Document Qkeyz4Oe107kMxg1vEw06xLLo

minutes of meeting of the .. BOARD OP DIRECTORS ; Tuesday, June 12, 1979, at 8:30 A.M.- .at Ocean Reef Club, Key Largo, Florida DIRECTORS PRESENT F. E. Messier, President R. R. Moalii, Vice-President R. L. Cutler Stuart Comlns W. Simon J. W. Greenen G. A. Carrlgan Bendlx Corporation Raybestos-Manhattan, Inc. Abex'Corporation Auto Friction Corporation Drassbestos Manufacturing Corporation Nllturn or. S.K. Wellman Corporation OTHERS PRESENT R. E. Nelson, Chairman - Brake Performance Study Committee J. L. McGovern, Jr. R. Join E. W.* Drislane, Secretary . Abex Corporation Distinguished Guest Federation of European Manufacturers of Friction Materials Friction Materials Standards Institute Mr. Messier, President, called the Meeting to order at 8:30 A.M. The Secretary, advised that Mr. Gorman, Legal Counsel could not attend this meeting as he had been*hospitalized on*an emergency basis on June 11, 1979 in Hew Jersey. The Secretary advised that Legal Counsel from Mr. Gorman's office planned to attend the remaining meetings. MINUTES OF PREVIOUS MEETINGS ' The Minutes of the Meetings held June 27-28, 1978 had been distributed. No corrections were suggested. Upon motion duly made, seconded, and unanimously passed. It was; RESOLVED:- That the Minutes of the June 27-28, 1978 Meetings be accepted as written. V-/ Qo) MAR 000206 Minutes of the Meeting of Che Board of Dlrectora -2- June 12, 1979 PRESIDENT'S REPORT Mr. Messier, President, reported on activities for the 1978-79 fiscal year. He commented on publication of the "Friction Materials Work Practices Guide," Che history of Che Institute that was prepared Immediately after the June 1978 Meeting, and publication of the "1979 Brake Block Identification Catalog.". He also noted the granting of trademark registrations to IMS and FMSI and resolution of questions concerning Che Consumer Product Safety Commission's.responsibilities which were raised at Che June 1978 Meeting. It was pointed out that Che National Highway Traffic Safety Administration has responsibility for automotive friction materials and these are not under the jurisdic tion of the Consumer Product Safety Commission. . In addition, Mr. Messier addressed questions raised concerning the "Asbestos Health Hazards Compensation Act" and Che recent contacts by the Institute with the EPA's Office of Toxic Substances Control. Mr. Messier thanked those who had. contributed their time in furthering Che interests of the industry.- Upon motion duly made, seconded and unanimously passed, if was;-. RESOLVED: To accept the President's report as written. MEMBERSHIP COMMITTEE REPORT Mr. Gordon Carrigan, Chairman of the Membership Committee delivered the Membership Committee report. He indicated increases in Membership as shown in the written report* He also noted that there had been several changes in recent weeks which prevented him from geeting a final report until Immediately prior to-the meeting. Among the-recent Membership, activities was the recommendation that the Guardian Corporation of . Brighton, Massachusetts be. accepted as an Active Member. The Board of Directors and'the-Membership'.accepted this recommendation by mail ballot and voted Guardian Corporation in as an Active Member. MT. Carrigan advised on the recent applications received from Canadian Dlstex Corporation of-Montreal,- Quebec, Canada, and the Licensee application filed by lima International Parts & Sales, Inc. in Lima, Ohio. The Canadian Distex and the Lima International applications had been-sent to the Membership Committee who had. voted in favor of accepting these applications. The Secretary advised that these applications could be reviewed and voted on by the Board of Directors at_this meeting. The-application for'Regional Membership filed.by Canadian Dlstex of Montreal, Quebec, Canada vas reviewed.. .Canadian Dlstex la interested in Regional Membership with Che rights to market their products In the united States using the Institute's copyrights and trademarks. Canadian Dlstex is now-manufacturing and distributing automotive disc brake pads. Upon motion duly made, seconded and unanimously passed, it vas; RESOLVED: To accept the application filed by Canadian Distex Corporation, Ltd. of Montreal, Quebec, MAR 000207 Minutes of the Meeting of the Board of Directors . -3- Juhe.12, 1979 The Secretary advised that immediately prior to the meeting he had received an- application for Licensee Membership from Lima, International Parts of Lima, Ohio. Mr. Jim Lyle of Lima International filed this application after discussions with !lr. Greenen and Mr.. Mellow of Nutura Corporation,-and with-Mr. Drlslane of the Institute.- Lima International Parts- Is a manufacturer of hardware used In brake repair kits- and would qualify for Licensee Membership as a manufacturer of- materials for the attachment or assembly of brake shoes'. This Is under Eligibility clause In Article III of the Constitution. Upon motion duly made, seconded and unanimously passed. It was;- - RESOLVED: To accept.the application for Licensee Membership filed by-Lima International Parts " and Sales-Inc. of Lima, Ohio. At this point Mr. Comins brought up the subject of transferring Institute Membership from Auto. Friction. Corporation to P.T. Brake Lining Company, Inc. It was stated that a precedent had been made when the Membership was transferred from Krasne Company to Royal Industries, and when transfer was made of the Membership from Maremont. to- Nutum Corporation. Upon motion duly made, seconded and unanimously passed. It was; RESOLVED: To accept the transfer of Membership In theInstitute- from Auto Friction Corporation to P.T. Brake Lining Company, Inc. After additional discussion, and upon motion duly made, seconded and unanimously passed, it was; RESOLVED: To accept the- report of the Membership Committee as written. ... DELINQUENT ACCOUNTS RECEIVABLE The Secretary Indicated that Implementos Metalicos Lara, S.A. of Barquisimeto, Venezuela had not paid its annual fee for the 1978-79 fiscal year. The Institute had written Implementos Metalicos several times. Based upon mall' ballot, the Board voted to terminate their Licensee membership. The Secretary then advised Implementos Metalicos of this termination of Licensee Membership In the Institute. The Secretary advised that at the June 1978 Meeting of the Board it was decided that Mr; Cutler would contact' Hayes-Albion concerning the past due receivable for the second half of the annual fee Installment for the 1977-78 - fiscal* year. This was for- $850 for the period from January 1, 1978 to June 30, 1978. Mr. Cutler was unable to affect payment by Hayes-Albion,.and the Secretary was directed to write to pursue payment. The Secretary then had*correspondence with Hayes-Albion Corporation concerning, the $850 due the Institute, but there was no reply to the last correspondence. MAR 000208 Minutes of the Meeting of the Board of Director -4- June 12, 1979 The Secretary advised; that he had. followed therecommendations of the Board which asked that he pursue collection, without resort to threats of legal action. A director suggested that the collection be given, to either*a collection agent or outside attorney for collection on a contingent basis. It. was suggested that the Institute's, legal counsel could pursue this collection. The Secretary, indicated that he. did'not feel it appropriate to spend more than $850 to collect an $850 receivable. A.director suggested that it was a bad precedent .to write-off this ' receivable without pursuing this collection more vigorously. Upon motion/duly made, .seconded and unanimously passed, it was; RESOLVED: That the Secretary request Legal Counsel ... to pursue collection of the $850 receivable . from the Hayes-AJLbion Corporation. INVESTMENT ADVISORY COMMITTEE REPORT Mr. William Simon, Chairman of the. Investment Advisory Committee,' delivered this Committee's report. In summary, Mr. Simon reported that approximately $45,000 of funds had been transferred from time-deposits into US agency obligations paying a little over 9Z. . Also, the Institute had invested some of its temporary funds in the Whitehall Money Market Trust managed by the Vanguard Group. This, fund had been paying approximately' 10Z interest. The Investments projected at June 30, 1979 showed about a $5,000' increase over, that for June 30, 1978. Upon .motion duly made,.-seconded and. unanimously passed,, it.was; RESOLVED: To accept the Investment Advisory Committee report as written.. BUDGET COMMITTEE REPORT Mr. Douglas Ogilvie"is"the Chairman of- the Budget Committee. The Secretary, read the Budget Committee report. . :r * .This report presented a line by line budget amount for each of the major expense categories. It noted that.the major expense items are salaries, pension,rent and legal expense, which account for almost 80Z of the expense budget. The Chairman recommended a 1979-80 expense budget of $95,810 which was about a 5Z increase over the budget for 1978-79. Upon motion duly made, seconded and unanimously passed, it was; --.-.RESOLVED: To accept"the report.of the Budget Committee " .___. as written. " "j ' '' ' i-." . .. /- -_ Subsequent - to this,, the Board voted a $600 increase in.Pension Expense, bringing the proposed budget to.$96,410. ' MAR 0,00209 Minutes of the Meeting .of. .the Board of Directors -5- June 12,. 1979 . .fee, formula commutes report Mr. Jim Mellow is Chairman of-the Fee Formula Committee. The Secretary read his report. The.Chairman indicated, that there were 19 Active Members for 1979-80 declaring 35 categories. For Regional Members, with (J.S. copyright and -trademark rights,-there were 8 members with 10 categories. The. Chairman indicated that there- would be 10 Regional Members-regular, and 2 trade association Regional Members. In addition, 9 Licensees had been, planned; Subsequent to gathering of the category information, applications had been received from-Canadian Dlstex Corporation and Lima International Parts and Manufacturing. Company, Inc. .These, if accepted by the Membership, wouldincrease the dues proportionately. In addition,- the Chairman pointed out. that he had information that Friction Materials Corporation (marketing.their products, as Interfriction).was participating in the brake lining category as well as in the clutch facing category, and should be assessed for an additional category. Based on the rates in effect for 19 78-79'; the report indicated that 582,350 of income would be produced using that formula. A. question then arose concerning category declarations by the Friction Materials Corporation of Israel.'' The Secretary advised that based on decisions at the June 1978 Meeting, he had billed Friction Materials Corporation for additional categories. In response to this billing the Secretary received a letter from Friction Materials Corporation stating that while they Intended to enter the brake lining category, they were actually selling only dutch, facings in the United States at that time and should only be assessed for the dutch facing category. There was discussion as' to- whether a member is participating in a category if he offers-a product for sale even 1 he is not actudly making deliveries. The Chairman had sent in sales literature showing use of the. Institute's copyrights- and' trademarks by Interfrlctlon. The Secretary stated: that, he could understand a disagreement concerning participation in- a fee category if a member was not actudly shipping the product. The Secretary was directed to review the write-up for category declaration and spedfically require declarations where a member is using the Institute's copyrights or trademarks in offering a product category for sale in the United States market. The Secretary, was directed to have this change reviewed by Legal Counsel. It was further stated chat Che Board of Directors is responsible for the fee- structure and its definitions are what determines participation in a category. With last-year's (19 78-79) fee schedule,..we could anticipate approximately $82,000 in revenues.' ' This,.dong with-$14,000 of.interest and. dividend income.would give total.income of $96,000, and would lust about cover projected budget expenses.. In response to a question, the.Secretary indicated that the Institute's-net worth is approximately $175,000. The question was raised as regards how much retained earnings a non-profit association.could accumulate without incurring Che displeasure of-the Internal Revenue Service. The Secretary stated that he believed the figure- given by Counsel at a past Board Meeting was that the retained earnings of an association could be somewhere between 2 to 3 times its annual budget. It was Indicated that the Institute could increase its MAR 000210 Minutes of the Meeting of the Board of Directors ' "6-- June 12, 1979 fees and therefore Increase Its reserves. A point was raised that with the Increased activity In the asbestos area that additional funds may be needed. Also, It was pointed out that there Is an unfunded liability to Miss Duschek for her pension, which would reduce.the Institute's net worth appreciably If removed from net worth. At thi3 juncture in the meeting. It was suggested that the decision as regards fee formula be deferred -until ocher activities of the Board had been reviewed. After the reports on asbestos and pension funds were delivered, and the Board had reviewed problems In both areas, it was suggested that the fees be Increased so that dues would approximately cover budgeted expenses.' It was-then recommended that.an Increase In the order of 10Z be-put1Into effect as .of July 1, 1979; - It was also stated that these figures should be rounded for billing- purposes, and that the total Income should be projected to Increase to'approximately $90,000. Based' on these guidelines the following fee formula.was derived: Active-Members - basic fee Increase from $1,050 to $1,150. . Category Fee - increase from $650 to $700 T Regional Members with US copyright and trademark rights'- same fee as Active Member Regional'Member Associations - Increased from $2,200'to $2,400 Licensees Increased from $500 to $550 Upon motion duly made, seconded and unanimously passed,. It was; RESOLVED: To accept the new. fee formula for the .1979-80 fiscal year as shown In the above schedule. Upon motion duly made, seconded and unanimously-passed. It was; 1 RESOLVED:. - To accept the' report of. the Fee- FormulaCommittee., as written,-with. Increased fee ' .........: levels-for. the 1979-80 fiscal1 year. PUBLIC RELATIONS COMMITTEE REPORT Mr. Simon, Chairman of the Public Relations Committee,, reported on activities for the 1978-79 year. He pointed out some of the releases that appeared In the trade press Including the election of officers, the address }Jr. Baynes, Chief Engineer of Delco-Mbralne,. gave at our June 1978 Meeting, and publication of the "Friction Materials Work Practices Guide." In particular, Mr. Simon thanked the President, Mr. Messier, for his-assistance during the past year. Mr.'Simon . Indicated that'the Institute-had distributed 40,000:copies of the "Friction Materials-(fork Practices Guide"'to Members, and approximately 500 directly to individual parties who requested copies.. :It was suggested that wider distribution could be accomplished by offering copies of the booklet to the Automotive Parts Rebuilders Association (APSA). It was suggested that the Institute offer the APRA free catalogs for their distribution. Another'director suggested that in addition to sending copies to the APRA It might be well to make an offer of free copies MAR 000211 Minutes of the tleeting of the Board of Directors -7- June 12, 1979 to the Council of Fleet Specialists (CFS),'and to the Automotive Service Industries Association (ASIA). The Secretary was directed to; contact. APRAj. CFS and ASIAand ask,if they would wish to have, copies for. distribution to teir members; Upon motion duly made, seconded and unanimously passed,. It' was-; RESOLVED: To accept the report of'the Public Relations Committee as written:!- * DATA' BOOK AND TECHNICAL' COMMITTEE Mr, Phil Grim is Chairman of the Data Book. and.Technical. Committee. In his absence the Secretary read Mr. Grim's- report!- The report covered such items as the membership of the Committee and the treatment of trademarks in the Institute, catalogs. - Mr. Grim indicated that a new printer had been taken on for printing the "1979 Supplement to'the 1978 Brake Shoe Identification Catalog." He also discussed items such as computerized typesetting and various technical matters. ... A director asked regarding the criteria for selecting Imported cars for Inclusion. In the- Brake Shoe Identification Catalog. - The Secretary advised that the Committee does not have arbitrary registration figures for selecting vehicles that will be included- In the Brake Shoe Identification Catalog. However, it' reviews registrations for Imported vehicles and In general includes -all vehicles with registrations In. excess of 20,000 cars in a model year. However, registrations are not a hard line on which Imported cars are- selected. Hut registrations are used'for guidance. ' The-Committee-votes on adding or'deleting Imported cars in the-Brake Shoe Identification Catalog. ! Based'on-their selection somewhere In excess of-982 of imported!carsare Included In the 3rake Shoe Identification Catalog. ^ The only cars' that .are not' Included are cars such-as'Rolls Royce-, Alfa-Romeo, Porsche and a*: few .-others. A - problem with-the Brake Shoe Identification Catalog: is: that, additional listings call for additional illustrations which would boost the catalog page counts. ` - '. Upon motion duly made, seconded' and unanimously passed; it was; RESOLVED: To accept the report of the Data Book and Technical Committee as written. IDENTIFICATION OF METALLIC TYPE'BRAKE LININGS The-Secretary advised 'that'he* hacf been asked concerning the possible noting in bulletins' and catalogs - that a certain brake'lining release was a metallic lining.- In other words; where a vehicle1 used an original equipment metallic lining It had been' suggested that a designation of some type be used to Indicate that if was metallic in the bulletins and catalogs: There currently are some-original equipment passenger cars and heavy duty vehicles (such as police interceptors) that use semimetallic type linings. Apparently the suggestion would cover not only semi-metallic materials, but sintered netallics if they were used. MAR 000212 Minutes of the Meeting of the Board of Directors. -8- June 12, 1979 The Secretary-indicated that in some cases it is difficult to know exactly which, vehicles.use metallic materials. It was pointed out by one director that ourrnumberlng'. systems indicate size and drilling - and-what, will fit a certain application. Indicating compounds would be a new area, for- the Institute. The Secretary indicated that he had some difficulty with this suggestion, and was-concerned should - inaccurate information on metallic versus organic linings result in liability to the Institute. It waa- pointed out. chat the. Institute had. recently added a disclaimer drafted by Legal Counsel which.Indicated that the catalogs and bulletins indicate dimensions and drilling only and in no way refer to the quality of the materials used. It was stated that this is a difficult subject to pass decision on at this; time'. ..After further, discussion, it was decided that the question of identification of metallic type friction r materials-in,'Institute'a.catalogs be referred to the Data Book and Technical Committee for: review'. r o - . BRAKE. PERFORMANCE STUDY COMMITTEE . -Mr. Nelson, Chairman of the.Brake. Performance Study Committee, delivered his committee's report.- . The* Chairman reported on .the suggested, changes that the Committee recommended to the Defense Construction Supply Center concerning Brake Lining Specification KH-L-361. - Suggestions were made for friction and wear levels; using a.J-661 quality control type procedure. The Chairman reported in detail- on the recommendations made to the Defense Construction Supply Center on this Federal specification. In addition,-.he covered- the changes.to DOT 121;(Air Brake Systems Standard) and a.recommendation that :-the NETSA Interpretation of the court decision on DOT: 121. be*-circulated-to. Che Membership. His report covered Che INHTSA's five year plan for rulemaking .which had several items-concerning . aftermarket-brake.linings.and automotive brake systems.. In addition, Mr*. .Nelson mentionedithe .Vehicle- Equipment Safety Commission's. V-14 . Regulation..for-a brake: weariwarning device, and. a recommendation made to the Vehicle Equipment Safety Commission concerning;the height of a lining manufacturer's) edge code::Identification on drum brake linings. ------ : .- Upon motion duly made, seconded and unanimously passed, it was; - RESOLVED:..To accept:the report of the Brake Performance Study Committee as written. ASBESTOS STUDY COMMITTEE REPORT Mr. Harry Waguer is Chairman of the Asbestos Study Committee. The Secretary read Mr. Wagner's' report". "The"'Chairman-reported on work that the- Committee had, completed - and- in -particular the. "Friction Materials Work.Practices-;Guide" of which- overj AD,000 -copies were sold to the. Membership. This: booklet, received wide-distribution: and was -completed in the early part of;the 19 78-79- fiscal year. j-Mr. Wagner pointed to the Committee's concern cn Industry sponsored draft legislationproposing a Federal "Asbestos Health Hazards- Compensation Act" with a fund.financed*by a.-.tonnage- assessment Imposed upon the asbestos products MAR 000213 Minutes of the Meeting of Che Board of Directors -9 June 12, 1979 manufacturing industry including friction materials. Mr. Wagner was particularly concerned about the effects that such legislation could have on friction materials manufacturers.. He also.-noted recent activity by. the Environmental Protection Agency's Office of Toxic Substances and in particular a report rendered to them by the IIT-Research Group. This report pointed to brake repair as an area of concern as regards asbestos emissions to the environment. The Chairman asked for the views-of Directors and Members on how to more vigorously pursue support of' an industry position in these areas. A director*commenced that Dr. Nicholson in his preliminary work on brake repair;had indicated that exposure in these shops was perhaps less than at first suggested^' Upon'motion duly made, seconded and'unanimously passed, it was; RESOLVED:' To accept'the report of the-Asbestos Study Committee as written. EPA VOLUNTARY ACTION PROGRAM ON BRAKE REPAIR' AND ' LEGISLATIVE'DRAFT ON- "ASBESTOS HEALTH HAZARDS COMPENSATION ACT" The Secretary had earlier- advised the- Board of Directors as regards correspondence he had with- Mr.- Dick- Carter of. Johns-Manville concerning a voluntary action program by the EPA's Office, of Toxic Substances on brake repair shops. This program was.perhaps supported by the IIT research report which indicated that1 brake repair work may be a signifi cant cause of exposure to asbestos'. - The Secretary reported- on a meeting he had a few days prior to the Board Meeting at the EPA Office in' Washington. .The Secretary called Mr. Richard Gulmond at the EPA's Office of Toxic Substances to- arrange an-appointment with' Mr. John De Kany'to review the' brake repair area- and what might be done in a voluntary, action program. The Secretary reported on his meeting and Indicated that one subject* that came- up was possible substitutes for asbestos in brake linings; -' Hr. Gulmond asked specifically whether there were substitutes available. - This question was triggered'by an article that appeared in "Automotive Industries" whichvindicated'that Raybestos would be. discontinuing manufacture of asbestos containing friction materials. Raybestos:representatives'indicated that the article in "Automotive Industries"'was most inaccurate. ............... The Secretary reported on the IIT research report and indicated some of .the indictments on exposure against the brake repair shops. One. critizism of the report - concerned the releasibility'of asbestos in a brake shop that`does not machine friction 'materials.. Most brake-shops-do not machine .the material*? One director indicated that'a major automotive brake repair' chain-had directed that'-brake'-lining grinders be removed from the brake* repair'shop. The EPA plans-to-'make-an-advanced notice of proposed rulemaking in August 1979 concernlng"*actions to be'taken in this area, and'is soliciting industry's'cooperation.-They would like industry to provide information on' asbestos-exposures*. -:They would like information on the potential hazards. I had indicated to the EPA concerning brake lining wear debris, that the best analysis that I was aware of was in MAR 000214 Minutes of the Meeting of the Board of Directors -10- June 12, 1979 ,,` v . ...the-Dr. Jacko-.report for EPA in 1973. Mr. Moalli Indicated that Raybestos had.written to- "Automotive Industries" os regards correction of the article. gfAd that asbestos in friction materials amounts ^ to> about 3 . to .42 of total asbestos.consumption. . It vas questioned whether the Friction Materials Standards Institute could bring sufficient information together to help the. EPA with a Voluntary Action Program. It was stated that the APRA members place inserts into some electrical parts packages on how to assemble certain parts. Perhaps the Institute might be able to have its members put-some suggestions, - such as the "3 Do's and 3 Don'ts" for handling asbestos-containing friction materials, in their packages. r~ It vas stated by one director that* the- Asbestos Information Association vas not representing friction material manufacturers as such.' He stated that the friction-material segment of the industry is not being represented by any other group and that the. Institute-should become the spokesman for its industry. It vas suggested that-perhaps other organizations such as APRA could be asked to have their members put inserts in packages to warn not to raise dust. Another director suggested that this problem, also effects manufacturers of grinding and drilling equipment. Perhaps manufacturers of such equipment might be interested in joining with the Institute in recommendations for proper exhaust ventilation and other instructions on the proper machining of friction materials. It waa^sgated that the "'TlfT =nbeatog dust in the air is going to"5e from a grinder -:.; in- the- brake-, shop. A Director, stated that.'surveys made of toll booths -c did. not. show significant asbestos emissions to the. atmosphere at these places... The main point of. asbestos., emissions would be. where .the material :.':::.is ;ground or otherwise machined. ..Mr. Join mentioned that in Europe the FEMPK has sponsored, independent, organizations to make fiber counts. He - suggested, that perhaps similar undertakings might.be feasible in the States. ' t . , - * A Director suggested .that the Institute's Asbestos Study Committee should be expanded, and.support should be solicited from the management of all Members..- In response to a.question, the Secretary indicated the member ship of the Asbestos Study Committee:.- Mr. Harry Wagner, Chairman,. Carlisle Corporation; Mr.. Jeffrey Nicholson, Abex Corporation; Mr:..David Stone, Bendix Corporation; Mr. James Armstrong, Bendlx Corporation; Mr. Isaac Weaver, Raybestos-Manhattan. It was suggested that the Asbestos Study Committee review the asbestos regulatory question-to Identify where-the problems exist.. '*"**'-- ***' ;.V.. . 1. . - During this discussion on the EPA Voluntary Action Program it was difficult -r-to-separate, activities- from the agenda, item concerning the "Asbestos Health Hazards-Compensation: Act." It vas stated-, that probably the major - input for the draft: of te. "Asbestos Health: Hazards Compensation Act" had come from Johna-Maaville. A.director stated that the draft had been given to the Department of Labor suggesting action on such an Act. It was stated that the friction materials industry-is not being represented - by the Asbestos Information Association as regards problems of our industry. MAR 000215 Minutes of the Meeting of the Board of Directors -11- June 12, 1979 It was stated that-there really-are two problems: (1) the E?A Voluntary Action Program, and (2) draft legislation for the "Asbestos Health Hazards Compensation Act." It was'suggested that the Asbestos Study Committee should define the problems and make recommendations and suggest plans as to how to deal with (1) activities at the Office of Toxic Substances, including a Voluntary Action Plan, and (2) the- legislative draft for an "Asbestos Health Hazards Compensation Act." The Committee will be asked to determine how much of a.commitment can be made from companies in supporting its recommendations. ' Should the industry take a position as regards the Asbestos Health Hazards Compensation-Act? What action should the. industry take? Should the IMSI become a spokesman for the friction ; materials Industry as regards the Toxic Substances Control Act and the Asbestos Health Hazards Compensation Act? It was recommended that the Asbestos Study Committee review these problems and then come back with a proposal to the Board of Directors. lOne Director suggested that some of' the data might-be already available I such as epidemiological studies on workers, asbestos counts made intheir [brake, repair shops, and health history information on their workers. This.type of information might, support Institute positions in dealing with the Office of Toxic Substances' on a Voluntary Action Program. A Director suggested that a firm time frame be established for the Committee to review this and come.bad: to the Board of Directors with its; recommenda tions . It was pointed out that in working on a Voluntary Action Program this may be just one part of the problem with the Toxic Substances- Control Act. The thrust must.be on how to react' to the full Toxic Substances Control'Act. In other words, this would not be just a one time response but. an ongoing response to regulations 'from the - Environmental Protection Agency'. It was suggested that studies may have to-be run within our own organization to support viewpoints expressed tothe;EPA. Mr. Nelson suggested .that these .'problems are similar-to the heavy activity of the Brake Performance Study'Committee during the nid-60'ii when- the'first laws were being, proposed Tor aftermarket brake-linings. Perhaps fiber-counts by membersare- called for as well, as release, of exposure and nedical'infor mation that may already be on file. Where members have fiber counts in. shops and health history* for brake repair workers,- thiscould be valuable in dealing with the Voluntary Action Program. When the Asbestos Study Committee has reviewed these problems recommenda tions would be made to the Board of Directors. The Board will then review recommendations of the Asbestos Study Committee and suggest restraints and direction.for'action. It may be necessary to solicit certain experts for guidance on this' question. A Director stated that this Committee may have to be completely reorganized, and possibly broadened beyond asbestos. It was stated that as there will be a new President installed on July 1, 1979, the Committee should be oriented towards more emphasis *on hygienic andenvironmental expertise rather than the clean-up side, of factory operations. The new President will be -directed to have this committee make"recommendations on'(1) an ongoing response to the EPA's Office of Toxic Substances and (2) a position and response on the legislative draft for an "Asbestos Health Hazards Compensation.Act.. MAR 000216 Minutes of the Meeting of the Board of Directors --12~ June 12, 1979 ; . INSTITUTE development committee report Mr;.-Ron Cutler is Chairman of the Institute Development Committee. There was. no formal, report prepared in advance of the .meeting as it was Mr. Cutler's intention to discuss items referred to the Committee vith Committee members at Key Largo. The main, subject was the request that the Almco Division of ITT Industries had made for consideration as-an Active Member of the Institute. Under the Constitution and By-Laws. Almco Division, is not.eligible to' serve as. an: Active Member o the Institute'as it is. not a manufacturer of '. friction materials. A. question was asked as to whether the Almco request had been acted on. The President indicated that by. having Mr. Dan Sills of Almco serve .as- an Associate Member, of the Data Book and Technical Committee, that Mr. Schnurr of Almco was satisfied that they were able to give input to the Institute. However,' the question was were they still interested in serving as an Active Member of the Institute. It was' Indicated that Almco was satisfied with its current status. A director stated that the question of Active Membership for manufacturers such as Almco, Wagner and EIS was not the same as that in the early 1970's where hydraulic parts-manufacturers were interested in membership. In.the earlier, study, brake, parts manufacturers such as Echlln were Interested in serving as Active. Metiers. "An expansion of the Institute at. that time would.have required new expertise,'-a new section in the Institute-, and perhaps an increase in staff. The information in which A-tmeo was interested was already being gathered in preparation of the Brake.Shoe Identification Catalog, and the Automotive Data Book. It was- stated that' this, was a broader'question, than just the application of Almco,. Industries to serve, as- ah Active Member. Would there be an advantage: to having manufacturers like.! Almco or Wagner serve as Active Members' in- the- Institute? Both. Almco and Wagner have common problems with other, members of the Institute. Perhaps they could be of help to the Institute. It was suggested that a motion be made aa regards possible expansion of the Institute for a manufacturer of brake shoes marketing lined shoe assemblies.' Upon motion duly made, seconded and passed with 6 in favor and I opposed, it was t: . 7 . rl-j :. . RESOLVED: That the Institute would not expand Active zUT -. . : ;t .. Membership eligibilty to include manufacturers rl. _. . who do not manufacture friction materials. - * " ' - ' -T:r L 1 v-a.v.r - - - ' jlVit- _ - - ANNUAL MEETING COMMITTEE'REPORT Mr..Ross Kettering.is. Chairman of'the Annual Meeting Committee. The Secretary read the Chairman's, report. It recommended that'the Institute return to the Ocean Reef Club in Key Largo, Florida for* the June 1980 Meeting. If for same reason Key Largo is ruled out'in 1980 the report recommended chat the Homestead in Hot Springs, Virginia be the location for the 1980 Meeting. It was also suggested Chat wives be invited to Che 1980 meeting. After considerable discussion concerning facilities - MAR 000217 Minutes of the Meeting of the Board of Directors- 15- June 12, 1979 be concerned given the existing- state of the lav so long as they don't knowingly engage in or allow negligent conduct. He have located no New Jersey or New York case Imposing liability on directors or officers In such context." In the last paragraph of Counsel's letter tie stated as follows "Section 722 of the New York Not-For-Profit. Corporation Law authorizes Indemni fication* of directors-for tort liability to third persons. The-Board should consider--perhaps this June-- adopting'such an Indemnification plan. The significance of indemnification lies not so much in the payment of any judgement but in the protection of the Individuals from the expense of defending a lawsuit." The Directors reviewed this recommendation by Counsel. Upon motion duly made, seconded and unanimously passed. It was; RESOLVED:- That Legal Counsel prepare an Indemnification plan for Officers* and Directors In line with the recommendation in Counsel's letter of May 1, 1979. HISTORICAL SALES PROGRAM The Secretary reported on the Historical Sales reporting program for calendar year 1978. Since the first of the year a. few members who used to report are no longer reporting. The Accountants had not received statistics from Safeguard Automotive for the 12 months ended December 31, 1978 nor for the 3 months ended March 31, 1979. In addition Lear-Slegler data for the 3 months to March 31, 1979 had not been received. This data was formerly compiled at the World Bestos operation In New Castle, Indiana, but as New Castle has now shut down there has been no reporting in 1979. The Secretary was directed to contact Mr. Ogilvle to seek Lear-Slegler figures for the ensuing quarters In 1979. INSTITUTE PENSION FUNDS Mr. Drlslane and Mr. Simon are Trustees of the Institute Pension Plan. Mr. Drlalane reported on the pension plan and its assets through December 31, 1978.. In response to a question It was indicated that the data shown in the report, for the period July 1 to December 31, 1978 is cumulative and indicates all receipts and disbursements since' the beginning of the plan in 1973. The total investments at the bottom of the report are lnvestmenta- as of December 31, 1978.. The directors reviewed the report and In particular the pension payments to Miss Duschek. After review of these payments, upon motion duly made, seconded and unanimously passed, it was; RESOLVED: To Increase the direct pension payments to Miss Duschek by 10Z to $6,600 per year. MAR 000218 Minutes of the Meeting of the Board of Directors -16- June 12, 1979 FEDERATION OF EUROPEAN MANUFACTURERS OF FRICTION MATERIALS (FEMFM) The Secretary reported on the meeting of the Federation -of European Manufacturers of Friction Materials (FEMFM) which he attended in Great Britain in May 1979. The report mentioned work on correlation of Chase Machine tests and vehicle tests, and general activities of the Technical Committee of the Federation during' thd past year. The Secretary reported on items he had discussed at the Managing Council and General Assemblies of the FEMM,and in particular the asbestos problems in the United States. Upon completion of this report, Mr. Robert Join, Secretary of the Feder ation commented on the report and on activities in Europe during the past year. Mr. Join' stated that the Federation has apparently convinced author ities that Che idea "OE for replacement" is unsatisfactory as a brake lining standard for Europe. Mr. Join also commented on some of the problems and activities of the European Federation on the asbestos question in Europe. Mr. Nelson commented on the difficulty with Chase Machine correlation with vehicle tests on the 80 hot friction levels. Be indicated that Che external heaters on the Friction Test Machine simply cannot build up heat as fast; as a brake can at 80mph. Mr. Nelson was complimentary of the work that the European Federation had done as regards correlation-, of machine tests and vehicle tests. Upon motion duly made, seconded and unanimously passed, it was; RESOLVED: To. thank Mr. Robert Join for the information presented on activities relating to friction materials in Europe. INTRODUCTION OF MR. J. L. McGOVERN, Jr. The Secretary advised that the honored guest at the 1979 Annual Meeting was Mr. Jin McGovern formerly of Raybestos-Manhattan, Inc., who had long served the Institute. While the agenda indicated that there would be an introduction of Mr. McGovern, one director stated that Hr. McGovern needed no introduction. The Board welcomed Mr. McGovern to the meeting. OTHER BUSINESS There being no other business brought to the attention of the Board of Directors, upon motion duly made, seconded and unanimously passed, it was; RESOLVED: To Adjourn Adjourned: 1:40P.M, E. W. Drlslane Secretary MAR 000219