines is in preparation. Advertising was continued in "Factory" magazine with 6 pages in 1963, and 6 pages in "Materials Handling Engineering" and 7 two-thirds pages in "Business Week" were added. Presentations of the program before it started were made to the industrial truck and battery manufacturers and to public utilities. Both of these groups tied in strongly with our program and bought from us over 15,000 copies of our literature for their own distribution. Utility companies were also responsible for a number of special promotions at their own expense such as the electric truck rodeo staged by Union Electric Co. of St. Louis for nearly 800 of their Industrial customers. This campaign is too new to judge ultimate results beyond the enthusiasm shown by interested companies and nearly 200 inquiries in only six months. Certainly it should be maintained at full strength through 1964* Addition to the advertising schedule of six pages in "Public Utilities Fortnightly," a lost cost utility management publica tion, to keep the power companies interested and feed them ideas for their own promotion is included. It should be noted that four of the largest industrial truck manufacturers are also advertisers in "Business Week" and that two of these lean heavily to gasoline power. One or more seminars arranged by L.I.A. in conjunction with utility companies and battery and electric truck manufacturers might be conducted if a sufficiently interesting discussion can be developed. Architecture and Construction. Our 1963 activities in these fields in clude technical service, exhibits, and direct mail and space advertising. A full time architect on the staff is constantly providing technical service to architects and engineers toward greater use of lead products and he is also active in such organizations as the American Institute of Architects, Con- -3- LIA01256 structian Specifications Institute, Building Research Institute and Producers' Council. This work has resulted in many nev Jobs for lead and should be con tinued. Flyers on various building applications of lead are mailed to architects and engineers at intervals. One of the most popular in this series vas an lead lined pools and planters issued in 1963 These publications should be continued. We have been using catalogs on sound and vibration control, roofing and water proofing and plumbing in Sweet's Architectural Files. While it is hard to evaluate these catalogs, several Jobs, one involving 60 tons of lead, have been traced to them. We believe it is almost a necessity to be in these Files and think our catalogs should be continued with the possible exception of the one an plumbing which has been eliminated. We have exhibited for the last four years at the annual convention of the American Institute of Architects. We believe this exhibit should be continued and that one at the Construction Specifications Institute, which is low cost, be added. We further feel that space advertising in "Progressive Architecture," "Engineering News Record" and "Roofing, Siding and Insulation" be continued with the addition of two two-thirds pages in "Business Week." The latter is suggested because of the influence wielded by top management as building buyers and customers of architects on decisions to add the extra expense of reflecting pools, fountains, planters, lead roofs and the like. Noise Control. Promotion in this field in 1963 was limited to preparation of an interim technical report of research (a draft is now in the bands of printers), to helping with several experimental installations and to publiciz ing a few case histories in "Lead." Most of the $25,000 set aside at the begin ning of the year for publications has not been used and is returned to our general funds. Two pages of advertising on control of transformer noise were run in "Electrical World" because of a special opportunity in this area and two similar pages will run in "Factory." In 1963 it is recommended that a modest advertising program on case histories of successful experimental installations be run, to consist of two pages each in "Factory," "Engineering News-Record" and "Progressive Architecture." No money is suggested for publications in 1964 because it is not known at this time what publications may be needed and con tingency funds should be available if required. It is intended to continue work on experimental projects of various kinds both for buildings and machinery and to work with ILZRO toward development of lead-containing partitions for buildings. Vibration Control. We have continued to publicize case histories of the many lead-asbestos anti-vibration pad jobs that are being installed, both in "Lead" and in space advertising in "Engineering News-Record" and "Progressive Architecture." Reprints of a field study of the effectiveness of these pads in Montreal were also given wide distribution. Further field studies presented at our annual meeting are expected to appear in "Architectural Record" and will also be reprinted for wide distribution. It is suggested that case history advertising be Continued in the magazines already mentioned with the addition of two two-thirds pages in "Business Week" for much the same reasons as mentioned under Architecture and Construction. Solder. This lead product uses some JO,000 tons of lead a year, yet no industry efforts have been directed toward protecting or expanding this market, except occasional articles in "Lead" and preparation of the "Soldering Manual" for the American Welding Society by a committee under the chairmanship of L.I.A. 's Secretary. The distribution of this book is limited by its cost, $5 per copy, and its interest to us is diluted by the fact that it covers an solders, not Just lead solders. A low-cost condensation of the subject was prepared and re printed from the magazine in which it appeared for distribution free. At the same time two pages of the advertising space we are now using in "Product Engineering," "Machine Design" and "Materials in Design Engineering" would be devoted to solder. Likewise, it is suggested that seven ads an solder be run LIA01257 in "Product Design and Development." The purpose of the booklet and advertising would be to educate people to the variety of forms of solder and soldering methods that are available and the kinds of Joining problems that are being successfully solved with lead solder. In other words it would be hoped that many people who turn to other Joining methods would find that solder could do the Job for them best and cheapest. Part of our exhibit at the Design Engineering Show could be used to demonstrate practical applications of soldering. One or more seminars for producers and users of solder could also be sponsored. Cable. We have been supporting a modest advertising campaign in "Electrical World" for the last two years in the interest of lead sheathed cable. While no sensational results were expected of this program (it was intended primarily to get engineers, particularly younger ones, thinking in terms of lead rather than widely advertised new materials) we are beginning to sense more interest in lead due to more frequent favorable editorial references to it. To supplement this advertising we have recently published a 24-page booklet on lead for cable sheath ing and are giving it vide distribution. We believe this program should be con tinued with the addition of a couple of pages in "Factory" to reach specifically people in private industry who install cable. This group is responsible for sane 10 percent of the total cable market. Ceramics. We suggest that this long established successful program be con tinued without major change in its space and direct mail advertising aspects. However, about three years ago the American Ceramic Society issued 1,000 copies each of 10 large scale phase diagrams for use by ceramic engineers. These were sold and the original cost of printing them was recovered by the Ceramic Society. It is suggested that L.I.A. issue six more dealing specifically with lead, which the first ten did not, and sell them through the A.C.S. This would cost about $9,000 but A.C.S. would turn over the receipts to us until all our original cost had been recovered by L.I.A. The A.C.S. has given tenative approval to such a program and to use its name on the diagrams. Pigments. We feel that this advertising program to the paint industry and construction engineers should be continued. Our experience with it, however, suggests that it could be strengthened in the field of structural steel painting by the addition of some space in "American Painting Contractor" since this group is highly influential in selecting paints particularly where optional specifica tions are involved. Also we believe that the trend to yellow (lead chromate) traffic paints could be both hastened and broadened by using some space in "Ameri can City" magazine. A sum of $7,000 has already been approved for publication of a lead pigment manual similar to our ceramic manual. However, difficulties have been encountered in its preparation, partly because of different proprietary in terests among members. Because of this and the fact that sane individual members already have extensive publications of their own on lead pigments, it is suggested that this effort be dropped. A much less expensive case history brochure on yellow traffic paint might be substituted since its use for many applications, like traffic light standards, is far from universal. It is also suggested that limited space in "Metal Product Manufacturing" he used to introduce more widely the baking primers developed through ILZRO. Plumbing. A recent threat to at least a part of our 60,000 tan a year LIA01258 calking lead market arises from the development and aggressive promotion by the cast iron pipe industry of Joints that require no calking lead. Already ILZH0 is investigating both leaded and non-leaded Joints and is planning a program to develop a mechanical lead Joint which would make melting and calking unnecessary. L.I.A. has made canparative cost studies. In anticipation of sane favorable . -5- results from the ILZRO program on cast Iron pipe joints and "because the cast iron industry will have to get thousands of plumbing codes changed to introduce their new joints widely, we recommend a holding action now and later an aggressive counter-attack through advertising in the leading plumbing contractor publication and in "American City" magazine to reach municipal authorities. It should be noted that four pages of advertising and an editorial article were devoted to the leadless joints in the July 1963 issue of "Plumbing-Heating-Cooling Business." Terae Plate. The industrial use of teme plate has been growing recently to such an extent that two of the five manufacturers, U. S. Steel and Armco, have substantially increased their production capacity. In 1963 we devoted a little of our alreec^-cantracted-for space in the design magazines and "Metal Product Manufacturing" to terae plate to sample this market. The large number of inquiries were turned over to U.S. Steel, who have been following up each one individually. They have found some interesting applications of which they did not know. As a result U.S. Steel has a new booklet on terae plate in preparation which should be ready for distribution in December or January. This should fill a need and is a direct result of our interest and cooperation. It is also pos sible that their new high speed continuous line will eventually reduce costs and open still more new markets. Miscellaneous Design. We propose that the design magazines also continue to be used to feature interesting and new uses of lead and stimulate interest among designers, as veil as using these publications for specific product pro motion already mentioned. Sweet's Design Catalog is also being used and we recommend continuation of our participation in the Design Engineering Show. Miscellaneous Promotion. It is suggested that we continue with trade show exhibits much as in the past, adding the Construction Specification Institute ~ in place of the National Home Builders Show which we dropped this year. Support of the National Plumbers' Apprenticeship Contest by supplying lead materials, awards, and a judge and instructor should continue. An appropriation to have our agency handle certain feature publicity articles was mentioned earlier and would have the double effect of getting more publicity while giving the staff more time fqrtechnical service. Seminars an several subjects have already been mentioned under specific programs. Membership in the National Shooting Sports Foundation at about $500 should be considered to keep abreast of and have sane say in their aggressive program to encourage more sports shooting which will consume more lead for ammunition. A new Health and Safety Information Program is discussed in considerable detail in a separate attachment and is strongly recommended. A contingency fund of at least $15,000 as In the past should be provided. Motion Picture. In 1963 a reserve fund of $25,000 was set aside either to be used eventually for a general movie for which a working script had been pre pared or for a movie on seme particular use of lead. At that time the thought was to appropriate another $25,000 to he added to this reserve in 1964. This has been postponed since no recommendations for spending it are made at this time. LIAO1259 -6-